Sproat Lake Municipal Incorporation Study

Transcription

Sproat Lake Municipal Incorporation Study
Technical Report
April 2007
Sussex
Consultants L t d
with Landworks Consultants Ltd. and
McGill & Associates Engineering Ltd.
Table of Contents
1. Introduction
Overview
The proposed municipal area
What can be compared
Major assumptions
The study team
Report outline
2. Current Situation
Introduction
Population
Residential properties
Tax base
Total property taxes in 2006
Property taxes on typical properties
3. Boundaries
Boundary guidelines
Four candidate areas
Potential boundary combinations
4. Current Local Government System
Introduction
Alberni-Clayoquot Regional District (ACRD)
Province of BC
Summary of local government services
Private utilities and organizations
5. Municipal Governance
Overview
What type of municipality
Elected officials
Who can vote for mayor and council
Overview of changes
Shifts in responsibilities
Layers of local government
Land use and development
A municipality's financial authority
Environmental protection
The Community Charter
What need not change
6. Water Quality
Introduction
Drinking water
Water activities and uses
Upland activities and uses
Local government tools
7. Regional District Taxes
8. Financial Principles
Constant 2006 dollars and 2006 service levels
A normal year
Policing
Community growth
Apples-to-apples budget items
Not apples-to-apples
Provincial short term assistance
Other financial assistance programs
9. Municipal Infrastructure
Near term: Municipal offices
Near term: Council chambers
Near term: Furnishings and equipment
Near term: Road rehabilitation
Near term: Public works equipment
On-going capital
Transfers to reserves
Gas tax projects
Summary of infrastructure
10. Annual Municipal Budget
Overview
Annual municipal Spending
Summary of annual municipal spending
Annual municipal revenues
Summary of the municipal budget
11. Tax Impacts
Total property taxes
Tax rates
Tax impacts on residential properties
Tax impacts on businesses
Tax impacts on farms
How do the projected taxes compare to other municipalities?
12. Boundary Options
Different municipal boundaries
Smaller boundary: Core Area only (exclude Forestry)
Core Area + Forestry + East Area
Largest boundary: All four areas combined
Summary of boundary options
13, What If
Introduction
Different operating costs
What budget reduction is needed to erase the tax rise?
Different infrastructure costs
Changing the business tax multiple
Community growth
Lower provincial grant
14, Summary
Municipal status
Why consider municipal status?
Municipal boundaries
Land ownership
Municipal staffing
Municipal budgets
Property tax impacts
Municipal infrastructure
Provincial funding
Risks
Appendix 1: Glossary of Terms
List of Figures
Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Figure 6:
Figure 7:
T h e
Overall Study Process
S p r o a t Lake Municipal Incorporation Study Committee
M a p of the Sproat Lake Official Community Plan Area
S e l e c t e d BC's Municipalities in Sproat Lakes Range
S p r o a t Lake Housing Occupancy
2 0 0 6 Tax Base in the Sproat Lake Fire Protection Area
R e l i a n c e on the Residential Tax Base
Figure 8: T o t a l 2006 Weighted Tax Base in Selected Municipalities
Figure 9: 2 0 0 6 Property Taxes Rates
Figure 10: T o t a l 2006 Property Taxes from Fire Area Properties
Figure 11: S u m m a r y of 2006 Property Taxes from Fire Area Properties
Figure 12: 2 0 0 6 Taxes on a $300,000 Residential Property
Figure 13:
Figure 14:
Figure 15:
Figure 16:
Figure 17:
S u m m a r y of 2006 Taxes on a 8300,000 Residential Property
2 0 0 6 Property Taxes on a $300,000 Business Property
S u m m a r y of 2006 Taxes on a $300,000 Business Property
2 0 0 6 Taxes on a $300,000 Residential Property and a 8300,000 Busines!
C h a r a c t e r i s t i c s of the Candidate Areas
Figure 18: M a p of the Four Boundary Areas
Figure 19:
Figure 20:
Figure 21:
Figure 22:
C l o s e - u p Map of Core-Northeast Boundary
C l o s e - u p Map of the Core-East Boundary
M a p of the Alberni-Clayoquot Regional District
T h e Alberni-Clayoquot Regional District Board
Figure 23:
Figure 24:
Figure 25:
Figure 26:
2 0 0 6 ACRD Services and Functions at Sproat Lake
P r o v i d e r s of Selected Services and Functions at Sproat Lake
S u m m a r y of Local Service Providers
E l e c t e d Local Officials
Figure 27: S u m m a r y of Voter Eligibility in a Municipality
Figure 28: O v e r v i e w of the Current System and the Municipal System
Figure 29: S h i f t s in Service Responsibilities Due to Municipal Incorporation
Figure 30: L a y e r s of Local Government
Figure 31: T a x Rates for ACRD functions (2006 levels)
Figure 32:
Figure 33:
Figure 34:
Figure 35:
A C R D Services and Functions at Sproat Lake (2006 levels)
A v e r a g e Residential Property Assessment at Sproat Lake
M u n i c i p a l i t i e s for Comparison with Sproat Lake
S u m m a r y of Municipal Infrastructure Allowances Over Six Years
Figure 36: A d m i n i s t r a t i o n Staffing in Comparable Municipalities
Figure 37: 2 0 0 6 Fire Department Budget
Figure 38: 2 0 0 6 Municipal Road Maintenance Budgets (Cost Per KM)
Figure 39: M u n i c i p a l Budget for Parks, Recreation and Grants
Figure 40:
Figure 41:
Figure 42:
Figure 43:
Figure 44:
Figure 45:
Figure 46:
Figure 47:
Figure 48:
Figure 49:
Figure 50:
Figure 51:
Figure 52:
Figure 53:
Figure 54:
Figure 55:
Figure 56:
Figure 57:
Figure 58:
Figure 59:
Figure 60:
Figure 61:
Figure 62:
P r o j e c t e d Municipal Spending (2006 levels)
P r o j e c t e d Municipal Revenues (2006 levels)
S u m m a r y of the Projected Municipal Budget (2006 levels)
T o t a l Property Taxes from Spinal Lake Properties (2006 levels)
P r o j e c t e d Tax Rates for the Municipality (2006 levels)
T a x e s on a 8300,000 Residential Assessment (2006 levels)
T a x e s for Various Residential Values (2006 levels)
P r o p e r t y Taxes on a $300,000 Business (2006 levels)
P r o p e r t y Taxes with Various Business Assessments
P r o j e c t e d Tax Impacts on Farm Property
2 0 0 6 Local Taxes on an Average Residential Property (incl. vacant lots)
S u m m a r y Characteristics of Each Area
S u m m a r y of Tax Increases for the Four Boundary Options
T a x Impacts of Different Annual Spending on a $300,000 property
C o m p a r i s o n of Local Elected Officials
O v e r v i e w of Service Providers
C o m p a r i s o n of Service Providers and Responsibilities
P r o j e c t e d Staff for a Sproat Lake Municipality
P r o j e c t e d Municipal Budget (2006 levels)
P r o j e c t e d Tax Rates (2006 levels)
P r o j e c t e d Taxes on a $300,000 Residential Property (2006 levels).
T a x Impact on Various Residential Assessments (2006 levels)
T a x Impacts on Various Business Property Assessments (2006 levels)
1. Introduction
Overview
Sproat Lake is an unincorporated community near the City of Port Alberti
Island. It is a "rural status" community — that is, it is not a municipality. It
Electoral Area D of the Alberni-Clayoquot Regional District. There are at
round residents at the lake. This study examines the impacts of creating a
for the community. The work provides a description of how the current sy
an explanation of what could change if a municipality is created.
Figure 1: T h e Overall Study Process
Current system
How do things work now?
Janualy 18, 2007
Discuss with the public
Governance changes
Structure, powers and
responsibilities of a
municipality
This
of
Februaiy 22, 2007
Services and finances
Operations, finances
and tax impacts
April 26, 2007
Request a
referendum?
Have a vote, or
end the matter?
Further analysis and
consultation
Update everything
as needed
Po.
futuR
Actual referendun
Voters would decide the
outcome
angel.L!
66;0014,9,F
r
u
To create a municipality, a referendum
_
•
wou'd have to pass it The study could lead to a
t Lake
t
oucih no commitment has6oeit.made to Droceed,lhzrefahr!
The study is being managed by the Sproat Lake Municipal Incorporation Stud
Committee, a volunteer group of local residents. Using funds provided by the
Ministry of Community Services, the committee hired Sussex Consultants to I
Technical Report. The committee's role is to assemble the information, preser
owners and residents for public discussion and debate, and then decide wheal(
request that the Province of 13c conduct a formal referendum on the matter.
Figure 2: S p r o a t Lake Municipal Incorporation Study Committee
Name
Wendy Ewing, Chair
Margo Thom, Secretary
Rene Lacoursiere, Treasurer
Derek Appleton, Spokesperson
Bob Cole
Bob Collins
Derek Cyr
Jim DelRio
Jack Edwards
Gordon Gallagher
Penny Paul
Les Sam
Darryl Saunders
Judith Sayers
Joe VanBergen
Jim Vissers
Ex officio member: Penny Cote
Affiliation
Resident
Resident
Advisory Planning Committee (APC)
Resident
Resident
Agriculture; resident
APC
Commercial
APC
Sproat Lake Community Assoc'n (SI2
Non-resident
Chief, Tseshaht Band
Commercial • • •
Chief Councillor, Hupacasath Band
SLCA, APC
Resident; Forest Indust. Flying Tanke
Sproat Lake Regional District Directot
The proposed municipal area
The map on the following page shows the Sproat Lake Official Community Pl
This is the maximum municipal size that has been considered in this study. Gi•
amount of farm land in certain parts of the OCP area, the work here focuses or
municipal boundary that includes all the lake but excludes the farm areas just
Somass River and the farm and airport area to the north. Other options could b
considered, including combinations of the core area and farm areas, the airpor
Central Lake.
What can be compared
No matter what form o f local governance is in place, the future will remain un
There will always be change, or pressure for change, that will affect service le
property taxes, community policies, and people's satisfaction with how their I(
government works. It is impossible to confidently develop the array of assump
speculations needed to form a detailed picture of the future.
To simplify the comparison of financial impacts, this report shows what could
under municipal status, the current service levels are held constant wherever p
The work then compares this to a continuation of the current system. This mea
comparing the 2006 rural system taxes and service levels to the projected 200(
taxes and services. Data for 2006 is used because it is the latest year for which
of numbers is available.
,••
'••••••• •
I
.
•
•
,-t ,i-N,
• • • ..•
0
•
,
•:••••,.,•••••••?••
••• 1 . •••••••
c • „,„:„•
-0-
• •:• •••••••• ••
•,44•;!..-,..:,•
: •••J
-•
,
•,••J;1
:•:-••
•
Major assumptions
A number of assumptions must be made in order to develop some projections
municipal status could mean. Most of these relate to finances.
• Municipal status is assumed to have occurred, as i f instantaneously, at the
2006. In fact, municipal incorporation couldn't occur until the first half of
there is not enough usable data relating to 2007 and none at all for 2008.
• Changes under municipal status would occur over time. There would be a
period in the early years, when some grant funds have not yet been used at
service responsibilities have not yet been transferred to the new municipal
spending and tax projections for a "normal" year t h a t is, after all the gra]
been accounted for and the municipality provides a full array of services —
the basis for comparing municipal tax impacts with rural taxes.
• Where possible and relevant, 2006 spending on local services is used wile'
comparing the current system with the municipal system. This allows an
apples" comparison. Where this is not possible, spending in "comparable"
municipalities has been used as a guide to help project what a municipal c
might reasonably choose to spend. In the end, however, spending prioritie
set by the elected municipal council. Council could well choose higher or
spending levels than projected here.
• No attempt is made to build in the effects of potential changes in service I(
time, either under municipal status or the current system. There is no doub
changes will take place but there is no way to predict their scope and impa
assumption should not be mistaken for certainty.
• All dollar amounts are stated in terms of constant 2006 dollar values; in fla
affect future amounts for both the municipal ease and the current system.
• The upcoming policing tax is included in the before-and-after tax picture.
Province has indicated that smaller communities will start to pay a greater
their policing costs in 2007. The amount used here is based on the tax rate
by the Province in November, 2006.
• The study does not focus on the effects of population growth. This is a ices
study, not a cost of growth study. Building detailed assumptions about cor
growth into the analysis would make it virtually impossible to separate the
impacts of municipal status from the tax impacts of community growth — t
since assigning numbers to community growth requires a great deal of spe
The matter of restructuring is complicated enough without introducing spe
financial assumptions about a rising population. However, the potential fir
continued development are considered as a "what-if' question later in the
The study team
Tom Reid of Sussex Consultants Ltd. was the principal author, researcher, and
the work. Kelly Gesner of Landworks Consultants Ltd. provided text, assistant
advice on water quality issues. Alan McGill, P.Eng., o f McGill Engineering pi
overview information on roads.
The provincial liaison for the study is Felicity Adams, a Senior Policy An
Local Government Structure Branch of the Ministry of Community Servii
should be noted that the staff of the Albemi-Clayoquot Regional District I
important and helpful technical information, including maps and budget d
Report outline
This report consists of the following chapters.
I. I n t r o d u c t i o n and overview.
2. B a s i c characteristics of the community.
3. H o w the current local government system works.
4. M u n i c i p a l boundary options.
5. H o w municipal government works.
6. C h a n g e s in local service responsibilities.
7. F i n a n c i a l principles applied in the tax impacts.
8. R e g i o n a l District taxes before and after municipal incorporation.
9. S h o r t term assistance from the Province.
10. C a p i t a l infrastructure requirements for the new municipality.
11. P r o j e c t e d annual budgets for the new municipality.
12. E s t i m a t e d property tax impacts o f municipal incorporation.
13. U n c e r t a i n t y and the impacts of "what q u e s t i o n s .
14. S u m m a r y of the report.
2. Current Situation
Introduction
This chapter describes Sproat Lake in terms of its basic characteristics and con
other communities that arc municipalities.
Population
The population o f Sproat Lake is bigger in the summer than at other times. Ha
terms of municipal status, the permanent, year-round population is important b
• There needs to be a sufficient population to supply an adequate pool of etc
officials (mayor and council); and,
• Certain provincial grants arc based on the year-round population, not the p
seasonal count.
The recently-announced 2006 Census results show a year-round population of
Electoral Area D. Virtually all the homes in Area D are in fact at Sproat Lake,
figure is used in this report. With about 2,000 residents, Sproat Lake would be
than 51 o f the province's 157 municipalities.
Figure 4: S e l e c t e d BC's Municipalities in Sproat Lake's Range
1
Lake Cowichan
I
Cumberland erfAM2 . . . / . . a r a W f O r A r - o r "Or
Port McNeil
Lillooet
A "Zetgeed:rff0;e7 'JON/
" M O "
/ 4 O 7 . / X e l eeed/Z
/ M A T
••••= roOri".";M, 0,912M
/ 4 0 7
. . d c a
Pemberton OZO9O7 /Xi/AV % a rol;12MailitiftftftCMMO I M P
A
Sproat Lake
Fruitvale
/,,M 27/' "WOMOOMOOM MEW arA W o J
Highlands K 0 7 / ,
Anmore
Warfield
areefeff,. /A?Y. & 6 1 .
,
a
wiz" zemmgmarmvxm2,-,eore-
Tofino ro,f / : / / A V A r
A
BC hE
municipalit
Lake has a
than 51
A
,ANO2r601 ,t69.7 dOr../Zai
Lumby
Harrison Hot Springs W4 0902WeEN 2?MiW / 9 -A;12 WOW.
Ucluelet rrOZZOOIMEMMO. " M l e .
A
Gold River VAMOIOAW/ AJAREV/A100:00
Lions Bay
dzor A m o r Jam:
Keremeos Ar'.•etaMo'7
J
.
A
z
500 1 , 0 0 0
2006
o
1 , 5 0 0
2 0 0 0
2,500
Residential properties
The 2006 Census indicates that there are 841 year-round occupied homes
out of 1,154 in total. This means over 300 homes — 27% of the total — are
seasonal residents. With over 1,100 homes, Sproat Lake's residential pro'
closely resembles municipalities in the 2,500-2,800 population range.
Figure 5:
Sproat Lake Housing Occupancy
1,200
Seasonal
1,000
800
600
/
/ 1 Ye a r round
400
/
200
Homes
Tax base
The tax base is the sum of all the taxable property assessments. Property E
set by the BC Assessment Authority, an independent provincial agency, a
based on real estate market values. The tax base is the predominant sourc(
most local government services in both municipalities and unincorporated
The tax base is broken into various types of property called classes. Tax n
the different classes. For example, a store pays more tax than a home of s
Two communities could have the same population and the same home ass
have quite different tax-paying power. Town A might have a coal mine w:
has only homes. When the tax rate weighting factors are applied — that is,
mine's assessment is factored up to reflect its higher tax rates — the effecti
Town A would be bigger than Town B. This effect can be seen in the next
shows the 2006 tax base for the Sproat Lake fire protection area. The simr
the taxable property values is S370 million but the effective total is 8410 n
equivalents".
Figure 6: 2 0 0 6 Ta x Base in the Sproat Lake Fire Protection Area
Property class
1 Residential
2 Utilities
4 Major industry
5 Light industry
6 business + other
7 Managed forest
8 Rec'n I non-profit
9 Farm land
Total
2006 Amount
$350,180,000
$64,000
$9,287,000
$3,214,000
$3,501,000
$2,471,000
$770,000
$338,000
$369,825,000
Weights
1.00
3.50
3.40
3.40
2.45
3.00
1.00
1.00
Pc
Weighted total
$350,180,000 85.
$224,000 0.1
7_7
$31,576,000
2.7
$10,928,000
2.1
$8,577,000
1.8
$7,413,000
0.2
$770,000
0. /
$338,000
$410,006,000 100.
There is no longer a Class 3 category,
The majority (86%) of the Sproat Lake tax base tics in residential properties. T
a weakness for municipal status, as it shifts most of the tax burden onto home (
However, it should be noted that this does not rule out municipal status, for tw
a First, the majority of municipalities rely predominantly on residential taxe:
might be financially advantageous to be able to shift the tax load away fro]
most municipalities do not have much industry and many have limited bus
sectors, and still they make ends meet.
• Second, whatever the strengths or weaknesses of the tax base mix, they ap
under unincorporated status too, since the Regional District uses fundamer
same tax base as a municipality would.
With an 86% reliance on the residential tax base, Sproat Lake is better off thar
municipalities but worse off than others, as can be seen from the next figure. I\
consistency, the provincially-set weights for regional district taxes are used in
Figure 7: R e l i a n c e on the Residential Tax Base
100%
CD
90%
CD
(1)
FFA
Selected municipalities with around 2000 residents
80%
70%
(1) 60%
50%
'0- 40'lo
cCD3 0%
(/) 20%
715
CP/o
,c.c)
,
xs' P
§
c
\
'
/
s
•?:,"
4cc' s \
C_
-
\
,
,0 4 4 \ ° s
a
c)
,
\6,
c \
s
<PC\
Municipalities set their own tax ratios
While the independent BC Assessment Authority sets the tax base nurn
municipalities decide what share of their tax load falls on each property
' They do this by choosing the tax rate for each class. It is different ir
unincorporated areas, where the Province sets the tax rate ratios and the
local choice as to what class pays what share of the total tax bill.
As shown in the next figure, the total weighted tax base of Sproat Lake is well
of most small municipalities. Note that Tofino's total is exceptionally high for
population (about 1650), due to (a) its unusually high realty values and (b) the
number of seasonal properties. Note that these are based on 2006 property ass
2007 figures would be different because of Sproat Lake's large jump in values
2006 and 2007.
Figure 8:
Total 2006 Weighted Tax Base in Selected Municipalities
$700,000,000
Weighted to reflect the greater tax-paying
power of business and industry
$600,000,000
$500,000,000 , •
$400,000,000
$300.000,000 • • •
$200,000,000
$100,000,000
s o ' :
3
\ef ,<5A
e'
„vx,
6
e
C
g
,
o
c .
c o 9
Nt-e e t ,
1
• < Z t
<<N
gcb c P
• e a c '
cc\
c o q
Total property taxes in 2006
The following figures show the total 2006 property taxes collected from ti
the Sproat Lake fire protection area. Note that they have been grouped hit
would not be affected (or at least not affected materially) by changing to r
status, and those that would be affected in a material way. It can be seen
that business tax rates are generally higher than home tax rates.
Figure 9:
2006 Property Taxes Rates
Materially T a x rate ($11000)
affected'? H o m e s B u s i n e s s
Tax per $1000 of property asmnt:
School tax
Hospital district
B C M + MFA—
ACRD region-wide services*
ACRD: Van. Island Library District*
ACRD: Sproat Lake fire + parks"
ACRD: Other local services*
Provincial rural tax
Total tax per $1000 of assessment
Parcel taxes:
Port Alberni arena
Sproat Lake Community Assoc'n srant'
No
No
No
No
Yes
Yes
Yes
Yes
$3.449
$0.595
$0.082
$0.516
$0.229
$1.005
$0.387
$0.700
$6.963
$9.200
$1.458
$0.265
$1.263
$0.561
$2.463
$0.948
$3.600
$19.758
No
Yes
$47.79
$12,96
$47.79
$12.96
—BC Assessment Authority and Municipal Finance Authority
* Includes 5.25% provincial tax collection fee
"
Business rate ÷ resid
ACRD = Alberni-Clayoquot Regional District
These tax rates are applied against each property type's tax base to produc
collections. In 2006 the total from the fire protection area (basically, all th(
Sproat Lake) was $2.9 million. The Albemi-Clavoouot categories from ab
slightly realigned for the next figures. The Port Alberni arena parcel tax has be
included in the "region-wide" total, and the parcel tax for the community assoc
grant has been included in the ACRD "other local services" total.
Figure 10: T o t a l 2006 Property Taxes from Fire Area Properties
School taxes
Hospital taxes
BCAA + MFA
Total not affected by municipal status
ACRD: Region-wide services
ACRD: Fire dep't + parks
ACRD: Other local services
ACRD: Van Is. Library District
Total of above taxes
Total
$1,401,100
8244,600
$36,200
81,681,900
8314,700
8260,700
$386,000
$201,800
$94100
82,939,200
The fire protection area covers basically all the homes at Sproat Lake
As noted earlier, not all the taxes would be materially affected by becoming a
municipality. For example, school and hospital taxes would remain just as the)
unincorporated status, and the only change to ACRD region-wide taxes would
reduction because the provincial tax collection fee does not apply in a municip
balance, less than one-third of the total taxes collected would be materially affi
can be seen from the next figure.
Figure 11: S u m m a r y of 2006 Property Taxes from Fire Area Properties
Total = $2,939.200
School,
hospital, other
taxes
Not affected
by municipal
status:
81,681,900
82,036,700
Provincial rural
tax $314,700
(69%)
Van. Is:
Library Dist.—/
$94,100
ACRD: Region- :1
w ide serv:
8260.700
ACRE): Fire
A CRD: Other
local services
$201800
dep't 8386,000
,
Affected by ,rnp
status $9O250O
Property taxes on typical properties
The preceding discussion deals with total taxes, but taxpayers care far more al
individual share of the total than about the community total. To measure indiv,
we need to look at a "typical" property. Of course, property values vary consic
an analysis of the assessment data shows that in 2006 an "average" residential
was assessed at about $286,000. This includes vacant lots, mobile homes, and
houses (houses are of course above this average).
2007 Assessments are much higher
roperty assessments jumped between 2006 and 2007. The anE
his report uses 2006 data The results could be different if 200
were available. You can't use your newer, higher 2007 assessn
determine impacts in this study.
For purposes of this study, $300,000 is used for tax comparisons. There m
properties of lower value and many of higher value in 2006.
Figure 12: 2 0 0 6 Taxes on a $300,000 Residential Property
School taxes
$1,035
$179
$25
$1,239
$210
$201
$282
$151
$68
$2,151
Hospital taxes
BCAA + MFA
ACRD: Van Es. Library District
As with the total tax collections for the community as a whole, only about
load would be affected by changing to municipal status, as shown in the n
Figure 13: S u m m a r y of 2006 Taxes on a $300,000 Residential Property
Total = $2,151
School,
hospital, other
taxes $1,239
Not affected
by municipal
•status: $1,508
(70%)
Provincial rura
tax $210
ACRD: Fire
dep't $282
Van. Is. Library
Dist. $68
ACRID: Regionwide serv,
$201
ACRD: Other
local services
$151
ItivalciPatsta
iii:1:'0iiii'grant Is',i:40...:,0
.ovincial grantapplies 'On 0 full time residen
oseVv bee
rnake
not affected,
:b. y municpal a o p
a
oaal.*.:.0•:.i40,..,.,,.......
. 0,01.0,•,„....,.x.e$0.F0J...,..alloo
.
:„high
p a
rant, and • ; 0 : • • • 0 0 4 0 0 . 0 f . p 4 t t f O i i . ' , a
0
0004.*.0::00.0.10 s t a t u s.,.,:...
..„' t i l t a *,.,.,.„.e
•,:,••••t„••t•••:4
.,•,•
0•10ttidki:baatisa•, 450,10440y:#0:;roialrti.aaaaasipg thei•0)c.,1111
As with homes, there is a range of property assessments for businesses (assess:
6), but in order to allow a consistent comparison with residential tax impacts, t
S300,000 property value is used for businesses too.
Figure 14: 2 0 0 6 Property Taxes on a $300,000 BUSitleSS Property
School taxes
$2,760
$437
$79
$3,276
