NEW DEAL FOR CITIES (2006)

The New Deal for Cities and Communities is a federal initiative to enhance the Government of Canada’s commitments to advancing local sustainability on four major themes: economic environmental, social, and cultural.

Canada, British Columbia and the Union of BC Municipalities have entered an agreement under the New Deal for Cities and Communities on the Transfer of Federal Gas Tax Revenues (the Agreement). The Agreement is focused on achieving three environmental sustainability outcomes: Reduced Greenhouse Gas (GHG) emissions, cleaner water and cleaner air.

The Community Works Fund (CWF) is established to support local priorities that are in alignment with the desired outcomes as listed above. It provides funding directly to eligible local governments, without the need to apply for funding. BC will receive $656.6 million as set out in section 5.1 of the Agreement, which also sets out the annual amounts. The Agreement provides three delivery mechanisms; the CWF, a strategic Priorities Fund (SPF) and an Innovations Fund (IF). Making a portion of the federal gas tax monies available to communities for local infrastructure is important, as these dollars would help reduce the local tax burden on business.

The Agreement divides local governments into three tiers, based on differing community characteristics. Tier allocations are not based on size of individual local areas, but rather on such factors as the adjacency of communities to urbanized areas and the need for intra-regional infrastructure.

• Tier 3 is the Greater Vancouver Regional District and its member municipalities. They have chosen to put all of their money into the Airport upgrades.
• Tier 2 is the regional districts and municipalities of: Okanagan-Similkameen, Central Okanagan, North Okanagan, Capital, Cowichan Valley, Nanaimo, Fraser Valley, and Squamish-Lillooet.
• Tier 1 is the rest of the Province.

CWF funding is available to Tier 1 and 2 municipalities and regional districts without the need to apply Schedule A of the Agreement sets out eligible project categories and sub categories. Unfortunately, except under particular circumstances, the CWF does not include road rehabilitation as an eligible project category.

In many of our communities, our roads are showing signs of stress that is abnormally high due to a number of reasons. Many communities are falling behind with the rehabilitation of their community roads and streets, not to mention improving or adding new infrastructure. This makes it difficult to carry on business at the levels that we need. It impacts delivery of goods as well as tourism.

THE CHAMBER RECOMMENDS

That the Provincial Government work with the Federal Government and UBCM to amend the Community Works Agreement to include “rehabilitation of roads and bridges” as an eligible project category for Tier 1 and Tier 2 Communities.