B.C. municipalities have raised concerns about the burden of costs and duties shifted onto them by higher levels of government. Some cities are now attempting to measure the extent of these responsibilities — and they are revealing significant financial impacts from what they describe as “downloaded” costs.
Local governments argue that these downloaded costs strain their budgets, making it challenging to fund essential services such as infrastructure, parks, and community facilities, as they assume more tasks that were traditionally managed by provincial and federal authorities.
For instance, Coquitlam, a Vancouver suburb with a population of around 150,000, estimated that provincial government downloading cost the city $37.6 million from 2021 to 2024, as reported in November. This amount equates to an 18 percent cumulative tax increase over the four-year period.
Councilor Robert Mazzarolo emphasized the financial strain on the city, stating, “Our existing resources are barely sufficient to fulfill our current obligations.” Coquitlam detailed various costs it has absorbed, including heightened spending on RCMP and fire rescue due to insufficient support in housing and mental health areas, increased expenses as provincial aid for libraries diminishes, and expanded responsibilities concerning climate resilience.
Other municipalities have also quantified the financial impact of downloading. In 2024, Kamloops in the B.C. Interior identified $13.1 million in costs attributed to downloading, along with an additional $122 million in anticipated future impacts related to orphan dikes and inherited dams. The city highlighted investments in shelters, supportive housing, and increased emergency response spending on social issues like the drug crisis.
In 2022, Vancouver calculated $353.1 million in downloading costs, partly offset by $44 million in revenue from senior governments. Similarly, the City of Penticton tallied $4.6 million in provincial downloading specifically for public safety between 2019 and 2023.
While some municipalities threaten to seek compensation from higher levels of government for these costs, New Westminster rejected a proposal to quantify downloading in November, expressing concerns about the lack of a comprehensive definition for downloading.
The Ministry of Municipal Affairs in B.C. asserts that the province has provided significant support to local governments, including a $1-billion one-time grant program for infrastructure, $51 million in new housing legislation support, and annual funding of $24 million for the Local Government Climate Action Program.
On the federal level, a plan to invest $51 billion over the next decade, followed by $3 billion per year for improving local infrastructure, has been announced. However, the Federation of Canadian Municipalities is advocating for revenue reform to empower cities to generate more funds and support local services effectively.
Rebecca Bligh, the federation president and Vancouver city councillor, emphasized the critical role of municipalities in delivering frontline services and called for modernizing revenue tools to align with current needs and challenges faced by local governments.
The federal government is currently finalizing the design of its funding program to address these issues.