$1,080
$427
$691
$351
$167
$5,992
Hospital taxes
SCAA M F A
ACRD: Van is. Library District
Figure 15: S u m m a t y of 2006 Taxes on a $300,000 Business Property
Total $ 5 , 9 9 2
Not affected
by municipal
status:
$3,870 (65%)
School,
hospital, other
taxes $3,276
Provincial rural
tax $1,080
Van. Is. Libra
Dist. $167
ACRD Regionwide sent.
$427
ACRO: Other
local services
$351
Affected by
municipal
status: $2,122
(35%)
ACRD: Fire
dep't $691
As noted earlier, businesses face higher tax rates than homes. For example, tla
rate for the provincial rural tax is 5.1 times the residential rate ($3.60 compare
for Regional District taxes it is 2.45 times; and when all taxes are combined, ii
times the residential rate. This means the total taxes on a business property arc
the total for a home of equal value. Under the current system, these multiples
determined by the Province. Under the municipal model, the municipal counci
the rates and multiples for the municipal tax (the rates and multiples for schoo
and ACRD taxes would not be affected).
Figure 16: 2 0 0 6 Taxes on a $300,000 Residential Property and a $300,000 Bus
$7,000
$5,992
$6,000
0
Taxes affected by municipal
status
es not materially
aff cted
$5,000 - - O T a
35%
$4.000
$3.000
$2,151
$2,000
30%
$1,000
$0
$300,000 Residential Property
$300,000 Business
x gap could be different
et the current system, the Province sets the tax rate ratios for
xes, but this would change, under Municipal status. While the ratios
regional district taxes would not be affected, setting the ratio
icipa/ tax would be up to municipal council, and it could choose
er multiple. Using a lower ratio would narrow the gap between I
business taxes; a higher ratio would widen the gap. '
As shown in the figure in the earlier "Tax Base" section of this chapter, S]
eight types (' 'classes") of property for taxation purposes:
• Class I: Residential (houses, vacant lots, mobile homes, etc)
• Class 2: Utility (mainly properties associated with Tclus, cable TV, a
• Class 3: (No longer in use)
• Class 4: Major industry
• Class 5: Light industry
a Class 6: Business and other (mainly stores, offices, etc)
• Class 7: Forestry land
• Class 8: Seasonal arid non-profit properties
• Class 9: Farm land
Class I (residential), accounting for 86% of the total, dominates the tax I
a municipal boundary that is bigger than the fire protection area — that is.
that extends into undeveloped areas — would add forestry properties to tI7
and this would reduce the reliance on residential taxes.
3. Boundaries
B o u n d a r y guidelines
The province has set out several principles for choosing municipal boundaries,
others suggest themselves, too. In the end, there is usually no "perfect" bounth
rather an outline of what may be the best fit among often competing goals. Sot
guidelines arc set out below.
• Population: A municipality should generally have at least 500 residents it
provide a suitable base of decision makers, of voters, and of property asse
well, very small municipalities can suffer from diseconomies of scale in th
operations.
• Property lines: T h e boundary should follow legal lot lines; splitting one I(
municipal portion and a rural portion should be avoided. An exception to t
be large tracts of unsurveyed or unsubdivided Crown lands.
• Service areas: The boundary should try to keep local service areas intact,
only will economies of scale be protected but also so that consistent servic
can be maintained.
• Geographic features: Natural features like rivers, shorelines and mountair
obvious boundaries when defining a municipality.
• Road networks: The municipal boundary should include roads that serve
mainly its residents. In addition, the boundary should reflect the practicalit
maintaining the roads and the ability to coordinate land development with
• Community focus: The boundary should try to include those residents wh
community focus, enjoy and use a common set of facilities and services, a
the same service center as the hub of their community.
• Shared economy: The municipal boundary should try to include all those
the same local economy.
• Financial endowment: The boundary should try to include enough of a ta:
endow the municipality with the financial resources to sustain its services
responsibilities.
• Control of impacts: The boundary should try to include those areas where
development will impose an impact on residents, like added traffic flows c
runoff. Enhanced local influence or control over environmental impacts, li
watershed protection, might be obtained with larger boundaries.
Four candidate areas
The study area has been broken into four sub-areas for the purposes of this still
overall area limit assumed here is the Official Community Plan area.
Core area:
• Population, service and tax base centre of the community
• Mostly covered by fire department (except for undeveloped middle portiot
• Mainly residential tax base (over 95%)
Forestry Area:
• Very large area; greatest watershed area
• No roads that would become a municipal responsibility (highway stay
• Few residents and few services
1
• Almost no fire coverage (except homes on highway)
• Balanced tax base (50% forestry, 50% residential), though there is sot
about the actual forestry tax base figures (estimates have been used Ix
East Area:
• Mainly agriculture; few residents
• Limited fire coverage (but virtually all buildings arc covered)
• Includes water pipeline to the mill (which is classified as "industry" fi
taxes)
• Unbalanced tax base (mainly because of pipeline): 35')/0 residential, 61
Northeast Area:
• Few residents; more remote residents
• Mix of land uses, including farm areas
• Includes part of Great Central Lake
• Limited fire coverage area (but virtually all buildings are covered)
• Balanced tax base (30(1/0 homes, 25% businesses, 30% light industry)
Figure 17: C h a r a c t e r sties of the Candidate Areas
Area
Core
Forestry
East
Northeast
Population
Approx 1,900
Approx. 30
Approx. 80
Approx. 20
Roads*
35.6 km
0.0 km
13.7 km
18.5 km
* Highway would remain a provincial responsibility
Tax base
$314 1 m
$32.0 m
$40.2 m
$8.2 m
Farm lots
4
0
14
6
••••.;
▪ ;Cie-
Ma
t
OC
b
o
P
u
n
d
Figure 19: C l o s e - u p Map of Core-Northeast Boundary
•
ao ...... ti41,•
Wwpd
.66 •
Forestry
Area
i• I l l . . . . . . . . .
Figure 20: C l o s e - u p Map of the Core-East Boundary
Sp
Seaton Park
los
East An
(northern por
11"'"111ktuotittasa
j 111111111111
Littleton Dr
McCoy Lake Rd
East Area
(southern portion)
Pacific
Potential boundary combinations
The financial analysis presented later in this report is uses a "basic munic!
that consists of the Core Area and the Forestry Area combined. Other opti
discussed near the end of the report in the "What If ..." chapter.
Basic boundary for analysis: Core and Forestry
• Includes vast majority of residents and properties
• Greatest local influence on watershed
• Includes some (but few) "remote" residents
• Highest possible tax base/km figure
• Few farm tax issues
Alternative 1: Core Area alone (without Forestry)
• Much less influence or control over watershed
• Little reduction in population
• Little reduction in the tax base
• No reduction in the length of municipal roads
• No farm land
Alternative 2: B a s k boundary pits the East (core + Forestry + East)
• Inconsistent policy for farm land (Northeast Area farms remain under
but East Area farms would be in the municipality)
• Some economies of scale (especially for administration services)
• Tax base per km figure is less than Core Area
• Relatively few "remote" residents
Alternative 3: All four areas (core + Forestry + East + Northeast)
• Includes regional facility (airport)
a Includes residents who might feet less connected to Sproat Lake COME
(remoteness of Great Central Lake))
• Consistent tax policy for farm land (all farms would be in the municip
• Northeast by itself has lowest tax base/kin figure
• Most consistent treatment of all area residents
• Maximizes local influence on land use and environmental policies
4. Current Local Government Syster
Introduction
Sproat Lake is an unincorporated community, a term that refers to a eommunit
not a municipality. Various organizations provide and administer services, and
control over the policies of the organizations varies significantly. This chapter
Sproat Lake's current system of local governance and services.
Sproat Lake is governed by a more complex mix of local bodies than a muniei
Decisions about community policies, regulations and finances are made by vai
agencies, and they have varying levels of accountability to Sproat Lake reside
and businesses. Compared to a municipality, planning, developing, and manag
community requires more coordination of policies, regulations and decisions a
diverse bodies.
There are two main local government bodies at Sproat Lake. They vary signifi
the array of services they provide, their funding tools, their obligations, their
independence, and their political structure. They are:
• The Alberni-Clayoquot Regional District (abbreviated as ACRD in this re
• The Province of BC
Note that there are various other public bodies and agencies whose responsibil
services aren't included in the meaning of "local government" as used here bu
could be included in a much broader definition. However, this study focuses o
municipal-related functions, and while a number of government functions ma.,
important in other ways, they are not related to the matter of municipal status
not included in this work. An example is the Vancouver Island Health Authori
activities might be considered as a "local" service under a broader definition b
excluded here because it has no direct bearing on the matter of municipal statu
Albemi-Clayoquot Regional District (ACRD)
The ACRD is the principal local government for Sproat Lake, since it provide
array of "local" services. I t has ten members — three municipalities, six uninet
areas (called electoral areas), and a non-voting seat for the Na-chuh-nalth Bap
Board has a total of 10 voting directors: Port Alberni has two; the others have
Sproat Lake is less than half of Electoral Area D's geogrpahy but accounts for
of its population. Area D includes both Sproat and Great Central Lakes and ex
Strathcona Park to the northwest (see following map).
Figure 21: M a p or the Alberni-Clayoquot Regional District
Albe
Reg
C,!,11110X,S1 n t h
Reg 10-1.41
A
AlberniCla yoqo C
.1
E!ctoIAreaD
itt
t 27
Alt•rj
Tofino
f.4••••••,k
Alb
yo
Uoluiet
4,0
Pre
Sou
SO!
9 8
W .
R a n o s t i o
Figure 22: T h e Albemi-Clayoquot Regional District Board
2001
Pop'n-
No, of
directors*
Voting
strength"'
17,749
2
9
1,466
1
1
1,559
1
1
3 Municipalities:
City of Port Alberni
District of Ta n °
District of Ucluelet
Nu-chah-nulth Band (non-voting seat)
1**
6 Electoral areas:
A (Bamfieid)
405
1
1
B (Beaufort)
502
1
1
C (Long Beach)
1,519
1
1
D (Sproat Lake)
2,348
1
2
E (Beaver Creek)
2,896
1
2
F (Cherry Creek)
Totals:
1,901
1
1
30,345
10"
19
- Including I,R. residents
* Voting strength divided by 5 (rounded up)
APopulation divided by 2000 (rounded up)
**Nonvoting seat
" Voting directors
The Regional District provides a number of important services and functions a
Lake. This study breaks the ACRD's services into two distinct groups;
• Region-wide or broad-area, shared functions that would not be affected in
meaningful way by municipal status. The new municipality would continu
participate in these functions more or less the same as now.
• Functions and services that WOuld be affected significantly by creating a
municipality. Responsibility for these would shift from the ACRD to the n
municipality.
The next figure shows the Regional District services that Sproat Lake particitx
along with the taxes required for each. The table shows more detailed tax infot
than appears on the tax notice that is sent by the Province on the ACRD's bek
that the 5.25(1/0 provincial tax collection fee is included in the figures.
Figure 23: 2 0 0 6 ACRD Services and Functions at Sproat Lake
Who participates?
Tax
rate"
Type
of tax"
Tax
res
Functions that would not shift:
Admin + general government
E 911 telephone
Alberni Valley emergency plans
Custom transit (Handi-Dart)
Alberni Valley airport
Alberni Valley landfill
Regional planning
Regional parks
Grant in aid - regional
Grant in aid - Alberni Valley
Grant in aid - McLean Mill
Port Alberni arena (parcel tax)
All ACRD members
All ACRD members
Port Alberni, B,D,E,F
All ACRD members
All ACRD members
All ACRD members
Areas B,D,E,F
All of Area D
Functions that would shift to a munic pality:
Electoral area administration
All 6 electoral areas
Building inspection
Animal control
Area D
Rural area planning
Area D
Grant in aid - Sproat Lake
Local service areas:
Sproat Lake fire dep't
Most of Sproat Lake
Sproat Lake community park
Most of Sproat Lake
Grant to SLCA (parcel tax)**
Most of Spreat Lake
Van. Island Library District
Large part of Van. Is.
$0.1242
$0.0533
$0.0124
$0.0207
$0.1028
$0.1116
$0.0240
$0.0066
$0.0172
$0.0090
$00304
$47.79
Subtotal
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
Asinnt
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
Parcel
$0.0506
$0.0698
$0.0002
$0.2688
$0.0025
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
$0.9396
$0.0659
$12.96
$0.2289
Subtotal
Asmot
Asmnt
Parcel
Asmnt
1
Grand total, all ACRD taxes in 2006
* Incl. 5.25% provincial fax collection fee
AAsmnt = Ta x rate per $1000 of assessed property value
- Based on a $300,000 residential property (2006 asmat)
** Community Assc
In terms of taxes, by far the most dominant ACRD function is the Sproat
department, followed by local land use planning.
The Regional District exercises its powers and services through bylaws 01
cite two examples, the official community plan for Sproat Lake is Bylaw
each year the Board adopts a budget bylaw setting out the spending and fi
function.
In terms of representation, Sproat Lake's influence on ACRD matters is li
electoral area director. It should be noted that ACRD bylaws affecting Sp
be adopted without the approval of other ACRD directors. This would of
expected for services that are shared by multiple areas — after all, each pat
member should have a say in adopting a shared service bylaw, like E-9I I
also applies to a service that affects only Sproat Lake. For example, a zon
affects only Sproat Lake, and no other area, requires approval from A C M
other areas, and these remote directors are not elected by (and thus not ac(
Sproat Lake voters. This feature is common to all regional districts.
In addition, some regional district bylaws require the approval of the Pray
example, a regional district community plan bylaw must be submitted to t
approval.
It is important to note that Sproat Lake would still be part of the Regional
municipality. It would have its own director on the ACRD Board (a munic
member) and would still participate in the ACRD's wide-area services an
Province of BC
The Province offers many services to communities, but most are not relate
status in any meaningful way. One example is the Pacific Rim Highway (I
which would remain a provincial responsibility whether or not Sproat Lak
municipality. Other important functions of the provincial government that
relevant to the question of municipal status include education, social servI
and financial policies, and these are not addressed in this study.
However, it does act as a provider of four particular local government-like
Sproat Lake,
• Local road maintenance: The Province is responsible for all public re
Lake (these are not to be confused with private or forestry roads).
drainage and storm runoff on road allowances but generally not on pri
Province contracts road maintenance to a private company but ultimat
for roads rests with the Province.
• Tax collection: The Province is the collector of property taxes outside
municipalities (a role that municipalities themselves fulfill within then
The Province sends out tax bills to owners and tracks and collects thei
does this for multiple taxing agencies, including the Regional District,
forwards the funds on to each agency. For regional district taxes it cha
fee for this service. This fee is built into the tax rates shown on the tax
examnie_ i f a recrion 1
riondc (Zinn non fewr A opri-A;n Qp?-1/;,-4,e b
as needed to generate $105,250; the Province keeps $5,250 as a collection
passes the S100,000 on to the regional district. (Municipalities do not havc
charge for this; administration costs, including tax collection, form part of
municipal tax rate.)
• Subdivision approval: A provincial staff member serves as the independet
Approving Officer outside municipalities, and the Province charges subdi
application fees to help cover the costs of this function. Subdivision applic
referred to the regional district for review (especially to check for conforn7
zoning and development regulations).
• Policing: Policing at Sproat Lake is provided by the RCMP under an agrel
the Province. The agreement applies to policing in both the electoral areas
municipalities below 5000. The Province will introduce a new policing ta)
Recent estimates suggest a tax of $0.18 per S1000 for Sproat Lake. Note
a Sproat Lake municipality would have fewer than 5000 year-round reside
would not be responsible for policing (other than the new tax) and would
the provincial policing umbrella.
To help recover its road and policing costs in electoral areas, the Province Levi
"provincial rural tax" of $0.70 per $1000 for 2006. This universal rate applies
electoral areas of BC (the only exception is the University Endowment Lands •
This means an average residential property in Sproat Lake, assessed at $300,01
$210 whereas an average property outside, say, Fort St. John, assessed at perh
$150,000, pays only $105. The use of one rate across the province means that
between what an area pays for roads and policing and what it receives can be
As a simple example, consider that spending another $100,000 on Sproat Lake
would have no measurable effect on the province-wide tax rate of $0.70, so re
would see a large increase in their service quality but no increase in their tax. •
contrast to the smaller area fire department, where a budget jump of S100,000
mean a direct local tax jump of S100,000.
The Province also sets tax rates for school purposes, for BC Assessment Authi
funding, and for Municipal Finance Authority use. None of these would be aft
by becoming a municipality.
In terms of accountability for provincial policies and decisions as they might a
services, the influence Sproat Lake electors have on this "local government" b
limited to one MLA shared by the 50,000 or so residents of the provincial ridli
Summary of local government services
The following tables summarize functions o f the various local government bo(
Sproat Lake.
Figure 24: P r o v i d e r s of Selected Services and Functions at Sproat Lake
"Hard" services
Street lights
Water
Sewage disposal
Highway 4
Local roads,.,.::•:i;,,
Storm drainage
Garbage collectiol::
Landfill operations
Alberni Valley airport!:'
Province (limited) • •::::••• •• :
Individual owners (wells)
Up to individual owners (septic) t:
Province (via contractor)
Province (via contractor)
Province (roadway drainage only)
: Lip to individual residents
Alberni-Clayoquot Regional District
:•Altierni-Clayoquot Regional District
Protective services
Local fire protection .•,,
Forest fire response
Policing -:•1'
Emergency 911 telephone
Bldg permits + inspection'
Province
Province via RCMP contract
Recreation and culture
Community
Regional parks
Contrib'n to Port Alberni arena
Contrib'n to Port Alberni rec'n
Grant to Community
Other grants (Shore Patrol, etc)
Librasy
Community development
Subdivision approval
Regional planning
Local planning (OCP ,
Economic development
•:Albemi-Clayoquot Regional District
Van . L i b r a r y Dist. (through ACRD)
Province (with inputRegional
tofrom
uqoya lC
ACRE))A
- iDistrict
nreb l
Albemi-Clayoquot Regional District
Other services
HOldi-Dart
Animal control (limited)
1.3**Ft.1/.!75T40#1.0ii Schools
::-Bb Transit (through
Regional
touqACRE)A
oyaC
l - inrebl District
Vine,E4PAssessmentAtilhOY
Province + School District #70
Province
Propert9. tax collection•
Tax policy (homes vs. business) P r o v i n c e
Figure 25: S u m m a r y of Local Service Providers
Province
of BC
Various province-wide services, plus
Policing
Highway 4
Local roads
Tax collection
Wide-area functions
General administration
911 emergency
AV emergency plans
Custom transit
AlberniClayoquot
Regional
District
AV airport
AV landfill
Regional planning
Regional parks
Grant in aid - AV
Grant - McLean Mill
Note: A V stands
for "Alberni
munic.
1 Shift to
Local services
Zoning and land
use regulation
Electoral area admin
building inspection
Animal control
Grant - Comm Assoc
Si_ community parks
SL stands
for "Sproat Lake"
Valley"
Functions
not
Library district membership (through ACRD)
Schools
affected by
changing
to munic.
Status
Hospital
Property assessment
Private utilities
Sproat Lake Community Assoc'n
Postal and others
Private utilities and organizations
There are a number of private businesses and organizations that provide servic
Sproat Lake properties, Telus provides telephone lines to the community, and
companies provide cell phone coverage at Sproat Lake; BC Hydro provides et
power.
rivateutilities _ affected
• ate Utilities would no be affected by,bbang
changing
..
t •
m
uld remain Private entities
There are volunteer service groups, too, like the Sproat Lake Community Assc
that would not be affected. Although it receives funding through the ACRD,
Association's assets and liabilities would remain with the Association. Fundin
continue through the municipality rather than through the ACRID.
However, the volunteer fire department is a direct Regional District service an
requirements, bylaws, assets and liabilities woo/a' be transferred from the ACR
new municipality. There would not need to be any meaningful change in the s
procedures, or equipment of the fire department, and the volunteers serving no
continue if a new municinalitv is formed.
5. Municipal Governance
Overview
Municipal status would mean more autonomy for the community — but al!
obligations.
The Alberni-Clayoquot Regional District is the main local government fo
but ACRD policies affecting Sproat Lake — like a zoning bylaw — require
ACRD members not elected by Sprout Lake voters. This is because more
director is always required to pass a regional district bylaw. This means tt
Lake's director (that is, the director for Electoral Area D) can't pass a byt
only Sproat Lake; at least one director from another area must also apprm
In addition, certain bylaws that a regional district may want to adopt regtf
of the Province. For example, an Official Community Plan bylaw in an el
requires provincial approval as well as approval from the regional district
This would change under municipal status. There would be less reliance o
For all but a few special purposes, municipal bylaws require the approval
municipal council, and only Sproat Lake voters elect these decision make
status would thus establish a closer link between decision makers and clec
However, with this autonomy come more obligations. Services and functi
provided by less "local" bodies (the ACRD and the Province) would beco
responsibility of only Sproat Lake. For example, road responsibility woull
Province to the municipality, and fire protection and building inspection v
the ACRD to the Sproat Lake municipality.
What type of municipality
I f referendum is held and passes, the new municipality would probably
District of Sproat Lake, though this would be up to the Province. A dist6
is one of four basic types of municipality; the others are a village, a town,
Nearby examples of district municipalities are Tofino, Ucluelet, and Lant2
smaller boundary is selected, it could be a village or town rather than a di5
municipality.
The Community Charter indicates that a district municipality should have
of seven (a mayor and six others). For a town, council should have a five-i
council. However, the Province has some latitude here and even as a distri
there could be a mayor and four other councillors. Ucluelet, for example, i
municipality with a five-member municipal council.
Elected officials
The municipality would be governed by an elected municipal council, probabl:
There wouldn't be a separate regional district director; instead, a member of cc
would sit on the regional board.
Figure 26: E l e c t e d Local Officials
WIFIZIMM2N1
1 Regional district director
Municipal system
Municipal council of 5
Mayor
(a member of council also
sits on the regional board)
Who can vote for mayor and council
The eligibility rules for voting in municipal elections are the same as for votin;
referendum and for voting in the electoral area elections at the regional district
you can qualify to vote as a resident elector or as a non-resident property eleci
summarized below.
Figure 27: S u m m a r y of Voter Eligibility in a Municipality
A resident elector
A non-resident r o e
To qualify as a resident elector (basically, a
person whose principal residence is at
Sproat Lake):
You must be a Canadian citizen.
You must be 18 years old or more.
You must have been a resident of BC for six
months prior to voting.
You must have been a resident in the
proposed municipal boundary for 30 days
prior to voting.
To qualify as a non-resident pro pen
(basically, an owner of property at
who lives elsewhere in BC):
You must be a Canadian citizen
You must be 18 years old or more.
You must have been a resident of E
months prior to voting.
You must have been a registered o,
property in the proposed municip
