The City of Terrace can expect over a million dollars in gas tax funds based on its 2021/22 projection allocated by the Union of B.C. Municipalities (UBCM).
While the projected gas tax allocation for Terrace in 2021/22 is $570,311, a one-time payment from the federal government amounting to $545,435 stretches the projection to over a million dollars.
Based on the UBCM’s gas tax allocation list released last week, the City of Terrace is also projected to get $570,311 for 2022/23 and $595,268 the following year for 2023/24.
Federal gas tax funding — officially named the Canada Community-Building Fund — is allocated to municipalities by the UBCM through its Community Works Fund (CWF) stream. This federal funding dispersed through CWF is aimed to help municipalities with their local infrastructure priorities such as roads, bridges, public transit, drinking water, broadband connectivity, community energy systems and disaster mitigation to name a few.
This year in March, in addition to a fixed long term stream of funding already in place, the federal government also announced a top-up funding almost doubling the yearly allocation for local governments. As part of this top-up allocation, the federal government dispersed $2.2 billion across Canadian municipalities and First Nation communities.
While the City of Terrace has budgeted its annual gas tax amount in 2021 towards the Weber Avenue reconstruction road project, it has yet to discuss where the half million top-up fund will be directed towards , said spokesperson Kate Lautens.
The city is yet to receive the one-time payment, said Lautens and added, “Due to the timing of it, it will likely form part of our 2022 capital planning discussions.”
Meanwhile neighbouring Kitimat can also expect somewhere around $415,741 for 2021/22 along with an additional one-time top-up amount of $397,538.
The Regional District of Kitimat- Stikine is projected to get $775,231 for 2021/22 along with a one-time payment of $775,231.