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AMO signs new ten-year federal Gas Tax Fund Agreement


News provided by

Association of Municipalities of Ontario

Jul 11, 2014, 09:15 ET

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Gas Tax Fund impact highlighted in video featuring Town of Prescott

TORONTO, July 11, 2014 /CNW/ - The federal Gas Tax Fund Administrative Agreement was signed today at the Hillcrest Transit Complex in Toronto. The Honourable Joe Oliver, Minister of Finance, Association of Municipalities of Ontario (AMO) President Russ Powers and City of Toronto Mayor Rob Ford signed the Agreement that will guide the delivery of Gas Tax funding to Ontario communities for the next 10 years.

"We are proud to have reached an Agreement with the Government of Canada that will keep federal Gas Tax funds flowing to Ontario's municipal governments," said Russ Powers, AMO President. "I know that municipalities are eager to put this critical federal funding to work building, repairing and improving Ontario's infrastructure."

The new Agreement builds on the Fund's strengths with changes that will benefit Ontario communities. New project categories have been added so that municipalities can invest in many different types of infrastructure that meets local needs. The Fund is now indexed so that it will grow over time. Indexation will benefit municipalities in 2016 and 2018.

To highlight the Fund's impact on people, communities and local infrastructure, AMO today released a video that celebrates federal Gas Tax Fund investment in the Town of Prescott. The Town used the Gas Tax Fund to rehabilitate Industrial Road and Irvine Drive – roads that lead to several local employers including Kriska Transportation, Rideau St. Lawrence Distribution Inc. and Beach Home Hardware.

"Investing in local infrastructure is vital to Prescott's ability to attract residents and businesses," said Brett Todd, Mayor of the Town of Prescott. "We have used the federal Gas Tax Fund to invest in several key projects, including local road rehabilitation."

Prescott invested more than $250,000 of federal Gas Tax funding into the Industrial Road and Irvine Drive project. The roads are now smooth and safe providing better access to local businesses. Prescott is not alone. Municipalities across Ontario use the federal Gas Tax Fund to invest in priority local infrastructure that supports job creation and economic growth. To date, municipalities have invested $3.2 billion in 5,300 projects worth more than $9.1 billion.

"Each municipality is unique and the flexibility of the Gas Tax Fund enables municipal councils to identify local priorities and invest where it is needed the most," said Russ Powers, AMO President. "Just like in Prescott, Ontario communities are investing in important local infrastructure.

Nationally, the federal Gas Tax Fund is the only permanent and stable source of funding for municipal infrastructure. It provides Ontario municipalities with $744 million per year. AMO delivers the Fund to all Ontario municipalities, except Toronto. It is delivered twice a year, on a per capita basis. The Agreement signed today will govern the flow of funds to 2023. Funding is invested in infrastructure that makes our communities safer, more efficient and prosperous. You can learn more about the Gas Tax Fund in Ontario by visiting www.gastaxatwork.ca or @GasTaxinOntario on Twitter.

AMO is a non-profit organization representing almost all of Ontario's 444 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.

Video with caption: "video: The federal Gas Tax Fund is at work in the Town of Prescott, Ontario.". Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20140711_C2348_VIDEO_EN_4228.mp4&poster=http%3A%2F%2Fphotos.newswire.ca%2Fimages%2F20140711_C2348_VIDEO_EN_4228.jpg&order=1&jdd=20140711&cnum=C2348

SOURCE: Association of Municipalities of Ontario

For further information: Brian Lambie, AMO Media Contact, 416-729-5425, [email protected]; Follow AMO on Twitter: @AMOPolicy

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