boundary for 30 days prior to vot
There can be only one non-resident
elector if there are multiple owne
another of the owners might qua]
resident electors because they liN
You must have approval to vote 1
other non-resident owners of yoL
Other points of note:
• You can qualify as a resident elector or a non-resident property elector, bu
• No one can vote twice, and businesses, organizations and corporations do
vote.
• Renters can qualify as resident electors.
• If there are multiple non-resident property owners for one property, only c
vote, and must obtain the consent of the majority of the owners to do so.
These municipal eligibility requirements are essentially the same as for a
municipal status, i f one is held.
Overview of changes
Municipal status would shift more authority (and more obligations) to a I(
body. There would be less reliance on the regional district and the Provin
be a shift in responsibilities from these two bodies to the municipality.
Figure 28: O v e r v i e w of the Current System and the Municipal System
Affected by municipal incorporation
Regional District
local services
Province of BC: Local
roads, subdivision
approval, tax collection,
tax policies
N
o
t
affected by municipal incorporation
Private utilities
(phone, TV, hydro, R e g i o n a l Distr
etc) w i d e - a r e a servi
Volunteer
organizations
(community
assoc'n, etc)
Province of BC:
Highway 4 and
policing
Controlled by the municipality
Fire department
Building permits
Building inspection
Regulatory bylaws
Bylaw enforcement
Local roads
Zoning + planning
Tax policies
Individuals:
Drinking watE
supply
-----
Agricultural Lan
Corn misison Al_
matters)
Not controlled by the municipality
Regional Distri(
wide-area servic
Volunteer
organizations
(community hall,
etc)
Province of BC:
Highway 4 and
policing
Individuals:
Drinking water
supply
Agricultural Lan
Commisison (AL
matters)
Shifts in responsibilities
There would be a number of shifts in responsibilities from various bodies and
the new municipality, though a number of authorities (like the school district)
be affected at all.
Figure 29: S h i f t s in Service Responsibilities Due to Municipal Incorporation
JJ
=>
Municipality
Province
o f BC
AlberniClayoquot
Regional
District
Nothing - there is no
municipality now
Various province-wide services, plus „ .
Policing
Highway 4
Local roads
munic,
1 Shift to
Tax collection
Various province-wide services (no change)
Policing (no change)
Highway 4 (no change)
Wide-area f u n c t i o n s
Wide-area f u n c t i o n s
911 emergency
AV emergency plans
Custom transit
AV airport
AV landfill
Regional planning
Regional parks
Grant in aid - AV
Grant - McLean Mill
Note: AV stands
for "Alberni
Valley"
Functions
not
affected by
changing
to M u n k ' .
status
Local roads
i
Taxation policies
Grants to local groups 1 Animal control
Tax collection
i
Building permits
Zoning, OCP, land use B u i l d i n g inspection
Subdivision approval F i r e department
Water (if installed) M u n i c i p a l offices
Sewers (if installed) I Various admin.
Local services
Zoning and land
use regulation
Building inspection
Animal control
Grant - Comm Assoc
SL community parks
A
F
tax collection would become municipal
1 Local roads, subdivision approval and
911 emergency
AV emergency plans
Custom transit
AV airport
AV landfill
Regional planning
Regional parks
Local services
Local functions
would become
municipal services
A
(some could be
contracted to
ACRD)
Grant in aid - AV
Grant - McLean Mill
SL stands
for "Sproat Lake"
Schools
Hospital
Property assessment
Private utilities
Postal and others
Note: AV stands
for 'Alberni
Valley"
Library district membership (through municipality)
Schools
Hospital
Property assessment
Private utilities
Postal and others
a
Layers of local government
Would creating a Sproat Lake municipality simply add another level of g(
the community's administration? Yes and no.
• Yes, because the Regional District and the Province would still be th
incorporation and there would be a new municipal body too.
• No, because the roles of some existing bodies would be sharply redu
eliminated in favour of the new municipal body.
Figure 30:
Layers of Local Government
Current Rural System
Municipal
, P r o v i n c i a l "local gov't" services:
Roads + subdivision
Regional District: Local services (land —
use bylaws, local grants, etc)
Province: Policing ÷ Hwy 4
Municipality: N u
services now pray
Province: Polk
Regional Dist.: Wide-area services
(911, landfill, regional parks, etc)
Regional Dist.: Wide
(911, landfill, regior
Province: Province-wide services
(ferries, health care, etc)
Province: Province(ferries, health
Land use and development
Land use regulations: A s a municipality, Sproat Lake would not rely on
district or the province for approval of zoning, community plan, or other
development. Formulation and adoption of these bylaws would be up to a
council. The public information and notification process for rezoning and
plan bylaws is basically the same for both a regional district and a municit
Sproat Lake municipality would inherit the existing regional district by/a?
development. These include zoning, community plan, and subdivision byh
municipal council could then amend them as it sees fit, just as the regiona
under the current system.
However, changes to the community plan by the ACRD under the current
the approval of the Province, whereas changes under the municipal model
under the municipal model, OCP and zoning bylaws would be adopted on
elected by Sproat Lake voters, whereas under the current system the approval
ACRD directors is needed.
Subdivision: Under the current system, applications for subdivision are made
Ministry of Transportation, where a staff member, with the independent, stand
position of Subdivision Approving Officer, approves or rejects the application
Ministry refers the application to the Regional District for commentary on wit(
consistent with the ACRD's zoning bylaw. Under the municipal system, the rc
Approving Officer becomes a municipal responsibility. Usually, this independ
position is filled by a senior municipal employee, though it can be contracted (
Water: Sproat Lake has no community water systems; each owner is responsit
his/her own, and the vast majority use water from the lake. Forming a munieip
not affect this. There is no requirement or need to install a community water s:
because a municipality has been created.
Sewer: A s with water, there is no community sewer system, and forming a nu
would not require that one be built. Under the current system, it is up to the M
Health to investigate reported problems like failing septic systems or other sev
pollution issues. In a municipality, monitoring might also be up to the municir
Road standards: Municipalities are responsible for their road standards and
maintenance. However, being a municipality does not mean you must have url
standards. Most municipalities have road standards that match their communit
Rural-style municipalities usually have rural-style roads. Under the current s r
standards for new developments are set by the Regional District servicing stall
bylaw and by the Ministry of Transportation regulations and policies. Under n
status these would be set by municipal bylaws.
Drainage: Under the current system, the management of storm runoff is up tc
Ministry of Transportation but only On roadways. The Regional District does
storm drainage function for Sproat Lake (though it could). Under the municiplthe municipality itself would establish drainage standards, policies and works
beyond just the roadways.
A municipality's financial authority
The Local Government Act and the Community Charter give municipalities br
for financing the planning, management and administration of the community.
important features warrant comment here.
• Development cost charges: Municipalities can collect infrastructure fun(
new development in the form of development cost charges (DCCs). DCC
used to help fund roads, storm drainage, water, sanitary sewage systems,
acquisition of park land (and also minor improvements to parks). DeCs a
used for financing those infrastructure expansions and improvements that
triggered by growth. DCC levels can vary among differing types of devel
among differing parts of the municipality. Under the current system, regil
districts can also have DCCs, though they are less common than ill muni(
• Borrowing: The Local Government Act requires that municipalities
books each year. Most municipalities borrow operating funds in the I
year and then pay this off when taxes flow in, starting in June. For a
as opposed to operating funding, a municipality has the authority tol
to an amount prescribed by the province. Before borrowing capital ft
municipality must pass a series of bylaws and either hold a referendu
residents the opportunity to force a referendum: i f 10% of the elector
petition, a binding referendum must be held; i f the referendum passe!
10% of the electors request a referendum, provincial approval would
before the money could be borrowed. These are essentially the same
to the Regional District under the current system.
• Budget shifting: Under the current system, the budgets of each Regi
function cannot be mixed and merged. For example, funds collected
department can't be used for land use planning. This makes it hard tc
to changes in service needs during the year, since each budget has be
municipality can shift money during the year in response to changed
as long as it stays within its overall tax and budget bylaw limits for ti
added flexibility can allow municipalities to react to emergencies am
circumstances much more quickly than unincorporated communities
Environmental protection
Municipal status would strengthen local authority for policies and bylaws
environmental protection in limited ways. Of course, municipal status doe
how, when or if environmental protection tools would be used. Most of th
can already be used, but by various bodies. For example, the Regional Dis
has the authority to pass and enforce zoning bylaws stipulating density, IN
other specifics of land use regulations that can affect environmental impac
approval authority already lies with the province.
Municipalities have some advantages in terms of "local" powers for envin
protection. Here are some specific comments.
• Tree cutting: Under s.923 of the Local Government Act, municipalit
powers to protect trees than regional districts have. Tree cutting regul
discussed in more length in the chapter on water quality.
• Official Counnunio, Plans: Both municipalities and regional district
OCPs, and the contents and scope of them can be virtually the same.
body that adopts a municipal OCP bylaw — that is, the municipal cow
only by local voters, whereas a regional district OCP bylaw needs thc
only of the Province but also approval from board members from oth
regional district and who are not elected by Sproat Lake voters.
• Coordination ofpolicies: Because it has more comprehensive and c(
powers, a municipality is in a better position to dovetail various polic
protection of the environment. For example, the same body — manicit
that administers the subdivision bylaw also administers road network
cutting bylaws, storm water management, zoning, and other services •
managed cohesively, can form an essential part of a community's env
protection strategy. Under the current system, various bodies and agencic
manages individual parts of the picture but none manages all of them, so
difficult to create and coordinate a comprehensive set of management pol
bylaws.
• Responsiveness: Under the current system it can be difficult to find fund:
remedy an environmental problem, to investigate an environmental issue,
a new program. Regional district service changes require the support o u r
members (in some cases a majority of the whole regional board), which n
some time. Furthermore, funds from one service budget (parks, for exam
be used to fund efforts in another service (drainage improvements, say), s
little flexibility in annual budget usage. In a municipality, there is much n
flexibility. Funds can be shifted from one department to another to meet t:
special circumstances. For example, part of a repaving program can be de
the money used for a more urgent purpose, like drainage improvements ai
slip. New services — like a study of a particular environmental concern —
initiated quickly and solely at the discretion of the local municipal officia
It is important to bear in mind that these advantages come as part of the whole
municipal powers and responsibilities. Individuals would have to decide if the
of the package outweigh the disadvantages and extra obligations of municipal
The Community Charter
The Community Charlet-, which deals primarily with municipalities, has receril
enacted by the province. It specifies a number of rights, procedures, regulation
opportunities for municipalities. Some significant items in the Charter are the
from the website of the Ministry of Community Services.
Fundamental powers: The Charter provides for fundamental municipal pow(
including natural person powers, the power to provide any service that the cou
considers necessary or desirable and the power to regulate and in some cases p
and/or impose requirements in relation to a number of broad areas. Areas in w
municipalities have autonomy to regulate, prohibit and impose requirements ai
• municipal services;
• public places;
• trees;
• firecrackers, fireworks and explosives;
• bows and arrows, knives and other weapons;
• cemeteries, crematoriums and the internment or other disposition of th
• the health, safety or protection of persons or property in relation to a n
specific things, such as trailer courts, manufactured home parks, and n
within the scope of the Fire Services Act;
• the protection and enhancement of the well-being of its community in
a number of specific matters, such as nuisances, refuse and unsanitary
• animals, except for wildlife;
• building and other structures, except standards that are, or could be de
the Provincial building regulation; and
• removal and deposit of soil or other material, except prohibitions
concurrent sphere.
Municipalities are also provided with powers to regulate businesses; to re
impose requirements for certain matters related to signs and other adverti!
and to regulate and prohibit in relation to the discharge of firearms.
Concurrent authority: The Charter provides for concurrent authority, w:
municipalities may exercise the power if the municipal bylaw is in accord
provincial regulation or an agreement between the municipality and the p
bylaw has been approved by the province. Areas of concurrent authority E
• public health;
• protection of the natural environment;
• wildlife;
• septic tanks
• standards that are or could be dealt with by provincial building re,
• prohibition of soil removal or prohibition of the deposit of soil or
making reference to the quality of the soil or material or to contar
Accountability: The Charter contains a number of public participation pi
• I t provides for a new alternative approval process where electors
that certain proposed municipal decisions be put to a vote prior to
council. This process applies to a limited number of decisions, pr
relating to long-term financial commitments. I f at least 10% of th
request a vote, a municipality must hold a vote i f it intends to pro(
matter.
• Most council and council committee meetings will continue to be
public. The Charter provides for the discussion of a number of im
meetings. Included is new authority to close a meeting for discus:
administrative tribunals, preparing annual municipal reports and r
negotiations respecting proposed municipal services.
• I t provides for public access to the minutes of open meetings, ator
number of other municipal records. It also requires an annual MUE
and a public meeting to present this report. The annual report pro\
and operational information related to the municipality. In additio
standard financial information as audited financial statements and
the value of permissive tax exemptions, the municipality must rep
services and operations and the progress made during the year in I
previously set goals. The report also sets Out future year objective;
measures that will be used in determining progress towards those
Citizens have the opportunity to provide submissions and ask que!
council during a council or other public meeting in which council
annual report.
Ethical conduct: F o r elected officials — including electoral area directors
rural system — the Charter sets out restrictions on:
• participation in council decisions i f a member of council is in con'
• using the member's office to influence a decision of an officer, en-
• using the member's office to influence decisions made by another bod
if the member has a financial interest in the decision; and
• accepting fees, gifts, or personal benefits that are connected with the p
of their duties of office. Exceptions to this include authorized compen:
campaign contributions and gifts that are received incidental to the prc
social obligations that normally accompany the responsibilities of 01E
such benefits worth more than $250 must be disclosed.
What need not change
A number of services and functions would not be affected by a change to mun
status.
• Existing Official Community Plan bylaw and zoning bylaw
The existing OCP bylaw and zoning bylaws of the Regional District wott
inherited intact by the new municipality. Municipal council could initiate
these bylaws — just as the Regional District can do now.
• Home owner grants
The annual home owner grant would not be affected by creating a munici
2006, resident owners under 65 qualified for a maximum grant of $570, p
grant does not reduce their net tax below $350; those 65 and over qualific
maximum grant of S845 provided it does not reduce their net tax below S
Property taxes on a typical home ($300,000 assessed value) are high mot
full grant levels are already being used up. These same full amounts wolf
available under municipal status.
• School taxes
The community is part of School District 70, which includes both munici
electoral areas, and its participation in the current school system, ineludir
property taxes, would not be affected in any meaningful way by a change
municipal status.
• Hospital and Health Services
As with schools, becoming a municipality would have no meaningful imj
health services or funding,
• Assessnzent Authority and Municipal Finance Authority
All taxpaying properties in BC contribute to these two provincial agencie
uniform set of tax rates across the entire province, and municipal status ‘N
change this. Property assessment would continue to be the responsibility •
Assessment Authority, just as it is now. The Municipal Finance Authorit
continue to be the long term borrowing agent for the municipality just as
for all regional districts and municipalities (except the City of Vancouver
• Alberni-Clayoquot Regional District wide-area services
The community would still participate in these wide-area services providi
ACRD, like 911 emergency response, regional parks, solid waste manage
others.
* Postal Service
Postal service would remain a federal responsibility. Municipal state
effect on the postal identity, the postal codes, or the mail delivery its
• Hydro, Telephone, and Cable TV Services
These services would not be affected by municipal incorporation.
• Social Assistance
Responsibility and funding for various social assistance programs w4
from the current provincial-federal agreements. Local governments municipal — do not pay into these services.
• Ambulance Service
This is a provincial service and would not be affected by municipal i
6. Water Quality
Introduction
Water is considered one of B.C.'s most precious resources, yet British Columl:
30% more water than the average Canadian. All water in B.C. is owned by the
behalf of the residents of the province. The provincial government has created
of legislative tools to help ensure that all British Colombians have equitable ac
safe and reliable water for personal and domestic purposes. A t the same time,
of the natural environment, including aquatic habitat, is another critical objecti
province.
Water quality is one of the main issues that has prompted the residents and
owners of the Sproat Lake area to examine the feasibility of municipal status.
key questions being asked is, "Would we have more control over water quality
if we incorporated?" This question cannot be answered by a simple "yes" or"
are a great number of variables or conditions that have an impact on who has
over which aspects of any one particular issue. In many instances, there is no
• j u r i s d i c t i o n a l authority.
The Ministry of Health (MoH), the Ministry of Environment (MoE), the BC H
Authorities (such as VIHA, the Vancouver Island Health Authority) and the 1,,
Government Department of the Ministry of Community Services work togethc
legislation such as the Water Act, Water Protection Act, Drinking Water Prole
Drinking Water Protection Regulation and Groundwater Protection Regulatio
authority over specific issues is given to local governments through the Comm
Charter and the Local Government Act.
In this section of the study, we look at the various sources and bodies of water
agency has jurisdiction under the current system (unincorporated area in the A
Clayoquot Regional District) and under municipal status.
Drinking water
We have broken the discussion of drinking water into three components:
(a) Surface water for individual use
(b) Well water for individual use
(c) Community water systems
(a) Surface Water
Surface fvuter supply: Most the residents of the Sproat Lake area — in particul
who have homes on the lakeshore — draw their drinking water from the lake.
Homeowners adjacent to the lake have placed pipes Out into the lake and purn
their homes.
Under the current system, authority to divert and use surface water, or wa
lake or watercourse, is obtained by a licence or approval in accordance wi
requirements of the Water Act and the Water Protection Act. Application
FrontCounterBC, the Integrated Land Management Bureau or the MoE. A
Water Manager or the Comptroller of Water Rights within the Water Stev
Division of MoE will review the application, the potential impacts and th(
water, and will grant or refuse the licence.
Changing to Municipal statue would have no effect 0
the authority or the procedure for obtaining water
lake or watercourse.
Surface water quality: The quality of water in a lake or watercourse is nc
monitored on a regular basis unless it forms part of a watershed serving a
population or there are potential threats to the watershed. I f either of these
were to exist — and an available "partner" could be found, perhaps in the f
community group — then the Water Stewardship Division can undertake a
monitoring program. A water monitoring program is usually for an initial
period, and establishes objectives for the watershed. I f the objectives are r
would subsequently be monitored only once a year. I f it were discovered t
objectives had not been met, investigations could be initiated that would d
alternatives for the watershed.
Recently general water quality and bacteriological concerns expressed by
prompted the Water Stewardship Division to conduct water quality testing
Lake. Based on tests done in the spring and summer of 2006, when more I
were examined, the water quality was good (less than 1.0 fecal coliform e
millilitres of water). More recent tests suggest this may no longer be true.
In Sproat Lake, which has deep, cold water with strong circulation, aquati,
considered to be more sensitive to negative impact than is drinking water.
the lake vary up to 15 feet from summer lows to winter highs, adding to th
shoreline ecosystems. A water quality monitoring program for the Sproat
,River/Stamp River system will likely be initiated within the next two to th
Changing to municipal status would have no etre
this monitoring program as it can be done in •
regional districts or rramicioallties.
(to) Well water
Well water supply: A private homeowner does not have to apply for perm
well on his or her property. However, homeowners should use certified w(
well installers and should request that their well be registered with MoE,
tue wotild have
ividuals e
effect
reqoi
autho 0
In
Well water quality Under Section 23 of the Drinking Water Protection Act, t
prohibition against contaminating drinking water. I f someone believes their w‘
being contaminated and the source of contamination is on their own property,
obligated to remedy the situation. I f the homeowner believes that his domestic
being threatened or contaminated by a source not on their property (for examp
neighbour's failed septic system) they may request an investigation. This woui
undertaken by the local VIHA Drinking Water Officer, who can investigate ar
contaminator to stop using the septic system and repair it.
Changing to municipal status would have no effect on
the process of investigating well water quality. The
authority of the Drinking Water Officer is the same in a
municipality as it is in an electoral area
(c) Community water system (bulk water)
Bulk water supply: A water supply system is defined as a domestic water sys
serves more than one single-family residence. The term "bulk water" is being
define water that is provided to more than one household through a water supr
A water supply system can be owned by a regional district, a municipality or o
entity. This option for providing domestic water is most often used to serve tat
populations or in cases where small lots may not have adequate space for both
