Is a fair share agreement on the horizon for Prince George?
Every year the provincial government hands out millions of dollars to dozens of B.C. municipalities as part of so-called fair share agreements.
The agreements are intended to put money into rural communities for critical infrastructure.
Municipalities have argued that while major projects in industries like resource extraction, gas pipelines and forestry take a heavy toll on local infrastructure, the projects generally exist outside municipal borders and do not contribute to their tax base.
Agreements like the BC Hydro Site C Regional Legacy ($2.4 million per year for the Peace River Regional District), Resource Benefit Alliance ($250 million over five years for 21 communities in Northwestern British Columbia) have helped revitalize the failing infrastructure in those communities.
With many rural communities reaping the benefits of fair share agreements, it begs the question: what about Prince George?
Houston Mayor Shane Brienen was instrumental in securing the Peace River Agreement. He says it took a decade of research and negotiations. While they didn’t contact Prince George reps to gauge interest in joining the agreement, he says it was never their intention to do so.
“When the 2019 Northern Capital Grant was announced we were extremely surprised to see it included Fraser-Fort George,” he says.
“I talked to many happy mayors that were surprised by the funding, unfortunately, we were well into our negotiations and adding Fraser Fort George would have at that time slowed us down considerably as we had no data at all for that region and at that point it wasn’t our call to add another area.”
Brienen says that by including Fraser-Fort George in the Northern Capital Grant, the province has, in a way, acknowledged that there is a case for a fair share agreement for Fraser Fort George.
“As we got close to an agreement over the last year, I did speak with many elected people from the Regional District of Fraser-Fort George who wanted to know more about the process and many of those conversations were with Prince George Mayor Simon Yu,” says Brienen.
Yu says Prince George is ready and willing to sign a fair share agreement and the wheels are now in motion.
“I have directed the administration to look into an agreement and how it would be possible to enter into one,” says Yu.
“The infrastructure problem in Prince George is a serious issue that we need more funding for.”
“It’s not that we’re being looked over so much as being taken for granted,” says Yu. Many large businesses use Prince George as a supply center for both goods and manpower, says Yu. However, the municipality reaps little of the benefits, as the projects are located outside of our boundaries and the taxation goes to the province.
“The resources should benefit the entire province, but the revenue goes where the majority of the population lives,” says Yu.
Yu says it will likely take several years to accumulate the data required to proceed with a provincial fair share agreement for Prince George.
However, the benefits would help put Prince George in the right position to address the city’s infrastructure and capital project needs.
According to the province, their door is always open when it comes to potential new agreements.
“The ministry is available to engage in discussions, as well as provide support and advice, with the City of Prince George at any time,” says Ministry of Municipal Affairs spokesperson Kerri Ralph.
The ministry says since 2017, the province has provided over $55 million to the City of Prince George through various grant programs, both application-based and direct delivery.
Ralph says those programs have assisted in constructing new and expanded municipal infrastructure and supported local community services.
