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Exploring Models of Community Management

Discussion Draft: March 06/05

For every organization, institution, or community, it is prudent to periodically review and, if appropriate, revise the management model.

On Thetis, our “management” is delivered by a variety of organizations: the Local Trust Committee of the Islands Trust, the Cowichan Valley Regional District, the Ministry of Transportation (via Mainroad Contracting), the Thetis Island Improvement District and Volunteer Fire Department, the Thetis Island Ratepayers’ and Residents’ Association, the Thetis Island Community Association, the Thetis Island Port Commission, the St. Margaret’s Cemetery Board, and the Thetis Island Parents’ Association.

For the past two years, our local organizations (the above-named, less the CVRD and the Ministry of Transportation) have been participating in the Community Forum, a multi-organization group focused on community-wide issues.

Through its discussions, the Forum members (representatives of the executives of the above community organizations) have considered a range of issues that revolve around the broader question of community management. Some of these issues are:

  • Changing demographics, such that it is challenging to find volunteers to operate the local volunteers services, particularly the administrative chores.

  • Local confusion by some residents and property owners not involved in any of the organizations as to which organization does what jobs and why.

  • Rising assessments and taxation with little local control on taxation rates.

  • Lack of local control for administrative decisions by governments that have little understanding of the local community.

  • Issues around local governance, regulation of land use and bylaw enforcement.

  • Rising insurance coverage costs carried by multiple local organizations.

  • Difficulty of local organizations to fairly raise operating funds to support the services provided
This draft paper has been prepared for the Community Forum as a discussion piece that reviews the range of management models available to Thetis Island. It is an attempt to succinctly describe the various community management models that seem to be available to Thetis Island. It offers no recommendations; its purpose is to share this information across the community. At some later date – perhaps in 2005 – a “town hall” community meeting might be held to hear views on these management models and on whether any course of action might be explored.

These models are:
    1. Status Quo
    2. Combine Two or More Community Organizations
    3. Strengthen Reliance on the CVRD
    4. Incorporation as an “Island Municipality”
    5. Expanded Islands Trust Governance Powers

Model 1: Status Quo

Snapshot of the Present Management

  • Islands Trust is responsible for land use governance. Local property taxpayers contribute to both the planning and administrative functions.

  • CVRD owns and operates the Port (community dock) and the Boat Launch through the advice of the T. I. Port Commission (5 commissioners).

  • TIRRA owns the cemetery land (which is managed by the Cemetery Board) and the community trail, and it operates the garbage collection service, including recycling program, with an Executive Committee (minimum of 5 directors) and voluntary contributions from members.

  • TICA owns and operates Forbes Community Hall and grounds, including the ESS function, with an Executive (current requirement for 7 directors?), membership dues and special funding initiatives cover the budget. An option to adopt a CVRD taxation bylaw is now under consideration.

  • The Health and Education Fund has 4 trustees, and this will be replaced by a new Thetis Island Community Fund Board with five directors.

  • TIID owns and operates the T.I. Volunteer Fire Department. The Board consists of 5 trustees, with support from two volunteer staff (treasurer and manager) as well as the members of the fire department. Funding is based on local taxation, with current budgets in the order of $80,000 per year.
Key “Status Quo” Issues:
  1. There is a perennial shortage of or difficulty locating volunteers to fill the various boards. Together, TIRRA, TICA, TIID, H&E and TIPC require about 24 board members, with an additional 10-15 associated volunteer positions to be filled for administrative purposes. These numbers do not include the Fire Department.

  2. TIRRA and TICA have traditionally raised the majority of their funds through the voluntary contributions of their members. Most members of the community pay, but the number who do not is significant and every year volunteers must expend extraordinary efforts to remind people or urge people to pay their “community service fees and dues”.

  3. TIRRA, TICA and TIID each carry separate insurance coverage, and these costs have been significantly higher in recent years.

