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Additional Funding from the Province of Ontario
for Highway Transfers.
The Urban Environment and Development Committee recommends that Council request the Minister of Transportation of Ontario to advise when the City of Toronto can expect to receive the additional $6.35 million promised in his communication dated December 15, 1997, addressed to the Metro Commissioner of Finance and Treasurer, viz:
"Second, municipalities receiving a disproportionate share of highway transfers will have their earlier bonus enriched by 50 percent.".
The Urban Environment and Development Committee reports, for the information of Council, having requested the Interim Functional Lead for Transportation to submit a report directly to Council, for consideration with this matter at its meeting scheduled to be held on February 4, 1998, on whether the City of Toronto has received an equitable portion of the funds allocated by the Province of Ontario to municipalities for highway transfers relative to the quantity and size of the highways that were downloaded to the City.
The Urban Environment and Development Committee submits the following communication (December 15, 1997) addressed to the Metro Commissioner of Finance and Treasurer from the Minister of Transportation of Ontario:
As you are aware, this government is committed to providing better, more efficient and more accountable services and programs to the people of Ontario. A key element of this commitment is the realignment of provincial and local services.
On December 12, 1997, my colleague, the Honourable Ernie Eves, Minister of Finance, announced the Province's approach to the allocation of the Community Reinvestment Fund and released a broad range of financial information regarding the realignment of provincial and local services.
I am writing to you today to provide more details on how this announcement impacts the transfer of highways to your municipality. This government has had extensive consultations with its municipal partners, and is sensitive to concerns that were raised, such as the one year maintenance allowance, the impact of adding more roads to local systems, and bridge structural needs.
In addition to the $225 million previously allocated for highway transfers, I am pleased to advise you that this government will make available a further $50 million, to be distributed in the following manner. First, the maintenance allowance for highways to be transferred on January 1, 1998, will be extended an additional two years, for a total of three years. Second, municipalities receiving a disproportionate share of highway transfers will have their earlier bonus enriched by 50 percent. Finally, approximately $9 million has been provided to enhance the amount of compensation for bridge construction requirements.
Municipalities have raised particular concerns about capital needs for bridges. We have listened to these concerns and have responded. The additional funds being made available for bridge needs apply to both highways to be transferred on January 1, 1998, as well as those that were transferred on April 1, 1997.
As s result of the two rounds of transfers, the government will have transferred some 5 150 kilometres of highways serving local needs, and will have provided $385 million in total compensation to municipalities enabling them to address their additional responsibilities.
I am pleased to advise you that your municipality will receive a one-time unconditional payment of $1,571,150.00, in addition to the compensation previously committed.
If you require further clarification of the above, please contact Denise Evans, Regional Director, Central Region at 416-235-5185.
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