2. Provincial Gas Tax

La Taxe Provinciale sur L’essence

committee 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 comité

Que le Conseil:

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 dans le document 1; et

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

Documentation

1. City Treasurer’s report dated 5 July 2010 (ACS2010-CMR-FIN-0022)

Report to/Rapport au :

Transit Committee

Comité du transport en commun

and Council / et au Conseil

5 July 2010 / le 5 juillet 2010

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

Contact Person/Personne ressource : Mona Monkman, Deputy City Treasurer – Corporate Finance/ Trésorière municipal adjointe – Finances municipales

Finance Department/ Service des finances

613-580-2424 ext. 41723, Mona.Monkman@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2010-CMR-FIN-0022

SUBJECT:	Provincial Gas Tax

OBJET :	La Taxe Provinciale sur L’essence

REPORT RECOMMENDATIONS

That the Transit Committee recommend 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 Document 1; and

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

RECOMMANDATIONS DU RAPPORT

Que le Comité de transport en commun recommande au 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; et

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 $35,240,382 for the period, October 1, 2009 to September 30, 2010. Payments will be made on a quarterly basis beginning with the first payment of $26,430,287 payable on receipt of the signed agreement and the authorizing by-law. 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.

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 for the replacement of any transportation vehicles, and 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 2010 portion of the provincial gas tax funds have been incorporated in the 2010 capital and operating budgets.

RURAL IMPLICATIONS

There are no rural implications associated with this report.

SUPPORTING DOCUMENTATION

Document 1 - Letter of Agreement

Document 2 – Authorizing By-law

Document 3 – 2009/2010 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 2

BY-LAW 2010-

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 June 16, 2010 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 2009/2010 Guidelines and Requirements issued by the Province of Ontario in June, 2010.

ENACTED AND PASSED this day of July, 2010.

CITY CLERK MAYOR

BY-LAW NO. 2010 -

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Enacted by City Council at its meeting of

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LEGAL SERVICES

AMP:mm G04-01-GAS

COUNCIL AUTHORITY

City Council –

Treasurer’s Report