Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012

 
Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012
Municipal Revenue Sources
         Review
    Local Government
     Grants Inventory

                        August, 2012
Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012
Grant Funding in British Columbia
Introduction
A local government grant is a transfer of money from the Province of British Columbia (Province) to a
municipality or regional district. The Province has provided this type of funding for decades with the
purpose of helping local governments deliver core services. Local government grants fall into one of two
broad categories, unconditional or conditional grants, depending on whether there are any conditions
or restrictions on the use of grant dollars. In addition to grants, another potential source of revenue is
from regional development trusts.

As a brief summary of findings, since 2000, the federal and provincial governments have either
committed‐to or paid‐out the following to British Columbia communities:

    •    $1.4 billion in unconditional grants (all provincial);
    •    $1.5 billion in conditional grants for core local government infrastructure ($870 million
         from the Province and a further $650 million from the federal government). These
         grants helped fund 1,300 projects representing total eligible costs (including local
         government portion) of
         $2.3 billion;
    •    $13 million in infrastructure planning grants to fund over 1,400 studies (all provincial);
    •    $285 million of seed funding for regional trusts, which have since funded over 370
         individual local projects (all provincial seed funding); and
    •    $1.6 billion of Federal gas tax funds (all federal funding).

Thus, total senior government funding through commitments or payments was $4.8 billion ($2.5 billion
provincial and a further $2.3 billion federal), which have funded over 1,400 studies and 1,700 capital
projects (either directly through government or indirectly through regional trusts).

Unconditional Grants
Unconditional grants are provincial transfers that have either little or no restrictions on their use and are
not typically related to any specific project or purpose. Thus, the use of such funds is essentially at the
discretion of the local governments.

Annual provincial funding for unconditional grants to local governments has varied historically based on
provincial priorities. Prior to the mid‐1990s, the Province provided all municipalities with a Municipal
Basic Grant of between $60,000 and $120,000 per municipality (totalling $20 million per year) and a
Municipal General Grant based on each municipality’s population, expenditures and property
assessment (totalling $118 million per year).

During the mid to late 1990s, funding for these two grant programs was incrementally eliminated for all
municipalities above approximately 20,000 people. The grants were maintained for smaller
communities and renamed Small Community Grants. This change resulted in a $115 million grant
reduction to municipalities (from $138 million in 1996 to $25 million in 1999).

Ministry of Community, Sport and                      1                       Municipal Revenue Sources Review
Cultural Development                                                          Local Government Grants Inventory
Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012
Note: during this time, the Province also provided the following:
                                        •      Regional District Basic Grants ‐ $2 million/year (approximately
                                               $110,000 per regional district).
                                        •      Peace River Grants ‐ $4 to $12 million to the regional district and
                                               participating municipalities.
                                        •      Traffic Fine Revenue Sharing ‐ introduced in 1999 (approximately $10
                                               million/year).
                                 Unlike the municipal grants, these grants were not reduced during the 1990s and
                                 2000s. Each of these grants is discussed in more detail later in this document.

Totalling all unconditional grant programs, the value of provincial unconditional grants decreased from
approximately $142 million in 1996 to $50 million by 1999 and remained at this level through to 2003.

Commencing in 2004, the Province began three distinct steps to reverse this contraction of
unconditional grants. First, in 2004, the Province began incrementally increasing Traffic Fine Revenue
Sharing from $10 million to $60 million per year. Second, in 2005, the Province began incrementally
increasing funding under the Peace River Memorandum of Understanding, from $10 million to the
current level of $35 million. Third, in 2006, the Province began incrementally increasing the Small
Community and Regional District Grants from $29 million to the current level of $54 million.

As of 2012, local governments in the Province now receive $150 million per year in unconditional grants.
The two following graphs set out total provincial unconditional grant funding between 1995 and 2012
and break down the funding by different grant programs.

