Prosperous and healthy communities need quality services and infrastructure to maintain their standard of living. Infrastructure drives growth because it reduces the costs of transportation and raises the value of land by converting it from undeveloped to serviced land.
According to the World Bank, the highest return to public investment and best use of government revenues is to create infrastructure because it supports future private investment.
Quality infrastructure attracts private investment. Private investment creates more jobs than public investment and is important for the long term economic growth of communities.
Economic infrastructure is a key ingredient for growing First Nation economies. The FMA fiscal institutions have provided a strong foundation for First Nations to build the necessary infrastructure to realize their economic vision, with over 154 First Nations have joined the FMA to help realize their economic objectives.
The FMA provides participating First Nations with the ability to use up to 25% of gross property tax revenue generated under the Act to finance debt over the long term.
Debenture financing is an essential tool in building capital infrastructure. Pooled debentures offer several advantages over other forms of financing for local infrastructure projects. They offer lower rates, longer amortizations, and more flexibility than bank loans. No collateral, down payment, or liens on assets are required.
FNTC assists First Nations as they go through the debenture process, making it easy and efficient for First Nations build their individual system tailored to reflect their policy choices and approaches.
First Nations interested in using property tax revenue to finance infrastructure developments are encouraged to contact FNTC to discuss their ideas. FNTC helps First Nations understand the steps in the process and ensures they are supported through every step toward growing their economy and expanding their jurisdiction.