Bill 2354 — An Act Respecting Towns and Local Service Districts (50th General Assembly, 2nd Session)
Bill 2354
Newfoundland and Labrador — Bills
Second
Session, 50th General Assembly
Charles III, 2023
BILL 54
AN ACT RESPECTING
TOWNS AND LOCAL SERVICE DISTRICTS
Received
and Read the First Time ................................................................
Second
Reading ............................................................................................
Committee .....................................................................................................
Third
Reading ...............................................................................................
Royal
Assent .................................................................................................
HONOURABLE JOHN
HAGGIE
Minister of
Municipal and Provincial Affairs
Ordered to be printed by
the Honourable House of Assembly
EXPLANATORY NOTES
This Bill would enact the Towns and Local Service
Districts Act and repeal and replace the Municipalities
Act, 1999 .
The Bill would incorporate many of the provisions of the
Municipalities Act, 1999 and would
also
prescribe the purposes of
towns;
give towns the powers of a
natural person in exercising their authority under the Act;
give towns the broad powers to
pass by-laws respecting matters prescribed in the Act;
prohibit towns and local
service districts from operating for profit;
give the minister the
discretion to order a feasibility report before making a recommendation to the
Lieutenant-Governor in Council to incorporate a town, amalgamate towns,
establish or alter the boundaries of towns, or disincorporate a town instead of
requiring that a feasibility report be ordered;
prescribe the criteria under
which town council meetings may be closed to the public;
require that towns impose a
real property tax;
allow towns to establish
classes and subclasses of real property for the purposes of establishing a real
property tax and establish classes and subclasses of businesses for the purpose
of calculating business tax;
require that towns set the real
property tax rate as a percentage of the assessed value of the real property or
a base amount plus a percentage of the assessed value of the real property;
allow towns to apply tax
discounts for charitable and community organizations and persons who
demonstrate financial hardship;
authorize a town to allow taxes
to be paid in instalments;
allow towns to impose a
business tax instead of requiring that a town impose a business tax;
allow towns to impose a tourist
accommodation tax;
require that towns provide
waste collection and removal, fire protection, and snow clearing and
maintenance of local roadways;
allow the minister to prescribe
minimum standards for services provided by a town;
require that elections for
local service district committees be held every 4 years on the date that the
general election under
section 5 of the Municipal
Elections Act is held;
prescribe the criteria under
which a local service district committee meeting may be closed to the public;
authorize the minister to
require local service districts to prepare audited financial statements;
require local service districts
to obtain insurance for all buildings, equipment and other assets;
prohibit the chair of a local
service district from holding the office of fire chief in a volunteer fire
department in the local service district;
require that a local service
district establish and maintain a system for garbage collection, removal and
disposal or contract for the garbage collection, removal and disposal;
prescribe the powers and duties
of inspectors for the administration and enforcement of the Act;
create a lien on real property
where a town council orders a person to remediate the real property or demolish
or remove structures from the real property and the person fails to comply with
the order and the town carries out the order and incurs expenses in relation to
the carrying out of the order;
require that the Act and the
regulations be reviewed every 10 years; and
incorporate gender-neutral
language.
A BILL
AN ACT RESPECTING TOWNS AND LOCAL SERVICE
DISTRICTS
Analysis
Short title
Interpretation
PART
PURPOSES AND POWERS
Purposes of town
Natural person powers
Corporation
Broad
interpretation of powers of town
By-laws - mandatory
By-laws - discretionary
Restrictions re:by-laws
By-laws - general powers
By-laws - permits, licences and
approvals
Adoption of by-laws
PART
INCORPORATION AND RESTRUCTURING OF TOWNS
Existing towns
Town
Feasibility report
Notice of intent
Name of town
Assessment of needs
Order respecting assets and liabilities
Publication of orders
Reduction or increase in area
Taxes on amalgamation
PART
III
TOWN COUNCIL
Establishment of first town council
Number of councillors
Wards
First election
Mayor's election
Election of mayor and deputy mayor
Vacancy re: mayor
Mayor status
Powers and duties of mayor
Powers and duties of deputy mayor
Councillor duties
Remuneration and expenses
Delegation
Presiding officer
First meeting
Actions and decisions of town council
Frequency of meetings
Open meetings
Closed meetings
Meeting by electronic means
Quorum
Voting
Vacancy of office
Rules of procedure
Committees
Advisory committees
PART
TOWN COUNCIL MATTERS
Plebiscites
Inspection of documents
Copies of documents
Authentication of documents
Public procurement
Agent
Joint ventures
Private services
Expropriation
PART
STAFF
Town manager
Duties of town manager
Relationship between town council and
town manager
Town manager attendance at meetings
Use of employees
Expenditures town manager
Emergency expenditures
Recommendations for expenditures
Town clerk
Duties of town clerk
Town clerk attendance at meetings
Departments
Report of disagreement
Employee positions
Salaries
Suspension
Dismissal
Retirement
Town employees
Bonding
Pensions
Pension portability
Group insurance
Training
PART
FINANCE
Financial year
Bank account
Budget
Contents of budget
Revised budget
Expenditures in excess of budget
Reserve funds
Powers of expenditure
Ministerial budget approval
Books of account
Financial statements
Appointment of auditor
Appointment of auditor by minister
Extension or waiver of audit
Auditor's powers
Auditor's report
Interim audit report
Current account borrowing
Long-term borrowing
Currency
Unauthorized expenditure
Debenture certificate
Signatures
Guaranteed loans expenditures
PART
VII
TAXES AND FEES
Division
Taxation
Imposition of taxes
Effect of extensions
First year
Duration
Tax payment
Interest on arrears
Discount allowed
Publication
Proof of tax
Exemption, remission and deferment
Tax agreements
Division
Real
Property Tax
Real property tax
Rate of tax
Representative capacity
Occupier considered owner
Tax exempt property
Tenant of tax exempt property
Supplementary assessment
Appeals of assessments
Division
Business
Tax
Business tax
Gross revenue
Classes and subclasses of businesses
Division
Direct
Sellers Tax
Direct sellers tax
Division
Tourist
Accommodation Tax
Tourist accommodation tax
Division
Fees
Fee for service
Water and sewer fee
Method of calculating water and sewer
fees
Publication
Interest on arrears
Division
Local
Improvement Fees
Local improvements
Local improvement by-law
Notice of local improvement
Public hearing
Decision of council
Agricultural land
Equitable application
Local improvement fee
Interest on arrears
Division
Liens
and Arrears
Lien
Arrears certificate
Notice of arrears
Right of mortgagee, judgment creditor
and lien holder
Uncollectable debts
Notice of taxes and fees status
Division
Arrears
Sales
Arrears sale
Notice of arrears sale
Arrears sale by public auction
Further notice of arrears sale
Arrears sale set aside
Proceeds of arrears sale
Failure to pay
Future assessments
Vesting of real property following
arrears sale
Division
Enforcement
of Payment of Taxes and Fees
Seizure of rent
Disconnection of service
Collection as civil debt
PART
VIII
SERVICES
Mandatory services
Fire department
Fire spread prevention
Right re: traffic
Power to enter building
Other fire department
Prohibition
Minimum standards
Providing services outside town
Acquisition of water and sewer systems
General right of entry
Town council to give notice
Compensation for injurious affection
Ownership of highways
Private roads
Recreational facilities
Names and numbering
Municipal service delivery corporation
PART
CONTROLS
Building prohibition
Water and sewer prohibition
Storm drainage
Signs
Private roads
Removal of projections
Construction
Parking lots
Heritage buildings, structures and lands
Sale of property valued at less than
$500
Sale or lease of property valued at $500
or more
Disposition of property valued at $500
or more
Binding requirements
Adverse possession abolished
Business improvement areas
Economic development
State of emergency
PART
APPOINTMENT OF COMPTROLLER, ADMINISTRATOR OR RECEIVER
Appointment of comptroller
Expenditures where comptroller
Ministerial direction
Appointment of administrator
Dismissal of council
Powers of administrator
Duty to administrator
Budget
Employees and officers
Realization of assets
Books of account and records
Status of by-laws and policies
Restoration of status
Receivership
Effect of order
Duty to receiver
Powers of receiver
Books of account and records
Application of money
PART
LOCAL SERVICE DISTRICTS
Definitions
Existing local service districts
Local service district
Corporation
Status of local service district
Publication of order
Local service district committee
General elections
By-election
Composition of committee
Qualification of members
Appointment of members
Composition of committee after
amalgamation
Composition of committee after
alteration or annexation
Term of office
Vacancy of office
First meeting
Meetings required
Closed meetings
Presiding officer
Quorum of committee
Decision on motion
Annual meeting of residents
Special meeting of residents
Quorum of residents
Presiding officer
Voting
Financial year
Borrowing powers
Budget
Audited financial statements
Records
Bank account
Insurance
Inspection of documents
Staff
Volunteer fire department
Signature on deeds and documents
Appointment of comptroller
Appointment of administrator
Appointment of receiver
Mandatory garbage collection and removal
Services
Fee for service
Fee collection methods
Name and numbering
Representation
Expropriation
Public procurement
Public works by committee
By-laws
PART
XII
WASTE DISPOSAL AREAS
Definitions
Powers, duties and functions of minister
Waste disposal area
Rates
Committee
Franchise agreement
Powers and duties of committee and
franchise holder
Use of waste disposal site
Binding requirements
Notice of proposal
Prohibition against removal of waste
PART
XIII
ENFORCEMENT
Division
By-Law Enforcement Officers
By-law enforcement officers
Division
Inspections
Inspectors
Powers of inspectors
Order of inspector
Contravention of Act suspected
Telewarrant
Division
Removal
of Vehicles
Removal of vehicles
Division
Council
Orders
Council orders
Appeal
Division
Violation
Notices
Violation notices
Issuance of summons re: contravention of
by-laws
Division
Offences
and Penalties
Offences
Penalty
Prosecutions
PART
XIV
GENERAL
Publication
Service
No liability
Immunity for liability in nuisance
Orders
Fees and forms
Statutory review
PART
REGULATIONS
Lieutenant-Governor in Council
regulations
Ministerial regulations
PART
XVI
TRANSITIONAL
Real property tax
Water and sewer fee
Licences, permits and approvals
Regulations, orders, by-laws and
decisions
Contracts and agreements
PART
XVII
CONSEQUENTIAL AMENDMENTS, REPEAL AND COMMENCEMENT
SNL2015 cA-1.2 Amdt.
SNL2021 cA-1.001 Amdt.
SNL2010 cA-9.1 Amdt.
SNL2006 cA-18.1 Amdt.
RSNL1990 cB-8 Amdt.
RSNL1990 cC-15 Amdt.
RSNL1990 cC-16 Amdt.
SNL2001 cE-5.2 Amdt.
SNL2022 cE-7.03 Amdt.
SNL2008 cE-9.1 Amdt.
SNL2002 cE-14.2 Amdt.
RSNL1990 cE-19 Amdt.
SNL2008 cF-11.01 Amdt.
SNL1996 cF-11.1 Amdt.
RSNL1990 cG-3 Amdt.
RSNL1990 cH-3 Amdt.
RSNL1990 cH-4 Amdt.
SNL2000 cI-1.1 Amdt.
SNL2004 cL-3.1 Amdt.
SNL1991 c36 Amdt.
SNL2005 cL-24.2 Amdt.
SNL1995 cM-20.1 Amdt.
SNL2021 cM-20.01 Amdt.
SNL2001 cM-20.2 Amdt.
SNL2012 cM-25 Amdt.
SNL2021 cO-5.1 Amdt.
SNL2001 cO-7.1 Amdt.
SNL2022 cP-3.02 Amdt.
SNL1995 cP-31.1 Amdt.
SNL2016 cP-41.001 Amdt.
SNL2012 cR-8.1 Amdt.
SNL2009 cR-15.01 Amdt.
RSNL1990 cS-15 Amdt.
