FNTC: NEWS
Defining a First Nations fiscal relationship with the Crown
Federal Minister of Justice: “We all need to continue to be strong proponents of change”
The FNTC has long championed the notion that a new fiscal relationship for First Nations should be built on a foundation of clear government powers and authorities that are not financed by transfers, but are instead financed by a core of clear revenue authorities.
On October 13, 2017, as part of regional engagements lead by a member of the AFN Chief’s Committee on Fiscal Relations, Chief David Jimmie of Squiala First Nation, First Nations in BC participated in a second province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown, building on the work, input and information shared at the initial dialogue session hosted by the First Nations Summit in June 2017. The meeting was also open to delegates from across Canada.
Many First Nations leaders delivered presentations to delegates on working together to create substantive change for Indigenous communities.
Harold Calla of the First Nations Financial Management Board reflected on the problem facing First Nations in Canada, “What happened in colonization is that we were marginalized and frozen in time. We were not allowed to evolve and build the capacities as other modern-day governments have. The majority of our communities are only familiar with transfer payment systems and as service delivery vehicles. What is thought of as self-government is actually self-administration of programs and services.”
FNTC’s Chief Commissioner C.T. (Manny) Jules shared his perspective, “If we’re going to have a level playing field as I said last June, we want the same deal that the federal and provincial governments gave themselves at the time and at the beginning and the birth of this country.”
“They divided up the land, put us on reserves and proceeded to exploit all the bounty of the land. And what do we do? We ask for transfers. Transfers are a nice way to say we’re dependent on somebody else. What we want is ultimately our own jurisdiction that extends beyond the postage stamp reserves that we live in. We have to be able to have our own jurisdiction.”
“We have all the differences like communities where I come from and other communities that are remote. How do we begin to overcome those differences? Tecumseh, one of my cultural heroes, said a single twig breaks but a bundle of twigs is strong. And that’s what we’ve been able to demonstrate here in British Columbia. Without the involvement of the Union, the Summit and the BCAFN, the whole approach to fiscal relations isn’t going to happen. We have to do it together.”
“For the smaller communities, national institutions are critically important because what we can do as a national institution is create standards and models that you would be able to assume at the local level. Not taking away any of your jurisdiction because I firmly believe all of our institutions are designed to facilitate your jurisdiction as opposed to the jurisdiction of the institutions.”
Canada’s Minister of Justice and Attorney General, Jody Wilson-Raybould delivered a keynote address, stating, “Everyone in this room shares the same values and we all have the same goal of ultimately improving the lives of our people back home in our communities.”
“We are arguably in the best position that we could be, the best position that we have been in in a long time, perhaps forever, to do something truly transformative about advancements of rights and on a scale that we haven’t previously known.”
“Moving forward, what we do together in partnership over the coming months and years will continue to lay the groundwork for truly changing the way Canada is governed, and the place of Indigenous people and our nations within Canada”
“We are in this place today because of all of you, because of your vision and the work that so many of you have done to get us to this point. It has been through your tenacity, your ingenuity, your leadership that many First Nations have already been able to begin to break through the most insidious of fiscal and government’s constraints that have inhibited Indigenous growth and potential and for you to have taken significant steps on the road to self-determination and self-government. But as we all know, more needs to be done.”
“If I can be so bold, and in my mind, today’s conference is all about planning, about being strategic, being progressive, being the trailblazers I know you all are. As Manny Jules likes to say, being on the bleeding edge of change. I think we can say we are no longer on the edge, rather we are now in the centre of the transition our country is going through to fully implement UNDRIP, to give meaning to s. 35 and to implementing the inherent right of self-government, creating opportunity and supporting positive change in communities.”
“We all need to continue to be strong proponents for change. To continue to be courageous and take bold steps.”
At the end of November, Chief Jimmie completed a report summarizing the input gathered from the regional engagement sessions and presented it to the Assembly of First Nations Special Chiefs Assembly.
In his presentation to the chiefs in assembly, Chief Jimmie said, “As part of the chief’s committee on fiscal relations, we’ve opened the door to dialogue amongst our people. Throughout the process, each of our provinces and territories had a responsibility to go out to the communities and do some regional engagement.”
“In BC, we’re looking at jurisdiction and we’re looking at expanding tax powers, those were common themes we heard. We’re looking at these long-term commitments on funding and transfers. But how do we enshrine those in legislation? That’s the kind of commitment and true nation-to-nation relationship that we’re looking for.”
BC First Nations will continue to advance the fiscal principles they have adopted as the foundation for a new fiscal relationship. First Nations, the fiscal institutions and other First Nations organizations are committed to working together on options and recommendations.
The First Nations Tax Commission will continue to advocate for a fiscal relationship that is based on First Nation revenue jurisdiction.
Westbank First Nation: Using property tax revenues to build a vibrant future
Recently Clearing the Path had the opportunity to meet with Ernest Jack, surveyor of taxes for Westbank First Nation (WFN) to discuss how property tax revenues are helping the First Nation achieve community visions. Westbank First Nation has a long taxation history under a local government services model used by many municipalities. Adapting this local government services model into a hybrid model proved a wise decision and WFN is now able to direct tax dollars to services and infrastructure that offer the most benefit to all members of the community.
In 1990, taxation generated $750,000 in revenues. They currently estimate revenues for the 2017 – 2018 taxation years will approach $14 million. One of the pivotal points for change in the community was the decision to sign a self-government agreement in 2005. This helped to increase tax revenues as the Self-Government Agreement provided certainty to investors with clear guidelines regarding business practices, leasing agreements, tax rates, and what they can expect in return from WFN in doing business.
