While residents now have a new bridge ($105 million plus), and are planning for a new Crystal Pool ($69.4 million), plus fire hall and emergency centre ($35.9 million), tax revenue is needed to upgrade other aging City of Victoria infrastructure.

City staff are now developing asset master plans and condition assessments to determine how much capital investment is actually needed – it will likely be hundreds of millions of dollars.“The infrastructure deficit is the difference between what you need to spend to do upgrades and the funding you will have available in the years you need to do those upgrades,” says Susanne Thompson, director of finance.

“The capital budget funding levels have reached sustainable levels for some assets (water), some are close to sustainable levels (storm drains), some projects are shaped through consultation with the community (park upgrades), some require additional analysis to determine the required funding levels (sewer, equipment and surface infrastructure such as street and traffic lights), and some fall short of recommended levels (facilities, roads and fleet),” says Thompson.

Even though the City doesn’t have the exact number, it knows it has an infrastructure deficit and has already started increasing funding levels for infrastructure renewal. For example, for 2017 the planned spending and saving in reserves from property taxes and user fees was about $44 million combined with utilities which follow a pay-as-you-go approach.

“Never before now has careful stewardship of our assets and tax revenue been more important – until all these infrastructure costs are known and addressed, any financial decisions need to be conservative,” says Stephen Ison, board member with Grumpy Taxpayer$.

Nationally, the Canadian Infrastructure Report (2016) puts the dollar replacement value of assets in poor and very poor condition at $10,000 a household (Page 12). In Victoria there are 49,212 private households according to the 2016 census.

That provides a rough estimate of almost $500 million for its infrastructure deficit, although it may be more since Victoria is considered an older city. The report included costs for potable water, wastewater, stormwater, roads, bridges, buildings, sport and rec facilities and transit.
City of Victoria was one of the few major jurisdictions not to participate in the Canadian Infrastructure Report.

There were fewer than 60,000 residents in either Victoria or Saanich, and only a few thousand people in Sidney. Langford, Colwood and View Royal were only a twinkle in someone’s eye.

The same year British Columbia also ‘boldly went where no one had gone before’ and corralled a ragtag group of villages, towns, cities, and the spaces in between, into one administrative unit. The primary legislation governing regional districts eventually became the Local Government Act, although certain aspects of the Community Charter of 2003 also apply.

Unfortunately, during the last few generations the public has accumulated a widely held but false set of beliefs or myths about the Capital Regional District (CRD) which we hope to dispel.

1. CRD is a level of government. A common misconception, but the CRD is not a government. It’s an administrative unit and a forum where a board of 24 meets to deal with regional issues and needs. It does not have the power to implement decisions when opposed by local authorities.

2. CRD is a democratic institution. The CRD chair and all but three members of the board are not directly elected by popular vote or directly accountable for decisions and actions. So, 21 directors are selected or appointed by the various municipalities, bolstered by another 24 alternate directors who are also unelected. The board oath of allegiance does not require directors to act in the interests of the region.

3. CRD has taxing authority. It has no powers of taxation in its enabling legislation and can’t directly impose and collect taxes. It receives most of its revenue from an agglomeration of 13 municipalities and their taxpayers through annual assessments.

4. CRD directors represents an equal amount of population. Not at all. Municipalities are allocated one director for each 25,000 in population or portion thereof. Policy decisions are made by the board some of which affect the entire CRD. Population per director ranges from 2,221 per Highlands director to 22,153 per Saanich director. Then there’s ‘weighted votes’ made on funding decisions that vary from a population of 2,221 for the Highlands to 5,780 for Langford.

5. CRD is well run and efficient. After an epic and rancorous debate over regional sewer treatment that eventually required the province to step in – and $65-million wasted before agreement – the ineffectual CRD became a major issue for taxpayers. From animal control to parks to transportation, many of the roles and responsibilities of the CRD overlap with its constituent municipalities.

6. CRD is a transparent organization. The most striking thing about the CRD is its complexity: It’s not uncommon to have 1,000-page agendas or budget documents. There are 25 standing committees and select committees, along with a total of 53 committees, boards and commissions, topped up with appointments to 16 external boards. There are 155 inter-municipal arrangements, agreements between one or more municipalities administered by the CRD. Each of these separate functions requires its own legal agreement, financial formulas, management committee and CRD staff to administer. (There’s also 201 so-called ‘good neighbour’ agreements, separate voluntary integrated service delivery (ISD) arrangements organized among municipalities, separate from those administered by the CRD).

7. CRD services are paid for by everyone. True, every taxpayer in the South Island contributes to the operation of the CRD administrative operations. But, each municipality is also assessed a different amount depending on which of the 210 local, regional or sub-regional services they receive.

8. CRD is a low-budget operation. The CRD consolidated operations and capital budget this year totals almost $500-million, the largest budget in the region including Victoria or Saanich. The CRD has grown dramatically from six to 13 municipalities – Saltspring will hold a referendum in September to decide on forming a municipality – and three electoral districts across the South Island from Port Renfrew to the Gulf Islands.

