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Municipal Compliance

Under the federal Gas Tax Fund (GTF), municipalities are required to fulfil a number of requirements as outlined in their Municipal Gas Tax Fund Agreement (Agreement). Failure to comply with these requirements can and has resulted in a municipality’s payment being withheld until compliant. This page provides details on the Municipal Compliance Strategy (Strategy) and a brief description of the requirements municipalities must fulfil in order to ensure payments are not put on hold.

The Strategy

The oversight committee for the GTF implemented the Strategy to ensure municipalities comply with the significant terms and conditions (T&C) in their Agreement.  The committee includes representatives from the federal and provincial governments, the Saskatchewan Urban Municipalities Association, the Saskatchewan Association of Rural Municipalities and New North.  

The intention of the Strategy is to:

  • ensure fair treatment of all municipalities;
  • ensure an appropriate level of accountability;
  • ensure municipalities have sufficient time to understand terms and conditions; and
  • mitigate any unnecessary risk to the GTF.

Each municipality is required to enter into an Agreement with the province in order to receive their gas tax funding allocation. Under the Agreement, municipalities are required to fulfil a number of significant T&C including:

Significant T&C

Agreement Reference



Submit Infrastructure Investment Plan under new Agreement

Annex B, Section 3.1

June 1, 2015

2  Have an approved Infrastructure Investment Plan in place under new Agreement
Annex B, Section 3.3
March 31, 2016



  • its Unspent Funds
  • its estimated five year allocation from 2014‑15 to 2018-19
  • its estimated five year allocation from 2019-20 to 2023-24

Schedule A:

Section 3.3(a)
Section 3.3(b)

Section 3.3(c)

December 31, 2018
December 31, 2023

December 31, 2024


Submit Municipal Annual Expenditure Report

Schedule D, Section 1

March 31


Submit incrementality report
(if population > 2,000)

Schedule D, Section 2

March 31, 2015

March 31, 2020

March 31, 2025


Submit Capital Plan annually
(cities and population > 5,000)

Schedule D, Section 3

March 31


Submit outcomes report on completed project

Schedule D, Section 4

Annually (municipalities will be advised of date)

 Submit asset management reports (i.e., surveys, progress reports)
Schedule D, Section 5.2
Various (municipalities will be advised of date)


Submit financial statements annually*

Recommended by Oversight Committee

September 1 (cities)

July 1 (all other municipalities)

*The following financial statements are not acceptable:

  • financial statements with a denied opinion;
  • financial statements with no opinion;
  • financial statements with an adverse opinion; and
  • financial statements that are non-compliant with PSAB 3150 -Tangible Capital Assets

The Ministry has implemented a two-step process where funds are first placed on hold and, after three consecutive payments have been held for non-compliance with any T&C, the municipality will be required to repay funds and will be removed from the program.

The following measures will be taken to manage this process to ensure municipalities have sufficient time to understand and become compliant with the T&C:

  • Failure to meet any one of these T&C by the required deadline will result in a municipality’s Gas Tax payment being placed on hold.
  • The municipality will receive a letter from the Ministry stating that the payment has been placed on hold and outlining the T&C in non-compliance.
  • Failure to address the non-compliance issue(s) after a payment is put on hold will put the municipality in default under the Agreement. A municipality’s funds will remain on hold until all T&C have been met.
  • If a municipality remains in default under the Agreement at the time of the second consecutive Gas Tax payment, the Ministry will issue a letter to the municipality outlining the T&C in non-compliance.
  • Once two consecutive scheduled Gas Tax payments have been held, the Ministry will issue a letter outlining the T&C in non-compliance and informing them that a request for funds to be repaid will be issued at the next scheduled payment if the requirement is not met.
  • When a municipality has been in non-compliance for three consecutive scheduled Gas Tax payments, the province will request repayment of any or all previously transferred Gas Tax funds and will remove the municipality from the program.
  • Prior to being removed from the program, if the municipality submits the required information, it will return to full compliance and receive payment of all funds previously held.
Subject to the Strategy, municipalities removed from the program may be allowed to re-enter and participate in the program during Census years when allocations are being calculated. For example, a municipality removed in the first five years from 2014-15 to 2018-19 may be allowed to re-enter and participate in the program in the last half of the Agreement from 2019-20 to 2023-24.

Significant Terms and Conditions

  1. Submission of Infrastructure Investment Plan – In order for projects to be approved, municipalities must submit an Infrastructure Investment Plan (IIP) with details of the project.  A municipality must submit one or more IIPs outlining the amount of GTF money that will be used for each project. Under the renewed GTF, municipalities must submit at least one IIP by June 1, 2015.
  2. Have an Approved Infrastructure Investment Plan in Place – In order for an IIP to be approved, program staff may request additional information from the municipality to support their IIP submission. If this additional information is not submitted, the IIP cannot be approved and will be considered incomplete. Municipalities were required to have at least one IIP approved under the renewed GTF by March 31, 2016.
  3. Unspent Funds – A municipality must spend:
    • its Unspent Funds, carried forward from the previous agreement, by December 31, 2018;
    • its estimated five year allocation from 2014-15 to 2018-19, by December 31, 2023; and
    • its estimated five year allocation from 2019-20 to 2023-24, by December 31, 2024.
  4. Municipal Annual Expenditure Report – Municipalities with active projects are required to submit a Municipal Annual Expenditure Report (MAER) each calendar year. The MAER is a form that requires municipalities to provide information on interest earned, approved project expenditures, project status, and estimated completion date. MAERs are due March 31.
  5. Incrementality – All municipalities with a population greater than 2,000 (2011 Statistics Canada Census) are required to provide information on their capital expenditures for municipal infrastructure from its own sources and net of any other grants or funding. This is for the purposes of Annex B, Section 4 ‑ Incrementality of the federal-provincial Administrative Agreement which states that funds provided under the Agreement are to be incremental to municipal own-source infrastructure expenditures.  Municipalities will be asked to submit incrementality reports for the five year periods of:
    • 2010 to 2014, due March 31, 2015;
    • 2015 to 2019, due March 31, 2020; and
    • 2020 to 2024, due March 31, 2025.
  6. Capital Plan – All municipalities considered a City or with a population greater than 5,000 (2011 Statistics Canada Census) are required to prepare a five-year Capital Plan approved by Council, beginning in 2015 for the years 2015 through 2019, and continuing on an annual basis.  The plans must be submitted annually to the Ministry by March 31 each year.  For example, the Capital Plan for the period 2015 to 2019 would be due March 31, 2015.
  7. Outcomes Report – Municipalities are required to provide outcomes information to the Ministry to assist the province in submitting provincial outcomes reports to the federal government. The intent of the report is to provide information respecting project outcomes achieved through the use of GTF funding.   The Ministry identifies completed projects through the submission of the MAER, and sends those municipalities "outcomes report surveys" on an annual basis to be filled out for each completed project.

  8. Asset Management Reporting – Municipalities are required to make progress towards developing and/or implementing an Asset Management Plan prior to March 31, 2018. Municipalities will be required to submit by specified due dates various reports, including surveys, as needed by the Ministry to ensure municipalities meet this requirement.
  9. Financial Statements – Under The Municipalities Act, The Northern Municipalities Act and The Cities Act, municipalities are required to submit financial statements.   All municipalities, except cities, must submit financial statements by July 1 each year for the previous calendar year. Cities must submit by September 1.  Municipalities that submit audited financial statements with a denied audit opinion, no audit opinion, an adverse audit opinion or a qualified audit opinion for PSAB 3150 - Tangible Capital Assets will have their GTF payments placed on hold until audited financial statements with an acceptable audit opinion are submitted. 

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