                                                             Historical Total Provincial Unconditional Grants
                                 $160

                                                                            Spike due to a $35
                                 $140                                       million one‐time
                                                                            signing bonus
                                                                            associated with the
                                 $120                                       Peace River MOU
   Grant Dollars (in millions)

                                 $100

                                  $80

                                  $60

                                  $40

                                  $20

                                  $‐
                                        1994

                                               1995

                                                      1996

                                                              1997

                                                                     1998

                                                                              1999

                                                                                     2000

                                                                                            2001

                                                                                                   2002

                                                                                                                 2003

                                                                                                                        2004

                                                                                                                               2005

                                                                                                                                      2006

                                                                                                                                              2007

                                                                                                                                                     2008

                                                                                                                                                            2009

                                                                                                                                                                   2010

                                                                                                                                                                          2011

                                                                                                                                                                                 2012

                                                                                                          Year

Ministry of Community, Sport and                                                                     2                                       Municipal Revenue Sources Review
Cultural Development                                                                                                                         Local Government Grants Inventory
Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012
Individual Unconditional Grants
                    160,000,000

                    140,000,000

                    120,000,000                        Small Community
                                                       & RD Grants                          Traffic Fine Revenue                         Peace River RD Grant
                                                                                            Sharing
   Grants Dollars

                    100,000,000

                     80,000,000

                     60,000,000

                     40,000,000

                     20,000,000

                             0
                                  1995

                                         1996

                                                1997

                                                         1998

                                                                1999

                                                                       2000

                                                                              2001

                                                                                     2002

                                                                                            2003

                                                                                                      2004

                                                                                                             2005

                                                                                                                    2006

                                                                                                                           2007

                                                                                                                                  2008

                                                                                                                                            2009

                                                                                                                                                   2010

                                                                                                                                                          2011

                                                                                                                                                                 2012
                                                                                               Year

                       As previously noted, the 2005 spike in the Peace River Grant was due to a $35 million one‐time
                       signing bonus related to the memorandum of understanding.

Current Unconditional Grant Programs
There are currently five active grant programs, plus some smaller miscellaneous grants, providing
unconditional funds to local governments in the Province (Small Community Grants, Regional District
Grants, Traffic Fine Revenue Sharing, Peace River Grants and Climate Action Revenue Incentive
Program):

                       1) Small Community Grants

The purpose of the Small Community Grant is to assist small municipalities with funding for professional
administration. Professional finance and managerial staffing is often very expensive; this grant ensures
all local governments in the Province have the necessary financial resources for competent
administration.

For most municipalities, this grant represents less than 10% of total municipal revenue; though, for a
dozen smaller municipalities, the grant represents over 30% of annual municipal revenue and therefore
is critical for their survival. The annual grant to each municipality is calculated based on the sum of four
components:

         a) A $200,000 base amount;
         b) A $50 per capita amount (up to 5,000 people);
         c) An assessment amount based on $50,000 x F weight. The F weight for a specific
            municipality is equal to the per capita assessment base of the municipality, divided by
            the weighted average per capita assessment base of all British Columbia municipalities.
            This amount is usually between $0 and $100,000, and is intended to target funding to
            municipalities that lack a strong tax base; and

Ministry of Community, Sport and                                                     3                                     Municipal Revenue Sources Review
Cultural Development                                                                                                       Local Government Grants Inventory
Municipal Revenue Sources Review Local Government Grants Inventory - August, 2012
d) A claw‐back for municipalities with populations above 5,000, which is equal to $25 for
                                                               every person above 5,000 ‐‐‐ e.g. municipality with a population of 6,000 has its grant
                                                               clawed‐back by $25,000 = (6000 – 5000) x $25.
                                                                                          Grant = (a + b + c) – d

                                                                   There is also a threshold component in the grant funding. If the above
                                                                   calculation yields an amount less than $100,000, the grant amount is reduced to
                                                                   zero. This is a de minimis rule to exempt the Province from funding immaterial
                                                                   amounts (usually to larger municipalities).

The maximum possible grant to an individual municipality is approximately $550,000; though, most
grants are much lower. In 2010, 130 municipalities received some grant and the average amount was
$370,000. Small Community Grants incrementally phase‐out for municipalities with populations
between 5,000 and 20,000, and completely phase out above 20,000 people.

Annual grant amount for all municipalities is approximately $49 million.

                                                             80%               Small Community Grant Revenue as a % of Total Municipal Revenue
                                                                             Port Clements 77.42%

                                                             70%
  Small Community Grant Rev as a % of Total Municipal Rev

                                                                        Zeballos 65.27%

                                                             60%

                                                             50%

                                                                            Granisle 44.92%
                                                                            Hazelton 41.92%
                                                             40%       Silverton 37.49%
                                                                                          Montrose 36.62%
                                                                                           Salmo 34.26%
                                                                             Sayward 32.66%
                                                             30%                      Sechelt IGD 30.64%

                                                             20%

                                                             10%

                                                              0%
                                                                   ‐               1,000             2,000            3,000           4,000           5,000            6,000
                                                                                                               Municipal Population

For communities with populations greater than 6,000, the Small Community Grant is immaterial
compared to total revenues, therefore, they have been removed from this graph. The Small Community
Grant is most important for communities under 2,000 people.

