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Gas Tax Agreement
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BETWEEN: | HER MAJESTY IN RIGHT OF CANADA, (“Canada”) represented by the Minister of State (Infrastructure and Communities) (“Federal Minister”) |
AND: | HER MAJESTY IN RIGHT OF THE PROVINCE OF NOVA SCOTIA (“Nova Scotia”) represented by the Minister of Service Nova Scotia and Municipal Relations (“Provincial Minister”) and the Minister of Intergovernmental Affairs |
WHEREAS Canada and Nova Scotia wish to cooperate in making a transformative difference in the sustainability and future prosperity of Municipalities in Nova Scotia and for Canada’s future.
WHEREAS The New Deal for Cities and Communities will engage governments and stakeholders in purposeful partnerships, foster sustainable cities and communities across Canada and enable all Canadians to achieve a higher quality of life and standard of living.
WHEREAS Canada and Nova Scotia have agreed to cooperate under the New Deal for Cities and Communities which is based on a long-term vision of sustainability and which integrates four interdependent dimensions: economic, environmental, social and cultural.
WHEREAS the Government of Canada’s Budget 2005 outlined an intent to provide provinces and territories an amount equivalent to a portion of the federal excise tax on gasoline.
WHEREAS this agreement includes the specific provisions on the Gas Tax for Environmentally Sustainable Municipal Infrastructure to primarily support environmental sustainability objectives under a New Deal for Cities and Communities.
WHEREAS this Agreement reflects the scope of expected areas of cooperation under a New Deal for Cities and Communities and for which Canada and Nova Scotia may enter into separate agreements, including possible tripartite agreements, to support sustainability objectives.
WHEREAS the Gas Tax Transfer is consistent with the Nova Scotia objectives of partnering to promote effective local government and healthy and vibrant Nova Scotia communities.
WHEREAS Canada and Nova Scotia have cooperated in establishing this Agreement respecting the jurisdiction of all Parties.
AND WHEREAS the Lieutenant Governor in Council by OIC 2005-382 has authorized the Minister of Intergovernmental Affairs and the Minister of Service Nova Scotia and Municipal Relations to enter into this Agreement on behalf of Nova Scotia.
The Government of Canada and the Government of Nova Scotia acknowledge that this Agreement has been negotiated with the regard to the following principles:
NOW THEREFORE, in accordance with the principles set out above, Canada and Nova Scotia hereby agree as follows.
A capitalized term has the meaning given to it in this section unless the context clearly dictates otherwise.
“Agreement” means this Canada – Nova Scotia agreement on the transfer of Funds.
“Annual Expenditure Report” means the annual report to be prepared and delivered by Nova Scotia to Canada, more particularly described in Schedule D.
“Audit Report” means an audit report prepared, at Nova Scotia’s cost, by the Nova Scotia auditor general or other Nova Scotia licensed auditor, more particularly described in Schedule D.
“Capacity Building Projects” means projects and activities that strengthen the ability of Municipalities to develop and implement integrated community sustainability plans, as more particularly described in Schedule A.
“Capital Investment Plan” means a document created by a Municipality through a public process, providing a detailed understanding of anticipated investments into tangible capital assets, including Environmentally Sustainable Infrastructure, that are considered “priorities” (along with a rationale).
“Eligible Costs” means those costs described in Schedule B, incurred in respect of Eligible Projects.
“Eligible Projects” means Capacity Building Projects and ESMI Projects.
“Eligible Recipient” means a Municipality.
Federal and provincial entities in the form of departments, corporations and agencies are not eligible recipients.
“Eligible Recipient Requirement” means those requirements described in Schedule C hereto.
“Environmentally Sustainable Municipal Infrastructure (ESMI) Projects” means Municipal Infrastructure projects that:
“Funds” means the funds made available pursuant to this Agreement and includes any interest earned on the said Funds.
“GTF” means the Gas Tax Fund Transfer Payment Program, pursuant to which this Agreement is entered into.
“Halifax Regional Municipality (HRM) Base Amount” is $58 million dollars which represents a three year average (2001/02, 2002/03, and 2003/04) of capital asset acquisitions taken from the HRM financial statements less capital projects that were funded partially or totally by senior governments.
“Infrastructure Programs” means Canada’s infrastructure programs in existence at the time of the execution of this Agreement, including the Canada Strategic Infrastructure Fund, the Border Infrastructure Fund, the Municipal Rural Infrastructure Fund and the Infrastructure Canada Program.
“Integrated Community Sustainability Plans” means a long-term plan, developed in consultation with community members, that provides direction for the community to realize sustainability objectives it has for the environmental, cultural, social and economic dimensions of its identity, as more particularly described in Schedule H hereto.
“Ministers” means the Federal Minister and the Provincial Minister.
“Municipal Capital Budget” means a plan that, at a minimum, identifies capital projects to be undertaken over a specified period of time and includes the total cost of the capital projects, the funding sources that will be used to finance the projects and a breakdown, by project, of planned expenditures by year.
“Municipal Funding Agreements” means separate Agreements between the Province and each Eligible Recipient that describes the terms and conditions of receiving Funds, more particularly described in Schedule I hereto.
“Municipal Infrastructure” means tangible capital assets in Nova Scotia primarily for public use or benefit owned by an Eligible Recipient.
