Local Governance in BC Excellence Through Collaborative Partnerships
Local Governance in BC - Excellence Through Collaborative Partnerships Moderated by Tom Mac. Donald Local Government Management Association ¿ ¿
Local Governance in British Columbia – Collaborative Partnerships Presented by: Brian Walisser & Gary Paget, MCS ¿ ¿
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
Canada in the World Canada World Urban Forum, June 19 – 23, 2006
British Columbia in Canada British Columbia World Urban Forum, June 19 – 23, 2006
British Columbia u Canada’s western-most province u Total Area: 945, 000 km 2 u Population: 4, 196, 000 u GVRD = 51% population u Canada’s 3 rd largest metro area u Highest Point: Mt Fairweather, 4, 663 m u Vancouver Is. = larger than Belgium u 95% uninhabited World Urban Forum, June 19 – 23, 2006
Beautiful British Columbia City of Vancouver: Downtown & Westend World Urban Forum, June 19 – 23, 2006
Beautiful British Columbia Sushwap Lake: Okanagan Valley City of Nelson Pitt Lake: Pitt Meadows World Urban Forum, June 19 – 23, 2006
Beautiful British Columbia Victoria’s Fairmont Empress Hotel World Urban Forum, June 19 – 23, 2006
Beautiful British Columbia Tumbler Ridge Town Hall World Urban Forum, June 19 – 23, 2006
Scope of BC Local Government System Protection – police & fire Utilities – water, sewer Transportation – local roads Community Services Mostly Local / Regional District Regulation – property, people Regional & local planning Schools Hospital capital Rural police / roads Provincial – Some Local Tax Contribution Health services Redistributive programmes Highways Social welfare World Urban Forum, June 19 – 23, 2006 Mostly Provincial
Key Elements of BC’s Local Government System ¿ Responsibility – assigning matters to the most suitable stream of government ¿ Financial independence – providing financial and other resources adequate to meet service demands ¿ Democratic decision-making – ensuring good democratic & accountability processes ¿ Intergovernmental collaboration – voluntary partnerships; collective institutions World Urban Forum, June 19 – 23, 2006
Responsibility: Multiple Streams ¿ In a complex world, complex organizations are natural, inevitable ¿ Flexible system and multiple streams needed to handle issues at proper scale: à Strong municipalities for local services à Regions “on tap”, not “on top” à Regions built on the concept of “soft” boundaries à Regions able to launch inter-local partnerships World Urban Forum, June 19 – 23, 2006
Responsibility: The Balance Regional Districts Ø “Borrowed” Powers Ø 1000’s of partnerships Municipalities Ø Most people (>85%) Ø Most $$ spent (>80%) Ø Broad powers World Urban Forum, June 19 – 23, 2006
Finance: Overview BC local governments are: ¿ ¿ Highly self-sufficient (especially larger cities) Highly autonomous…very limited oversight Subject to relatively few financial restrictions Beneficiaries of collaborative bodies that perform collective tasks World Urban Forum, June 19 – 23, 2006
Sources of Municipal Revenue 4% 9% Other Taxes 56% RD 19% MUN Transfers 31% Fees World Urban Forum, June 19 – 23, 2006 81% Share of Total Local Government Spending
Decision-making: Strong Local Democracy ¿ Overall goal is to match citizen demands with their willingness-to-pay ¿ For this to work, citizens need to: à Be empowered and informed à Have influence over (some) proposed decisions à Have confidence in integrity of elected officials World Urban Forum, June 19 – 23, 2006
Decision-making: Checks and Balances ¿ Direct provincial oversight reduced…but remains strong over finances ¿ Judicial supervision on procedure ¿ Administrative watchdogs and legislated protections in place (local and provincial) * Note: no powerful tribunal to upset local land use or financial decisions World Urban Forum, June 19 – 23, 2006
Intergovernmental Collaboration ¿ A key system attribute ¿ Not a “concession” by Provincial government ¿ Instead is a major design principle ¿ Revealed most clearly by: à Multitude of inter-local partnerships à Collaborating partner bodies World Urban Forum, June 19 – 23, 2006
Key Ingredients for “Success” Independent, Autonomous Local Government Units Articulate Local Government Association Resilience & Continuous Adaptation World Urban Forum, June 19 – 23, 2006 Commitment To Long-term Solutions Capable, Strategic Department (National or Sub-national)
