Gas tax transfer earmarked for roads

By Vernon Daily Courier staffTuesday, August 1, 2006 http://www.dailycourier.ca/article_415.php
The North Okanagan has raked in nearly $400,000 through the first installment of the federal government’s gas tax transfer payments. Local government was provided with the funding to build environmentally friendly infrastructure projects including road improvements, transit upgrades, water and waste management and cleaner energy systems.“This will not only result in environmental improvements but will make a noticeable contribution to B.C.’s communities by allowing them to invest in the infrastructure priorities that they have identified,” said Lawrence Cannon Minister of Transport, Infrastructure and Communities.Ten cents from every litre of gas that Canadians pump into their cars gets diverted into the federal government’s coffers. Last year, the Liberal government announced that over the next five years, $5 billion from the gas tax would be pumped into city infrastructure on a per capita basis.The city of Vernon received $148,547 in the first installment and will receive a total of $396,818 by the end of 2006. Council has yet to finalize how this year’s funding will be spent but some on council said it may be held in reserve until next year’s budget.Coun. Pat Cochrane said the money could be put to good use to upgrade local transit. He said the money would allow the city to look at the possibility of adding more than one bus to the system. “(The cheque) is still the equivalent of about a one per cent tax increase so it is pretty substantial,” he said. “To expand the transit system with another bus could be in the neighbourhood of $200,000 so that goes along way towards a new bus.”Coun. Patrick Nicol said this year’s gas tax funding could help the city start transit upgrades a little sooner.“It would probably take a year to both purchase the bus and rework the routes,” he said. “This is the way to go with an aging population and the necessity to get people around – we’re going to need more transit.”Vernon has earmarked its 2005 share of the gas tax, nearly $300,000, to help pay for improvements along 48th Avenue to widen the road and lay out a bike lane. Based on population estimates for next year, city finance manager Rob Mayne said the city could receive nearly $500,000 from gas taxes. The North Okanagan was given $389,364 in transfer payments including Vernon’s total as well as $50,373 for Coldstream, $83,654 for the Regional District of the North Okanagan and smaller amounts to other municipalities.Kelowna received $416,725 of its initial gas tax payment and Penticton received $138,290 in its first cheque.Nicol said that with the Okanagan emerging as Canada’s next burgeoning metropolitan area, gas tax transfers may need to be increased to keep pace.“The next significant concentration of population that has a chance to expand to that degree is the Okanagan,” he said. “Hopefully we’ll begin to get funding for these projects so we can be ready.”