“Municipality” "Municipality" means a municipality in Nova Scotia incorporated or continued pursuant to the Municipal Government Act, and more specifically, a regional municipality, town or county or district municipality.
“New Deal” and “New Deal for Cities and Communities” refers to the federal initiative to enhance Government of Canada commitments to advancing local sustainability on four major themes: economic, environmental, social and cultural.
“Outcomes Report” means the report to be delivered by Nova Scotia to Canada and made available to the public, which reports on the outputs and outcomes of the use of the Funds, using the indicators set out in Schedule E.
“Parties” means Canada and Nova Scotia.
“Provincial Base Amount” is $9.3 million dollars which represents a three year (2001/02, 2002/03, and 2003/04) average of funds spent on municipal infrastructure by Nova Scotia and includes money allocated through the Provincial Capital Assistance Program and the Canada Nova Scotia Infrastructure Program.
“SIMSI” means Infrastructure Canada’s Shared Information Management System for Infrastructure.
“Third Party” means any person, other than a party to this Agreement that participates in the implementation of an Eligible Project.
This Agreement supersedes and invalidates all other commitments, representations and warranties relating to the subject matter hereof which the Parties may have made either orally or in writing prior to the date hereof, and all of which will become null and void from the date this Agreement is signed.
The following schedules are attached to form part of this Agreement:
Schedule A- Eligible Project Categories
Schedule B- Eligible Costs
Schedule C- Eligible Recipient Requirements
Schedule D- Reporting and Audits
Schedule E- Outcome Indicators
Schedule F- Communications Protocol
Schedule G- Areas of Collaboration
Schedule H- Integrated Community Sustainability Plans
Schedule I- Municipal Funding Agreement
In the event of a conflict, the part of this Agreement that precedes the signatures of the Parties will take precedence over the Schedules.
All accounting terms not otherwise defined herein have the meanings assigned to them, all calculations will be made and all financial data to be submitted will be prepared, in accordance with the generally accepted accounting principles (GAAP) in effect in Canada and in Nova Scotia. GAAP will include, without limitation, those principles approved or recommended from time to time by the Canadian Institute of Chartered Accountants, or any successor institute, applied on a consistent basis.
The purpose of this Agreement is to:
The Government of Canada will:
The Government of Nova Scotia will:
Upon execution of this Agreement, the Ministers shall promptly establish an Oversight Partnership Committee to be co-chaired by two members – one of whom is to be appointed by the Federal Minister, and designated as federal co-chairperson, and one of whom is to be appointed by the Provincial Minister, and designated as provincial co-chairperson.
In addition to the co-chairs, the Partnership Committee will consist of two representatives appointed by the Union of Nova Scotia Municipalities and an additional representative appointed by each of the provincial and federal government Ministers.
The Committee shall monitor the overall strategic implementation of the Gas Tax Agreement and collaborate on other aspects of shared objectives of the New Deal for Cities and Communities. This committee can provide a forum to support a focused approach to the management of municipal infrastructure programming in Nova Scotia.
The Committee shall, within twelve months of the signing of this Agreement, develop a methodology for the measurement of incremental spending on municipal infrastructure for Nova Scotia communities other than the HRM.
As a part of the New Deal for Cities and Communities, other means to support the sustainability of municipalities in Nova Scotia will be explored through such mechanisms as tripartite agreements between the three levels of government. An example is a consideration of a tripartite agreement with Halifax Regional Municipality, which may include elements such as building stronger neighbourhoods, immigration, and integrated harbour planning and transportation as described in Schedule G.
Canada’s total contribution to Nova Scotia is as follows:
Fiscal year |
Canada’s Contribution |
2005-2006 |
$ 17,419,000 |
2006-2007 |
$ 17,419,000 |
2007-2008 |
$ 23,225,000 |
2008-2009 |
$ 29,032,000 |
2009-2010 |
$ 58,064,000 |
TOTAL |
$145,159,000 |
Provided there is no default under the terms of section 8.2 of this Agreement, Canada’s contribution will be paid in equal semi annual payments as follows:
(i) The first payment will be made not later than July 1st of each Fiscal Year set out above in subsection 5.1.
(ii) The second semi annual payment will be made not later than November 1 of each Fiscal Year.
In respect of the first Fiscal Year of this Agreement, the first payment shall be made following the execution of this Agreement.
A payment due by Canada hereunder is conditional on a legislated appropriation for the GTF for the Fiscal Year in which the payment is due.
(i) Eligible Recipients may use Funds to pay up to 100% of Eligible Costs of an Eligible Project. However, to the extent an Eligible Recipient is receiving money under an Infrastructure Program in respect of an Eligible Project to which the Eligible Recipient wishes to apply Funds, the maximum federal contribution limitation set out in any Infrastructure Program contribution agreement made in respect of that Eligible Project shall continue to apply.
(ii) Without prior written approval of Canada, Nova Scotia may not use the payment of Funds to an Eligible Recipient as the Nova Scotia contribution under contribution agreements under existing Infrastructure Programs.
To the extent that Nova Scotia receives a repayment of all or a portion of a contribution pursuant to the operation of Paragraph 13 of Schedule C, Nova Scotia shall immediately pay the said amount to Canada.
Nova Scotia will require through Municipal Funding Agreements that all contracts for the supply of services or materials to Eligible Projects will be awarded in a way that is transparent, competitive, and consistent with value for money principles.