9. CRD focuses on sewage treatment, water conservation, and managing parks. The CRD’s mandate has mushroomed to include 210 services, along with responsibility for the Capital Regional Hospital District and the Capital Regional Housing Corp. A recent addition was taking on duties for emergency management in the region for disasters like earthquakes.

10. CRD employs a couple of hundred people. It has morphed into a large bureaucracy especially during the last few decades. Now the staff complement totals more than 1,000, with 530 regular staff, 41 term positions, and 441 seasonal and casual staff housed around the district.

These myths aren’t only carried around by the bewildered public, but also by some elected officials and their staff. At the end of the day, the taxpayer has a CRD that’s undemocratic, dysfunctional and unaffordable, a situation that cannot continue for the taxpayer.

Better and more responsive local governance would help grow a $15-billion regional economy.

During the summer of 2016 the province struck the Capital Integration Services and Governance Initiative (CISGI) to review the governance and operation of the CRD. The public and local politicians eagerly await its recommendations and for the province to assume some leadership in shaping local government.

Since the regional district blueprint was introduced a half century ago there’s no other jurisdiction in North America – maybe the world – that has copied this alien approach to managing municipal affairs.
Reprint this Opinion Column with credit to Grumpy Taxpayer$ of Greater Victoria please.

VICTORIA – Grumpy Taxpayer$ of Greater Victoria loudly applauds the province for moving to improve municipal services, but argues that bold action bolstered by public input will be needed to make much-needed changes to a badly broken system.

The province recently announced that two companies – Circle Square Solutions and Urban Systems – will work with the bigwigs in the 13 municipal governments and the Capital Regional District (CRD) to make recommendations to explore ways to integrate services and governance in the capital region. The report is due in October.

“The road to stalemate is often paved with good intentions and studies,” says Stan Bartlett, chairperson of Grumpy Taxpayer$ of Greater Victoria. “Where the study makes clear recommendations, bold action will be needed to improve the badly broken 50-year-old CRD.”

Taxpayers have dealt with municipalities and the CRD on many levels for decades, and every year at this time they also must send a cheque to the municipal office, says Bartlett.

“A taxpayer’s experience has not always been positive and they may have legitimate ideas on how to integrate services and improve governance. It would also be helpful, not to mention good politics, if the public supports any changes,” says Bartlett.

Grumpy Taxpayer$ urges the Capital Integration Services and Governance Initiative recommend:  a separately elected chair and directors at the CRD, an oath of office to reflect regional responsibilities, term limits for directors, and streamlining the 220 plus programs the CRD manages.

 Importantly, the creation of a ‘Ministry of Municipal Affairs’ solely dedicated to addressing municipal issues would facilitate making these changes.

 In short, we advocate a renewed CRD that’s open, accountable and transparent. It needs to be designed with the power to carry out clear responsibilities for the optimal operation of the region.

Despite the tight five-month time frame for the study, public hearings and written submissions should be welcomed.

Hiring a firm headed by former BC Liberal cabinet minister George Abbott is an inspired choice by the province, says Bartlett. He’s a well-respected former minister of community, aboriginal and women’s services and worked with the Union of BC Municipalities to pass the Community Charter, one of the main underpinnings of local government.

Grumpy Taxpayer$ calls for all the region’s taxpayers to send along ideas on improving municipal services to George Abbott, c/o Circle Square Solutions and Urban Systems, both located in Victoria.

BACKGROUND:

Consultants chosen to facilitate work on governance and service integration,  https://news.gov.bc.ca/releases/2016CSCD0028-000910

 ‘Municipalities need expert help’ (May 29) and ‘Dancing around amalgamation’ (June 3), Times Colonist editorials

Apr. 12, 2016 – There are a number of reasons why the Capital Regional District hasn’t put a shovel in the ground, wasted more than $65-million, shocked the public with its ineptness, and needed a six-month extension to present a plan to the federal government for regional sewage treatment.

In cost – a billion, maybe closer to $2-billion by the time all is said and done – it dwarfs any other regional capital project to be attempted. In expertise – sewage treatment is not something municipal politicians or the public are that knowledgeable about – it requires scientific and technical understanding beyond the grasp of most. In complexity – the project involves a daunting multiplicity of jurisdictions, from municipal, to provincial, to federal – it simply doesn’t get more challenging.

But above all, the sewage treatment project is symptomatic of a broader failure of CRD governance and fated to be an expensive boondoggle from the start, according to Grumpy Taxpayer$ of Greater Victoria. The wrong institution with inadequate powers and expertise, lacking public legitimacy and support, was given the task.

“I’m qualified…I will faithfully perform my duties of my office…I will disclose any direct or indirect pecuniary interest I have in a matter…I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth II…”, perhaps the lack of clarity around its role all starts during the oath of office and allegiance.

