B.C. Municipalities Face Millions in Costs from Government Downloading

Municipalities in British Columbia are grappling with substantial financial burdens as they report millions of dollars in costs resulting from responsibilities shifted from senior levels of government. This “downloading” of expenses has raised concerns about the ability of local governments to maintain essential services such as roads, parks, and community centers.

The city of Coquitlam, a suburb of Vancouver with a population of approximately 150,000, estimates that provincial government downloading will cost the city around $37.6 million from 2021 to 2024. This amount equates to an effective tax increase of 18 percent over the four-year span. According to Councillor Robert Mazzarolo, local budgets are being stretched thin due to the increasing responsibilities being placed on municipalities. “The money that we already can get is barely enough to take care of what we already are obligated to take care of,” he stated during a council meeting.

Coquitlam’s report highlights various areas where financial pressures have arisen, including increased expenditures for police and fire services due to insufficient provincial support for housing and mental health issues. The city has also invested approximately $17 million in affordable housing projects and $1.55 million in emergency responses related to a provincially-operated mental health and addiction center.

Other municipalities are also feeling the impact of downloading. In 2024, the city of Kamloops identified $13.1 million in costs associated with these responsibilities, along with an additional $122 million in potential future impacts, particularly concerning orphan dikes and inherited dams. Kamloops has noted that increased spending on emergency responses to social issues, such as the toxic drug crisis, has further strained its budget.

Vancouver has calculated a staggering $353.1 million in downloading costs for 2022, offset by $44 million in revenue from senior governments. Meanwhile, Penticton documented $4.6 million in provincial downloading costs related to public safety between 2019 and 2023.

Despite these challenges, some city councils are hesitant to quantify the financial impacts of downloading. In New Westminster, a proposal to calculate these costs was dismissed, with a councillor arguing that without a clear definition of downloading, any figure produced would be arbitrary.

Amidst the municipalities’ concerns, the B.C. Ministry of Municipal Affairs contends that the provincial government has provided significant support. The ministry highlighted a one-time grant program of $1 billion for infrastructure distributed among all local governments, alongside $51 million for new housing legislation.

Additionally, the province allocates $24 million annually for the Local Government Climate Action Program, with $71.7 million provided upfront in March 2024 to support climate initiatives.

The federal government has announced plans to invest $51 billion over the next decade to improve local infrastructure, with ongoing funding of $3 billion per year thereafter. However, these federal initiatives require provinces and territories to match funding and reduce development charges that inhibit housing supply.

In light of the financial strain, the Federation of Canadian Municipalities has called for reforms to how cities generate revenue. According to Rebecca Bligh, president of the federation and a Vancouver city councillor, municipalities are increasingly picking up responsibilities traditionally managed by provincial and federal governments. She emphasized that municipalities manage about 60 percent of Canada’s public infrastructure but face outdated funding mechanisms dating back to 1867.

The federation advocates for indexing federal transfers to municipalities based on GDP and population growth, alongside expanding the methods by which municipalities can utilize federal funds. As discussions continue regarding the future of municipal funding, local governments remain vigilant about the impacts of downloading on their operations and services.