Bill 19 - Community Funding Act

BILL 19

Community Funding Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

DEFINITIONS AND INTERPRETATION

Definitions

1 The following definitions apply in this Act.

“community” means a municipality, rural community or local service district. (communauté)

“excluded costs” means (coûts exclus)

(a) with respect to a municipality, the total value of the cost of assessment, water cost and environmental development services for the municipality, as contained in the estimate of the money required for the operation of the municipality referred to in paragraph 87(2)(a) of the Municipalities Act for the previous year,

(b) with respect to a rural community,

(i) if the rural community is in existence immediately before January 1 of the year before this Act comes into force, the total value of the cost of assessment, water cost, transportation services, except for costs associated with street lighting, environmental development services, police services and the portion of fiscal services attributable to transportation services for the rural community, as contained in the estimate of the money required for the operation of the rural community referred to in paragraph 190.081(2)(a) of the Municipalities Act for the previous year, and

(ii) if the rural community was incorporated as a rural community during the year before this Act comes into force, the costs that, in the opinion of the Minister, should be excluded to ensure the rural community receives comparable treatment with the rural communities referred to in subparagraph (i).

“initial per capita allocation” means the total amount of the core funding component of the community funding and equalization grant for local service districts determined by the Lieutenant-Governor in Council under paragraph 5(c) divided by the total population of the local service districts. (allocation initiale par habitant)

“group” means a group of municipalities or a group of rural communities established by regulation. (groupe)

“group tax base” means (assiette fiscale du groupe)

(a) with respect to municipalities, the total of the municipal tax base of each municipality in a group, and

(b) with respect to rural communities, the total of the rural community tax base of each rural community in a group.

“local service district tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon thereafter as practicable: (assiette fiscale des districts de services locaux)

(a) the total assessed value of all real property liable to taxation under the Assessment Act in a local service district, excluding real property referred to in paragraph (b.1) of the definition “real property” under the Assessment Act;

(b) the assessed value of all real property in a local service district owned by the Crown in right of New Brunswick;

(c) the assessed value of real property in a local service district owned by the Crown in right of Canada determined in accordance with section 4; and

(d) one-half of the assessed value of any real property in a local service district referred to in paragraphs (a), (b) and (c) that is non-residential property.

“Minister” means the Minister of Environment and Local Government and includes any person designated by the Minister to act on the Minister’s behalf. (ministre)

“municipal tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon thereafter as practicable: (assiette fiscale municipale)

(a) the total assessed value of all real property liable to taxation under the Assessment Act in a municipality, excluding

(i) real property owned by the municipality,

(ii) real property of utility commissions owned by the municipality, and

(iii) real property referred to in paragraph (b.1) of the definition “real property” as defined in the Assessment Act;

(b) the assessed value of real property in a municipality owned by the Crown in right of New Brunswick;

(c) the assessed value of real property in a municipality owned by the Crown in right of Canada determined in accordance with section 2;

(d) the assessed value of real property in a municipality that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act; and

(e) one-half of the assessed value of any real property in a municipality referred to in paragraphs (a), (b) and (c) that is non-residential property.

“municipal tax base per capita” means the quotient resulting from dividing the municipal tax base by the population of the municipality. (assiette fiscale municipale par habitant)

“net budget” means (budget net)

(a) with respect to a municipality, the estimate of the money referred to in paragraph 87(2)(a) of the Municipalities Act and approved by the Minister in the previous year, less all non-tax revenues, and

(b) with respect to a rural community, the sum of the estimate of the money referred to in paragraph 190.081(2)(a) of the Municipalities Act and approved by the Minister in the previous year and the estimate of the money prepared by the Minister under paragraph 190.082(5)(a) of that Act in the previous year, less all non-tax revenues.

“non-residential property” means non-residential property as defined in the Assessment Act. (bien non résidentiels)

“number of road kilometres” means the sum of (nombre de kilomètres de route)

(a) the total kilometres of the highways located within the territorial limits of the municipality or the rural community that have been designated by the Minister of Transportation and Infrastructure under section 15 of the Highway Act and classified by the Minister of Transportation and Infrastructure under section 14 of that Act, and

(b) the total kilometres of other municipal roads and streets or rural community roads and streets in the previous year.