The Gas Tax Transfer will flow to Municipalities based upon the formula recommended by the Union of Nova Scotia Municipalities to the Minister of Service Nova Scotia and Municipal Relations.
More specifically, the allocation formula shall include the following components:
The formula to calculate Gas Tax Funds for Municipalities is as follows:
Twenty-five percent of:
The population of the Municipality divided by the population of the Province times Canada's annual contribution
Plus:
Twenty-five percent of:
The number of dwelling units in the Municipality divided by the total number of dwelling units in the Province times Canada's annual contribution
Plus:
Fifty percent of:
The five year rolling average of standard expenditures of the Municipality
divided by the five year rolling average of standard expenditures for all
Municipalities in the Province times Canada's annual contribution.
Dwelling units shall be based on the definition of dwelling units in the Municipal Grants Act Section 2(c) and shall be the number of dwelling units recorded on the filed assessment roll.
Population shall be based on the latest census data available as compiled by Statistics Canada.
Expenditures shall be based on Standard Expenditures as defined in the Municipal Grants Act Section 12(2) and calculated on a five year rolling average basis.
This Agreement allows for an amendment of the definition of expenditures after year two.
The Funding Formula on which Funds are based may be amended at the request of the Union of Nova Scotia Municipalities after two years. A change in this Section does not alter any other term of this agreement.
Municipal Funding Agreements will detail the trigger to flow each Municipality's annual allocation consistent with the following:
Nova Scotia agrees that it shall record Canada’s contribution into a separate and distinct account, pending payment to Eligible Recipients in accordance with the terms of this Agreement.
Nova Scotia agrees to pay Funds to Eligible Recipients solely for Eligible Projects identified in Schedule A and solely in respect of Eligible Costs identified in Schedule B.
All administration costs of Nova Scotia in respect of the implementation and management of this Agreement shall be for the account of Nova Scotia.
Nova Scotia agrees to include, in all Municipal Funding Agreements, the Eligible Recipient Requirements and agrees to enforce all terms and conditions of the Funding Agreements, including the Eligible Recipient Requirements.
7.1.1 Nova Scotia will, at its cost:
7.1.2 Canada may incorporate all or any part or parts of the said reports into any report that Canada may prepare for its own purposes, including any reports that may be made public.
7.2.1 Annual Expenditure Reports will be accompanied by an Audit Report.
7.2.2 Nova Scotia agrees to require through Municipal Funding Agreements that proper and accurate accounts and records, including invoices, statements, receipts and vouchers in respect of all Eligible Projects that receive Funds, are kept for at least three (3) years after termination of this Agreement and will, upon reasonable notice, make them available or cause the applicable Eligible Recipient to make them available to Canada for inspection or audit.
7.2.3 Canada may request and Nova Scotia agrees to complete, at its cost, and provide to Canada an audit of any one or more individual Eligible Projects. Municipal Funding Agreements will require Municipalities to pay for these audit costs.
7.2.4 Nova Scotia will share with Canada the results of any compliance or performance audit that it may carry out beyond the Audit Report that examines the use of Funds to a specific extent.
7.3.1 No later than March 31, 2009, Canada and Nova Scotia shall complete a joint formative evaluation of the program set out in this Agreement, the results of which will be made public. The Parties shall seek the input of Eligible Recipients, or representatives thereof, as the Parties deem appropriate.
7.3.2 At a minimum, the evaluation will address the issues related to achievement of the objectives of this Agreement, the use of funding, the effectiveness of the funding approach described in sections 5 and 6 of this Agreement, and the effectiveness of the Communications Protocol described in Schedule F.
7.3.3 The Parties agree to cooperate with respect to the above noted evaluation, the costs of which be shared equally by the Parties. Canada agrees to consult with Nova Scotia on the design of the evaluation framework.
7.3.4 In addition to the foregoing, no later than June 30, 2009, Canada will, at its cost, complete a national evaluation, incorporating the results of the joint bilateral evaluations described above. Canada will share the results of this national evaluation with Nova Scotia, prior to its completion.
The Parties agree to keep each other informed of any disagreement or contentious issue. Disagreements or contentious issues that cannot be resolved at the bureaucratic level will be brought to the Partnership Committee for review, discussion and resolution. Any issue that cannot be resolved at the Partnership Committee will be submitted to Ministers for resolution.
Canada may declare that an event of default has occurred if Nova Scotia has:
Canada will not declare that an event of default has occurred unless it has consulted with Nova Scotia and given notice to Nova Scotia of the occurrence, which in Canada’s opinion constitutes an event of default.
Nova Scotia will, within 30 days of receipt of the notice, either correct the condition or event or demonstrate, to the satisfaction of Canada, that it has taken such steps as are necessary to correct the condition.
Nova Scotia may declare that an event of default has occurred if Canada has:
Nova Scotia will not declare that an event of default has occurred unless it has consulted with Canada and given notice to Canada of the occurrence, which in Nova Scotia’s opinion constitutes an event of default. Canada will, within 30 days of receipt of the notice, either correct the condition or event or demonstrate, to the satisfaction of Nova Scotia, that it has taken such steps as are necessary to correct the situation.