  4. TIRRA, TICA and TIID each require appropriately skilled volunteers to conduct administrative duties (financial management and general management). Few people wish to volunteer for such dull and unrewarding tasks that require continuous vigilance throughout each year.

  5. We have difficulty as an unorganized rural community convincing government agencies or levels of government to provide or continue services. For example, on several occasions BC Ambulance Service has been asked to fund an ambulance station here and they have declined. Road maintenance and subdivision issues are decided by public servants elsewhere. Our ability to support the School District’s continuance of Thetis Island School is limited by being perceived as an unorganized rural area.

  6. Under the Taxation (Rural Areas) Act we have no control on mil rates for provincially set service fees. These are set as an average for all rural areas in the province and, if you happen to be in an area of high or rapidly rising assessments, local support for these services will be far greater than the benefits received. The major example here is the Provincial Rural Tax. In 2004 the residential mil rate was 0.95 and the commercial rate double this. With a total assessment base of about $77 million (2004), this tax raises some $80 thousand on Thetis Island that goes to the Provincial Government.

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Model 2: Combine Two or More Community Organizations

The Concept:

Suggestions are occasionally made that TIRRA and TICA should be combined or that the Improvement District (TIID) should take on an expanded role.

TIRRA is the oldest community organization on Thetis, having been created fifty years ago in 1955. Through the Ratepayers’ Association, which is a registered society with community advocacy at the core of its mandate, it was decided that there needed to be a charitable society established open to all residents for the purpose of funding and operating the community hall; hence the creation of TICA. TICA is a registered charitable society. TIRRA also started the original fire department. In order in provide a superior funding base—through property taxation -- the Improvement District was eventually created.

The question of combining two or more of these organizations (TIRRA, TICA and TIID) has two parts: (1) is it feasible, and (2) does it offer sufficient benefit for the effort?

Key Issues:

  1. The Improvement District is an elected board with power over a budget that is property taxation based. The Province has, when asked on a number of occasions, clearly stated that it will not allow any change to the Improvement District’s “Letters Patent”. The Province asserts that the Regional District is the proper governance level to take on the local services that some would wish on the Improvement District. Therefore the Improvement District cannot take on new responsibilities and fund these through taxation (e.g. ownership of the community hall or funding for TICA).

  2. Both TIRRA and TICA require boards of directors, function chairs (e.g. cemetery, library, trail, etc.), general liability insurance and directors’/officers’ insurance. Both require general management and financial administration. For TICA to retain its charitable status, it needs to be separate from TIRRA, either as a stand-alone organization (as now), or as an independent “subsidiary”. As such, its need for directors and hall insurance would continue. For TIRRA to advocate on behalf of the community to levels of government it cannot be a charitable society, as is TICA.

  3. Combining the TICA and TIRRA boards would reduce the total number of board directors and, particularly, the need for two managers and two treasurers. However, the burden on the board directors, especially the manager and treasurer functions, would increase. Which is the more efficient and effective model? If the onerous duties involved some remuneration to willing parties, it would make sense to combine them. If there continues to be reliance on volunteers, it seems unlikely anyone would be thrilled to accept a doubling of the load for these administrative duties so that fewer volunteers would be needed.

  4. Would the total insurance package for a combined TICA-TIRRA be more cost efficient? It is likely there could be some cost efficiency, but general liability and D & O coverage for the hall and grounds (given the risks associated with public spaces) would remain as prominent costs.

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Model 3: Strengthen Reliance on the CVRD

The Concept:

While the Islands Trust function and responsibilities would remain as they are, certain local services and assets could be turned over to the CVRD or the CVRD could provide tax-based funding for community organizations to operate these services. Such services/assets include: cemetery ownership, trail ownership, Forbes Hall ownership, Fire Department ownership and operation.

Due to a positive working relationship with a previous CVRD manager, the community agreed to turn over two assets to CVRD ownership in order to obtain superior insurance coverage. The experience has had its positive aspects, but TIPC has found it difficult to deal with the CVRD administrative bureaucracy.

