A resident is requesting that City of Powell River pressure the federal government to change its funding formula for infrastructure programs so they are funded 100 per cent by senior levels of government.
Ellen Gould wrote correspondence to City of Powell River Council stating that by temporarily changing the traditional funding formula to cover municipal contributions for projects already approved, such as Powell River’s liquid waste treatment plant, the federal government would enable municipalities to bring forward the timing of these projects so they generate significant employment this year, when economic stimulus is so desperately needed.
“Senior governments are in a much better position to take on debt, especially when institutions like the Bank of America are saying federal government stimulus packages should be larger than currently planned,” stated Gould in her correspondence.
At the April 29 council meeting, councillor CaroleAnn Leishman said Gould was campaigning for the city to pressure the federal government, perhaps through the Association of Vancouver Island and Coastal Communities, the Union of British Columbia Municipalities (UBCM) or the Federation of Canadian Municipalities (FCM), to ask the federal government to change its funding formula.
“I don’t know if that will help the city with our sewage treatment plant because we’ve already borrowed money,” said Leishman. “I don’t know if the government was actually to pass something like that if we could change the way it is being funded.”
Leishman said UBCM has supported an FCM report to the federal government requesting immediate financial support for the federal government to deliver $10 billion for emergency operating funds for local governments.
“It’s great to know the UBCM and FCM are lobbying the government for support during these challenging times, to carry on and not have to cut so many services,” said Leishman. “I would be in favour of us sending a letter to both the UBCM and FCM presidents requesting they ask the federal government to consider topping up funding for infrastructure projects as the letter requests.”
Councillor George Doubt said he thinks it’s a good idea to do that. He said the liquid waste treatment plant is already approved and is sponsored jointly by provincial and federal governments. He said the city has already borrowed $10 million, so there is still room for federal and provincial governments to step up and provide more of that funding.
“It would be good for the taxpayers of Powell River,” said Doubt. “It’s nice that the letter writer, Ellen Gould, is appreciating how much value a project like this will bring to the community in terms of jobs and spin-off activities. I would support asking the federal government to do this.”
Councillor Cindy Elliott said she was in favour of writing letters. She said the liquid waste treatment plant is a good stimulus package for the local economy.
Councillor Jim Palm said he had a bit of difficulty because the city had already borrowed money to get the project up and running.
“Writing letters is one thing; it may be helping other municipalities if the federal government was to step up in this regard,” said Palm. “Since we have already got more than $50 million for this project, I’m not sure putting the city’s name on this letter is the right thing to do.”
Mayor Dave Formosa said he wouldn’t hold his breath waiting for senior levels of government to kick in more than $20 million more into Powell River’s liquid waste treatment plant but it doesn’t hurt to write the letter. He said his big pet peeve is for financial support for the city’s asset management plan, and he has lobbied UBCM and FCM presidents for support.
“They said they were on it and they were going to ask the province to treat the asset management, the rebuilding of our country, the same way they treat water and sewer projects,” said Formosa. “We haven’t heard anything on that and it’s been two years.”
Council voted to send letters to UBCM and FCM and advise Gould through a letter.