If Canada declares that an event of default has occurred, after 30 days of declaration, it may immediately exercise one or more of the following remedies:
If Nova Scotia declares that an event of default has occurred, after 30 days of declaration, it may suspend or terminate its obligations under the terms of this Agreement, and if suspended, Nova Scotia may resume its obligations when satisfied the default has been cured.
Nova Scotia agrees at all times to indemnify and save harmless Canada, its officers, servants, employees or agents, from and against all claims and demands, loss, costs, damages, actions, suits or other proceedings by whomsoever brought or prosecuted in any manner based upon, or occasioned by any injury to persons, damage to or loss or destruction of property, economic loss or infringement of rights caused by or arising directly or indirectly from:
This Agreement shall commence on September 23, 2005, and shall expire on March 31, 2015. Either Party may terminate this Agreement on two (2 years) written notice.
Following the completion of the evaluation described in Subsection 7.3.1 above, the Parties may elect to amend the Agreement, as appropriate.
The parties hereby agree to follow the terms of the communications protocol set out in Schedule F hereto.
Each Party declares to the other that the signing and execution of this Agreement was duly and validly authorized, and that each has incurred a legal and valid obligation in accordance with the terms and conditions of the Agreement.
The Parties' rights and obligations set out in Sections 6, 7 and 10 and Sub-Sections 3.2 (c), (d), (e), (f), (h) and (i), 5.4, 5.5, 8.3, 8.4, 10, 11.3, 11.4, 11.5, and 11.12 will survive the expiry or early termination of this Agreement and any other section or Schedule which is required to give effect to the termination or to its consequences shall survive the termination or early termination of this Agreement.
This Agreement is governed by the laws applicable in Nova Scotia.
Any amount owed to Canada under this Agreement will constitute a debt due to Canada, which Nova Scotia will reimburse forthwith, on demand, to Canada.
No member of the House of Commons or of the Senate of Canada will be admitted to any share or part of any Contract made pursuant to this Agreement or to any benefit arising therefrom.
It is understood, recognized and agreed that no provision of this Agreement and no action by the Parties will establish or be deemed to establish a partnership, joint venture, principal-agent relationship, or employer-employee relationship in any way or for any purpose whatsoever between Canada and Nova Scotia or between Canada, Nova Scotia and a Third Party.
Nothing in this Agreement is to be construed as authorizing one Party to contract for or to incur any obligation on behalf of the other or to act as agent for the other. Nothing in this Agreement is to be construed as authorizing any Recipient or any Third Party to contract for or to incur any obligation on behalf of either Party or to act as agent for either Party and Nova Scotia will take reasonable steps to ensure that all Municipal Funding Agreements contain provisions to that effect.
This Agreement may be signed in counterpart, and the signed copies will, when attached, constitute an original Agreement.
No person governed by the post-employment, ethics and conflict of interest guidelines of Canada will derive a direct benefit from this Agreement unless that person complies with the applicable provisions.
If for any reason a provision of this Agreement that is not a fundamental term is found to be or becomes invalid or unenforceable, in whole or in part, it will be deemed to be severable and will be deleted from this Agreement, but all the other terms and conditions of this Agreement will continue to be valid and enforceable.
A Party may waive any right under this Agreement only in writing; and any tolerance or indulgence demonstrated by that Party will not constitute waiver of such right. Unless a waiver is executed in writing, that Party will be entitled to seek any remedy that it may have under this Agreement or under the law.
Nova Scotia warrants that any person who lobbies or has lobbied on Nova Scotia’s behalf to obtain funding, or any benefit under this Agreement, and who is subject to the Lobbyists Registration Act (Canada), is registered accordingly. Furthermore Nova Scotia warrants that no remuneration based on a percentage of Canada’s contribution will be paid to a lobbyist.
If Canada concludes an agreement for similar purposes with any other province or territory of Canada, and that agreement taken as a whole is materially different from this Agreement, Nova Scotia may require Canada to agree to amend this Agreement so that, taken as a whole, it affords similar treatment to Nova Scotia as the other agreement affords to the other province or territory.
Additionally, this Agreement may be amended from time to time on written agreement of the Ministers.
Any notice, information or document provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid, or by facsimile or e-mail. Any notice that is delivered will have been received on delivery; and any notice mailed will be deemed to have been received eight (8) calendar days after being mailed.
Any notice to Canada must be sent to:
Assistant Deputy Minister, Cities and Communities
Infrastructure Canada
90 Sparks Street
Ottawa (Ontario)
K1P 5B4
Facsimile: 613-952-4978
Email: laroche.yazmine@infrastructure.gc.ca
Any notice to Nova Scotia will be sent to:
Deputy Minister, Service Nova Scotia and Municipal Relations
1505 Barrington Street
Maritime Centre, 14 North
PO Box 216
Halifax (Nova Scotia)
B3J 2M4
Facsimile: 902-424-0581
Email: keefeg@gov.ns.ca
Each Party may change the address that it has stipulated by notifying in writing the other party of the new address.
This Agreement has been executed on behalf of Canada by the Minister of State (Infrastructure and Communities), and on behalf of Nova Scotia by the Minister of Intergovernmental Affairs and the Minister of Service Nova Scotia and Municipal Relations.
