B.C. eases borrowing rules to help municipalities build

Key Takeaways:

• Municipalities can now borrow up to 10% of their annual revenue, and up to $150 per capita for short-term debt, without requiring a public vote, easing access to capital for infrastructure projects.
• The Province says the updates respond to municipal concerns about outdated borrowing thresholds that slowed down the delivery of essential infrastructure like roads, utilities, and community amenities.
• The new borrowing flexibility complements other provincial initiatives, including the $1-billion Growing Communities Fund and grant programs to help municipalities plan and develop housing more efficiently.

The Whole Story:

British Columbia municipalities will now have greater flexibility to finance infrastructure projects after the province amended borrowing regulations to speed up capital project delivery and reduce administrative delays.

The changes, which took effect June 9, 2025, allow municipalities to borrow more money without requiring approval from voters — a move the province says responds to long-standing concerns over outdated borrowing thresholds that slowed down project timelines and increased costs.

“Municipalities told us that outdated borrowing thresholds were slowing down their ability to deliver the infrastructure people count on,” said Housing and Municipal Affairs Minister Ravi Kahlon. “We have responded by expanding the borrowing powers for municipalities so they can act faster, reduce costs and deliver the services that support growing communities.”

Under the revised rules, municipalities can now borrow up to 10% of their annual revenue — double the previous limit — without holding a public vote. For short-term borrowing of less than five years, the per-capita cap has been raised from $50 to $150. The changes apply to all 161 municipalities in the province, with the exception of Vancouver, which is governed under separate legislation.

The Union of B.C. Municipalities welcomed the move, calling it a practical response to inflation and infrastructure demands. “The amendments will help some local governments manage essential infrastructure more efficiently, ensuring public assets continue to meet the needs of communities facing climate change and population growth,” said UBCM president Trish Mandewo.

Local leaders echoed that sentiment, saying the new rules will enable them to respond more quickly to growth pressures.

“These changes will make it easier for all growing communities in B.C. to move forward on major projects more efficiently,” said Abbotsford Mayor Ross Siemens.

Burnaby Mayor Mike Hurley called the updated framework “an important step” in tackling housing and infrastructure needs, while Nanaimo Mayor Leonard Krog described the amendments as “a timely and practical response to the challenges fast-growing communities… are facing.”

The regulatory update follows recommendations made by a provincial-local government working group that reviewed borrowing limits in 2024. The changes complement other provincial efforts to support municipalities, including the $1-billion Growing Communities Fund, $51 million in grants for planning activities, and $25 million through the Local Government Development Approvals Program.

The Province said the updates reflect current economic conditions and will better equip municipalities to build infrastructure that supports housing development and population growth.