In 2005, Westbank’s assessments on commercial values were $39 million; commercial values now top $380 million. Today, WFN is currently rank 58th among BC municipalities with a total assessments worth of $1.6 billion. They have over 400 businesses on WFN land including Home Depot, Canadian Tire, Walmart, Superstore and three Tim Hortons. The Westbank First Nation also has a strong aboriginal sector of 60 businesses including many artists, a trucking company, general construction company and restaurants such as Kekuli Café Coffee and Bannock.
The core to successfully administering the taxation revenue lies with WFN working closely with the Westbank First Nation Tax Advisory Council. The advisory council reviews tax administration budgets, including recommendations to the Chief and Council regarding tax laws and amendments. They also play a leading role in the preparation of the local government services budget, which sets property taxation rates and distribution of tax dollars. The council prioritizes funds towards worthwhile endeavours in education, public works, recreation, programming, development and administration.
Recent projects include new sidewalks, the sports court, repaving, water system upgrades, the Lakeside trail, landscaping and equipment. However, the crowning glory is the new Youth Centre opened in December 2016.
The concept for the Youth Centre began in 2012. Rapid community growth filled the gymnasium, soccer fields and ball parks to capacity. Demographics indicated a young Westbank membership, and many young families in the area. The Chief and Council approached the Advisory Council and proposed the new facility to accommodate the young demographic. They recognized an investment in youth forges strong leaders, creates a healthy community, and guides the Nation and all residents towards its long-term goals.
The 13,000 square foot Youth Centre is now a place for youth to explore leadership opportunities and enjoy a healthy, active lifestyle. The $5.5 million facility features a learning garden, outdoor kitchen, amphitheatre and green heating and cooling systems. Eventually, the centre will house ten offices and multi-use areas. It will also provide youth programming and mentoring space for Elders to interact with youth.
Of course, the core of a successful, growing community relies on other considerations too. Planning, development, maintenance, health and safety are also important. The upcoming budget includes monies to safeguard the environment, develop the lands wisely, and service the infrastructure that provides WFN residents with comfortable lifestyles. An additional $1.9 million provides law enforcement, fire protection services, and residential tenancy needs.
Westbank First Nation continues to look ahead. Every year the annual budget sets aside money in a reserve for contingencies and capital projects. It also allocates money towards the complex administrative tasks necessary for all growing communities.
Managing their tax jurisdiction continues to open doors. Prudent development, effective management, and strong leaders create a worthwhile and sustainable community. Money from taxation funds transforms worthwhile ideas into reality, creates community, and ensures a strong, happy Nation.
Tulo student profile: Delyla Daniels
Delyla Daniels is a member of the Tk’emlúps te Secwépemc (TteS) nation, sits as president of the Kamloopa Powwow Society, a member of the Sk’elep School Parents Advisory Council and works as leasing agent for band corporations.
Delyla is currently taking a Certificate in First Nation Tax Administration (CFNTA), which is helping her with best practices, in-depth knowledge, and practical training. Recently Clearing the Path had the opportunity to sit down with Delyla to learn more about her experience as a tax administrator and as a student at the Tulo Centre of Indigenous Economics.
How did you first learn about the Tulo Centre and its programs?
I have worked for the nation for several years and had some experience with taxation. However, I realized taxation is only part of the economic picture, so originally, I enrolled in Tulo’s Applied Economics program on the advice of two of my colleagues who are Tulo graduates.
How does your experience at Tulo relate to your work at Tk’emlups te Secwépemc?
I believe a fear of taxation is counter-productive to our communities. We need to look at economic development to build our nation through long-term planning and provide the best possible services to all TteS members. I think if we look back historically, we had community gardens that were used to help everyone, even those less fortunate. In a way, this could be a form of taxation.
Having said this, we must understand how to do things properly as the nation moves forward and as communities delve into exercising their tax jurisdiction, the need for education and practical training becomes crucial.
What has been the most valuable aspect about the program for you so far?
The Tulo program has offered me a way to integrate tax knowledge into my background in land management, individual lease holdings, and has helped me look at the bigger picture of developmental strategies for a stronger future for TteS members. I think I have gained a stronger understanding of how a properly administered tax system will increase economic potential and build infrastructure.
How does taxation fit into your community’s future?
Well here in Tk’emlúps, we have seen the direct impact that taxation has brought to our community since its inception. Through the creation of the Powwow Arbor, the ability to build infrastructure, paved roads, street lights, fire protection and good drinking water, and most importantly, the ability to create meaningful jobs. These are just a few of the benefits that I have seen come to fruition through taxation that other communities may not enjoy without own source revenue. We are not tied solely to funding agreements and we can implement the communities’ vision and fund projects and services that unite the people culturally, spiritually, and socially.
Do you have any final thoughts?
First and foremost, the Tulo program is essential to a successful tax implementation for any community thinking of undertaking such an initiative. As well I think like many of my classmates going back to school hasn’t been the easiest with a family at home and full time work. However, I am fortunate in that the TteS nation invest in their employees, because they know education ensures a strong future.
FMA First Nations and Institutions mark 10 years of progress
July 2017 marks the FMA institutions’ 10th year of operations for the First Nations Fiscal Management Act (FMA). The First Nations led FMA has been instrumental in establishing jurisdiction and creating new fiscal resources for First Nations. It has helped redefine the relationship between First Nations and other governments.
The Act enables First Nations to participate more fully in the Canadian economy, become less dependent on government services and improve local economies through increased employment and business development.
The First Nations Fiscal and Statistical Management Act (FSMA) came into force with all-party support in 2006 establishing the three fiscal institutions: The First Nations Finance Authority (FNFA), the First Nations Financial Management Board (FMB), the First Nations Tax Commission (FNTC) and the First Nations Statistical Institute (FNSI). The Act was amended to form the FMA when FNSI ceased operations.
