Report to/Rapport au :
Council / Conseil
16 January 2008 / le 16 janvier 2008
Submitted by/Soumis par : Marian Simulik,
City Treasurer / Trésorière municipale
Contact
Person/Personne ressource : Marian Simulik, City Treasurer
Financial
Services/Services financiers
(613)
580-2424 x 14159, Marian.Simulik@ottawa.ca
SUBJECT:
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OBJET :
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La taxe provinciale sur l’essence |
REPORT RECOMMENDATIONS
That 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 Document 1; and
2. 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
BACKGROUND
In
2004, the Province of Ontario announced that it would be transferring a portion
of the gas tax to municipalities for public transit. This revenue sharing was to be phased in with a one-cent ($0.01)
per litre share flowing to municipalities commencing October 1, 2004. In October 2005, this was increased to one
and one half cents ($0.015) per litre and since October 2006, it has been two
cents ($0.02) per litre. In order to
receive this funding, municipal councils are required to authorize the signing
of an agreement and by-law every year.
For
the period October 1, 2007 to September 30, 2008, the City of Ottawa's share of
the gas tax has been announced to be $35,948,701. The City will receive quarterly payments beginning with the first
two quarters ($17,974,351) payable as soon as possible after the signed
agreement and the authorizing by-law have been received by the Province. The Letter of Agreement is set out in Document 1 and the authorizing by-law is
provided 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 guidelines
may change from year to year, although they usually do not change
significantly.
Generally,
Provincial Gas Tax funds may be spent on:
· public transportation capital expenditures that promote increased transit ridership, and are above a municipality's baseline 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 bus refurbishment on any fully accessible, or to be made fully accessible public transportation vehicle.
CONSULTATION
This report is administrative in nature and no public consultation has been undertaken.
FINANCIAL IMPLICATIONS
The 2007 and 2008 portion of funds have been incorporated in the 2007 and 2008 capital and operating budgets.
SUPPORTING DOCUMENTATION
Document
1: Letter of Agreement
Document 2: Authorizing By-law
Document 3: 2007/2008 Guidelines and Requirements (on file with the City Clerk)
DISPOSITION
Signed agreements and authorizing by-law will be forwarded to the Ministry of Transportation.
DOCUMENT 1
Document 2
BY-LAW 2008-
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 2007/2008 Guidelines and Requirements issued by the Province of Ontario in December, 2007.
ENACTED AND PASSED this 23rd day of January, 2008.
CITY CLERK MAYOR