Ministry of Community, Sport and                                                                                     4                        Municipal Revenue Sources Review
Cultural Development                                                                                                                          Local Government Grants Inventory
2) Regional District (RD) Grants

The Province provides RD grants to all regional districts (and the Islands Trust) to assist them with their
service requirements, based on local needs and priorities. The amount of the grant to an individual
regional district is based on three factors with a funding emphasis on smaller and rural regional districts:

    a) regional district total population;
    b) regional district electoral area population; and
    c) the number of local community commissions
In 2012, annual funding was approximately $5 million. Funding to individual regional districts varied
from $60,000 to $200,000, with an average grant amount of $160,000.

         3) Traffic Fine Revenue Sharing (TFRS) Grant

The TFRS Grant program was created in 1999 to assist municipalities with community safety initiatives.
This program transfers provincial revenue from violation tickets, issued under the Motor Vehicle Act, to
municipalities. From its inception in 1999, the annual funding under the program has increased from
$10 million per year to approximately $60 million per year representing 100% of net traffic fine
revenues collected by the Province.

Approximately 4% of the annual funding (or $2.5 million) is used to offset provincial police taxes in small
municipalities (under 5,000 people) and unincorporated areas. The remainder (approximately
$57 million) is paid as grants to eligible municipalities. The total annual TFRS amount is apportioned to
each eligible municipality based on its annual police costs. To be eligible for TFRS funding, a municipality
must have a population over 5,000 and pay for its own policing.

Approximately 70 municipalities in the Province receive a TFRS grant, with 64% of annual TFRS funding
paid to municipalities in the lower mainland.

         4) Peace River Regional District Memorandum of Understanding (PRRD) Grant

The Province acknowledges the strategic significance of oil and gas development in Northern British
Columbia. The PRRD grant is part of this acknowledgement. This grant is designed to address revenue
requirements for a fast‐growing and economically important area of the Province through a 15‐year
memorandum of understanding negotiated in 2005.

The grant provides a stable source of revenue to the local governments that play a critical role in
servicing the oil and gas industry, yet do not have access to the oil and gas assessment because most of
the infrastructure is located outside their boundaries. Grant funds are transferred from the Province to
the PPRD and then redistributed to several participating municipalities.

The annual grant includes a base amount of $20 million plus an amount for assessment inflation of oil
and gas infrastructure in the region. In 2012, the PRRD grant was approximately $35 million.

         5) Climate Action Revenue Incentive Program (CARIP)

CARIP provides funding to local government signatories of the Climate Action Charter, which is a joint
provincial/local government commitment to address greenhouse gas emissions. As part of this
commitment, the Province has agreed to provide each signatory local government a grant equivalent to
Ministry of Community, Sport and                     5                        Municipal Revenue Sources Review
Cultural Development                                                          Local Government Grants Inventory
100% of the carbon tax paid by the local government for the direct delivery of service. In order to be
eligible for the grant, each local government must provide the Province with a report on its progress
towards carbon neutrality and create compact and energy efficient communities.

In 2012, the total amount of the CARIP grant was approximately $5 million.

         6) Miscellaneous Unconditional Grants

Miscellaneous grants are unrelated to any unconditional grant program and are designed to assist local
governments with special situations. These grants include the Resort Municipality Initiative, rail tax
mitigation and some restructure grants. The annual funding related to these grants is approximately
$15 million.

Conditional Grants
Conditional grants are transfers earmarked for specific projects or purposes and may not be used for
any other purposes. The majority of conditional grant funding is intended for core capital works of local
governments (e.g. water and sewer infrastructure). The federal and provincial governments are the
principal providers of conditional grants. The federal government usually provides its portion of grants
through an intermediary body, usually the Province or the Union of British Columbia Municipalities
(UBCM).

This portion of the paper will focus on two areas: first, grants provided directly through the Province
(for infrastructure and planning), and second, grants provided through UBCM.

