City of Nanaimo
City Position
/ 7.3SFN Treaty Process
Issue
/ Provision of Services to Lands Outside of the City of NanaimoPosition / The City of Nanaimo will not consider providing services to lands outside of the municipality's jurisdiction until an appropriate standard of basic services, including sewage collection and water distribution, has been provided to all existing City households.
After – and only after – services have been provided to all existing City households, the City of Nanaimo may consider providing services to lands outside of the City's jurisdiction. Consideration will be given in cases where:
• the proposed development of the lands in question is not inconsistent with the growth management laws, policies and regulations of the City,
• the community requesting the service agrees to pay the full capital and operating cost of providing the services, and
• the community requesting the service agrees to pay a one-time access charge to offset, in an equitable manner, past expenditures made by City taxpayers to establish the service
Discussion / There are households within the City of Nanaimo that, regrettably, have yet to receive an appropriate standard of basic municipal services, including water distribution and sewage collection. The problem, put simply, is one of cost. Individual homeowners cannot afford to pay the full cost of extending the necessary infrastructure systems to their properties. The City, likewise, does not have the resources to provide significant financial assistance to the homeowners. The elimination of $3,000,000 in annual provincial government transfers to Nanaimo has contributed significantly to the City's fiscal constraints.
The City's first responsibility is to its own citizens, its existing taxpayers. Once all existing households have received the necessary municipal services, the City may consider extending services to lands outside of the municipality's jurisdiction. It should be understood, however, that the City does not believe that it is in the community's interest to provide services to such lands in every instance. Requests for service provision would be considered in accordance with the following guidelines:
• The proposed development of the lands in question must not be inconsistent with the City's growth management laws, policies and regulations ¾ With the direct participation of its citizens, the City has spent considerable sums of money and time developing a multi-tier land-use planning framework. The framework promotes rational planning, protects private property rights and allows for the orderly development of costly municipal infrastructure. Lands that are outside of the City's jurisdiction are not addressed in the City's planning framework, and are not typically considered in the City's related infrastructure planning efforts.
Notwithstanding their exclusion from the City's land-use and infrastructure planning processes, certain lands outside of the municipality's jurisdiction may be well-situated for specific types of development. In these cases, service provision may be contemplated, subject to financial
considerations. In other instances, however, the lands in question will, from the City's perspective, be poorly situated for intended uses. The lands, for example, may be located beyond the City's urban containment boundary; or, the proposed development on the lands may be incompatible with City policies. In these situations, service provision would likely not be considered.
• The community requesting the service must agree to pay the full cost of providing the services ¾ Where the proposed development of the lands in question is not inconsistent with the City's planning framework, the City will consider carefully the financial implications of providing services. All communities requesting services must agree to pay the full capital and operating costs associated with service provision. City of Nanaimo taxpayers, it should be clear, will not be expected to pay any portion of the capital or operating costs associated with providing services to lands outside of the City's jurisdiction.
• The community requesting the service must agree to pay a one-time access charge ¾ Communities requesting services must agree to pay a one-time access, or "buy-in" charge to offset, in an equitable manner, past expenditures made by City taxpayers to establish the service.
It is interesting to note that the City's position on payment for services is entirely consistent with the position adopted in recent years by the Province of British Columbia. The Province, through the Ministry of Community, Aboriginal and Women's Services (formerly Municipal Affairs), refuses to contribute toward the cost of providing basic municipal infrastructure to areas of new growth. The Province's view, which is shared by the City, is that public funds should be targeted at existing, established areas that have servicing deficiencies. New areas can pay their own way.
Other Comments / It is worth noting that, in accordance with past agreements, the City of Nanaimo provides water, sewer and fire protection services to the Snuneymuxw First Nation on Indian Reserve #1. Households on Indian Reserve #1 also benefit directly from other important municipal services such as recreation. Figures from the City's finance department reveal that water, sewer and fire protection are currently provided at rates below the City's cost-recovery levels. Similarly, despite attempts by the City to secure payments, the SFN does not make any contribution, over and above user fees, to the municipality's recreation function (City taxpayers, and residents of Electoral Areas A, B, C and D all make contributions over and above user fees).
Related Materials / City Position 7.1: City of Nanaimo Involvement in the Snuneymuxw First Nation Treaty Process
Fall, 2001 Page 1 of 2