Regulation - Minister

Proposal for a regulation concerning expenses in municipal budgets under the Municipal Act, 2001

Regulation Number(s):
Instrument Type:
Regulation - Minister
Bill or Act:
Bill 162 – the proposed Budget Measures Act, 2009 - proposed amendments to the Municipal Act, 2001 in Schedule 19
Summary of Decision:
Regulation has been approved, and was filed July 31, 2009.
Further Information:
Proposal Number:
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 municipal budgets and to other provisions in the Municipal Act, 2001, in connection with the changes to accounting principles.

The proposed regulation would:

-Allow municipalities and 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 municipalities and 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 council or board in respect of those expenses,
-would contain at least:
1) an estimate of the change in the accumulated surplus of the municipality or local board to the end of the year,
2) an analysis of the estimated impact of the municipality’s or board’s recommendations on the future tangible asset funding requirements of the municipality 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
Effective Date:
July 31, 2009