Vaughan amends budget after $9.2M in gas tax pumped into city coffers

It’s expected to reduce need to borrow for certain capital projects

Yorkregion.com
May 23, 2019
Dina Al-Shibeeb

Any “funding pressure on property taxation” is expected to ease after Vaughan received an additional $9.2 million in Gas Tax Fund from the federal government, the City told York Region Media.

The city’s 2019 budget -- approved on Feb. 20 -- already included the first batch of about $9.3 million in GTF allocation to funnel to some capital projects.

However, after February, the city was notified that it will be receiving an additional $9.2 million in gas tax allocation.

On May 6, the city amended its budget to incorporate the new gas fund.

“The budget amendments will help reduce funding pressure on property taxation in part by reducing the need to borrow for certain capital projects,” the city said.

In addition to that, as of Dec. 31, there was about $0.5 million excess funds uncommitted in the GTF, which the city wants to use to support “infrastructure deficits.”

Some of the examples cited in the city’s report on the GTF include enhancing the Glen Shields Park Redevelopment -- dubbed as a “top priority” -- and the Garnet A. Williams Community Centre needing some revitalization.

“The parking lots in various community centres and sports facilities have been identified as one recreational infrastructure renewal priority for this Term of Council,” it said. “The GTF top-up will be utilized to advance some parking lot renewal work to 2019 from previous scheduled 2020-2021.”

The federal GTF was introduced in the 2005 federal budget to assist Canadian municipalities to maintain public infrastructure. In 2008, the federal government announced that the GTF would be made permanent to ensure stable, long-term funding to municipalities.

To protect municipalities from floods and storms, and with many municipalities across Canada facing serious infrastructure deficits, the federal government also made a commitment in 2019 that an additional $2.2 billion will be added to the GTF.