PART XXV

FINANCIAL ARRANGEMENTS

Principles of Financing

223. The fiscal relationship between Canada and Westbank First Nation shall be based on a government-to-government fiscal transfer.

224. The Parties are committed to the principle that the financing of self-government under this Agreement is a shared responsibility of Westbank First Nation and Canada.

225.

1. The Parties shall, prior to the ratification of this Agreement, and thereafter at five year intervals, or at such other intervals as the Parties may agree, negotiate a financial transfer agreement by which funding shall be provided to Westbank First Nation in order to enable the provision of agreed-upon public services.



2. Financial transfer agreements shall reflect the principle of reasonably comparable levels of public services to Westbank First Nation in comparison to other communities in southern British Columbia taking into account Westbank First Nation own source revenue capacity.

226. Westbank First Nation's delivery of public services to levels comparable to those provided to other communities in southern British Columbia, where program delivery efficiencies related to size, capacity and economies of scale are evident, may require Westbank First Nation to enter into cooperative jurisdictional or program delivery arrangements with other First Nation governments or other governments. For greater certainty, nothing in this section prevents Westbank First Nation from enhancing the delivery of public services to its Members using its own source revenues.

227. The level of funding provided by Canada and required to fulfill commitments set out in section 225 is set out in the financial transfer agreement.

228. During the term of a financial transfer agreement, Westbank First Nation and Canada agree to examine jointly the need to amend the financial transfer agreement in light of decisions of courts or administrative tribunals which significantly impact upon the number of eligible recipients of programs and services funded under the terms of the financial transfer agreement.

The Financial Transfer Agreement

229. In negotiating financial transfer agreements, the Parties shall take into account the following:

1. one time implementation costs, in the first financial transfer agreement;



2. costs to operate Westbank First Nation government;



3. the desirability of reasonably stable, predictable and flexible funding arrangements;



4. levels of support provided by governments to Westbank First Nation;



5. the jurisdictions of, and authorities, obligations, programs and services assumed, or to be assumed, by Westbank First Nation during the duration of the particular funding agreement;



6. Westbank First Nation's own source revenue capacity;



7. the efficiency and cost-effectiveness of the proposed arrangements, including issues related to the size, location and accessibility of Westbank First Nation; and



8. levels of support provided to other First Nations by government.

230. The exercise of Westbank First Nation's legislative authority pursuant to this Agreement shall not create or imply any funding or financial obligation for Canada.

231. The financial transfer agreements entered into pursuant to this Agreement may consolidate federal program funding for Westbank First Nation.

232. For greater certainty, funding provided in a financial transfer agreement entered into pursuant to this Agreement is money given to Westbank First Nation pursuant to an agreement between Westbank First Nation and Canada.

233. Any financial transfer agreements entered into pursuant to this Agreement shall be subject to the terms and conditions negotiated between Canada and Westbank First Nation.

Westbank First Nation Cost-Sharing of Self-Government

234.

1. In negotiating the initial financial transfer agreement, Westbank First Nation's own source revenue capacity shall not be considered.



2. In negotiating subsequent financial transfer agreements, and not more than seven years after the Effective Date, the consideration of Westbank First Nation's own source revenue capacity shall be taken into account in a manner that does not create disincentives for Westbank First Nation to raise revenues and it may be phased in on an incremental and staged basis over an agreed upon period of time.

235. Unless specific sources of own source revenue capacity are determined by the Parties to be exempt from calculation, all sources of Westbank First Nation government revenue shall be included in the calculation of Westbank First Nation own source revenue capacity.

236. For greater certainty, Westbank First Nation's own source revenue capacity refers solely to the revenue capacity of Westbank First Nation government.

237. When taking into account Westbank First Nation's own source revenue capacity in the negotiation of the second and subsequent financial transfer agreements, the Parties will give due regard to Westbank First Nation's contribution to the cost of Westbank First Nation government.

238.

1. Westbank First Nation's own source revenue capacity shall be taken into account in the determination of funding set out in the financial transfer agreement for programs and services which Westbank First Nation provides pursuant to jurisdictions set out in the Agreement.



2. Programs and services which Westbank First Nation delivers on behalf of Canada, in areas where Westbank First Nation has no jurisdiction in this Agreement, shall be delivered in accordance with the terms and conditions of the agreements negotiated for the delivery of those programs and services.

239. During the term of the first financial transfer agreement, the Parties shall determine and mutually agree upon a system of data collection and information exchange for the measurement of own source revenue capacity.

240. Any own source revenue agreement reached between Canada and Westbank First Nation shall be negotiated without prejudice to any future financing arrangements that may arise out of treaty negotiations in the province or flow from a potential treaty.

Provisions Respecting Financial Transfer Agreements

241. Financial transfer agreements shall be in the form of a contract which shall be attached to, but not form part of, this Agreement, and shall be subject to the appropriation of funds by the Parliament of Canada.

242. The initial and subsequent financial transfer agreements may reflect a progressive implementation of Westbank First Nation jurisdiction set out in this Agreement.

243. Financial transfer agreements shall set out the manner in which funding levels may be adjusted during the period of the financial transfer agreement.

244. The financial transfer agreements shall include provisions which enable federal Ministers to fulfill accountability requirements to the Parliament of Canada with respect to federal transfers under the financial transfer agreements.

Review and Renewal of Financial Transfer Agreements

245. Every five years, or at such other period as the Parties may agree, the Parties shall negotiate a renewal of the financial transfer agreements by which funding may be provided to Westbank First Nation.

246. Such negotiations may begin at any time prior to the end of the fourth fiscal year of the then current financial transfer agreement, but in any event shall begin no later than April 1^st of the final fiscal year covered by the financial transfer agreement.

247. In the event that a renewal of the financial transfer agreement is not executed by the day of the expiry of the period covered by the financial transfer agreement which is being renewed, Canada shall provide to Westbank First Nation a financial transfer in the amount and subject to the terms and conditions set out in the financial transfer agreement then in existence, thereby extending the funding period under the financial transfer agreement for not more than one additional year.

248. The renewed agreement shall come into force on the first day after the expiration of the previous financial transfer agreement and shall expire on March 31^st five years later or such other date as the Parties may agree.

249. Despite sections 245 to 248, and by mutual consent, Canada and Westbank First Nation may enter into new financial agreements based on new mechanisms that may be developed and which shall consider the elements set out in section 229.

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