GOVERNMENT OF CANADA Original signed by: |
GOVERNMENT OF NOVA SCOTIA Original signed by: |
______________________________ Minister of State (Infrastructure and Communities) |
_______________________________ |
_______________________________ Minister of Service Nova Scotia and Municipal Relations |
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WITNESSED BY: | |
Original signed by: | |
_______________________________ Charles Crosby President, Union of Nova Scotia Municipalities |
a) Public transit, e.g.:
b) Water, e.g.:
Drinking water supply; drinking water purification and treatment systems; drinking water distribution systems; water metering systems.
c) Wastewater, e.g.:
Wastewater systems including sanitary sewer systems; and separate storm water systems.
d) Solid waste, e.g.:
Waste diversion; material recovery facilities; organics management; collection depots; waste disposal landfills; thermal treatment and landfill gas recuperation.
e) Community Energy Systems, e.g.:
f) Active transportation infrastructure (e.g, bike lanes), local roads, bridges and tunnels for Municipalities that enhance sustainability outcomes.
1 Project Costs
Eligible costs, as specified in each Municipal Funding Agreement, will be all direct costs, which are in Canada’s opinion properly and reasonably incurred and paid by an Eligible Recipient under a contract for goods and services necessary for the implementation of an Eligible Project. Eligible costs may include only the following:
1.1 Employee and Equipment Costs
In the case of Municipalities having a population less than 75,000 the out of pocket costs (not overhead) related to employees or equipment may be included in its eligible costs under the following conditions.
1.2 Administration Costs
That portion of Funds representing interest earned, may be used to pay for administration costs.
Costs related to the following items are ineligible costs:
Eligible Recipients shall:
Where Eligible Project asset is sold, leased, encumbered or disposed of: |
Repayment of contribution |
Within 2 Years after Eligible Project completion |
100% |
Between 2 and 5 Years after Eligible Project completion |
55% |
Between 5 and 10 Years after Eligible Project completion |
10% |
1.1.1 The Annual Expenditure Report will report on:
1.1.2 The Annual Expenditure Report will also indicate in a narrative the progress that Nova Scotia has made in meeting its commitments and contributions.
1.1.3 The Annual Expenditure Report will also include the following information:
A listing of all Eligible Projects that have been approved for funding, indicating the location, investment category, amount and identity of all sources of funding, nature of the investment and expected outcomes, as identified in Schedule E.
1.1.4 In the case of Eligible Recipients with a year-end other than March 31, and with the prior approval of Nova Scotia, the Annual Report may include information in respect of Eligible Projects related
1.2.1 The Outcomes Report will report on the cumulative investments made, including information on the degree to which these investments have actually contributed to the objectives of cleaner air, cleaner water and reduced GHG emissions.
2.1 The Audit Report, which includes the results of financial and compliance audits, will provide an opinion as to whether all of the information contained in the Annual Expenditure Report is complete and accurate and whether Nova Scotia has complied with all material provisions of this Agreement.
Annual Expenditure Report –
Template Reporting Format for Funding Flows
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Annual |
Cumulative |
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01/04/20xx – 31/03/20xy |
Date of signing –31/03/20xy |
Nova Scotia |
|
|
Opening balance of unspent funding |
|
xxx |
Received from Canada |
xx |
xxx |
Transferred to Eligible Recipients |
(xx) |
(xxx) |
Closing balance of unspent funding |
|
xxx |
|
|
|
Eligible Recipients in aggregate |
|
|
Opening balance of unspent funding |
|
xxx |
Received from province |
xx |
xxx |
Spent on eligible projects |
(xx) |
(xxx) |
Closing balance of unspent funding |
|
xxx |
The impact of the use of the Funds will be measured through a set of core indicators linked to the following outcomes and outputs:
Outcomes:
Outputs:
Canada and Nova Scotia agree that Canadians have a right to transparency and public accountability, which is best served by full information about the benefits of the New Deal for Cities and Communities.
This communications protocol establishes the principles and practices that will guide all announcements and events related to this Agreement, funding to Eligible Recipients under this Agreement and the New Deal. Communications activities may include, without limitation, major public events or announcements, or communications products such as speeches, press releases, websites, advertising, promotional material or signage.
The Parties agrees that:
The Government of Canada agrees that:
Nova Scotia agrees that:
General
Assessment
Communication results will be assessed as part of the evaluation process set out in Section 7.3.2 of the Agreement.
To encourage healthy and vibrant communities, the Parties recognize the need to collaborate further in areas that affect Nova Scotians’ quality of life. It is the intent of the Parties to actively explore the creation of a Tripartite Agreement with the Halifax Regional Municipality (HRM). HRM is Nova Scotia’s capital city and the largest and most urban Municipality in the province and is an economic engine for provincial growth.
A Tripartite Agreement will enhance existing coordination in service delivery and policy coordination and will support sustainability in areas where all levels of government have shared responsibilities or interests.
Specific areas of collaboration that merit further exploration include those noted below. A priority emphasis will be placed on the first item, reflecting the significant opportunities that would arise from further collaboration in this area.
Integrated Transportation and Harbour Planning – A strategic opportunity exists to optimize the potential of the Halifax Harbour and to better integrate overall transportation planning within HRM. The Harbour, with its’ regional and national linkages, is vital to the economy of Nova Scotia and Atlantic Canada. Each level of government has a role to play in providing a coordinated approach to planning, infrastructure development, supporting the private sector led Gateway Council Initiative, and creating integrated transportation links within the region and beyond.
