Municipalities applaud expanded borrowing powers

Municipalities in BC are applauding a move to make it easier to finance capital projects. The Chamber is cautiously optimistic about the change, though businesses are wary of enabling any level of government to take on more debt.

“There’s no question that we want to see the public sector work more efficiently, but we also are clear that we need investments that help the private sector grow our economy,” Chamber CEO Bruce Williams said. “Innovation led by business is key for us to create the good jobs and creative solutions needed to solve many of the issues affecting our society that government itself is unable to fix.”

The Province amended the municipal liabilities regulation and the short-term capital borrowing regulation to give municipalities more flexibility to plan and finance infrastructure projects that support population growth and housing development.

Municipalities can now borrow up to 10% of their annual revenue, without having to hold a public vote. The changes are a response to concerns raised by municipalities about the cost, complexity and risk of delays associated with implementing capital projects.