“previous year” means the year before the year for which the community funding and equalization grant is to be determined. (année précédente)

“police services” means police services as defined in the Police Act or a police protection service as that term is used in the Municipalities Act, as the case may be. (services de police)

“population” means the population of a community determined under section 24. (population)

“Provincial Police Service Agreement” means the Provincial Police Service Agreement entered into by the Government of Canada and the Province of New Brunswick and that came into force on April 1, 2012. (Entente sur le service de police provincial)

“region” means a region established under the Regional Service Delivery Act. (région)

“residential property” means residential property as defined in the Assessment Act. (bien résidentiels)

“revised net budget” means the net budget less the excluded costs. (budget net révisé)

“rural community tax base” means the total of the following amounts, computed on or before October 15 in the previous year or as soon thereafter as practicable: (assiette fiscale de la communauté rurale)

(a) the total assessed value of all real property liable to taxation under the Assessment Act in a rural community, excluding

(i) real property owned by the rural community,

(ii) real property of utility commissions owned by the rural community, and

(iii) real property referred to in paragraph (b.1) of the definition “real property” as defined in the Assessment Act;

(b) the assessed value of all real property in a rural community owned by the Crown in right of New Brunswick;

(c) the assessed value of real property in a rural community owned by the Crown in right of Canada determined in accordance with section 3;

(d) the assessed value of real property in a rural community that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act; and

(e) one-half of the assessed value of any real property in a rural community referred to in paragraphs (a), (b) and (c) that is non-residential property.

“rural community tax base per capita” means the quotient resulting from dividing the rural community tax base by the population of the rural community. (assiette fiscale de la communité rurale par habitant)

“tax rate” means (taux d’imposition)

(a) with respect to municipalities, the quotient of the estimate of money referred to in paragraph 87(2)(b) of the Municipalities Act in the previous year divided by each $100 of the municipal tax base of the previous year, and

(b) with respect to rural communities, the quotient of the sum of the estimates of money referred to in paragraphs 190.081(2)(b) and 190.082(5)(b) of the Municipalities Act in the previous year divided by each $100 of the rural community tax base in the previous year.

Calculation of the municipal tax base

2(1) When computing the municipal tax base for the purposes of paragraph (c) of the definition “municipal tax base” in section 1, the assessed value of real property in a municipality owned by the Crown in right of Canada is determined by the Minister in accordance with subsection (2).

2(2) The assessed value of real property in a municipality owned by the Crown in right of Canada shall be determined by the Minister by making

(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and

(b) such other adjustments as may be required to be made in respect of real property reclassifications and alterations and other modifications to real property so as to reflect the anticipated property value determined under the Payments in Lieu of Taxes Act (Canada).

Calculation of the rural community tax base

3(1) When computing the rural community tax base for the purposes of paragraph (c) of the definition “rural community tax base” in section 1, the assessed value of real property in a rural community owned by the Crown in right of Canada is determined by the Minister in accordance with subsection (2).

3(2) The assessed value of real property in a rural community owned by the Crown in right of Canada shall be determined by the Minister by making

(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and

Calculation of the local service district tax base

4(1) When computing the local service district tax base for the purposes of paragraph (c) of the definition of “local service district tax base” in section 1, the assessed value of real property in a local service district owned by the Crown in right of Canada shall be the amount determined by the Minister in accordance with subsection (2).

4(2) The assessed value of real property in a local service district owned by the Crown in right of Canada shall be determined by the Minister by making

(a) adjustments to the assessed value of the real property to reflect the second preceding year’s property value determined under the Payments in Lieu of Taxes Act (Canada), and

4(3) Where an amount credited by the Minister to a local service district in respect of a grant under the Payments in Lieu of Taxes Act (Canada) for a fiscal year is less than the amount actually received by the Province, the Minister shall for the second next ensuing year cause the difference to be credited to the estimate under paragraph 27.01(1)(a) of the Municipalities Act.