         1. Provincial Infrastructure Grants

Historically, the administration of most infrastructure grant programs has fallen under the purview of
the Local Government Division. Most of these programs are temporary and designed to address specific
capital needs. Some of these programs are entirely funded by the Province and others are jointly
funded with the federal government. Since 2000, the Local Government Division has administered 10
different conditional grant programs of various sizes and durations.

The following charts provide an overview of infrastructure grant funding over the past decade. For
more detailed information on individual grant programs, please see the Appendix to this paper.

Ministry of Community, Sport and                     6                       Municipal Revenue Sources Review
Cultural Development                                                         Local Government Grants Inventory
Total Provincial Conditional Grant Payments per year (2003‐12)
                               200,000,000

                               180,000,000
                                                                                 The spike in fiscal 2011 is due to
                               160,000,000                                       $145 million in one‐time
                                                                                 payments under the BCF and ISF
                               140,000,000                                       programs
   Annual Grant Payments ($)

                               120,000,000

                               100,000,000

                                80,000,000

                                60,000,000

                                40,000,000

                                20,000,000

                                        ‐
                                             2003    2004      2005       2006           2007             2008        2009        2010      2011      2012
                                                                                                Fiscal Year

                                                    Provincial Conditional Grant Programs (2000‐16) including Joint Federal Programs

                                      2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

                                                                      1. CBCIP

                                                                                                                  2. BCCWIP
                                                                                                              3. MRIF
                                                              4. LM
                                                         5. FM
                                                    6. SS                                                                    7. TFT
                                                                                                                          8. BCF
                                                                                                                 9. ISF
                                                            10. CR

                                     * Width of the line indicates the relative financial size of each program, and the length of each line indicates
                                       a program's duration (including renewals) in years.

Ministry of Community, Sport and                                                            7                                  Municipal Revenue Sources Review
Cultural Development                                                                                                           Local Government Grants Inventory
1              2            3                     4                5
              Abbreviation              CBCIP         BCCWIP        MRIF                   LM               FM
                                                   BC Community Municipal
                                      Canada/BC        Water        Rural
              Program
                                    Infrastructure Improvement Infrastructure                             Flood
                                       Program        Program       Fund               LocalMotion      Mitigation
                                                                                        Bike paths,
              Purpose                    Core         Water and            Core         trails, and       Flood
                                    Infrastructure     Sewer          Infrastructure    Greenways       Prevention
              Target
              Communities                All             All          Only Smaller         All              All
              Prov Contribution
              ($ million)               $267             $80               $75             $40              $25
              Provincial Share of
              Costs                      33%           67‐75%              33%             50%            Varies

                                          6               7              8              9            10
              Abbreviation               SS              TFT            BCF            ISF           CR
                                                     Towns for       Building    Infrastructure Community
              Program
                                    Spirit Squares   Tomorrow      Canada Fund Stimulus Fund Recreation
                                       Outdoor          Core           Core           Core       Community
              Purpose
                                    Public Squares Infrastructure Infrastructure Infrastructure Rec Facilities
              Target
              Communities                All         Only Smaller     Only Smaller         All              All
              Prov Contribution
              ($ million)                $20             $70              $176            $100              $30
              Provincial Share of
              Costs                      50%          up to 80%            33%             33%           up to 80%

              * Core Infrastructure includes water, sewer, drainage, transportation, municipal buildings,
                and other similar infrastructure.

         2. Provincial Planning Grants

There is an old expression that if one fails to plan, one must plan to fail. Provincial Planning Grants
support local governments with planning related to long‐term service and infrastructure requirements.
Through this program, the Province provides individual grants of up to $10,000 to local governments for
the purpose of developing long‐term comprehensive plans related to:

    •    capital asset management;
    •    community energy;
    •    integrated storm water management;
    •    water management;
    •    liquid waste management; and
    •    other similar plans.

Grants may be used for a range of activities related to assessing the technical, environmental and/or
economic feasibility of municipal infrastructure projects. Since 2000, the Province has provided $13.4
million in planning grants, which have funded 1,434 individual studies.

Ministry of Community, Sport and                                  8                              Municipal Revenue Sources Review
Cultural Development                                                                             Local Government Grants Inventory
3. Grants Provided through UBCM Funding Programs

The UBCM is an advocacy group representing the interests of local governments in the Province since
1905. The UBCM is also a central information source for local governments and provides a variety of
services and programs, including the administration of a number of grant programs funded through
senior levels of government.

