Service Delivery Agreement (Canada)


Service Delivery Agreements may exist between Aboriginal governments or councils, and municipal governments or district councils, for the provision of infrastructure and services to Aboriginal communities. Under the Canadian Constitution, lands which are reserved for First Nations come under federal government jurisdiction. Therefore, they do not form part of the tax base from which municipalities may properly draw taxes. When a reserve is created or added to as a result of a land claims or self-government agreement, municipalities risk a reduction in property tax revenue. First Nations are therefore encouraged to negotiate reasonable compensation measures. The development of service delivery agreements may be a component of such negotiations.

Extended Definition

Such agreements may provide for the provision of a range of services by the municipal government including those relating to emergency and rescue matters, waste and rubbish removal, regional and local parks, road maintenance, libraries, swimming pool operation, building inspection and dog control. They are generally made for a set period of time with a date specified for renewal. The funding to reimburse the municipality for the provision of such services is to be arranged by the First Nation or Aboriginal organisation with the federal and provincial governments. Agreements may be as comprehensive or limited as the parties consider necessary. They are also known as service agreements, or service provision agreements.