RSNL1990 cS-16 Amdt.
SNL2005 cS-16.2 Amdt.
SNL2007 cS-34 Amdt.
SNL1992 cT-0.1 Amdt.
SNL2000 cU-8 Amdt.
RSNL1990 cV-5 Amdt.
SNL2002 cW-4.01 Amdt.
SNL2022 cW-11.1 Amdt.
RSNL1990 cY-1 Amdt.
NLR 74/10 Amdt.
NLR 26/01 Amdt.
NLR 59/22 Amdt.
NLR 41/12 Amdt.
NLR 33/18 Amdt.
NLR 78/99 Amdt.
NLR 85/07 Amdt.
NLR 73/11 Amdt.
SNL1999 cM-24 Rep.
Commencement
Be it enacted by the Lieutenant-Governor and
House of Assembly in Legislative Session convened, as follows:
Short title
1. This
Act may be cited as the Towns and Local
Service Districts Act.
Interpretation
(1) In this Act
(a) "accommodation" means
(
i) a building, part of
a building or group of buildings containing one or more units and includes
cabins, cottages and other permanent structures,
(ii) land maintained as
grounds for tents, trailers, recreational vehicles or other temporary or
seasonal structures,
(iii) a boat, or
(iv) any other real or
personal property prescribed in the Tourist
Accommodations Regulations ;
(b) "administrator" means a person
appointed under
section 200 or 255;
(c) "arrears sale" means the sale of
real property by a town to recover unpaid real property taxes, water and sewer
fees or local improvement fees in relation to the real property;
(d) "business" includes the following,
whether or not it is for profit:
(
i) a commercial, merchandising or industrial
activity or undertaking,
(ii) a profession, trade, occupation, calling or
employment,
(iii) an activity which provides goods or services,
and
(iv) a credit union, co-operative, corporation,
sole proprietorship or association of persons;
(e) "business tax" means a tax referred
to in
section 125;
(f) "by-law enforcement officer" means a
person appointed under
section 278;
(g) "city" means
(
i) the City of St. John's,
(ii) the City of Corner Brook, and
(iii) the City of Mount Pearl;
(h) "comptroller" means a person
appointed under
section 197 or 254;
(i) "councillor" means an elected member
of a town council, including the mayor and deputy mayor;
(j) "department" means, unless the
context indicates otherwise, the department presided over by the minister;
(k) "economic development" means any
activity that a town may undertake to expand or maintain the town's tax base;
(l) "election" means a general election, by-election or special election held
under the Municipal Elections Act ;
(m) "emergency" means a real or
anticipated event or an unforeseen combination of circumstances which poses
either
(
i) an imminent danger to public safety, or
(ii) an imminent danger of serious harm to property
or the environment;
(n) "former Act" means the Municipalities Act, 1999 ;
(o) "highway" means a highway as defined in the Highway Traffic Act ;
(p) "Inuit community government" means Inuit
Community Government as defined in the Labrador Inuit Land Claims Agreement in
the
Schedule to the Labrador Inuit Land
Claims Agreement Act ;
(q) "local improvement fee" means a fee
imposed by a town council in accordance with
section 135;
(r) "local roadways" means roadways and
parking lots that are either
(
i) under the jurisdiction of, owned by or
otherwise vested in a town, or
(ii) maintained by a town;
(s) "local service district" means a geographical area
incorporated or continued as a local service district under this Act or the
corporation, as the context requires;
(t) "minister" means the minister responsible for the administration of this Act
under the Executive Council Act ;
(u) "municipal service delivery
corporation" means a corporation incorporated
under the Corporations Act for the purpose described in
section 179;
(v) "off-road vehicle" means off-road
vehicle as defined in the Off-Road
Vehicles Act ;
(w) "parking lot" includes a parking
garage;
(x) "real property" means
(
i) land or an interest
arising from land, and includes land under water,
(ii) land and buildings,
structures, improvements, building service systems and storage facilities and
fixtures erected or placed upon, in, over or under land or affixed to land,
(iii) a building that is
erected on land under a lease, licence or permit, but does not include the land
upon which the building is erected, and
(iv) a mobile home or
trailer that is adopted as a residence, shop, office or for another similar
use;
(y) "receiver" means a person appointed
under
section 210 or 256;
(z) "regional service board" means a regional service board established under the Regional
Service Boards Act, 2012;
(aa) "remuneration" includes contributions by a town to a pension plan for councillors;
(bb) "ride-sharing service" means "ride-sharing service" as defined
in the Highway Traffic Act ;
(cc) "short-term rental" means the provision of an accommodation for compensation to an
individual or group of individuals for overnight lodging for a period of 30
days or less;
(dd) "tourist accommodation" means an
accommodation that is offered for short-term rental to the travelling or
vacationing public and is registered under the Tourist Accommodations Act ;
(ee) "town" means a geographical area incorporated or continued as
a town under this Act or the corporation, as the context requires, but does not
include an Inuit community government;
(ff) "town clerk" means a person
appointed under
section 66;
(gg) "town council" means the councillors
of a town;
(hh) "town manager" means a person
appointed under
section 58;
(ii) "unincorporated area" means an area
of the province not incorporated as a city, town, local service district or
Inuit community government; and
(jj) "water and sewer fee" means a fee
imposed by a town in accordance with
section 131.
(2) All docks, quays,
wharves and structures touching the boundaries of a town and all ships attached
either permanently or temporarily to a dock, quay, wharf, ship or structure
touching the boundaries of a town shall be considered to be within and to be a
part of the town.
PART I
PURPOSES AND POWERS
Purposes of town
3. The
purposes of a town are
(
a) to provide good government;
(
b) to provide services, facilities or other
things necessary or desirable for all or part of the town;
(
c) to develop and maintain a healthy, safe and
viable town; and
(
d) to foster the economic, social and
environmental well-being of the town.
Natural person
powers
(1) A
town has the capacity, rights, powers and privileges of a natural person except
to the extent they are limited by this Act or any other Act.
(2) A town only has the capacity, rights, powers
and privileges of a natural person in respect of town purposes.
(3) The powers of a town are vested in and shall
be exercised by its town council.
Corporation
5. A
town is a corporation and shall not operate for profit.
Broad
interpretation of powers of town
6. Recognizing that a town is a responsible and accountable
level of government, the powers of a town under this or any other Act shall be
interpreted broadly in order to provide broad authority to the town council to
enable it to govern the affairs of the town as it considers appropriate and to
enhance the town councils ability to respond to issues in the town.
By-laws - mandatory
(1) A town council shall adopt by-laws for town purposes respecting the following
matters:
(
a) rules of procedure at town council meetings;
(
b) prohibiting and controlling the use of a
source of water that the town council considers to be dangerous to public
health;
(
c) controlling and respecting the design,
construction, alteration, reconstruction, minimum lot size and occupancy of
buildings and classes of buildings and the demolition, removal and relocation
and maintenance of buildings;
(
d) arrears sales;
(
e) subject to the Fire Protection Services Act, the prevention of fire in a town and
the inspection of buildings in a town for fire protection services; and
(
f) where the town has a fire department, the
control and management of the fire department and the participation of the fire
department in emergency activities not related to firefighting or fire
prevention.
(2) Notwithstanding paragraph (1)(a), the minister
may make regulations prescribing matters required to be included in the town's rules
of procedure referred to in paragraph (1)(
a) and the rules of procedure shall
comply with the regulations made by the minister.
(3) In making by-laws under paragraph (1)(c), a
town council
(
a) shall adopt
(
i) the National Building Code of Canada and supplements or amendments to that code ,
(ii) the National Energy Code of Canada and supplements
or amendments to that code, and
(iii) the National Energy Code of Canada for
Buildings and supplements or amendments to that code;
and
(
b) may adopt standards
which exceed the requirements of the codes referred to in paragraph (
a) and their
supplements and amendments.
(4) In making by-laws under paragraphs (1)(
e) and
(f), a town council may adopt
(
a) the National Fire Code of Canada and
supplements or amendments to that code; and
(
b) standards which
exceed the requirements of that code and its supplements and amendments.
(5) Where there are supplements or amendments to a
code referred to in subsection (3), the town council shall adopt the
supplements and amendments not later than 6 months after the supplements or
amendments are published.
(6) Where a town council adopts the code under
subsection (4) and there are supplements or amendments to the code, the town
council shall adopt the supplements or amendments not later than 6 months after
the supplements or amendments are published.
(7) The codes referred
to in subsections (3) and (4) and the supplements and amendments to the codes
adopted under subsections (5) and (6) shall be kept at the offices of the town
council and shall be available for inspection by members of the public.
(8) Notwithstanding
subsections (3) and (4), the minister may, in writing, exempt a town from the
application of a portion or portions of the codes referred to in subsection
(3) or (4) or the supplements or amendments to the codes referred to in those
subsections.
By-laws - discretionary
(1) A town council may adopt by-laws for town purposes respecting the following
matters:
(
a) subject to the Public Health Protection and Promotion Act , safety, health and
well-being of people and the protection of people and property;
(
b) public facilities, public works, utilities and
improvements on public and private land;
(
c) services and programs provided by or on behalf
of the town, including establishing fees for providing the services and
programs;
(
d) people, activities and things in, on or near a
public place or a place that is open to the public;
(
e) businesses, business activities and persons
engaged in business;
(
f) nuisances, dangerous or unsightly property, pollution
and waste in or on public or private property;
(
g) subject to the Highway Traffic Act , the management and control of local roadways,
sidewalks and property adjacent to local roadways and sidewalks;
(
h) subject to the Highway Traffic Act and the Off-Road
Vehicles Act , the use of off-road vehicles on or off local roadways and the
regulation of pedestrians;
(
i) subject to the Highway Traffic Act and the Motor
Carrier Act , local transport and transportation systems including carriers
of persons or goods, taxis and other forms of public transportation but not including vehicles used for a
ride-sharing service ;
(
j) parking lots, parking and other non-moving use
of local roadways;
(
k) subject to the Animal Health and Protection Act , domestic, feral, exotic and wild
animals and activities in relation to them;
(
l) vegetation, including trees, and activities
related to vegetation;
(
m) subject to the Environmental Protection Act and the Water Resources Act , protection of the natural environment;
(
n) parks and recreation;
(
o) designation and protection of heritage
property and practices and the commemoration of historic events and people;
(
p) cemeteries and crematoriums;
(
q) the enforcement of by-laws made under this or
any other Act; and
(
r) other matters prescribed in this Act.
(2) By-laws adopted by a town council under
paragraph (1)(
j) shall meet or exceed the requirements of the Highway Traffic Act in relation to
parking lots, parking and other non-moving use of local roadways.
(3) Where a town council adopts a by-law under
paragraph (1)(j), the provisions of the Highway
Traffic Act do not apply in relation to parking lots, parking and other
non-moving use of local roadways in the town that are
subject to those by-laws.
(4) A penalty prescribed in a by-law under
paragraph (1)(
j) shall be equal to the amount of the penalty prescribed in the Highway Traffic Act and the regulations
under the Highway Traffic Act for the
same contravention under that Act and regulations.
Restrictions re:by-laws
(1) A
by-law of a town
(
a) shall be consistent with town purposes; and
(
b) shall not conflict with this Act or any other Act
or regulation of the province or of Canada.
(2) A by-law of a town applies only inside the
territorial limits of the town unless a provision of this or another Act
provides otherwise.
By-laws - general
powers
10. Without
limiting the generality of sections 7 and 8, a by-law made under those sections
respecting a matter may
(
a) regulate, control or prohibit activity; and
(
b) deal with developments, activities,
industries, businesses or things in different ways, divide each of them into
classes, distinguish between the classes and deal with each class in different
ways.
