Cost sharing between the P4G municipalities will be an important consideration moving forward with implementation of the Regional Plan. As providing for equity and fairness between the communities is an important principle identified in the Plan, P4G has recognized that there is a need for municipalities and areas to “pay their own way” and manage a share of the costs of regional actions that is proportionate to the benefits they receive. Current cost-sharing formulas should be assessed and reviewed regularly to ensure that these principles are considered.
Budget items that P4G will likely need to consider in the future will include the following:
Even in cases where services, facilities, and resources are contributed on an in-kind basis, these contributions must still be assessed to ensure that municipalities are supporting their fair share of the costs of P4G.
Although it is possible to develop a single cost-sharing formula or set of cost-sharing formulas to apportion these costs, it is likely that different situations will require different approaches to funding and support. Recognizing these complexities, P4G should maintain some level of flexibility with determining cost-sharing mechanisms for future use.
Discussions of cost-sharing strategies can be divided between two distinct types of calculations:
For each calculation, different components can be used to inform the final cost-sharing formula. Cost recovery would typically be managed through transfers directly from municipalities, although in certain cases regional development levies and/or subdivision agreement fees could be coordinated between municipalities to provide consistent payments from the recipients of sub-regional benefits from infrastructure specified in sections 169 and 172 of the Act.
In addition to contributions from the affiliated municipalities, P4G should also work to pursue additional funding from other sources to support ongoing projects. This will include:
The biennial P4G Strategic Business Plan should include a list of budget priorities for soliciting external funding, which would include:
These efforts shall be coordinated by P4G, and collective efforts shall be made to pursue these funding sources. All Councils shall indicate that they are supportive of these efforts for joint applications for funding in their approval of the P4G Strategic Business Plans.