Terrace's city council is looking to strengthen public engagement in the mandatory annual financial plan consultation. What is this consultation to achieve beyond satisfying a legal requirement?
Unlike information which means transmitting facts to citizens about decisions council has made, a consultation serves to engage citizens in a dialogue on goals, priorities, problems, and performances related to the municipality’s finances before council makes its spending and taxing decisions.
The Community Charter, which is the provincial legislation governing local governments, calls on council to “set out the objectives and policies” for all of the municipality’s revenues and expenditures.
Objectives and policies are the soul of the financial plan; they are council’s vision statements. They express council’s “what, why, when, where, and how” ambitions. It is from this vision that city staff shapes the budget with its endless columns of dizzying numbers. The budget divulges the financial “therefore” consequences of council’s objectives and policies.
Take a look at Bylaw No. 2291-2024, the Financial Plan 2024-2025. Under the heading ‘Permissive Tax Exemptions’ in Schedule ‘A’ we find that “The city has an existing permissive tax exemption policy which guides the administration and approval of permissive tax exemptions.” The statement refers to Policy No. 79-R (approved in 2001, last revised in 2024). Policy No. 79-R is not attached to the financial plan, an abstract merely indicates that council will “continue to support worthy charitable/non-profit organizations that provide valuable services to the community” and that “council chooses to support charitable/non-profit organizations that provide valuable services to the community through permissive tax exemptions as allowed for by the legislation and pursuant to city policy.” This synopsis does not show the parameters and conditions council established in Policy No. 79-R to guide the policy’s implementation and administration.
Policy No. 79-R lists six eligibility criteria for tax exemptions and four circumstances where applications will NOT be considered (emphasis included). One eligibility criterion provides that “the property/facility must be dedicated to the enhancement of community services that support the spiritual, social, cultural, and physical well-being” of our citizens. Another specifies that “exemptions are based on the principal use of the property.” One disqualifying criterion provides that “properties that are being utilized for a for-profit commercial enterprise” do not qualify. The policy lists six evaluation categories and stipulates that an application must meet at least one of them.
Policy No 79-R should be readily available at the financial plan consultation. Implementing this policy means forsaking property tax revenues. The financial plan’s synopsis does not inform the community that, in council’s interpretation, the airport is a charitable organization; it is not a commercial enterprise. With hundreds of thousands of dollars in forfeited revenues at play, could the interpretation of Policy No. 79-R motivate citizens to participate in the consultation?
If citizens are to engage in worthwhile financial plan consultation, the exercise must be more than a public relations performance. The information council provides to a financial plan consultation must focus on, and spell out, council’s objectives and policies. Policies in the style of Policy 79-R should be in place for all municipal services having a measurable impact on the budget. These policies should be displayed with examples of their budget implication. A consultation thus informed may encourage citizens to engage council in thoughtful and productive deliberations on every policy’s utility, interpretation, and implementation. It’s a tall order, but the community, council and city staff included, would benefit from the consultation.