By-laws - permits,
licences and approvals
11. Without
limiting the generality of sections 7 and 8, a by-law made under those sections
respecting a matter may
(
a) provide for a system of licences, inspections,
permits or approvals, including any of the following:
(
i) establishing fees for the activity authorized,
(ii) establishing fees that are higher for persons who
or businesses that do not reside or maintain a place of residence in the town,
(iii) prohibiting any development, activity,
industry, business or thing until a licence, permit or approval has been
granted or an inspection has been performed,
(iv) setting out the conditions that shall be met
before a licence, permit or approval is granted or renewed, the nature of the
conditions and who may impose them,
imposed on any licence, permit or approval, the nature of the terms and
conditions and who may impose them,
(vi) providing for the duration of licences,
permits and approvals and their suspension or cancellation for failure to
comply with a term or condition of the licence, permit or approval or for any
other reason specified in the by-law, and
(vii) authorizing the undertaking of remedial action
and the charging and collecting of the costs of remedial action, for failure to
pay a fee or comply with a term or condition of the licence, permit or approval
or for any other reason specified in the by-law;
(
b) require a licence,
permit or approval in order to take any action respecting the matter; and
(
c) prohibit the taking of
any action without a licence, permit or approval if a licence, permit or
approval is required.
Adoption of
by-laws
(1) By-laws tabled by a town council under this Act shall
be adopted by a majority vote of the councillors in attendance at the meeting
at which the by-laws are tabled.
(2) A copy of all
by-laws adopted by a town council and certified by the town clerk shall be
(
a) available for public
viewing during the normal business hours of the town; and
(
b) posted on the town's website, where the town
has a website.
PART II
INCORPORATION AND RESTRUCTURING OF TOWNS
Existing towns
13. A town continued or incorporated under the former Act is
continued as a town under this Act.
Town
(1) The Lieutenant-Governor in Council may, by order, on the
recommendation of the minister
(
a) incorporate an area
in the province as a town;
(
b) amalgamate towns;
(
c) annex areas to
towns;
(
d) establish and alter
boundaries of towns; and
(
e) disincorporate a
town.
(2) An order made under
subsection (1) shall have effect from a date which may be stated in the order
and that date may be earlier or later than the date on which the order is made.
(3) An order made under
subsection (1) may provide that for the purpose of an election of a town council
in an area affected by an order, the order may have effect on a different date
than for other purposes.
Feasibility
report
(1) The minister may order the preparation of a
feasibility report before making a recommendation to the Lieutenant-Governor in
Council under paragraphs 14(1)(a), (b), (c), (
d) or (e).
(2) Where the minister orders the preparation of a
feasibility report under subsection (1), the minister shall appoint at least
one person but no more than 3 persons to prepare the feasibility report in
accordance with the regulations.
(3) Where the minister appoints more than one
person under subsection (2), the minister may, where the minister considers it
necessary, appoint a chairperson from among the persons appointed under
subsection (2).
(4) P ersons appointed
under subsection (2) have the powers of a commissioner under the Public
Inquiries Act, 2006 .
(5) B efore preparing a
feasibility report under this section, the persons appointed under
subsection (2) shall hold a public hearing with
respect to a proposed order under subsection 14(1) and shall, where reasonable,
hold the hearing in the area affected by the order.
(6) Notwithstanding
subsection (5), where the persons appointed under subsection (2) specify that a
written or oral submission is required to be made by a specified date before a
public hearing, and where a written or oral submission is not made by that
date, the minister may cancel the public hearing and a further public hearing
shall not be required.
(7) Unless otherwise ordered by the minister, all
costs associated with a feasibility report shall be the responsibility of the
town.
Notice of intent
16. Before ordering the preparation of a feasibility report
under
section 15, the minister shall, in accordance with
section 292, publish a
notice of the minister's intent to make the order.
Name of town
(1) Upon the incorporation of a town, the Lieutenant-Governor
in Council may, by order, establish the name of that town.
(2) The minister may, by
order, change the name of a town.
Assessment of needs
(1) Following
an amalgamation under paragraph 14(1)(b), annexation under paragraph 14(1)(
c) or an alteration of boundaries under paragraph 14(1)(d), the minister may appoint
a person to assess the needs of a town or an area
within the town.
(2) A person appointed under subsection (1) shall recommend to the minister the appropriate actions to be
carried out upon the amalgamation, annexation or alteration of boundaries.
(3) A p erson appointed
under subsection (1) shall be a representative from either
(
a) the town or areas
affected by the amalgamation, annexation or alteration of boundaries; or
(
b) from the department.
(4) The minister may
establish the terms of reference for an assessment carried out by a person
appointed under subsection (1).
Order respecting
assets and liabilities
19. Notwithstanding paragraph 21(1)(c), in an order amalgamating
towns or annexing an area to a town, the Lieutenant-Governor in Council may
provide for the adjustment of assets and liabilities between areas and towns
affected by the order.
Publication of
orders
20. In addition to the requirements for publication in the Gazette
under the Statutes and Subordinate Legislation Act , an order made
under this Part shall be published by the minister in accordance with
section 292.
Reduction or
increase in area
(1) Where an order is made under paragraph 14(1)(
d) reducing
the area of a town,
(
a) a councillor who
lives in the area that was taken out of the town by the order stops being a
councillor when the order comes into effect;
(
b) the minister may
order the reduction of the number of persons to serve as councillors to be
effective when the term of office of the councillors then serving expires, and
where a vacancy occurs in the office of councillor before that term expires,
the vacancy shall not be filled, unless the number of councillors is then below
the number fixed by the order;
(
c) al l assets of the town
may be retained by it, except highways, lanes, sidewalks, bridges and other
public ways in the area taken out of the town and the town council may dispose
of those assets for the consideration and upon the terms that it considers
appropriate; and
(
d) the town council may
collect money due to the town and take legal action, where the right to that
money arose before the order came into effect, as if the order had not been
made.
(2) Where an order is
made under paragraph 14(1)(
c) or (
d) increasing the area of a town,
(
a) the minister may, by
order, increase the number of persons to serve as councillors, effective as of
the date of the order;
(
b) all highways, lanes,
sidewalks, bridges and other public ways in the area taken into the town shall
become the property of that town; and
(
c) the minister may
make an order that the minister considers necessary.
Taxes on
amalgamation
(1) Notwithstanding that a town has imposed taxes and tax
rates under
Part VII, where an order is made under paragraph 14(1)(
b) to
amalgamate the town or under paragraph 14(1)(
c) to annex an area to the town,
the minister may, in writing, direct
(
a) the manner in which
taxes and tax rates applicable to the amalgamating towns and annexed areas are
to be harmonized; and
(
b) the time by which
the harmonization referred to in paragraph (
a) is to be carried out.
(2) A direction of the
minister under subsection (1) is binding upon the amalgamated towns and annexed
areas to which it applies.
PART III
TOWN COUNCIL
Establishment of
first town council
23. Where
a town is incorporated under this Act, t he
Lieutenant-Governor in Council shall, by order, establish a town council to
control and manage the town in accordance with this Act.
Number of
councillors
(1) A town council shall consist of an odd number of councillors that is not less
than 5 and not more than 9.
(2) Notwithstanding subsection (1), upon the
request of the town and with the prior written approval of the minister, a town
may increase the maximum number of councillors.
Wards
(1) Where a town is first incorporated, the minister may, by order,
(
a) divide a town into 2
or more wards;
(
b) define the
boundaries of the wards; and
(
c) fix the number of
councillors to be elected for each ward.
(2) Where the minister does not divide a town into
wards under subsection (1), a town council may, by a vote
of 2/3 of the councillors in office,
(
a) divide the town into
2 or more wards;
(
b) define the
boundaries of the wards; and
(
c) fix the number of
councillors to be elected for each ward.
(3) A town council may, by
a vote of 2/3 of the councillors in office, vary or repeal the wards and their
boundaries established under subsection (1) or (2).
(4) Notwithstanding subsections (2) and (3), a
town council shall not divide a town into wards or vary or repeal wards and
their boundaries within 12 months following a general election or 6 months
before a general election.
(5) W here the minister
or a town council fixes the number of councillors to be elected for each ward,
the minister or town council shall also determine the number of councillors to
be elected at large.
(6) T he number of
councillors determined under subsection (5) to be elected at large shall be greater
than the total number of councillors elected for the wards.
(7) Notwithstanding
subsection (6), where a town is first incorporated, the minister may
(
a) fix the number of
councillors to be elected for each ward that results in the total number of
councillors elected for the wards being equal to or greater than the number of
councillors elected at large; or
(
b) direct that all the
councillors to be elected shall represent wards.
(8) Where
(
a) the total number of
councillors elected for the wards at the previous election was equal to or greater
than the number of councillors elected at large; or
(
b) all the councillors
elected represent wards,
the town council shall, at least 6 months before the next general election under
section 5 of the M unicipal Elections Act
determine the number of councillors to be elected at large for the purposes of
the next and subsequent general elections.
(9) Where a town council
does not comply with subsection (8), the minister may determine the number of
councillors to be elected at large as if the minister were the town council.
First election
26. In the first election of a town council established in accordance
with
section 23, the councillors shall be elected in
accordance with the Municipal Elections
Act on a date set by the minister.
Mayor's election
(1) The minister may direct that there be a separate
election of the mayor in the first election of a town council or in an election
of a town council ordered by the minister.
(2) A town council may by
a vote of 2/3 of the councillors in office,
(
a) provide for the
election of the mayor by a separate election;
(
b) change the decision
in paragraph (a); or
(
c) change a direction
made by the minister under subsection (1).
(3) Where a person is
not nominated for mayor in an election provided for under subsection (1) or
(2), a mayor may be elected by the councillors from amongst the councillors as
if a provision had not been made for the separate election of the mayor.
(4) Where subsection (3)
applies, the person who received the next highest number of votes after the councillor
who was elected with the least number of votes shall be considered elected and shall
become a councillor.
Election of mayor
and deputy mayor
(1) At the first meeting of the town council held
following the first election and each general election, the councillors shall
(
a) elect one councillor
to be mayor, where there has not been a separate election for mayor; and
(
b) elect one councillor
to be deputy mayor.
(2) An election under
subsection (1) shall be conducted by the town clerk or returning officer and
shall be done by a secret ballot of councillors.
Vacancy re: mayor
(1) Where a vacancy occurs in the office of a mayor who was
originally elected in a separate election, the town council shall fill that
vacancy by either
(
a) having the deputy mayor assume the office of
mayor
(
i) for the remainder of the mayor's term, where
there is less than one year remaining in the mayor's term, or
(ii) until a by-election is held to fill the vacant
position of mayor, where there is one or more years remaining in the mayor's
term; or
(
b) electing, by secret
ballot, from among the remaining councillors, a person to assume the office of
mayor for the remainder of the originally elected mayor's term.
(2) A councillor who
wishes to run for election as mayor in a by-election referred to in subparagraph
(1)(a)(ii) shall resign as a councillor before running for election as mayor.
(3) Where a vacancy
occurs in the office of a mayor who was originally elected by the town council,
that vacancy shall be filled in accordance with subparagraph (1)(a)(
i) or
paragraph (1)(b).
Mayor status
30. The mayor is the presiding officer of the town council and
is the official head of the town for all ceremonial purposes.
Powers and duties
of mayor
(1) The mayor shall exercise the powers and perform the duties
that may be conferred or imposed upon the mayor by the town council or under this
Act or any other Act.
(2) Notwithstanding
subsection (1), the mayor is subject to the direction and control of the town
council and shall abide by decisions of the town council.
Powers and duties
of deputy mayor
32. In the absence or incapacity of the mayor, the deputy mayor
has the powers and shall exercise the duties of the mayor.
Councillor duties
(1) A
councillor shall
(
a) consider the welfare and interests of the town
as a whole and bring to the town council's attention anything that would
promote the welfare or interests of the town;
(
b) participate generally in developing and
evaluating the policies and programs of the town;
(
c) participate in town council meetings, town council
committee meetings and meetings of other bodies to which the councillor is
appointed by the town council;
(
d) make all reasonable
efforts to ensure that the by-laws of the town are executed and obeyed;
(
e) advance the aims of
the town council;
(
f) keep confidential any matters discussed in closed
meetings of the town council or town council committee meetings until such time
as the matter is discussed at a town council meeting held in public; and
(
g) perform any other duty or function imposed on
the councillor by this Act or any other Act.
