EDMONTON, Alberta, May 14– Canada and Alberta signed an agreement today on the transfer of $477 million in federal gas tax funding to benefit Alberta’s municipalities, large and small. All three levels of government participated in developing this agreement as part of the New Deal for Cities and Communities, thereby building new relationships and transforming their approach to working together. The agreement was signed by Deputy Prime Minister Anne McLellan, Minister of State (Infrastructure and Communities) John Godfrey, Alberta Minister of Infrastructure and Transportation Dr. Lyle Oberg, Alberta Minister of International and Intergovernmental Relations Ed Stelmach and Alberta Minister of Municipal Affairs Rob Renner. The signing was witnessed by Alberta Urban Municipalities Association President Bob Hawkesworth, Alberta Association of Municipal Districts and Counties President Donald Johnson, Métis Settlements General Council President Alden Armstrong, Edmonton Mayor Stephen Mandel and Calgary Mayor Dave Bronconnier. This agreement marks a new relationship among governments in Alberta as part of the New Deal for Cities and Communities. “The signing of this agreement demonstrates our commitment to provide municipalities with stable and predictable funding,” said Deputy Prime Minister McLellan. “For Alberta's municipalities, this means $477 million in new funding over five years. Through this agreement, we are working to ensure our communities are sustainable, vibrant places.” “The New Deal is transforming the way we do business with all of our cities and communities across the country. This agreement was made possible because everyone here today – the Governments of Canada and Alberta, municipalities, and municipal associations – have been fully involved every step of the way,” said Minister Godfrey. “Today’s agreement lays the groundwork for stronger cities and communities in Alberta by returning a portion of the federal gas tax dollars to local municipalities,” said Dr. Oberg. “This funding will help build needed municipal infrastructure and I look forward to continuing to find long-term, stable funding solutions for municipalities.” “I am pleased the Government of Canada recognizes the importance of stable, long term funding to help municipalities deliver needed services to residents,” said Minister Rob Renner. “Today’s announcement is a welcome complement to the almost $1 billion a year Alberta is providing municipalities to maintain and build the infrastructure that makes communities good places to live, work, and visit.” Through today’s agreement, the Governments of Canada and Alberta are advancing a key commitment to the province’s cities and communities. Gas tax funds will support environmentally sustainable municipal infrastructure to help ensure cleaner air, cleaner water and reduced greenhouse gas emissions. Eligible project categories include public transit, water and wastewater management, solid waste, community energy systems and, in communities under 500,000, active transportation infrastructure (like bike lanes), local roads, bridges and tunnels that enhance sustainability outcomes. Funding can also be used to help municipalities build the capacity to plan more sustainable communities. The Government of Canada’s Budget 2005 commits $5 billion for municipalities across Canada over five years in gas tax funds, ramping up to $2 billion in year five and indefinitely thereafter. Gas tax dollars are on top of the Government of Canada’s existing infrastructure programs, which have committed over $12 billion over the last decade to infrastructure projects in communities across the country. The Government committed, in Budget 2005, to renewing the Canada Strategic Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Border Infrastructure Fund. Budget 2005 builds on the achievements of Budget 2004 – which gave municipalities the Goods and Services Tax (GST) rebate worth $7 billion over 10 years, and accelerated the $1-billion Municipal Rural Infrastructure Fund. The Government of Alberta's Budget 2005 provides municipalities with $600 million in each of the next five years through the Alberta Municipal Infrastructure Program. Alberta municipalities will also receive $400 million more each year through other, existing provincial infrastructure grant programs. That means municipalities will receive a total of $1 billion a year from the province for municipal infrastructure priorities. This is the second gas tax deal to be signed, following an agreement with British Columbia and the Union of British Columbia Municipalities on April 15. In the coming weeks, the Government of Canada will be signing a series of agreements from coast to coast to coast. -30- For more information: Mark Rus Office of Minister Godfrey (613) 850-5795 www.infrastructure.gc.ca Bart Johnson Director of Communications Alberta Infrastructure & Transportation (780) 415-1841 Contacts: BACKGROUNDER The New Deal for Cities and Communities in Alberta The Governments of Canada and Alberta have been working together with Alberta's municipalities to develop a consensus around how to use federal gas tax funds in a way that responds to the needs of Alberta's cities and communities. This has resulted in the development of a new relationship between all parties that has been cooperative, respectful, trusting and progressive. The Governments of Canada and Alberta recognize that municipalities need to be full partners in addressing their infrastructure