Local Gas Tax Funding Announced

News Release
For Immediate Release

Federal Gas Tax Fund Supports Infrastructure in Lambton-Kent-Middlesex
Second installment of annual $2 billion transfer now available for municipal infrastructure

November 18, 2014

Bev Shipley, Member of Parliament for Lambton-Kent-Middlesex, on behalf of the Honourable Denis Lebel, Minister of Infrastructure, Communities, and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, has announced that the second instalment of the federal Gas Tax Fund for 2014 is being made available to support local infrastructure priorities.

Shipley said this is without a doubt the most significant capital funding program for municipalities that Canada has ever had.

“The Federal gas tax refund to municipalities is recognized as the best ongoing program they have to help finance capital projects,” he said. “It’s effective, efficient to administer, it’s indexed to increase each year, and it comes in two instalments. The municipality picks its projects and can put the dollars in reserve for a year to build a larger cash flow for a large project.”
Shipley said he is pleased that his Government is increasing their commitment to infrastructure funding to maintain strong communities and businesses.
Since 2006 our Government has made significant improvements to the Gas Tax Fund:
– In 2007 it was extended
– In 2009 it was doubled from $1 billion to $2 billion annually
– In 2011 it was legislated as a permanent source of funding, and,
– In 2013 it was indexed at two per cent per year, meaning that it will grow by $1.8 billion over the next decade.

Eligible projects include things like drainage improvements, water system upgrades, road reconstruction and bridge work. Below is a list of Lambton-Kent-Middlesex municipalities and the amounts they have received in the latest instalment of Gas Tax Funds:

Lambton County (Upper Tier) $3,608,511
Brooke-Alvinston $73,778
Dawn-Euphemia $59,330
Lambton Shores (Lower tier) $308,549
Warwick (Lower tier) $107,627
Middlesex County (Upper tier) $2,049,927
Adelaide-Metcalfe (Lower tier) $87,677
Lucan Biddulph (Lower tier) $125,609
Middlesex Centre (Lower tier) $477,388
Newbury (Lower tier) $12,943
North Middlesex (Lower tier) $192,785
Southwest Middlesex (Lower tier) $169,679
Strathroy-Caradoc (Lower tier) $607,427
Chatham-Kent (single tier) $6,003,673

Quick Facts

• The federal Gas Tax Fund transfer has provided $14 billion to Canadian communities to date. Over the 10-year life of the New Building Canada Plan from 2014 to 2024, the Gas Tax Fund will provide close to $22 billion in funding for municipalities.
• Federal Gas Tax funding is provided up front, twice a year. Projects are chosen by local governments and support the local infrastructure priorities of each community.
• Thanks to new, expanded eligible investment categories, funding can now be spent in the following areas: drinking water; wastewater; solid waste; public transit; local roads and bridges; community energy systems; capacity building; disaster mitigation; broadband connectivity; highways; short-line rail; short-sea shipping; brownfield redevelopment; regional and local airports; and projects supporting culture, tourism, sport and recreation.
• The federal Gas Tax Fund is the largest component of the New Building Canada Plan, which will provide $53 billion in funding to communities across the country over the next decade.
• Federal GTF payments flow twice a year, generally in July and November, to provincial and territorial governments. Provinces and territories and, in some cases, municipal associations, in turn, distribute the municipal allocations in accordance with the terms and conditions set out in their respective funding agreements with municipalities. The actual timing of the second payment varies, depending on the administrative requirements in respective agreements with each province or territory.
• By enshrining these commitments in legislation, provinces, territories and municipalities are assured of an ongoing funding stream to address their municipal infrastructure needs and priorities.