(2) A councillor is
subject to the direction and control of the town council and shall abide by the
decisions of the town council.
Remuneration and
expenses
(1) Notwithstanding
section 89, a town council may, in
accordance with the regulations,
(
a) pay to the mayor,
deputy mayor and other councillors the annual or other remuneration that may be
agreed upon by the town council as determined by a vote of 2/3 of the
councillors in office; and
(
b) reimburse the mayor,
deputy mayor and other councillors for reasonable expenses incurred by them in
the conduct of town business that may be agreed upon by a vote of the majority
of the councillors.
(2) Payments under paragraphs (1)(
a) and (
b) shall
be made out of the funds of the town and shall not be considered to be salary
or remuneration in respect of which the office of a councillor would be vacated
under paragraph 45(1)(i).
Delegation
(1) Unless this Act or any other Act or a by-law provides otherwise, a town council
may, by by-law or resolution, delegate any of its powers, duties or functions
under this Act, any other Act or a by-law to a town council committee, the town
manager, town clerk, department head, by-law enforcement officer or a municipal
service delivery corporation.
(2) In a delegation under subsection (1), the town
considers appropriate.
(3) A town council shall not delegate
(
a) its power or duty to make a by-law;
(
b) its power to pass a resolution;
(
c) its power to make, suspend or revoke the
appointment of an officer of the town;
(
d) its power to borrow money; or
(
e) its powers to establish reserve funds.
(4) In a delegation under subsection (1), the town
council may authorize the delegate to subdelegate the powers, duties and
delegate considers appropriate.
Presiding officer
(1) The mayor, or in the mayor's absence, the deputy mayor
shall preside at all meetings of the town council.
(2) Where both the mayor
and deputy mayor are absent from a meeting, the other councillors shall appoint
a temporary chairperson who may exercise the powers and carry out the duties of the
mayor at the meeting.
(3) The mayor or other person
presiding at a meeting of a town council who wishes to take
part in debate may,
in accordance with this section, be replaced as the presiding officer for the
time period during which the mayor or presiding person is speaking.
First meeting
(1) The first meeting of a town council following a general or
special election shall be called by the town clerk or the returning officer
within 14 days of the election.
(2) Notwithstanding
subsection (1), where an order made under
section 14 contains a provision
respecting the date on which a town council shall take office, the first
meeting of the town council shall be called by the town clerk or the returning
officer within 14 days of that date.
Actions and
decisions of town council
(1) All decisions of a town council shall be
(
a) made in a regular or
special meeting of the town council; and
(
b) adopted by a by-law
or a resolution of the town council.
(2) An act or decision of a town council is not valid unless it is authorized
or adopted by a by-law or resolution at a town council meeting.
(3) A
town council may not transact any business at a special meeting other than the
business specified in the notice of the special meeting, unless all members of
the town council present at the special meeting agree.
Frequency of
meetings
(1) A
town council shall meet
(
a) at least once a
month for the dispatch of general business; and
(
b) at other times that
the town council determines necessary.
(2) Meetings referred to in subsection (1) shall
be c alled by the town clerk upon the request of the
mayor or upon the written request by any 2 councillors.
(3) A
schedule of the
regular monthly meetings to be held under subsection (1) shall be approved
annually by resolution of the town council and shall set out the date, time and
place of the regular meetings.
(4) Special meetings of
a town council shall be called by the town clerk upon the request of the mayor
or any 2 councillors.
(5) Where a special
meeting is called under subsection (4), the town clerk shall give notice of the
special meeting to all councillors by delivering a notice to
(
a) the councillor;
(
b) the councillor's
place of residence; or
(
c) the councillor's
place of business.
(6) A notice referred to in subsection (5) shall
be delivered at least 24 hours before the time set
for the meeting.
Open meetings
40. Al l regular and special meetings of a town council and all meetings of a town
council committee shall be open to the public.
Closed meetings
(1) Notwithstanding
section 40, a town council meeting or a town council committee meeting may be
closed to the public for the duration of the discussion if it is necessary to
discuss
(
a) information of which
the confidentiality is protected by law;
(
b) personal information
that is protected under the Access to
Information and Protection of Privacy Act, 2015 ;
(
c) information that
could cause financial loss or gain to a person or the town, or could jeopardize
negotiations leading to an agreement or contract;
(
d) the proposed or
pending acquisition or disposition of land;
(
e) information that
could violate the confidentiality of information obtained from the Government
of Canada or from the government of a province or territory;
(
f) information
concerning legal opinions or advice provided to the town council by its lawyer
or privileged communications between lawyer and client in a matter of town
business;
(
g) litigation
or potential litigation affecting the town or a municipal service delivery
corporation or a matter before a board, commission or tribunal that affects the
town or a municipal service delivery corporation;
(
h) the access to or
security of buildings and other structures occupied or used by the town or
access to or security of systems of the town, including computer or
communication systems;
(
i) information gathered
by the Royal Canadian Mounted Police and Royal Newfoundland Constabulary, in
the course of investigating any illegal activity or suspected illegal activity,
or the source of that information; or
(
j) labour and
employment matters, including the negotiation of collective agreements.
(2) Where a meeting is a
closed meeting,
(
a) members of the
public shall not be present;
(
b) a resolution or by-law shall not be adopted
other than a resolution
(
i) giving instructions to the lawyer for the town,
(ii) giving instructions to any person negotiating
a contract on behalf of the town,
(iii) giving directions to employees on matters
referred to in subsection (1),
(iv) adjourning the closed meeting, or
(
v) opening the meeting to the public;
(
c) a record shall be
made containing only the following information:
(
i) the type of matter
under subsection (1) that was discussed during the meeting, and
(ii) the date of the
meeting; and
(
d) all decisions made during the meeting shall be
documented by a resolution.
(3) Where a decision is
made by a town council at a closed meeting, the decision shall be ratified at a
public meeting.
Meeting by
electronic means
(1) A town council may allow a councillor to participate in a town
council meeting or town council committee meeting by electronic means.
(2) A councillor
participating in a town council meeting or town council committee meeting by
electronic means is considered to be in attendance at the meeting.
Quorum
(1) A quorum is
required at all times for town council meetings and town council committee
meetings.
(2) A majority of all councillors in office constitutes
a quorum for a town council meeting provided that there are at least 3
councillors in office.
(3) Notwithstanding subsection (2), where there are
less than 3 councillors in office, the minister may order that the remaining
councillors constitute quorum until an election or a by-election is held to
fill the vacancies .
(4) A majority of all members of a town council
committee constitutes a quorum for a town council committee meeting.
Voting
(1) A motion before a town council shall be decided by a
majority vote of the councillors in attendance at the meeting except where a vote
of 2/3 of the councillors in office is required.
(2) A councillor shall
not abstain from voting on a motion before the town council unless the
councillor is required to abstain from voting because of a conflict of interest
under the Municipal Conduct Act .
(3) Where one or more councillors abstain from
voting on a motion in accordance with subsection (2) and the number of
councillors remaining at the meeting referred to in subsection (1) is not
sufficient to constitute a quorum, the number of councillors remaining, where
not less than 2, shall be considered to constitute a quorum for purposes of
discussion and voting on the matter being considered by the council.
(4) The minutes of a town
council meeting shall indicate the name of each councillor who did any of the
following:
(
a) voted for and
against a motion;
(
b) abstained from voting on a motion; or
(
c) was absent from the meeting.
(5) Where there is a tie
vote on a motion, that motion shall be considered to be defeated.
Vacancy of office
(1) The office of a councillor becomes vacant where
(
a) the councillor
resigns, in writing;
(
b) the councillor is a
member of a town council that is dismissed under the Municipal Affairs Act or
the councillor is dismissed as a member of a town council under the Municipal Affairs Act ;
(
c) the councillor's seat was vacated under the Municipal Conduct Act ;
(
d) an administrator is appointed under
section 200;
(
e) the councillor ceases to be a resident of the town;
(
f) the councillor has
been absent from the town for more than one year;
(
g) the councillor
remains indebted to the town for outstanding taxes or fees 31 days after the
end of the financial year;
(
h) without leave of the
town council, the councillor
(
i) is not sworn into
office within 60 days after the election, or
(ii) does not attend
regular meetings of the town council for 3 successive months;
(
i) the councillor
accepts without the prior written approval of the minister, an office or
employment with the town to which a salary or remuneration, not including an
honorarium payable out of the funds of the town, is attached; or
(
j) the councillor fails
to vote on a matter before the town council when required to vote.
(2) For the purposes of paragraph (1)(a), a
councillor is considered resigned on the date
specified in the resignation, or, where a date is not specified, from the date
when the councillor files the resignation with the town clerk or, where the
councillor resigns at a meeting of the town council, from the time of that
resignation.
(3) A councillor shall
not sit or act as a councillor after the councillor's seat has been vacated.
(4) A councillor whose
seat has been vacated under paragraphs (1)(e), (f), (g), (h), (
i) or (
j) may
appeal to a judge of the Supreme Court by filing a notice of appeal with the
Supreme Court within 21 days of the date on which the councillor is notified by
the town clerk that the councillor's seat is vacated and upon paying into the
Supreme Court an amount, or upon giving a bond for the amount that the judge
considered sufficient to defray the costs of the appeal.
(5) A councillor or the
councillor's solicitor shall file a copy of the notice of appeal with the town
clerk.
(6) The notice of appeal
shall set out in detail the allegations of the councillor and the grounds of
the appeal and shall be signed by the councillor or the councillor's solicitor.
(7) The councillor
shall, within 14 days after the service of the notice of appeal under this
section, apply to the judge for a date for the hearing of the appeal.
(8) A town clerk shall,
not less than 4 days before the date of the hearing of the appeal, provide to
the judge all papers and documents in the possession of the town relevant to
the appeal.
(9) A judge shall hear
the appeal and the evidence brought forward by the councillor and the town in a
summary manner and may
(
a) uphold the vacancy
or reinstate a councillor whose seat was vacated under paragraphs (1)(e), (f),
(g), (h), (
i) or (j); or
(
b) make another
decision that the judge considers to be appropriate in the circumstances.
(10) A judge may make an
order as to costs, either for or against the councillor or the town, and may
set the amount of the costs.
(11) A person who has
filed an appeal under this
section is not entitled to sit as a councillor while
the appeal is being heard.
Rules of
procedure
A town council shall adopt rules of procedure for its town council meetings.
Committees
(1) A town council may establish the standing or special
committees that it considers necessary.
(2) A town council shall
appoint councillors to serve on a committee established under subsection (1).
(3) A committee established under subsection
(1) shall consist of no less than 2 councillors.
(4) Where a town council establishes a standing or
special committee under subsection (1), the town council may establish the mandate
of the committee and the procedures to be followed by the committee.
Advisory
committees
(1) A
town council may establish one or more advisory committees to advise on matters
of special interest to the town.
(2) An advisory committee may be comprised of
(
a) councillors;
(
b) residents; and
(
c) persons with expertise in areas that the town
council determines necessary.
(3) A town council shall
(
a) define the function and scope of an advisory
committee; and
(
b) establish guidelines and procedures for an advisory
committee.
PART IV
TOWN COUNCIL MATTERS
Plebiscites
(1) A town council may, by a vote of 2/3 of the councillors in
office, hold a plebiscite in the town for the purpose of determining the views
of the voters in the town and may
(
a) set the date for the
holding of the plebiscite; and
(
b) define the question
to be voted on in the plebiscite.
(2) A plebiscite shall,
with the necessary changes, be held in accordance with the Municipal
Elections Act .
