Report to/Rapport au :

Council / au Conseil

16 April 2009 / le 16 avril 2009

Submitted by/Soumis par: Marian Simulik, City Treasurer/Trésorière municipale

Contact Person/Personne ressource: Tom Fedec, Manager, Budget and Financial Planning,

Finance/ Gestionnaire, Planification budgétaire et financière, Finances

(613) 580-2424 x, 21316

City wide / À l’échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0019

SUBJECT:	Provincial Gas Tax

OBJET :	La Taxe Provinciale sur L’essence

REPORT RECOMMENDATIONS

That Council:

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 Document 1; and

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

RECOMMANDATIONS DU RAPPORT

Que le Conseil :

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

2. Approuve le règlement municipal qui autorise l’entente décrite dans le document 2.

BACKGROUND

In 2004, the Province of Ontario announced that it would be transferring a portion of the gas tax to municipalities for public transit. The revenue sharing has been phased in starting at one-cent ($0.01) per litre in October 2004, increasing to one and a half cents ($0.015) per litre in October 2005 and two cents ($0.02) per litre in October 2006 where it currently remains. In order to receive this funding, municipal councils are required to authorize the signing of an agreement and by-law.

DISCUSSION

The City is eligible to receive a provincial gas tax allocation of $36,771,551 for the period, October 1, 2008 to September 30, 2009. Payments will be made on a quarterly basis beginning with the first two quarters ($18,385,776) payable as soon as possible after the signed agreement and the authorizing by-law have been received by the Province. The allocation formula established by the Province is based on 70% transit ridership and 30% municipal population. Both ridership and population figures are updated and revised annually to determine the amounts provided to each municipality.

A copy of the Letter of Agreement is provided as Document 1 and the authorizing by-law is attached as Document 2. The agreement requires that all funds received under this program be used in accordance with the guidelines and requirements as set out in Document 3 which is on file with the City Clerk. These have not changed significantly over the years; the main change is the current requirement for Canadian content when purchasing new buses with provincial gas tax funds.

Generally, provincial gas tax funds may be spent on:

· Public transportation capital expenditures that promote increased transit ridership, and are above a municipality’s spending;

· Public transportation operating expenditures that are above a municipality’s baseline spending;

· Capital expenditures that provide improvements to transit security and passenger safety and are above a municipality’s baseline spending; and

· Major refurbishment on any fully accessible, or to be made fully accessible, public transportation vehicle.

CONSULTATION

This report is administrative in nature and therefore no public consultation is required.

LEGAL/RISK MANAGEMENT IMPLICATIONS:

There is no Legal/Risk Management impediment to the approval of this Report's recommendations.

FINANCIAL IMPLICATIONS

The 2009 portion of the provincial gas tax funds have been incorporated in the 2009 capital and operating budgets.

SUPPORTING DOCUMENTATION

Document 1 - Letter of Agreement

Document 2 – Authorizing By-law

Document 3 – 2008/2009 Guidelines and Requirements (on file with the City Clerk)ACS2009-CMR-FIN-0019 - Gas Tax Document 3.pdf

DISPOSITION

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

DOCUMENT 2

BY-LAW 2009-

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 dated April 3, 2009 between the Province of Ontario represented by the Minister of Transportation for the Province of Ontario and the City of Ottawa related to funding provided by the Province of Ontario to the City under the Dedicated Gas Tax Funds for Public Transportation Program in accordance with the 2008/2009 Guidelines and Requirements issued by the Province of Ontario in April, 2009.

ENACTED AND PASSED this 22^nd day of April, 2009.

CITY CLERK MAYOR