Framework Complete for Federal Gas Tax Agreement

Nova Scotians can look forward to better sewer and water systems and other municipal improvements now that a framework on distributing federal gasoline tax revenues to Nova Scotia municipalities is complete.

Once an agreement has been signed, municipalities will see $145 million for sewer, water and other green infrastructure projects over the next five years.

"Nova Scotia is ready to sign an agreement and we look forward to doing so as soon as a date for a formal signing can be arranged with our federal partners," said Barry Barnet, Minister of Service Nova Scotia and Municipal Relations. "The federal government is to be congratulated on this initiative. We look forward to receiving the funds and distributing them to municipalities as soon as possible."

The province has worked closely with the Union of Nova Scotia Municipalities to determine the best approach to distribute the money. Federal guidelines require that all of the money will go towards green infrastructure projects.

"There will be no clawbacks for this money by the province," said the minister. "It will all go towards much needed municipal infrastructure projects."

An allocation formula has been developed by the Union of Nova Scotia Municipalities that ensures the funds will be distributed fairly. The formula is based on several factors including: each municipality's total eligible expenditures relative to the provincial total; each municipality's percentage of the provincial population and the percentage of total provincial dwelling units.

There has been much anticipation for this program since funding was allocated in the federal budget. To date, agreements have been signed with Ontario, Alberta, Nunavut and the Yukon territory.