Municipal Revenue Sources Review Local Government Grants Inventory

Transcription

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

2 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

3 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. ling 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 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. $160 $140 $120 Historical Provincial Unconditional Grants Spike due to a $35 million one time signing bonus associated with the Peace River MOU Grant Dollars (in millions) $100 $80 $60 $40 $20 $ Year Ministry of Community, Sport and 2 Municipal Revenue Sources Review

4 160,000,000 Individual Unconditional Grants 140,000,000 Grants Dollars 120,000, ,000,000 80,000,000 60,000,000 Small Community & RD Grants Traffic Fine Revenue Sharing Peace River RD Grant 40,000,000 20,000, 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

5 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 = ( ) 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 Municipal Revenue Port Clements 77.42% Small Community Grant Rev as a % of Municipal Rev 70% 60% 50% 40% 30% 20% 10% Zeballos 65.27% Granisle 44.92% Hazelton 41.92% Silverton 37.49% Montrose 36.62% Salmo 34.26% Sayward 32.66% Sechelt IGD 30.64% 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

6 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 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

7 100% 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

8 200,000,000 Provincial Conditional Grant Payments per year ( ) Annual Grant Payments ($) 180,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 The spike in fiscal 2011 is due to $145 million in one time payments under the BCF and ISF programs 40,000,000 20,000, Fiscal Year Provincial Conditional Grant Programs ( ) including Joint Federal Programs CBCIP 4. LM 5. FM 6. SS 10. CR 2. BCCWIP 3. MRIF 9. ISF 7. TFT 8. BCF * 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

9 Abbreviation CBCIP BCCWIP MRIF LM FM BC Community Municipal Program Canada/BC Water Rural Infrastructure Improvement Infrastructure Flood Program Program Fund LocalMotion Mitigation Purpose Core Infrastructure Water and Sewer Core Infrastructure Bike paths, trails, and Greenways Flood Prevention Target Communities All All Only Smaller All All Prov Contribution ($ million) $267 $80 $75 $40 $25 Provincial Share of Costs 33% 67 75% 33% 50% Varies Abbreviation SS TFT BCF ISF CR Program Towns for Building Infrastructure Community Spirit Squares Tomorrow Canada Fund Stimulus Fund Recreation Purpose Outdoor Public Squares Core Infrastructure Core Infrastructure Core Infrastructure Community Rec Facilities Target Communities All Only Smaller Only Smaller All All Prov Contribution ($ 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

10 3. Grants Provided through UBCM Funding Programs The UBCM is an advocacy group representing the interests of local governments in the Province since 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 ( ) (the Agreement). As later amended, this Agreement provides $1.63 billion of federal funding to British Columbia communities between 2005 and 2015 through a Gas Tax Fund (GTF). The Agreement details how the GTF will be used to support environmentally sustainable municipal infrastructure. UBCM s role is to administer the GTF in partnership with both Canada and the Province. The objectives of the GTF are to: reduce greenhouse gas emissions and provide cleaner air and water; attain greater local government collaboration in planning and implementing infrastructure projects; and encourage innovative and comprehensive approaches to achieving sustainable communities. 300 Annual Federal Contribution under the Gas Tax Agreement Contribution ($ Millions) 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

11 Fund and Purpose Community Works Fund 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). Approx Amount in Million $ ( ) $481 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 Vancouver municipalities) is to be directed to TransLink and strategic transit infrastructure. Regionally Significant Projects Program a portion of the Strategic 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 British Columbia municipalities. (Note: most of these eligible municipalities receive substantial funding through the Community Works Fund. $800 $102 $174 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

12 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

13 Northern Development Initiative Trust (NDIT) Representing: North, North Coast, Queen Charlottes, Cariboo, and portions of the Thompson and Squamish Lillooet Non Represented Areas Metro Vancouver, Capital, and portions of the Fraser Valley and Squamish Lillooet Pop:3.1 million (approx) Population: 330,000 (approx) Trust Asset Value: $205 Million Projects Approved or Funded to date: $8.6 million for education and capacity building. Southern Interior Development Initiative Trust (SIDIT) Representing: Kootenay, Okanagan, 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: 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

14 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 $800 million Funded Projects 309 The CBCIP was an $800 million joint federal, provincial and local government program officially signed on October 10, 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 B.C. Community Water Improvement Program (BCCWIP) Provincial Portion 67 75% $ 80 million Local Government Portion 25 33% $ 42 million $122 million Funded Projects 87 BCCWIP is a $122 million joint provincial and local government program that was announced in 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 $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 Each level of government contributed onethird 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

15 4. LocalMotion Provincial Portion 50% $40 million Local Government Portion 50% $40 million $80 million Funded Projects 122 LocalMotion is an $80 million joint provincial and local government program announced in 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 $75 million Funded Projects 13 PFM is a $75 million joint federal, provincial and local government program announced in 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 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 $40 million Funded Projects 64 Ministry of Community, Sport and 14 Municipal Revenue Sources Review

16 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 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 $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 Building Canada Fund (BCF) Initial Top up 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 $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 Ministry of Community, Sport and 15 Municipal Revenue Sources Review

17 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 $300 million Projects Funded 186 ISF is a $300 million joint federal, provincial and local government program officially announced in 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 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 $71 million Projects Funded 98 CR is a $71 million joint provincial and local government program which was announced in 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 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