County to share $95,655 in legacy gas tax funds

Regional gov’t, seven municipalities to use the money for infrastructure work

The county and its municipalities received a small windfall in the form of a one-time payment of legacy gas tax funds from the federal government.

The $95,655 will be redistributed with 80 per cent allocated to the county’s seven municipalities and 20 per cent staying with the County of Essex.

“We’re retaining about $38,000 of that $95(655) and the residual is going to local municipalities,” said treasurer Rob Maisonville.

A total of $32 million in legacy funds was distributed by the federal government, split among all the provinces and territories.

The Association of Municipalities of Ontario received the funds — a total surplus of $10,928,204 — and then AMO redistributed them across the province on a per-capita basis, which worked out to 54 cents for each resident.

Maisonville said the county receives roughly $10.5 million annually in gas tax revenue and it is normally split 50/50 between the upper and lower tiers. But the municipalities decided it would be better split 80/20.

He said the money must be spent on infrastructure work — roads, bridges and culverts at the county level.

Municipalities are allowed to spend it on sewers and water infrastructure as well.

There have been small increases in the amount of gas tax funds distributed over the last couple of years, and Maisonville said the county will see another increase in 2018.

“It’s not a lot,” he said. “I think about an additional $200,000 from (2015) to (2016).”

The winning bidder on the replacement of a large culvert over Craig’s Creek in Essex came in almost $200,000 below the engineer’s estimate for the job.

SLR Contracting Group Ltd.’s bid of $304,740 for a precast concrete culvert replacement earned it the job. The engineer’s estimate was $494,300.

Tenders were also received for a cast-in-place option but those bids came in above the engineer’s estimate for the work.

County engineer Tom Bateman said the rehabilitation work will take place this summer and will shut down part of County Road 12 for approximately three weeks.

We’re retaining about $38,000 of that $95(655) and the residual is going to local municipalities.