Since 2004, Ontario’s government has distributed a share of provincial gas tax revenues – two cents per litre – to municipalities annually to offset transit costs. This year, 99 municipalities will receive funding, up from 95 last year.
According to the Province’s media release, $334.5 million is being distributed this year – an increase of $1.6 million over last year – “to expand and improve public transit”.
Despite the increased gas tax revenue, Huntsville will receive $114,976 this year, down from $146,000 last year but still up from the $106,000 received the previous year. Bracebridge, which launched its transit service this year, will receive $130,541.
The gas tax program funding formula is based on a ratio of 70% ridership and 30% population to balance the needs of transit providers in large and small municipalities, according to Bob Nichols, Senior Media Liaison Officer for the Ontario Ministry of Transportation (MTO).
“This funding formula was developed following consultations with large and small municipalities who told us they wanted a formula that strikes a fair balance between the needs of large established systems and those of smaller municipalities, while accommodating the special needs of high growth areas,” said Nichols via email.
He noted that “communities are also eligible to receive funding through the Connecting Links program – which commits $20 million in 2016-17, up from $15 million announced in the 2015 provincial budget – as well as through the province’s Ontario Community Infrastructure Fund (OCIF) and Small Communities Fund (SCF).” All three programs are generally used for infrastructure projects.
Julia McKenzie, Treasurer for the Town of Huntsville said that the Town is not, in fact, eligible for the Connecting Links program “as it is to ‘help municipalities pay the construction and repair costs for municipal roads that connect communities to provincial highways and border crossings.'”
The Town of Huntsville does receive funding through the OCIF formula-based funding stream, which is applied to road works. McKenzie said the town has been twice unsuccessful in the OCIF application-based funding stream but has a third application pending. All three applications were for the Stephenson Road 1 bridge.
The Town’s 2017 budget for transit is $257,715. With the $114,976 in gas tax revenue, the Town will pay the remaining $81,234 in operating costs from its reserves.
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