City says service downloading cost Prince George $26.4 million in five years

“It’s a sadder and sadder reality,” Skakun told council.

He specifically pointed to the province’s decision to decriminalize possession of small amounts of illicit drugs, arguing municipalities have been left dealing with the consequences.

“It created a free-for-all,” he said, adding communities such as Prince George have been left to clean up “the fallout.”

The report notes municipalities have traditionally been responsible for core local services such as snow clearing, water and sewer systems, roads, and other municipal infrastructure. However, local governments increasingly find themselves responding to broader social challenges that fall outside their jurisdiction.

“Residents are still affected by issues that fall under other government responsibilities and look to their local leaders to address those issues that are not in our jurisdiction,” states the report.

The document identifies addiction, mental health, homelessness, housing affordability, inflation and climate change among the issues increasingly affecting communities.

“The City works with all of our government partners to try and help make life better for all citizens, but other levels of government are already resourced for issues under their jurisdiction by other taxation, such as income tax, and we are simply not resourced to assist with these services,” the report continues.

It adds municipal governments receive only a small portion of the overall tax dollars paid by British Columbians.

“Municipal government only works with about 12 cents of every tax dollar paid by residents in BC.”

According to administration, the cumulative cost of downloaded responsibilities reached approximately $26.4 million between 2020 and 2024.

The largest share, more than $19.1 million, was attributed to housing, social services, mental health, addictions and public safety pressures associated with the opioid and toxic drug crisis.

The report notes the province declared a public health emergency in 2016 in response to the opioid crisis. While fundamentally a health issue, administration said associated public disorder and safety concerns have increased demands on policing and municipal services.

Prince George, like many communities throughout British Columbia, has experienced changes in crime patterns, policing needs and social service demands since that declaration.

The cost breakdown includes nearly $2.4 million for the Downtown Safety Unit, $2.4 million related to decriminalization impacts and just over $2.1 million attributed to repeat offenders.

Other major expenses identified include almost $2 million for the Car 60 program, more than $1.6 million for encampment management and downtown cleaning, nearly $1.4 million for security costs and approximately $1.25 million for bylaw enforcement.

The city also reported spending more than $4.37 million on social housing-related initiatives during the five-year period.

Additional spending was recorded for outreach workers, grants, fire fleet impacts, naloxone supplies and intergovernmental relations work tied to advocacy and co-ordination efforts.

The report also documented more than $7.28 million in costs linked to legislative and regulatory changes implemented by senior governments.

Among those expenses were nearly $1.8 million for traffic control requirements and a similar amount for the Employer Health Tax.

The city identified over $1.2 million in closure allowance costs and approximately $1.1 million related to psychological injury provisions. Other costs included DNA requirements, paid sick day legislation, public sector accounting standard changes and a larger municipal contribution toward library funding.

Administration said while the policy objectives behind many legislative changes may be reasonable, the financial impacts often fall directly on municipal budgets without corresponding funding support.

Several councillors said the report would provide important evidence for advocacy efforts with higher levels of government.

Councillor Cori Ramsay called the document an important step in strengthening the city’s case.

“This report is a really important advocacy tool,” she said.

Ramsay argued both the provincial and federal governments need to recognize the growing financial burden being carried by municipalities.

She said the findings send a clear message that local governments require additional support if they are expected to continue responding to social and public safety issues that go beyond their traditional mandate.

“We really need you to pull your weight,” she said, referring to senior governments.

Ramsay also encouraged greater involvement from local Members of the Legislative Assembly and Members of Parliament, saying they could play an important role in bringing Prince George’s concerns forward within their respective governments.

Council members generally agreed the report demonstrates how municipalities are increasingly expected to respond to complex societal issues despite their limited revenue tools.

Unlike provincial and federal governments, municipalities rely heavily on property taxes and user fees to fund services. Councillors noted that leaves local governments with fewer options when confronted with rising costs associated with homelessness, addiction, mental health challenges and public safety concerns.

The report’s findings come as municipalities across British Columbia continue to raise concerns about downloading and the widening gap between public expectations and the resources available to local governments.

Council ultimately agreed the report should be used as part of its advocacy efforts with the provincial government.

The city plans to take the findings to the upcoming Union of British Columbia Municipalities convention and use the data in discussions with the provincial ministers responsible for finance and forestry.

Councillors expressed hope the report will help build support among other local governments facing similar challenges and strengthen calls for a renewed funding relationship between municipalities and senior levels of government.

For Prince George, they say the report provides not only a detailed accounting of past costs, but also a foundation for future advocacy aimed at ensuring municipalities are not left bearing an increasing share of responsibilities they argue belong elsewhere.

by Cheryl Jahn

City says service downloading cost Prince George $26.4 million in five years

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