Cities need more power to balance their budgets, says urban consultant

A city manager turned urban consultantsays some B.C. municipalities arestruggling to balance their budgets because they need more financial independence from seniorgovernments.

Gaetan Royer, former city manager for Port Moody and now president ofCityStateConsulting Group, says provincial and federal governments restrict the ways municipalities raise money.

Two northern B.C. cities have been hard hit. Dawson Creek city council isconsidering cutting RCMP positions to save money, even though there has been a rise in property crime. Meanwhile,Prince Georgecity council wantstoborrow $32 million to pay for city repairs.

"Everything that the municipality does is subject to rules that are set by the provincial government, and to a large extent, by the federal government," he said.

"The ability to raise revenue is determined by the province ... and the tools are very limited. They are limited to property taxes ...fees and charges."

Struggling cities

A 2014 reportco-authored by Royer found that municipal governments are taking on more responsibilitieswithout increased funding.

"I think a lot of it has to do with the way that our government levels are structured and the fact that municipalities are treated like children," Royer told Daybreak North host Carolina de Ryk.

Instead, he thinks cities should be able to raise more revenues and not depend on the provincial government for grants.

"The fact that the province decides at one point through a grant system to be magnanimous and provide money to certain communities and not to others is not an appropriate way to run a government."

Funds for projects

Royer points to cities like New Yorkthat have access to income tax, a hotel tax and other forms of taxation. They havemore independencebecause they can make decisions locally.

"It also allows for resources to be flowing in a more continuous level, in a more regular fashion that is tied to how well the economy is doing," said Royer.

Royer would prefer to see funds from higher levels of government allocated to cities on a per capita basis, orin relation to specific projects.

Municipalgovernments provide the most direct services toresidents of any government, he added.

"Ifyour smoke detector is triggered, you're going to have a million-dollar truck pulling out of the fire hall coming with five trained people on board to come in to rush to help you. Which government ever does that?"