Inspection of
documents
(1) The following documents shall be made available by a town
council for public inspection during the normal business hours of the town:
(
a) adopted minutes of
the town council;
(
b) assessment rolls;
(
c) by-laws ;
(
d) town plans;
(
e) open public tenders;
(
f) financial
statements;
(
g) auditor's reports;
(
h) adopted budgets;
(
i) contracts;
(
j) orders;
(
k) permits; and
(
l) a ll other documents
tabled or adopted by the town council at an open meeting.
(2) A person inspecting
documents under subsection (1)
(
a) shall not remove the
documents from the place where they are located or interfere with an employee
of the town in the performance of the employee's duties; and
(
b) may make extracts
from the documents and may make copies of the documents.
(3) Where copies are made by an employee of the
town under paragraph (2)(b), the town may charge a fee equal to the actual cost
of providing the copies.
(4) Where a person requests that a town provide
the documents referred to in subsection (1) by an electronic means and the town
has an electronic means to provide them, the town shall comply with the
request.
(5) Notwithstanding paragraph (2)(
b) and
subsection (4), extracts and copies shall not be made of assessment rolls and
assessment rolls shall not be provided to a person by an electronic means.
Copies of
documents
(1) Where an action has commenced in a court and the town clerk
is satisfied or the court has ordered that an extract from a document in the
possession of or under the control of the town clerk is required in evidence in
the action, the town clerk shall, upon payment of a charge that may be set by
the town council, provide to the person requiring the extract a certified copy
of the extract with the corporate seal of the town attached to the extract.
(2) An extract provided
under subsection (1) purporting to be certified by the town clerk and having
the corporate seal of the town attached to it shall be received in evidence as
presumptive proof without proof of the appointment or signature of the town
clerk or the corporate seal of the town.
Authentication of
documents
(1) All deeds and documents to which a town is a party and to
which a seal is necessary shall be authenticated by the corporate seal of the
town and the mayor, or the town clerk when authorized by the town council,
shall authenticate the deeds and documents by signing and initialling each page
of them.
(2) Where a mayor or
town clerk is in a conflict of interest and is unable to act as a signatory to
a deed or other document to which the town is a party, the town council shall
appoint a councillor to act as a signatory in the place of the mayor or town
clerk.
Public
procurement
(1) The execution of a public work, the acquisition of
goods or services and the leasing of space by a town shall be in accordance
with the Public Procurement Act .
(2) I n this section,
"public work", "goods" and "services" have the
same meaning as in the Public Procurement
Act .
Agent
the government of the province or of another town, for the management of
property in the town owned or leased by that government or town, by agreement
with that government or town.
Joint ventures
55. A town may enter into an agreement with the government of
the province, a city, a regional service board, local service district or
municipal service delivery corporation or another town, agency or person for
the joint construction, ownership, maintenance and operation of a facility or
service that the town is permitted to construct, own, maintain and operate
under this Act.
Private services
(1) A town council may, by a vote of 2/3 of the
councillors in office, contract to do work, supply goods or provide a service
not authorized for the town under this Act where it
(
a) has equipment, staff
or goods surplus to its needs; and
(
b) charges normal
commercial rates for the work, goods or service.
(2) Notwithstanding subsection (1), a town shall
not contract to do work, supply goods or provide a service where it would be in
competition with a person that is located in the town.
Expropriation
(1) A town may, in accordance with
Part IX of the Urban and
Rural Planning Act, 2000 , expropriate land, property or an interest
in land or property where
(
a) the person who owns
the land, property or interest refuses to accept the amount offered in writing
by the town;
(
b) the person who owns
the land, property or interest is incapable of conveying the land, property or
interest, or cannot be found in the province or is not known;
(
c) for another reason,
agreement cannot or may not be reached with the person who owns the land,
property or interest; or
(
d) for another reason
the town considers it advisable to do so.
(2) Where a town no longer requires the land,
property or an interest expropriated under subsection (1), the town shall give
the person who owned the land, property or interest in the land or property at
the time of the expropriation the first opportunity to purchase the land.
PART V
STAFF
Town manager
(1) A town council may establish the position of town manager
and may, by a vote of 2/3 of the councillors in office, appoint a person as town
manager.
(2) Where the position
of town manager is vacant, or the town manager is unable to carry out the town manager's
duties, the town council may appoint a person to act as town manager, and the
acting town manager has and may exercise the powers and shall carry out the
duties of the town manager.
Duties of town
manager
(1) A town manager is responsible to the town council for the
planning, execution, conduct and administration of the affairs of the town.
(2) In addition to the
town manager's duties under this Act, a town
manager may be appointed town clerk or acting town clerk in the absence of a
town clerk.
(3) A town manager shall
comply with this Act, the regulations and any other Acts and the by-laws and
the policies of the town.
(4) Notwithstanding
subsection (3) and subsection 60(2), where a town manager carries out a policy
or
an act in good faith that has been directed by the town council and that
policy or act contravenes this Act or another Act, an action shall not lie
against the town manager for a matter arising from carrying out that policy or
act.
(5) A town manager may
delegate the town manager's powers and duties to employees that the town manager
may consider appropriate, except those powers and duties that the town council
may specifically exempt from delegation.
(6) Notwithstanding
subsection (5), in the case of an emergency, the town manager may delegate all
of the town manager's powers and duties.
Relationship
between town council and town manager
(1) Where a town has a town manager, the town council shall provide direction to
the town manager regarding the administration, plans, policies and programs of
the town.
(2) A town manager shall
not disobey, disregard or overrule a decision of the town council.
(3) A town manager may
advise or make a recommendation to the town council but the advice or
recommendations of the town manager are not required before an action of the
town council.
(4) Where a town manager provides advice or makes
a recommendation to the town council, the town council shall consider and make a record of the advice or recommendation
in its minutes but the town council is not required to follow the advice or
recommendation.
Town manager attendance
at meetings
(1) A town manager or the town manager's designate shall attend all town council meetings
and is entitled to speak but has no right to vote.
(2) Where permitted by the town council, the town
manager or the town manager's designate may attend town council committee
meetings and is entitled to speak but has no right to vote.
Use of employees
62. A town manager may use the services of the heads of
departments and of other employees of the town for the purpose of carrying out the
town manager's duties.
Expenditures
town manager
63. A town manager may make or authorize the making of
expenditures for the purchase of equipment, supplies, work or other things
required for the carrying on of the business of the town and the town manager
may enter into contracts for the expenditures on behalf of the town where
(
a) the proposed expenditure
is not in excess of the amount provided in the budget for the purchase of the
equipment, supplies, work or thing; and
(
b) either
(
i) th e expenditure does
not exceed in a single case an amount which the town council shall by resolution
set as a maximum amount; or
(ii) where the
expenditure exceeds in a single case the maximum amount referred to in subparagraph
(i), the town manager has obtained the prior approval of the town council.
Emergency
expenditures
64. N otwithstanding
section 63, where, in the opinion of the
town manager, the immediate expenditure of an amount exceeding the amount set
by the town council under subparagraph 63(b)(
i) is necessary to meet an
emergency situation, the town manager may make that expenditure without the
prior approval of the town council and shall report on the expenditure to the
town council at its next town council meeting.
Recommendations
for expenditures
(1) Where an expenditure is proposed by a town council that
exceeds the expenditure amount established under subparagraph 63(b)(i), the
town council shall not make the expenditure until it has requested the
recommendations of the town manager with respect to that expenditure.
(2) When the town
manager's recommendations under subsection (1) are received, or where the town
manager does not make recommendations within a reasonable time, the town
council may make the expenditure in the manner and subject to the conditions
that it considers appropriate.
(3) A town council is
not required to adopt recommendations made to it by the town manager under
subsection (2).
Town clerk
(1) A town council shall, by a vote of 2/3 of the councillors in
office, appoint a town clerk.
(2) Where the office of town
clerk is vacant, or the town clerk is unable to carry out the town clerk's
duties, the town council shall appoint a person to act as town clerk.
(3) The acting town clerk
may exercise the powers and shall carry out the duties of the town clerk.
Duties of town clerk
(1) A town clerk is the secretary to the town council and
is responsible for
(
a) the recording of the
proceedings and decisions of the town council; and
(
b) the safekeeping of all
documents of the town and the corporate seal of the town.
(2) In addition to the town
clerk's duties under this Act, a town clerk may be appointed town manager or
acting town manager.
(3) A town clerk may
administer oaths and affirmations and receive affidavits for the purpose of
this Act.
(4) A town clerk shall
comply with this Act, the regulations and any other Acts and the by-laws and
the policies of the town.
(5) Notwithstanding
subsection (1), a town council may delegate responsibility for the safekeeping
of some or all of the documents, to an employee of the town.
(6) Where the town clerk
carries out a policy or
an act in good faith that has been directed by the town
council and that policy or act contravenes this Act or another Act, an action
shall not lie against that town clerk for a matter arising from carrying out
the policy or act.
Town clerk attendance
at meetings
(1) A town clerk or the town clerk's designate shall attend all town council
meetings and is entitled to speak but has no right to vote.
(2) Where permitted by the town council, the town
clerk or the town clerk's designate may attend town council committee meetings
and is entitled to speak but has no right to vote.
Departments
(1) A town council may
(
a) establish
departments;
(
b) appoint for the
departments the department heads that are necessary for the effective operation
of the town; and
(
c) set out the roles
and responsibilities of the department heads.
(2) Where a town has a
town manager,
(
a) the town manager may propose the structure or
restructuring of departments; and
(
b) the town council shall
seek the town manager's recommendation before establishing a department or
appointing a department head.
(3) The town council may
appoint one person as department head for 2 or more departments established
under paragraph (1)(a).
(4) The department heads
are responsible to the town manager or where there is no town manager, to the
town council.
Report of
disagreement
(1) Where
a department head is not in agreement with a plan,
proposal or appointment by the town manager, the department head may request
that the town manager report to the next town council meeting that the
department head is not in agreement with the plan, proposal or appointment.
(2) A request referred to in subsection (1) shall
be in writing and shall include reasons for the request.
Employee positions
(1) A town council may establish employee positions for the
administration of the town.
(2) A town council shall
establish written job specifications for each position established by it,
setting out the duties for each position and the qualifications of persons to
fill those positions.
(3) Where a town has a town
manager, the town council shall request the town manager's recommendation
before establishing employee positions and job specifications for the employee
positions.
Salaries
72. A town council may establish the salaries of town employees.
Suspension
(1) Where a town council is of the opinion that the town manager,
town clerk or a department head has engaged in misconduct, the town council
may, by a vote of 2/3 of the councillors in office, suspend the town manager, town
clerk or department head for a period which the town council may determine.
(2) A town council may
determine, by a vote of 2/3 of the councillors in office, if a suspended town manager,
town clerk or department head is to receive a salary during the period of
suspension or any portion of the period of suspension.
Dismissal
(1) A town manager, town clerk or department head may be
dismissed by a vote of 2/3 of the councillors in office.
(2) Councillors shall
not hold a vote on a motion to dismiss under subsection (1) unless
(
a) a written notice of
the town council meeting signed by the councillors intending to make and second
the motion is provided to the town clerk or mayor; and
(
b) a copy of the notice
addressed to the person who is the subject of the motion is served on the
person personally or by leaving it at the person's last known address at least
one week before the date of the town council meeting at which the motion to
dismiss is to be made.
Retirement
75. A town manager, town clerk or department head may be
retired in accordance with a pension scheme established under this Act when
that person becomes qualified for a pension, allowance or gratuity under that
pension scheme.
Town employees
(1) Where a town has a town manager, the town manager may
employ, suspend or dismiss an employee of the town.
(2) Notwithstanding subsection (1),
(
a) a town manager shall not employ, suspend or
dismiss the town clerk or a department head; and
(
b) where the town has department heads, the town
manager shall consult with the department head responsible for the employee
before employing, suspending or dismissing the employee.
