The Rural/Urban Cost-sharing Task Force proposed several principles of how to proceed and what to consider in developing intermunicipal service/cost sharing agreements. These principles are intended to improve and facilitate the development of cost-sharing agreements through relationship building and community capacity building.
Recognize, respect, and address the differing needs and values of each municipality including the broader rural urban differences.
If the ratepayers of one municipality are using a service/facility in a neighbouring municipality, there is an obligation to enter into discussions for a cost-sharing agreement.
Regionally accessible and beneficial services should be financed on a regionally cost-shared basis.
All parties to a cost-sharing agreement must have the opportunity to participate in a board or committee established to oversee operations.
Wherever there is service/cost-sharing, a sharing of ownership of associated facilities and assets will be encouraged.
In situations where one municipality is negotiating an agreement for sharing with another, and there are other municipalities within that municipality either negotiating an agreement or with a current agreement in place for similar services, all municipalities should jointly negotiate.
Councils will negotiate principles and set the parameters of cost-sharing agreements, their administration will then finalize details and draft agreements for council’s approval.
Municipal services that are subject to regional negotiations (i.e. more than two municipalities) must be rationalized by the parties in a long-term plan to ensure the service meets the regional need as opposed to solely a local need.
Ensuring the necessary background information is gathered and prepared jointly prior to cost-sharing negotiations is essential. The following links identify opportunities for cost-sharing to assist in preparing a business case, and a step-by-step process to develop a business case to ensure the appropriate information is gathered for cost-sharing discussions.
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