Bill No. 95 of 1951. A BILL TO PROVIDE FOR ASSISTANCE TO MUNICIP ALITIES. NOTE. This Bill enacts a new Act to be known as "The Municipal Assistance Act". The intention of the Act is to benefit taxpayers by en­ abling a reduction in their municipal taxes and to benefit municipalities by providing them with additional revenue. The Bill provides for the establishment of a municipal assistance fund by the Provincial Treasurer.

In each year the Provincial Treasurer pays into the fund a pro­ portion of the fuel oil tax equivalent to four cents per gallon for each gallon of fuel oil on which tax was collected under The Fuel Oil Tf»x Act during the immediate preceding calendar year. The Provincial Treasurer is authorized to make two dif­ ferent types of payments from the fund to municipalities, namely, unconditional municipal revenue grants and tax reduction subsidies.

For the purpose of calculating tax reduction subsidies, the actual assessment for taxation purposes of each mu­ nicipality as at the thirty-first day of December of the pre­ ceding year is used subject to ,certain limitations. In the case of land, one hundred per cent of its value for assess­ ment purposes is taken. The actual assessment of build­ ings and improvements is used in the case of cities up to sixty per cent of the 1942 value for assessment purposes, and in the case of all municipalities other than cities up to one hundred per cent of the 1942 value for assessment purposes.

The basic mill rate of a municipality is the highest mill rate it has levied in any year after 1949 where its basis of assessment is unchanged. In the 'case of counties, municipal districts, improvement districts or special areas, where the aggregate mill rate for municipal, s,chool, municipal hos­ pital and hospital agreement purposes may differ in dif­ ferent portions of the county, municipal district, improve­ ment district or special area, the basic mill rate for any portion is the highest mill rate levied in that portion in any year after 1949.

ii Where the basis of assessment is changed a comparable change is made in the basic mill rate. For ealc.h. mil! of t~x reduction below the basic mill rate the munlCIpahty wIll receive a subsidy equivalent to the revenue from that mill of taxation up to a maximum of three mills of subsidy. After deducting from the fund the amount required for tax reduction subsidies, the balance remaining is to be dis­ tributed to municipalities as unconditional municipal rev­ enue grants. The Bill sets out how the assessment of the municipality for grant purposes will be computed.

Land is to be com­ puted at one hundred per cent of its value for assessment purposes. Buildings and improvements are to be computed, in the 'case of cities at sixty per cent of the 1942 value for assessment purposes, in the case of towns, municipal dis­ tricts, improvement districts and special areas at one hundred per cent of the 1942 value for assessment purposes and, in the case of villages at one hundred and ten per cent of the 1942 value for assessment purposes.

Each municipality receives the same percentage of the total of all munidpal revenue grants as its assessment bears to the total assessment of all municipalities. Provision is made in the Bill for the procedure to be fol­ lowed in certain special cases.

These special ,cases include municipalities where there is an emergency or disaster or where the municipality commences to provide standard ward hospitalization at a direct cost to the patient of one dollar per day, or where other extraordinary circumstances or reasons exist which may be approved by the Lieutenant Governor in Council, either generally or in any particular case. If, in any of these special cases, the coun,cil is un­ able to reduce the mill rate sufficiently to ,qualify for the tax -reduction subsidy, the council may submit particulars to the Provincial Treasurer.

The Provincial Treasurer then has a discretionary power to pay all or part of the tax reduction subsidy where the municipality would have qualified for the grant except for the expenses, circum­ stances or reasons arising in these special cases. If the Provincial Treasurer has any question as to the portion of t~e mill rate that is directly attributable to the expenses, CIrcumstances or reasons covered by these special cases he may 'refer it to the Board of Public Utility Commissioners for a finding.

The Lieutenant Governor in Council is empowered to make regulations relating to the administration of the Act or to facilitate the carrying out of its provisions. Any grant made pursuant to this Act is unconditional as to its use and the council of the municipality may expend it in its discretion for any purpose within the powers of the municipality.

iii It will be necessary for the cities of the Province tD ad­ just their assessment rDlls to confDrm with the prDvisiDns .of The City Act which is befDre the Legislature. These unifDrm adjustments which already have been made in all .other municipalities will nDt be effective fDr taxatiDn pur­ pDses in the cities until 1952.

