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HomeMy WebLinkAboutFIN-10-038 - Federal Gas Tax Fund Amending AgreementK .R • ~-,Q-,~-~~rv-re~ REPORT TO: Mayor Carl Zehr and Members of Council DATE OF MEETING: March 22, 2010 SUBMITTED BY: Dan Chapman, General Manager of Financial Services and City Treasurer PREPARED BY: Ruth-Anne Goetz, Senior Financial Analyst WARD(S) INVOLVED: All DATE OF REPORT: March 4, 2010 REPORT NO.: FIN-10-038 SUBJECT: FEDERAL GAS TAX FUND AMENDING AGREEMENT RECOMMENDATION: THAT a by-law to authorize the execution of an amendment to the Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities be taken as read a first and second time. BACKGROUND: In November of 2005, the City of Kitchener and the Association of Municipalities of Ontario (AMO) signed the Municipal Funding Agreement for the Transfer of Federal Gas Tax Revenues under the New Deal for Cities and Communities. This agreement provided specific provisions on the utilization of federal gas tax funds to be received by the City. The Agreement specified that funds were to be received up to the end of 2009. REPORT: On September 3, 2008, AMO signed an extension to the original agreement with the Federal Minister of Transport, Infrastructure and Communities, John Baird. The original funding agreement signed in 2005 stated that federal gas tax funds would be received up to March 31, 2010. These funds were required to be spent on eligible projects by March 31, 2012. The amending agreement extends the end of funds date to March 31, 2014, and the expenditure of funds date to December 31, 2016. The remaining amendments to the funding agreement are minor in nature. FINANCIAL IMPLICATIONS: In order for the City to receive it's funding for 2010 and onwards, the attached bylaw is required to be passed by Council. The bylaw and two signed copies of the amending agreement are then to be sent to AMO. ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services & City Treasurer 5-1