Most UBCM funding programs are designed in partnership with senior governments to achieve specific
goals. Most of these programs are fairly modest, such as the Healthy Communities Program at
$5 million, West Nile Prevention Initiative at $9 million and Tourism and Marketing Program at
$25 million. By far, the largest single grant program operated by UBCM is the Gas Tax Fund ‐‐‐ it dwarfs
all other programs by several orders of magnitude.

Gas Tax Fund (GTF)
In September 2005, the Government of Canada, the Province and the UBCM signed “The Agreement on
the Transfer of Federal Gas Tax Revenue under the New Deal for Cities and Communities (2005‐2015)”
(the Agreement). As later amended, this Agreement provides $1.63 billion of federal funding to British
Columbia communities between 2005 and 2015 through a Gas Tax Fund (GTF). The Agreement details
how the GTF will be used to support environmentally sustainable municipal infrastructure. UBCM’s role
is to administer the GTF in partnership with both Canada and the Province.

The objectives of the GTF are to:

    •    reduce greenhouse gas emissions and provide cleaner air and water;
    •    attain greater local government collaboration in planning and implementing
         infrastructure projects; and
    •    encourage innovative and comprehensive approaches to achieving sustainable
         communities.

                                                         Annual Federal Contribution under
                                                             the Gas Tax Agreement
                                                   300
                       Contribution ($ Millions)

                                                   250

                                                   200

                                                   150

                                                   100

                                                    50

                                                     0

                                                                         Fiscal Year

GTF consists of a number of separate programs, which are outlined in detail on the following chart:

Ministry of Community, Sport and                                         9             Municipal Revenue Sources Review
Cultural Development                                                                   Local Government Grants Inventory
Approx
                                                                                                   Amount
                                     Fund and Purpose                                             in Million
                                                                                                   $ (2005‐
                                                                                                      15)
Community Works Fund                                                                                   $481
This fund operates much like a traditional unconditional grant program; funds are
allocated to municipalities outside Metro Vancouver on the basis of population. (Note:
Metro Vancouver municipalities do not receive money through this fund; instead, they are
fully funded through the Strategic Priorities Fund).

These payments are to be used for local priorities that align with reduction of greenhouse
gas emissions, cleaner air and cleaner water. Funding is delivered twice annually and
recipient local governments must report annually on spending and outcomes.

Strategic Priorities Fund
This fund operates much like a traditional conditional grant program, which is based on an
application for funding specific capital works. The purpose of the fund is to provide
strategic investments on a larger scale or with a regional impact. Eligible projects include:
public transit, community energy, water and waste water, solid waste management and
capacity building.

The total value of the fund is approximately $1 billion. There are three distinct
apportionments of this fund:

    •    Metro Vancouver’s ─ a portion of this fund (including participating Metro                     $800
         Vancouver municipalities) is to be directed to TransLink and strategic
         transit infrastructure.
    •    Regionally Significant Projects Program ─ a portion of the Strategic                          $102
         Priorities Fund is allocated specifically to eight mid‐sized regional districts.
         Working cooperatively with their participating municipalities, these eight
         regional districts will identify regional infrastructure priorities for funding.
         Thus, the purpose of this program is to achieve regional economies of scale
         among participating local governments, leading to cost‐effective
         infrastructure and service delivery.
    •    Remainder of Strategic Priorities Fund ─ is pooled and available to all                       $174
         British Columbia municipalities. (Note: most of these eligible
         municipalities receive substantial funding through the Community Works
         Fund.

Innovations Fund                                                                                         $81
This fund operates much like a traditional conditional grant program, which is based on an
application for funding specific capital works. This is used for projects and initiatives that
achieve an innovative approach to reducing greenhouse gas emissions and providing clean
air and water.
TOTAL FUNDS AVAILABLE OVER THE TERM OF THE AGREEMENT                                                 $1,638
Ministry of Community, Sport and                     10                       Municipal Revenue Sources Review
Cultural Development                                                          Local Government Grants Inventory
Trusts
         1. Three Economic Regional Trusts

Between the years 2005 and 2006, the Government of British Columbia established and seed financed
three regional trusts:

               Trust                            Establishing Legislation                     Seed Amount
Northern Development Initiative     Northern Development Initiative Trust Act                 $185 Million
Trust
Island Coastal Economic Trust       North Island‐Coast Development Initiative Trust           $50 Million
                                    Act
Southern Interior Development       Southern Interior Development Initiative Trust Act        $50 Million
Initiative Trust
TOTAL                                                                                        $285 Million

Each of these three trusts acts as an independent regional economic development corporation. They
are not agents of the Crown and operate relatively autonomously of the Province. Their purpose is to
provide greater local and regional control over economic funding decisions, as opposed to centralized
control from Victoria.

