Regional District Finance

Regional Districts primarily finance their operations and services through property taxation. Each year, the regional district board must set their budget, through a Five Year Financial Plan, thereby determining the amount of revenue which will be needed. The amount to be collected by taxation is then apportioned between the regional district participants, which includes their member municipalities, electoral areas, and service areas.
 

By April 10th each year, the regional district must create and submit to the ministry its requisition. This requisition includes the amounts that will be needed for each service the regional district provides, and the proposed division of the amount between the various participants. It forms the basis for calculating the necessary tax rates which will be levied. The amount of taxes to be charged to each of the non-municipal participating areas of a regional district, which are detailed in the requisition, must be submitted to the Inspector of Municipalities by April 10th. Municipalities are billed directly by their regional district for the services in which they participate.
 

Municipalities levy and collect taxes directly from their residents and other properties within their boundaries. Regional districts cannot do this. Therefore, the Surveyor of Taxes levies and collects taxes from properties within a regional district boundary but outside of a municipal one (Electoral Areas). Once collected, the Surveyor then forwards the funds to the regional district. This is the same process that municipalities follow: the municipality levies and collects the taxes from properties within their boundaries, then forwards the funds to the regional district.
 

In addition to raising funds from taxes, regional districts can charge user fees for services they provide. Other revenues may come from grants or investments.
 

There are a number of accountability provisions that apply to regional district finances. For example they must produce annual audited financial statements that are prepared in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. A regional district board must develop a five year financial plan and undertake a process of public consultation before adopting it. A public meeting must be held each year for the purpose of presenting the audited financial statement and a report on the remuneration and expenses of the regional board. Also, regional districts must make available, upon request, a report respecting how a fee or charge was determined.
 

The Local Government Department provides financial information and advice to a wide range of clients including:

• local governments;
• other Ministries such as the Ministry of Finance and Ministry of Provincial Revenue;
• the Canadian Institute of Chartered Accountants;
• the Government Financial Officers’ Association;
• the Municipal Finance Authority; and
• BC Assessment.

In addition, the Department is responsible for collecting statistics relating to regional district including assets and liabilities, revenues and expenditures and property assessments.