Gas tax changes good news story, Fedeli says

Mayor Vic Fedeli speaks at a news conference held Thursday by Nipissing MPP Monique Smith. Photo by Phil Novak, BayToday.ca.

North Bay will now be able to use gas tax money for operating expenses instead of just capital expenditures, Nipissing MPP Monique Smith announced Thursday.

North Bay received $625,067 from the gas tax revenue last year and will use those funds to build a bus terminal at Wyld and Oak Streets.

But the city had told Smith there was only so much it could do spending gas tax money on capital expenditures for public transit and that it could better use its allocation for operating costs.

Smith lobbied the provincial Transportation Ministry for two years about the matter, resulting in changes that will now allow the city to use up to 70 per cent of gas tax dollars for transit operations.

North Bay Mayor Vic Fedeli called Smith’s announcement a “good news story” for the city.

The city will receive $897,000 for 2006, which means up to $628,000 of that can go towards operations.

“It’s an ongoing source of revenue, and now you’re talking serious money that we can use to reduce the tax bill,” Fedeli said.