Before taking one of the 24 seats at the board table, directors are faced with a dilemma – do I vote for the interests of my municipality, district, town, city, or the interests of the region as a whole?

Because of its structure the CRD is an unaccountable level of government and its directors are not regionally accountable for their decisions, good or bad. The dual and often conflicting roles have been at the heart of the failure to reach a consensus on sewage treatment.

At election time every four years Victoria voters recommend three councillors to the board and in Saanich, the top four in the polls get to sit on the board. In both instances the mayor automatically gets a seat. So what are their stances on the issues of the day and do they stand up to scrutiny?

Sidney, North Saanich, Central Saanich, Oak Bay, View Royal, Colwood, Metchosin, Highlands and Sooke councils each appoint their mayor. While Langford council appoints two councillors, Mayor Stu Young chooses not to be a board member of the CRD. In the three electoral districts of Salt Spring Island, Southern Gulf Islands and Juan de Fuca, directors are elected directly and presumably held to higher standards by voters.

The dysfunctional structure of the CRD also makes for a punishing workload for directors.

It tries to keep track of 220 various boards, commissions, agencies, programs, committees over a huge territory – it’s a wonder anyone even wants to sit on the board. The chair is elected for a year, hardly a term that allows for organizational stability and progressive leadership. For four years directors are also burdened with the critical role of the Capital Region Hospital District Board, various other committee roles, all the while trying to help run their own municipality and get elected.

Even more roles are being added for this stressed institution. The province has just signed a new cost-shared regional emergency management partnership to work with CRD municipalities and electoral areas for emergencies or disasters that are multi-jurisdictional or impact the entire region.

If there’s one key takeaway for the taxpayer from this fiasco, it’s that they should be very worried that this initiative and others are being administered by an institution with fundamental governance issues which even its’ board members acknowledge need addressing.

In a recent important board vote only 14 of 24 directors were able to vote on the CRD’s $263-million consolidated operating budget because of conflict of interest issues. As for Oak Bay and Sidney, neither the director or the alternate were able to vote for fear of conflict.

The province needs to amend the founding legislation of regional governments to make them directly electable and accountable. Once the big bills start arriving, the taxpayers must also demand the CRD evolve into a more democratic institution worthy of a citizen’s respect.

In this, the 50th anniversary of the CRD, cake and candles won’t cut it.
Grumpy Taxpayers of Greater Victoria Society is a citizen’s advocacy group dedicated to accountable government, lower taxes, and less waste.

Ask around and most lifelong residents haven’t a clue, or warm and fuzzy feelings about the CRD and its lack of user-friendly qualities. A variation of Winston Churchill’s famous quote about Russia comes to mind, “The CRD is a riddle wrapped in a mystery inside an enigma.”

We do know that the CRD recently tabled a preliminary 2016 operating budget of $217-million and a capital budget of $99-million, for a byzantine range of more than 200 services and sub-services, all delivered by about 1,000 staff (including hospital services and housing authority) to 375,000 people in a region stretching from Port Renfrew to the Gulf Islands.

Those are dollars for the CRD excluding the regional hospital district and the regional housing corporation which also falls under their bailiwick. Those are dollars e-x-c-l-u-d-i-n-g the $60-million wasted to date and the big bills yet to arrive on the regional sewage fiasco. It does include the directors doubling their own wages a couple of months ago without any public input.

That’s the riddle.

But most taxpayers just want to know,’What are the proposed budget increases going to take out of my pocket?’

That little tidbit is not easily found in a staggering 1,000-pages of budget documents, among pretty pie charts designed to make sense of it all, or in a 16-paragraph press release.

As it turns out – thankfully some media took up the challenge of hide-and-go-seek – the weary taxpayer may be facing as much as 7.6 per cent more in property tax rates.

The proposed increases in taxes in the 16 CRD jurisdictions range from 7.6 in the Southern Gulf Islands, to a low of 2.3 per cent in Oak Bay, with most getting away with about 3.5 per cent or triple inflation. The lucky devils in the Juan de Fuca Electoral District will see their taxes decrease by 4.06 per cent.

If all these numbers are starting to make your head spin and possibly hurt, I challenge you try to figure out how the 24-director CRD board votes on items like budgets.

That’s the mystery.

Bet you didn’t know that there are really 81 votes up for grabs with some directors having more voting strength than others. Saanich has 22 votes, while Victoria has 17, almost a majority between them. The remaining jurisdictions have ‘voting strength’ anywhere from one to six, all based on one vote per 5,000 in population determined by the last census.

Pity that important information is not detailed on the CRD website.

One of the priorities of the CRD is public engagement and communications, and they’ve drafted a compelling ‘public participation framework’ document of some 10 pages. It’s time the CRD treated these goals seriously and made itself more user-friendly for the taxpayers.

We just want to know, ‘How much are my taxes going up and who voted to increase them so much?’

That’s the enigma!