4(4) Where an amount credited by the Minister to a local service district in respect of a grant under the Payments in Lieu of Taxes Act (Canada) for a fiscal year exceeds the amount actually received by the Province, the Minister shall for the second next ensuing year cause the difference to be debited from the estimate under paragraph 27.01(1)(a) of the Municipalities Act.

COMMUNITY FUNDING

Lieutenant-Governor in Council shall fix the total amount of three components

5 On or before August 31 of the previous year or as soon thereafter as practicable, the Lieutenant-Governor in Council shall fix by order the total amount of the following three components:

(a) the equalization component of the community funding and equalization grant for municipalities and rural communities;

(b) the police equalization component of the community funding and equalization grant for local service districts and for rural communities that have not enacted a by-law authorizing the rural community to provide police services; and

Municipal estimate

6(1) Subject to subsections (2) and (4), the Minister shall approve the proposed municipal estimate for the next year that a municipality submits to him or her in accordance with subsection 87(2) of the Municipalities Act.

6(2) If the Minister requires, a municipality shall participate in partnership budgeting in which the municipality shall provide the Minister with a full explanation and justification of its projected revenues and proposed expenditures.

6(3) If the Minister requires partnership budgeting, the Minister may refuse to approve any part of the proposed municipal estimate that the Minister considers excessive, having regard to the standard of services provided by the municipality in previous years and the proposed development and improvement of services in the municipality.

6(4) The decision of the Minister not to approve a part of the proposed municipal estimate for a municipality under subsection (3) is final and not subject to review.

Rural community estimate

7(1) Subject to subsections (2) and (4), the Minister shall approve the proposed rural community estimate for the next year that a rural community submits to him or her in accordance with subsection 190.081(2) of the Municipalities Act.

7(2) If the Minister requires, a rural community shall participate in partnership budgeting in which the rural community shall provide the Minister with a full explanation and justification of its projected revenues and proposed expenditures.

7(3) If the Minister requires partnership budgeting, the Minister may refuse to approve any part of the proposed rural community estimate that the Minister considers excessive, having regard to the standard of services provided by the rural community in previous years and the proposed development and improvement of services in the rural community.

7(4) The decision of the Minister not to approve a part of the proposed rural community estimate for a rural community under subsection (3) is final and not subject to review.

Payments to municipalities

8 On or before the first business day of each month in each year, the Minister shall pay to each municipality

(a) a portion of the community funding and equalization grant referred to in section 11 or 21, and

(b) one-twelfth of the amount of the estimate of money under paragraph 87(2)(b) of the Municipalities Act.

Payments to rural communities

9(1) On or before the first business day of each month in each year, the Minister shall pay to each rural community

(a) a portion of the community funding and equalization grant referred to in section 11 or 21 that remains after the rural community was credited the portion of the grant for the services provided to the rural community by the Minister, and

(b) one-twelfth of the amount estimated under paragraph 190.081(2)(b) of the Municipalities Act.

9(2) Each year the Minister shall credit to each rural community the portion of the community funding and equalization grant that relates to the provision of services to the rural community by the Minister.

9(3) Each year the Minister shall compute and credit to each rural community the amount to be raised on the rural community tax base for the services provided to the rural community by the Minister.

Amounts credited to local service districts

10 Each year the Minister shall

(a) credit to each local service district the community funding and equalization grant referred to in section 14 or 21, and

(b) compute and credit to each local service district the amount to be raised on the local service district tax base.

Grant for municipalities and rural communities

11 The community funding and equalization grant for a municipality or a rural community is the sum of

(a) the core funding component, and

(b) the equalization component.

Core funding component of the grant for municipalities and rural communities

12(1) The core funding component of the community funding and equalization grant for a municipality or a rural community shall be determined by the following formula:

$0.16 × (A ÷ 100)

where

A means the non-residential tax base of the municipality or the rural community.

12(2) For the purposes of subsection (1), the non-residential tax base of a municipality or a rural community is determined by subtracting from the value of all non-residential property within the municipality or the rural community on January 1 of the previous year the value of

(a) all non-residential property owned by the Crown in right of the Province, the municipality or the rural community, and

(b) all real property referred to in subsections 4(4), (5), (6), (8) and (9) of the Assessment Act within the municipality or the rural community.