wells and septic sewer systems.
It must be noted here that a community water system is not required for Sproa
that becoming a municipality would not change this. A decision to create a coi
system would be based on health and water quality concerns and these are inc
of mun icipal status.
Under the current system, the regional district could consider the development
supply system for Sproat Lake i f it feels that reliable, safe drinking water is nc
to a number of local residents. The regional district could create a "local servi(
(LSA) consisting of only those properties within the water service area (there
LSA now, for fire protection). This would be done by adopting a "service area
establishment bylaw" outlining what the service is, how it will be delivered, w
benefit from the service, the maximum amount it will cost, and how the costs
recovered. Voting on this bylaw would include the entire regional board, inclu
directors from outside Sproat Lake. The bylaw also requires the assent of the r
owners in the proposed service area, as they will bear the cost of the service. 11
service area establishment bylaws must be approved by the provincial Inspect(
Municipalities. Once an LSA has been established, the full board continues to
involved for certain functions (adopting budget bylaws, for example).
Under municipal status, the process would be similar, though not exactly the s
under the regional district model, the benefiting users, rather than all constitue
pay for the service and their assent must be obtained. Council must adopt an L
but only members of the local municipal council vote on this, and the mu;
not need the approval of the province to proceed.
a.•,..paapp.#,01ptpopcipt.alor:•:pataojiablv•a•ip.9•01.61L.Inity,
,:.0yster).•y*T10:****:•04)000.1:1i,4.10.071qto.:••04.fOr
•••••••••,_uidpaIifles,•••,•,.••,•including obtaining the assent.••of the,••
ropaniap,•,1110vOtitit be payingde.' .:0•Atvato;akatato,.
wever, under the reglonaidustnct *-616001;••apprbyala..
moutside 0 ) 0 , • • p r p y i r i c a • •
•mofficials:(006 .• ••'• voters outside:••Stittiat Lake),
•.0*:fro.m the locallyelecteci:.170nrildiriM•OjUneV':;;%I.:'''
Bulk water quality: Protection of the quality of water delivered by a bulk
or water supply system is legislated under the Drinking Water Protection
governs drinking water from source to tap. Potable or drinking water mus
Drinking Water Protection Regulation to be deemed safe to drink and fit
purposes. As noted above, jurisdiction for public health entails eooperatio
Ministry of Health, Ministry of Environment, Vancouver Island Health A
course, the local government and property owners.
When a watershed forms the source of a water supply system, the water q
regularly by the local government within whose jurisdiction it is located,
regional district or municipality. I f the watershed for a municipal water sy
outside the municipal boundaries, there must be an agreement between th
district and the municipality dealing with all aspects of the delivery of the
including monitoring.
The Drinking Water Officer has the same authority and jurisdiction in FC1E
supply systems regardless of whether they are located within a regional di
municipality. Under s. 3 of Part I o f the Drinking Water Protection Act, F
Medical Health Officer serves as the Drinking Water Officer i f the Minist
not appointed one (the minister may appoint additional officers, too). A pi
regulation makes the DWO responsible for public health under Act.
There is also the matter of land use regulation, which can have a great effc
quality. Both regional districts and municipalities have three main tools in
Official Community Plan bylaws; zoning bylaws; and subdivision servicir
bodies have similar authority for zoning bylaws, but regional district OCP
the approval of the Province whereas municipal bylaws do not. Also, a reE
OCP bylaw requires the approval of directors who are not elected by Spro
Municipalities are responsible for road and drainage services, and subdivi1
whereas regional districts are not (these are provincial responsibilities in e
Under municipal status, then, the body responsible for a community water
responsible for several other, related services that can impact water qualit)
Both regional districts and municipalities have similar
authority to protect water quality, though a municipality
need not obtain as much outside approvals. While both
bodies can regulate land uses with zoning and OCP
bylaws, municipalities operate more independently (that
is, fewer outside approvals are needed) and are better
positioned to coordinate other community policies (like
drainage works and subdivisions) that might affect water
quality.
Water activities and uses
Water quality can be affected by uses or activities on the water or by uses or a
adjacent and nearby land. Many of the water activities in the Sproat Lake area
recreational in nature. Even activities such as swimming, sailing, board-sailint
canoeing and fishing can impact water quality. Other activities that are percei\
greater threat of contamination i f not controlled, regulated or carried out cardf
the following.
Motor vessels
Motor vessels, including powerboats, houseboats and all motorized, navigable
are regulated under the Navigable Waters Protection Act by Transport Canada
Houseboats are in this category.
As at Sproat Lake, houseboats are a common sight in the Sicamous and Salmc
areas where they are rented out to vacationers. There are six or seven housebo
operations within the municipal boundaries of Sicamous. The location of thes(
operations' bases can be controlled by zoning and business licences. Control i
this area as the Shuswap Lake system has been declared a sensitive water bod:
federal government. The municipal zoning bylaw requires that all houseboats
to have black-water holding tanks, and all operators are to provide pump-out f
The houseboats are all removed from the water and stored during the winter.
Under the current system at Sproat Lake, both houseboats and float-homes —a
temporary or seasonal residences on a boat or vessel — are permitted uses in w
zoned Waterfront Residential District (W-2). Within the W-2 zone, conditions
include requirements for on-shore toilet and shower facilities and for sewage (
facilities. The ACRD zoning bylaws do not include any W-2 zones at Sproat
Zoning is discussed further in a following section.
Float-homes
Float-homes and recreational float-cabins are generally stationary and attache(
upland area by some means: docks, wharves, walkways, pipes, telephone lines
lines, etc. In most jurisdictions, float-homes are treated more like a dwelling tl
and may or may not be a permitted use on the foreshore.
Local government (both regional districts and municipalities) can regulate
of these. For example, in order to address concerns of potential pollution
conformance with the Building Code with respect to float homes or live-a
District Municipality of North Cowichan has a Float Home Standards Byl
prohibits float homes within municipal boundaries that do not meet the pr
and the zoning bylaws.
The powers to regulate water activities and uses are
essentially the same for municipalities and regional
districts. Neither body has meaningful powers over
watercraft and both have some powers to regulate la
based uses like floating homes.
Upland activities and uses
Activities carried out on the shore adjacent to and upland of water bodies
of water contamination. Potential risk is most commonly associated with I
uses.
Septic disposal systems
One of the most frequent sources of contamination is failed septic systeim
tanks and tile fields that serve as sewage treatment systems for single-fam
well i f properly maintained. I f not maintained, however, the wastewater 'ft
overburdened systems has the potential to contaminate adjacent propertic
bodies.
The installation of septic systems is controlled by the provincial Sewerage
Regulation, under which there is a requirement for installers to be certificc
system has been installed, there is no legal mechanism requiring the M l l e
family homes to monitor or maintain the septic system. There is, however
earlier, a prohibition against polluting drinking water, Thus the monitorirq
systems is usually reactive, in response to a complaint of contamination c.;,
well water, for example.
Note that, as with a communio) water system, there is no requirement that
must be installed at Sproat Lake, and the ability to use individual septic s
not be affected by municipal status. Sewer systems are needed because of
water qualio) concerns that are not related to municipal status.
tic tank man
Uider the
unicipali
•abie Instittite,a senn 03
tanks f i e l d s
egionalPlolt.OfoOtto:.:c.!...i.,ot
lat6'60
WOE—this•
oweve
potential au
41;:q1.01610(4Ei
to do This
'Nes ga
Tree-cutting and logging
In some cases the buffer area separating logging activities and water bodies is
adequate to prevent sediment draining downhill into the water bodies.
I f the logging activities are being carried out on Crown land, the Ministry of
the regulatory authority. Similarly with logging operations on privately-owned
is designated as Private Managed Forest Land under the Private Managed For
Act, provincial jurisdiction supersedes both regional district and municipal aut
To control logging on land that is not designated as Private Managed Forest Lz
government may attempt to utilize either development permits or tree cutting
bylaws (discussed below).
Neither regional districts nor municipalities can prohibit
logging on lands designated as forestry by the provincial
government.
Storm water and surface runoff
Storm water consists of rainwater and other sources of water that runs off imp
surfaces such as paved roads, parking lots and building rooftops. Runoff from
roads sometimes contains oil and gasoline, which can contaminate adjacent
water bodies.
Under the current system, all roads in the Sproat Lake area are the responsibili
Province (specifically, the Ministry of Transportation). There is no legislation
or control runoff from provincial roads onto private property. The Ministry's C
responsibilities are limited to drainage on the roadways themselves. Regional (
empowered to establish a drainage function — usually, but not always, as a locz
area— to plan and manage runoff more comprehensively than just on roadway
relatively few regional districts do this). Such an LSA would require the assen
affected property owners; (b) regional board directors from outside Sproat Lak
the Province.
In a municipality, local roads (but not provincial highways) are the responsibil
municipality. The municipality is responsible for setting maintenance standard
funding the costs of roads. Drainage planning and drainage works are routine I
municipal operations. The costs of planning and managing drainage works is a
always part of the overall municipal budget rather than a local service area buc
Municipalities can levy a development cost charge (DCC) against developers
road and drainage works.
Logging On provincially-designated laritiOtarft be Controlled by.:either
:i4onatdiVfct:.pe_rri(101ClOplitieS4::MIOntOttiatSiatu$ would require ',Moi
local attention to drainage planning and works than under the current
. ..:.,. . ' , ' : •••••.
:.systerni(thpugili.this•••:w:puldpeeA0.•,•be unded
.. . , :by. the
:MOIr001"' I. .0;* a*t#:#0.,00.e:11?0*0.)1.V
* • 01.nigo,ipionninginto•$.4.
tools,•
.,„_.00.0.1.0
.„!
•••4:0-.•- ifg.Y4*••••:; • t o*,0011!•yoriolocollyHwiolded
.:6iii.f.1.70ensive set of ihrliOhl a n t o pto0edotop*t.•0010..Affooti
Local government tools
In addition to the regulatory tools held by provincial and federal agencies,
government also has tools at its disposal. Under the Community Charter a
Government Act, municipalities and regional districts both have broad aut
array of services that their respective council or board considers necessar)
though the Charter gives municipalities more latitude and autonomy than
regional districts. These services may be provided directly by the local go
through another person or organization. In providing services, local gover
themselves be subject to other provincial rules, such as the Waste Alanagc
Drinking Water Protection Act, etc.
All local governments have specific powers to regulate in relation to land
Under the Community Charter, municipalities have more flexible authorit
regulatory power in 16 broadly-worded spheres of jurisdiction or regulato
(such as public places, trees, animals). In five of these spheres (the concu
authority spheres, including public health, protection of the natural enviro
building standards), municipal authority is subject to provincial involvem,
Some of the tools available to local government are described below.
Official Community Plans
Under the Local Government Act, an Official Community Plan (OCP) can
by both municipalities and regional districts, and one is in place now for
The OCP provides the longer-term vision for the community and is a state
objectives and policies to guide decisions on planning and land-use mana
the area covered by the plan. I f a local government chooses to prepare anc
there are requirements for statements and map designations for specific m
the Local Government Act.
Under the current system, the regional district has defined the Sproat Lakt
developed an OCP for the area, The current OCP, adopted in February 201
community vision, goals, objectives and policies intended to guide land-u!
development and related servicing requirements. Successful implementatj
policies entails the creation of zoning and subdivision bylaws, the enforce
the issuance of permits (such as development permits and building permit
cooperation of landowners and users, cooperation and collaboration with
government bodies and agencies (such as MoE, MoH, Fisheries & Oceans
Policies in the OCP include the following:
• Aggressive enforcement to prevent residential sewage disposal, pleas
boat/houseboat/float-home sewage, grey water and other pollution dis.
lakes;
• Ensure the development of a pump-out station at Sproat Lake;
• Minimize runoff into the lake from land clearing;
• Work in partnership with the community and the VIHA to establish a
of septic systems and the rectifying of malfunctioning systems;
• Press the provincial government for local input into decisions affecting wa
permits where these affect lake or river water levels;
• Work with the Province and the TFL44 operator to document the locations
and impact of spontaneous wilderness camping on Sproat Lake, including
of illegal garbage and sewage disposal;
• No support for any planned development that increases the number of hou
Sproat Lake.
lithe Sproat Lake area were to incorporate, the new municipality would inheri
existing OCP, zoning, subdivision, municipal ticketing (enforcement) and othc
bylaws in effect from the regional district until such time as the municipality a,
amending bylaws. The municipality has the option of contracting the implcmci
the bylaws to the regional district or to a planner or consultant, or hiring the nc
personnel.
Both municipalities and regional districts can adopt and
amend an OCP. A regional district OCP for part of an
electoral area requires the approval of both the Province
and ACRD directors who are not elected by Sproat Lake
voters.
Zoning
Where a local government (regional district or municipality) has adopted an 0
must be in conformance with the land-use designations in the OCP. A local go
may zone all land and the surface of water within its boundaries (as the ACRD
Zoning and municipal ticketing/enforcement bylaws are the tools that enable ti
government to enforce land use regulations and restrictions.
Also under the current system, the regional district has developed a zoning by)
categorizes land and water use areas within the Sproat Lake area and specifies
uses in these areas. For example, the zoning bylaw distinguishes between area
be used for marine recreation, waterfront conservation, waterfront residential,
fuelling and marinas.
Subdivision
Subdivision approval is an area where a regional district's authority differs fro
municipality's.
Under the current system, the regional district can develop and adopt a subdivi
subdivision servicing bylaw; and it can review, comment on and recommend a
non-approval of a subdivision, but ultimate approval rests with the provincial !
Approving Officer (a staff member in the Ministry of Transportation).
Under municipal status, the Approving Officer is a municipal position, not a p
one. The municipality can appoint one of its employees as the approving offic
contract this authority to another jurisdiction or person. I t remains a statutory
and not a municipal position; by law, the Approving Officer is independent of
council; can call public hearings; and does not have to give reasons for ar
of a subdivision.
Either form of local government can include in a subdivision bylaw (or
zoning bylaw) the stipulation that future subdivisions will not be approve
are served by a proper sewer system.
Under the current system, the subdivision Approving
Officer is a prOvincial role, Under municipal status,: it
Municipal function. In both cases ; it Is.astatutorily
independent position.
a;
Bylaw enforcement and municipal ticketing
Infraction ticketing and bylaw enforcement is a tool that is available to all
governments, not just municipalities. In many cases, it is the only method
bylaws are adhered to. A local government must first adopt a bylaw that I,
elements of how ticketing will work in that jurisdiction.
Under the current system, the bylaw enforcement officer's role is to ensur
district bylaws are obeyed. Under the municipal system it is the municipzr
to be enforced. However, municipalities generally (but not always) devotc
resources to enforcement because they often have more bylaws to enforce
road bylaws that do not exist in regional districts).
Both regional clistr.icts and municipalities tiSit bylaw
enforcement and ticketing to ensure compliance
applicable
lo.cal bylaws-nMunicipalities
generally
ore
o
contract
out
this
service
d
evo
resources to thisrvcie s needed and do not have
hire their own staff. Development permits
The Local Government Act permits the designation of specific areas as "di
permit areas" (DPAs). Development permits may be required, for exampli
of the natural environment, its ecosystems and biological diversity or for f
development from hazardous conditions. Alteration of land, subdivision, c
development may not be undertaken within an area designated as a DPA
development permit has been obtained from the appropriate local governn
A DPA can be used to prevent the cutting of trees that have been identifiei
species, such as Garry oak or yew, or as forming a sensitive ecosystem. Si
cutting and land clearing can be prohibited by DPA in riparian areas, sens
areas, steep slopes or other lands where it is deemed that there would be a
erosion, sloughing or subsidence.
The regional district has designated DPAs on the Sproat, Somass and Stan
specifying that 30 metres from the top of bank be left undisturbed (that is,
development). Similarly no development is permitted in areas designated as CI
Areas.
The development permit tool is available to both regional
districts and to municipalities.
Tree Cutting Bylaws
Tree-cutting bylaws arc not intended to be used indiscriminately to prevent pr(
owners from cutting down their trees. Additionally, local government regulatii
interfere with "forest management activities" on lands designated as Private
Forest Land.
Both municipalities and regional districts have powers to regulate tree-cutting
forestry land. However, the municipal powers are far broader than a regional d
Under Section 923 of the Local Government Act, a regional district "may, by t
designate areas of land that it considers may be subject to flooding, erosion, la
avalanche as tree cutting areas". In these areas, the landowner would be requir
for a permit and, i f specified in the bylaw, would have to get a report from a qi
person, usually an arborist, certifying "that the proposed cutting of trees will n
danger from flooding or erosion". This authority could be combined with the (
of a DPA.
A municipality has much broader rules for controlling tree cutting. Under s.8(:
Community Charter, municipal council can designate tree protection areas, id(
individual trees for protection, and require the replacement of trees removed it
contravention of a tree cutting bylaw. There are some restrictions on these pm:
bylaw can't effectively prohibit uses permitted under a zoning bylaw (like a fo
zoning) and it can't control logging on land already approved by the Province •
as these provincial approvals supersede municipal authority. Also, a bylaw ca
development below the density allowed in a zoning bylaw. Nonetheless, the a
protect trees is much greater in a municipality than under rural status.
Municipalities have greater powers to regulate tree
cutting than do regional districts (though neither has
much control over logging on provincially approved
forestry lands).
Wafer supply system planning
As noted earlier in this chapter, local governments — both municipal and regio
decide to develop a water supply system of all or part of its jurisdiction. The I\
Community Services (MSC) supports the development of sustainable drinking
infrastructure with two types of grants infrastructure planning grants and cal:
—for the purpose of developing a water supply system. These grants — and pos
funding from the federal government —are available to both regional districts
municipalities.
Under the current system, setting the priority for a Sprpat Lake gr
application would be up to the regional board, Which May have to
consider it in the context ,of projects:In:other areas of the ACRID. 1
municipal status the decision to s u b * e grant application would
only the Sproat Lake Municipal council For both bodies, being ell
for grants does not guarantee grant kinding:. Finally, there is no
community water system•in place at SOniat Lake and creatinge
:.municipality would not trigger the heed for .6.0ii146 this:topic is fbi
relevant to the matter of municipal status.•,
Storm water management
Integrated storm water management planning is an important tool that can
comprehensive approach to dealing with hydrologic and environmental cc
water management objectives can be integrated into local government tan
and decision-making by incorporating them into the vision and goals of
Local governments can use a range of regulatory tools to support integrate
management practices, The Local GOVerritnent Act gives municipalities th
implement storm water solutions such as:
• Bylaws that limit impervious surfaces and encourage infiltration;
• Alternative low-impact subdivision bylaw standards;
• Bylaws that prevent the release of contaminants into storm drains;
• Watercourse setback zoning, bylaws;
• Development permit areas that protect watercourses and floodpiains.
Under the current system, the regional district may employ some of these
region-wide basis, such as watercourse setbacks and development permit
it is difficult for a regional district to adopt storm water management plan!
area that is often rural in nature and much of which is Crown land, over w
regional district has no jurisdiction.
and
nht 1
d e v o t e more ttrr6..rirPrnl%1:: storm. d u ewe
artP
dmonmunicipality
responsibilities4gilthat
ae
to
tnnsth
.tea
a
P
Y
e
P
;rIt° had:
!ia
°:v,t°Igirwegit!lo:nreastpdeiscttritofc°t.t41)iasdiadaddtra8
Sewage and wastewater management
Both forms of local government have authority for establishing sanitary se
for the community. However, there is no community sewage in place at SI
changing to municipal status would not require one to be installed, so this
relevant to the current question of municipal incorporation.
Septic
„.,...
„ „ ....... ..... • .••••... .........„......:, .:„,.:..,...,..,.. ..
Y';tarik..manegerpei:gprOg*4
•et •.
CommuCharter,
ntiy. .•t a d )
m i g h t be:sa.,9?:1P:01
1.ce to meet r and regulate:se d tanks, tile fields, etc Regior
•••alun
di di. do oavelolo .0. potential04.,.,n.c.:•••... e.are currently
districts
'
; 1yeai ge
-14.fitiit'6i-i'•An riiii.A.iiiiiiiiiiiii,iii•Viiii
7. Regional District Taxes
Sproat Lake is part of Electoral Area D of the Alberni-aayoquot Regional Di!
(ACRD). While Area D's total area is significantly larger than Sproat Lake, th
community contains virtually all the residents of Area D. Area D has its one di
the ACRD board, elected every three years by the voters of Area D.
Sproat Lake would still be a member of the ACRD, but it would rely c
the ACRD for fewer services than under the current system. There we
be a separate ACRD director for Sproat Lake (just as there is now)
The ACRD services and functions at Sproat Lake are broken into two main tyj
• Wide-area services that would not be affected by creating a municipality,
community would continue to participate in them, and pay ACRD taxes fc
the same basis as now. The only difference is that under municipal status,
provincial tax collection fee would no longer apply. This is because the mi
becomes the tax collector and the costs of this arc part of the general admi
budget rather than a separate charge.
• Local services at Sproat Lake that would become a municipal responsibili
Lake would no longer be part of these ACRD services and would not pay
taxes for them. Instead, they shift to the municipal budget and become par
general municipal tax system. The municipality would set the budget prioi
service level's for them.
The ACRD tax rate would fall as functions shift from the ACRD system to thc
