Frequently Asked Questions (FAQs) about eligible projects and costs under the Municipal Funding Agreement.
What is Capacity Building and what is eligible under this category?

Capacity Building is designed to support long-term planning in municipalities. This includes Asset Management activities such as consulting costs, the acquisition of software, training directly related to asset management and other studies, strategies or systems related to it.

Would the implementation of source water protection be eligible for funding under the federal Gas Tax Fund?

It is possible that the implementation of source water protection could be considered in the Capacity Building category as part of long-term planning and asset management. However, some costs could be classified as ineligible. This includes staff time/costs, and items that would be considered regular operating costs of a municipality. The municipality would need to effectively demonstrate that it is part of a Capacity Building project and not just regular municipal operations. Capital projects may be eligible in the water and wastewater categories. The purchase of land however is not eligible.

Would the addition of bike lanes to a roadway be eligible under the federal Gas Tax Fund?

Maybe. If you are expanding the pavement area or building separated lanes, then bicycle lanes would qualify under "local roads and bridges" as active transportation.

However if you are applying paint to an existing roadway then bike lanes (and sharrows) would be ineligible. This is because the application of roadway paint is considered a municipal operating expense. Federal Gas Tax Funds must be applied to capital expenditures.

Would sidewalks be eligible under the federal Gas Tax Fund?

Yes. Sidewalks would qualify under “local roads and bridges” as active transportation.

Are courier costs eligible under the federal Gas Tax Fund?

Courier costs incurred to move documents between parties are considered normal operating costs of the municipality and would not be considered eligible. If however, you are couriering parts directly related to an eligible project these are considered eligible costs.

Are environmental assessment costs or project design/engineering costs eligible under the federal Gas Tax Fund?

Environmental assessment and project design/engineering costs become eligible capital costs at the stage where the municipality has identified its preferred solution and is starting to work towards design of the preferred solution. To be eligible capital costs, a municipality must use Gas Tax funds for related construction activities.

If a municipality is required to hold a public meeting as per the environmental assessment process, is the cost of notifying the public and hosting the meeting eligible?

Yes, these costs are eligible.

Are municipal administration costs eligible?

No. Under the new Agreement, a municipality’s costs of administering and implementing the Gas Tax Agreement are not eligible. Costs such as legal review of the Agreement, annual reporting and municipal staff time are not eligible expenditures.

Communications costs however are eligible as a project expenditure.