Wrapping up of the 8 Year Gas Tax

Agreement

April 2013

Overview

Part l – Overview of the New Gas Tax Agreement

Part ll – Payments and Reporting Requirements 8 year Municipal/ ICG Allocations ($143M)

and Payments Current Year Reporting Requirements Future Years Reporting Requirements

Part IlI - Managing of Gas Tax allocations, payments and projects Managing Gas Tax Allocations and Payments Managing Gas Tax Projects

Part IV – New Processes for 2013 Economic Action Plan Signage Outcomes Report

Part V – Key Messages

Overview of the New Gas Tax Agreement

The Federal Government stated in the 2013 Budget that:

“there will be $21.8 billion in Gas Tax payments over the next 10 years.”

“Gas Tax Agreements will be signed [with the jurisdictions] by March 31, 2014.”

“The list of existing eligible investment categories will be expanded to include: highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, Brownfield redevelopment, culture, tourism, sport and recreation.”

Overview of the New Gas Tax Agreement (cont’d)

• Administration details, reporting and accountability requirements of the new agreement are not known at this time and we will advise as more details are released from Infrastructure Canada.

Part IlPayments and

Reporting Requirements

8 year Municipal/ ICG Allocations ($143M)

and Payments

• We are currently in the last year of the 8 year Gas Tax Funding allocation.

• As of March 31, 2013, Municipal Affairs has paid out $112.2M.

• $30.8M is remaining to be paid.$13.7M in approved applications$14.6M in applications required from

recipients $2.5M held because of non-

compliance

8 year Municipal/ ICG Allocations ($143M)

and Payments (cont’d)

• Only 2 payments remain within the current Gas Tax Funding Agreement.

• These payments are scheduled to be released in October 2013 and February 2014, subject to compliance of recipients.

• Payments held for non-compliance can be released as the non-compliance issues are cleared.

Current Year Reporting Requirements

You must submit the following documents:• 2013 Budget and the 2014 Budget which

is due December 31, 2013; • AERs up to and including the 2012 AER;• Final Copy of ICSP;• Outcomes Report;• Amendment to your agreement;• CIP for remaining allocation; and• All PSAB compliant Audited Financial

Statements up to the 2012 fiscal year which are due June 30, 2013.

All documents are subject to review and reconciliation.

Future Years Reporting Requirements

• March 31, 2014: 2013 AER and Outcomes Report • June 30, 2014: 2013 Audited PSAB Financial Statements • December 31, 2014: 2015 Budget• March 31, 2015: 2014 AER and Outcomes Report• March 31, 2015: All approved projects must be

completed, gas tax funding must be spent and loans must be repaid.

• June 30, 2015: 2014 Audited PSAB Financial Statements • December 31, 2015: 2016 Budget• March 31, 2016: 2015 Final AER and Final Outcomes

ReportReporting requirements end when all gas tax funds (allocations plus interest) received is spent and accounted for and reconciled with MA and all outcomes are reported.

Part IIlManaging of Gas Tax allocations, payments and

projects

Managing Gas Tax Allocations and Payments

8 Year Allocation: $100,000Approved Projects: ($60,000)CIP Owed to MA: $40,000

Approved Projects: $60,000Funds Received to date: ($32,000)Total Owed to Town: $28,000

Managing Gas Tax Projects

(A)Project Name

(B)Project Number

(C)Date Approved

(D)Approved Amount

(E)Spent in 2007

(F)Spent in 2008

(G)Total Spent(E + F)

(H)Left to Spend(D-G)

Municipal Building Retrofit

120-2007-123

1-Jan-07 $10,000 $3,000 $5,000 $8,000 $2,000

Municipal Plan

112-2008-432

1-Mar-08 $20,000 $0 $20,000 $20,000 $0

Managing Gas Tax Projects (cont’d)

Submit a CIP for a new project. All projects must be pre-approved.

Submit a CIP as soon as a cost overrun in an approved project is identified.

Submit a resolution and explanation to decrease the approved amount to the actual cost of a completed project.

Submit a resolution to delete a gas tax project where no costs have been incurred.

Part IVNew Processes for

2013

Economic Action Plan Signage

• On October 31, 2012, the Economic Action Plan Signage Policy was sent to all recipients.

• The following criteria requires the installation of an Economic Action Plan Sign:• Active Transportation: all projects over

$5,000;• Water: all projects over $20,000;• Waste Water: all projects over $20,000;• Solid Waste: all projects over $20,000;

and• Community Energy Systems: all

projects over $20,000.

Economic Action Plan Signage (cont’d)

• Recipients must follow the Infrastructure Canada Project Sign Design and Installation Guide.

• All signs must be installed and visible for the duration of the project - 7 days before until 30 days after construction ends.

• Once the sign has been installed, please email signs@infc.gc.ca indentifying the project name(s) and community.

• Recipients are advised to take photographs of the sign to keep in their gas tax file.

Outcomes Report

• Outcomes Report is a requirement of the Gas Tax Agreement.

• The purpose of the Outcomes Report is to provide a provincial summary of how all completed projects contribute to Cleaner Air, Cleaner Water and Reduced Greenhouse Gas Emissions.

• The Gas Tax Secretariat sent all recipients a list of projects that were approved between 2006 and 2012.

Outcomes Report (cont’d)

• All recipients were required to complete the report by the date specified on the Outcomes Package.

• The Gas Tax Secretariat will be establishing an annual outcomes data collection process.

• It is very important to maintain all Gas Tax records as specified in the Agreement.

Outcomes Report (cont’d)

Completing the Outcomes Report:1. Confirm that all information

provided in the Outcomes Report is accurate.

2. Fill in all the blank spaces. 3. In the “Outcomes Measures”

column, use the appropriate indicators provided.

4. In the “Quantitative Outcomes” column, provide a numerical value for the chosen measure.

5. Provide “Start” and “End Dates” for projects that are “In-Progress” or “Completed”.

Part VKey Messages

Key Messages

The following documents are overdue and should be submitted immediately:• 2013 Budget • AERs up to and including the 2012 AER; • Final Copy of ICSP; • Outcomes Report; • Amendment to your agreement; • CIP for remaining allocation and for any

adjustments to approved amounts; and• PSAB compliant Audited Financial

Statements up to December 31, 2011.

Key Messages (cont’d)

The following documents are due this year:• 2014 Budget which is due

December 31, 2013. • The PSAB compliant Audited

Financial Statements for 2012 are due June 30, 2013.

How do I contact the GTS?

Gas Tax SecretariatDepartment of Municipal AffairsConfederation Building, West BlockP.O.Box 8700St. John's, NLA1B 4J6Phone: 1-877-729-4393Fax : 709 729 3605Website : www.ma.gov.nl.ca/ma/gta/Email: gastax@gov.nl.ca

Questions