Langford Mayor Scott Goodmanson has welcomed a decision by the province to increase the amount of money B.C. municipalities can borrow for capital projects, without having to hold a public vote.
“Increasing borrowing thresholds and reducing red tape empowers local governments to respond more effectively to community needs,” said a statement by Goodmanson.
The province’s amendment to the municipal liabilities regulation and the short-term capital borrowing regulation will give cities like Langford quicker access to financing to deliver capital projects – such as infrastructure or amenities – that support population growth and housing development.
“With growing populations and ambitious housing targets, municipalities face mounting financial pressures,” continued Goodmanson, who says partnership with the province on infrastructure costs is “essential.”
“Working together will allow the city to deliver infrastructure efficiently, reduce costs for local governments and ease the burden on taxpayers."
The amended regulations took effect on June 9.
Municipalities can now borrow up to $150 per capita without elector approval, up from $50, when the term of the borrowing is less than five years.
For larger amounts of debt or longer-term debt, municipalities can borrow twice as much without elector approval – increased from five per cent to 10 per cent of dependable revenue.
The change has been made in response to concerns raised by municipalities about the cost, complexity and risk of delays associated with implementing capital projects.
By increasing the borrowing threshold and removing the need for a public vote, municipalities will save time and money, said the province in a news release.