To mark the operational milestone, the institutions are planning a national meeting for all FMA First Nations in the spring of 2018. The meeting aims to showcase the successes participating FMA First Nations have experienced. It will also create a platform to engage in dialogue, re-establish the vision for the future of the FMA and consolidate support for expanded jurisdiction and other important legislative and operational changes.
Since 2007, 220 First Nations have voluntarily joined the FMA. Participating First Nations have used the tools created by the FMA to bring investment to their lands, improve the values of property, create employment opportunities, develop own source revenues and improve local services, housing and infrastructure.
FNTC Chief Commissioner C.T. (Manny) Jules reflected on the impact of the FMA:
“In November 1969, as a 17-year-old I attended a meeting where all but four First Nation communities in British Columbia came to Kamloops to reject the proposed federal assimilation policy known as the White Paper. I listened as our leaders spoke of their vision to restore our nations, build our economies, generate our own revenues, and become self-reliant governments within Canada. Working with First Nations from across the country, together, we have restored our jurisdiction, built Indigenous institutions and created strong, supportive legal and administration systems.”
“Tax jurisdiction is the foundation for a system of Indigenous government that allows our communities to prosper. It allows us to restore our jurisdictions. It means we can design policies and programs and build competitive infrastructure that supports the individual creativity of our members so they can escape poverty.”
Harold Calla, Executive Chair of the FMB provided this perspective:
“We have proven the theory that First Nations can collectively secure an investment grade credit rating and go to the capital markets. That was our biggest test. We continued to exercise our taxing jurisdictions and expand upon them.”
“A growing success is the reality that many First Nations want to become certified by the FMB in advance of taxing or borrowing. They may not be in a position to do either at the moment, but they are keen to develop the fiscal capacity to eventually do both. We now have one in three First Nations in Canada scheduled to the Act. It’s a pretty significant achievement.”
Since inception, the initiative to expand First Nation jurisdiction and taxation powers and support pooled borrowing has been First Nation-led. In 2002, First Nations took a major step and worked closely with the government to introduce a bill to create the First Nations Fiscal Management Act, which underwent a series of amendments before receiving royal assent in March 2005 and came into force in April 2006. The Act established First Nations fiscal powers and the institutional framework, mandates and purposes of the three institutions. The FMA has gone through evolutionary change and improvements in the past three decades as a result of input from scheduled First Nations and the fiscal institutions.
The development of the Other Revenues Regulation in 2011 opened the FMA to non-property tax debentures and allowed a variety of First Nations’ Own-Source Revenues to be leveraged into approximately $400 million in low-cost loans by 2017.
Ernie Daniels, President and CEO of FNFA remarked on the progress:
“The FMA is likely the most successful legislation for First Nations in terms of creating tangible change, such as building infrastructure and organizing First Nations under an independent, robust financial system and tax regime. It was developed and led by First Nations and is now governed and managed by First Nations, which is really important for further engagement with First Nations.”
And Joe Bevan, First Nations Finance Authority Chair said:
“I believe in these fiscal institutions. They are helping to kick the door open for some of us. The FMA institutions are trying to create economic development and wealth for our communities. We trust the institutions because the FMA has always been First Nations-led.”
Many fiscal and governance experts believe taxation is a fundamental for good governance. The FMA system provides First Nations with a voluntary means of reasserting their tax jurisdiction through real property taxation. It creates real incentive to improve transparency and accountability regarding expenditures of revenues. A key factor in governance is regulation, which is central to developing viable self-governing First Nations. The FMA system demonstrates how First Nations can structure their own regulatory regimes in the areas of property taxation, financial management and debt financing.
“We are proud of our accomplishments but we know we have just started. We have to fully utilize the tax powers we restored in 2005. We need to expand our tax jurisdictions to include tobacco, cannabis, corporate and resource taxation. We need to ensure our jurisdiction reflects aboriginal title and ownership of resources in our territories. We have been working on several proposals for legislation and institutions following our successful formula. We know it will be challenging, but I have great hope,” Chief Commissioner Jules stated.
“The institutions are currently working on advancing further amendments to the FMA.” Harold Calla said. “What is the scope of the FMA going to be? How will the FMA respond to self-government initiatives for the federal government and treaty First Nations? These are matters that are yet unresolved and we’re hopeful in the next budget implementation act, there will be the legislative amendments we have been pursuing to expand the scope and opportunity of First Nations to benefit from the Act.”
“We need to expand jurisdiction into other forms of taxation and even help the government do their job by building more infrastructure and more housing,” said Ernie Daniels. “These systems are in place to support development and because of the success we’ve had, there’s been significant interest in what else can be done under the Act.”
An independent study of the FMA and the fiscal institutions was undertaken by INAC to assess the progress of the FMA and the fiscal institutions, as well as to identify aspects of the system that might require attention in order to function more effectively.
The study concluded:
“The three organizations collectively are producing large and tangible impacts on First Nation communities, impacts in the form of new infrastructure, increased own source revenues, substantial economic development opportunities, increased independence from government, improved financial management and governance to name a few.”
“All three institutions are centres of innovation. They have developed and then implemented new approaches to taxation, access to capital markets, and regulation and have helped create solutions to deal with issues of scale. Their efforts at developing capacity among First Nations, capacity which is sustainable, is especially noteworthy. And they are currently involved in developing new approaches to resource development, taxation, economic development, infrastructure management, third party management and mechanisms for structuring a new fiscal relationship with the federal government.”
“These three institutions established by the Act are the most interesting innovation to occur over the past decade in First Nation country.”
The FMA has demonstrated that First Nations can take charge of their own affairs and in doing so, provide benefits for their communities and the country. The FMA model can and must be expanded to become an important part of a national strategy for closing the gap, improving productivity and achieving a nation-to-nation framework for reconciliation.
