Report to/Rapport au :

 

Council / au Conseil

 

5 December 2006 / le  5 décembre 2006

 

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer/

Chef des Services généraux

 

Contact Person/Personne ressource : Marian Simulik, Director, Financial Services and City Treasurer/Directrice des services financiers et trésorière municipale

 (613) 580-2424 x 14159, Marian.Simulik@ottawa.ca

 

City Wide

Ref N°: ACS2006-CRS-FIN-0045

 

 

SUBJECT:

CITY OF OTTAWA SHARE OF THE PROVINCIAL GAS TAX

 

 

OBJET :

PART DE LA VILLE D’OTTAWA DE LA TAXE PROVINCIALE SUR L’ESSENCE

 

 

REPORT RECOMMENDATION

 

That City Council:

 

1.                  Authorize the Mayor and City Treasurer to sign an agreement with the Province relating to the City's share of the provincial gas tax in accordance with the terms set out in Appendix A.

2.                  Approve the by-law authorizing the agreement as set out in Appendix B.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Conseil municipal  :

 

1.                  Autorise le maire et la trésorière municipale à ratifier une entente avec le gouvernement provincial concernant la part de la Ville d’Ottawa de la taxe provinciale sur l’essence, conformément aux modalités énoncées à l’Annexe A.

2.                  Approuve le règlement municipal qui autorise l’entente joint en Annexe B.

 


BACKGROUND

 

In 2004, the provincial government announced that it would be transferring a portion of the gas tax to municipalities for public transportation.  This revenue sharing was to be phased in with a one-cent ($0.01) per litre share flowing to municipalities commencing October 1, 2004.  As of October 2005, the Province provided one and one half ($0.015) cents per litre of gas tax funds towards public transportation and this is now being increased to two ($0.02) cents per litre.  In order to receive this funding, municipal councils are required to authorize the signing of an agreement and a by-law every year as the guidelines are amended yearly to reflect feedback from stakeholders.

 

For the period October 1, 2006 to September 30, 2007, the City of Ottawa's share of the gas tax has been announced to be $36,081,536.  The City of Ottawa will receive quarterly payments of $9,020,384 beginning as soon as possible after the signed agreement and authorizing by-law have been received.  The terms of the agreement are set out in Appendix A and the authorizing by-law is provided as Appendix B. 

 

The agreement requires that all funds received under this program be used in accordance with the guidelines and requirements as set out in Appendix C which is on file with the City Clerk.  More specifically, the document outlines that all dedicated gas tax funds received in 2007 and beyond are required to be spent on:

 

 

 

CONSULTATION

 

This report is administrative in nature and no public consultation has been undertaken.

 

 

FINANCIAL IMPLICATIONS

 

The 2006 portion of funds have been incorporated in the 2006 capital and operating budgets.  The 2007 budget will incorporate the balance.

 


 

SUPPORTING DOCUMENTATION

 

Appendix A:  Letter of Agreement

Appendix B:  Authorizing By-law

Appendix C:  2006/2007 Guidelines and Requirements (on file with the City Clerk)

 

 

DISPOSITION

 

Signed agreements and authorizing by-law will be forwarded to the Minister of Transportation.

 


APPENDIX B

 

 

BY-LAW 2006-

 

                        A by-law of the City of Ottawa to authorize the entering into of an agreement with the Province of Ontario through the Minister of Transportation relating to funding provided by the Province of Ontario to the City under the Dedicated Gas Tax Funds for Public Transportation Program.

 

                        WHEREAS the Province has announced a Dedicated Gas Tax Funds for Public Transportation Program to assist municipalities in expanding and renewing their public transit system;

 

                        AND WHEREAS the Province has indicated that as a condition precedent for the participation in this Program, municipalities must enter into an agreement through the Minister of Transportation;

 

                        THEREFORE the Council of the City of Ottawa enacts as follows:

 

1.                     The Mayor and Treasurer are hereby authorized to execute a Letter of Agreement with the Minister of Transportation of the Province of Ontario relating to the Dedicated Gas Tax Funds for Public Transportation Program consistent with the 2006/2007 Guidelines and Requirements issued by the Province of Ontario in October, 2006.

 

 

                        ENACTED AND PASSED this    day of December, 2006.

 

 

 

                                    CITY CLERK                                     MAYOR