Key Issues:

  1. The CVRD Board and/or the CVRD administration seem unwilling to cooperate with the community. The CVRD was approached to develop parcel tax-based funding for Forbes Hall. Without consultation and ignoring community advice, it has determined that this tax-based funding should be assessment based. Various community leaders have attempted to intervene but the CVRD has been quite resistant, despite evidence that the requested parcel-tax funding arrangement works for Hornby Island in its dealings with the Comox Strathcona RD.

  2. There would likely be local resistance to transfer of local assets (cemetery, trail, community hall, and fire hall) to control by the CVRD Board.

  3. Thetis Island is represented on the CVRD Board by one director, who has a greater area interest than Thetis Island. Our voice is and will remain weak.

  4. The CVRD Board tends to meet in evenings in Duncan, making it difficult and time-consuming for Thetis Island representatives to make presentations.

  5. Fire departments under CVRD administration are currently having difficulty with the CVRD model of “one size fits all”; i.e. standardized service and overhead. There is a loss of local level control and decisions, even though local areas fund their respective fire services.

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Model 4: Incorporation as an “Island Municipality”

The Concept:

  • Thetis Island would remain within the Islands Trust jurisdiction and the Islands Trust Act would apply. It would be up to the community as to whether local taxpayers continued to contribute the planning portion of its Islands Trust funding.

  • One board – the Municipal Council – would replace three, maybe four current boards. Anything to do with holding and managing assets and services would be transferred to the Municipality. TIRRA may continue as an advocacy body but its insurance needs would be minimal. The T.I. Community Fund would continue as the charitable organization.

  • The financial and other administrative functions of TICA, TIRRA and the TIID could be combined under a single paid part time contractor or two paid part time contractors. These would still not be full time jobs.

  • The Municipality could assume responsibility for local zoning (as long as it complied with the IT Act) and compliance issues, such that local issues were locally managed.

  • The Municipality could assume responsibility for local permits and compliance issues. Such service may be performed under contract to a qualified company.

  • The Municipality could take advantage of preferential insurance coverage and rates through the Municipal Finance Authority.

  • Subdivision approval would become a municipal function, rather than one administered by the Ministry of Transportation.

  • The municipality could set its own multiples between property class taxes, whereas these (i.e. commercial, farm, residential) are now set provincially.

  • Regional District services provided solely to the community (e.g. the dock, funding support for Forbes Hall, if any) would become municipal services under local control.

  • Some provincial grants are available for municipalities, particularly for smaller municipalities.

  • Someday, as promised by the current Liberal government, the federal government may provide municipalities with funding from the federal gasoline taxes.
Key Issues:

  1. Is Thetis Island too small by population to support a municipality? The full time population is at the low end of the spectrum but larger than Wells-Barkerville which is a successful municipality.

  2. Is the property tax base sufficient to support a municipality? The assessment base of Thetis was about $76 million in 2003, about three times the assessment base of Wells-Barkerville, which has thrived since incorporating.

  3. What about policing costs? Municipalities under 5000 population do not fund policing.

  4. What about roads? After five years the public roads are transferred to local ownership and responsibility. During the transition period, the Ministry of Transportation brings local roads up to good condition prior to transfer of ownership. The current MoT budget (2004) for Thetis Island roads is $70,000, somewhat less than the annual amount collected under the “Provincial Rural Tax”. Likely the difference could be rationalized as contributing to major maintenance or new capital road works. As a municipality, our council could make local decisions about traffic control, priorities for shoulder improvements, priorities for line painting, etc.

  5. What about administrative overhead; wouldn’t this become a tax burden? In such a small area as Thetis, it is seems extremely unlikely the council would take on staffing and services that were beyond the ability of the local area to afford. Most services (e.g. road maintenance) could be done under contract. Permitting could also be done under contract with the permit fees supporting the contract. No permits would mean no permit administration, hence no costs.

