Federal gas tax funding will definitely be flowing into local municipalities for four more years.

Officials from Ottawa and Queen’s Park recently announced they have signed off on a deal to extend the Ontario Federal Gas Tax Fund agreement until 2014.

“This predictable funding will help municipalities improve their infrastructure today and in the future,” said Canada’s Transport and Infrastructure Minister John Baird in a news release.

“Investing in the modernization of infrastructure such as roads, public transit systems, water and wastewater treatment facilities helps to create jobs for hard working Canadians and boosts our economy.”

The agreement guarantees Ontario communities will see $2.9 billion pumped into their coffers from 2010 to 2014, as promised by the Conservative government in its 2007 budget.

Locally the funding, which is distributed based on population, translates into $6,697,804 for Dufferin County over four years while Orangeville, as the largest lower-tier municipality, will receive $3,312,852 during that same period.

“I don’t know what we’re going to do with it yet,” said Orangeville’s treasurer Wayne Church.  “We’re currently using the funding we’re getting essentially to pay for the infrastructure debt that we incurred a couple of years ago.

“This could broaden that and extend it a little bit to keep that particular thing off the tax levy or we could be looking at some road improvements … It’s fairly new news, and it’s fairly significant. I think we’ll have to do some noodling before we come to any conclusions but it’s always nice to get almost a million bucks a year for … four years.”  

Mono meanwhile will pull in $870, 016; Shelburne gets $633,533; Amaranth, is set to receive $473,089; Mulmur is getting $408,427; Melancthon is being handed $356,201 and East Luther Grand Valley will get $349,925.