Five First Nations Join Fiscal Management Act

Summary#

This is the Order Amending the Schedule to the First Nations Fiscal Management Act. It adds five First Nations to the list of communities that can use the tools and services set out under the First Nations Fiscal Management Act, and it came into force on July 20, 2020.

What it does#

• Adds these First Nations to the schedule to the First Nations Fiscal Management Act:
  • Animbiigoo Zaagi’igan Anishinaabek
  • Caldwell First Nation
  • Eel River Bar First Nation
  • Sapotaweyak Cree Nation
  • York Factory First Nation
• Lets those First Nations access services from the national institutions created under the Act, including the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.
• Gives those First Nations the option (if their governments choose) to:
  • set up a property tax system under the Act and use property-tax or other revenues for community projects;
  • seek certification for financial management and financial performance; and
  • apply to use a First Nations bond financing regime to borrow against their own revenue streams.
• The Order entered into force on July 20, 2020 (the day it was registered).

Who's affected#

• Directly affected: the five First Nations listed above — Animbiigoo Zaagi’igan Anishinaabek, Caldwell First Nation, Eel River Bar First Nation, Sapotaweyak Cree Nation, and York Factory First Nation.
• People in those communities may see new local decisions about property taxes, borrowing, or spending if their councils choose to use the Act’s tools.
• Relevant organizations include the national First Nation institutions named above, and potential lenders or investors who could participate if a community uses bond financing.
• If it’s unclear who is affected beyond these groups, it’s because the changes are optional and only take effect if a First Nation chooses to use the Act’s powers.

Why it matters#

• It gives these First Nations optional tools to raise and manage money locally, to fund infrastructure, and to strengthen financial systems. That can help community planning, housing, roads, or other projects.
• It can open the door to borrowing from capital markets through bonds, which some communities use to finance larger projects.
• It is an administrative, opt-in change responding to requests from the band councils; there is no immediate new federal cost reported and no automatic new taxes unless a First Nation chooses to impose them.