Equalization component of the grant for municipalities and rural communities

13(1) The equalization component of the community funding and equalization grant for a municipality or a rural community shall be determined by the following formula:

[(B - C) × D] + E

where

B means the adjusted standard expenditure per capita of the municipality or the rural community;

C means the fiscal capacity of the municipality or the rural community;

D means the population of the municipality or the rural community;

E means the equalization adjustment related to police services in a municipality and rural community receiving police services under the Provincial Police Service Agreement or, in the case of a rural community that has not enacted a by-law authorizing the rural community to provide police services, the results of the calculation under subsection 16(1).

13(2) The determination with respect to the formula under subsection (1) is subject to the following conditions:

(a) if the variable P referred to in subsection (10) or the initial equalization amount referred to in subsection (12) results in a negative value, the variable or the initial equalization amount is deemed to be nil;

(b) all of the amount determined by the Lieutenant-Governor in Council under paragraph 5(a) shall be distributed among the municipalities or the rural communities, but no more.

13(3) For the purposes of subsection (1), the adjusted standard expenditure per capita is determined as follows:

(a) with respect to a municipality, the revised net budget per capita multiplied by the density factor;

(b) with respect to a rural community, the revised net budget per capita and, if the rural community provides transportation services within its boundaries, by adding to the revised net budget per capita

(i) the product of an amount equivalent to the average per capita expenditure for transportation services, including the portion of fiscal services attributable to transportation services of the municipalities that are classified by regulation as Group F, but excluding the per capita cost of street lighting of that group; and

(ii) the population of that portion of the rural community receiving transportation services by the rural community, divided by the total population of the rural community.

13(4) For the purposes of subsection (3), the revised net budget per capita is determined by dividing the total of the revised net budgets of the group by the population of the group.

13(5) For the purposes of subsection (3), the density factor is determined by the following formula:

1 - (F × 0.10)

where

F means the density adjustment index.

13(6) For the purposes of subsection (5), the density adjustment index is determined by the following formula:

(G ÷ H - I ÷ J) ÷ (I ÷ J)

where

G means the population of the municipality;

H means the number of road kilometres in the municipality;

I means the total population of its group;

J means the total number of road kilometres of its group.

13(7) For the purposes of subsection (1), the fiscal capacity of a municipality or a rural community is determined by multiplying

(a) the revised group average tax rate, and

(b) the municipal tax base per capita or the rural community tax base per capita, divided by 100.

13(8) For the purposes of subsection (7), the revised group average tax rate is determined by dividing the revised warrant of the group by the group tax base.

13(9) For the purposes of subsection (8), the revised warrant of the group is determined by the following formula:

K × [1- (L ÷ M)]

where

K means the sum of the revised net budgets of the municipalities and rural communities in the group;

L means the sum of the community funding and equalization grants for the municipalities or the rural communities in the group for the previous year;

M means the sum of the net budgets of the municipalities and the rural communities in the group.

13(10) For the purposes of subsection (1), the equalization adjustment related to police services provided under the Provincial Police Service Agreement in a municipality or a rural community that has enacted a by-law authorizing the municipality or the rural community to provide police services shall be determined by the following formula:

- O + P

where

O means the reduction of the initial equalization amount of a municipality;

P means the police service equalization amount.

13(11) For the purposes of subsection (10), the reduction of the initial equalization amount of a municipality is determined by multiplying

(a) the quotient of the initial equalization amount divided by the revised net budget, and

(b) the amount set out in the estimate of money required for the operation of the municipality referred to in paragraph 87(2)(a) of the Municipalities Act as costs of police services in the previous year.

13(12) For the purposes of subsection (11), the initial equalization amount corresponds to the total obtained from the calculation using the formula under subsection (1), before adding the variable E.

13(13) For the purposes of subsection (10), the police service equalization amount shall be determined by the following formula:

(Q ÷ (R ÷ 100) - S) × (R ÷ 100)

where

Q means the costs of police services provided under the Provincial Police Service Agreement for the year for which the community funding and equalization grant for the municipality or the rural community is determined;

R means the municipal tax base or the rural community tax base;

S means the maximum tax rate related to the costs of police services provided under the Provincial Police Service Agreement.

