December 16, 2011

With the passage of Bill C-13, Keeping Canada’s Economy and Jobs Growing Act, the federal Gas Tax Fund is now enshrined in legislation as a permanent annual source of infrastructure funding for Canada’s municipalities at $2 billion per year.

This fulfills a government commitment originally made in Budget 2008.

AMO expects the federal government to begin negotiations on a permanent agreement in the coming months. This process will be tied in with federal consultations with provinces, territories, the Federation of Canadian Municipalities (FCM) and other stakeholders to build a long-term plan for investing in public infrastructure. During this time, AMO will work with FCM to ensure the Gas Tax Fund is indexed so that investments can keep pace with the pressures of economic and population growth.

Additional information about the agreement (including individual allocations) will be provided when it becomes available. AMO is targeting completion of the negotiations and a full agreement by mid-2013, so that municipalities can execute their funding agreements and can plan for their allocation without missing any payments.

Under the existing allocation, Ontario municipalities receive $746 million annually for investment in six categories of infrastructure or projects that contribute to long-term planning. Since 2005, the Gas Tax Fund has resulted in federal investments of over $1.6 billion in 3,100 municipal infrastructure projects worth a total of $5.4 billion.