Gas-tax rules change gives city another funding option

Kamloops This Week: By: Andrea Klassen in Municipal Government, News April 28, 2014
A change to the rules surrounding the $3-million in gas-tax money the city receives each year will give Kamloops council another place to look for performing-arts centre funding. Previously, municipalities could use the federal funds only for public infrastructure programs, but a new agreement has opened up the field to include arts and sports facilities, airport improvements and a host of other project types. Most of this year’s gas-tax funds are already earmarked in Kamloops for pedestrian improvements on Todd Road in Barnhartvale and for an upgrade of Windbreak Street in Brocklehurst. The city also used gas-tax revenue to create a reserve fund that will fund cycling and pedestrian projects. Mayor Peter Milobar said it is promising the federal government has relaxed the rules around the money but, at this point, he said it’s anyone’s guess whether gas-tax funds will be used to fund a performing-arts centre. “That’s for the council, if and when we get to the numbers stages, to start figuring out,” he said. “It’s an option in the tool box, but it doesn’t mean it will be acted upon for that project. It may be that we may want to use those funds for other projects.” If council did choose to use gas-tax funds to build a centre, it would have the option of setting some or all of the funds aside in a reserve designated to the project. Municipalities can also borrow against the funds. Kamloops-Thompson-Cariboo MP Cathy McLeod said the changes will give communities more flexibility while still encouraging them to revitalize their infrastructure. The city will take the next step on the performing-arts centre later this year when it hires a consultant to fine-tune its plans, including the centre’s location and design. Once that work is complete, the city will likely hold a referendum to seek permission to borrow the funds for the project.
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Where Vernon is using its Gas Tax Funding in 2014: (P.59)
29 ST SAN / STM / ROAD RECONSTRUCTION - 41 AVE TO 43 AVE $797,658
PLEASANT VALLEY ROAD REHAB - 41 AVENUE TO BX CREEK $220,174
Total to be used from Gas Tax Community Works Fund Reserve : $1,017,831