13(14) For the purposes of subsection (13), the Minister shall determine the maximum tax rate for the costs of police services.

Grant for local service districts

14 The community funding and equalization grant for local service districts is the sum of

(a) the core funding component, and

(b) the police equalization component.

Core funding component of the grant for local service districts

15(1) The core funding component of the community funding and equalization grant for a local service district shall be determined by the following formula:

A1 × B1

where

A1 means the local service district’s adjusted per capita allocation;

B1 means the total population of the local service district.

15(2) For the purposes of subsection (1), the local service district’s adjusted per capita allocation shall be determined by multiplying the initial per capita allocation by the fiscal capacity index.

15(3) For the purposes of subsection (2), the fiscal capacity index shall be determined by the following formula:

1 + (1 - C1)

where

C1 means the fiscal capacity of the region.

15(4) For the purposes of subsection (3), the fiscal capacity of the region shall be determined by dividing the per capita tax base of the region by the overall per capita tax base of all local service districts.

15(5) For the purposes of subsection (4), the per capita tax base of the region shall be determined by dividing the sum of all local service district tax bases in the region by the population of all the local service districts in the region.

15(6) For the purposes of subsection (4), the overall per capita tax base of all local service districts shall be determined by dividing the sum of all local service district tax bases by the population of all local service districts.

Police equalization component of the grant for local service districts and the variable E calculation for rural communities that have not enacted a by-law

16(1) The police equalization component of the community funding and equalization grant for a local service district, or the variable E referred to in subsection 13(1) with respect to a rural community that has not enacted a by-law authorizing the rural community to provide police services, shall be determined by the following formula:

(D1 - E1) × (F1 ÷ 100)

where

D1 means the regional tax rate for the provision of police services;

E1 means the maximum tax rate for the provision of police services in local service districts and in rural communities that have not enacted a by-law authorizing the rural community to provide police services;

F1 means the local service district tax base or the rural community tax base for the rural communities that have not enacted a by-law authorizing the rural community to provide police services.

16(2) For the purposes of subsection (1), the regional tax rate for the provision of police services shall be determined by dividing the total anticipated costs of the provision of police services for the local service districts in the region and for the rural communities in the region that have not enacted a by-law authorizing the rural community to provide police services by the local service district tax base of all the local service districts in the region and by the rural community tax base of all the rural communities in the region.

16(3) For the purposes of subsection (1), the Minister shall establish the maximum tax rate for the provision of police services in local service districts and in rural communities that have not enacted a by-law authorizing the rural community to provide police services.

16(4) If the amount obtained from the calculation of the police equalization component or the variable E using the formula under subsection (1) results in a negative value, the amount or the variable is deemed to be nil.

SPECIAL CIRCUMSTANCES

Conditions on monthly payments to municipalities

17(1) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, a municipality that collects tax and penalties under subsection 6(2) of the Real Property Tax Act is not entitled to the payment under paragraph 8(b) for the period of time of such collection.

17(2) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, where the Minister of Finance collects under the Real Property Tax Act the tax imposed by a municipality under paragraph 5(2)(a) of the Real Property Tax Act, and the penalties on the tax for and on behalf of the municipality, and the municipality claims the tax and penalties from the Minister of Finance, the municipality is not entitled to the payment under paragraph 8(b).

17(3) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, where a municipality has been paid the amounts under paragraph 8(b) for a year, whether before or after the commencement of this subsection, the payment shall be deemed to be in full satisfaction of the payment over to the municipality of the tax imposed under paragraph 5(2)(a) of the Real Property Tax Act and the penalties on the tax for that year.

Conditions on monthly payments to rural communities

18(1) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, a rural community that collects tax and penalties under subsection 6(4) of the Real Property Tax Act is not entitled to the payment under paragraph 9(1)(b) for the period of time of such collection.

