Every Ontario community to benefit from federal Gas Tax Fund transfer
First of two installments delivered to support local infrastructure priorities
August 4, 2017, Ottawa, Ontario – Infrastructure Canada
Modern and up-to-date community infrastructure helps connect people to jobs and provides access to better community services, attracts new businesses and creates economic growth.
In July, the Government of Canada delivered the first of two annual $391 million federal Gas Tax Fund (GTF) installments to Ontario. In total, Ontario’s municipal governments will be provided with over $782.1 million this year through the fund. The funding, which flows through the Association of Municipalities of Ontario with the exception of the Toronto allocation that flows directly to the City of Toronto, is now available to support community infrastructure projects.
GTF funding supports hundreds of local infrastructure projects across Ontario each year. A portion of the annual provincial allocation is also used by the province to maintain rural roads in northern Ontario on behalf of local roads boards.
Some examples of the projects being funded this year include transit fleet replacement and state of good repair in Toronto, upgrades to recreational facilities in Brampton, the purchase of transit buses in Barrie, and major road reconstruction in Sault Ste. Marie. Other communities will use the funding to improve and repair their local roads and bridges, among other projects. The Province of Ontario will use a portion of the annual allocation to maintain rural access roads in unincorporated areas of northern Ontario. The range of planned projects helps demonstrate the flexibility that the GTF provides.
The two Gas Tax Fund installments for this year are in addition to funds flowing to Ontario under the Investing in Canada Plan.
“Through the federal Gas Tax Fund, communities across Ontario and the rest of Canada can direct federal funding to the infrastructure projects that address the most pressing needs of local residents and businesses, from improving drinking water to building new recreational facilities. The Government of Canada is proud to deliver this predictable, long-term funding to help ensure access to good middle class jobs, increased mobility, greater economic opportunities, sustainable communities and a high quality of life for all Canadians.”
The Honourable Amarjeet Sohi,
Minister of Infrastructure and Communities
“The Gas Tax Fund benefits Ontario municipalities by allowing local communities to decide where and how to invest resources for their most pressing needs. Constructing and improving infrastructure across the province will create jobs, enhance municipal services, and help commuters get to and from work faster – allowing them to spend more time with their families."
The Honourable Bill Mauro,
Ontario Minister of Municipal Affairs
“The federal Gas Tax Fund is a stable source of funding that helps municipal governments maintain, rehabilitate and build the vital local infrastructure that we all rely on, including everything from roads and bridges to wastewater systems to community recreation centres. Investing in local infrastructure plays a major role in growing Canada’s economy, protecting the environment and building strong cities and communities. AMO will administer almost $620 million from the Fund in 2017 alone.”
President of the Association of Municipalities of Ontario (AMO)
“The City of Toronto welcomes this year’s contribution of $160 million from the federal Gas Tax Fund, which is being directed to the TTC to make a much needed investment in our city's transit system. The funding will be used for TTC fleet replacement and state of good repair so people of Toronto can get around our city easier and faster. The City welcomes continued significant investment from the Government of Canada in our transit and transportation system.”
His Worship John Tory,
Mayor of Toronto
Since the program was first introduced in 2005, over $7.9 billion has been provided to Ontario communities through the federal Gas Tax Fund.
The federal Gas Tax Fund makes over $2 billion available each year, and through it provides each community across Canada with a permanent, predictable and indexed source of long-term funding. The funding is made available in two annual installments, in July and November.
The federal Gas Tax Fund offers significant flexibility. Local communities can make strategic investments across 18 different project categories, including roads and bridges, public transit, drinking water and wastewater infrastructure, and recreational facilities. Communities can use the funds immediately for priority projects, bank the funds for later use, pool the dollars with other communities for shared infrastructure projects or use it to finance major infrastructure expenditures.
The Government of Canada will invest more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.
Office of the Minister of Infrastructure and Communities
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