Strong Neighbourhoods - Some neighbourhoods in HRM have developed at a different rate than others, and some are confronted with a number of challenges including a shortage of affordable housing and underemployment. All levels of government are committed to coordinating resources to ensure that they are strategically allocated to support a shared vision. All levels of government are committed to delivering services that specifically meet the needs of these neighbourhoods.
Immigration - Immigrants enrich the social, cultural and economic life of Nova Scotia. HRM is intent on creating a welcoming community and the province is now engaged in a new immigration strategy. It is appropriate that Canada, Nova Scotia and HRM coordinate their efforts to attract, integrate and retain immigrants to enhance HRM’s economy, cultural diversity and creative capabilities.
Entering into a formal Tripartite Agreement will require further discussion. While it will require further approvals from each level of government, it reflects a mutual understanding to pursue enhanced collaboration.
Integrated Community Sustainability plans are plans that will support the development of sustainable healthy and vibrant communities. In Nova Scotia, integrated community sustainability plans will build on, and enhance existing planning instruments such as municipal planning strategies and land use bylaws. Integrated Community Sustainability Plans will:
MUNICIPAL FUNDING AGREEMENT made as of _____________, 2005
BETWEEN:
HER MAJESTY THE QUEEN, in right of Nova Scotia, as
represented by the Minister of Service Nova Scotia and
Municipal Relations (the “Province”)
OF THE FIRST PART
- and -
THE MUNICIPALITY OF_______________, in the
Province of Nova Scotia (“the Municipality”)
OF THE SECOND PART
WHEREAS Canada and Nova Scotia wish, in partnership, to address the need of Municipalities for stable, predictable, long-term funding for Environmentally Sustainable Infrastructure; and
WHEREAS Canada and Nova Scotia have signed the Canada – Nova Scotia Agreement on the Transfer of Federal Gas Tax Revenues Under the New Deal for Cities and Communities, to allocate a portion of federal gas tax revenues for the benefit of Nova Scotia Municipalities; and
WHEREAS the Province recognizes the need to develop municipal infrastructure to maintain or enhance economic, social and cultural opportunity and well being, while protecting and improving the quality of our environment upon which the people and economies of Nova Scotia depend; and
WHEREAS the Province agrees to transfer to the Municipality a portion of federal gas tax revenues to be used by the Municipality for eligible expenditures for projects meeting the criteria, and upon the terms and conditions, contained herein; and
WHEREAS the Province agrees to provide such funds, as approved annually, to the Municipality upon receipt of funds from the Government of Canada as agreed to under Canada-Nova Scotia Agreement On The Transfer Of Federal Gas Tax Revenues Under The New Deal For Cities And Communities; and
WHEREAS the Municipality has agreed to accept these funds upon the terms and conditions contained herein;
NOW THEREFORE in consideration of the mutual terms and conditions hereinafter specified, the Parties agree as follows:
A capitalized term has the meaning given to it in this section unless the context clearly dictates otherwise.
“Agreement” means this agreement between the Province and the Municipality for the transfer of the federal gasoline tax.
“Annual Expenditure Report” means the annual report to be prepared and delivered by the Municipality to the Province, more particularly described in Schedule 4.
"Audit Report” means an audit report prepared, at the Municipality’s cost, by a Nova Scotia licensed auditor, more particularly described in Schedule 4.
“Canada” means the Government of Canada.
“Capacity Building Projects” means projects and activities that strengthen the ability of Municipalities to develop and implement Integrated Community Sustainability Plans, as more particularly described in Schedule 1.
“Capital Investment Plan” means a document created by the Municipality through a public process, providing a detailed understanding of anticipated investments into tangible capital assets, including environmentally sustainable infrastructure, that are considered "priorities" (along with a rationale).
"Eligible Costs" means those costs described in Schedule 2, incurred in respect of Eligible Projects.
"Eligible Projects" means Capacity Building Projects and Environmentally Sustainable Municipal Infrastructure (ESMI) Projects.
“Environmentally Sustainable Municipal Infrastructure (ESMI) Projects” means municipal infrastructure projects that:
"Federal-Provincial Agreement" means the Agreement entered into by Canada and Nova Scotia to allocate a portion of federal gas tax revenues to Nova Scotia Municipalities.
“Fiscal Year” means the period beginning April 1 of a year and ending March 31 of the following year.
“Funds” means the federal gas tax revenues made available pursuant to this Agreement.
“Integrated Community Sustainability Plans” means a long-term plan, developed in consultation with community members, that provides direction for the community to realize sustainability objectives it has for the environmental, cultural, social and economic dimensions of its identity, as more particularly described in Schedule 7.
“Minister” means the Minister of Service Nova Scotia and Municipal Relations.
"Municipal Base Amount" is $58 million dollars for Municipalities having a population greater than 250,000.
“Municipality” means a regional municipality, town or county or district municipality.
"Outcomes Report" means the report to be delivered by the Municipality to the Province and made available to the public, which reports on the outputs and outcomes of the use of the Funds, using the indicators set out in Schedule 5.
“Parties” means the Province and the Municipality.
"Village" means an incorporated village.