system.
Figure 31: T a x Rates for ACRD functions (2006 levels)
Type
of tax
Wide-area functions
Assessment-based taxes
8 //000
Parcel tax
Port Alberni arena funding
Local functions:
S / /000
Fire dep't (excludes parks)
S / /000
Planning, M g insp., others
8 / /000
Library District tax
Sproat Lake Community Assn Parcel tax
Current Municipal
systemA s y s t e m
Comment
$0.516
$47.79
$0.490
$45.41
Lowered by tax collecti
Lowered by tax collecti
$0.940
$0.460
80.229
$12.96
$O
$0
$0
$0
Shifts to municipal bud
Separate tax for Librar
AIncludes 5.25% provincial tax collection fee
The following table shows the details of the changes in ACRD tax requisition!
2006 budgets and services. Note that the Province has not completed its detaill
analysis to refine exactly which minor services would shift and which would r
example, most grants in aid are assumed to remain regional functions with Sill
continuing to participate. These assumptions would be confirmed by the Provi
matter proceeds further.
Figure 32:
ACRD Services and Functions at Sproat Lake (2006 levels)
Who participates?
Under the current system
Tax on a
Tax
residential
Type
rate*
of tax"
property--
Total, b
munir
boun
Functions that would not shift:
Admin + general government
E 911 telephone
Alberni Valley emergency plans
Custom transit (Handi-Dart)
Alberni Valley airport
Alberni Valley landfill
Regional planning
Regional parks
Grant in aid - Alberni Valley
Grant in aid - McLean Mill
Port Alberni arena (parcel tax)
All ACRD members
All ACRD members
Port Alberni, El,D,E,F
All ACRD members
All ACRD members
All ACRD members
Areas B,D,E,F
All of Area D
Functions that would shift to a munic patity:
Electoral area administration
Building inspection
Animal control
Area D
Rural area planning
Area D
Grant in aid - Sproat Lake
Local service areas:
Most of Sproat Lake
Sproat Lake community park
Most of Sproat Lake
Grant to SLCA (parcel tax)*
Most of Sproat Lake
Van. Island Library District
Large part of Van. Is.
$0.1242
$00533
$0.0124
$O 0207
$0.1028
$0.1116
$0.0240
$0.0066
$0.0172
$0.0090
$O 0304
$47.79
Subtotal
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
Asaint
Asmnt
Asmnt
Asmnt
Asmnt
Parcel
$37.26
$15.99
$3.72
$6.21
$30.84
$33.48
$7.20
$1.98
$5.16
$2,70
$9.12
$47.79
$201.45
$48
$20,
$4
$8
$39,
$43,
$9,
$2,
$6,
$3,
$11,
$44,
$242,
$0.0506
$0,0698
50.0002
S02688
$0.0025
Asmnt
Asmnt
Asmnt
Asmnt
Asmnt
$15.18
$20.94
$0.06
$80.64
$0.75
$18,
$25.
$0.9395
$0,0659
$12.96
$0.2289
Subtotal
Asmnt
Asmnt
Parcel
Asmnt
$281.85
$19.77
$12.96
$68.67
$500.82
$299,
$25,
$11,,
$84,
$564,!
$702,27
$807,:
Grand total, all ACRD taxes in 2006
* Incl. 5.25% provincial tax collection fee
' T h e s e
$98,
shift away from the ACRD and become mu
AAsmnt = Ta x rate per $1000 of assessed property value " B e c o m e s separate tax (not part c
—Based on a 6300,000 residential property (2006 asmnt)
*
*
Commu
ELFinancial Principles
Constant 2006 dollars and 2006 service levels
All the financial impacts are stated in year-end 2006 dollar values. This is nee(
because we don't have a complete set of 2007 numbers yet. Note that if a refer
held, all the impacts would be updated using 2007 data.
The use of 2006 figures includes 2006 assessment data — that is, the property a
that were used when determining the 2006 taxes on each property. This data cc
the BC Assessment Authority, the provincial agency with responsibility for as
valuations in both municipalities and electoral areas. Property assessments arc
market prices, with a time lag. The realty values underlying the 2006 assessmc
fact the values observed in July, 2005. At the time of this writing, then, the vat
2006 tax calculations are almost two years old.
Property assessments have risen steeply (over 70%) in the last two years. Whil
this is due to new construction, the vast majority is due to higher real estate va
figure below shows the change in average residential property assessments bet
and 2007,
Figure 33: A v e r a g e Residential Property Assessment at Sproat Lake
$450,000
$400,000
$350,000
$300.000
Total residential assessments divided by total number
of residential properties (including vacant lots)
$250000 •
$200.000 •
The average value ha
72% in the last 2 y(
$150,000
$100,000 i
650,000
2000
2 0 0 1
2 0 0 2
2 0 0 3
2 0 6 4
2 0 0 5
2 0 0 6
However, the use of 2006 tax base figures is still valid in this study. This is be
property tax rates are adjusted down in response to higher assessments. For ex
provincial rural tax rate has fallen from S1.03 in 2003 to 50.700 in 2006. Thus
jump in a home's assessment does not translate into a 25% jump in its tax bill.
reasonably be expected that 2007 taxes will be at least comparable to the 2006
(say, within I O N . Measuring the impacts in 2006 terms would thus be su
basic decisions about whether or not to request a referendum.
A normal year
It would be misleading to present the tax impacts based on the first few y(
municipal status because the first few years are not typical, for three reasc
• There are short term start-up grants over the first three years;
• There are initial infrastructure requirements that must be faced in the
and,
a The full costs of municipal road responsibilities wouldn't materialize
year.
The tax impacts should be stated in terms of a normal year, after all the tri
have been taken — but still stated in terms o f 2006 service levels and &VIA
Policing
An exception to the "2006 data" principle is policing. In 2006 there was n
policing tax, either under the current model or the municipal model. How(
Province has announced that a new policing tax will be implemented in 21
municipal rate will be slightly higher than the unincorporated rate. Becatv
difference, it is appropriate to add this soon-to-be-introduced tax to the ta;
Failing to do so would mask one of the financial differences between the t
Community growth
The use of 2006 as the base year refers not just to finances but also to ser\
population. Of course, growth and development will occur in the common
not factored into the analysis. To do so would require difficult assumption
future growth levels and (b) future service levels to meet the needs of grm
confident basis for choosing these assumptions, so factoring in growth wo
complexity and uncertainty over the tax impacts. Even i f it were done, the
easy way to separate the impacts of growth from the impacts of municipal
only practical approach is to present a snapshot of impacts using 2006 as t
Apples-to-apples budget items
The costs of a number of services and functions for a new municipality ea
with confidence because they are already being provided in the communit
wouldn't be affected by municipal status. The direct operating costs of fin
are a good example of this. They will no doubt change over time but the C
more or less the same under municipal status.
Some other figures can be used with confidence not because their future c
but because whatever they are, they would be precisely the same under bo
status and municipal status. The region-wide functions of the ACRD are e:
their costs will certainly change over time but Sproat Lake's share would I
whether or not it is a municipality.
Not apples-to-apples
Some municipal budget items have no direct counterpart under the current sys
these have to be estimated based on experiences in other municipalities (after
unique Sproat Lake features), as well as on informed judgment and assumptio
course, it must be stressed that municipal spending priorities would be up to tl
municipal council.
Budget items that require estimation include these.
• Municipal council costs, including remuneration for council members.
• General administration costs, like staffing and office operations.
• Development services, including building permits and inspections, commt
planning and zoning, and subdivision application processing.
• Bylaw enforcement services.
• Most road maintenance costs (we have an estimated cost of road maintena
the current system, though it does not include a number of functions that a
municipality would be responsible for).
• Spending on infrastructure, like municipal offices and road improvements
• Certain provincial grants and other funding, like the Small Communities g
gas tax transfers.
Some of these budget items can be calculated according to formulas but other
them, we need to look at other comparable municipalities for insight into reas(
spending and revenue items. Of course, every community is unique and there
existing municipality whose spending levels can be applied directly to Sproat
of the important characteristics that shape the uniqueness of Sproat Lake are tl
• Very low level of urban services (no water or sewer, for example)
• Generally large lots and long road lengths.
• A much larger housing base than suggested by the resident population.
• No civic core or commercial center.
• Immediately adjacent to a regional center (Port Alberni).
The spending priorities and service levels in Port Alberni are not useful for thc
Lake case, given the substantial differences in both built form and size. Some •
municipalities whose spending levels can be examined to help refine estimates
Lake, especially for general administration costs, are listed below.
Figure 34: Municipalities for Comparison with Sproat Lake
BC Munici ali
Tofino (1,655 pop'n)
Uduelet (1.487 pop'n
•
Chase (2,409 pop'n)
Reason for cam arison
Same region; similar
pop'n; tourism base
Same region; similar
oop'n; tourism base
Similar pop'n;
seasonal/tourism base
111Olp.ndS f1,90
Similar pob'n: rural
Community
Bowen Island (3,362)
Rural community;
seasonal/tourism base
Rural community
Metchosin (4,795)
•Weakness in corn sar
More urban; more reJ
"l.MOrp tirban;. more re•:
More urban
pt seasonal
Larger population
Y•L•araer DODYI: not se--
In general terms, the more rural the community, the more suited it is as a !
Lake municipal projections.
Provincial short term assistance
The Province has a number of short term assistance programs that it exten
municipalities. They are designed to ease the transition to municipal statta
the new municipality to start with more resources and fewer responsibiliti
Province has not yet formally identified the specific levels of assistance ir
Lake case; this would be done i f a referendum is to be held (and done pric
discussions leading up to a referendum). Here are some of the main featur
assistance program that are factored into the financial impacts.
Per capita grant
It is assumed the standard $150 grant would be given to Sproat Lake (thot
Province could provide more than this). Based on roughly 2,000 full-time,
mean about $300,000. The funds are usually paid by installments within tl
years. There are no specific restrictions on the use of this funding, and it
would be used to help fund the infrastructure works needed in the early ye
Free road maintenance
The Province routinely has its contractor continue to maintain the roads, a
for the first five years. (Note that this refers to routine maintenance, not Cr
or remedial improvements.) This frees up the municipality from having to
manage and administer this service during the start-up phase. It can also g
significant funds, indirectly. Levying the "normal year" tax rate —that is,
transitional measures and grants have been accounted for — from the very
municipal life would generate surplus taxes in the early years, when road (
the municipal budget (taxes could be lower in these early years but would
jump when the full road costs materialize). These surplus taxes would be t
helping finance short-term infrastructure improvements like a municipal h
improvements. The Province has estimated that the value of this work is a
per year (assuming the whole OCP area), or $1,250,000 over five years.
Note that it is expected that the Province will continue to be responsible fc
as is its standard practice for arterial highways like this one.
Rebate of the rural tax
The Province can rebate to a new municipality a portion of the rural taxes
properties in the municipal area just prior to municipal incorporation — eitl
total i f the incorporation date is in the first half of the year, or 50% i f it is
half. This is discretionary funding. While the Province is not committed tc
funds, it has done so in all recent municipal incorporations, and it is reasot
a Sproat Lake municipality would also receive it. Assuming an incorporati
June 30, the rebate would amount to about $250,000 based on the 2006 rui
Core Area. A portion of this would be in arrears, so the municipality wont
amount immediately because it would be responsible for collecting any outstal
amounts, but it would eventually realize the full amount.
Administration
If a referendum is held and passes, the Province can, before municipal incorpc
provide an interim administer to help get the community ready for the transitic
particular, after the elections for municipal council the interim administrator IN
prepare the bylaws and documents needed to initialize the municipality's open
well advise the new council on procedures, requirements, and protocols. This i
born by the municipality, but the Province often provides a short-term grant to
municipality to offset this. Because these early-day expenses are covered by a
are not included in the budget projections; it is assumed that the extra costs of
started would be financed by the grant, not by taxes.
Road improvement funding
The Province does not have a specific program to help a new municipality fun
spending on immediately-needed road works like rehabilitation and repairs (th
program ended about a decade ago). This means that short term improvements
roads inherited from the Province must be financed by the new municipality. I
would have several short-term funding sources related to its newness as a mun
the per capita grant would provide S300,000; the rural tax rebate could provid(
$250,000; and the cost savings from the five-years of free provincial road mail
could be applied to short term infrastructure works.
Other financial assistance programs
There are numerous provincial funding programs available to municipalities, many of
restricted to specific and conditional uses, and some of which have time- or amount-I i
funding limitations that mean they are not assured. Examples include the following.
• The Towns for Tomorrow program can provide money for infrastructure i
municipalities.
• The BC Spirit Square can help fund outdoor civic squares and spaces.
• LocalMotion funds can be used for trails, paths and other initiatives prom(
physical fitness.
• The Infrastructure Planning Grant program offers funds to help improve o
plans that include capital asset management plans, community energy plat
integrated stormwater management plans, water master plans and liquid w
management plans.
• The Canada/BC Infrastructure program funds local government infrastrue
upgrades and initiatives.
• BC Community Water Improvement plan can provide funding for commu
help meet safe drinking water guidelines and regulations.
• There is a program to share the provincial hotel tax with resort eommuniti
qualify though it is most unlikely that Sproat Lake would meet the criteria
There are two key programs, however, that are much more certain for local go
Small communities grant
All smaller (that is, under about 15,000) municipalities receive an annual
provincial Small Communities Grant program. A Sproat Lake municipaii
received $87,000 in 2006. However, the Province has started a program t(
raise this, and by 2009 amount would reach about 5349,000. There are no
as to how these funds are used by a municipality.
Gas tax transfer
tinder the federal-provincial gas tax transfer plan, a Sproat Lake municip
receive $138,000 per year by 2009. Funds must be used for programs or i
that provide an environmental sustainability benefit, like transit or sewag(
Because these funds can't be used to lower taxes directly — they must be
special projects rather than a general tax reduction — they are shown as rm
and expense items and so have no effect on the tax rate.
9. Municipal Infrastructure
The new municipality would require some infrastructure works in the early yez
as on-going requirements for capital projects like continued road repairs, equir
special projects.
Near term: Municipal offices
The municipality would need offices. The size and configuration would be up
municipal council, but the offices and associated working space would likely r
in the neighbourhood of 200 square metres, and council chambers for the mon
monthly public meetings would need to be somewhere around 100 sq tn.
The offices would not have to be in a municipally-owned building; they could
leased space. However, it is doubtful that adequate leased space could be obta
Sproat Lake. To be conservative, it is assumed here that the municipality wont
first several years, need to construct a building. A total budget allowance of SI
including furnishings and equipment, has been used here. This allowance couI
viewed as a smaller building plus a purchased or leased site, or a larger buildir
with no acquisition cost (like a fire hall property). Combined with the need to
repairs in the first few years, this capital cost would require borrowing —a mut
mortgage, so to speak. A total loan of 5500,000 has been factored into the mui
budget to finance roads and offices and the annual debt payments are reflected
projected tax rates,
Note that for the first several years the municipality could make do with a CM
rented office space in a Port Alberni commercial building and the use of the to
and/or community hall for council meetings.
Near term: Council chambers
Municipal council must conduct almost all of its business in public, and counc
are used for this, The council chambers do not need to be in a dedicated facilit
municipal offices. The municipality could hold its meetings where meetings ai
held in the community — that is, the community hail or the Harold Bishop fire
Near term: Furnishings and equipment
Wherever the municipal offices are located, there will be a need for basic o n
equipment (phones, computers, copiers, etc), furnishings, furniture, and suppli
allowance of S150,000 has been included in the St million capital budget men
above.
Near term: Road rehabilitation
The municipality would inherit the roads in their current state, and it is reason,
expect that it would choose to spend money on addressing the most immedian
improvement needs. In general, the pavement conditions are not poor, especia
community, municipality or not, has perfect roads, so it would be unreaso
that all a vast rehabilitation program would be needed.
However, based on a brief review of roads by McGill & Associates Engin
examination of spending in other, comparable municipalities, an allovvanc
million has been used for short term works on roads in the Core Area, or
per year. Some of this could be for repaving; some could be for highest
alignment improvements. Note that all o f this would be for Core Area roa
no roads in the Forestry Area that would be a municipal responsibility.
This 51.03 million has been included in the capital plan of the new munic
first five years, so that by the first "normal" year all the short term repair
rehabilitation works would have been completed. Funding for these short
would come from (a) start-up grants from the province; (b) surplus taxes i
years when the normal-year tax rate would produce more than is needed
year free road maintenance program); and (c) loans that total S250,000 (n1
payments are included in the annual municipal budget).
Near term: Public works equipment
Even though road maintenance would be provided by the province for the
the new municipality would probably need to acquire some public works I
order to perform tasks not included in the provincial contract. Examples o
include maintenance of drainage works, a higher level of road standards
and boulevard maintenance. The municipal budget includes an allowance
for this equipment during the first five years. After that, equipment would
the on-going capital allowance and reserve contributions. It is assumed th;
the road maintenance work would be done by a contractor, so the municip
need to acquire expensive equipment and vehicles.
On-going capital
In addition to the near-term works outlined above, the municipality would
going program of capital spending. The largest allowance (S107,000) woe
and drainage works, but it also includes furnishings, equipment, some mol
improvements, and others. A total annual allowance of $137,000 has been
annual municipal budget here, funded by annual taxes. Note: The fire dep
listed separately in the budget, includes another S160,000 for capital reser
When combined with the short term road improvements, the tax impacts r
reflect allowances for over $3 million in municipal infrastructure in the fir
Like most local governments, a Sproat Lake municipality should budget fl
contributions to reserves for future expenditures on infrastructure like pub
equipment, office equipment, and fire equipment and assets. The municipi
includes $30,000 per year for reserves (over and above the $160,000 in
Note that this allowance would need to be higher if the municipality uses i
and equipment for road maintenance, but under the contract program asstu
Gas tax projects
The municipality would receive about S138,000 in shared gas taxes. These fur
used for projects and programs related to environmental sustainability, like tra
stream protection, and not for more routine things like road paving or simple
reductions. While specific programs and projects can't be identified yet — that
up to the municipal council — it is reasonable to assume council would develor
qualifying works. This funding is shown both as a revenue and expense item
capital plan and thus has no impact on property taxes.
Summary of infrastructure
The following table summarizes the municipality's budget allowances for infn
over the first six years.
Figure 35: S u m m a r y of Municipal Infrastructure Allowances Over Six Years
Public works equipment and supplies $ 1 5 0 , 0 0 0
Municipal offices, furnishings, equipment $1,000,000
S1,312,000
Road works, drainage, other capital
$596,200
Gas tax sharing projects
$3,05a,200
Total capital spending, first 6 years
10. Annual Municipal Budget
Overview
This section describes what the annual municipal budget could look like f
It represents a "normal" year — when the start-up grants no longer apply a:
road costs would have to be faced a n d is stated in 2006 dollar values. W
2006 service levels have been used, with the addition of known, inlillinC111
budget plays the key role in determining property taxes.
.,.'Budget * 0 1 0 be up to municipal equi:taii.••••':•••,••
'.:...1/y111.16•*.ftgOto.O.:4eil.••46ro••.or6.•.toa$coliObt.O•fr$.•:#1.Opufp000o•ot t
•..,,rol40t:.b.0:•Jr.ettnietrobOrod:tt.-tot,ttlO:Oontuol:.,tiocioici.nO:ObOu.t.:.0en.din
•••••••••••••'•',•••Aa?(OsVo/Oollc(1*.froadO.::,12.•thp•,..rtO*100••00r1.0i1.:•••••••'•..•::•:•.'•
Annual municipal Spending
• Mayor and council: L i k e the Regional District board, the municipal e
set its own remuneration. Based on levels in other municipalities, the
probably be paid about $11,000 and each of the four councillors paid
The total remuneration for council is thus projected to be about S39,0t
there would be council expenses (UBCM and other conventions, rece
etc) budgeted at $25,000 annually.
• Administration staffing: As in a regional district, the administration (Y.
services, obligations and finances requires trained, professional staff,
functions can be contracted out rather than using municipal staff. Bas(
staffing levels in the peer-group municipalities (see below), a Sproat
municipality would need at least 4.5 full-time equivalent administratic
FTEs is a more likely level, Note that Tofino and Ucluelet have 6.0 bu
much more urban than Sproat Lake. For example, they have to manag
water and sewer systems, and have commercial cores that require higf
levels.
Figure 36: Administration Staffing in Comparable Municipalities
Ucluelet
6
.
Tofino
6
.
Chase
5
.
Highlands
5
.
Cumberland
5
.
Lantzville
5
.
For Sproat Lake
5 .
Full-time equiv P o p u l a t i o n
0
FTE 1 , 4 8 7
0
FTE 1 , 6 5 5
0
FTE 2 , 4 0 9
0
FTE 1 , 9 0 3
0
FIE 2 , 7 6 2
3
FTE 3 , 6 6 1
0
FIE 2 , 0 0 0
The exact task assignments and job titles vary from place to place, and thl
count could be higher if more use is made of part-time rather than full tin
but a typical staff complement would be generally as follows.
• 1 Chief administrative officer
• 1 Deputy administrator/clerk/corporate officer
• I Financial manager
• 2 Clerk/counter/assistant positions
Note that there are a number of statutory positions required in a municipa
Corporate Officer, Financial Officer, Approving Officer, and so on. It is i
note that these do not require a separate person each. One employee can s
three capacities. Doubling and tripling of responsibilities is common in sr
municipalities. The estimated annual wagc costs of the administration fun
including employer contributions, vacation fill-ins, WCB and other relate
would be about $315,000.
• Legal, audit and other professional fees: Municipalities, like regional distr
required to provide independent annual audits. They also need advice on v
legal issues, as well as advice on other matters requiring professional expc
$25,000 annual figure is used for this here.
• There would be the costs of maintaining municipal offices. It is assumed
that a new municipal hall would be built (while not mandatory, there does]
to be a suitable space in the community, though it could also be in rented c
Port Alberni). Wherever the municipal offices are located, there will be co