None of these successes would have been possible without engaged and dedicated First Nations working closely with the institutions to continue to expand First Nation jurisdiction to build strong First Nation economies.
The fiscal institutions look forward to the national meeting next spring and many more years of working together to create substantive change for our communities.
First Nations Summit Chiefs-in-Assembly support a jurisdiction-based fiscal relationship for First Nations and the Crown
On June 7, 2017, First Nations in BC participated in a province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown. Discussion focused on the principles of a new fiscal relationship that could support stable self-government. First Nations Summit (FNS) Chiefs-in-Assembly discussed supporting and advancing the principles with the Assembly of First Nations through a resolution.
A First Nations-Crown fiscal relationship determines many things for First Nations, including jurisdiction over taxation, the ability to generate revenue and engage in revenue sharing services and the transfer amounts from other governments to ensure First Nation services are delivered to national standards.
The current fiscal relationship does not recognize sufficient First Nation tax or service jurisdiction and does not provide stable, long-term revenues to support First Nation planning, services and infrastructure at national standards. In essence, it is not a nation-to-nation relationship.
The principles of a new fiscal relationship that support stable self-government were identified and discussed during the session, including:
New relationship to reflect the United Nations Declaration on the Rights of Indigenous Peoples, in particular, Article 4
A new First Nations-Crown fiscal relationship must reflect Article 4 of the United Nations Declaration on the Rights of Indigenous Peoples: “Indigenous Peoples, in exercising their right to self-determination, have the right to autonomy or self-government in matters relating to their internal and local affairs, as well as ways and means for financing their autonomous functions.”
Expanded tax powers and clear revenue and service jurisdiction
First Nations need protected and certain tax powers and clear jurisdictions that are similar to other governments. Also needed is a legislative framework for the transfer payment system that provides autonomy and flexibility. Finally, First Nations must be consulted on any legislation from other governments that may impact the First Nations fiscal relationship.
Incentives for economic development
First Nations need broader and more certain transfers and tax jurisdictions so they are not forced into commercial enterprises to create revenue. They also need incentives to develop better quality services and seek service efficiencies. The relationship between own source revenue (OSR) and transfers must create incentives and not unduly penalize First Nations for developing their revenue base.
Revenue related to service responsibilities
First Nations should have a clearly defined bundle of service responsibilities and a related bundle of clearly defined revenue options to help meet the costs of these services. Tying specific revenue jurisdictions to specific service responsibilities leads to better services and infrastructure and supports accountability from all governments to citizens.
Comparability
First Nation jurisdictions and revenue authorities need protections comparable to the provinces and First Nations should have comparable quality and access to government services. First Nations need the revenues to be able to provide services up to the national standards in order to “catch up” and “keep up” to the quality of life enjoyed by other Canadians.
Improved statistics
The quality of and access to First Nation statistics must be improved and First Nations will need independent capacity to develop statistics to support a new fiscal relationship.
Institutional support
First Nations require our own institutions to support, protect and expand jurisdictions and for capacity development, training and advice. First Nations also require our own institutions to establish standards and tools, and carry out research, advocacy and government-to-government relationship building.
The resolution was passed and the FNS Chiefs-in-Assembly are encouraging First Nations to review and discuss these principles within their respective communities and to refine them as necessary to meet each community’s unique vision.
?Akisq’nuk First Nation implements service tax to upgrade water system infrastructure for leased properties
This past year, the ?Akisq’nuk First Nation (AFN), located in the Columbia Valley near Invermere, became the first First Nation in Canada to implement a service tax under the First Nations Fiscal Management Act. ?Akisq’nuk is part of the Ktunaxa nation and is home to 300 members in the Columbia Valley, near Columbia Lake. The First Nation was one of the first to enter the FMA with laws developed in 2008. The new service tax will cover the cost of the water system infrastructure to a leased section of AFN’s lands named Indian Beach Estates.
“This is great for both the community and our taxpayers. Being the first First Nation in Canada to implement a service tax law, it’s been a learning process for us and we’re excited about where we are at. We’re looking forward to starting construction on the upgrades to the water system and the service tax law has been the biggest step to making that happen,” said AFN Chief Lorne Shovar. “Our taxpayers receive a direct benefit from getting the water system upgraded and for the community, it strengthens our relationship with our taxpayers. The revenues generated from those land leases and property taxes will serve the community for years to come.”
Indian Beach Estates is a recreational lakeside community situated on Lake Windermere located on AFN lands, just outside Invermere, with a head lease managed by Indian Beach Estates Management Corporation (IBEMC), which created the subdivision and provides services to the small community.
The water system was in need of significant repairs and maintenance, so IBEMC requested, on behalf of the property holders, that AFN provide the service and that the costs of the service be paid for by the service tax.
“The IBE community is thrilled to be able to start the construction on our new water distribution system. This will provide our residents and future generations with a stable and reliable system for many years to come. The relationship between Indian Beach Estates and AFN is very strong and we look forward to our continued partnership,” said IBEMC Board Member Paul Nevatte.
“This project is truly a win/win for us both and we want to thank Chief Lorne Shovar and Council for their hard work finalizing the service tax and the water infrastructure. Being the first First Nation to implement this service tax is truly an accomplishment.”
AFN developed a law for the provision of a water system replacement service for Indian Beach Estates and to provide for the costs of the service to be paid for by a service tax on property within that area of the reserve.
The existing water distribution infrastructure will be removed and new water distribution infrastructure will be installed for all the lots within Indian Beach Estates, with an estimated project cost at $2 million.
The service tax is a fixed rate charged each year to all properties within Indian Beach Estates for up to 25 years. All revenue collected from the service tax will be used for the sole purpose of the service. With the law enacted in November 2016, AFN hopes to begin construction this year with a target completion date of next spring.