The following Schedules are attached and form part of this Agreement:
Schedule 1 – Eligible Project Categories
Schedule 2 – Eligible Costs
Schedule 3 – Municipal Requirements
Schedule 4 – Reporting and Audits
Schedule 5 – Outcome Indicators
Schedule 6 – Communications Protocol
Schedule 7 – Integrated Community Sustainability Plans
Schedule 8 – Funding Formula for the Municipality
The purpose of the Agreement is to:
The Province agrees to provide Funds to the Municipality in trust over the term of this Agreement in incremental payments generally in accordance with Schedule 8 subject to the following:
The Municipality agrees to accept the Funds provided by the Province and agrees to fully comply with this Agreement, including the following:
3.2.1. The Municipality agrees to provide to the Minister for each fiscal year of this Agreement:
3.2.2. The Municipality agrees to:
3.2.3. The Municipality agrees to the following additional terms and conditions:
4.1.1. The Municipality will, at its cost:
4.1.2. The Province or Canada may incorporate all or any part or parts of the said reports into any report that they may prepare for their own purposes, including any reports that may be made public.
4.2.1. Annual Expenditure Reports will be accompanied by certification by the Municipality that it has complied with this Agreement and an Audit Report.
4.2.2. The Municipality agrees to keep proper and accurate accounts and records, including invoices, statements, receipts and vouchers in respect of all Eligible Projects that receive Funds, for at least three years after termination of this Agreement and will, upon reasonable notice, make them available to the Province or to Canada for inspection or audit.
4.2.3. The Province may complete, and provide to Canada, an audit of any one or more Eligible Projects and the costs shall be paid by the Municipality.
4.2.4. The Province or Canada may request and the Municipality agrees to complete, at its cost, and provide to the Province or Canada, an audit of any one or more Eligible Projects.
4.2.5. The Municipality will share with the Province or Canada the results of any compliance or performance audit that it may carry out beyond the Audit Report that examines the use of Funds to a specific extent.
5.1. The Parties agree that the Province will enforce this Agreement if the Municipality does not comply with the terms and conditions of this Agreement and the methods of enforcement may include withholding of payment, reduction of payment, requiring the return of payment, or non-renewal of this Agreement. The Municipality will cooperate with any request made pursuant to this clause, within the time provided in the request, and any amount owed to the Province under this Agreement will constitute a debt due to the Province, which the Municipality will reimburse forthwith, on demand, to the Province.
5.2. Any dispute between the Province and the Municipality or any question of law or fact arising out of this Agreement shall be submitted to and determined by the Court having jurisdiction over this Agreement.
5.3. The rights, remedies and privileges of the Province under this Agreement are cumulative and any one or more may be exercised.
6.1. The Parties agree to give this Agreement a fair and reasonable interpretation and, when required, to negotiate with fairness and candor any modifications or alteration thereof for the purpose of carrying out the intent of this Agreement and or rectifying any omission in any of these provisions.
6.2. This Agreement shall continue in effect until March 31, 2015, and may be renewed thereafter in five-year increments if mutually agreed in writing. To facilitate efficient planning, any such renewal should be implemented before the expiry date. If this Agreement is not extended in writing beyond the termination date, all uncommitted Funds as of the termination date shall be returned to the Province by March 31, in the year following the date of termination.
6.3. If any portion of this Agreement is deemed to be illegal or invalid, then that portion of the Agreement shall be deemed to have been severed from the remainder of the Agreement and the remainder of the Agreement shall be enforceable.
6.4. This Agreement is binding upon the Parties and their successors.
6.5. The Parties agree that the laws of the Province of Nova Scotia will govern this Agreement.
6.6. The Parties agree that the rights and obligations set forth in sections 3.2, 4.1, 4.2, and 5.1 will survive expiry or termination of this Agreement.
6.7. Any notice, demand or other document required or permitted to be given under the terms of this Agreement shall be sufficiently given to the Party to whom it is addressed if personally delivered, sent by prepaid registered mail, sent by facsimile transmission, or by e-mail to the Minister at:
Service Nova Scotia and Municipal Relations
1505 Barrington Street, 14 North Maritime Centre
PO Box 216
Halifax, Nova Scotia
B3J 2M4
Fax : (902) 424-0581
E-mail : gorallne@gov.ns.ca
or to the Municipality at:
Municipal Building
__________________
___________, Nova Scotia
________
or to such address as either Party may furnish to the other from time to time.
7.1. Binding Obligations
Each Party declares to the other that the signing and execution of this Agreement was duly and validly authorized, and that each has incurred a legal and valid obligation in accordance with the terms and conditions of the Agreement.
7.2. No Benefit
No member of the House of Commons or of the Senate of Canada will be admitted to any share or part of any contract made pursuant to this Agreement or to any benefit arising therefrom.
7.3. No Agency
It is understood, recognized and agreed that no provision of this Agreement and no action by the Parties will establish or be deemed to establish a partnership, joint venture, principal-agent relationship, or employer-employee relationship in any way or for any purpose whatsoever between Canada, Nova Scotia and the Municipality, or between Canada, Nova Scotia and a Third Party.
7.4. No Authority to Represent
Nothing in this Agreement is to be construed as authorizing one Party to contract for or to incur any obligation on behalf of the other or to act as agent for the other. Nothing in this Agreement is to be construed as authorizing the Municipality or any Third Party to contract for or to incur any obligation on behalf of the Province or Canada or to act as agent for the Province or Canada.
7.5. Precedence
In the event of a conflict, the part of this Agreement that precedes the signatures of the Parties will take precedence over the Schedules.
