Gradual Boost On Way In Gas Tax Fund Transfer
Prince George, BC – The politicking has paid off.
After years of lobbying Ottawa to ensure a stable, indexed stream of funds flow, in perpetuity, to local governments for public infrastructure, City Councillor Garth Frizzell says last week's agreement renewing and broadening the federal Gas Tax Fund fits the bill.
The renewed Gas Tax Fund was announced as part of Ottawa's 10-year $53-billion dollar New Building Canada Plan – appropriately named to replace the Building Canada Fund which expires this year. The Gas Tax Fund is the way a portion of the money is transferred from the federal government to municipalities. In BC, it's administered by the Union of BC Municipalities and is distributed based on population.
In past years, Prince George has received just under $3-million dollars. Last year, City Council earmarked $2.7-million dollars of those funds for extra road rehabilitation projects. (click here, for previous story) As part of the new gas tax agreement, the city's Community Works Fund allocations will be as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 2014-15 | 2015-16 | 2016-17 | 2017-18 | 2018-19 |
| $2,941,614.16 | $2,941,614.16 | $3,088,696.71 | $3,088,696.71 |
$3,235,364.09 |
"So this announcement is not new money," says Councillor Frizzell. But he points out the federal government has guaranteed it in perpetuity and, for the first time, the allotments will be indexed, increasing by two-percent each year. In addition, previous restrictions tying the funds to sustainability projects have been removed.
"So we're very happy that our political efforts really paid off," says the FCM board member. "The big transition we see with this gas tax fund in BC is that it's opened up whole new areas – recreational infrastructure, cultural infrastructure, tourism infrastructure. You can put the money towards disaster mitigation, capacity-building – a variety of other things that you never saw before."
Just how the 2014-15 allotment will be used will be laid out by City Staff in next year's budget deliberations.
Another component of the New Building Canada Plan in BC is funding for 'Strategic Priorities'. Frizzell says it's only available to communities outside of the Greater Vancouver Regional District and is for larger scale projects. It means the City of Prince George could have access to an additional $1.38-million dollars. It is application-based and no date has yet been set for submissions. "We've been talking about what sorts of project Prince George would be submitting, " says the local councillor, "So, we're still waiting back for word on what staff recommendations are."
Comments
Somewhere the is a very happy cow.
The cow is very happy that councillor frizzell nor any other Fcm member is milking this happy cow.
Because if they had been milking this cow it would have been milked dry a long, long time ago.
Happy milking!
Maybe they can use this money, when they get it, for bike lanes
Just like a welfare millionaire on the last Wednesday of the month. Money is all spent before you even have it.
If this money has come from gas tax why can’t they put it back into road rehab or new roads that was the plan originally when they started taking it.
Strategic Priority: Should be safe pedestrian traffic route from the Hart Highway and improved road lighting along the entire route. We should use the money to get kids off the highway in the dark of winter.
My concern is the funding being allocated by population. Its vehicles on the road that generate this revenue. PG has a lot of roads and a lot of trucks, so we pay more than our fair share of fuel taxes on overpriced fuel. I think a better way of allocating the funds would be through a formula that takes account of population as well as paved road lanes in the city.
At approx. $3 Million per year the City will collect over $30 Million in the next 10 years.
The Gas Tax Money can be used for any number of projects, such as roads, or storm sewer.
The new additional uses will be added in 2015 and include as stated above recreational infrastructure, cultural infrastructure, and tourism infrastructure. So people need to keep an eye on how this money is spent. Cultural infrastructure could mean a Performing Arts Centre.
A point that was not mentioned in the story is that the City can borrow money against future payments of this fund.
Palopu:”A point that was not mentioned in the story is that the City can borrow money against future payments of this fund.”
Please do not give them any such idea just in case it never occurred to them!
Ooops, too late!
All the gasoline (not gas) tax transfer funds should be used for the original purpose only: Roads, bridges, traffic related infrastructure!
The PAC will be borrowed for, it has been decided a long time ago!
PrinceGeorge: “All the gasoline (not gas) tax transfer funds should be used for the original purpose only: Roads, bridges, traffic related infrastructure!”
Agreed. If the City somehow manages to funnel this money towards a PAC or some other similar expense, they should be taken to task.
shouldn’t all $# million have gone into roads… who is going on a holiday with the other $.3 million
How about using it to reduce our property taxes and servicing our ever-increasing debt!
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