Federal Gas Tax Fund
The federal Gas Tax Fund (GTF) was confirmed as part of the federal Budget 2014, and will run from 2014 to 2024. As part of the New Building Canada Plan, the renewed federal GTF provides predictable, long-term, stable funding for Canadian municipalities to help them build and revitalize their local public infrastructure while creating jobs and long term prosperity. Under the GTF, Alberta will receive $219.1 million in 2016-17, and $1.08 billion from 2014-15 to 2018-19.
GTF funding is provided to provinces and territories which in turn flow this funding to municipalities. Municipalities can pool, bank and borrow against this funding, providing significant financial flexibility.
Under the program municipalities determine projects and activities to be funded by the GTF based on local priorities, within the general qualification criteria set out in the administrative guidelines. The funding provided under this program is in addition to other provincial grant funding, such as the Municipal Sustainability Initiative, and non-grant funding of municipal infrastructure. It is intended to cover capital costs only and may not be used for maintenance costs, operating costs, debt reduction, or replacement of existing municipal infrastructure expenditures.
An update on Alberta's approach to Asset Management is available on the Materials and Resources page.
Key changes to the GTF for 2016 include:
- April 1, 2016, Municipal Affairs took over full responsibility of GTF program administration, resulting in a more streamlined process. This means municipalities should now contact Municipal Affairs rather than Alberta Transportation regional staff for questions on project eligibility, application submission, or any other questions related to the GTF and use of the Municipal Grants Management Application (MGMA).
- All GTF project applications continue to be submitted through MGMA.
- GTF allocations have been recalculated to reflect the 2016 program budget and Municipal Affairs 2015 Population List.