A Memorandum of Understanding on Local Government Financial Resiliency

The Province and Union of BC Municipalities will work together to review the local government finance system in B.C. to ensure that municipal governments and regional districts remain resilient in the face of economic changes.

Municipal Affairs Minister Josie Osborne, Finance Minister Selina Robinson, and UBCM President Laurey-Anne Roodenburg have signed a Memorandum of Understanding on Local Government Financial Resiliency.

“From the COVID-19 pandemic to recent extreme weather events, local governments are facing new challenges that did not exist a decade ago,” said Josie Osborne, Minister of Municipal Affairs. “Through this new agreement, I look forward to making progress together on matters of mutual interest as we work to gain a greater understanding of local government financial resiliency.”

The MOU will guide the Province and UBCM in a review of the local government finance system. This will include discussions about cost pressures local governments may be experiencing around attainable housing, community safety and climate change, and the impact of the new economy. These issues were identified in a UBCM membership-endorsed report and published in August 2021. The report included 20 recommendations that focused on strengthening the municipal and regional district finance system.

This MOU is in response to a recommendation in the UBCM report to engage through a meaningful working relationship in order to meet the respective interests of strengthening the local government finance system. The UBCM report states that their recommendations are aimed at identifying potential solutions to priority issues that are common to both local governments and the Province. The Working Group will review the recommendations and develop a work plan for short- medium- and long-term consideration.

“The finance system for local government is facing increasing pressure due to the challenges posed by housing attainability, community safety and climate change,” said Councillor Laurey-Anne Roodenburg, UBCM’s president. “These issues impact all levels of government and are best addressed through cooperation and collaboration. The decision by the Province of BC to join with local government to examine these challenges and explore solutions is good news for B.C. residents and the sustainability of communities.”

Progress under the MOU will be made through a Local Government Financial Review Working Group made up of staff from the Province and UBCM. The group will review the local government finance system in B.C., analyze the recommendations in the UBCM report, and discuss matters of mutual interest.

“I know from first-hand experience the role local governments play in delivering vital services and infrastructure. We serve the same people and share many of the same priorities,” said Selina Robinson, Minister of Finance. “This MOU is about two levels of government working together to advance our mutual interest – ensuring the strength of the local government finance system.”

The MOU will be reviewed three years from the date of signing unless the parties agree to an earlier review. The ministers of Municipal Affairs and Finance and the president’s committee of UBCM will meet at least once a year, no later than June 30 of each year, to discuss the work program for review of the August 2021 UBCM report and to assess progress. The work of the Local Government Financial Review Working Group will be informed by policy paper, Ensuring Local Government Financial Resiliency, endorsed by UBCM members at the 2021 UBCM convention.

Originally Posted On: https://www.ubcm.ca/about-ubcm/latest-news/province-ubcm-commit-review-local-government-finance