  6. Would farms retain their tax exemptions? Once incorporation occurs, there is a five-year phase-in period, during which the municipal council develops the bylaws for zoning and taxation that it deems appropriate. After five years the provincial farm tax exemptions disappear but municipalities tend to put in place substitutions at the local government level.

  7. Would the role of the Islands Trust change? Yes and no. The Islands Trust Act would still be in place and the municipality could not violate that statute in its local land use. Whether the planning function would be handled locally, or remains with the Trust would be matter for mutual resolution; if the former, the costs of planning would be managed locally, whereas, if the latter, local taxpayers would continue to contribute tax funds to the Islands Trust for this function.

  8. What about a Municipal Hall? The Municipality would have to have a headquarters. As an interim measure, the council would decide on a temporary “hall” (rental of a building or a trailer on Community Hall or Fire Hall properties). Within a couple of years, it would likely build a modest two room structure, either as an annex to either Forbes or the central fire hall, or as a separate building in the vicinity of either.

  9. How would the council function? The council would be elected from the local community by eligible voters. In most small communities, council members are paid small honoraria but not salaries. The kind of person likely to obtain office is one who has the time and interest in community affairs. In a small community people with extreme views tend to become unpopular very quickly and therefore the tendency is for small community councils to function much as our current boards function, by close community ties, reasoned discussion and consensus-building.

  10. What are the experiences and concerns on Bowen Island, the only “Island Municipality” in the Trust area? The council and administration are functioning smoothly. Because of the population size and diversity, administration involves a number of full time and part time staff, and some residents feel that their taxes have risen unacceptably. This was also the major fear among voters on Gabriola Island in their 2004 rejection of incorporation. Because Thetis is so small, the need for administration is part time only and may be done by contractors in most cases.

  11. Were not Gabriola Islander’s also concerned about loss of the protection of the Islands Trust? This issue was covered in local papers but the voters did not seem to recognize that the Islands Trust Act would remain in force.

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Model 5: Expanded Islands Trust Governance Powers

The Concept:

The Provincial Government has recently asked the Islands Trust to develop a proposal to change the governance authority of the Trust. The Trust will soon embark (or has already embarked) on an exploration of various ideas that would give the Trust more municipality-like authority. Unlike the other four models, which are dependent on local support, this model would be a decision of the Province based on recommendations of the Islands Trust. Further, this model could co-exist with any of the other four models, although there would be a need to resolve redundancies if the incorporation model were to be adopted. Key Issues:

  1. The Provincial Government has, for years, avoided any commitment to modify the legal mandate of the Islands Trust. Now, with timing coinciding with a provincial election, they have offered the idea that they may be willing to consider a proposal from the Islands Trust. There can be no certainty at this time whether the Province’s willingness will be sustained.

  2. If the Islands Trust were to be granted additional powers – perhaps similar to a municipality -- Thetis Island would be continued to be governed by the Local Trust Committee. The powers of the LTC and the Islands Trust administration would be expanded beyond land use.

  3. It is believed that the Province is most concerned with Saltspring Island and will push for either an expansion of the Local Trust Committee on that island or municipal incorporation. It is considered likely that Saltspring will incorporate within the next few years, and other more populated islands will follow or, as in the case of Denman and Hornby Islands, opt for stronger association with the respective regional district. The remaining islands could be administratively “bundled” by the Province as some kind of “residual area”.

  4. If the Province supports a proposal from the Islands Trust regarding amendment of its authority, the process of amending legislation can take two years or more.

  5. Administration would continue to be based on Saltspring Island, which has implications for its accessibility to Thetis Islanders seeking to consult with authorities. This physical separation from the administration may contribute to the local “flexible” tradition with respect to local bylaws, and it makes face-to-face dialogue with the administration less accessible.

  6. As the Trust must administer a substantial area and a substantial population (Saltspring Island has a population of over 10,000, for example), it is likely that increased authority will require increased administrative staffing and costs, which would be shared among the various islands within the Trust.

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