Gas Tax Fund Agreements

Across the province of New Brunswick, local infrastructure improvements are made possible by the Federal Gas Tax Fund. The Federal Gas Tax Fund (GTF) is a permanent source of funding made available to local governments every two years under the Formula of the Canada-New Brunswick Agreement. This support program is intended for the construction, renovation or improvement of infrastructure materials in our municipalities. Municipalities can combine with this funding, borrow and borrow, which provides a great deal of financial flexibility. Projects in unincorporated areas are also supported. The Government of Saskatchewan (“Saskatchewan”) and Infrastructure, Municipalities and Intergovernmental Affairs (“Canada”) have entered into an administrative agreement allowing Saskatchewan to obtain funds from the renewed Federal Gas Tax Fund (GTF) for a period of 10 years: 2014-15 to 2023-24. AMO manages the Fund for all municipalities in Ontario, with the exception of the City of Toronto, in accordance with the administrative agreement on the Federal Gas Tax Fund – a multilateral agreement between Canada, Ontario, the City of Toronto and the AMO. Municipal funding agreements govern the AMO`s partnership with each municipality. For more information, visit our agreement page. In the 2016-17 fiscal year, an additional transfer of unused credits from seniority assistance programs was made available through the Federal Gas Tax Fund. The Government of Canada provided US$116 million to New Brunswick municipalities over five years and the province provided $30 million in additional funding. That is why the Confederation introduced the Gas Taxation Fund (GTF) in 2005, a predictable and permanent source of infrastructure assistance for municipalities.

This document provides an overview of the GTF, including the growth of the program since its inception, eligible spending categories and a summary of funding agreements. Feasibility studies and investments in health infrastructure (hospitals, convalescent centres and centres for the elderly) are not eligible. The Federal Gas Tax Fund is a permanent source of federal funding for local infrastructure. The funds are made available to municipalities twice a year in advance and can be strategically invested in 17 project categories to meet local priorities. In exchange for this financing, municipalities can also pool, contract banks and borrow. This infrastructure funding program began in 2005-06 with the signing of the Canada-New-Brunou Agreement on the Transfer of Federal Tax Revenues under the 2005-2015 New Deal for Cities and Communities. In 2011, the federal government announced that the GTF would become a permanent annual investment of $2 billion beyond 2014 across Canada. On May 20, 2014, the administrative agreement on the Federal Gas Tax Fund (2014-2024) between Canada and New Brunswick was signed. Finally, in Budget 2016, the federal government announced that it would provide municipalities, through the GTF, with un committed funds from existing old infrastructure funds in 2016-17 to ensure that funds are allocated in the short term to municipal infrastructure priorities.10 The municipal compliance strategy and the description of the terms of funding agreements. The name of the GTF reflects the fact that the funds it spent were originally from federal gas tax revenues.

Currently, endowments are legislated and the source of revenue is the Consolidated Revenue Fund.