utilities, telephones, supplies, postage, couriers, office equipment, cleanin
on. The budget provides an allowance of $35,000 for this.
• Virtually all BC municipalities obtain their insurance through the Municip
Insurance Association, which was established by the local governments fo
purpose. The budget allowance here (about $30,000) is based on the MIA
2006 for liability insurance and also includes an allowance for property in!
deductibles.
• The administration budget also includes allowances for staff training, tray(
conventions ($12,000); elections, notices, and advertising (S1.0,000), and
miscellaneous services and requirements (S15,000), all based on levels get
found in peer-group municipalities.
Policing
Municipalities over 5000 are responsible for their policing, and most choose tc
for this with the RCMP. Municipalities below 5000, and electoral areas too, dc
this obligation. Instead, the Province provides policing for them through the RI
Starting in 2007 there will be a new provincial policing tax for these small con
While exact details have not yet been announced, recent estimates call for a tw
S0.247 per $1000 for Electoral Area D. However, the Province has also annou
rural-status communities will receive a credit because they already pay the pro
rural tax, and this could reduce the rate to perhaps $0177.
As a municipality, this credit wouldn't apply because municipalities don't pay
provincial rural tax (instead, they have their own municipal tax). In the "beforc
"after" comparison, therefore, the policing tax would be slightly different
the current system and S0.247 under municipal status. Note that this is a
not a municipal tax, and it is shown as part of the collections for other go
agencies rather than as part of the municipal services.
Fire department
The existing Sproat Lake fire department would transfer from the Region
municipality and become a municipal department, with no important chat
training, equipment, or responsibilities. Virtually all small municipalities
volunteer fire fighters. Being a municipality does not impose any meanin
obligations or requirements. This means the current spending on fire proti
the Regional District budget now — can be transferred to the municipal bu
less intact. One slight difference is that the ACRD administration charge
not apply; it would be included in the overall administration department
budget. Note that the use of surplus funds from prior years is kept the sarr
systems, as it would help reduce taxes under municipal status just as it do
current model.
Figure 37: 2 0 0 6 Fire Department Budget
Current
system
Operating costs
$200,000
Debt repayment (ended in 2006)
Transfer to capital reserve
Administration charge
$13,213
$160,000
$1,000
Less: surplus from prior years
Net cost of fire department
-$7,423
$366,790
Municipal
status
$200,000
$13,213
$160,000
$0
-$7,423
$365,790
The assets and debts of the fire department would shift from the Regional
municipality. This includes a reserve balance of about $300,000 as of the
Note that properties outside the core-area municipal boundary
part of the fire coverage area now would remain covered afte
municipality Is created. They would pay their taxes to the ACRD j
now; the AC w o u l d then forward the funds to the municipality.
would lose their fire coverage as a result of creating a niunicip;
Bylaw enforcement and building inspection
These functions could be provided by way of contract, by municipal staff,
municipalities — especially the smaller ones — combine the two functions
description. Given the amount of seasonal accommodation, traffic and sho
the municipality would need to devote meaningful resources to bylaw enfc
building inspection.
• Building inspection: I n 2006 the proposed Core Area paid taxes of ab
the ACRD for building inspection service (this tax load is based on a s
shared by all electoral areas). The municipality could contract this bad,
Regional District, which is done by numerous smaller municipalities 0
here it is assumed that the amount paid could remain about the same as uni
status. Under this plan, the ACRD would process the building permits, col
keep the building permit fees, and inspect the work.
• Bylaw enforcement: Under the current system, there is no separate bylaw
cnfOrcement function other than a very nominal animal control tax. Some
enforcement (property use and zoning conformity, for example) is part of
ACRD's planning function, for which there is a separate tax; and the build
function also includes some enforcement. In general, though, the current s:
relatively low level of bylaw enforcement, and it would be higher as a mu'
The municipal budget projection here includes just over S120,000 a year for th
functions combined. This would allow 1.5 F I E dedicated to bylaw enforeemei
addition to the building inspection contract. This is a much higher level of enfi
than under the current system. This function could also include animal control
bylaw were enacted by the municipality, though at some added cost (there is n
bylaw now). There would be some offsetting revenues in the form of infractiol
Emergency planning
Municipalities (and regional districts, too) develop emergency plans for their
communities, though usually not at a major cost. An annual budget allowance
has been included here, which would afford a reasonable review of plans ever.
Road and street maintenance
The Core Area has just under 36 km of road that would become a municipal
responsibility; the Forestry Area has none. The highway would remain a provi
responsibility. Under the current system, maintenance is the responsibility o f t
Province and the work is done by the provincial contractor; the cost of this coi
for the Core Area is estimated to be about S135,000 a year. The municipality (
choose to contract the work out (as the Province does), and this is assumed in
However, the municipality wouldn't get the same contract rate as the Province
the municipal contract area is very much smaller than the provincial contract
assumed that there would be a premium of 20%, making it about S160,000 a y
that this municipal cost would not start until the sixth year, as the Province wc
contractor continue to maintain the roads at no local cost for the first five year
There would be other road costs, too. The municipality would need to not
the contractor's work but also (a) plan and manage a capital improvement pro
undertake more drainage works and maintenance than the Province does now;
probably undertake additional snow removal, traffic control, parking manager
signage, and other road-related functions. It is reasonable to expect that the ra
would need its own public works supervisor to pet-form, arrange and manage t
functions, as well as to perform some maintenance tasks directly. There woule
some costs for the operation and maintenance of small equipment, like lawn a
snow blowers, Bobcats, etc. that would be needed for tasks not covered by the
contractor. The municipality's annual road maintenance budget for a normal y
after the five-year phase-in) is projected at almost $280,000. Note that this is (
above the capital repairs, rehabilitation and improvements that were discussed
i n f t , e t , t , Irr ce.r6
This budget allowance works out to almost $7,600 per km per year, whicl
consistent with the rural flavour of the community. Note that more "urbai
like Port Alberni, Ucluelet and Tofino spend much more per km on road
than rural municipalities do.
Figure 38: 2 0 0 6 Municipal Road Maintenance Budgets (Cost Per KM)
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Excludes more "urban"
municipalities like Totino
and Ucluelet, where
much more is spent
Bowen s, H i g h l a n d s M e t c h o s i n S o r o a t Lakf
(127 km) ( 4 4 km) ( 8 5 km) ( 3 6 km)
Land use planning
In 2006 the proposed municipal area paid ACRD taxes of about $90,000 t
planning services, The ACRD collects zoning and development fees to he
load. As a municipality, Sproat Lake could contract this service out, eithei
or consultants, or use its own staff. While it would be possible for a Sproa
municipality to spend as little at S50,000 (some municipalities choose this
allowance close to the current ACRD level is much more likely. A budget
$90,000 would cover the cost of a full-time planner (or almost full time) o
services. Contracting out could make considerable sense for this service.
Library district
Under the current system, taxes for the Vancouver Island Library District
ACRD levy. It is assumed that the municipality would choose to continue
community's membership in this service. The annual taxes for this would
the same as under the current system, except that the provincial 5.25% tax
would no longer apply. The current tax rate (S0.229 per $1000) would thu
This tax is part of the "collections for other governments" at the bottom of
budget and does not have an impact on the municipality's own tax rate.
Parks, recreation, and contmunity grants
The municipality would continue to participate, through the Regional Dist;
funding of the Port Alberni arena, regional parks, and three grants in aid (r
the Alberni Valley grants, and McLean Mill grants) just as it does now. T t
appear as ACRD taxes, not municipal taxes, However, several other simila
shift from the ACRD to the municipality.
• Grant to the Sproat Lake Community Association: Continuation of thi!
($12,000 via a $12.96 parcel tax) would be up to municipal council, bt
reason at all to suggest it wouldn't continue, and it is included in the rr
budget at this parcel-tax level. Note that the parcel tax would fall slightly t
provincial tax collection fee (included in the S12.96 tax) would no longer
• Sproat Lake community parks: In 2006 the costs of operating the local par
$57,600, of which $25,725 came from property taxes. This $25,725 tax ItN
canied over to the municipal model.
• Grant in aid to reduce non-resident fees at Port Alberni facilities: In 20061
S1,242 tax across Area D for this function, and this is continued as part of
municipal budget. Note that this will be much higher for 2007 because the
that was used to reduce the 2006 tax won't be available. However, this fur
costs, at whatever level, would be the same under both models, so year-tochanges do not matter in the "before and after" comparison of taxes.
Figure 39: M u n i c i p a l Budget for Parks, Recreation and Grants
Current t v
system
$11,421
Grant to Sproat Lake Community Association
Grant in aid to reduce the Port Alberni non-resident fee
$1,242
$25,725
Sproat Lake community parks (net tax req'C)
Total
$38,388
Fiscal services
• Transfers to reserves: An annual allowance of $30,000 has been included
municipal budget for reserves. These reserves are typically used to acquin
and supplies, and once a certain level of reserves has been built up, the an]
contribution is essentially a capital expenditure (for example, $30,000 goc
reserve and $30,000 is spent on new equipment each year). Because of etc
contracting out of this service, the municipality's need for equipment woo
minimal. Note that this is over and above the $160,000 reserve contributic
included in the fire department budget.
• Capital spending: A s discussed earlier, an allowance of S137,000 is inclu
budget for capital spending, largely on roads and drainage. As with reserv
an on-going expense. Note that this is over and above the short-term road
improvements already being financed through the capital fund
• Debt payments: As discussed earlier, the new municipality would probabt
infrastructure needs in the first few years that it couldn't fund from taxes (
short term grants, The budget allowances call for a total of $2.5 million co
six years, largely for road rehabilitation and municipal offices. It would IN
to borrow $750,000 of this (short term grants and tax surpluses would co'
The annual debt payment on this amount, using current Municipal Financi
rates, would be $61,500, and this amount is included in the annual budget
Collections for other governments
The municipality would serve as the tax collector for other agencies, a role fit
Province under the current model. These collections are:
• The ACRD requisition;
• The hospital district tax;
• The school tax:
• The 2007 provincial policing tax;
• The Vancouver Island Library District tax; and,
• Taxes for two minor provincial agencies (the BC Assessment Authori
Municipal Finance Authority).
Summary of annual municipal spending
The following figure shows the annual municipal budget for a normal yea
terms of 2006 service levels and dollar values. A "normal" year is definee
short term grants have been used and the full array of municipal costs in I!
Figure 40: P r o j e c t e d Municipal Spending (2006 levels)
Mayor's remuneration $ 1 1 , 0 0 0
Remun, for other 4 councillors $ 2 8 0 0 0
Council expenses (incl travel) $ 2 5 0 0 0
Total council
$
6
4
0
0
0
Wages, benefits, etc $ 3 1 5 , 0 0 0
Legal, audit, other professional $ 2 5 , 0 0 0
Mun. hall, supplies, phone, equip $ 3 5 0 0 0
Insurance (property + liability) $ 3 0 , 8 0 0
Membership, dues, training, travel $ 1 2 , 0 0 0
Elections, advertising, public relations $ 1 0 , 0 0 0
Miscellaneous and contingency
$ 1 5 , 0 0 0
Total General Gov't $ 5 0 6 , 8 0 0
Provincial policing (2007) s e p a r a t e tax
Fire protection (from ACRD budget) $ 3 6 5 , 8 0 0
Bldg insp., bylaw enforce, animal ctrl $ 1 2 2 . 0 0 0
Emergency plan
$
3
.
0
0
0
Total Protective
$ 4 9 0 , 8 0 0
Engineering and admin. $ 8
Contracts / other staff $ 1 6
Drainage + other works $ 1
Equipment 4- misc
$ 1 5
Street lighting
$
1
,
Total Roads and Drainage $ 2
4 , 0 0 0
2 , 0 0 0
0 , 0 0 0
, 0 0 0
0
0
0
7 2 , 0 0 0
Community planning (net of grants) $ 9 0 , 0 0 0
Library district s e p a r a t e fax
Parks, recreation and grants in aid $ 3 8 , 4 0 0
Total Redo and Grants in Aid $ 3 8 , 4 0 0
$ 3 0 , 0 0 0
Tsfr to capital: Ongoing amount S 1 3 7 , 0 0 0
Tsfr to capital: Gas tax - projects $ 1 3 8 , 4 0 0
Total transfers to own funds $ 3 0 5 , 4 0 0
Debt payment (or office rent) $ 6 1 , 5 0 0
Bank i n t e r e s t charges $ 1 6 , 0 0 0
Total Fiscal Services $ 3 8 2 , 9 0 0
(A) Municipal Costs (above) $ 1 , 7 8 0 , 9 0 0
(B) Tax for Regional District $ 2 3 0 , 2 0 0
(C) School, library, policing, hosp taxe $1,620,000
Total Expenses (A+B+C) $ 3 , 6 3 1 , 1 0 0
For a normal year, after all short-term grants
are used and full road costs are included
Annual municipal revenues
Property taxes
• General municipal tax: Taxes arc set at the level needed to balance the boi
"normal" year — that is, after all the short term assistance has been receive(
initial infrastructure improvements have been funded. This could generate
revenues in the early years, before the municipality has inherited its lull sh
services, but the budget shown here reflects the taxes needed to p a y p r a
services, including full road maintenance responsibilities. The next chapte:
translate this needed tax revenue into tax rates.
• Taxes from forestry: It is assumed the Province would restrict the municip
ability to set the tax rate on forestry properties so that these properties wou
or no tax rise due to being in a municipality. The revenues included here a!
municipal taxes that could be levied without causing a rise in the total taxi
forestry, This reflects recent provincial policies in municipal restructuring.
forestry assessments account for a small part of the overall tax base, so the
results wouldn't be much different if no such restriction were in place.
• I% Utility taxes: Under s.353 o f the Local Government Act, the municipa
collect 1°/0 of the gross sales of telephone, gas, cable TV and hydro servic
customers. This tax is paid by the utility companies, not by residents. The
used here are based on levels observed in other municipalities that are mai
residential in nature. BC Hydro grants in lieu of taxes and other, minor gra
of taxes from senior governments have also been assumed.
• Parcel tax: It is assumed the municipality would carry on with the annual
Sproat Lake Community Association, and the costs were included earlier i
"expenditure" list. The revenue from the parcel tax is included here.
Revenues from own sources
• Building permits: N o revenues from building permits are included becaus
assumed the municipality would contract this service back to the ACRD
ACRD would collect and keep the permit fees.
• Based on revenues collected by the ACRD in ,2006, municipal rezoning ap
and development permits have been included at about $6,000 per year.
• Licences and fines: A small amount ($4,000) has been assumed from busi
licences, the issuance of municipal vehicle plates, and other permits requir
municipal bylaws. The municipality would not be required to have a busin
bylaw, but having one is the norm rather than the exception. Municipalitie
business licences as a way to help control the activities o f businesses as wi
recover costs associated with managing commercial developments and op(
Business licences are generally quite small (for example, $100 for a restau
not be uncommon in smaller municipalities).
• Interest on current revenues: These revenues flow from bank deposits ma
the last half of the year, after property taxes have been received and the fir
operating loan is paid off.
• Tax penalties: L i k e the Province of BC, municipalities levy a penalty
who pay late. The level assumed here is generally consistent with levi
other municipalities, based on the number of residential folios.
Other revenues
• Small Communities Grant: A l l smaller municipalities in BC receivel
Small Communities Grant (SCG) from the provincial government. It
reach almost S350,000 per year under the Province's schedule for this
program. There are no restrictions on the use of these funds.
• Gas tax funding: The Community Works Fund (part of the provincial
"New Deal" plan) would provide the municipality with SI38,000 per
undefined infrastructure projects that advance the goals of environme
susta inability. The budget includes this amount as a grant on the revel
capital spending on the spending side, so including it has no effect on
• Commissions: Municipalities can levy a small commission on the co
school taxes paid by properties within the municipal boundary.
• Conditional grants: Most municipalities receive minor grants each ye
like student hiring plans, emergency plans, and special projects.
• Miscellaneous revenues: A l l municipalities have various revenues frc
sources such as map sales, sales of used municipal vehicles and equip
donations, rental of municipal properties and facilities, public works r
work on private properties, insurance settlements, and so on. A minor
been included in the budget for this.
• Annuity from the Capital Fund: Money left in the municipality's Cap
all short-term capital projects have been completed can be used to red
taxes in later years. The balance remaining in the fund after five years
converted to an annuity which provides revenue over time, thus sprea(
benefits of short term grants over a much longer period.
Collections J r other governments
As noted earlier, the municipality would be the collection agency for ACP
library district requisitions, provincial policing (starts in 2007), school tax
district taxes, Municipal Finance Authority taxes, and BC Assessment Atli
Figure 41: P r o j e c t e d Municipal Revenues (2006 levels)
Taxes and grants in lieu
General municipal tax
Tax from forestry
Utility tax + Hydro grants
Parcel tax - grant to Community Ass'n
Revenue from own sources
Fire dep't cost sharing
Development revenues
Licences, fines, other permits
Interest
Tax penalties + interest
Other revenues
Small Communities Grant
Gas tax sharing
Commission on school tax
Conditional grants + tsfrs
Miscellaneous revenues
Isfriannuity from Capital Fund
(A) Rev, for Municipal Use
(5) Tax for Regional District
(C) School, library, policing, hosp taxe
Total Revenues (A+B+C)
$1,091,500
$14,600
$23,300
$10,900
$80,800
$6,000
$4,000
$11,200
$23,300
$349,200
$138/100
$2,500
$5,000
$10,000
$10,200
$1,780,900
$230,200
$1,620,000
$3,631,100
For a "normal" year, after all start-up grants have been used
Summary of the municipal budget
The next figure summarizes the projected municipal budget for a normal year
after all the short term assistance has been provided by the Province and after
road maintenance costs are in place. As always in this report, the figures reflec
service levels where possible and are stated in year-end 2006 dollar values.
Municipal council would set budgets and taxes
Council's priorities could no doubt be different than the assumption
here. Different municipal budgets would produce different municipctaxes j u s t as different ACRD service costs and policies will change
"before" picture in the "before and after" comparison. Future servicl
levels, Met% and taxes are uncertain in both the current system and
municipal system. ,
1
Figure 42: S u m m a r y of the projected Municipal Budget (2006 levels)
...
„
.
.
,
Some properties in
fire area would be
outside the munic,
Note: These are projections. Actual
budgets would be up to the municipal
council.
Revenues
Municipal taxes
Utility taxes + grants in lieu
Alt small mun's get
Sale of fire protection service
this annual grant
Development permits, misc fees
Tax penalties + investments
"4. Small communities grant
Commissions,
Gas tax funding
misc sales, etc ''''••1.-•-•;' Other revenues
Revenues for municipal use
Not set by the
. . . . . . . . s for school, library, ACRD, etc
Grand total revenues
municipality ..
Expenses
Staff, council,
offices, insurance,
Police protection
Fire protection operations
Bylaw enforce. + ..
.. '-Other protective services
bldg inspecfn
Road maintenance
...
.."
Community planning
Could be
contracted out
I P a r k s and rec'n
.... .............. .................................. ...... To capital and reserves
Spending on municipal services
Mainly for road
Taxes for school, library, ACRD, etc
improvements
Grand total expenses
Amount
in 2006
dollars
Inc
........
$1,117,000 ' . ... . .
$80,800
$10,000 ...........
$34,500 ............
$349,200 F c
S138.400 .... ... . .
$27,700 ..........
$1,780,900
$1,842,300 ........... ........
$3,623,200 ............
Sb
$506,800 s sepal
separate lax ..........
$365,800 • .......;.......
$125,000 . . . . . . .
$272,000 .......... .......
$90,000
$38,4001--;;;;Ii ...
$382,900 r Actt
$1,780,900
$1,842,300 . . . . . . . .
$3,623,200 '::;r I
........
Normal year, with full road responsibilities and no more short term
grants. Based on 2006 service levels wherever possible, Note: Spending
priorities would be up to the elected municipal council
11. Tax Impacts
As shown in the following chart, the total property taxes collected from Sproat
properties would be higher under municipal status than under the current systc
2006 numbers where possible). Note that the provincial policing tax proposed
has been included under both the current system and municipal status.
Figure 43: T o t a l Property Taxes from Sproat Lake Properties (2006 levels)
Current
School, hospital, others
ACRD (excluding Library District)
Library District
Provincial policing tax (2007)
Municipal tax (incl SLCA pel tax)
Municipal
status
system
Change
$O
$1,449,300 $1,449,300
$723,200
$230,200 -$493,000
44,200
$84,100
$79,900
$25,800
$65,000
$90,800
$0 -$247,600
$247,600
$O $1,117,000 $1,117,000
$398,000
$2,569,200 $2,967,200
Tax rates
Apportioning the municipal tax load between residential properties and businc
properties would be up to municipal council. I f the business tax rate were to IN
times the residential rate, there would be the same proportionate change in tax
groups. This multiple is a bit above the current 2.45 for regional district but wl
the current 5.1 for the provincial rural tax. Note: Municipal councils have this
only for the municipal tax; the multiples for ACRD and other non-municipal
by the Province and are the same whether or not it is a municipality.
Figure 44: P r o j e c t e d Tax Rates for the Municipality (2006 levels)
Municipal general tax
Provincial policing (2007:
Regional District - fire"
Regional district - other'
Library districth
Total of above
Residential
Current
Municipal
System
System
-$3,230
_..
$0.700
$0,177
$0,940
$0.966
$0.229
$4.126
$7.140
$0.247
in MLIti tax
$0.490
$0.218
$4.126
$8.311
Business
Current
Municipal
System
System
-$10,013
-$3,600
$0,434
$2.303
$2.372
$0.561
$10.923
$20.193
$0,605
in mun tax
$1.201
$0.534
$10.923
$23.270
"includes 5.25% provincial tax collection fee under the current system
The tax rates from the preceding table can now be translated into taxes on pro]
using a 2006 assessed property value of S300,000 for consistency, but note thf
• The $300,000 property assessment is from 2006 and is based on real estatl
observed in July 2005. Values have risen since then, but this doesn't mear
will jump as a result, because tax rates will fall. The $300,000 represents
residential property (including detached homes, mobile homes, vacant lot!
• Taxes vary directly with assessed value; the higher the property valtu
taxes, and vice versa. Many properties are assessed above $300,000.
on a range of properties are shown below.
• The home owner grant has not been deducted from the taxes shown h
governance model. Those who qualify for the grant are already claim
amount, and the home owner grant would not be affected by changiN
status and would not influence the tax impacts.
Tax impacts on residential properties
Residential properties would see an increase in taxes due to municipal inc
shown below. Note that the 2007 policing tax is included in both the "cur
case and the "municipal system" case.
Note: The assessed values used below represent the values use