7.6. Accounting Principles
All accounting terms not otherwise defined herein have the meanings assigned to them, and all calculations will be made and all financial data to be submitted will be prepared, in accordance with the generally accepted accounting principles (GAAP) in effect in Canada and in Nova Scotia. GAAP will include, without limitation, those principles approved or recommended from time to time by the Canadian Institute of Chartered Accountants, or any successor institute, applied on a consistent basis.
7.7. Amendments to the Federal-Provincial Agreement
If the Province and Canada amend the Federal-Provincial Agreement, the Province may require the Municipality to amend this Agreement to take the amendments into account.
7.8 Amendments to the Municipal Funding Agreement
This agreement may be amended from time to time on the written agreement of the Parties
The Parties have therefore executed this Agreement, each by its duly authorized representative(s), on the respective dates shown below.
HER MAJESTY THE QUEEN in right of the Province of Nova Scotia as Represented by the Minister of Service Nova Scotia and Municipal Relations | The Municipality as Represented by the Mayor/Warden |
Honourable Barry Barnet | |
______________________________ | _____________________________ |
and Municipal Clerk | |
Date _________________________ | |
Date ________________________ |
1) ESMI Projects include the following:
a) Public transit, e.g.:
b) Water, e.g.:
Drinking water supply; drinking water purification and treatment systems; drinking water distribution systems; water metering systems.
c) Wastewater, e.g.:
Wastewater systems including sanitary sewer systems; and separate storm water systems.
d) Solid waste, e.g.:
Waste diversion; material recovery facilities; organics management; collection depots; waste disposal landfills; thermal treatment and landfill gas recuperation.
e) Community Energy Systems, e.g.:
f) Active transportation infrastructure (e.g, bike lanes), local roads, bridges and tunnels for Municipalities that enhance sustainability outcomes.
2) Capacity Building includes the following activities:
Eligible Costs will be all direct costs which are in Canada’s opinion properly and reasonably incurred and paid by an Municipality under a contract for goods and services necessary for the implementation of an Eligible Project. Eligible Costs may include only the following:
1.1 Employee and Equipment Costs
In the case of Municipalities having a population less than 75,000 the out of pocket costs (not overhead) related to employees or equipment may be included in its eligible costs under the following conditions:
1.2 Administration Costs
That portion of Funds representing income earned, may be used to pay for administration costs.
Costs related to the following items are ineligible costs:
Where Eligible Project asset is sold, leased, encumbered or disposed of: |
Repayment of contribution |
Within 2 Years after Eligible Project completion |
100% |
Between 2 and 5 Years after Eligible Project completion |
55% |
Between 5 and 10 Years after Eligible Project completion |
10% |
1.1 Annual Expenditure Report
1.1.1 The Annual Expenditure Report will report on:
1.1.2 The Annual Expenditure Report will also indicate in a narrative the progress that the Municipality has made in meeting its commitments and contributions.
1.1.3 The Annual Expenditure Report will also include the following information:
A listing of all Eligible Projects that have been approved for funding, indicating the location, investment category, amount and identity of all sources of funding, nature of the investment and expected outcomes, as identified in Schedule 5.
1.2 Outcomes Report
1.2.1 The Outcomes Report will report on the cumulative investments made, including information on the degree to which these investments have actually contributed to the objectives of cleaner air, cleaner water and reduced greenhouse gas emissions.
2.1 The Audit Report, which includes the results of financial and compliance audits, will provide an opinion as to whether all of the information contained in the Annual Expenditure Report is complete and accurate and whether the Municipality has complied with all material provisions of this Agreement.
Annual |
Cumulative |
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01/04/20xx – 31/03/20xy |
Date of signing –31/03/20xy |
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Municipal Name |
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Opening balance of unspent funding |
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xxx |
Received from Province |
xx |
xxx |
Spent on Eligible Projects |
(xx) |
(xxx) |
Closing balance of unspent funding |
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xxx |
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The impact of the use of the Funds will be measured through a set of core indicators linked to the following outcomes and outputs:
Outcomes:
Outputs:
Canada and Nova Scotia have agreed that Canadians have a right to transparency and public accountability, which is best served by full information about the benefits of the New Deal for Cities and Communities.
This communications protocol establishes the principles and practices that will guide all announcements and events related to this Agreement, funding to Municipalities under this Agreement and the New Deal. Communications activities may include, without limitation, major public events or announcements, or communications products such as speeches, press releases, websites, advertising, promotional material or signage.
Canada and Nova Scotia have agreed that:
Canada agreed that:
Nova Scotia agreed that:
The Municipality agrees that:
General
Integrated Community Sustainability plans are plans that will support the development of sustainable healthy and vibrant communities. In Nova Scotia, integrated community sustainability plans will build on and enhance existing planning instruments such as municipal planning strategies and land use bylaws. Integrated Community Sustainability Plans will:
This page contains an outline of the proposed maximum Funds to be paid to Municipality.
Payment of any Funds under this program is subject to:
The Funding Formula on which Funds are based may be amended at the request of the Union of Nova Scotia Municipalities after two years. A change in this Schedule does not alter any other term of this Agreement.
Year 1 Amount to be added
Year 2 Amount to be added
Year 3 To be determined
Year 4 To be determined
Year 5 To be determined
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