Less scrutiny, fewer electoral approvals will be required
Municipal taxpayers are concerned that councils in Greater Victoria and across BC can now borrow twice as much money without electoral approval.
The province quietly signed BC Order in Council # 276 on June 9 doubling the municipal lending threshold. Councils can now borrow 10% of annual revenue instead of 5 percent.
“Councils can now borrow twice as much money than previously, eliminating the need for electoral approval and weakening council accountability to electorate,” says John Treleaven, chair of Grumpy Taxpayer$.
“What problem is the province trying to solve by this major change?”
The risk is that there will be diminished democratic oversight and less ability for residents to voice their opposition especially to substantial loans. With less public awareness, there will also be less transparency and reduced public trust, says Treleaven.
With the threshold for borrowing escalating dramatically, pesky municipal taxpayers will increasingly need to turn to a municipal or provincial election to register their views on large projects, Treleaven says.
The regulatory change means fewer municipal loans will need to go to electoral approval though an alternate approval process (AAP) or a referendum.
Approvals for municipal loans through the alternate approval process (AAP) proceed unless 10 percent of voters register their opposition within a short time period, often during the summer or holidays. Elector approval can also be gained through a referendum and a simple majority.
In recent years, there has been considerable public backlash against some multi-million capital projects in the province, the huge loan amounts, or the reverse onus required to defeat an AAP.
There has been bitter disputes recently about AAPs in Nanaimo, Kamloops and the Capital Regional District. Saanich residents have until June 25 to oppose the district borrowing up to $150 million for a new operations yard.
The new regulation also changes short term borrowing by municipalities, increased by 300 percent and calculated by multiplying $150 by the population of the municipality.
In view of these changes, provincial oversight is even more critical.
DIG DEEPER
Province changes borrowing criteria for municipalities, now easier to borrow without public vote, CHEK News, June 24, 2025.
Province changes borrowing criteria for municipalities, now easier to borrow without public vote
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