The Yukon became the first territory and third jurisdiction in the country this morning to sign a deal with the federal government for the transfer of the federal gasoline tax to communities.

'Getting to this point was no easy task,' territorial Community Services Minister Glenn Hart said at the 9 a.m. announcement. The deal with the federal government had been reached 20 minutes earlier.

Under the agreement, a total of $37.5 million will be coming to the Yukon over the next five years from the federal gas tax. After the fifth year, the territory will receive $15 million annually.

The funds will be divided up, with incorporated municipalities receiving 68 per cent, Yukon first nations receiving 25 per cent and unincorporated communities getting seven per cent.

That arrangement was agreed to last Thursday by the territory, Association of Yukon Communities (AYC) and Council of Yukon First Nations (CYFN) at approximately 12:30 p.m., just prior to the federal budget non-confidence vote the Liberal government survived.

'Like all negotiations, the issues that we're dealing with are trying to get down to the allocation process and how are we going to distribute the funding out of the program,' Hart explained when questioned on some of the difficulties faced in coming to an agreement.

'I think it was basically a case of all parties having to realize each other's situation in order for us to get a deal.'

Both Hart and AYC president Doug Graham praised the CYFN for its quick work in negotiations after becoming involved in the Yukon distribution very recently.

At the AYC's annual general meeting in Faro earlier this month, Graham said it had only been a week since the federal government insisted the CYFN be party to the agreement. Prior to that, the potential deal had been strictly between the AYC and the territory.

He had then pointed out there was a separate pot of money from the gas tax set aside for first nations throughout the country and didn't know why the CYFN would be included as part of the Yukon deal.

Under the federal plans, the three territories will have first nations included in their agreements, while first nations in southern Canada will have a separate pot of money.

This morning, Graham said he hadn't been aware of the CYFN concerns that when Yukon first nations are included in a larger Canadian fund, they don't get a big enough sum of money.

'We know that feeling,' Graham said. 'It happens to us all the time. So we're happy to share it with them.'

Acting CYFN Grand Chief Eric Morris said former grand chief Ed Schultz worked hard to ensure Yukon first nations were represented in the gas tax revenue.

Yukon first nations often get a smaller portion due to the location and population in national funding arrangements.

It's a remarkable achievement for the parties to come together and reach an agreement this early, Yukon MP Larry Bagnell said at the signing ceremony.

How the funds will flow to each of the first nations are part of the details which still have to be worked out, the grand chief commented. Chapter 19 of the Umbrella Final Agreement for first nations in the territory will help in determining the allocation of funds.

'I think some thought has been given to coming forth with community plans or something that states what the initiatives are going to be at the community level,' he said.

In unincorporated communities, the money for various infrastructure funds will flow through the territory, Hart explained.

'There will be applications to ourselves, as we will make some applications on behalf of those communities,' he said, adding the territory is often responsible for those areas.

'I guess I'm the unofficial mayor of many of those places,' he said.

The 68 per cent going to municipalities will be divided up based on a decision by the AYC.

After the signing, Graham said the board of the AYC will be looking at how to divide up the portion at its next meeting. The 68 per cent is much lower than the 80 per cent municipalities had been expecting from the federal gas tax.

'We have some changes to make, but it won't be difficult,' he said. 'And we'll be ready in September with a formula.'

That will determine how much Whitehorse and other communities will get. Graham, also a Whitehorse city councillor, said it's realized Whitehorse can't take its share on a population basis as has been done in some of the provinces.

'We'll be taking less than 65 or 67 per cent, which is our population in the territory,' he said. 'But our good part is we have two first nations within our municipal borders, or largely within our municipal borders, so on joint projects, we'll be able to work with them, with both first nations, so that's really good.'

It means first nations will have a say in major infrastructure developments such as possible water filtration, Graham said.

That will also extend to other communities throughout the territory.

Communities both municipal and first nation will be working to come up with long-term plans to guide where the funds should be going.

While Whitehorse already has an Official Community Plan in place and a five-year capital budget, Graham said the city will be taking a second look at those documents and involve the Ta'an Kwach'an and Kwanlin Dun first nations in its plans.

Morris also spoke of joint plans between communities being done.

The Ta'an Kwach'an Council already has a proposed sustainable plan that has yet to go back to the community.

'It's just the different process and some of the things we foresee as activity just from conversation from citizens,' Ta'an chief Ruth Massie said following the signing ceremony.

'So now that we have it together looking like a plan that you can read, we have to go back to the community and (ask), Is this what you really want?'' she said.

The first nation doesn't have a housing program, but is looking at its land selections throughout the city for a potential program. It is also working on its Lands Act and the community selection program.

'So we're actually looking at four levels of planning to bring it all together,' Massie said. Being in the city of Whitehorse will also mean general laws application applies, which will mean working with the city, she added.

For smaller communities which don't have community plans or five-year capital budgets in place, Graham suggested it will mean work to come up with those documents.

'And that's one of the things we haven't talked about yet at AYC; is how we're going to work with those communities,' Graham said. 'So are we going to bring on additional people at the AYC office that we'll be able to provide to communities to develop sustainable plans? We don't know.'

The technical details of the program will see the money fit in with the long-term visions for the communities, Bagnell told those gathered for the signing.

Though there will be work to do on creating long-term plans for communities, Graham said, there are already ideas of where the additional funds will go.

'Most of them are talking about water, sewer and streets and sidewalks and things like that,' he said.

Funding from the gas tax revenue can't be used for developing new lots, but the infrastructure needed for servicing those lots can be built, Graham said.

'We were looking at the same kind of thing in Whitehorse,' he said of the capital city. 'We can build a water treatment plant but we couldn't use the money to develop the lower bench (area of Porter Creek).'

Morris said one of the biggest expenses in subdivisions for first nations is the water and sewer systems.

'Oddly enough, there are still some communities that don't actually have running water,' he said in an interview after the signing.

There are also green energy initiatives underway in some communities, he pointed out.

'There are some significant things that are possible,' Morris said during a speech prior to the ceremonial signing.

Graham recalled the deal has been in the works for a long time.

'We were in Hamilton (Ont.), I think it was three or four years ago, almost to the day when Paul Martin announced a new deal for Canadian municipalities and the very next day he was fired as Finance minister by the then-prime minister (in June 2002),' Graham said. 'So we've been looking forward to this day ever since that time.'

It's unknown how much the administration of the program will cost the territory, but Hart said it will be absorbed with other programs the territory administers.