Comment 86932

By Mal (anonymous) | Posted March 01, 2013 at 08:12:08 in reply to Comment 86926

"Ontario municipalities have recently received confirmation of their allocation amounts for the Gas Tax Extension period (2010-2014), with Hamilton to receive approximately $123.8 million over the four year period, or $30.95 million annually... Beyond 2014, the federal gas tax funding revenue sharing of approximately $750 million a year was committed as a permanent source of infrastructure funding for Ontario’s municipal governments by the 2008 Federal Budget. This amount reflects the equivalent of 5 cents a litre and no escalator mechanism was included in the funding permanency commitment...Based on the Municipal Funding Agreement eligible project and expense eligibility and the 2010 Tax Supported Capital Budget, staff project that the two eligible project categories for the 2010-2014 extension period be Roads & Bridges and beginning in 2011 the addition of Public Transit with financing recommendations to be provided in associated capital budget plans."

"Federal gas tax funding may be used for environmental sustainable municipal infrastructure (ESMI) projects that contribute to cleaner water, cleaner air and reduced greenhouse emissions. Eligible project categories include public transit, water, wastewater, solid waste, community energy systems, capacity building and local roads and bridges where sustainability outcomes can be demonstrated."

Table 1 of Report FCS10021 shows that from 2005 to 2010, Federal Gas Tax funding had Solid Waste (eg. Greencart Program Implementation, CCF Construction & MRF Upgrades) to the tune of $40.4 million, Roads and Bridges to the tune of $40.5 million; and Community Energy Systems (ie. City Hall Rebuild Project) to the tune of $30.7 million.

None of the Federal gas Tax funding appears to have gone into transit during that period, though the above passage suggests that some funding was going to transit in 2011. Five months after the above report was published, Report PW10077 recommended that "a permanent commitment of $3 million from the Corporate Federal Gas Tax (FGT) reserve be approved to fund replacement buses." There was no budget for new buses this year, so I can guess what came of that recommendation.

The above report also recommended "that the allocation of $3.7 million in Federal Gas Tax for the replacement of lost Ontario Bus Replacement Program (OBRP) funding be referred to the 2011 Capital budget process for the consideration of Council," which suggests that the province is playing a shell game.

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