Regulation - Minister
Proposal for a regulation concerning expenses in City budgets under the City of Toronto Act, 2006
Regulation Number(s):
286/09
Instrument Type:
Regulation - Minister
Bill or Act:
Bill 162 – the proposed Budget Measures Act, 2009 - proposed amendments to the City of Toronto Act, 2006 in Schedule 4
Summary of Decision:
Regulation has been approved, and was filed July 31, 2009.
Further Information:
286/09
Proposal Number:
09-MAH003
Posting Date:
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 City budgets and to other provisions in the City of Toronto Act, 2006, in connection with the changes to accounting principles.
The proposed regulation would:
-Allow the City and its local boards to choose to exclude from the budget all or a portion of amortization expenses, post-employment benefits and solid waste landfill closure and post-closure expenses;
-Beginning in 2010, require the City and its local boards, before adopting a budget that would exclude the above expenses, to prepare and adopt a report;
-Provide for certain specifics of the report. The report:
-would be on the recommendations of the City council or local board in respect of those expenses,
-would contain at least:
1) an estimate of the change in the accumulated surplus of the City or local board to the end of the year,
2) an analysis of the estimated impact of the City’s or board’s recommendations on the future tangible asset funding requirements of the City or board;
-Require the ministry to initiate a review of the regulation before the end of 2012.
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.
-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 City budgets and to other provisions in the City of Toronto Act, 2006, in connection with the changes to accounting principles.
The proposed regulation would:
-Allow the City and its local boards to choose to exclude from the budget all or a portion of amortization expenses, post-employment benefits and solid waste landfill closure and post-closure expenses;
-Beginning in 2010, require the City and its local boards, before adopting a budget that would exclude the above expenses, to prepare and adopt a report;
-Provide for certain specifics of the report. The report:
-would be on the recommendations of the City council or local board in respect of those expenses,
-would contain at least:
1) an estimate of the change in the accumulated surplus of the City or local board to the end of the year,
2) an analysis of the estimated impact of the City’s or board’s recommendations on the future tangible asset funding requirements of the City or board;
-Require the ministry to initiate a review of the regulation before the end of 2012.
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.
Contact Address:
Chris Terech, Manager
Municipal Finance Policy Branch
Ministry of Municipal Affairs and Housing
777 Bay St. 13th floor
Toronto, ON M5G 2E5
Fax: (416) 585-6315
Municipal Finance Policy Branch
Ministry of Municipal Affairs and Housing
777 Bay St. 13th floor
Toronto, ON M5G 2E5
Fax: (416) 585-6315
Effective Date:
July 31, 2009
Decision:
Approved