CLEARING THE PATH: NEWS & SUCCESS STORIES
Defining a First Nations fiscal relationship with the Crown
Federal Minister of Justice: “We all need to continue to be strong proponents of change”
The FNTC has long championed the notion that a new fiscal relationship for First Nations should be built on a foundation of clear government powers and authorities that are not financed by transfers, but are instead financed by a core of clear revenue authorities.
On October 13, 2017, as part of regional engagements lead by a member of the AFN Chief’s Committee on Fiscal Relations, Chief David Jimmie of Squiala First Nation, First Nations in BC participated in a second province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown, building on the work, input and information shared at the initial dialogue session hosted by the First Nations Summit in June 2017. The meeting was also open to delegates from across Canada.
Many First Nations leaders delivered presentations to delegates on working together to create substantive change for Indigenous communities.
Harold Calla of the First Nations Financial Management Board reflected on the problem facing First Nations in Canada, “What happened in colonization is that we were marginalized and frozen in time. We were not allowed to evolve and build the capacities as other modern-day governments have. The majority of our communities are only familiar with transfer payment systems and as service delivery vehicles. What is thought of as self-government is actually self-administration of programs and services.”
FNTC’s Chief Commissioner C.T. (Manny) Jules shared his perspective, “If we’re going to have a level playing field as I said last June, we want the same deal that the federal and provincial governments gave themselves at the time and at the beginning and the birth of this country.”
“They divided up the land, put us on reserves and proceeded to exploit all the bounty of the land. And what do we do? We ask for transfers. Transfers are a nice way to say we’re dependent on somebody else. What we want is ultimately our own jurisdiction that extends beyond the postage stamp reserves that we live in. We have to be able to have our own jurisdiction.”
“We have all the differences like communities where I come from and other communities that are remote. How do we begin to overcome those differences? Tecumseh, one of my cultural heroes, said a single twig breaks but a bundle of twigs is strong. And that’s what we’ve been able to demonstrate here in British Columbia. Without the involvement of the Union, the Summit and the BCAFN, the whole approach to fiscal relations isn’t going to happen. We have to do it together.”
“For the smaller communities, national institutions are critically important because what we can do as a national institution is create standards and models that you would be able to assume at the local level. Not taking away any of your jurisdiction because I firmly believe all of our institutions are designed to facilitate your jurisdiction as opposed to the jurisdiction of the institutions.”
Canada’s Minister of Justice and Attorney General, Jody Wilson-Raybould delivered a keynote address, stating, “Everyone in this room shares the same values and we all have the same goal of ultimately improving the lives of our people back home in our communities.”
“We are arguably in the best position that we could be, the best position that we have been in in a long time, perhaps forever, to do something truly transformative about advancements of rights and on a scale that we haven’t previously known.”
“Moving forward, what we do together in partnership over the coming months and years will continue to lay the groundwork for truly changing the way Canada is governed, and the place of Indigenous people and our nations within Canada”
“We are in this place today because of all of you, because of your vision and the work that so many of you have done to get us to this point. It has been through your tenacity, your ingenuity, your leadership that many First Nations have already been able to begin to break through the most insidious of fiscal and government’s constraints that have inhibited Indigenous growth and potential and for you to have taken significant steps on the road to self-determination and self-government. But as we all know, more needs to be done.”
“If I can be so bold, and in my mind, today’s conference is all about planning, about being strategic, being progressive, being the trailblazers I know you all are. As Manny Jules likes to say, being on the bleeding edge of change. I think we can say we are no longer on the edge, rather we are now in the centre of the transition our country is going through to fully implement UNDRIP, to give meaning to s. 35 and to implementing the inherent right of self-government, creating opportunity and supporting positive change in communities.”
“We all need to continue to be strong proponents for change. To continue to be courageous and take bold steps.”
At the end of November, Chief Jimmie completed a report summarizing the input gathered from the regional engagement sessions and presented it to the Assembly of First Nations Special Chiefs Assembly.
In his presentation to the chiefs in assembly, Chief Jimmie said, “As part of the chief’s committee on fiscal relations, we’ve opened the door to dialogue amongst our people. Throughout the process, each of our provinces and territories had a responsibility to go out to the communities and do some regional engagement.”
“In BC, we’re looking at jurisdiction and we’re looking at expanding tax powers, those were common themes we heard. We’re looking at these long-term commitments on funding and transfers. But how do we enshrine those in legislation? That’s the kind of commitment and true nation-to-nation relationship that we’re looking for.”
BC First Nations will continue to advance the fiscal principles they have adopted as the foundation for a new fiscal relationship. First Nations, the fiscal institutions and other First Nations organizations are committed to working together on options and recommendations.
The First Nations Tax Commission will continue to advocate for a fiscal relationship that is based on First Nation revenue jurisdiction.
Westbank First Nation: Using property tax revenues to build a vibrant future
Recently Clearing the Path had the opportunity to meet with Ernest Jack, surveyor of taxes for Westbank First Nation (WFN) to discuss how property tax revenues are helping the First Nation achieve community visions. Westbank First Nation has a long taxation history under a local government services model used by many municipalities. Adapting this local government services model into a hybrid model proved a wise decision and WFN is now able to direct tax dollars to services and infrastructure that offer the most benefit to all members of the community.
In 1990, taxation generated $750,000 in revenues. They currently estimate revenues for the 2017 – 2018 taxation years will approach $14 million. One of the pivotal points for change in the community was the decision to sign a self-government agreement in 2005. This helped to increase tax revenues as the Self-Government Agreement provided certainty to investors with clear guidelines regarding business practices, leasing agreements, tax rates, and what they can expect in return from WFN in doing business.