Accordingly, it is provided fDr the year 1951 .only that nD tax reduction subsidies will be paid to the cities but that a ,cDrrespDnding upward ad­ justment in their uncDnditiDnal munidpal revenue grants will be made .of such amount as the Lieutenant GovernDr in Council, in his dis·cretiDn, may designate for each city. This Bill CDmes into fDrce upon assent. KENNETH A. McKENZIE, Legislative Counsel. (This note does not form any part of the Bill but is offered in explanation of its provisions.)

BILL No. 95 of 1951. . Ari 'Actto Provide for Assistance to Municipalities. (Assented to , 1951.) HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows:

Short Title. 1. This A'ct may be cited as "The Municipal Assistance

Short title A·ct". ,. Interpretatio,n. 2. In this Act, unless the ,context otherwise requires,-' ~~~rpreta- (a) "basic mill rate" means,- "basic mill (

i) in the case of a city, town or village, the rate" aggregate of all mill rates for municipal, school, munidpal hospital and hospital agree­ ment purposes levied in that city, town or village; and (ii) in the case of any portion of a ,county, munici­ pal district; improvement district or special area, the aggregate of all mill rates for such purposes levied in that portion of the county, municipal distri.ct, improvement district or special area; (b) "council" means, in respect of an improvement dis- "council" trict or special area, the Minister of Municipal Affairs'; (c) "fund" means the municipal assistance fund "fund" established under this Act; (d) "municipality" means any city, town, village, :'municipal­ county, municipal district, improvement district or Ity" . . special' area.

Intention of Act. 3. The ,intention of this A'ct is,- Intention of Act (

a) to benefit taxpayers by enabling a reduction in their municipal taxes; and (

b) to benefitmunicipalitie.s by providing them with additional revenue.

Municipal assistance fund Payment of assistance Mc,thod of calculating tax reduction subsidies Basic mill rate 2 Municipal Assistance Fund. 4.

(1) The Provincial Treasurer shall establish a fund to be known as the municipal assistance fund.

(2) In each year the Provincial Treasurer shall pay into the fund a portion of -the fuel oil tax imposed under The Fuel Oil Ta·x Act equivalent to the net receipts from four cents per gallon for each gallon of fuel oil on whi,ch tax was collected during the immediately preceding calendar year. 5. The Provincial T'reasurer, in ea'ch year, may p.ay from the fund to each mupicipality,- (

a) a tax reduction subsidy; and (

b) an unconditional municipal revenue grant. Tax Reduction Subsidy. 6.

(1) For the purpose of calculating tax reduction sub­ sidies, the actual 'assessment for taxation purposes of each municipality as at the thirty-first day of December of the preceding year shall be used subject to the limitations set out in subsections (2) and (3).

(2) The actual assessment of lands shall be used up to one hundred per cent of its 1942 value for alssessment purposes.

(3) The actual assessment of buildings and improvements shall Ibe used,- (

a) in the case of cities, up to sixty per cent of the 1942 value for assessment purposes; (

b) in the case of an municipalities other than cities, up to one hundred per cent of the 1942 value for assessment purposes. 7.

(1) The basic mill rate,- (

a) of a city, town or village, is the highest mill rate it has levied in any year after 1949; and (

b) of any portion of a county, municipal district, im­ provement district or special area, is the highest mill rate that has been levied in that portion in any year after 1949; where its basis of assessment is unchanged.

(2) Where the basis of assessment of a municipality is changed,- (

a) the Provincial Treasurer shall calculate what the mill rate would have been in order to produce the same amount of revenue in the year in which the basic mill rate was levied if the changed basis of assessment had been in effect in that year; (

b) the mill rate calculated by the Provincial Treasurer under clause (

a) shaH be deemed to be the basic mill rate of the municipality, until a higher mill rate is levied.

3 8. In each year the Provincial Treasurer shall pay a tax Payment reduction subsidy from the fund to each municipality where ~!J~~tion the council fixes the mill rate 'Of that municipality, or of a subsidy portion of that municipality, below the basic mill rate of the municipality 'Or of the portion of the municipality. 9. The tax reduction subsidy shall ];)e an am'Ount which, Amount of in the opinion of the Pro.vincial Treasurer, is equal to the ~:~uction reduction in revenue of the municipality resulting from any subsidy reduction in mill rate bel'Ow the basic min rate up to a maximum 'Of three mills. Municipal Revenue Grants. 10.

(1) For the purpose of calculating municipal revenue Me,thod of grants, the total assessment for grant purposes of each :~~Y~f~!:lg municipality shall be computed on the basis of the land, revenue buildings land improvements on the assessment r'OIl as at the grants thirty-first day 'Of December 'Of the preceding year.

