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UBCM Executive Statement

April 2, 1992

The Union of B.C. Municipalities has a long tradition of advocating and practising
consultation and cooperation with provincial governments, We believe government
works best for the people when they recognize economic realities, agree not to
arbitrarily off-load fiscal responsibilities, and avoid non-productive confrontations ~
all of whieh is best achieved through open consultation.

UBCM has also had a tradition of advocating fairness, equity and stability In property
taxation — measures such as actual-value assessment, revenue sharing and many more
measures are a result of local and provincial governments working together,

Following an extraordinary, Special Executive meeting, the UBCM Executive
concluded that many of these traditions have not been respected by the recent
provincial budget and associated announcements:

Consultation, a hallmark of open government, was absent from any of the
provincial government's plans affecting local government. The changes to the
unconditional revenue sharing stabilization regulation, a carefully crafted
product of joint consultation, was changed the day before the budget by Cabinet
without notice or discussion with us.

Trust or partnership, that was embodied in our agreement to set aside a portion of
our revenue sharing funds in a “rainy day” fund, has been seriously eroded by the
unconditional grant regulation changes. .

Equity and stability in property taxation have been thrown into turmoil by the
elimination of the supplementary home owner grant, The supplementary home
owner grant was introduced to address the wicle variation in school taxes paid by
average home owners in different parts of the province and the use of assessed
property valucs as a measure of ability-to pay. The supplementary home owner
may not have been the prefect solution but it did address an inequity. We have
atv established bench-mark to measure progress with respect to enhancing equity
and stability in property tax and these are set down in Financing Local
Government - supported by local governments throughout B.C. in 1989, 1990 and
again in 1991, We set an overall plan for tax reform that was comprehensive and
provided a guide to progressive reform, Parts of that plan have been undone, old
inequitics have resurfaced, and all without a vision and plan of the future
directions the provincial government has in mind,