The mission of the trusts is to create new and sustainable regional economic growth opportunities and
stimulate economic diversification and job creation. This is achieved through strategic investments in
economic development projects with long‐lasting and measurable regional benefits. In addition to
individual projects, the trusts also provide funds for education, capacity building, communications and
networking. The focus of these investments is in certain defined sectors, including: forestry, pine beetle
recovery, small business, transportation, economic development, tourism, mining, energy and
agriculture.

The trusts act essentially as self‐financing endowments, providing a range of financing opportunities to
eligible parties including: grants, loans, equity infusion and partnerships. Eligible recipients include:
businesses, non‐profit groups, First Nations and local governments.

Governance of each of the trusts is the responsibility of a Board of Directors. The majority of the
directors are appointed by a Regional Advisory Committee (RAC) made up of local government elected
officials and Members of the Legislative Assembly from the region. A minority of the directors are
appointed by Cabinet.

The following diagram provides a map of the different geographic areas covered by each trust and some
relevant statistics.

Ministry of Community, Sport and                    11                       Municipal Revenue Sources Review
Cultural Development                                                         Local Government Grants Inventory
Northern Development Initiative Trust (NDIT)

                                                                   Representing: North, North Coast, Queen
                                                                   Charlottes, Cariboo, and portions of the
                                                                   Thompson and Squamish Lillooet

                                                                   Population: 330,000 (approx)
                                                                   Trust Asset Value: $205 Million
                                                                   Projects Approved or Funded to date: 222 +
 Non‐Represented Areas                                             $8.6 million for education and capacity building.

 Metro Vancouver, Capital, and                                             Southern Interior Development Initiative
 portions of the Fraser Valley and                                         Trust (SIDIT)
 Squamish Lillooet
                                                                           Representing: Kootenay, Okanagan,
 Pop: 3.1 million (approx)                                                 Columbia, and portions of the Thompson and
                                                                           Fraser Valley

                                                                           Population: 690,000 (approx)
                                                                           Trust Asset Value: $50 Million
                                                                           Projects Approved or Funded to date: 80 +
                                                                           $5.4 million for education awards.

     Island Coast Economic Trust (ICE‐T)

     Representing: North & Central Vancouver
     Island, and the Central and Sunshine Coast

     Population: 440,000 (approx)
     Trust Asset Value: $42 million
     Projects Approved or Funded to date: 74

           2. Columbia Basin Trust (CBT)

The Columbia Basin Trust (CBT) was established in 1995 to support social, economic and environmental
well‐being in the Canadian portion of the Columbia River Basin (i.e. Columbia and Kootenay Regions in
the Southeast corner of the Province). The CBT provides many different programs to eligible
beneficiaries, including: community and social grants, scholarships and training support, environmental
education, land and water conservation and youth development programs.

The CBT operates much like an endowment; it may invest in a broad range of eligible securities, property
and initiatives (including power generation). The Province provided the CBT a total of $350 million,
including: $276 million for acquisition and construction of power projects, initial seed funding of $45
million plus an additional $30 million, evenly allocated over 15 years for operations. Current asset value
of the trust is $540 million.

The Trust is governed by a12‐member Board of Directors. All 12 directors are appointed by Cabinet
though six of the directors are appointed on the recommendation of regional district and First Nation
participants in the CBT.

Ministry of Community, Sport and                    12                          Municipal Revenue Sources Review
Cultural Development                                                            Local Government Grants Inventory
Conditional Grants Appendix

1. Canada/BC Infrastructure Program (CBCIP)
Federal Portion                    33%      $267 million
Provincial Portion                 33%      $267 million
Local Government Portion           33%      $267 million
Total                                       $800 million
Funded Projects                    309

The CBCIP was an $800 million joint federal, provincial and local government program officially signed
on October 10, 2000. Each level of government contributed one‐third of program funds to cover eligible
costs for core infrastructure (e.g. water, sewer, drainage, transportation, municipal buildings, and other
similar capital). The program’s primary objective was to improve quality of life through investments that
enhanced the environment, supported long‐term economic growth, improved community
infrastructure, and encouraged innovative technologies and approaches. The program was officially
paid‐out and completed in early 2010.