(3) The authority that
may be exercised by the town manager under subsection (1) is subject to the
terms of a collective agreement or other employment contract to which the town
is a party.
(4) Where there is no
collective agreement or other contract regulating the procedures to be followed
under subsection (1), a town council shall, upon the written recommendation of
the town manager, where there is a town manager, establish written procedures
governing the exercise of the powers set out in subsection (1).
(5) A town council may
employ, suspend or dismiss an employee of the town, subject to subsections
(3) and (4), after consulting with the town manager, where there is a town manager.
Bonding
(1) A
town council shall ensure that every employee of the town who handles or could
handle money of the town is bonded or otherwise insured for the faithful
performance of duties.
(2) A town council shall pay the premiums on bonds
or insurance entered into under this section.
Pensions
(1) A town council may provide a pension plan for councillors,
full-time employees, regular part-time employees, or a class of employees, who
have worked for a stated period and discontinued their employment or, in the
case of a councillor, the councillor's tenure as a councillor, or have suffered
permanent disability before reaching retirement age.
(2) A pension plan
provided under subsection (1) shall be a defined contribution plan as defined
in the Pension Benefits Act , 1997 unless the minister approves an
alternative type of plan.
(3) A pension plan
entered into under subsection (1) shall be based upon a plan of contributions
by the town council and its councillors or the town council and town employees.
Pension
portability
79 .
(1) Where before becoming a councillor or an employee of a town, a person was employed
Canada or a corporation or institution having a pension plan, the whole or part of the pensionable service
credited to the person under the pension plan of that former employer may be
credited to the person as pensionable service with the town.
(2) Notwithstanding
subsection (1), a town may make an agreement with a body referred to in that
subsection providing for the crediting, on a reciprocal basis, of the whole or
part of the pensionable service served by the councillor or employee with that
body, as pensionable service with the town.
Group insurance
(1) A town council may arrange to provide a group insurance
plan for the councillors, town employees or a class of town employees, and for
volunteer members of the town's fire department and for that purpose may enter
into arrangements which the town council may determine with insurance or other
companies or with the Crown.
(2) A group insurance
plan entered into under subsection (1) shall be based on a plan of contributions
by the town council and the councillors or the town council and town employees,
except for volunteer members of the town's fire department, in which case all
contributions shall be paid from the funds of the town.
Training
(1) A
town may arrange for councillors and town employees to participate in training
and other professional development activities.
(2) Where councillor and
town employee training is carried out by a town council or in co-operation with
other town councils or bodies engaged in councillor or town employee training
programs, the town shall arrange to support the councillors and town employees
financially and otherwise in taking the training programs.
PART VI
FINANCE
Financial year
(1) The financial year of a town council is from January 1 to
December 31.
(2) For the first year
of a town council the financial year is from the date the town council takes
office until December 31 immediately following taking office.
Bank account
(1) A town shall open bank accounts in a financial institution
approved by the town council and shall deposit to its credit all money received
by it.
(2) All cheques, orders
or electronic payments withdrawing money from the bank account of the town
shall be authorized by a councillor and a person designated for that purpose by
the town council.
(3) Where a comptroller
is appointed under
section 197 all cheques shall be countersigned by the
comptroller.
(4) In this section,
"financial institution" means
(
a) a trust company
approved by the Lieutenant-Governor in Council;
(
b) a bank within the
meaning of the Bank Act (Canada); or
(
c) a credit union
continued or incorporated under the Credit
Union Act, 2009 or a federal credit union as defined in the Bank Act (Canada).
Budget
(1) A town council shall, not later than 90 days after the day
on which the town council takes office following a general election and not
later than December 1 in each succeeding year, prepare and adopt a budget
containing estimates of the revenue and expenditures of the town for the next
financial year and a statement showing tax rates that shall be imposed during
that year.
(2) A budget adopted
under this
section shall be in the form set by the minister and a copy shall be
sent to the minister before the end of the calendar year of its adoption or in
the case of a new town council, within 30 days of its adoption.
(3) Notwithstanding
subsections (1) and (2), a town council may adopt a 3-year budget containing
estimates of the revenues and expenditures of the town for that period and
showing the tax rates that are to be imposed during that period.
(4) Notwithstanding
subsections (1), (2) and (3), the minister may approve and authorize the
postponement of the preparation, adoption and submission of a budget to a date
which the minister may determine.
(5) The proposed
expenditures in a budget shall not exceed the anticipated revenues.
Contents of
budget
(1) A budget shall only include the following revenue:
(
a) local revenue; and
(
b) federal and
provincial revenue for which written authorization has been received.
(2) Expenditures shall
not be provided in a budget for capital reserves except where a town council
has considered it necessary to set aside in the financial statements a reserve
from the accumulated surplus to invest for specific purposes of a capital
nature.
(3) Notwithstanding
subsection (2), a town may provide for an expenditure in its budget for a
capital reserve where the town council considers it necessary to establish a
capital reserve for a specific capital project and that reserve shall appear in
its audited financial statement.
(4) The unappropriated
accumulated surplus or accumulated deficit appearing in the audited financial
statements at the end of the previous financial year shall be credited or
debited as items of revenue or expenditure in the budget of the next financial
year.
(5) Where the amounts of
unappropriated accumulated surplus or accumulated deficit referred to in
subsection (4) are, in the opinion of the minister, substantial, they may be
credited or debited in future budgets over a period of years that may be
determined by the minister.
(6) A reserve fund referred
to in paragraphs 88(1)(
b) and (
c) may be provided for in a budget for a
specific purpose, a specified annual amount and over a specified period of
years that the town council shall approve.
(7) A reserve fund under
subsections (3) and (6) may be invested by the town council in short-term
investments.
Revised budget
(1) Where, during a financial year, it appears that the actual
revenues and expenditures are likely to be substantially greater or less than
estimated, the town council shall prepare and adopt a revised budget in the form
set by the minister.
(2) A copy of the
revised budget shall be sent to the minister within 2 weeks of its adoption.
(3) A revised budget
shall take effect on the first day of the month following the date of its
adoption by the town council.
Expenditures in
excess of budget
(1) A town council shall not, without authorization by a vote of
2/3 of the councillors in office, incur, enter into, contract, or become liable
for, an expenditure or indebtedness in excess of the estimated amount of
expenditure set out in the adopted budget or revised budget.
(2) Where under subsection
(1) the town council has incurred, entered into, contracted or become liable
for an expenditure or indebtedness that substantially exceeds the estimated
amount of expenditure set out in the adopted or revised budget, the town council
shall within 30 days prepare and adopt a revised budget in the form set by the
minister.
Reserve funds
(1) A town council may, by by-law, establish, manage and contribute to
(
a) a capital reserve fund;
(
b) an operating reserve fund; and
(
c) another type of reserve fund.
(2) Notwithstanding paragraphs (1)(
b) and (c), a
town council shall not establish a reserve fund referred to in paragraph (1)(
b) or (
c) unless the minister has approved the establishment of the reserve fund
in accordance with subsection (3).
(3) The minister may approve the establishment of
a reserve fund referred to paragraph (1)(
b) or (
c) where the town council
submits a written request to the minister which states
(
a) the purpose of the reserve fund; and
(
b) the criteria and conditions governing
contributions and withdrawals from the reserve fund.
(4) A town council shall specify in its by-law
establishing a reserve fund
(
a) the purpose for with reserve fund is
established; and
(
b) the criteria and conditions governing
contributions and withdrawal from the reserve fund.
Powers of
expenditure
(1) Subject to an adopted budget or revised budget containing a
provision for the expenditure, a town may, out of the funds at its disposal,
pay
(
a) salaries or
remuneration to the councillors, officers, auditors and employees of the town;
and
(
b) all the other
expenditures incurred in the execution of the powers and duties vested in the
town council by this Act, the regulations or another Act or regulation.
(2) A town council may, out of the funds at its disposal, and by a vote of 2/3 of the councillors in office , provide a grant of money or an in-kind
that are determined by the town council:
(
a) a charitable or non-profit organization or corporation;
(
b) a recreational, cultural, environmental, social or educational
organization; and
(
c) any other organization or corporation if, in the opinion of town council,
the grant will benefit its residents and assist in the social or environmental
development of the town.
(3) A town
council shall not provide grants to political parties or candidates in municipal, provincial or federal elections.
(4) A town council shall
not provide a grant that directly reduces or reimburses the taxes or fees paid
or payable to the town by the recipient of the grant.
(5) Expenditures made
under subsections (1) and (2) shall not exceed the total approved budget or
revised budget of the town and shall be supported by appropriate documentation.
Ministerial
budget approval
(1) Where a town has incurred major deficits in a financial
year, the minister may, where the minister considers it advisable, require the
town to submit its budget or revised budget to the minister for approval and
the minister may approve or disapprove the budget or revised budget.
(2) Where a minister has
required the submission of a budget or a revised budget under subsection (1),
the minister may also assign employees of the department to assist the town in
the preparation of its budget or revised budget.
Books of account
91. A
town shall ensure that correct and complete books of
account are kept of the financial dealings of the town.
Financial
statements
(1) A town council shall prepare and adopt, before June 1 of
each year, financial statements in a manner consistent with generally accepted
accounting principles established periodically by the Public Sector Accounting
Board.
(2) The mayor and the treasurer, or, where there
is no treasurer, the town clerk, shall sign the financial statements and shall
attach a report that an auditor has made with respect to the financial
statements.
(3) A town council shall publish the town's
financial statements and the auditor's report in accordance with
section 292.
Appointment of
auditor
(1) A town council shall appoint an auditor to audit the
accounts of the town and report on the financial statements prepared by the
town council or employees of the town.
(2) An auditor shall be appointed before August 1
in the year preceding the year in which the audit is required to be reported on
under
section 97.
(3) An auditor appointed under subsection
(1) shall be a public accountant licensed under the Chartered Professional
Accountants and Public Accountants Act.
(4) The appointment of an auditor remains in
effect until revoked by the town council.
(5) The minister may,
where the minister considers it necessary, appoint an auditor to conduct a
special audit and the cost of that special audit shall be a cost of the town with
respect to which that appointment was made.
Appointment of
auditor by minister
(1) Where a town council does not appoint an auditor within the
time period set out in subsection 93(2) or the town council appoints an auditor
who does not satisfy the criteria prescribed in subsection 93(3), the minister
shall appoint an auditor to audit the accounts of the town and report on the
financial statements prepared by the town council or by employees of the town.
(2) The costs of an
audit prepared by an auditor appointed under this
section shall be the
responsibility of the town for which that appointment was made.
Extension or
waiver of audit
95. Notwithstanding sections 93 and 94, the minister may
(
a) authorize an
extension of the time period for the preparation of an audit of the accounts of
the town to a date which the minister determines; or
(
b) waive the
requirement of an audit of the accounts of the town where the minister is
satisfied that an inspection by the employees of the department is sufficient
to ensure adequate financial control and accountability with respect to that town.
Auditor's powers
96. An auditor may request, and a town shall provide, all documents,
books of account and records of the town that the auditor considers necessary to
enable the auditor to properly audit the town accounts.
Auditor's report
(1) An auditor shall examine and report on the town's annual
financial statements and books of account and the audit report shall contain
information regarding
(
a) an expenditure in
excess of the total annual budget of the town;
(
b) the financial
position of the town with regard to arrears of revenue;
(
c) the manner in which
the accounts of the town have been kept;
(
d) the extent of
insurance carried with respect to all town property;
(
e) the adequacy of the town's
safeguards against fraud;
(
f) the sufficiency of
bonds entered into under
section 77; and
(
g) other matters
connected with the accounts that the auditor may consider of sufficient
interest or importance.
(2) An auditor shall
complete and submit a report on the audit within 5 months of the end of the
financial year being audited.
(3) A town shall send a
copy of the audit to the minister within 30 days of its receipt.
Interim audit
report
98. An auditor shall, at the request of the town council or the
minister, make an interim report regarding the accounts of the town and shall
send a copy of the report to the town council and the minister within 30 days
of its completion.
