Corporate Powers

In order for local government’s to operate efficiently, they must be able to exercise certain fundamental powers. In British Columbia, local government powers are broadly stated in provincial legislation and are similar for both municipalities and for regional districts although they are expressed differently.
 

The corporate powers for municipalities are stated in Section 8 of the Community Charter as being natural person powers. That is, they have the same rights, powers and privilege of a natural person of full capacity. For example, they can enter into agreements, buy and dispose of property, sue or be sued, hire employees, provide assistance and borrow money. For regional districts, their corporate powers are listed more explicitly in Section 176 of the Local Government Act.
 

While the local government corporate powers are quite broad, there are some limitations and requirements in relation to these powers. For example, while a local government can sell a parcel of land that it owns, it must first publish notice of its intentions. In addition, while local governments can borrow money, if the term is longer than five years the local governments may have to seek the approval of their electors and will need to obtain the approval of the Inspector of Municipalities.
 

Agreements are used by local governments for many purposes. For example: a company can be contracted to provide garbage collection; photocopiers and other equipment can be leased; statutory right of ways can be obtained for sewer lines located on private land; and employment contracts with staff can be signed. Another type of agreement known as a partnering agreement or public/private parternship (361 KB), allows local governments to contract with private sector entities to provide public infrastructure and community facilities.
 

Assistance is a grant, benefit, advantage or other from of assistance, including an exemption from a tax, fee or charge. There are a variety of reasons why a local governments would provide assistance to an organization. For example, they might provide grants to theatre groups, galleries, or symphonies to encourage a vibrant arts community. They might also provide a tax exemption to an organization that provides social relief to citizens in need. However, they cannot provide assistance to a business unless it is under a partnering agreement.