02/01/2005

Toronto, ON., February 1, 2005. AMO President Roger Anderson is applauding an announcement from Federal Infrastructure and Communities Minister John Godfrey on a national allocation formula for federal gas tax revenues for municipal infrastructure.
“By adopting an allocation formula for provinces and territories based on population, the federal government has opted for equity and fairness over any particular regional or local interests,” said Anderson.  “This formula recognizes that communities of all sizes in every part of Canada are facing a substantial and growing infrastructure deficit.”

“Today’s announcement builds on federal New Deal commitments,” said Anderson.  “Coupled with last year’s full GST rebate for municipalities and the announcement of the Canada-Ontario Municipal Rural Infrastructure Program in November, the federal New Deal is moving forward.” 

At maturity, the formula will provide federal gas tax revenues of over $746 million a year to municipalities in every part of Ontario.  

The announcement states that funds from the gas tax will be directed at environmentally sustainable municipal infrastructure, such as water and wastewater systems, solid waste management, road and bridge rehabilitation, public transit, community energy systems, and capacity building. 

The next step for Ontario will be discussions between Canada, Ontario and Ontario’s municipal governments to develop an allocation formula that works within Ontario.

Anderson said, “In Ontario, we want to ensure that the allocation of federal gas tax revenues among Ontario’s municipalities is equitable and fair, and reflects the very real needs of municipal of all sizes, in every part of this province.”

The Association of Municipalities of Ontario (AMO) is a non-profit organization representing almost all of Ontario’s 445 municipal governments.  AMO supports and enhances strong and effective municipal government in Ontario and promotes the value of municipal government as a vital and essential component of Ontario and Canada’s political system.

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