HomeMy WebLinkAboutCS 54-04PICKERING
REPORT TO
COUNCIL
Report Number: CS 54-04
Date: November 8, 2004
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Provincial Gas Tax Revenue Program
Recommendation:
1. It is recommended that Report CS 54-04 of the Director, Corporate Services &
Treasurer be received and that;
Council endorse the City's participation in the Provincial Dedicated Gas Tax Funds
for Public Transportation Program; and,
the appropriate officials of the City of Pickering be authorized to take the necessary
action to give effect hereto.
Executive Summary: On October 22, 2004, the Provincial Government announced
it was introducing a new program (gas tax revenues) to provide funding for public
transit. Pickering Council's approval is required in order for the City to receive the gas
tax revenues.
Financial Implications: As of October 1, the Ontario Government will provide one
cent a litre of provincial gas tax funding for public transit. This will increase to 1.5 cents
in 2005 and two cents in 2006. Ajax and Pickering's share for the 12 month period
(October 1, 2004 to September 30, 2005) is estimated to be $1,1 76,793. The first
payment of $294,198 is for the period October 1 to December 31,2004.
Background: The Provincial Government is delivering on its commitment to invest
provincial gas tax revenues in public transit. Over the next three years, it is estimated
that the Province will invest more than $680 million. The gas tax is new money for
transit. This new funding in on top of the current Provincial funding provided through
the Ontario Transit Vehicle Program or OTVP which is used to provide one-third funding
for capital expenditures (buses).
Report CS 54-04 Date: November 8, 2004
Subject: Provincial Gas Tax Revenue Program
Page 2
Ajax and Pickering's share of the of the gas funds for the first year (October 1, 2004 to
September 30, 2005) is estimated to be $1,176,793. The Province applied a funding
formula based on transit ridership (70%) and municipal population (30%) to arrive at the
funding amount. The Ministry used population figures of 80,755 for Ajax and 94,032 for
Pickering. (The population figures were provided by the Ministry of Finance.)
Each municipality is required to have their respective Council's approve their
participation in the Provincial Gas Tax revenue program. The Ministry has designated
Town of Ajax as the host municipality and Ajax is signing the legal agreement as
required by the Province.
First Provincial Payment (October to December 2004) - $294,198
The first quarter payment (Ajax and Pickering) is estimated to be $294,198 of which
Pickering's share is approximately $154,452. These funds represent the time period
October 1 to December 31, 2004 and are to be used by the municipalities for public
transportation/transit. The City intend's to use these funds to offset ongoing APTA
expenditures (current and capital.) As Members of Council are aware, Pickering funds
APTA operating costs through its tax levy and with the Durham Region Transit Reserve
funds.
2005 Gas Tax Funds
For 2005, the Province requires municipalities to use gas tax funds for capital and
operating expenditures that support increased ridership and follow the GTA
transportation strategy. City staff will be working with APTA's management to develop
the 2005 Budget that maximize's the benefit of the Provincial gas tax revenues.
Attachments:
1. Letter from Ministry of Transportation dated October 22, 2004 re Gas Tax Funds
Report CS 54-04
Subject: Provincial Gas Tax Revenue Program
Date:
November 8, 2004
Page 3
Prepared By:
Approved / Endorsed By:
Stan Karwowski
Manager, Finance & Taxation
-'~dhs A Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachment
Copy: Chief Administrative Officer
R.ecom. men .d?~f~ c~nsideration of
Ministry of
Transportation
Office of the Minister
Ferguson Block, 3rd Floor
77 Wellesley St. West
Toronto, Ontario
M7A 1Z8
(416) 327-9200
www.rnto.gOV~on.ca
October 22, 2004
His Worship Steve Parish
Mayor
Town of Ajax
65 Harwood Avenue South
Ajax, ON
LlS 2H9
ATTACHMENT # ,....LTO i~EPOP, T
Minlst~re des
Bureau du ministre
~difice Ferguson, 3e ~tage
~, rue Wellesley ouest
Toronto (Ontario)
(416) 327-9200 ~ RECEIVED:
~ FW':_~',, COPY- CIRCULATE
~ ~: - ;: Vi.~L. ~ HUMAN RES,
C :~(:' .' FMERG LEGAL
~U~ r'~C
Cl.-J ST. CARE
Dear Mayor Parish:
In the spring budget, our government made a commitment to dedicate two-cents per
litre of the provincial gas tax to municipalities for public transit, starting with one-cent per
litre this October.
It is my great pleasure to inform you that we are delivering on this commitment.
Between October 2004 and October 2005 we will provide $156 million of gas tax
funding to municipalities across the province for public transit. This is in addition to the
province's existing-transit program funding.
Ajax will be eligible to receive an allocation of $1,176,793 for the period October 1,2004
to September 30, 2005. Payments will be made on a quarterly basis. The first quarterly.
payment will be sent to your municipality as soon as we receive your signed agreement.
Enclosed you will find a Letter of Agreement and Program Guidelines.
This is the first time the Government of Ontario has allocated a portion of the gas tax to
support transit in this province, and it is a monumental step towards expanding and
increasing transit ridership, which will lead to more convenient, reliable, and improved
levels of transit service across Ontario.
To determine the best method of allocation, we engaged municipalities., transit
agencies, induStry groups, environmental stakeholders and organized labour through a
consultation process.
The results of those consultations provided valuable input into the eligibility criteria,
mechanisms for reporting to the province on outcomes, and an allocation formula that
combines ridership and population. These two factors have helped us balance the
needs of mature, existing transit systems, with the needs of rapidly growing and smaller
municipalities.
.../2
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Please return the signed Letter of Agreement by Monday, November 22, 2004. Please
include also a record of a supporting Council by-law. This will help ensure that your
municipality receives the first quarterly payment before the close of the 2004 municipal
fiscal year, and that the funds can start improving transit now.
This agreement will also provide the basis for the subsequent quarterly payments in
January 2005, April 2005, and July 2005.
The Ajax/Pickering currently provides a public transit service that includes service to,
and receives financial contributions from Town of Ajax and City of Pickering.
Your municipality is involved with other municipalities in jointly providing this public
transit service. We therefore request that you provide the Ministry with clarification as to
which municipality should receive the payment. Details on payment are provided in the
attached guidelines.
Sincerely,
Harinder S. Takhar
Minister of Transportation
cc~ His Worship David Ryan, Mayor, City of Pickering