18(2) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, where the Minister of Finance collects under the Real Property Tax Act the tax imposed by a rural community under paragraph 5(2)(a.1) of the Real Property Tax Act, and the penalties on the tax for and on behalf of the rural community, and the rural community claims the tax and penalties from the Minister of Finance, the rural community is not entitled to the payment under paragraph 9(1)(b).

18(3) Despite any provision in this Act, other than this section, or in any other Act or any regulation under this Act or any other Act, where a rural community has been paid the amounts under paragraph 9(1)(b) for a year, whether before or after the commencement of this subsection, the payment shall be deemed to be in full satisfaction of the payment over to the rural community of the tax imposed under paragraph 5(2)(a.1) of the Real Property Tax Act and the penalties on the tax for that year.

Grants to municipalities where universities are located

19 If the municipal tax base includes the assessed value of real property in the municipality that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act, the portion of the amount referred to in paragraph 8(b) that is equal to the tax on the real property that would be due and owing to the municipality under subsection 5(2.001) of the Real Property Tax Act if the real property were not exempt from taxation under paragraph 4(1)(l) of the Assessment Act shall be deemed to be a grant paid by the Minister to the municipality.

Grants to rural communities where universities are located

20 If the rural community tax base includes the assessed value of real property in the rural community that is exempt from taxation under paragraph 4(1)(l) of the Assessment Act, the portion of the amount referred to in paragraph 9(1)(b) that is equal to the tax on the real property that would be due and owing to the rural community under subsection 5(2.003) of the Real Property Tax Act if the real property were not exempt from taxation under paragraph 4(1)(l) of the Assessment Act shall be deemed to be a grant paid by the Minister to the rural community.

Grants for newly incorporated or restructured communities

21 Despite any provision of this Act, after the coming into force of this Act, if a community or part of a community is incorporated or is restructured following an amalgamation, an annexation or a decrement of communities or parts of communities, as the case may be, its community funding and equalization grant shall be composed of the community funding and equalization grants that the restructured communities or parts of those communities had received in their previous form in the previous year.

Stimulation grants

22(1) The Lieutenant-Governor in Council may pay to a municipality or rural community or credit to a local service district a stimulation grant to assist the municipality, rural community or local service district in developing or improving the standard of a service or facility.

22(2) A grant paid or credited under subsection (1) may be either current or capital in nature but if the grant is capital in nature, it shall be used by the municipality, the rural community or the Minister to reduce any capital borrowing related to the service or facility for which the grant is made unless the Lieutenant-Governor in Council agrees to pay or credit an annual grant related to the amortization and maintenance costs of a project in lieu of a grant to be used to reduce the capital borrowing.

22(3) The Lieutenant-Governor in Council may attach terms and conditions to a stimulation grant.

22(4) The total amount of stimulation grants to be paid in any year may be fixed by order of the Lieutenant-Governor in Council and shall not exceed 15% of

(a) with respect to municipalities or rural communities, the total of the community funding and equalization grants determined under section 11, and

(b) with respect to local service districts, the total of the community funding and equalization grants determined under section 14.

22(5) Stimulation grants paid to municipalities or rural communities on an amalgamation or annexation are not subject to the limitation provided in subsection (4).

22(6) A stimulation grant may be paid or credited in one or more annual instalments not exceeding ten, but where a stimulation grant is being paid or credited in respect of a service or facility the costs of which are to be met on an amortized basis in relation to principal and interest, the stimulation grant may be paid or credited in whole or in part in conjunction with the schedule of amortization.

22(7) For the purposes of this section, a water or wastewater commission created or continued under section 15.2 of the Clean Environment Act and a regional service commission established under the Regional Service Delivery Act shall be deemed to be municipalities.

Power to assist a municipality or rural community

23 The Lieutenant-Governor in Council may, on the terms and conditions agreed upon, grant to a municipality or rural community that is in financial difficulty such assistance by way of loan, guarantee, grant or otherwise as the Minister considers necessary.

GENERAL PROVISIONS

Determination of population

24(1) For the purpose of determining the amount of the community funding and equalization grant for a community, the Minister shall determine the population of the community by adopting the final population figure from the latest official census of Statistics Canada or in such other manner as is prescribed by regulation.