(which were based on real estate levels from July 2005). They do no
higher values that will be used for 2007 taxes_ The 33% average
assessments for 2007 does not mean that taxes will jump
Figure 45. T a x e s on a $300,000 Residential Assessment (2006 levels)
(.
Provincial policing (2007)
Regional district (incl fire)
Library district
School, hospital, other
Asmnt-based taxes
Poi tax - SL Comm Ass'n
Poi tax - Port Alb, arena
Current
System
-$210
$53
$572
$69
$1,238
$2,142
$13
$48
$2,203
Municipal
system Change
$969
$969
--$210
$74
$21
$147
-8425
$65
-$4
$O
$1,238
$351
$2,493
$12
-Si
-$3
$45
$347
$2,550
Excludes home owner grant
Figure 46: T a x e s for Various Residential Values (2006 levels)
Various Property Assessments
Property
Current Municipal
Asmnt*
System S y s t e m Change
$100,000
$775
$113
$888
$150,000
$1,132
$172
$1,304
$200,000
$230
$1,489
$1,719
$250,000
$1,846
$289
$2,135
$300,000
$2,203
$347
$2,550
$350,000
$2,560
8406
$2,966
$400,000
$2,917
$464
$3,381
$450,000
$3,274
$3,797
$523
$500,000
$3,631
$582
$4,213
$550,000
$3,988
$640
$4,628
$600,000
$4,345
$699
$5,044
$650,000
$4,702
$757
$5,459
$816
$700,000
$5,059
$5,875
$750,000
$5,416
$874
$6,290
$800,000
$5,773
$933
$6,706
* 2006 assessments, not the higher 2007 values
Tax impacts on businesses
Business properties can span a wide range of assessed values. Using the same
property value for consistency, the tax impacts of becoming a municipality wo
shown below; the impacts on a range of property values is also shown. Note:1
percentage tax change on a business has been set to match the percentage chan
homes. The tax rate multiple to achieve this is 3.1 - that is, the business tax rat
municipal tax purposes, is set at 3.1 times the rate on homes.
Figure 47: P r o p e r t y Taxes on a $300,000 Business (2006 levels)
Provincial policing (2007)
Regional district (incl fire)
Library district
School, hospital, other
Asmnt-based taxes
2 Parcel taxes
Current
System
-$1,080
$130
$1,403
$168
$3,277
$6,058
$61
$6,119
Municipal
system Change
$3,004 $ 3 , 0 0 4
- -$1,080
$182 $ 5 2
$360 -S1,043
$160
$3,277
$6,983
$57
$7,040
- $ 8
$ 0
$925
- $ 4
$921
Figure 48: P r o p e r t y Taxes with Various Business Assessments
Property C u r r e n t Municipal
Asmnt S y s t e m s y s t e m C h a n g e
$305
$2,385
$100,000
$2,080
$458
$3,090
$3,548
$150,000
$612
$200,000
$4,100
$4,712
$767
$5,876
$250,000
$5,109
$921
$300.000
$6,119
$7,040
$8,204 $1,075
$350,000
$7,129
$9,367
$1,229
$400,000
$8,138
$1,383
$450,000
$9,148 $10,531
$1,537
$500,000
$10,158 $11,695
$1,692
$550,000
$11,167 $12.859
$12,177 $14,023
$1,845
$600,000
$13,186 $15,186 $2,000
$650,000
$2,154
$14,196 $16,350
$700,000
Tax impacts on farms
As used here, farm land is land that has been designated as Class 9 by the BC
Authority (regular homes are Class 1). It is land actually used to produce agric
products. ALR land that is not used for farming is Class I land (residential), n
land.
For tax impacts, farms can be put into two groups: (a) vacant farm land, and (1
with homes. The impacts are different because a house on farm land would 1(Y
exemption that it gets under the current system. The house is exempt from the
rural tax, but it can't be exempted from the municipal tax. Note that the $50,0i
assessment on other farm buildings, like barns or silos, would not be affected
The basic municipal boundary includes four farm properties - two vacant proi
two with homes. The East Area has more (five vacant and nine with homes),
It is assumed that the municipal tax rate on farm land would be kept at thi
(50.50 per S1000). This would be up to municipal council. Such a policy
virtually no effect on the municipality's finances, since farm land accoun
of the tax base. The restructure study committee could recommend that t1
impose this restriction on the new municipality or the municipal council c
make it part of the tax policy.
The ordinary residential rate (see section 10.1) would apply to farm homc
This tax policy would produce a fax saving for vacant farm land. Howeve
this, the extra tax on a farm house (due to the loss of its exemption) wouli
saving on land, and a farm home would face a tax rise. The overall rise w
a farm home than for a regular home because the total assessed value is k
has a much lower assessment than a residential-class land).
Figure 49: P r o j e c t e d Tax Impacts on Farm Property
Municipal tax
Library district
Regional district*
School and others
Total taxes
Vacant Farm Land
($25,000 land assessment)
Current Municipal
system
system Change
$13
-$13
-$13
$13
$3
83
$O
$24
$6
418
896
$97
$1
$136
-$17
$119
* Ind fire undercurrent system
Tax saving
Farm Land with a
($25,000 land + $150
Current Municip
system
syste
$13
$37
$310
$741
$1,101
$:
SE
81,3E
*Excludes home OWIIE
How do the projected taxes compare to other municipalities?
How do the taxes projected here compare to taxes in other municipalities?
comparison provides a check on the reasonableness of the municipal budg
projections. There could be cause for concern over the budget assumption!
projected Sproat Lake tax loads turn out to be significantly below levels fc
The focus here is on local property taxes, not all property taxes. "Local" h
municipal, regional district and library taxes. Regional district and library
relevant because some services funded by a municipality in one case may
regional district in another. A comparison of only municipal taxes would r
important feature. To make sure the comparison is fair, the combined 1111111
regional district taxes are used in the table below.
The comparison shows that the projected municipal tax at Sproat Lake wo
with the taxes found in the other sample municipalities — higher than some
others. The chart is based on an average residential folio in each communi
family house averages are higher than the overall average because vacant I
homes and condominiums are counted in the overall average, but this does
relative comparison here.
Figure 50: 2 0 0 6 Local Taxes on an Average Residential Property (incl. vacant lots)
Highlands
Bowen Island
Tofino
Sproat Lake MUNIIC
751 folios $442,000 avge
1967,
f o l i o s $551,000 avge
983 folios $419,000
avge
_
1,163 folios 6267,000 avge
Ucluelet
997 folios $ 2 2 ,000 avge
Metchosin
1917,
f o l i o s $230,000
avge
_
$O $ 2 0 0
$ 4 0 0
$ 6 0 0
Municipal and
taxes only;
excludes watE
sewer, policir
and parcel tax
$ 8 0 0 $ 1 , 0 0 0 $ 1 , 2 0 0 $1,401
12. Boundary Options
Different municipal boundaries
The basic analysis presented earlier assumes the municipal boundary won
Area and the Forestry Area to the west of the core. What would be the eff
the Forestry Area or adding the East Area or the Northeast Area? Here is •
the characteristics of each area.
Figure 51: S u m m a r y Characteristics of Each Area
Residential folios
Estimated population
KM of road
Total weighted tax base (millions)
Basic municipal analysis
Core Forestry
Total
East
81
1,082
106
1,163
30
1,900
80
1,930
35.6
0.0
35,6
18.5
$314.1 m
$23.8 fr $73.0 m 14,1 m
Smaller boundary: Core Area only (exclude Forestry)
Excluding the Forestry Area would reduce the municipality's influence cm
of much of the lake. The Regional District would continue to set land use
regulations there (both the ACRD and the municipality can't prohibit I o n
because this activity is protected by provincial forestry licensing).
There are no roads in the Forestry Area that would become a municipal re
only public road is the Pacific Rim Highway, which would remain a provi
responsibility.
The tax base would be lower, because some homes along the north shore (
the large area of forest lands would not be part of the municipal tax base.
reduce the tax base by about 7% compared to the basic analysis. Since the
decrease in the road length, there would be no meaningful decrease in mui
(other than a minor fall in bylaw enforcement and planning costs).
The net effect is to worsen the tax picture, as the 7% drop in the tax base i
accompanied by a 7% drop in costs. After making the appropriate adjustm
analysis, this option would add another S44 to the tax bill on a S300,000 p
Core Area + Forestry + East Area
The basic analysis excluded the East Area because it has a lot of farm prof
farm properties with homes would face higher proportionate tax jumps tha
homes. Adding the area to the municipal boundary could increase the mun
sphere of influence and control. However, most of the area has very little c
potential because it is in the ALR, so the value of the added control may bi
area does, however, contain a portion o f the mill's water pipeline, plus some ol
industrial and business assessments.
There are only perhaps 80 people in the area so there would be minimal deman
extent of services required of the municipality — except for roads. There would
two meaningful changes to the numbers.
• First, the weighted tax base would rise by about $40 million. Much of this
adding residential properties but the East Area also has industrial and bush
assessments. Adding the East Area would raise the weighted tax base by $
("weighted" means after factoring in the extra tax-paying power of industr
business).
• Second, three particular costs would rise in a meaningful way: (a) road ma
would rise by about S119,000 per year after the free 5-year period; (b)
capital costs could rise by about $55,000 per year; and (c) short term road
improvements, spread over the first five years, could rise by over $200,00(
would be some other, minor changes in spending, too.
A separate analysis shows that the net effect would be to reduce the projectedi
tax rate. This is because the rise in road costs is more than offset by the rise in
base. The net effect would be to lower the tax bill by $17 compared to the basi
—but there would still be a tax rise compared to the current system.
Largest boundary: All four areas combined
The largest boundary option would see all four areas combined into the munic:
would have about 2,000 residents to serve and 68 km of roads to maintain and
This option is the preceding one plus the Northeast Area.
The Northeast has a mixture of farms, forestry, the airport, and a few residenti,
properties, and a modest weighted tax base of $14 million. Adding this area w,
the municipality more control of (and the financial benefits of) development
airport and at Great Central Lake. It would not have a meaningful impact on tt
community's influence on or control of Sproat Lake itself, since the basic boo
option (the Core plus Forestry) already included the whole lake.
This option would mean all 24 farms at Sproat Lake would be in the municipa
vacant farm land could see a tax decrease due to municipal status, homes on fi
would face a tax rise. This option thus exposes all the farm homes to this effec
The two main financial aspects of extending the boundary from the original ar
plus Forestry) to the entire area to would be as follows.
• The weighted tax base would rise by about $87 million compared to the oi
analysis. Most (85%) of this extra sum is in the East Area, since the North
relatively little. This increase represents a 25% jump over the original.
• Road costs would rise significantly due to the addition of 32 km of length.
almost doubles the road responsibilities of the municipality compared to tl
analysis. Annual road maintenance costs would rise by about $200,000; ca
road capital needs could rise by almost $100,000 per year; and short term
could add almost $700,000 over the first five years. As with all the b
there would be some other, minor changes in spending and revenues.
On balance, using the largest boundary would add $65 to the earlier-proji
tax bill on a $300,000 residential property.
Summary of boundary options
There are certain economies of scale when expanding the municipal bout
notably in the general administration department, where the capacity regt
serve the Core Area would also serve the demands of the largest boundar
some economies with road maintenance costs; the cost per km falls as tht
rises. However, in the case of the Northeast, the total annual road bills, eN
per-km costs, rise more than the tax base rises, so adding this area would
taxes.
The tax impacts of the options are as follows.
• The Forestry Area improves the original tax impacts by $44 on a $30
property.
• The East Area improves the original tax impacts by $17.
• The Northeast Area worsens the original tax impacts by $65.
Figure 52: S u m m a r y of Tax Increases for the Four Boundary Options
$450
En
up $39-1
$400
up $347
'v-r)
up $330
O$ 3 5 0
cc
eL
$300
$250
$200
Basic analysis
(Core + Forestry)
Smaller boundary
(Core Area alone)
Larger boundary L a r g e
(Core Forestry + ( a l l
East)
Much of the discussion above relates to taxes and finances, but there other
should be considered when choosing a municipal boundary option, and the
weighted against the projected tax impacts.
• What is the growth and development potential o f an area outside the Core?
the tax impacts be lessened by benefits from future development? This see
likely for the Northeast, given the plans for development at Great Central I
for the East Area. The Forestry Area has limited development potential no,
may not be the case after logging has taken place and alternative land uses
consideration.
• Are there First Nations issues? The Province is committed to consulting w
Nations when major decisions are being made that could impact their inter
is particularly important where there are large blocks of Crown land locate
area, as there is in the case of Sproat Lake. It is a provincial role to underta
Nations consultation to determine interests. I f the Study Committee recom
a vote be held, the Province would review the proposed boundary with pro
agencies and consult with local First Nations to determine interests. The pi
municipal boundary could be refined following this consultation process.
• Do the residents of the expanded area feel a close enough affinity with res
the Core? Do they share enough common values and community goals to
partnership in a municipality? Would these residents want to join a Core A
municipality? Would municipal status offer them solutions to problems, oi
opportunities, that would warrant being part of the municipality?
• Could the municipality deliver services effectively and efficiently to the e)
areas? For example, Great Central is somewhat removed from the bulk of
Sproat Lake, and this might strain municipal service efforts (other than thc
function o f road maintenance). On balance, though, adding in the East or T
Areas seems unlikely to impose an undue burden on the municipal service
than extra road costs.
13,, What If
Introduction
The tax impacts presented in the original analysis several chapter earlier
assumptions about what service levels, budget priorities, and tax policies
council might choose. While the projections are reasonable estimates, it it
remember that actual budget decisions would be mode by the elected mul
This chapter looks at the impacts if some of the assumptions are changed.
Different operating costs
The municipal budget set Out earlier represent a continuation of the curret
as much as possible, with several unavoidable changes that municipal stat
require (two major changes involve administration and reads). What i f mi
chooses to spend more, or less, than assumed?
Every S100,000 change in annual municipal spending —a 6% change in ti
municipal budget w o u l d mean a change of about $89 in taxes on a samp
property.
To put this in perspective, the annual road maintenance budget was projec
$272,000 and the tax rise due to municipal status was estimated at $347 a
residential property. I f the road maintenance turned out to cost, say, $372,
$100,000 — the tax rise would be worse by $89 (assuming, of course, cour
simply lower the budget in other areas).
1.00#1,401.y.'00.060f. different spending
Theopst: ssovreasonsfor ototer,0000004wouldbe(0)higher:
assumed f.,0100:#0,0100060;),.•000(0):1#01101hat*60.00104:0i4nr0
tat,Vetlfoitetnetit ditift:'dnoi:(0::r000rtNio*oonledooltoloel
Themost woly:tosoqifolo*0#0011**000:befeweradminis
1•4 O t e r f t * i:5 for ei0r0:01:4).000:104***Oilyri010:topoobo
Note that changes to the fire department budget are an exception to this, IN
changes could apply under both the current system and the municipal systi
$100,000 in fire protection would have no effect on the tax impacts of
because the same tax rise would be added to the "current system" taxes an
"municipal status" taxes.
Figure 53: T a x impacts of Different Annual Spending on a $300,000 property
$250,000 $200,000
(a)
• $150,000
'1;2
6ca_$100,000 • $50,000
z
z
co $ 0
z
Q.) - $ 5 0 , 0 0 0 !;-3)
6- -$100,000
CD
-$150,000
Evety $100,000 change in annual spending
means a 889 change in the tax on a home.
For example, cutting 8250,000 from
the budget would lower the tax bill by
about $222 (see bottom left of chart);
adding 8250,000 to the budget would
raise the tax by $222 flop right)
4200,000 -$250,000
-$222 - $ 1 7 8
-r
-$133 - $ 8 9 - $ 4 4
$ 0
$ 4 4
$ 8 9 $133 $178 $
Change in tax on a 8300,000 home
What budget reduction is needed to erase the tax rise?
The budget numbers presented earlier in this report represent informed estimat
on analysis of spending patterns elsewhere. The figures were selected because
the most reasonable, and few offer much potential for downsizing. However, s
assumptions are more important than others. Here are some alternative spendit
that a council could consider.
• Road maintenance: The budget includes a contract allowance of S162,000
which seems very reasonable in light of the provincial contract amount. 14
budget also includes another $109,000 mainly for administration by a pub:
superintendent and additional work on drainage. This is not mandatory, an
be possible to have the contract managed as part of the general administral
function (there are a few municipalities that do this). I f this allowance was
to $50,000, the tax bill on a S300,000 property would fall by $45.
• The municipality might get by with perhaps 4.5 FTE administration staff,
FTE. This would cut almost $30,000 from the budget, which would reduct
burden by $27.
• The municipality could contract our building permits and inspections, or p
with a contract municipal staff member, and charge building permit fees ti
offset the costs. Many municipalities do this. Such a policy could save $3(
reduce the tax load by S27
• The municipality might obtain infrastructure grants to help finance short-t
infrastructure improvements (roads and a municipal hall). The basic analy
$3.1 million in capital works over the first six years. I f SI million in infra
grants were obtained, the annual tax needs would decrease by about $100,
would produce an $89 drop in the tax bill on a $300,000 property.
These four steps or changes would, i f all were enacted, reduce the tax needs b:
or S188 on a sample property — but would still mean a tax rise of $159. In othc
seems extremely unlikely that even with substantial belt tightening, the IT
could be as low as under the current system.
Of course, this assumes taxes under the current system do not jump much
property assessments rose substantially between 2006 and 2007. Howeve
assessments do not necessarily mean higher taxes, because tax rates are o
down to reflect higher assessments. It is too early to say whether 2007 ta.>
current model will be much higher than in 2006. I f they are, the tax gap b
municipal status and the current system could shrink.
Different infrastructure costs
The municipal budget projections allow up to $3.1 million to be spent on
infrastructure over the first six years, over and above works funded by sp(
infrastructure grants, gas tax funds, or other revenue sources. What woulc
taxes i f another $1,000,000 were spent on capital? The easiest way to tes1
assume the SI,000,000 is financed by a loan through the provincial Muni(
Authority. At current interest rates, the annual cost of a $1,000,000 loan i!
$100,000 per year. As shown above, every $100,000 change in municipal
produces a $89 change in taxes on an average home. Thus every S1,000,0
—or reduced — infrastructure spending would mean a rise, or fall, of $89
typical home.
Changing the business tax multiple
The tax impacts presented earlier are based in part on the assumption that
tax rate for businesses would be 3.1 times the rate for homes. A higher nu
shift more of the tax burden onto businesses; a lower multiple would shift
homes. This applies only to the municipal tax rate, not to the school, ACR
rates that lie beyond municipal control. Under the current system the bush
multiple is 2.45 for ACRD taxes and 5.1 for the provincial rural tax.
• I f the multiple were set at 1.0 — that is, i f residential and business prop
same municipal tax rate, something not often seen in municipalities —
would be more, and business taxes would be less, than projected. This
little difference to home taxes, adding only $7 to the bill — but it woul(
large difference for businesses. The originally-projected jump of $921
a tax saving of $1,107.
• What i f the multiple were shifted the other way — more to business an
homes? I f the multiple were 4.0 rather than the assumed 3.1, the samp
property's tax improves a bit (by $3) but a business property would se,
tax rise of $921 almost double.
There is disproportionate shifting here because the residential tax base cINN,
business tax base. Every 1€1/0 shift in the tax bill to or from a home produce
change in the business taxes in the opposite direction. It is clear that shiftir
from homes to business can't do much to relieve the jump in taxes faced b:
could do a lot to reduce the tax loads faced by businesses.
Community growth
The earlier analysis excludes the impacts of future community growth, but it is
pointing out that new development would probably produce a net tax gain for
Lake municipality. This is because the rise in the tax base would probably outs
rise in municipal costs.
Of course, this depends on the circumstances of growth, and it is possible to in
development taking place in locations that do in fact trigger extra municipal cc
roads, for example. Generally, though, the administrative resources and road c;
needed to serve 2,000 residents would in large measure be sufficient to handle,
residents.
For example, the construction of 200 new homes (which could accommodate z
residents) could easily add it another S 100 million to the tax base. This would
extra S320,000 for the municipality. It is most unlikely that 200 new homes w(
add this much to the annual service budget of the municipality, so it is likely tl
would be a net tax gain.
Growth could also mean additional businesses, and these are even more likely
a tax gain. It would take new business properties totalling $32 million to prod).
same S3'20,000 tax gain as from the 200 new homes.
Lower provincial grant
The province has indicated that the municipality would receive about almost
under the Small Communities Grant program. What would happen i f this fell I
50%, to SI75,000? A separate analysis shows that this would add $121 to the
tax bill on a S300,000 residential property (Note: this assumes the municipalit:
curtail spending, which would be a logical response to lower revenues).
What if the grant were cancelled entirely? This is extremely unlikely, as this g
been a core feature of provincial assistance to municipalities for decades. Furt:
the Province has just recently increased it substantially, not decreased it. Meai
effects of eliminating the funding would be a worst-case scenario. Clearly, the
much revenue would force the municipality to cut its spending and thus lessen
blow. However, i f the grant were eliminated and the municipality didn't reduc
(however unlikely this scenario may be), the tax estimates for a $300,000 resi(
property would $242 worse than projected originally.
14. Summary
Municipal status
I f the matter proceeds to a referendum and it passes, Sproat Lake can bee
municipality. It would probably be called the District Municipality of Spr
would be governed by a municipal council of five —a mayor and four oth
Municipal council would adopt community policies and regulations, set
standards and practices, and adopt spending and tax bylaws for Sproat La
Municipal status would shill community powers and responsibilities fronClayoquot Regional District (ACRD) and the Province to the municipalit:
• Sproat Lake would still be a member of the ACRD but would rely on
services, since the municipality itself would be responsible for some (
and functions now provided by the ACRD — principally land use plan
building permits and inspections.
• The Province's role as a provider of local services would diminish to
collection and subdivision approval would all become municipal func
than provincial functions.
Figure 54: C o m p a r i s o n of Local Elected Officials
1111102TETIMEI
1 Regional district director
Municipal system
Municipal council of 5
8888
Mayor
(a member of council also
sits on the regional board)
The new municipality would inherit its responsibilities over time. Road m
would become a municipal obligation after five years. Some services coul
back to the Regional District for a transitional period. Other services won]
municipal responsibility right away.
Why consider municipal status?
Municipal status would mean more independence, accountability, authority, atopportunities for the community. The municipality would pass its own bylaws
policies regarding community services and regulations. The only officials votil
bylaws and policies would be those accountable to Sproat Lake voters. This dc
apply to the ACRD now, as the approval of ACRD members from outside Son