Brian Walisser, Executive Director Brian. Walisser@gov. bc. ca Ministry of Community Services Local Government Policy and Research 6 th Floor, 800 Johnson Street Victoria, BC Canada V 8 W 9 T 1 World Urban Forum, June 19 – 23, 2006
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
The Collaborators Presented by: Todd Pugh, Civic. Info ¿ ¿
Collaborative Organizations ¿ High degree of collaboration between different interests within the system ¿ Relationships developed over time and based on respect each interest has for each other ¿ Practical recognition that there are opportunities to achieve benefits through collaboration World Urban Forum, June 19 – 23, 2006
History of Collaboration ¿ ¿ ¿ ¿ Union of British Columbia Municipalities (UBCM): 1905 Local Government Management Association (LGMA): 1919 Ministry of Community Services: 1934 Regional Districts: 1965 Municipal Finance Authority of BC (MFA-BC): 1970 British Columbia Assessment (BCA): 1974 Municipal Insurance Association of BC: 1987 Civic. Info BC: 1998 World Urban Forum, June 19 – 23, 2006
Reasons for Collaboration ¿ Intergovernmental Relations: à à ¿ Management Capacity Building: à ¿ Union of British Columbia Municipalities (UBCM) Ministry of Community Services (MCS) Local Government Management Association (LGMA) Collaborative Helper Organizations à à Municipal Finance Authority of BC (MFA-BC) British Columbia Assessment (BCA) Municipal Insurance Association (MIA) Civic. Info BC World Urban Forum, June 19 – 23, 2006
Dimensions of Collaboration ¿ Collaboration within the local government sector à Local government to local government ● ¿ BCA, MFA, MIA, Civic. Info Collaboration between the local government sector and others à Provincial, Federal, First Nations, Private Sector, International ● MCS, UBCM, LGMA World Urban Forum, June 19 – 23, 2006
Intergovernmental Relations ¿ Union of British Columbia Municipalities à à Represents local government interests to the provincial and federal governments Represents all 184 BC local governments - large and small - and facilitates inter-governmental cooperation 100% membership for 26 consecutive years, membership is voluntary History of collaborative policy development with the provincial government World Urban Forum, June 19 – 23, 2006
Management Capacity Building ¿ Local Government Management Association à à Promotes professional development and leadership excellence in local government Cooperation with educational institutions Job posting service Newsletter World Urban Forum, June 19 – 23, 2006
Collaborative Helper Organizations ¿ Civic. Info BC Ã Ã Comprehensive website for local government information Co-operative partnership between 9 associations and 180 local governments Library of sample documents - bylaws and policies Job postings, event listings, news stories, directories World Urban Forum, June 19 – 23, 2006
Collaborative Helper Organizations ¿ Municipal Finance Authority of British Columbia à à Owned by local governments Credit union or co-operative to pool borrowing needs and provide low-cost financial services Pools risk to achieve high credit rating All local governments including smallest enjoy lowcost borrowing World Urban Forum, June 19 – 23, 2006
Collaborative Helper Organizations ¿ The Municipal Insurance Association of British Columbia à à Non-profit liability insurance cooperative Maintains liability coverage needed for local government financial security Stabilizes liability insurance costs Provides risk management education World Urban Forum, June 19 – 23, 2006
Collaborative Helper Organizations ¿ British Columbia Assessment à à à Province-wide assessment of land improvements for local government taxation purposes Independent from local governments Consistent valuations regardless of location World Urban Forum, June 19 – 23, 2006
Case Studies: The What and Why of Collaboration ¿ Topics à à à Intergovernmental Relations: UBCM Collaborative Organizations: Pooled Borrowing through the Municipal Finance Authority Management Capacity Building: Local Government Management Association World Urban Forum, June 19 – 23, 2006
Todd Pugh, Executive Director tpugh@civicinfo. bc. ca Civic. Info BC 737 Fort Street Victoria, British Columbia Canada V 8 W 2 V 1 World Urban Forum, June 19 – 23, 2006
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
Case Study #1: Intergovernmental Collaboration Presented by: Richard Taylor, UBCM ¿ ¿
A Changed Relationship Provincial Legislation Regulation Mandates Proposals Issues Local World Urban Forum, June 19 – 23, 2006