24(2) In the case of an incorporation, amalgamation, annexation or decrement of a municipality, the Minister may determine

(a) the population of the municipality, and

(b) the municipal tax base.

24(3) In the case of an incorporation, amalgamation, annexation or decrement of a rural community, the Minister may determine

(a) the population of the rural community, and

(b) the rural community tax base.

Application of Regulations Act

25 The Regulations Act does not apply to an order made under this Act, other than a regulation made under section 27.

Administration

26 The Minister shall administer this Act and may designate persons to act on the Minister’s behalf.

Regulations

27 The Lieutenant-Governor in Council may make regulations

(a) classifying groups of municipalities or rural communities;

(b) prescribing the manner of determining the population of a community;

(c) defining any word or expression used in but not defined in this Act for the purposes of this Act, the regulations or both;

(d) generally for the better administration of this Act.

TRANSITIONAL PROVISIONS

Transitional provisions

28(1) For the purpose of this section, “unconditional grant” means the unconditional grant of the municipality or rural community in the year 2012 under the Municipal Assistance Act, as it existed immediately before the commencement of this Act.

28(2) Despite any other provision in this Act, for the year 2013,

(a) the total amount of the community funding and equalization grant for municipalities and rural communities shall be fixed at $66,103,102,

(b) the total amount of the police equalization component of the community funding and equalization grant for local service districts and for rural communities that have not enacted a by-law authorizing the rural community to provide police services shall be fixed at $1,150,000, and

(c) the total amount of the core funding component of the community funding and equalization grant for local service districts shall be fixed at $2,909,587.

28(3) Despite subsection 13(9) of this Act, the revised warrant of the group for the year 2013 shall be determined based on the unconditional grant of a municipality or rural community, and not based on its community funding and equalization grant.

28(4) Despite any other provision of this Act, the community funding and equalization grant for municipalities and rural communities shall be determined,

(a) for the year 2013, by adding one-third of its value determined under this Act and two-thirds of the value of the unconditional grant of the municipality or the rural community, and

(b) for the year 2014, by adding two-thirds of its value determined under this Act and one-third of the value of the unconditional grant of the municipality or rural community.

28(5) Despite any other provision of this Act and subject to subsection (4), in addition to the community funding and equalization grant, a special transitional grant shall be granted to municipalities and rural communities for the year 2013, other than to the Town of Dalhousie, and shall be determined by the following:

(a) the change in provincial policing costs;

(b) the revenue from growth in tax base for the year 2013;

(d) the difference between the value of the unconditional grant of the municipality or the rural community and the value of the community funding and equalization grant of the municipality or the rural community for the year 2013.

28(6) A special transitional grant shall only be granted to a municipality or a rural community if the total of the determination under subsection (5) is a negative amount, in which case the value of the special transitional grant shall be the corresponding positive amount.

28(7) For the purposes of subsection (5), the change in provincial policing costs shall be the difference between

(a) the amount set out in the estimate of money required for the operation of a municipality or a rural community referred to in paragraphs 87(2)(a) or 190.081(2)(a) of the Municipalities Act as costs of providing police services, and

(b) the costs of providing police services as set out in the Provincial Police Service Agreement for the year 2013 for the municipality or the rural community that has enacted a by-law authorizing it to provide police services.

28(8) For the purposes of subsection (5), the revenue from growth in tax base for the year 2013 shall be determined by multiplying

(a) the difference between the municipal tax base for the year 2013 and the municipal tax base for the year 2012 or the difference between the rural community tax base for the year 2013 and the rural community tax base for the year 2012, and

(b) the tax rate for that municipality or rural community for the year 2012 divided by 100.

28(9) For the purposes of subsection (5), the savings on provincial property tax payments on municipal properties or rural community properties are determined by the sum of the following:

(a) $0.055 on each $100 valuation, at the date of the computation of the municipal tax base or the rural community tax base in the previous year, of all residential property that is owned by the municipality or rural community; and

(b) $0.0825 on each $100 valuation, at the date of the computation of the municipal tax base or the rural community tax base in the previous year, of all non-residential property that is owned by the municipality or rural community.

