Federal Funding Rules Limiting Gas Tax Funds Stacking

Year
2017
Number
B18
Sponsor(s)
Telkwa

Whereas most large local government water and wastewater infrastructure projects require grant funding support from the provincial and federal governments; And whereas federal funding rules restrict stacking gas tax funds as part of municipal grant funding contributions; And whereas the preference of some communities may be to utilize accumulated federal gas tax funds as part of their matching grant contribution to limit the burden on their property tax payers: Therefore be it resolved that UBCM call on the federal government to allow communities to use federal gas tax funds as part of their matching contribution to grant funding for critical infrastructure projects involving water and wastewater.

Federal Response

Ministry of Infrastructure and Communities The total federal funding for projects under the GTF could be up to 100 percent of total eligible expenditures per project. However, GTF funds remain federal funds even though they are transferred to municipalities, and consequently cannot be counted as municipal funding. Projects receiving funding under another federal program must respect stacking limits for that program, but if the project does not use the maximum federal contribution percentage, a portion of a municipalitys GTF funding can be applied to reach the stacking limit.

Other Response

FCM At the latest board meeting in March 2018, the FCM Board of Directors considered the resolution and categorized it as Category D In accordance with existing FCM policy. This category contains resolutions that have been considered by FCM in the previous three years or that are in accordance with FCMs standing policy and advocacy priorities. In this case, the resolution was received by the Board of Directors for information only.

Convention Decision
Endorsed