A Changed Relationship Joint policy development and implementation ¿ From issues to policy development and legislation ¿ By provincial and local governments World Urban Forum, June 19 – 23, 2006
Intergovernmental Collaboration and the Community Charter ¿ ¿ ¿ Recognition as an order of government Acceptance of inter-dependence and value of horizontal relations Principles of municipal-provincial relations: Ã Ã Ã ¿ Mutual respect Notice and consultation Resolution of differences Specific tools: Ã Ã Ã Consultation requirements Consultation agreements Dispute resolution World Urban Forum, June 19 – 23, 2006
Intergovernmental Collaboration: Operationalizing the Principles ¿ Developing Consultation Agreements: Concurrent regulatory authority ¿ Reconciling provincial and local interests: Resorts Approval Harmonization ¿ Providing advice: Regulatory Best Practices World Urban Forum, June 19 – 23, 2006
New Intergovernmental Collaborations ¿ With provincial government in program delivery ¿ With First Nations ¿ With federal government on à Cooperation agreements: ● ● à 2 -way (local-provincial) 3 -way (federal-provincial-local) New Deal for Cities and Communities: ● ● first major tripartite agreement delivered by UBCM World Urban Forum, June 19 – 23, 2006
Intergovernmental Collaborations ¿ Why we did it ¿ What have been the results World Urban Forum, June 19 – 23, 2006
Intergovernmental Collaborations: Key Lessons Learned ¿ Have a shared vision ¿ Embrace incrementally ¿ Don’t need to be a big organization to be successful ¿ UBCM couldn’t do alone ¿ Accept that it doesn’t always work World Urban Forum, June 19 – 23, 2006
Key Ingredients for “Success” ¿ UBCM’s 100% membership ¿ Low level of fiscal dependency (members and UBCM) ¿ Provincial government support ¿ Internal consensus ¿ Policy based, non-partisan organization ¿ Diversity is natural not artificial World Urban Forum, June 19 – 23, 2006
Richard Taylor, Executive Director rtaylor@civicnet. bc. ca Union of British Columbia Municipalities 60 -10551 Shellbridge Way Richmond, British Columbia Canada V 6 X 2 W 9 World Urban Forum, June 19 – 23, 2006
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
Case Study #2: Pooled Borrowing Presented by: Steve Berna, MFA-BC ¿ ¿
MFA-BC Clients ¿ All 184 local governments: Ã Ã Ã Municipalities are both owners and clients 1 -share per local government = 1 vote = systemwide equality Guarantee each others’ debt Receive the same interest rate on debt regardless of size Smallest: Population 238 Largest: Population 2. 2 million World Urban Forum, June 19 – 23, 2006
MFA-BC Credit Ratings ¿ Proper financial controls can lead to: Moody’s à à à MFA-BC Province of BC Canadian Banks Standard & Poor’s *Aaa Aa+ Aa- * All 184 local governments receive these credit ratings regardless of size World Urban Forum, June 19 – 23, 2006 *AA+ AA-
Interest Rates – 10 year (fixed rate) Chartered Banks “AAA” Ontario Municipalities European “AAA” Borrowers (KFW) Province of Ontario (largest province) MFA-BC = = = 4. 95% 4. 80% 4. 74% 4. 70% 4. 66%* * All local governments receive this rate regardless of size World Urban Forum, June 19 – 23, 2006
What does MFA-BC Finance? World Urban Forum, June 19 – 23, 2006
Governance: Controlled by local governments ¿ Each of 27 regional districts has a representative on board ¿ NO provincial representatives ¿ Chair and Board of Trustees is composed of elected officials World Urban Forum, June 19 – 23, 2006
MFA-BC Governance Chair Annually elected from Members of the Authority 9 Trustees Annually elected from Members of the Authority 35 Members Annually appointed from Regional Districts 27 Regional Districts Representing 157 Municipalities World Urban Forum, June 19 – 23, 2006
Surpluses: Yours to keep ¿ When MFA’s investments earn in excess of budgeted amounts, excess is returned to the municipalities ¿ Total excess returned since 1991: » $525 million World Urban Forum, June 19 – 23, 2006
Financial Self-sufficiency ¿ No senior level of government support- not a hardship to taxpayers World Urban Forum, June 19 – 23, 2006
MFA-BC: Size Matters ¿ MFA Originated in 1970 with “A” credit rating ¿ In 1980 awarded “AAA” credit rating ¿ Total debt outstanding = $5 billion ¿ Investments managed = $2. 8 billion ¿ Leasing under administration = $60 million ¿ No MFA client has ever defaulted on a loan payment World Urban Forum, June 19 – 23, 2006