CONSEQUENTIAL AMENDMENTS

Clean Environment Act

29 Subsection 15.1(1) of the Clean Environment Act, chapter C-6 of the Revised Statutes, 1973, is amended in the portion preceding paragraph (a) by striking out “Municipal Assistance Act” and substituting the “Community Funding Act”.

Regulation under the Municipal Assistance Act

30(1) The enacting clause of New Brunswick Regulation 86-143 under the Municipal Assistance is repealed and the following is substituted:

Under section 27 of the Community Funding Act, the Lieutenant-Governor in Council makes the following Regulation:

30(2) Section 1 of the Regulation is amended by striking out “Groups of Municipalities Regulation- Municipal Assistance Act” and substituting “Groups of Municipalities and Rural Communities Regulation - Community Funding Act”.

30(3) Section 2 of the Regulation is amended by striking out “The groups of municipalities for the purposes of the Municipal Assistance Act” and substituting “The groups of municipalities and rural communities for the purposes of the Community Funding Act”.

30(4) Schedule A of the Regulation is amended

(a) by repealing the heading “GROUPS OF MUNICIPALITIES” and substituting “GROUPS OF MUNICIPALITIES AND RURAL COMMUNITIES”;

(b) in Group F by striking out “Village de St. André”;

Group G	Beaubassin East
	Campobello Island
	Kedgwick
	Saint-André
	Upper Miramichi

Municipalities Act

31(1) Section 1 of the Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is amended

(a) in the definition “local service district tax base” in the portion preceding paragraph (a) by striking out “the unconditional grant under the Municipal Assistance Act” and substituting “the community funding and equalization grant under the Community Funding Act”;

(b) in the definition “rural community tax base” in the portion preceding paragraph (a) by striking out “the unconditional grant under the Municipal Assistance Act” and substituting “the community funding and equalization grant under the Community Funding Act”;

(c) in the definition “municipal tax base” in the portion preceding paragraph (a) by striking out “the unconditional grant under the Municipal Assistance Act” and substituting “the community funding and equalization grant under the Community Funding Act”.

31(2) Subsection 19(8) of the Act is amended by striking out “Municipal Assistance Act” and substituting “Community Funding Act”.

31(3) Section 87.1 of the Act is amended

(a) in paragraph (1)(b) by striking out “section 6 of the Municipal Assistance Act” and substituting “section 8 of the Community Funding Act”;

(b) in paragraph (2)(b) by striking out “section 6 of the Municipal Assistance Act” and substituting “section 8 of the Community Funding Act”.

31(4) Subsection 190.061(1) of the Act is amended in the portion preceding paragraph (a) by striking out “section 6 of the Municipal Assistance Act” and substituting “section 8 of the Community Funding Act”.

31(5) Section 190.083 of the Act is amended

(a) in paragraph (1)(b) by striking out “section 6.02 of the Municipal Assistance Act” and substituting “subsection 9(1) of the Community Funding Act”;

(b) in paragraph (2)(b) by striking out “section 6.02 of the Municipal Assistance Act” and substituting “subsection 9(1) of the Community Funding Act”.

Real Property Tax Act

32 Subsection 5.01(1) of the Real Property Tax Act, chapter R-2 of the Revised Statutes, 1973, is amended in the definition “local service district tax base” by striking out “subsection 5(4) of the Municipal Assistance Act” and substituting “subsection 4(2) of the Community Funding Act”.

An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal

33 Section 4 of An Act to Comply with the Request of The City of Saint John on Taxation of the LNG Terminal, chapter T-0.2 of the Acts of New Brunswick, 2005, is amended by striking out “paragraph 6(b) of the Municipal Assistance Act” and substituting “paragraph 8(b) of the Community Funding Act”.

REPEAL AND COMMENCEMENT

Repeal of the Municipal Assistance Act and regulation

34(1) The Municipal Assistance Act, chapter M-19 of the Revised Statutes, 1973, is repealed.

34(2) New Brunswick Regulation 94-55 under the Municipal Assistance Act is repealed.

Commencement

35 This Act comes into force on January 1, 2013.