Saskatchewan and Canada entered into an administrative agreement enabling the provincial government to continue to receive funding from the federal GTF for a 10-year term: 2014-15 through 2023-24.
The 2013-2014 federal budget stated that $21.8 billion will flow to Canadian municipalities over 10 years through the renewed GTF. This provides predictable, long-term, stable funding for Canadian municipalities to help them build and revitalize their local public infrastructure while helping to create jobs and contributing to long-term prosperity. The program is now permanent and is indexed at two per cent annually, applied in $100 million increments.
The bilateral agreement provides a joint framework for transferring federal gas tax funding from Canada to Saskatchewan for administration and for allocation to municipalities.
To receive funding, municipalities must:
- enter into a Municipal Gas Tax Fund Agreement, including any amendments;
- submit an Infrastructure Investment Plan for each project; and
- adhere to Saskatchewan's Municipal Compliance Strategy.
The payments are based on per capita and are to be used for municipal infrastructure and capacity building projects.
During the first five years of the renewed program, more than 1,100 Infrastructure Investment Plans were approved, with an estimated total project cost of $504 million.
The list of eligible project categories includes:
- For expenditures incurred after April 1, 2005:
- Local Road and Bridges
- Short-line Rail
- Public Transit
- Drinking Water
- Solid Waste
- Community Energy Systems
- Capacity Building
- For expenditures incurred after April 1, 2014:
- Regional and Local Airports
- Short-sea Shipping
- Disaster Mitigation
- Broadband Connectivity
- Brownfield Redevelopment
- Cultural Infrastructure
- Tourism Infrastructure
- Sport Infrastructure
- Recreational Infrastructure