WHEREAS municipalities are unable to meet the capital costs of foundational infrastructure within their communities; AND WHEREAS the Prime Minister, Paul Martin, has committed to assisting municipalities with the funding of infrastructure through revenue sharing of the Federal Fuel Tax; AND WHEREAS this new federal infrastructure funding, based on the Fuel Tax, needs to be administered equitably, must have long-term certainty, and must be in addition to existing funding programs: THEREFORE BE IT RESOLVED that the Union of British Columbia Municipalities prepare a position, based on the attached questions, on the proposed Fuel Tax Infrastructure Funding to define the collection, application, terms, and conditions of this funding; AND BE IT FURTHER RESOLVED that the infrastructure funding to local governments not compromise existing or future funding for provincial highways. Questions to be attached: 1. How much Federal Fuel Tax is collected in a given year in Canada? In the Province of British Columbia? 2. How would the funding to municipalities be administered? Directly to municipalities or through the Provinces? 3. How should the funding be distributed to municipalities? Based on per capita? Kilometres of road? Total assessment of municipality? Amount of tax collected within the boundaries of the host municipality? 4. Should the funding be designated for road infrastructure only? 5. Will the new funding compromise the existing CanadaProvincial Infrastructure Funding? 6. What will the time commitment of this revenue sharing be? As budgeted annually with no certainty or a long term commitment? 7. Will funding be applied only to projects as a percentage of the total cost of the specific project or can the funding be used to pay for 100 of a capital project? Can funding be used for payments on a long term debenture for a capital project? 8. Will capital projects supported by this federal funding and requiring debt servicing affect the limits that are set out by the Local Government Act regarding debt capacity of a municipality? 9. Will funding be indexed? 10. Will there be consideration for Canadas rural municipalities with regard to funding allotments?
Ministry of Finance With respect to resolution B12, the Government of Canada has made a new deal for Canadas municipalities one of its highest priorities. In that regard, the government increased the rebate of the GST and the federal portion of the HST for municipalities from 57.14 per cent to 100 per cent, resulting in an increased source of reliable, predictable and long-term funding. Over the next 10 years alone, it is estimated that about 7 billion will be delivered to municipalities as a result of this measure. We are also committed to sharing federal gas tax revenues to help support sustainable infrastructure projects in municipalities such as public transit, clean water, sewer and roads. My colleague, the Honourable John Godfrey, Ministry of State Infrastructure and Communities, is responsible for developing the federal governments vision for the New Deal and I have forwarded him a copy of resolution B12 entitled Federal Fuel Tax.