In 2005, Westbank’s assessments on commercial values were $39 million; commercial values now top $380 million. Today, WFN is currently rank 58th among BC municipalities with a total assessments worth of $1.6 billion. They have over 400 businesses on WFN land including Home Depot, Canadian Tire, Walmart, Superstore and three Tim Hortons. The Westbank First Nation also has a strong aboriginal sector of 60 businesses including many artists, a trucking company, general construction company and restaurants such as Kekuli Café Coffee and Bannock.
The core to successfully administering the taxation revenue lies with WFN working closely with the Westbank First Nation Tax Advisory Council. The advisory council reviews tax administration budgets, including recommendations to the Chief and Council regarding tax laws and amendments. They also play a leading role in the preparation of the local government services budget, which sets property taxation rates and distribution of tax dollars. The council prioritizes funds towards worthwhile endeavours in education, public works, recreation, programming, development and administration.
Recent projects include new sidewalks, the sports court, repaving, water system upgrades, the Lakeside trail, landscaping and equipment. However, the crowning glory is the new Youth Centre opened in December 2016.
The concept for the Youth Centre began in 2012. Rapid community growth filled the gymnasium, soccer fields and ball parks to capacity. Demographics indicated a young Westbank membership, and many young families in the area. The Chief and Council approached the Advisory Council and proposed the new facility to accommodate the young demographic. They recognized an investment in youth forges strong leaders, creates a healthy community, and guides the Nation and all residents towards its long-term goals.
The 13,000 square foot Youth Centre is now a place for youth to explore leadership opportunities and enjoy a healthy, active lifestyle. The $5.5 million facility features a learning garden, outdoor kitchen, amphitheatre and green heating and cooling systems. Eventually, the centre will house ten offices and multi-use areas. It will also provide youth programming and mentoring space for Elders to interact with youth.
Of course, the core of a successful, growing community relies on other considerations too. Planning, development, maintenance, health and safety are also important. The upcoming budget includes monies to safeguard the environment, develop the lands wisely, and service the infrastructure that provides WFN residents with comfortable lifestyles. An additional $1.9 million provides law enforcement, fire protection services, and residential tenancy needs.
Westbank First Nation continues to look ahead. Every year the annual budget sets aside money in a reserve for contingencies and capital projects. It also allocates money towards the complex administrative tasks necessary for all growing communities.
Managing their tax jurisdiction continues to open doors. Prudent development, effective management, and strong leaders create a worthwhile and sustainable community. Money from taxation funds transforms worthwhile ideas into reality, creates community, and ensures a strong, happy Nation.
Tulo student profile: Delyla Daniels
Delyla Daniels is a member of the Tk’emlúps te Secwépemc (TteS) nation, sits as president of the Kamloopa Powwow Society, a member of the Sk’elep School Parents Advisory Council and works as leasing agent for band corporations.
Delyla is currently taking a Certificate in First Nation Tax Administration (CFNTA), which is helping her with best practices, in-depth knowledge, and practical training. Recently Clearing the Path had the opportunity to sit down with Delyla to learn more about her experience as a tax administrator and as a student at the Tulo Centre of Indigenous Economics.
How did you first learn about the Tulo Centre and its programs?
I have worked for the nation for several years and had some experience with taxation. However, I realized taxation is only part of the economic picture, so originally, I enrolled in Tulo’s Applied Economics program on the advice of two of my colleagues who are Tulo graduates.
How does your experience at Tulo relate to your work at Tk’emlups te Secwépemc?
I believe a fear of taxation is counter-productive to our communities. We need to look at economic development to build our nation through long-term planning and provide the best possible services to all TteS members. I think if we look back historically, we had community gardens that were used to help everyone, even those less fortunate. In a way, this could be a form of taxation.
Having said this, we must understand how to do things properly as the nation moves forward and as communities delve into exercising their tax jurisdiction, the need for education and practical training becomes crucial.
What has been the most valuable aspect about the program for you so far?
The Tulo program has offered me a way to integrate tax knowledge into my background in land management, individual lease holdings, and has helped me look at the bigger picture of developmental strategies for a stronger future for TteS members. I think I have gained a stronger understanding of how a properly administered tax system will increase economic potential and build infrastructure.
How does taxation fit into your community’s future?
Well here in Tk’emlúps, we have seen the direct impact that taxation has brought to our community since its inception. Through the creation of the Powwow Arbor, the ability to build infrastructure, paved roads, street lights, fire protection and good drinking water, and most importantly, the ability to create meaningful jobs. These are just a few of the benefits that I have seen come to fruition through taxation that other communities may not enjoy without own source revenue. We are not tied solely to funding agreements and we can implement the communities’ vision and fund projects and services that unite the people culturally, spiritually, and socially.
Do you have any final thoughts?
First and foremost, the Tulo program is essential to a successful tax implementation for any community thinking of undertaking such an initiative. As well I think like many of my classmates going back to school hasn’t been the easiest with a family at home and full time work. However, I am fortunate in that the TteS nation invest in their employees, because they know education ensures a strong future.
FMA First Nations and Institutions mark 10 years of progress
July 2017 marks the FMA institutions’ 10th year of operations for the First Nations Fiscal Management Act (FMA). The First Nations led FMA has been instrumental in establishing jurisdiction and creating new fiscal resources for First Nations. It has helped redefine the relationship between First Nations and other governments.
The Act enables First Nations to participate more fully in the Canadian economy, become less dependent on government services and improve local economies through increased employment and business development.
The First Nations Fiscal and Statistical Management Act (FSMA) came into force with all-party support in 2006 establishing the three fiscal institutions: The First Nations Finance Authority (FNFA), the First Nations Financial Management Board (FMB), the First Nations Tax Commission (FNTC) and the First Nations Statistical Institute (FNSI). The Act was amended to form the FMA when FNSI ceased operations.
