Toronto, Ont., April 5, 2005 – The Association of Municipalities of Ontario (AMO) today announced its position on the allocation of federal gas tax revenues among Ontario’s municipalities.
When AMO’s Board of Directors met recently, it considered the issue of how the federal gas tax should be allocated among all 445 municipalities in Ontario.  The Board unanimously adopted the position that federal gas tax revenues should be allocated among Ontario’s municipalities based solely on population.  

“Allocation by population is fair and equitable, ensuring that people in municipalities of all sizes, in every part of Ontario, will benefit equally from this important New Deal initiative,” said AMO President Roger Anderson.   

The Board also took the position that, in the case of two-tier municipal governments, the allocation would be divided 50:50 between upper and lower-tier municipal governments, recognizing that both upper-tier and lower-tier municipalities have infrastructure needs. 

The Federal Government announced on February 1, 2005, that the allocation of federal gas tax revenues among Canada’s provinces and territories would be based primarily on population.  AMO and the Government of Ontario applauded the announcement as fair and equitable.   

The AMO Board endorsed the commitment of the Federal Government that the gas tax funding should be invested in a range of sustainable infrastructure projects including: transit, water and wastewater systems, waste management, the rehabilitation of roads and bridges, community energy projects and capacity building, with additional flexibility in smaller communities.  

“The AMO Board’s unanimous position on the gas tax allocation is an important step in moving forward as quickly as possible on the gas tax initiative,” said Anderson.  “A unanimous position sends a strong and clear signal to the Federal Government that AMO members are unified in the need to invest federal gas tax revenues in priority infrastructure projects without delay.”  

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.

- 30 -