Why is MFA-BC’s Credit Rating Above the Provincial Government? ¿ Joint and several borrowing à ¿ Borrowing power formula- borrowing limits à à à ¿ Local governments guarantee each other’s debt Provincial government sets municipal debt limit and approves borrowing Each municipality has its’ own “debt limit” Formula is based upon each municipality’s revenues Debt Reserve Fund (DRF) à à Protection for investors in case of non-payment by local government (has never occurred) DRF is equivalent to two-times the largest day’s interest obligation World Urban Forum, June 19 – 23, 2006
How can others achieve? ¿ Contact MFA-BC - We will share our ideas at no cost ¿ Work with your senior levels of government to: Ã Ã Ã ¿ Establish guidelines Convince local governments to work together Build safeguards against “payment defaults” It works – MFA-BC has done it since 1970 World Urban Forum, June 19 – 23, 2006
Key Ingredients for “Success” ¿ 100% membership of local governments ¿ All members are equal and jointly guarantee debts ¿ Size provides economies of scale ¿ Independence from provincial government but cooperate with provincial government à à Establishes ‘rules of the game’ Watches over local fiscal health World Urban Forum, June 19 – 23, 2006
Steve Berna, Executive Director steve@mfa. bc. ca Municipal Finance Authority of British Columbia 737 Fort Street Victoria, British Columbia Canada V 8 W 2 V 1 World Urban Forum, June 19 – 23, 2006
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
Case Study #3: Capacity Building Presented by: Tom Mac. Donald, LGMA ¿ ¿
Case Study 3: Capacity Building ¿ Approximately 33, 000 thousand employees in British Columbia’s 184 local government jurisdictions ¿ No minimum level of education required however strong support and encouragement for professional development World Urban Forum, June 19 – 23, 2006
Case Study 3: Capacity Building ¿ Board of Examiners à à à Recognized in legislation Competency-based program of studies Employees at all levels encouraged to participate Involvement of Universities and Colleges Certification by three party board: MCS, LGMA, UBCM Encouragement of continuing professional development World Urban Forum, June 19 – 23, 2006
Case Study 3: Capacity Building ¿ Collaboration with Universities and Colleges à à à Identification of skills and competency needs Development of curriculum Partnerships in program delivery World Urban Forum, June 19 – 23, 2006
Case Study 3: Capacity Building ¿ Local Government Management Association à Municipal Administration Training Institute (MATI) ● ● à Foundation Leadership Communications Managing Employees Workshops World Urban Forum, June 19 – 23, 2006
Teamworks Coaching ¿ Local governments helping local governments ¿ Professionals helping professionals World Urban Forum, June 19 – 23, 2006
Key Ingredients for “Success” ¿ Broad-based organization ¿ Independence ¿ Collaboration with partners within the local government system and outside ¿ Provincial support World Urban Forum, June 19 – 23, 2006
Tom Mac. Donald, Executive Director tmacdonald@lgma. ca Local Government Management Association of British Columbia 737 Fort Street Victoria, British Columbia Canada V 8 W 2 V 1 World Urban Forum, June 19 – 23, 2006
Key Ingredients for “Success” ¿ Independent and self-sufficient local governments ¿ Strong unitary municipal association ¿ Collaborative organizations ¿ Strong and supportive provincial ministry ¿ Vision and commitment to the long-term World Urban Forum, June 19 – 23, 2006
UBCM MFA 157 municipalities LGMA Citizens 27 regional districts MCS CIVICINFO World Urban Forum, June 19 – 23, 2006
Local, National, International Assistance Tom Mac. Donald Executive Director tmacdonald@lgma. ca Steve Berna, Executive Director steve@mfa. bc. ca Richard Taylor Executive Director rtaylor@civicnet. bc. ca Local Government Municipal Finance Authority Management Association of British Columbia 737 Fort Street Victoria, British Columbia, Canada V 8 W 2 V 1 Union of British Columbia Municipalities 60 -10551 Shellbridge Way Richmond, British Columbia Canada V 6 X 2 W 9 World Urban Forum, June 19 – 23, 2006
Local, National, International Assistance Brian Walisser Executive Director Brian. Walisser@gov. bc. ca Todd Pugh Executive Director tpugh@civicinfo. bc. ca Ministry of Community Services Local Government Policy and Research 6 th Floor, 800 Johnson Street Victoria, British Columbia Canada V 8 W 9 N 7 Civic. Info BC 737 Fort Street Victoria, British Columbia Canada V 8 W 2 V 1 World Urban Forum, June 19 – 23, 2006
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