Monday, September 10, 2012

Why differing debt is not problem for amalgamation

There are very few arguments against amalgamation that can not be specifically addressed and solved.  One reason given by people against amalgamation in this region is that our local governments have different levels of indebtedness and it would not be fair for the fiscally prudent to pay for other debts.    This can be solved quite simply.

In any transition during an amalgamation it is possible to structure how the existing debts are shared.   As an example, in an amalgamated Saanich and Victoria it would possible to assign the existing debts based on the existing boundaries.    As an example,  the current Victoria debts would only be charged to properties in the current city of Victoria and not be applied to anyone in Saanich.   It means there is a fairness to the taxpayers during the process of amalgamation.

How long could this be in place?   Till the pre-amalgamation debts are paid off.    It would all be part of the process of negotiation towards an amalgamated municipality.    The BC government provides funds to work out how to make any amalgamation work.   BC in the last 11 years has gone a long way to allow for the rules to be changed to make any proposed amalgamations work.  

Amalgamation simply makes rational sense in this region and we can effectively address every concern raised about it.



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