APPENDIX B

BILL C-69 AND ITS EFFECTS O14 SURREY

Bill C-69 limits CAP payments to Ontario, Alberta and British Columbia (the
three richest provinces) to a maximum 5% annual increase over the total amount
received through cost sharing in 1990.

In practical terms, the "capping" of CAP means that regardless of the amount the
District grants to Surrey Reconnect or other eligible programs, the maximum amount
cost shared will be $7,500 (the amount Surrey receives for the base year 1990) pius 5%
each year.

Example:

Year Surrey Grant
Maxi Cost Shari ith CAP

1990 $15,000 $7,500
1991 $22,500 $7,500 + 5% = $7,875
1992 $22,500 $7,875 + 5% = $8,269

The limit on the CAP program has left the Province of British Columbia, and by
extension, municipalities like Surrey at a financial disadvantage. In addition, because it
recognized the potential for CAP recovery after the passage of Bill C-69, Surrey has
missed cost sharing opportunities in relation to other municipalities. For example,
Vancouver has been making applications for CAP cost-sharing since 1983 and will
receive approximately $1,250,000 for 1990 in cost sharing for grants made to community
organizations, direct service programs, and social planning. Under the CAP ceiling,
Vancouver will continue to be eligible for this amount, plus 5% each year.

Recognizing that Bill C-69 will be reviewed in 1995, it is timely for Surrey to
register its concerns to the Federal Government regarding the reduction of its funding
support for social programmes. Additionally, Surrey should pursue a more equitable
allocation to municipalities (for example, municipalities should be allowed to receive
CAP funding up to the threshold established by the City of Vancouver).

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