To mark the operational milestone, the institutions are planning a national meeting for all FMA First Nations in the spring of 2018. The meeting aims to showcase the successes participating FMA First Nations have experienced. It will also create a platform to engage in dialogue, re-establish the vision for the future of the FMA and consolidate support for expanded jurisdiction and other important legislative and operational changes.
Since 2007, 220 First Nations have voluntarily joined the FMA. Participating First Nations have used the tools created by the FMA to bring investment to their lands, improve the values of property, create employment opportunities, develop own source revenues and improve local services, housing and infrastructure.
FNTC Chief Commissioner C.T. (Manny) Jules reflected on the impact of the FMA:
“In November 1969, as a 17-year-old I attended a meeting where all but four First Nation communities in British Columbia came to Kamloops to reject the proposed federal assimilation policy known as the White Paper. I listened as our leaders spoke of their vision to restore our nations, build our economies, generate our own revenues, and become self-reliant governments within Canada. Working with First Nations from across the country, together, we have restored our jurisdiction, built Indigenous institutions and created strong, supportive legal and administration systems.”
“Tax jurisdiction is the foundation for a system of Indigenous government that allows our communities to prosper. It allows us to restore our jurisdictions. It means we can design policies and programs and build competitive infrastructure that supports the individual creativity of our members so they can escape poverty.”
Harold Calla, Executive Chair of the FMB provided this perspective:
“We have proven the theory that First Nations can collectively secure an investment grade credit rating and go to the capital markets. That was our biggest test. We continued to exercise our taxing jurisdictions and expand upon them.”
“A growing success is the reality that many First Nations want to become certified by the FMB in advance of taxing or borrowing. They may not be in a position to do either at the moment, but they are keen to develop the fiscal capacity to eventually do both. We now have one in three First Nations in Canada scheduled to the Act. It’s a pretty significant achievement.”
Since inception, the initiative to expand First Nation jurisdiction and taxation powers and support pooled borrowing has been First Nation-led. In 2002, First Nations took a major step and worked closely with the government to introduce a bill to create the First Nations Fiscal Management Act, which underwent a series of amendments before receiving royal assent in March 2005 and came into force in April 2006. The Act established First Nations fiscal powers and the institutional framework, mandates and purposes of the three institutions. The FMA has gone through evolutionary change and improvements in the past three decades as a result of input from scheduled First Nations and the fiscal institutions.
The development of the Other Revenues Regulation in 2011 opened the FMA to non-property tax debentures and allowed a variety of First Nations’ Own-Source Revenues to be leveraged into approximately $400 million in low-cost loans by 2017.
Ernie Daniels, President and CEO of FNFA remarked on the progress:
“The FMA is likely the most successful legislation for First Nations in terms of creating tangible change, such as building infrastructure and organizing First Nations under an independent, robust financial system and tax regime. It was developed and led by First Nations and is now governed and managed by First Nations, which is really important for further engagement with First Nations.”
And Joe Bevan, First Nations Finance Authority Chair said:
“I believe in these fiscal institutions. They are helping to kick the door open for some of us. The FMA institutions are trying to create economic development and wealth for our communities. We trust the institutions because the FMA has always been First Nations-led.”
Many fiscal and governance experts believe taxation is a fundamental for good governance. The FMA system provides First Nations with a voluntary means of reasserting their tax jurisdiction through real property taxation. It creates real incentive to improve transparency and accountability regarding expenditures of revenues. A key factor in governance is regulation, which is central to developing viable self-governing First Nations. The FMA system demonstrates how First Nations can structure their own regulatory regimes in the areas of property taxation, financial management and debt financing.
“We are proud of our accomplishments but we know we have just started. We have to fully utilize the tax powers we restored in 2005. We need to expand our tax jurisdictions to include tobacco, cannabis, corporate and resource taxation. We need to ensure our jurisdiction reflects aboriginal title and ownership of resources in our territories. We have been working on several proposals for legislation and institutions following our successful formula. We know it will be challenging, but I have great hope,” Chief Commissioner Jules stated.
“The institutions are currently working on advancing further amendments to the FMA.” Harold Calla said. “What is the scope of the FMA going to be? How will the FMA respond to self-government initiatives for the federal government and treaty First Nations? These are matters that are yet unresolved and we’re hopeful in the next budget implementation act, there will be the legislative amendments we have been pursuing to expand the scope and opportunity of First Nations to benefit from the Act.”
“We need to expand jurisdiction into other forms of taxation and even help the government do their job by building more infrastructure and more housing,” said Ernie Daniels. “These systems are in place to support development and because of the success we’ve had, there’s been significant interest in what else can be done under the Act.”
An independent study of the FMA and the fiscal institutions was undertaken by INAC to assess the progress of the FMA and the fiscal institutions, as well as to identify aspects of the system that might require attention in order to function more effectively.
The study concluded:
“The three organizations collectively are producing large and tangible impacts on First Nation communities, impacts in the form of new infrastructure, increased own source revenues, substantial economic development opportunities, increased independence from government, improved financial management and governance to name a few.”
“All three institutions are centres of innovation. They have developed and then implemented new approaches to taxation, access to capital markets, and regulation and have helped create solutions to deal with issues of scale. Their efforts at developing capacity among First Nations, capacity which is sustainable, is especially noteworthy. And they are currently involved in developing new approaches to resource development, taxation, economic development, infrastructure management, third party management and mechanisms for structuring a new fiscal relationship with the federal government.”
“These three institutions established by the Act are the most interesting innovation to occur over the past decade in First Nation country.”
The FMA has demonstrated that First Nations can take charge of their own affairs and in doing so, provide benefits for their communities and the country. The FMA model can and must be expanded to become an important part of a national strategy for closing the gap, improving productivity and achieving a nation-to-nation framework for reconciliation.
None of these successes would have been possible without engaged and dedicated First Nations working closely with the institutions to continue to expand First Nation jurisdiction to build strong First Nation economies.