2. B.C. Community Water Improvement Program (BCCWIP)
Provincial Portion                 67‐75%          $ 80 million
Local Government Portion           25‐33%          $ 42 million
Total                                              $122 million
Funded Projects                    87

BCCWIP is a $122 million joint provincial and local government program that was announced in 2005.
The Province provides up to two‐thirds of the eligible project costs with special considerations for
funding up to 75% for small communities with high priority health and environmental needs. The
purpose of BCCWIP is to support the Province's commitment to enhance safe drinking water though
capital grants for local water and wastewater management. Projects are to be completed by March
2012 (with some minor extensions to individual projects to 2014).

3. Canada/BC Municipal Rural Infrastructure Fund (MRIF)
Federal Portion                    33%      $ 75 million
Provincial Portion                 33%      $ 75 million
Local Government Portion           33%      $ 75 million
Total                                       $225 million
Funded Projects                    102

The Municipal Rural Infrastructure Fund (MRIF) is a $225 million joint federal, provincial and local
government program that was officially signed in June 2006. Each level of government contributed one‐
third of funding for total eligible costs with the express purpose of helping smaller communities meet
their pressing core infrastructure needs. 60% of the funding was earmarked for “green” infrastructure
projects (e.g. water, sewer, transportation, and energy efficiency). The remainder of the funds were
open for other forms of municipal infrastructure. The application process for accessing funding under
MRIF ended January 31, 2007 and projects were to be completed by March 2010 (with some minor
extensions for individual projects to 2013).

Ministry of Community, Sport and                      13                    Municipal Revenue Sources Review
Cultural Development                                                        Local Government Grants Inventory
4. LocalMotion
Provincial Portion                 50%           $40 million
Local Government Portion           50%           $40 million
Total                                            $80 million
Funded Projects                    122

LocalMotion is an $80 million joint provincial and local government program announced in 2006. Each
level of government contributes 50% of the funding for total eligible costs with the purpose of making
communities greener, healthier and more active and accessible places to live in. LocalMotion invested
in capital projects to reduce greenhouse gas emissions, emphasize modes of transport besides cars,
encourage physical activity and increase accessibility for seniors and the disabled. This program is fully
committed financially. Projects are to be completed by March 2012 (with some minor extensions to
individual projects to 2013).

Note: While technically a provincial/local program, the federal government provided partial funding
towards 49 LocalMotion projects with funds from the Infrastructure Stimulus Fund (ISF) (Item number 9
in this appendix). However, to avoid double counting, this analysis does not include the contribution,
which is captured as part of total ISF funding (see Item 9).

5. Provincial Flood Mitigation (PFM)
Federal Portion                    33%   $25 million
Provincial Portion                 33%   $25 million
Local Government Portion           33%   $25 million
Total                                    $75 million
Funded Projects                    13

PFM is a $75 million joint federal, provincial and local government program announced in 2008. Each
level of government contributed one‐third of program funds to cover eligible costs for flood mitigation
projects selected through the Provincial Flood Protection Program. Funding is targeted towards 13
“cost‐effective” flood mitigation projects, which range from erosion protection to dike upgrades in
provincial areas of acute risk. This project will likely conclude at the same time as the Building Canada
Fund (BCF) (see Item 8 in the appendix), which is sometime in 2016.

Note: While PFM is technically a discrete program, it is also part the initial $136 million Communities
Component of the BCF (Item 8 in the appendix). To avoid double counting, the amount of the PFM is not
included in the BCF.

6. Spirit Squares
Provincial Portion                 50%           $20 million
Local Government Portion           50%           $20 million
Total                                            $40 million
Funded Projects                    64

Ministry of Community, Sport and                       14                    Municipal Revenue Sources Review
Cultural Development                                                         Local Government Grants Inventory
Spirit Squares is a $40 million joint provincial and local government program which was announced in
2006 as part of the BC150 Initiative. Each level of government contributes 50% of the funding of total
eligible costs with a maximum provincial contribution of $500,000 per project. The purpose of the
program is to fund projects to create or improve outdoor public meeting and celebration spaces in
smaller British Columbia communities. Such places would include traditional town squares and
community commons. Ministry staff anticipate that all projects will be completed by March 2013. Any
required extensions will be dealt with on a one‐off basis.