Current account
borrowing
(1) A town may borrow money for current account purposes.
(2) The indebtedness of
a town incurred as a result of borrowing money under subsection (1) shall not
exceed 20% of its estimated tax yield, grants-in-lieu and other assured
revenue, other than water and sewage subsidies paid by the province to the town,
in the financial year in which the borrowing takes place.
(3) All amounts borrowed
under subsection (1) shall be repaid before the end of the fiscal year in which
the borrowing takes place.
(4) Notwithstanding
subsections (2) and (3), a town may, with the prior written approval of the
minister,
(
a) borrow money for
current account purposes in an amount which is greater than 20% of its
estimated tax yield, grants-in-lieu and other assured revenue; and
(
b) finance the
repayment of money borrowed under this subsection and subsection (3) beyond the
year in which it is borrowed.
Long-term
borrowing
(1) Subject to the prior written approval of the minister, a town
may
(
a) borrow money for
capital purposes and issue securities for the repayment of money borrowed; and
(
b) enter into a
financing agreement as lessee with respect to the lease of personal or real
property where the lease is for a term of 3 years or more.
(2) A town shall, on or
before the end of each year, submit to the department a 5-year forecast of its
anticipated capital expenditure requirements.
Currency
101. Where a town borrows money under
section 99 or 100, the
money shall be stated in Canadian currency.
Unauthorized
expenditure
(1) Where, without the prior approval of the minister, a town council
uses money borrowed under
section 100 for a purpose other than the purpose for
which the minister approved the loan, the councillors who voted for the money
to be used for that purpose are personally, jointly and individually, liable
for the restoration of that money to the town, and the town or the Crown may
recover the money as a civil debt due to the town.
(2) Where a person
entitled to vote in an election for councillors files a written request with
the town council asking the town council to commence an action against
councillors who incur liability under subsection (1) for the recovery of the
money referred to in that subsection and the town council refuses or neglects
to commence an action within one month of receipt of the request, the person
who filed the request may
(
a) bring an action on the
person's own behalf or on behalf of other persons in the town; or
(
b) ask the minister to
commence an action in right of the Crown to recover the money.
Debenture
certificate
(1) A debenture issued by a town shall have a certificate
signed by the deputy minister of the department which contains the following
wording:
"This
debenture is valid and binding according to its terms and its validity is not
open to question in a court in the province, and this certificate is given
under the Towns and Local Service Districts Act.
Dated at , Newfoundland
and Labrador.
(2) The certificate as
set out in subsection (1) on a debenture, when signed by the deputy minister of
the department, is evidence that
(
a) the town council had
full authority in law and in fact to make and issue the debenture;
(
b) the debenture has
been lawfully and validly made and issued;
(
c) the debenture is
valid and binding on the town according to its terms; and
(
d) the debenture's validity
is not open to question in a court in the province.
(3) The deputy minister
of the department may impress the deputy minister's signature by machinery or
use an electronic signature on debentures and the certificate is valid as if it
had been signed in the handwriting of the deputy minister.
Signatures
(1) The
mayor and treasurer, or in the absence of the treasurer, the town clerk, shall
sign a debenture issued by a town.
(2) A person referred to in subsection (1) may
impress the person's signature by machinery or use an electronic signature and
the debenture is valid as if it had been signed in the handwriting of the
mayor, treasurer or town clerk.
Guaranteed loans
expenditures
(1) Where a town has raised money by a loan advanced or
guaranteed by the Crown or under bonds or debentures issued by the town council
with their repayment guaranteed by the Crown, the town shall not invite
tenders, award a contract or undertake an obligation with respect to the
execution of work, the performance of services, or the purchase of materials or
goods that are to be financed in whole or in part by that money, without the
prior written approval of the minister.
(2) Except with the
consent of the Lieutenant-Governor in Council, money referred to in subsection
(1) shall not be attached, held or otherwise taken under power of law to
satisfy an obligation of a town arising out of a contract entered into by that town
council without the prior approval of the minister.
PART VII
TAXES AND FEES
Division 1
Taxation
Imposition of
taxes
(1) All taxes that may be imposed or varied by a town shall be
imposed or varied by a resolution of the town council before April 1 in the
financial year in which the tax or variation of tax is to be applied.
(2) I n a resolution
imposing or varying a tax the town council may set out the date when the tax is
due but that date shall be on or before June 30 of the financial year in which
the tax is imposed.
(3) Where a tax is
imposed or varied by a town council on or before April 1 of the financial year,
the tax shall be considered to have been due from the beginning of the
financial year, unless a later date is set out under subsection (2).
(4) Where a tax is
imposed or varied by a town council after April 1 of the financial year, it
shall not take effect until the beginning of the next succeeding financial year
unless a later date is set out under subsection (2).
Effect of
extensions
107. Notwithstanding subsection 106(4), where a town council is
unable to impose or vary the real property tax by April 1 of a financial year
as a result of an extension under the Assessment Act, 2006 for either
(
a) t he completion of
the assessment roll under the Assessment Act, 2006 ; or
(
b) the time in which an
appeal is decided by a commissioner under the Assessment Act, 2006,
the real property tax
is considered to be due from the beginning of that financial year, unless the
town council sets a later date under subsection 106(2).
First year
108. Notwithstanding subsection 106(2), taxes imposed or varied
by a town council in its first financial year within 3 months of its taking
office become due and payable when rendered unless the town council sets a
later date under
section 106.
Duration
109. Taxes imposed or varied by a town council remain in effect
and are due according to the nature of the tax and their method of payment
until the resolution of the town council imposing the tax has been cancelled.
Tax payment
110. A town council may
(
a) determine the manner
of payment of a tax imposed under this Act; and
(
b) allow taxes to be paid in instalments.
Interest on
arrears
111. A town council may charge simple or compound interest on taxes
that are not paid on or before the date on which they become due, if, before
making that charge, the town council passes a resolution establishing
(
a) whether the interest
shall be simple or compound;
(
b) th e rate of interest
to be charged; and
(
c) when the interest
shall be applied.
Discount allowed
(1) A town council may allow a discount in respect of
taxes imposed under this Act for
(
a) persons who pay their taxes on or before March
31 of a year;
(
b) persons who provide proof satisfactory to the
town council of financial hardship; and
(
c) charitable and community organizations.
(2) Subsection (1) only applies where, before
allowing the discount, the town council passes a
resolution establishing the rate of discount.
Publication
(1) A town shall publish annually
(
a) a copy of a
resolution adopting its tax structure; and
(
b) a copy of the tax structure.
(2) Subsection (1) does not apply to a resolution
of the town council that settles the amount of tax owed by a person.
(3) The liability of a person to pay a tax is not
affected by the failure of a town to comply with subsection (1).
Proof of tax
114. In an action under this Act in which it is
necessary to show that a tax was imposed or varied, a copy of the following documents
are, in the absence of evidence to the contrary, proof that the tax was
properly imposed or varied:
(
a) the
resolution of council imposing or varying the tax; and
(
b) the
minute of the council signed by the town clerk.
Exemption,
remission and deferment
(1) A person may apply to a town council for, and the
town council may, by a vote of 2/3 of the councillors in office, grant an
exemption, remission or deferment of taxes and interest on the taxes, either in
whole or in part, for the period of time that the town council determines.
(2) A town council may
determine the evidence which it shall require to warrant the exemption,
remission or deferment.
Tax agreements
116. A town council may, by a vote of 2/3 of the councillors in
office, enter into tax agreements and offer tax incentives which vary existing
rates of tax.
Division 2
Real Property Tax
Real property tax
(1) A town council shall impose an annual real property tax on
the owners of real property within the town.
(2) A town council may establish classes and
subclasses of real property for the purposes of establishing a real property
tax.
(3) Where there are 2 or
more owners of the same real property within a town, a town council may
designate one of the owners to be the owner for the purpose of the imposition
and collection of the real property tax.
Rate of tax
(1) The real property tax rate shall be set as
(
a) a percentage of the assessed value of the real
property as set out in the last assessment roll of the town prepared under the Assessment Act, 2006 ; or
(
b) a base amount plus a percentage of the
assessed value of the real property as calculated in accordance with paragraph
(a).
(2) The real property tax rate shall, when
combined with all other anticipated revenues from other sources, be sufficient
to cover the expenditures for the financial year in which the real property tax
is imposed.
(3) A town council may,
by resolution, establish different base amounts in a town for
(
a) residential
property;
(
b) c ommercial property;
(
c) vacant land; and
(
d) land that has upon
it a structure which
(
i) is not used for
residential purposes, and
(ii) does not exceed the
square meterage area prescribed by the town in a by-law.
Representative
capacity
(1) Where real property is under the control of a person in a
representative capacity as executor, administrator, trustee, guardian or agent,
that person is liable for the payment of the real property tax only in the
person's representative capacity.
(2) Where the owner of
real property has not reached the age of majority, the person whose name has
been entered on the assessment roll of the town prepared under the Assessment
Act, 2006 as the parent, guardian or other legal representative of the
owner is, where the owner defaults in the payment, liable for the payment of
the real property tax.
Occupier
considered owner
120. Where real property is occupied and the owner is not known
despite a reasonable investigation by the town, the occupier is considered to
be the owner for the purpose of the imposition and collection of the real
property tax.
Tax exempt
property
(1) The following real property is exempt from the real
property tax:
(
a) real property
belonging to Canada or a province or territory of Canada;
(
b) real property
belonging to a town or its agents, a regional service board or a municipal
service delivery corporation;
(
c) real property
exempted by
an Act of the Legislature;
(
d) churches and other
places of worship together with the land on which they are situated;
(
e) cemeteries operated
by churches or non-profit organizations;
(
f) the rectory or other
principal place of residence of a religious leader in charge of a church or
other place of worship where that residence is owned by the church or other place
of worship, together with the land on which it is situated;
(
g) public health care
facilities owned and operated by the Provincial Health Authority and the land
on which they are situated, including student residences, but not including
other residences and apartments;
(
h) schools as defined
in the Schools Act, 1997 and the land on which they are situated,
including student residences and playing fields and other recreational
facilities owned by the Crown, or in the case of a French first language school,
the Conseil Scolaire Francophone Provincial but not including other residences
and apartments;
(
i) universities and
colleges established under the Memorial University Act and the College
Act, 1996 , and the land on which they are situated, including student
residences and playing fields and other recreational facilities owned by them,
but not including other residences and apartments; and
(
j) productive farm land
and woodland and buildings on and used with respect to farm or wood production
as the Minister of Fisheries, Forestry and Agriculture may designate.
(2) Notwithstanding paragraphs (1)(
d) and (f), a
church, place of worship, rectory, or a principal place of residence of a
person referred to in paragraph (1)(
f) shall only be exempt from real property
tax where it is in active use.
Tenant of tax
exempt property
(1) A town council may require a tenant who pays rent or other valuable consideration for
real property exempt from real property tax to pay a tax equivalent to the tax
that would have been payable by the owner if the property were subject to the
real property tax.
(2) A town council shall not require a tenant
referred to in subsection (1) to pay a tax equivalent amount where the owner of
the real property pays to the town a grant-in-lieu of taxes.
Supplementary
assessment
(1) Where
a suppl ementary assessment was completed under
paragraph 24(1)(
a) of the Assessment Act, 2006 , the owner of the real property is liable for the payment of
the real property tax on the basis of the supplementary assessment for the
remaining portion of the calendar year from the earlier of
(
a) the date of
substantial completion; or
(
b) the date of
occupancy of the real property.
(2) Where a suppl ementary
assessment was completed under paragraph 24(1)(b), (c), (d), (
e) or (
f) of the Assessment
Act, 2006 , the owner of the real
property is liable for the payment of the real property tax on the basis
of the supplementary assessment for the remaining portion of the calendar year
from the date of the event that gave rise to that supplementary assessment.
