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SNL2023

CHAPTER T-6.2

TOWNS AND LOCAL SERVICE DISTRICTS ACT

Amended:

CHAPTER T-6.2

AN ACT RESPECTING TOWNS AND LOCAL SERVICE DISTRICTS

(Assented to November 16, 2023)

Analysis

Short title

Interpretation

PART I

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 II

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 IV

TOWN COUNCIL MATTERS

Plebiscites

Inspection of documents

Copies of documents

Authentication of documents

Public procurement

Agent

Joint ventures

Private services

Expropriation

PART V

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 VI

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 1

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 2

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 3

Business Tax

Business tax

Gross revenue

Classes and subclasses of businesses

Division 4

Direct Sellers Tax

Direct sellers

tax

Division 5

Tourist Accommodation Tax

Tourist accommodation tax

Division 6

Fees

Fee for service

Water and sewer fee

Method of calculating water and sewer fees

Publication

Interest on arrears

Division 7

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 8

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 9

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 10

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 IX

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 X

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 XI

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 1

By-Law Enforcement Officers

By-law enforcement officers

Division 2

Inspections

Inspectors

Powers of inspectors

Order of inspector

Contravention of Act suspected

Telewarrant

Division 3

Removal of Vehicles

Removal of vehicles

Division 4

Council Orders

Council orders

Appeal

Division 5

Violation Notices

Violation notices

Issuance of summons re: contravention of by-laws

Division 6

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 XV

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

This Act may be cited as the Towns and Local Service Districts Act.

2023 cT-6.2 s1

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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.

2023 cT-6.2 s2

PART I

PURPOSES AND POWERS

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Purposes of town

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.

2023 cT-6.2 s3

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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.

2023 cT-6.2 s4

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Corporation

A town is a corporation and shall not operate for profit.

2023 cT-6.2 s5

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Broad

interpretation of powers of town

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.

2023 cT-6.2 s6

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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.

2023 cT-6.2 s7

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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.

2023 cT-6.2 s8

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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.

2023 cT-6.2 s9

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By-laws - general powers

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.

2023 cT-6.2 s10

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By-laws - permits, licences

and approvals

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,

(v)

(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.

2023 cT-6.2 s11

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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.

2023 cT-6.2 s12

PART II

INCORPORATION AND RESTRUCTURING OF TOWNS

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Existing towns

A town continued or incorporated under the former Act is continued as a town under this Act.

2023 cT-6.2 s13

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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.

2023 cT-6.2 s14

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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.

2023 cT-6.2 s15

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Notice of intent

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.

2023 cT-6.2 s16

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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.

2023 cT-6.2 s17

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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).

2023 cT-6.2 s18

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Order respecting assets and liabilities

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.

2023 cT-6.2 s19

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Publication of orders

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.

2023 cT-6.2 s20

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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.

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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.

2023 cT-6.2 s22

PART III

TOWN COUNCIL

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Establishment of first town council

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.

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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.

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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.

2023 cT-6.2 s25

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First election

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.

2023 cT-6.2 s26

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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.

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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.

2023 cT-6.2 s28

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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).

2023 cT-6.2 s29

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Mayor status

The mayor is the presiding officer of the town council and is the official head of the town for all ceremonial purposes.

2023 cT-6.2 s30

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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.

2023 cT-6.2 s31

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Powers and duties of deputy mayor

In the absence or incapacity of the mayor, the deputy mayor has the powers and shall exercise the duties of the mayor.

2023 cT-6.2 s32

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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.

2023 cT-6.2 s33

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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).

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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) (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

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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.

2023 cT-6.2 s36

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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.

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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.

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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.

2023 cT-6.2 s39

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Open meetings

All regular and special meetings of a town council and all

meetings of a town council committee shall be open to the public.

2023 cT-6.2 s40

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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)

(

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.

2023 cT-6.2 s41

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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.

2023 cT-6.2 s42

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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.

2023 cT-6.2 s43

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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.

2023 cT-6.2 s44

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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.

2023 cT-6.2 s45

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Rules of procedure

A town council shall adopt rules of procedure for its town council meetings.

2023 cT-6.2 s46

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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.

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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.

2023 cT-6.2 s48

PART IV

TOWN COUNCIL MATTERS

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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 .

2023 cT-6.2 s49

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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.

2023 cT-6.2 s50

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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.

2023 cT-6.2 s51

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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.

2023 cT-6.2 s52

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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 .

2023 cT-6.2 s53

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Agent

2023 cT-6.2 s54

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Joint ventures

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.

2023 cT-6.2 s55

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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.

2023 cT-6.2 s56

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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.

2023 cT-6.2 s57

PART V

STAFF

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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.

2023 cT-6.2 s58

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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.

2023 cT-6.2 s59

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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.

2023 cT-6.2 s60

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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.

2023 cT-6.2 s61

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Use of employees

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.

2023 cT-6.2 s62

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Expenditures town manager

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.

2023 cT-6.2 s63

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Emergency expenditures

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.

2023 cT-6.2 s64

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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).

2023 cT-6.2 s65

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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.