challenges. This agreement provides for decisions to be made at the local level within certain parameters that have been agreed to, such as environment sustainability. Predictable, stable funding to municipalities – which is a key element of this agreement – is very important for communities so they can engage in long-term planning. In the last Speech from the Throne, Prime Minister Paul Martin announced $5 billion in new, stable funding to be provided over five years through sharing of federal gas tax revenue with municipalities. Starting in 2005, Alberta’s overall share of the $5 billion over five years from federal gas tax revenues, for distribution to municipalities, will be $476.9 million. When fully ramped up in year 5, the province can expect to receive $190.8 million, continuing at that rate each year thereafter. This is in addition to existing infrastructure programs. This agreement will see the federal and provincial governments working together with communities to ensure they have the capacity to plan for a more sustainable future. The agreement is transformative because, unlike other federal programs, funds are being flowed to the cities and communities up front, on a regular basis, to enhance their ability to pool, bank and borrow so that their environmentally sustainable municipal infrastructure projects are pursued within the context of long-term plans. Gas tax funds will support environmentally sustainable municipal infrastructure to help ensure cleaner air, cleaner water and reduced greenhouse gas emissions. Eligible project categories include public transit, water and wastewater management, solid waste, community energy systems and capacity building. Calgary and Edmonton will invest their funding in any one or two major categories listed above. There will be some flexibility to meet the special needs of communities under 500,000, including active transportation infrastructure (like bike lanes), local roads, bridges and tunnels that enhance sustainability outcomes. Gas tax investments will not require matching funding by the province or the municipality. Funding will flow from the federal government to the provincial government, and the province will forward the funding to municipalities. Funding will be distributed based on estimated 2006 populations. In 2007, the funding provided to all municipalities will be adjusted according to 2006 census numbers, which become available in 2007. Funding will be distributed based on population (99%), with the remaining funds distributed to ensure very small municipalities receive a base amount. This formula is based on the method used to distribute the new $3-billion Alberta Municipal Infrastructure Program. Negotiations with provinces and territories on the New Deal for Cities and Communities build on year-long work with provinces, territories, the Federation of Canadian Municipalities, mayors and stakeholders. This is the second gas tax deal to be signed, following an agreement with British Columbia and the Union of British Columbia Municipalities on April 15. A series of agreements with other provinces and territories will come over the next weeks and months. In addition to the gas tax, the Government of Canada’s investments in cities and communities include Budget 2004’s GST rebate worth $7 billion over a 10-year period, and the $1-billion Municipal Rural Infrastructure Fund supporting smaller scale municipal infrastructure projects. MRIF agreements have been announced in eight provinces and territories already, and negotiations are underway with the remaining jurisdictions. The $4-billion Canada Strategic Infrastructure Fund is directed to projects of major federal and regional significance in areas that are vital to sustaining economic growth and enhancing the quality of life of Canadians, with a total of $200 million committed in Alberta to-date on Calgary and Edmonton Ring Roads and the Trans Canada Highway through Banff National Park. Through the Infrastructure Canada-Alberta Program (ICAP), federal, provincial and municipal governments are together investing over $508 million in municipal infrastructure. March 31, 2006 is the completion deadline for projects funded under ICAP. The Government of Alberta already provides substantial support to municipalities, including $3-billion over five years through the Alberta Municipal Infrastructure Program and $400 million more each year through other infrastructure grants. Other important achievements under the New Deal The Prime Minister created the Infrastructure and Communities Portfolio, demonstrating the priority the Government of Canada places on the cities and communities agenda. Minister of State (Infrastructure and Communities) John Godfrey has met with hundreds of mayors, officials and stakeholders from communities large and small – in all 10 provinces and the 3 territories. He joined Finance Minister Ralph Goodale in formal pre-budget consultations with municipal leaders from across the country. As part of the New Deal’s pledge to build stronger partnerships, the Government committed to make this a permanent feature of the federal budget development process. The Prime Minister’s External Advisory Committee on Cities and Communities was formed with a mandate to define a 30-year vision for cities and communities in Canada. Jack Hayden, former President of the Alberta Association of Municipalities and Districts, and Colin Jackson, President and CEO of the EPCOR CENTRE, are Alberta’s representatives.
