Introducing the Renewed Federal Gas Tax Agreement

The renewed Federal Gas Tax Agreement is the result of several years of advocacy and negotiations by the Union of BC Municipalities along with the Federation of Canadian Municipalities. Now that the program has been announced, it is time to take stock of the gains for local government in the new agreement.

Feedback from BC local governments during the federal government's consultations on the Long-term Infrastructure Plan in 2012 was united on two points with regard to the Gas Tax Fund: the need for broader scope among the types of projects the funds may be used for; and the addition of an index to help the value of the program keep place with inflation. UBCM and FCM advocated these positions throughout the consultation process. The 2013 federal budget that announced the funding set aside for the renewed Gas Tax program also included the announcement of broader categories and 2% annual index that will be delivered in increments of $100 million.

Over the past year, UBCM staff worked with federal and provincial colleagues on the design of the new program based on a negotiating mandate informed by member consultations and approved by UBCM's Executive.

“Leading into our negotiations with Canada and BC, we reached out to the membership to gather feedback on the first nine years of the program,” said President Rhona Martin.“What we heard is that there was a desire to see the program streamlined, and more room provided for local decision making.You can see those elements in the reduction of the number of pooled funding programs, the increased portion offunding delivered through allocations, and the strengthened role for Metro Vancouver with regard to transit funding. I am very appreciative of the constructive approach taken by Canada and BC through the negotiations. Together, I think we have made a good program even better.”

For a brief introduction to the renewed agreement, please view or download UBCM's questions and answers resource.

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