O.Reg 403/02 - Debt and financial obligation limits for municipalities
Regulation - LGIC
Bill or Act:
Summary of Decision:
Regulation has been approved, and was filed July 31, 2009.
May 1, 2009
Summary of Proposal:
As background to the proposed regulation:
-The Public Sector Accounting Board has approved revisions to its accounting principles (PS3150). The new principles require municipalities to report Tangible Capital Assets on their Statements of Financial Position (i.e. balance sheet) for 2009. The new principles also require a new format for municipal financial statements, and that the Tangible Capital Assets be amortized on the Statement of Operations (i.e. income statement);
-Proposed legislation (Bill 162, the Budget Measures Act, 2009) would, if passed by the legislature, make changes to provisions for municipal budgets and to other provisions in the Municipal Act, 2001, in connection with the changes to accounting principles.
The Debt and Financial Obligation Limits regulation (O. Reg 403/02) prescribes terms under which an Ontario municipality can undertake long-term debt.
That regulation, in summary, places a limit on how much a municipality may expend annually in principal and interest payments on long-term debt, without the municipality first seeking Ontario Municipal Board approval.
Ministry of Municipal Affairs and Housing now proposes housekeeping amendments to Ontario Regulation 403/02 as consequential to proposed changes in budget terminology in Bill 162.
The proposed regulation is provided to facilitate public consultation. There has been no decision to finally proceed with the proposed regulation. The form and content of the proposed regulation are subject to change, including as a result of comments received during the consultation process.
Frances Johnston, Manager
Municipal Finance Policy Branch
Ministry of Municipal Affairs and Housing
777 Bay St. 13th floor
Toronto, ON M5G 2E5
fax: (416) 585-6315
July 31, 2009