7. Towns for Tomorrow (TFT)
Federal Portion                          varies                  $ 10 million
Provincial Portion                       up to 80%               $ 57 million
Loc Government Portion (approx)          20% to 100%             $ 37 million
Total                                                            $104 million
Funded Projects                          201

TFT was originally launched in 2006 as a joint provincial and local government program. Subsequent to
its initial launch, the federal government agreed to offset some of the provincial contribution under TFT
from available funds in the Infrastructure Stimulus Fund (ISF – Item 9 in the appendix). The federal
government provided partial funding for 69 of the 201 projects funded under this program. The
combined federal and provincial portion of project funding would be up to 80% of the eligible capital
costs (for communities under 5,000 people) and up to 75% for the remaining eligible communities.

The purpose of the program is to provide funding to smaller and rural communities (communities under
15,000 people and regional districts) for infrastructure projects that address climate change and
contribute to the overall health, sustainability, and liveability of communities. Eligible projects include
water, wastewater, public transit, energy improvements and local roads projects. Up to 10% of the
program may be used for ‘capacity building’ that encourages small communities to invest in training and
professional development regarding sustainable approaches to infrastructure planning and
management. Funding for this program has been fully committed and allocated and all projects must be
completed by March 2013.

8. Building Canada Fund (BCF)
                                                  Initial         Top‐up           Total
Federal Portion                    33%           $111 million    $ 65 million     $176 million
Provincial Portion                 33%           $111 Million    $ 65 million     $176 million
Local Government Portion           33%           $111 million    $ 65 million     $176 million
Total                                            $333 million    $195 million     $528 million
Projects Funded                    125

BCF is a $528 million joint federal, provincial and local government program officially announced in 2007
($333 million) and topped‐up in 2009 (additional $195 million). Each level of government contributes
33% of the funding of total eligible costs to support core infrastructure projects (e.g. drinking water,
wastewater, public transit, green energy and solid waste management) in communities with populations
of less than 100,000 people. The Province has stated that all recipient local governments must meet
full program requirements by the program completion date in March 2016.

Ministry of Community, Sport and                    15                       Municipal Revenue Sources Review
Cultural Development                                                         Local Government Grants Inventory
Note: $75 million for flood mitigation (from all three levels of government) is technically part of the BCF
but is not included in the above numbers. Instead, this amount is listed separately as its own program
under PFM (Item 5 in the appendix).

9. Infrastructure Stimulus Fund (ISF)
Federal Portion                    33%   $100 million
Provincial Portion                 33%   $100 million
Local Government Portion           33%   $100 million
Total                                    $300 million
Projects Funded                    186

ISF is a $300 million joint federal, provincial and local government program officially announced in 2009.
The program provides funding for “construction‐ready” infrastructure projects. The ISF complements
existing infrastructure programs by focusing on short‐term objectives for economic stimulus. Eligible
projects include water, wastewater, transit, roads, culture, parks, trails and community services
infrastructure. The ISF has been fully allocated and financially committed. Because this is an
accelerated program, most projects were substantively complete in 2011.

Note: a portion of funding under this program went towards eligible projects from the LocalMotion and
Towns‐for‐Tomorrow programs.

10. Community Recreation Program (CR)
Provincial Portion                       0% to 80%        $30 million
Loc Government Portion (Approx)          20% to 100%      $41 million
Total                                                     $71 million
Projects Funded                          98

CR is a $71 million joint provincial and local government program which was announced in 2011. The
Province would contribute up to 80% of the capital costs for eligible recreational infrastructure. The
purpose of the program is to make communities healthier and more active places in which to live
through funding trails, bike paths, walk ways, and other indoor and outdoor recreation facilities. All
projects must be completed by March 2015.

Note: two additional recreation projects in Burns Lake and Quesnel were funded $6.4 million
concurrently through a separate program.

Ministry of Community, Sport and                     16                       Municipal Revenue Sources Review
Cultural Development                                                          Local Government Grants Inventory
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