04/03/2009

"2009 marks the final year of the First Federal Gas Tax Agreement where per capita funding reaches two times that of 2008," said Peter Hume, AMO President.
“Previous announcements by the Federal Government, first on the Extension (2010 to 2014) and then permanency of the Federal Gas Tax Revenue will continue to allow municipalities the ability to undertake solid, informed infrastructure financial planning.”

Background:

The Federal Gas Tax Revenue provides municipalities with a predictable long term revenue stream that has allowed for local councils to address over 1,600 local priority infrastructure projects including municipal facility energy retrofits, water and wastewater system improvements, improvements to public transit and transportation infrastructure. The framework Agreement has also allowed the federal government to annually flow funding quickly and efficiently to municipalities in Ontario.

In June 2005 when AMO entered into the Federal Gas Tax Agreement, the schedule of payments over the life of the Agreement were included as follows:

 Fiscal year     Canada's Contribution to
 Ontario Municipalities via 
              AMO
           (millions)
 
  2009-2010  $ 581.0 
  2008-2009  $ 290.5 
  2007-2008  $ 232.4 
  2006-2007  $ 174.3 
  2005-2006  $174.3 
  TOTAL  $1,452.6 

The per capita rate in 2008 was $32.49, in 2009 the funding increases to $64.99 per capita (based on 2001 Statistics Canada population data).  

The Federal Government announced today that it is accelerating payments by three months. AMO is anticipating the July 2009 installment to be transferred shortly. As soon as AMO receives the payment we will issue payments to municipalities that have met all the reporting requirements for 2008.