2023 cT-6.2 s66

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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.

2023 cT-6.2 s67

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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.

2023 cT-6.2 s68

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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.

2023 cT-6.2 s69

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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.

2023 cT-6.2 s70

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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.

2023 cT-6.2 s71

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Salaries

A town council may establish the salaries of town employees.

2023 cT-6.2 s72

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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.

2023 cT-6.2 s73

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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.

2023 cT-6.2 s74

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Retirement

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.

2023 cT-6.2 s75

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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.

2023 cT-6.2 s76

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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.

2023 cT-6.2 s77

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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.

2023 cT-6.2 s78

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Pension portability

(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.

2023 cT-6.2 s79

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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.

2023 cT-6.2 s80

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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.

2023 cT-6.2 s81

PART VI

FINANCE

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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.

2023 cT-6.2 s82

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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).

2023 cT-6.2 s83

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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.

2023 cT-6.2 s84

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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.

2023 cT-6.2 s85

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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.

2023 cT-6.2 s86

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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.

2023 cT-6.2 s87

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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.

2023 cT-6.2 s88

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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

(

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.

2023 cT-6.2 s89

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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.

2023 cT-6.2 s90

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Books of account

A town shall ensure that correct and complete books of account are kept of the financial dealings of the town.

2023 cT-6.2 s91

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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.

2023 cT-6.2 s92

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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.

2023 cT-6.2 s93

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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.

2023 cT-6.2 s94

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Extension or waiver of audit

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.

2023 cT-6.2 s95

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Auditor's powers

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.

2023 cT-6.2 s96

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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.

2023 cT-6.2 s97

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Interim audit report

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.

2023 cT-6.2 s98

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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.

2023 cT-6.2 s99

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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.

2023 cT-6.2 s100

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Currency

Where a town borrows money under

section 99 or 100, the money shall be stated in Canadian currency.

2023 cT-6.2 s101

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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.

2023 cT-6.2 s102

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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.

2023 cT-6.2 s103

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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.

2023 cT-6.2 s104

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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.

2023 cT-6.2 s105

PART VII

TAXES AND FEES

Division 1

Taxation

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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).

2023 cT-6.2 s106

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Effect of extensions

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).

2023 cT-6.2 s107

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First year

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.

2023 cT-6.2 s108

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Duration

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.

2023 cT-6.2 s109

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Tax payment

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.

2023 cT-6.2 s110

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Interest on arrears

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.

2023 cT-6.2 s111

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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.

2023 cT-6.2 s112

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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).

2023 cT-6.2 s113

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Proof of tax

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.

2023 cT-6.2 s114

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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.

2023 cT-6.2 s115

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Tax agreements

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.

2023 cT-6.2 s116

Division 2

Real Property Tax

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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.

2023 cT-6.2 s117

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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.

2023 cT-6.2 s118

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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.

2023 cT-6.2 s119

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Occupier considered owner

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.

2023 cT-6.2 s120

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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.

2023 cT-6.2 s121

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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.

2023 cT-6.2 s122

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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.

2023 cT-6.2 s123

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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.

2023 cT-6.2 s124

Division 3

Business Tax

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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.

2023 cT-6.2 s125

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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.

2023 cT-6.2 s126

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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.

2023 cT-6.2 s127

Division 4

Direct Sellers Tax

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Direct sellers tax

(1) A town council may impose an annual tax upon a direct seller.

(2) A tax 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 .

2023 cT-6.2 s128

Division 5

Tourist Accommodation Tax

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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.

2023 cT-6.2 s129

Division 6

Fees

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Fee for service

A town council may charge a fee for the services provided by the town.

2023 cT-6.2 s130

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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.

2023 cT-6.2 s131

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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) 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;

(

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).

2023 cT-6.2 s132

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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).

2023 cT-6.2 s133

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Interest on arrears

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.

2023 cT-6.2 s134

Division 7

Local Improvement Fees

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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.

2023 cT-6.2 s135

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Local improvement by-law

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.

2023 cT-6.2 s136

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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.

2023 cT-6.2 s137

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Public hearing

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.

2023 cT-6.2 s138

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Decision of council

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.

2023 cT-6.2 s139

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Agricultural land

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.

2023 cT-6.2 s140

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Equitable application

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.

2023 cT-6.2 s141

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Local improvement fee

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.

2023 cT-6.2 s142

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Interest on arrears

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.

2023 cT-6.2 s143

Division 8

Liens and Arrears

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Lien

(1) Taxes fixed, established and imposed in respect of real property, including

(

a) a real property tax; and

(

b) a business tax, where the owner of the business is also the owner of the real property occupied by that business,

together with interest owing on those taxes, cons titute a lien upon that real property except where the real property is sold for tax arrears by the town council.

(2) Water and sewer fees and local improvement fees imposed in respect of real property together with interest owing on those fees, cons titute a lien upon that real property except where the real property is sold for arrears of those fees by the town council.

(3) A lien under subsection (1) or (2) attaches on the date on which the relevant tax or fee was due to the town and continues for a period of 6 years after that attachment or 6