The fiscal institutions look forward to the national meeting next spring and many more years of working together to create substantive change for our communities.
First Nations Summit Chiefs-in-Assembly support a jurisdiction-based fiscal relationship for First Nations and the Crown
On June 7, 2017, First Nations in BC participated in a province-wide strategic dialogue session on defining a new fiscal relationship for First Nations and the Crown. Discussion focused on the principles of a new fiscal relationship that could support stable self-government. First Nations Summit (FNS) Chiefs-in-Assembly discussed supporting and advancing the principles with the Assembly of First Nations through a resolution.
A First Nations-Crown fiscal relationship determines many things for First Nations, including jurisdiction over taxation, the ability to generate revenue and engage in revenue sharing services and the transfer amounts from other governments to ensure First Nation services are delivered to national standards.
The current fiscal relationship does not recognize sufficient First Nation tax or service jurisdiction and does not provide stable, long-term revenues to support First Nation planning, services and infrastructure at national standards. In essence, it is not a nation-to-nation relationship.
The principles of a new fiscal relationship that support stable self-government were identified and discussed during the session, including:
New relationship to reflect the United Nations Declaration on the Rights of Indigenous Peoples, in particular, Article 4
A new First Nations-Crown fiscal relationship must reflect Article 4 of the United Nations Declaration on the Rights of Indigenous Peoples: “Indigenous Peoples, in exercising their right to self-determination, have the right to autonomy or self-government in matters relating to their internal and local affairs, as well as ways and means for financing their autonomous functions.”
Expanded tax powers and clear revenue and service jurisdiction
First Nations need protected and certain tax powers and clear jurisdictions that are similar to other governments. Also needed is a legislative framework for the transfer payment system that provides autonomy and flexibility. Finally, First Nations must be consulted on any legislation from other governments that may impact the First Nations fiscal relationship.
Incentives for economic development
First Nations need broader and more certain transfers and tax jurisdictions so they are not forced into commercial enterprises to create revenue. They also need incentives to develop better quality services and seek service efficiencies. The relationship between own source revenue (OSR) and transfers must create incentives and not unduly penalize First Nations for developing their revenue base.
Revenue related to service responsibilities
First Nations should have a clearly defined bundle of service responsibilities and a related bundle of clearly defined revenue options to help meet the costs of these services. Tying specific revenue jurisdictions to specific service responsibilities leads to better services and infrastructure and supports accountability from all governments to citizens.
Comparability
First Nation jurisdictions and revenue authorities need protections comparable to the provinces and First Nations should have comparable quality and access to government services. First Nations need the revenues to be able to provide services up to the national standards in order to “catch up” and “keep up” to the quality of life enjoyed by other Canadians.
Improved statistics
The quality of and access to First Nation statistics must be improved and First Nations will need independent capacity to develop statistics to support a new fiscal relationship.
Institutional support
First Nations require our own institutions to support, protect and expand jurisdictions and for capacity development, training and advice. First Nations also require our own institutions to establish standards and tools, and carry out research, advocacy and government-to-government relationship building.
The resolution was passed and the FNS Chiefs-in-Assembly are encouraging First Nations to review and discuss these principles within their respective communities and to refine them as necessary to meet each community’s unique vision.
?Akisq’nuk First Nation implements service tax to upgrade water system infrastructure for leased properties
This past year, the ?Akisq’nuk First Nation (AFN), located in the Columbia Valley near Invermere, became the first First Nation in Canada to implement a service tax under the First Nations Fiscal Management Act. ?Akisq’nuk is part of the Ktunaxa nation and is home to 300 members in the Columbia Valley, near Columbia Lake. The First Nation was one of the first to enter the FMA with laws developed in 2008. The new service tax will cover the cost of the water system infrastructure to a leased section of AFN’s lands named Indian Beach Estates.
“This is great for both the community and our taxpayers. Being the first First Nation in Canada to implement a service tax law, it’s been a learning process for us and we’re excited about where we are at. We’re looking forward to starting construction on the upgrades to the water system and the service tax law has been the biggest step to making that happen,” said AFN Chief Lorne Shovar. “Our taxpayers receive a direct benefit from getting the water system upgraded and for the community, it strengthens our relationship with our taxpayers. The revenues generated from those land leases and property taxes will serve the community for years to come.”
Indian Beach Estates is a recreational lakeside community situated on Lake Windermere located on AFN lands, just outside Invermere, with a head lease managed by Indian Beach Estates Management Corporation (IBEMC), which created the subdivision and provides services to the small community.
The water system was in need of significant repairs and maintenance, so IBEMC requested, on behalf of the property holders, that AFN provide the service and that the costs of the service be paid for by the service tax.
“The IBE community is thrilled to be able to start the construction on our new water distribution system. This will provide our residents and future generations with a stable and reliable system for many years to come. The relationship between Indian Beach Estates and AFN is very strong and we look forward to our continued partnership,” said IBEMC Board Member Paul Nevatte.
“This project is truly a win/win for us both and we want to thank Chief Lorne Shovar and Council for their hard work finalizing the service tax and the water infrastructure. Being the first First Nation to implement this service tax is truly an accomplishment.”
AFN developed a law for the provision of a water system replacement service for Indian Beach Estates and to provide for the costs of the service to be paid for by a service tax on property within that area of the reserve.
The existing water distribution infrastructure will be removed and new water distribution infrastructure will be installed for all the lots within Indian Beach Estates, with an estimated project cost at $2 million.
The service tax is a fixed rate charged each year to all properties within Indian Beach Estates for up to 25 years. All revenue collected from the service tax will be used for the sole purpose of the service. With the law enacted in November 2016, AFN hopes to begin construction this year with a target completion date of next spring.