In March 2021, the NDP government put the final nail in the coffin of the office of the auditor-general for local government (AGLG). Without much fanfare, former Minister of Municipal Affairs Selina Robinson cut its funding and permanently closed the office.
Given the countless recent headlines focusing on massive cost overruns for Metro Vancouver infrastructure projects and questionable international travel, one could easily argue the time has come for the B.C. government to reconsider their decision.
While I’m pleased the premier has demonstrated an interest in some fiscal accountability regarding municipal infrastructure projects, he simply hasn’t gone far enough.
Since the closure of the AGLG, citizens have been left with no option to request an audit of a municipal expenditure that they feel deserves a heightened level of public scrutiny. That’s because B.C.’s auditor-general is not legally entitled to investigate nor audit any expenditures that are under the control of local governments or regional districts unless provincial funding has been provided — and then only related to that specific funding.
You only have to look at the nightmare on the North Shore, otherwise known as Metro Vancouver’s wastewater treatment plant, to understand the important need for an independent auditor-general to have oversight into municipal spending habits. So far, this piece of municipal infrastructure is projected to come in almost $3 billion over budget. As a percentage in terms of cost overruns, this project qualifies as one of the worst financial debacles in B.C.’s history.
While it has been a long-standing position of the Union of B.C Municipalities, the lobbying arm of municipal governments, to oppose the AGLG, this stance is increasingly at odds with public opinion. It also directly contradicts the feedback the AGLG received when they conducted audits of municipal spending. Interestingly, according to a 2019 B.C. government news release “71 per cent of local governments that had been audited felt they benefited a medium to high degree from the audits.”
The public, many of whom are struggling under the weight of increased rents, high mortgages, gas and food costs, are in no mood to simply shrug their shoulders when it comes to massive cost overruns on publicly funded projects. They rightfully deserve answers regarding how and why a project that started at approximately $500 million could balloon to almost $4 billion in simply a matter of a few years.
If you live on the North Shore, you’ll be expected to pay almost $600 more in taxes per year for the next 30 years to pay for the new wastewater treatment plant. All residents in the Lower Mainland will be shelling out between $80 and $150 each year for 15 years. More worrisome is the stark reality that a replacement for the aging Iona wastewater treatment plant is about to get underway and that is pegged at a minimum of $10 billion and climbing.
Having a municipal auditor-general would provide the public with some hope they can eventually get answers regarding the questionable spending habits of their local government. That’s because not only do they have statutory powers to compel municipalities to open up their books, but they are also independent from government and hence shielded from political influence.
Premier David Eby recently stated he felt Metro Vancouver needed to conduct an “independent audit” of the North Shore wastewater treatment plant. He also mused about B.C.’s auditor-general getting involved as the provincial government has already committed 200 million tax dollars toward the project, with a request from Metro Vancouver for even more.
While I’m pleased the premier has demonstrated an interest in some fiscal accountability regarding municipal infrastructure projects, he simply hasn’t gone far enough. There are several additional steps he could immediately take to demonstrate he’s prepared to take on a stronger leadership role regarding this affair.
He should announce his government will reopen the AGLG office after the provincial election. Alternatively, he could commit to amending the B.C. Auditor-General Act and increase its scope to include municipal expenditures.
If the premier needs inspiration, he need only look down to Washington State. In that jurisdiction their equivalent of our auditor-general has long been provided with the necessary power to investigate all municipal expenditures.
Lastly, rather than politely suggesting to Metro Vancouver they hire an independent auditor to review the financial debacle unfolding in North Vancouver, he should clearly indicate his unwavering support that B.C.’s auditor-general should be getting directly involved in this financial mess.
Taxpayers deserve answers. It’s clear Metro Vancouver isn’t prepared to do that, so it’s high time the province stepped in.
Originally published in the Vancouver Sun on July 4, 2024