(2) Larid shallibe computed,- (

a) in the case of all municipalities other than villages, at one hundred per cent 6f its value f'Or assessment purpo.ses; (

b) in the case of villages, at one hundred and ten per cent of its value for ass'essment purpDses.

(3) Buildings and improvements shall be computed,-, (

a) in the case of cities, at sixty per cent of the 1942 value f'Or assessment purposes; (

b) in the case of towns, c'Ounties, municipal districts, improvement districts and special areas, at one hundred per cent 'Of the 1942 value for assessment purposes; (

c) in the case 'Of villages, at one hundred and ten per ,cent of the 1942 value for assessment purposes. 11. In each year the balance rem'aining in the fund after Disposition making pro.visio.n for the payment of the tax reduction sub- of surplus sidies payable in that year, shall be distributed to municipali- ties as unc'Onditional municipal revenue grants. 12. The municipal revenue grant to. a municipality in Amo.ul!t of any year shall be the same percentage of the total of all ~~~ltPal municipal revenue grants in that year as the percentage that its assessment is of the total of all municipal assessments.

Procedure in Special Cases. 13. In any year, if the council is unable to reduce the mill Procedure rate sufficiently to- qualify for all or part of the tax reduc- ~~~~~il tion subsidy by reas'On of _ unable to. , reduce mIll (

a) expenses arising from an emergency or disaster; or rate. . • • • • sufflCIP:ltly (

b) exp~nses Incurred In c'OmmencIng to. prOVIde stand- to qualify ard ward hospitalization at a direct cost to the ~~~~~~on patient 'Of one dollar per day; or subsidy

Payment of tax reduction subsidy in compliance with

section 13 Reference of question to Board of Public Utility Com­ missioners Regulations Submission to Provincial Treasurer of state­ ments, etc. Use of grants un­ conditional 4 (0) such other extraordinary circumstances .or reasons as may be appr.oved by the Lieutenant Governor in Council, either generally or in any particular case; the council may submit· particulars to the Provincial Treasurer. 14. The Provincial Treasurer, in his discretion, may pay all or part of the tax reduction subsidy to a municipality t~at W'Ould have qualified therefor except for the expenses, CIr­ cumstances or reasons set out in

section 13. 15. The Provincial Treasurer m'ay refer to the Board of Public Utility Commissioners for its finding,- (

a) any question as to the portion of the mill rate that is directly attributable to or made necessary by the expenses, circumstances or reasons set out in sec­ tion 13; (

b) any question as to whether the whole expense esti­ mated .or the entire number of mills levied for any purpose is reas.onably necessary f'Or that purpose; (0) any other question, matter or thing arising in the administration of this Act. General Provisions. 16. The Lieutenant Governor in Council may make regu­ lations,- (

a) governing m1atters relating to the administration of the Act; (

b) prDviding fDr any matter or thing deemed neces­ sary Dr advisable to facilitate the carrying out .of the provisions 'Of this Act a'ccording to their true intent. 17.

(1) Each municipality shall submit to the Provincial Treasurer not later than the thirtieth day of April in any year,- (

a) a certified copy of each by-law by which a mill rate has been established for that year and for the im­ mediately preceding year; (

b) a certified statement showing the tDtal assessment 'Of that municipality as at the preceding thirty-first day of December.

(2) In the case of a county, municipal district, improve­ ment district or special area, the municipality shall also submit a certified' state'ment of the total asselssment of each portion 'Of the c'Ounty, municipal district, improvement dis­ trict or special area for which a different aggregate mill ra te is Dr m'ay be levied. . 18. Any grant made pursuant to this Act is unconditional as to its use and the council of the municipality, in its dis­ creti'On, may expend it :f.or any purpose within'the powers of the municipality.

5 19. Notwithstanding anything contained in this Act, no N~ tafon tax reduction subsidy shall be paid to any city for the year ~~b~fd~ . 1951, but in lieu thereof the Lieutenant Governor in Council i~~fble In may -authorize the Provincial Treasurer to make a compara- ble increase in the municipal revenue grant to each city of such amount as the Lieutenant Governor in Council, in his discretion, may designate for that city. 20. This Act shall come into force on the day upon which ~~~~~~ce it is assepted to.

No. 95. FOURTH SESSION ELEVENTH LEGISLATURE 15 GEORGE VI 19,51 BILL

An Act to Provide for Assistance to Municipalities. Received and read the First time Second time . Third time ................ .. HON. MR. MANNING. Title: 1951 (11th, 4th) Bill 95,

An Act to Provide for Assistance to Municipalities