Will New Westminster get grants from senior governments to help it fund housing and crises response initiatives or will it have to fund those projects on its own?
At a Dec. 11 workshop, staff presented council with three scenarios related to service enhancements proposed in the 2024 general fund operating budget:
- Scenario 1 includes $12.2 million in service enhancements, which would result in an estimated 5.5 per cent increase to property taxes. This is considered a “baseline” budget that includes increases that are contractual or regulatory in nature. This option includes $1.25 million (equivalent to a 1.2 per cent property tax increase) related to housing grants from senior levels of government.
- Scenario 2 includes $20.6 million in service enhancements, which would have an estimated 6.8 per cent increase on property taxes in 2024. This option builds on Scenario 1 and includes funding for the opening of təməsew̓txʷ Aquatic and Community Centre (TACC) and the implementation of a crises response team pilot project. The funding strategy for items in this option includes $2.2 million in grants and contributions – $1.3 million for housing grants and $1 million for the crisis response team.
- Scenario 3 includes $23 million of service enhancements, which would have an estimated 8.5 per cent increase on property taxes. It includes additional investments in TACC, emergency services, human resources and information technology, and the streamlining of housing unit approvals. This funding strategy for this option proposes $2.4 million in grants and contributions – $1.4 million in housing grants from senior levels of government and $1 million for the crises response team.
In Scenarios 2 and 3, staff say the crises response team pilot project will be funded by reserves if the City of New Westminster does not receive funding from senior levels of government.
The Record has contacted the City of New Westminster for an update on the status of its grant requests. More to come....
A staff report pointed out several “risk factors and budget assumptions” that may influence the budget. This includes uncertainties associated with grant funding.
“The budget is constructed with an underlying assumption that grant funding for the enhancements needed to carry out the legislated homes and housing options work (including the housing division and related interdepartmental enhancements and project costs) will be secured,” said the report. “However, staff has made this assumption cautiously.”
According to the report, staff has forecasted the start dates for housing staff to be in early 2024, as staffing must be in place by June 2024 in order to achieve the new legislated requirements from the province.
“Should the grant funding for these crucial enhancements not materialize in 2024, the city will have an option but to use funding from reserves to sustain them; required funding may be as high as $1.4 million,” said the report. “Council would then need to re-evaluate the plan and potential tax increases required going forward.”
In addition, staff pointed out that senior government grant funding would have a “finite” contribution.
“While this may not immediately impact the budget, it prompts the need for a funding strategy in the coming years to sustain permanent full-time staff once the grant funding is exhausted,” explained the report.
In October, New Westminster city council approved a two-year organizational pilot project and strategy to address the overlapping crises of homelessness, mental health, and substance use. The pilot will focus on increasing immediate supports with the long-term goal of transitioning responsibility to senior levels of government.
Similar to the homes and housing options work, finance is proposing a temporary enhancement for the crises response team pilot project prior to securing provincial grants and funding, said the budget report presented to council earlier this month.
“Should the grant funding not become available in 2024, the city’s only option will be to fund this critical work through reserves,” said the report.
At the Dec. 11 workshop, several council members told staff they supported Scenario 2 because it includes investments in initiatives that support vulnerable populations and housing initiatives.
Coun. Jaimie McEvoy asked staff about the likelihood that New Westminster will receive grant funding.
“From a finance perspective, any confirmation would be speculative,” said Jacqueline Dairon, the city’s acting director of finance. “That's why we want to highlight that there's nothing secure there.”
Jackie Teed, the city’s director of climate action, planning and development, said the two key areas that the seeking grant funding for is housing and the crises response team.
“The province has announced $51 million that will be distributed to municipalities in relation to supporting the need to meet their legislative requirements,” she said. “Our expectation is that we'll be hearing what portion of that will come to New Westminster this month.”
Teed said the city is seeking grants for its housing work, and will bring information forward to council as staff find opportunities and have successes.
“Particular to the crisis response team, we're setting that up in a way that we're tracking the entire cost of that, and we'll be looking to get paid back for all of that work, hopefully by the province,” she said.
'We’re going to have to get this work done'
Mayor Patrick Johnstone said the 2024 budget includes funding related to the creation of a new housing division, which will respond to legislative changes coming to municipalities from the province in terms of housing.
“I do hope that that funding support comes from the province to help pay for that,” he said. “I do still have my fingers crossed that the Housing Accelerator Fund money helping on that. … I'm still hoping that we'll be able to get some funding support for that.”
Added Johnstone: “That funding support from the province or the feds has little to do with our need to actually get this work done. I think that we're going to have to get this work done, whether that funding support comes or not.”
At the Dec. 11 workshop, council supported Scenario 2, as well as a few specific items from Scenario 3.
Coun. Daniel Fontaine expressed concern that funding for the housing and crises response initiatives would be paid for by taxpayers, if the city doesn’t get funding from senior governments.
“I have hope that we get it but hope isn’t a strategy, right?” he said.
According to Dairon, if the city doesn’t receive grants from senior governments, council and staff would then discuss how those items would be funded.
Fontaine proposed an amendment that none of the budget items in Scenario 2 that are reliant on grant funding be approved in the operating budget unless the city secures funding from senior levels of government.
Unlike budget items related to the fire department, “which is clearly under the purview of the City of New Westminster”, Fontaine said he’s uncomfortable approving programs and projects that should be paid by senior levels of government. He said a number of budget items are being forecast to be covered by grants, but the city isn’t sure it will get those funds.
“I'm very nervous about hoping and praying that the provincial government will pay for this after we have started paying for it, that we have absolutely no leverage,” he said. “Once we've been paying for, I don't know what would motivate the premier or the prime minister to suddenly cut us a cheque for something that we've already committed to paying for.”
Fontaine said he thinks it strengthens the City of New Westminster’s position to indicate its support for its housing and crises response initiatives – subject to receiving federal and provincial government funding.
Coun. Ruby Campbell opposed that approach. Based on her experience of having written numerous grant applications to federal and provincial governments in the past, she said cities usually have to show the government that money is included in its budget for projects before they can apply for grants from senior governments.
“By not putting it in the budget, we are essentially preventing ourselves from even applying for funding,” she said. “So maybe staff can reaffirm if that is the process that I have experienced for many, many years.”
Dairon confirmed that it’s her understanding that’s the case for a number of government grants.
Coun. Paul Minhas supported Fontaine’s proposed amendment, but it was voted down 5-2 with Johnstone, Campbell, McEvoy and councillors Tasha Henderson and Nadine Nakagawa opposing.