needed to adopt a bylaw affecting Sproat Lake.
Municipalities are eligible for infrastructure grants (regional districts are too, f
grants). O f course, being eligible doesn't guarantee all grants will actually be (
but a number of funding programs are essentially assured under municipal stat
they could amount to almost S500,000 per year.
Municipal status could provide the community with more authority to monitor
regulate septic tanks, under provisions of the Community Charier that do not a
regional districts.
Municipal status would allow the community to set its own service levels, poli
regulations, like bylaw enforcement, zoning, and road standards.
However, municipal status would also mean more obligations. Services obliga
now rest with other, broader bodies, like the ACRD and the Province, would b
local responsibilities, and the municipality would have to find them. Municipa
would not affect the community's ability to regulate drinking water standards
of the lake as a water supply; these generally lie beyond local government autl
Changes in service providers
A number of service responsibilities would shift as a result of municipal incon
The local service roles of the Province and the Regional District would either 1
or replaced by the municipal role.
Figure 55: O v e r v i e w of Service Providers
Affected by municipal incorporation
Regional District
local services
Province of BC: Local
roads, subdivision
approval, tax collection,
tax policies
N
o
t
affected by municipal incorporation
Private utilities
(phone, TV, hydro,
etc)
Volunteer
organizations
(community
assoc'n, etc)
Province of BC:
Highway 4 and
policing
Controlled by the municipality
Fire department
Building permits
Building inspection
Regulatory bylaws
Bylaw enforcement
Local roads
Zoning + planning
Tax policies
Individuals:
Drinking water
supply
Agricultural Land
Commisison (ALR
matters)
Not controlled by the municipality
Private utilities
(phone, TV, hydro,
etc)
Regional District:
wide-area services
Volunteer
organizations
(community hall,
etc)
Individuals:
Drinking water
supply
Province of BC:
Highway 4 and
policing
1
Regional District:
wide-area services
Agricultural Land
Commisison (ALR
matters)
Figure 56: C o m p a r i s o n of Service Providers and Responsibilities
4
Clayopuot
Regional
District
1 S h i f t to
Wide-area functions
911 emergency
AV emergency plans
Custom transit
AV airport
AV landfill
Local services
Zoning and land
use regulation
Building inspection
Animal control
Grant - Comm Assoc
Regional planning
Regional parks
Grant in aid - AV
Grant - McLean Mill
SL community parks
Note: A V stands
for "Alberni
JIL
Local roads
Grants to local groups
Tax collection
Zoning, OCP, land use
Water (if installed)
Sewers (if installed)
Various province-wide services, plus -Policing
Highway 4
Local roads
Tax collection
Alberni-
,
Nothing - there is no
municipality now
Municipality
Province
o f BC
J
SL stands
for "Sproat Lake"
Valley"
Taxation po
Animal coo
Building per
Building ins
Fire departr
Municipal o
us adr
Various
Various province-wide services (no oh
Policing (no change)
Highway 4 (no change)
tax collection would become mun
1 Local roads, subdivision approva
Wide-area functions
911 emergency
AV emergency plans
Custom transit
AV airport
AV landfill
Regional planning
Regional parks
Grant in aid - AV
Grant - McLean Mill
Local a
Local
would
municip
(some
conin
At
Note: A V stands
for 'Alberni
Valley"
Functions
not
Schools
Library district membership (through
Schools
affected b y
Hospital
Property assessment
Private utilities
Postal and others
Hospital
Property assessment
Private utilities
Postal and others
changing
to munic.
status
Municipal boundaries
The minimum municipal boundary should be the Core Area — generally the ea
the lake but excluding the farm areas to the west and north of McCoy Lake. H
given the dominant role of lake in the life of the community, it would also ma
consider the western Forestry Area, which would put the entire lake and water
municipality. This report has used the combined Core and Forestry Areas as
municipal boundary for the financial analysis
Adding the East Area (the farm area around McCoy Lake and the Soinass Riv
adding the Northeast (north of the highway, to Great Central Lake) could also
considered. Including the Northeast Area would add the airport and the rc
road to Great Central, and this would add to the tax burden.
Land ownership
Land ownership would not be affected by creating a municipality. Land c
would remain privately owned, and Crown land holdings would not chan
municipal incorporation. Municipalities do not own all the lands in their t
only land that would become municipal for certain is the land now owned
that has been funded by local taxes (for example, the .fire halls).
Municipal staffing
Like the ACRD, a Sproat Lake municipality would need professional stal
manage its functions and responsibilities, though it could make extensive
for things like land use planning, routine road maintenance, building inspi
bylaw enforcement.
Figure 57:
Projected Staff for a Sproat Lake Municipality
Function
Current system
General
administration
A share of ACRD and
provincial staffing
Legal and audit
Fire department
B0114114 Inspector and
bylaw efitOrcernent•
Animal control
.•Publieworks•,-; water.
and sewer systems
: Contracted OW as
needed
dISPaflfl
5.0 FTEA
Comr
Additk
over c
level
'Contracted out as
No ne
needed
Volunteer fire fighters
Volunteer fire fighters
No ch
part of larger AC
Could: contract this
, out
as needed or use ow
Staff
'No ne
..Staft.
fOridlir
staffing
Minimal service at
Sproat Lake
•(Opto••
Part Of large provincial
Public works - roads
, Municipality*
contractor staff, plus
provincial District
Manager
•pttorgo.A
Not mandatory (could
contract this out or use S e r v i c
own staff —see bylaw c o u n c i
enforcement)
••••••••,,,..•••••••••••••
P: id.Mduats
Depends on level of
contracting but minimum
1,0 FIE
could be„own staff (
F-x):or Contracted*
as needed
Subdivision approving P r o v i n c i a l employee
officer
( M o T )
Municipal employee
(usually Administrator or
PW su ervisor
•'''
ch4
Need I
with pr
progra
under
mait
irtii
This w
separe
"Includes administration, finance, payroll, and clerk duties
* The costs of these FTEs are included in the municipal budget and tax pi
Municipal budgets
The following budget projections include paid staffing and other operatirq
as capital funding for infrastructure improvements. Just like under the cun
property taxes would be the main source of funding for local services.
Spending priorities set by municipal council
The actual budgets would be set by the elected municipal council. Wh
the projections used here are reasonable for our purposes (they arE
based on current costs and service levels wherever possible, and or
experiences in other municipalities), they can only be assumptions—
as the current status tax picture is assumed to stay as is
Figure 58: P r o j e c t e d Municipal Budget (2006 levels)
Some properties in
fire area would be
outside the munic.
Note: These are projections. Actual
budgets would be up to the municipal
council.
Revenues
Municipal taxes
Utility taxes + grants in lieu
All small mun's get -"• Sale of fire protection service
this annual grant
Development permits, misc fees
,,, ............
•••••••:., Tax penalties + investments
Small communities grant
Commissions,
Gas tax funding
misc sales, etc
Other revenues
Revenues for municipal use
.. N o t set by the ... :::::;Taxes for school, library, ACRD, etc
Grand total revenues
municipality•••• ...
E x p e n s e s
Staff, council,
.•••• General administration
offices, insurance,
••• Police protection
Fire protection operations
Bylaw enforce.
. Other protective services
bldgoinspect'n
a
d
maintenance
.R
Community planning
Could be
Parks and rec'n
contracted out
••.••..
............ , .•.. To capital and reserves
Spending on municipal services
Mainly for road
Taxes for school, library, ACRD, etc
improvements
Grand total expenses
Amount
in 2006
dollars
i•...
Includes IC
SLCA pa
Hydro
$1,117,000
.... other
$23,300
Mode!
$80,800
.........
a
c
$10,000
...
....
$34,500
For envirc
$349,200
sustainabil
$138,400
...
$27,700
Taxes s
$1,780,900
other a
$1,850,200
•
•
•
.............................
$3,631,100
Starts in
$506,800
separate pr(
...........................
separate tax
$365,800
A c t u a l 2C
$125,000
$272,000 ••••:' Local roads
$90,000
contract
$38,400
—..."!:!.cc,,=
$382,900
Actual 200
$1,780,900
$1,850,200
Revent
$3,631,100
match
Normal year, with full road responsibilities and no more short term
grants Based on 2006 service levels wherever possible. Note: Spending
priorities would be up to the elected municipal council
The combination of annual taxes, start-up grants from the Province, and borro
allow spending of over S3 million on infrastructure during the first six years. '1
includes substantial short term rehabilitation and remedial improvements to ro
Infrastructure costs have been factored into the projected budget and tax impa,
amounts include $t million for new municipal offices, furnishings and equipn
million in short-tenn road rehabilitation; almost $600,000 in gas tax rebate pr(
$150,000 in smaller public works equipment.
Property tax impacts
Taxes vary with assessed property value. A 2006 assessed property value of $
used to measure impacts here. Houses were assessed higher than this; mobile I
vacant lots had lower values.
Note: Property assessments have jumped since 2006, but ti
does not mean taxes will jump proportionately, since the tax r
will fall. A $300,000 residential property in 2006 might be
assessed at $400,000 or more in 2007.
Taxes also depend on whether your property is residential or business, as
rates are higher than residential tax rates. Residential properties arc in Cla
Assessment Authority system, and businesses are Class 6 (these designati
on each assessment and tax notice).
Municipal SiaiLIS is projected to require a lax increase. The main reasons
follows.
• The very small business and industry tax bases (which means an almc
reliance on residential taxes).
• The relatively long length of roads (which means substantial maintm
• The need for adequate land use planning and bylaw enforcement effol
required of a municipality with a strong seasonal occupancy).
• The need to establish an administrative capacity to serve the needs of
with an effective size well beyond the year-round population.
The tax impacts depend on budget level: lower spending would mean low
higher spending would mean higher taxes. The impacts shown here are ba
snapshot of 2006 services and taxes, both before and after municipal incoi
well as on experiences in other municipalities
••••:i•:Notp that sereite:.lavel-t:bUdgeft,,ehtttakee,t0O'd be Op:to:row*
Figure 59: P r o j e c t e d Tax Rates (2006 levels)
Residential
Business
Current
Current
Municipal
Municip.
System
System
Syste
System
--$3.230
$10.01
-Provincial rural tax
$0.700
$3.600
$0.177
$0.247
$0.434
$0.60
Provincial policing (2007
$0.940 in mon tax
Regional District - fire"
$2.303 in MUt7 ta
$0.968
$0.490
$2.372
Regional district - other'
$1.20
$0.229
$0.218
$0.561
Library district"
$0.53
$4.126
$4.126
$10.923
$10.92
Total of above
$7.140
$8.311
$20.193
$23.27
"Includes 5.25% provincial tax collection fee tinder the current system
Figure 60: P r o j e c t e d Taxes on a $300,000 Residential Property (2006 levels)
Note: $300,000 refers to the assessed value used in 2006, not the newer, higher
$3,000
Parcel
$2,500 t a x e s
$61
t
a
$
x
5
7
Rural
tax
$210
Regional district +
library $641
Municipal tax
(inci fire) $069
Regional
district +
library
$212
$1,000
$500
U p $.347
$2,203
$2,000
$1,500
Parcel
s
$ 2 , 5 5 0
e
School, policing,
hasp. $1,291
School, policing,
hasp. $1,312
$0
Current system
-•
M
u
n
i
c
i
p
a
l
system
Figure 61: T a x Impact on Various Residential Assessments (2006 levels)
$1,000
$900
$800
$700 A v e r a g e residential
$600 p r o p e r t y in 2006 (not the
higher 2007 level)
$500
$400
$300
$200
Tasxd
o
e
iu
rte
$100
$0
,
e e , c l . (csz., )‹ eo izs, e <e2e, e e e
4 1 ,
41, 4 ' 3
4
'
43
4
4
4 ,,;\
2006 Assessed property value
Business properties, like homes, could face a tax rise, too. It is assumed here t
municipal tax rate for businesses would be 3.1 times the residential rate, whiel
mean the some proportionate changes for the two property types (the current
rate multiple ranges from 2.45 to 5.1).
Figure 62: T a x Impacts on Various Business Property Assessments (2006 ley
$2,500
cf)
$2,000
17)
•.,P3 $1,500
(1) $1,000
-o
a)
•c
$500
$O
s
G
•
s
▪, „
,•(0,, „s „ , • „,, ,•
p
'
c
5 ( '
cl"C)
4 '
6 5 )
s
e
s •
2006 Assessed property value
Municipal infrastructure
The municipality would need office space. It would not have to be muniei
could be in rented space. However, there are few prospects for this at Spa
be conservative, it is assumed here that the municipality would, after the f
years, need to construct a modest building, with a total budget allowance (
including furnishings and equipment.
The municipality would also need to devote capital to road improvements,
both immediate improvements and ongoing, long term works. The tax pro
provision for about S 1.3 million over the first six years. Little would be ric
way of public works equipment because it is assumed the municipality we
out its road maintenance.
The combined capital for short term road improvements and the municipal
require the municipality to borrow $7.50,000; the annual debt payments an
the tax projections.
Provincial funding
The Province would provide short term assistance in the form of start-up g
absorbed costs during the first five years, with an estimated value of abou
cash or kind. In addition, there would be annual, on-going funding througl
programs that are not available to Sprout Lake now.
• The municipality would receive an ongoing $349,000 annual grant um
province's Small Communities Grant program. I f the grant were cut ir
spending to offset the smaller grant (which would of course be a reasonabi
These grants have been stable for many years, so it is not unreasonable to i
them in the analysis. In fact, the Province has recently announced a major •
the grants, not a decrease. These funds are not available to the community
current system.
• A Sproat Lake municipality would receive a share of the gas tax revenues,
to reach S138,000 per year. These funds must be applied to environmental
sustainability projects (sewerage programs and transit are examples). Lind(
current system these funds are available to the ACRD but need not be dedi
Sproat Lake.
In aggregate, these two ongoing programs would mean about S487,000 per yez
Sproat Lake facilities, services, and programs.
Risks
In addition to the positive aspects of municipal status — increased autonomy, ai
flexibility and accountability — there are some risks too, including these.
• Municipal council could choose to spend more than projected. This could
up. Every additional SI00,000 in annual spending means another $89 in ta
• The municipality might have to spend more repairing roads due to slides o
• The senior governments could download additional costs onto municipalitF
• The Province could reduce the annual grants to municipalities.
• The municipal council could undertake new policies and regulations that a
unpopular.
,There are some risks no matter what
e current system also carries certain risks, and some are more or I(
the same as listed above. For example, the provincial rural tax and
RD taxes could rise faster than inflation (and in fact some of ther
ave), and a new policing tax will start in 2007. No form of local
government can isolate a community from risk.
Appendix 1: Glossary of Terms
• A d Valorem Taxes
Most property taxes are ad valorem taxes, as opposed to parcel taxes
taxes. Ad valorem taxes are taxes based on assessed property value.
bills are determined by multiplying the assessed property value by a
higher the property assessment, the higher the taxes. Ad valorem tax
as the amount of tax per S1000 of assessed value. A n ad valorem taN
per $1000 and an assessed value of S300,000 would generate a tax ol
$300 = $600).
• Assessment Authority
Property assessments in BC are determined by the BC Assessment A
independent provincial government agency. The service is financed t
tax levied at the same rate across the province. Municipal properties
rates as unincorporated properties, so these taxes would not be affect
incorporation of a rural community,
• Borrowing (Short Term)
Most municipalities borrow funds to make ends meet during the earl.
year (before tax bills are sent out) and then repay the loans when tax
received in the summer. Municipalities can't incur a year-end deficit
borrow money to balance their books at year's end.
• Borrowing (Long Term)
Municipalities can borrow funds for capital projects somewhat like a
house purchase. These are generally long term loans with terms of 10
depending on the loan market. The loans are arranged through the prc
Municipal Finance Authority. For most long term loans the municipa
provide an opportunity for voters to force a binding referendum on th
provincial approval is also required. A municipality's borrowing pow
the overall size of its annual tax collections.
• Capital Spending
Capital spending refers to the use of money for the infrastructure imp
(roads, parks, municipal buildings, etc) and for the purchase of vehicl
equipment. They can be financed in a number of ways, including usir
tax revenues, borrowing funds via long term loans, using reserve func
been put away over the years, and using grant money from the Provin
new municipality would receive start-up grants from the Province to t
transition from rural status to municipal status. The property tax impa
this report assume municipal money would be spent on capital projeci
financing plan, using annual tax dollars, short term grants, and long tc
developed as background for the analysis. See also Short-Term Assist
• Council (Municipal)
Municipalities are governed by elected municipal councils. In the case at
would consist of a mayor and 4 other council members. They are elected
three-year terms (just as the regional district director is now). The munici
would choose one of its own members to sit on the regional board as the
community's representative.
• ACRD
Stands for Alberni-Clayoquot Regional District. See also Electoral Area.
• Development Cost Charges (DCCs)
The Local Government Act allows municipalities (and, with more limits,
districts) to levy a charge against new developments to help fund improv(
expansions to infrastructure that are triggered by community growth. Eli
are limited to roads, water, sanitary sewers, drainage, and open space acq
• Electoral Area
Electoral areas are rural members of regional districts, as opposed to mur
members. Electoral areas have one director on the regional district board
case, the Alberni-Clayoquot Regional District. The regional district has ti
municipalities and six electoral areas. Sproat Lake is part of the larger Eh
Area D.
• Frontage tax
Frontage taxes are based on the width of your property (that is, its fronta
tax per front metre. Wider lots pay a higher tax than narrow lots because
more frontage.
• Home Owner Grant
The Province of BC provides annual grants to owners of residential prop(
provided it is their principal residence. Renters and owners of seasonal lyproperties are not eligible for the grant. In 2006 the basic home owner gn
maximum of $570 for owners under 65 years of age, and S845 for owner
older. Owners under 65 could not use the grant to reduce their net proper
below $350; owners 65 and over could not use the grant to reduce their n
below $100. The amount of the grant reduces as assessed property value
owners of low assessed homes get more than owners of expensive homes
owner grant would not be affected by municipal incorporation.
• Improvement District
Improvement districts are a form of local government authorized under 'II
Government Act. They are administered by an elected board of trustees.
Improvement districts are very limited in services they are allowed to prc
they are not eligible for infrastructure grants. There is no improvement d
Sproat Lake.
• incorporation
As used here, incorporation refers to changing a rural status COMMUt
municipality under the Local Government Act and Community Chart
municipality is created when the provincial cabinet issues the Letter
specifying its boundaries, its effective date of creation, dates of servi
numerous other matters.
• Levy
A levy is a more general term for a property tax, user fee, or charge I
service.
• Local Service Area
A local service area is a limited portion of a community that receive5
particular service. Water is often provided by way of a local service
regional districts and municipalities can have them. There can be Mt
like one for water and a different one for street lights. The taxes and
can be different than those in another area. LSAs allow a local gayer
apportion the costs of some services among properties on the basis a
they receive, recognizing that some properties benefit more, some
at all. Sproat Lake has three LSAs: for fire protection, for parks, and
the Community Association.
• M FA
MFA stands for Municipal Finance Authority. This agency of the prc
government borrows money on behalf of regional districts and munic
they need to finance capital projects using long-term debts. The MFA
borrowing requests from these local governments into one and then
required amount on various money markets, choosing the best rates p
property tax rates used to finance the MFA are uniform across the pr(
municipal properties pay the same rates as electoral area properties,
• Municipal Grants
All smaller BC municipalities (generally those under 15,000 resident
ongoing, unconditional grant from the Province each year, called the
Communities Grant. In recent years the Province has increased these
municipalities. All municipalities are eligible for a number of other g
as grants for planning projects (eg, updating the official community p
downtown revitalization designs, and for sewer and water projects; th
given on a case by case basis. There are also short term assistance gra
brand new municipalities to help in the transition to municipal status;
been included in the tax analysis in this report.
• Parcel Tax
A parcel tax is a tax levied on each parcel or lot. A l l lots pay the samc
A small lot would pay the same tax as a large lot.
• Provincial Rural Tax
With the exception of the University Endowment Lands, all areas of the p
that are not in a municipality pay the provincial rural tax. In 2006 this ad
tax was S0.70 per S1000 assessed value for residential properties. The pur
tax is to pay for road maintenance and RCMP costs provided to rural resic
the Province. I f municipal incorporation proceeds, the provincial rural tax
replaced by a municipal tax.
• Provincial Tax Collection Fee
Property taxes in rural areas are collected by the provincial Surveyor of T
then forwarded on to the various taxing authorities (such as the school dis
regional district, etc). The Province charges a fee for this service, equal to
the local taxes. Regional district taxes are subject to this fee, as are fire an
light taxes in improvement districts. The fee is added to the tax rates. I f th
district needs, say, SI0,000 in taxes for a service, the Province sets a tax r
service to generate a total revenue of S10,525. This extra amount is not sh
separately on tax notices; the rates shown for these local services have air
marked up 5.25% by the time residents see their tax bills.
• Referendum
A referendum is simply a formal vote. In the context of municipal ineorpc
referendum would involve a yes-no question asking voters i f they are in f
incorporating the community as a municipality. A "no" vote would signif
to remain under the electoral area model. The results of a referendum are
binding; it is up to the Minister of Community Services to decide whethe
incorporation should take place. The Minister is unlikely to overturn any
majority for incorporation, but the Minister's discretion may be important
results of a referendum are not clear — for example, i f the yes votes amoul
of all votes cast. The Minister has the final say in determining the format
question, the boundary, and the date for this type of referendum. A refere
municipal incorporation would be a full, formal process, using local gove
election laws.
• Restructuring
See Incorporation.
• Rural Tax
See Provincial Rural Tax.
• Short Term Assistance Grants
The province of BC makes grants during the first several years to assist a
municipality during the transition from rural status to municipal status.
• Ta x Shifting
A municipal council is free to choose the share of the total property tax lc
wishes to place on each different type of land use — residential, business,
The council could decide to use the same ad valorem tax rates across all t
properties, but this is relatively uncommon in BC. Most municipatiti
ad valorem tax rate for business properties than for residential prope
shifting some of the tax burden away from the residential properties
commercial sector (this is the rule in rural status communities).

Sproat Lake Municipal Incorporation Study

Transcription

Similar documents

February 2012

August-September 2013

Municipalities and Information Society in Portugal

August-September 2014 - Municipalité d`Ormstown

Municipality of L`Orignal, ON, Canada

WE ARE THE PLACE TO CHILL AT THE LAKE

Get Your Kicks this Fall with LWYSA!

info terrasse - Municipalité Terrasse

Info Mille-Isles February 2012

Municipalities of the Central BiH for Europe Bulletin - nvo