Appeals of
assessments
(1) Where
a person appeals an assessment or supplementary assessment under the Assessment Act, 2006 , the real property
tax is payable based on the assessment or supplementary assessment
notwithstanding the appeal.
(2) The difference
between the amount of the tax collected under subsection (1) and the amount
payable on the basis of the assessment as later determined in the appeal under
the Assessment Act, 2006 shall be paid by the owner or refunded by the town,
according to the decision in the appeal.
Division 3
Business Tax
Business tax
(1) A town council may impose an annual business tax on all
businesses which carry on business in the town.
(2) Where a town council imposes a business tax,
the town council shall set the business tax as follows:
(
a) where a business has a fixed place of
business, the business tax shall be set as either
(
i) a percentage of the assessed value of the real
property used by the business, or
(ii) a base amount plus a percentage of the
assessed value of the real property used by the business; or
(
b) where a business has no fixed place of
business or a business has a fixed place of business that cannot be assessed
under the Assessment Act, 2006, the business tax shall be set as either
(
i) a percentage of the gross revenue of the
business, or
(ii) a base amount plus a percentage of the gross
revenue of the business.
(3) For the purposes of this section, a business
has no fixed place of business if it does not operate from a specific location
for a period of at least one month.
(4) This
section shall
not apply to a regional service board or a municipal service delivery
corporation which may be carrying on business in the town.
Gross revenue
(1) A business that is subject to a business tax calculated
under paragraph 125(2)(
b) shall submit a sworn or affirmed statement as to its
gross revenue in the preceding calendar year by February 1 of the following
year.
(2) Where a business does
not submit a statement of its gross revenue, the town council shall estimate
the gross revenue of the business for the preceding year and calculate the
business tax based on that estimate.
(3) Where a business
which is subject to business tax as calculated under paragraph 125(2)(
b) did
not carry on business in the preceding year, the town council may estimate the
gross revenue of the business and calculate the business tax based on that
estimate.
(4) Where a business
provides records to the town council after the town council makes an estimate
under subsection (2) or (3) that shows to the satisfaction of the town council
an amount of gross revenue different from that estimated by the town council,
the town council shall adjust its tax records at the end of its financial year
and shall either rebate excess business taxes paid by crediting the rebate to
the next year's business tax or add additional business tax owing to the next
year's business tax.
(5) Where a town council
has estimated the gross revenue of a business under subsection (2) or (3), the
business may appeal to the town council for a revised estimate where the
business is able to show a valid reason for the revision to the town council.
Classes and subclasses
of businesses
(1) A town council may establish classes and subclasses of businesses for the
purposes of calculating a business tax.
(2) The percentage of assessed value of real
property referred to in paragraph 125(2)(
a) and the percentage of gross revenue
referred to in paragraph 125(2)(
b) may differ in
respect of different classes and subclasses of businesses.
Division 4
Direct Sellers Tax
Direct sellers
tax
(1) A town council may impose an annual tax upon a direct
seller.
(2) A ta x imposed under
subsection (1) shall be imposed as a fixed amount.
(3) A direct seller
shall only operate in a town in accordance with the terms of a permit issued by
the town council.
(4) This
section shall
not apply to a business upon which business tax is imposed.
(5) In this section,
"direct seller" means a direct seller as defined in the Consumer
Protection and Business Practices Act .
Division 5
Tourist Accommodation Tax
Tourist accommodation
tax
(1) A
town council may, by by-law, impose a tourist accommodation tax to be paid by
guests of tourist accommodations located in the town.
(2) A by-law referred to
in subsection (1) shall
(
a) state the rate of
the tourist accommodation tax or the amount of the tourist accommodation tax
payable; and
(
b) state the manner
in which the tourist accommodation tax is to be collected.
(3) A by-law referred to in subsection (1) may provide for
(
a) exemptions
from the tourist accommodation tax;
(
b) penalties for
failing to comply with the by-law;
(
c) interest on
outstanding tourist accommodation tax or penalties;
(
d) the assessment of
outstanding tourist accommodation taxes, penalties and interest;
(
e) audit and
inspection powers; and
(
f) the establishment
and use of such enforcement measures as the town considers appropriate if an
amount assessed for outstanding tourist accommodation tax, penalties or
interest remains unpaid after it is due, including the creation and
registration of liens.
(4) Notwithstanding paragraph (2)(a), the rate of
the tourist accommodation tax shall not exceed 4% of the daily rate for the
tourist accommodation.
(5) A tourist accommodation tax shall be collected
by operators of tourist accommodations as agents of the town.
(6) A town council shall
not impose a tourist accommodation tax under this
section on any persons and
entities prescribed in the regulations.
(7) T he use of one or more enforcement measures established by a
by-law under this
section does not prevent a town council from using any other
remedy available in law to enforce the payment of amounts owing under this
section.
(8) A town council that imposes a tourist
accommodation tax shall use the proceeds of the tax collected for the purposes of
tourism.
(9) Notwithstanding subsection (8), a town may use
12% or less of the proceeds of the accommodation tax collected to pay any
administration costs relating to the imposition of the tourist accommodation
tax.
(10) The Lieutenant-Governor in Council may, by
regulation,
(
a) exempt persons and entities from a tourist
accommodation tax imposed by a by-law referred to in subsection (1);
(
b) prescribe conditions and restrictions with
respect to the imposition of a tourist accommodation tax; and
(
c) prescribe the methods of collection of a
tourist accommodation tax.
Division 6
Fees
Fee for service
130. A
town council may charge a fee for the services provided by the town.
Water and sewer
fee
(1) A town served by a water system, sewer system or a
water and sewer system shall impose upon the owner of real property a water and
sewer fee for services received or deemed to be received.
(2) For the purposes of subsection (1), unless a
town council, by by-law, provides otherwise, where a sewer or water main runs
along the land of any person, that person is deemed to receive those services
notwithstanding that the sewer or water mains are not physically connected by
lateral lines to any residence, building or other structure located on the land
of that person.
Method of
calculating water and sewer fees
(1) A water and sewer fee shall, for residential and commercial
buildings or property on which there is no building, be set as
(
a) a fixed amount;
(
b) a metered rate; or
(
c) an amount calculated in accordance with a
method that
(
i) is established in a by-law, and
(ii) determines usage by a means other than a
meter.
(2) A water and sewer
fee may differ in respect of residential and commercial buildings, and
different classes of residential buildings and commercial buildings.
(3) A town council may
require that a water meter be installed on a building in the town or the town
may install a water meter on a building in the town, and the cost of that
installation shall be a cost of the owner of the building.
(4) Where the water and
sewer fee is set at a metered rate and there is no meter installed or working
in relation to a building to which a metered rate applies, the town council
may, for the purpose of imposing the water and sewer fee, estimate the quantity
of water used in that building until a meter is installed and working.
(5) Where a town council
estimates the quantity of water used in a building under subsection (4) and the
person who is liable for the water and sewer fee calculated on that estimate is
of the opinion that the estimate is incorrect, the person may appeal to the
town for an adjustment of the estimate.
(6) Notwithstanding that
a person appeals an estimate under subsection (5), the person shall pay the
water and sewer fee as calculated on the estimate of the quantity of water used
and where it is determined in the appeal that an adjustment of the payment of
the fee is required, the town council shall make the adjustment in accordance
with the appeal decision.
(7) Notwithstanding
subsection (1), an amount or rate charged in relation to a building owned by
the Crown or an agency of the Crown including schools as defined in the Schools
Act, 1997 and public health care facilities owned and operated by the
Provincial Health Authority shall be the same amount or rate as charged to
similar buildings in the town.
(8) Notwithstanding
section 131 and subsections (1) and (7), the minister may make regulations to
establish a water and sewer fee applicable to and a maximum allowable amount of
water and sewer fee payable by the owner of real property located inside or
outside a town that is connected to the water system or sewer system of that
town or to both where that real property is the location of a
(
a) school operated
under the Schools Act, 1997 ;
(
b) public health care
facility owned and operated by the Provincial Health Authority; or
(
c) building owned by
the Crown.
(9) A water and sewer fee
imposed in accordance with subsection (8) shall be considered to have been
imposed, with the necessary changes, under
section 131 and subsections (1) and
(7).
Publication
(1) A town shall publish annually
(
a) a copy of a
resolution adopting its fee structure; and
(
b) a copy of the fee structure.
(2) Subsection (1) does not apply to a resolution
of the town council that settles the amount of fees owed by a person.
(3) The liability of a person to pay a fee is not
affected by the failure of a town to comply with subsection (1).
Interest on
arrears
134. A town council may charge simple or compound interest on
fees that are not paid on or before the date on which they become due, if,
before making that charge, the town council passes a resolution establishing
(
a) whether the interest
shall be simple or compound;
(
b) th e rate of interest
to be charged; and
(
c) when the interest
shall be applied.
Division 7
Local Improvement Fees
Local improvements
(1) A
town council may undertake any local improvement it considers necessary for the
benefit of all or part of the town and impose a local improvement fee against
each parcel of land that will benefit from the local improvement.
(2) A local improvement is a work that the town
council considers to be of greater benefit to an area of the town than to the
whole town and may include
(
a) a local capital project undertaken by a town;
and
(
b) connections to real property for sewer,
drainage and water mains provided by a town.
Local improvement
by-law
136. A
town council may, by by-law,
(
a) authorize a local improvement;
(
b) identify which parcels of land will benefit
from a local improvement;
(
c) specify how to determine
(
i) the total cost of a local improvement,
including associated operating and maintenance costs, and
(ii) the total cost or a proportion of that cost
that is to be levied against each parcel of land that will benefit from the
local improvement;
(
d) establish the local improvement fee to be
charged against each parcel of land that will benefit from the local
improvement;
(
e) levy the total cost or a proportion of the
cost of a local improvement against the parcels of land that will benefit from
the local improvement and provide the means for assessment, collection and
payment of the cost; and
(
f) authorize carrying out the local improvement.
Notice of local
improvement
(1) A town clerk shall send to all affected property owners who will be liable to
pay the cost of the proposed local improvement a written notice that includes
(
a) a
summary of the details of the local
improvement including the cost, as specified in the by-law under paragraph 136(c);
and
(
b) the procedure to be followed to object to the
local improvement.
(2) A notice sent for the purposes of subsection
(1) is deemed to have been received 10 days after the date on which it was
sent.
(3) An affected property owner who wishes to
object to the local improvement may file a written objection with the town
clerk within 30 days of deemed receipt of the notice sent under subsection (1).
(4) At the end of the 30-day period referred to in
subsection (3), the town clerk shall count any objections received.
Public hearing
138. Where
a town receives 2 or more objections to a proposed local improvement within the
time period referred to in subsection 137(3), the town council shall set a time
for a public hearing regarding the proposed local improvement and provide
written notice to the affected property owners of the proposed local
improvement in the manner determined by the town council.
Decision of
council
139. After
a town council completes a public hearing required under
section 138, the town
council may
(
a) proceed with the local improvement as proposed
or with modifications; or
(
b) rescind the by-law made under
section 136 and
not proceed with the proposed local improvement.
Agricultural land
140. A town council may defer the payment of all or a portion of
the payment of a local improvement fee relating to land primarily used for
agriculture while that land continues to be used for that purpose.
Equitable
application
141. Where a town council undertakes a local improvement
and imposes a local improvement fee, the town council shall, afterward, impose
a local improvement fee on the real property similarly benefited by the local
improvement.
Local improvement
fee
142. A local improvement fee imposed under this Part shall be
paid by the owner of real property at the time and in the manner set out in the
by-law made under
section 136.
Interest on
arrears
143. A town council may charge simple or compound interest on
local improvement fees that are not paid on or before the date on which they
become due, if, before making that charge, the town council passes a resolution
establishing
(
a) whether the interest
shall be simple or compound;
(
b) th e rate of interest
to be charged; and
(
c) when the interest
shall be applied.
Division 8
Liens and