Wellington County councillors had the rare opportunity to speak out about federal gas tax funding and what projects the money has been used for when local federal and provincial politicians attended the county council session on April 24.
Wellington-Halton Hills MP Michael Chong and Perth-Wellington MP Gary Schellenberger and their provincial counterparts Wellington-Halton Hills MPP Ted Arnott and Perth-Wellington MPP Randy Pettapiece met with council and heard mayors from the county’s seven lower-tier municipalities and county warden Chris White talk about what the annual funding that has allowed their respective municipalities to do in terms of infrastructure work.
Warden White spoke on behalf of the county and Guelph-Eramosa where he serves as mayor.
White said Wellington County has received slightly more than $17 million in gas tax funding since 2005. Of that amount almost $15 million has been spent on local infrastructure, solid waste services, buildings and community energy systems.
In the same time period Guelph-Eramosa has received about $2.3 million and spent $1.8 million to upgrade and reconstruct about 15 kilometers of roads. Portions of the gas fund are also earmarked for 2014 projects including an upgrade of Speedvale Avenue from the Guelph boundary to Wellington Road 32 in the township.
Municipalities received gas tax money from the federal government based on individual populations.
The federal government has announced gas tax funding will be indexed at two per cent per year with money flowing from the increase coming in 2016. The new allocations will be based on 2011 census data. The provincial government does provide some gas tax funding which goes to transit systems in large urban centres such as Toronto. The government does not provide gas tax funding across-the-board to all Ontario municipalities.
“We recognize how important this is for us,” the warden said of federal gas tax money. “From a provincial level we would like to see more sustainable funding.”
County councillors agreed the annual funding has allowed local municipalities to better plan for long-term municipal infrastructure projects.
“The importance of the gas tax is its sustainability and predictability,” said Centre Wellington Mayor Joanne Ross-Zuj. “We can do much better planning because we can count on that money coming into our coffers.”
Since 2005 Centre Wellington had received about $5.169 million in gas tax funding. The township is expecting a 3.27% reduction in its 2014 funding expected to be almost $773,000. Of the total amount, the township has spent $5.133 million on road and bridge work on township roads.
County councillor and Mapleton mayor Bruce Whale said his municipality has received $1,965,437 since 2005. The township has spent $1.96 million on a variety of road and bridge projects.
“The funds are to be used specifically for environmentally-sustainable municipal infrastructure projects,” Whale told county council in a written report.
Annual gas tax financial reports are required to be audited and submitted to AMO (Association of Municipalities of Ontario) which oversees gas tax disbursement. Municipal asset management plan information was added as a new reporting requirement for 2013 annual report. Individual asset management plans are an indication given by municipalities of infrastructure work needed on specific municipally-owned property, including anticipated costs. Puslinch, the smallest municipality in the county, has received slightly more than $1.3 million in gas tax funding since its inception, said county councillor and Puslinch mayor Dennis Lever. The money has been used for bridge and road work. The municipality plans to spend $470,000 this year.
“This regular and reliable funding source is key to our moving ahead with much needed infrastructure investment,” Lever said.
Erin mayor Lou Maieron said his municipality has received almost $2.6 million in gas tax funding.
“The town of Erin has used the federal gas tax funding for nine major roads and bridge projects, including road reconstruction and culvert replacement in the 2014 draft budget,” Maieron told county council. “The town effectively added federal gas tax funding to infrastructure stimulus grants and investing Ontario grants to complete $5.089 million in capital infrastructure projects.”
He noted the grant received this year was reduced from last year’s grant by $30,115 or about 8%.
Wellington North Mayor Ray Tout said the municipality has received $2.29 million in funding which has allowed it to use slightly more than $2 million on a variety or road and bridge projects.
“This regular and reliable funding source has had a positive impact within our community,” he said.
The Town of Minto, said Mayor George Bridge, has received $1.948 million in gas tax funding.
“To date the town has used $1,609,951 of the gas tax funding, including 2014 capital budget amounts,” Bridge said. “These funds have been used for the reconstruction and upgrade of 11 kilometres of roadway, and repair of five bridges and culverts. This work assists with obtaining the objectives outlined in the integrated sustainable community plan which was adopted in March of 2011. The reduced green house gas emissions result from smoother road surfaces and safer bridge crossings.
“The predictable funding provided by the federal gas tax fund is a critical part of the Town of Minto’s capital funding,” Bridge said.
County treasurer Ken DeHart said the new funding arrangement could see decreases in funding based on an anticipated population decline.
“In 2013, the federal government announced that the renewed gas tax allocations will be indexed at 2 per cent per year, however the benefits of this indexing will not reach municipal governments until 2016,” DeHart said in an email to the Advertiser.
“Negotiations to finalize the new permanent gas tax agreement for the period 2014 to 2018 continue. As the new allocations will be based on 2011 census data, Ontario has not grown as fast as other provinces and the county’s population change is below the provincial average of 5.6%, Staff have anticipated that the county will see a reduction in funding of approximately $100,000 for 2014 and this has been reflected in the 2014 county budget.
“The development of the roads asset management plan during 2013 emphasizes the importance of long term sustainable infrastructure funding. Over the past seven years the county has received $17,080,471 in gas tax funding and invested $13,825,247 in local infrastructure, solid waste services, capacity building and community energy systems. An additional $16 million investment in roads, bridges and culverts is forecasted over the next five years.”
Chong said since the gas tax was introduced in 2005, the federal government has doubled the amount it has allocated to municipalities. He said the government plans to invest $53 billion in provincial and municipal infrastructure in the next 10 years.
“Gas tax is a predictable benefit to municipalities,” Schellenberger added. “We will keep working to make sure rural Ontario is not forgotten.”
Arnott and Pettapiece agreed provincial gas tax funding should be extended to include all provincial municipalities, an issue that could be raised if the Conservatives win the next election.
“We think all communities should have a piece of the gas tax,” Pettapiece said.
Arnott said the provincial gas tax is derived from the 14.7 cents the government collects from gas at the pumps.
“The provincial government only shares that money with municipalities that have transit systems,” Arnott said. “As we all know our roads and bridges are our transit. There is a serious disconnect with the province.”
