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July 29, 1975

Mayor J.M. Campbell and Council
City of Port Coquitlam
2272 McAllister Avenue
Port Coquitlam, B.C. V3C 2A8

Dear Mayor Campbell and Council:

In the absence of the Premier, I am pleased to enclose a cheque in the
amount of $25,000 representing your municipality's basic support grant provided
under the Natural Gas Revenue Sharing Act.

The basic support grant is a major component of the Provincial Government's
natural gas revenue-sharing program. The program itself represents a significant
milestone in provincial-municipal relations because it guarantees a share of
British Columbia's resource revenues to the Province's municipalities.

The entire revenue-sharing program, including the basic support grant, was
designed in consultation with the Union of British Columbia Municipalities.
Several components of the program, such as those involving operating costs and
housing starts are directed at reducing the financial burdens associated with
size and growth. The basic support grant, onthe other hand, recognizes that
smaller communities with less rapid growth rates face financial pressures too.
For that reason, a basic sum has been made available to every municipality,
regardless of its size. In order to maintain a realistic property tax distribution
within and between municipalities, any portion of the basic support grant which
exceeds fifty per cent of the municipality’ 1974 general purpose real property
tax revenue must be placed in a statutory erve fund established under the
provisions of section 301 of the Municipa. ct.

The Natural Gas Revenue Sharing Act is more thana precedent in provincial-
municipal relations. It also represents a significant addition to the municipal
revenue base. J am confident that the benefits flowing from the Act will be
enduring to British Columbians.

Yours. truly,

Lory
Lit wet
Jame VEG her

Minister