HomeMy WebLinkAboutTR-20-88 X__', TOWN OF NEWCASTLE
REPORT File #
Res. #
-- By-Law #
(SING: GENERAL PURPOSE & ADMINISTRATION BUDGET COMMITTEE MEETING
DATE: March 21, 1988
REPORT #: TR-20-88 FILE #:
aRJECT:
RESERVE FUNDS - MUSEUM BOARDS
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. That report TR-20-88 be received; and
2. That the Museum Boards be requested to relinquish all Reserve Fu-r->
monies presently held or invested by the respective board to the
Town in accordan with Section 165 of the Municipal Act Revised
Statutes of Ontar'o 1980.
BACKGROUND & COMMENTS:
At the Council Meeting of September 14 1987, Resolution #C-708-87 was
referred to the Treasurer for review and report.
In reviewing this matter Staff contacted the Ministry of Municipal
Affairs and were advised that the extent to which a local board ie.
Library Board, Museum Board etc. is subject to Council authorization is
determined by the Statute under which it was established. Local Boards
. . .2
TR-20-88 Page 2
may not maintain their own Reserve Funds or operate their own bank
accounts unless Provincial Legislation give them authority to do so.
Where the particular enabling legislation does not exist and it is
agreed that a Reserve Fund should be maintained for the benefit of the
local Board, Council should maintain the Reserve Fund on behalf of the
local Board. In such cases the Municipality would control the Reserve
Fund.
The position of the Ministry of Municipal Affairs is that local Boards may
provide in their estimates for the establishment of a Reserve Fund. This
does not enable the Board to establish a Reserve Account. The appointing
Council may approve the Board's Reserve Fund through the approval of the
Board's estimates. The Municipal Council shall maintain Reserve Funds on
behalf of the respective Board in accordance with. Section 165 of the
Municipal Act.
Expenditures from the Reserve Fund would only be by Council Resolution
or By-law, thereby giving Council total control of the respective
Reserve Fund Account.
Respectfully submitted, Recommended for presentation
to the Committee
f
( .R. Blanchard, wrence E �TCotseff,
Treasurer. Chief Ad mi istrative Officer.
JRB/pp
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Extract from Financial Procedures - Bulletin #5
Discretionary reserve funds are created under Section 165 of the
Municipal Act and under similar sections in the Acts establishing the
}� Regional Municipalities, Metropolitan Toronto and the District of
j� Muskoka. . Discretionary reserve funds are established whenever a
municipal council wishes to earmark revenues to finance a future project
for which it has the authority to spend money, and physically set aside a
certain portion of any year's revenues so that the funds are available as
required. In accordance with Section 165 of the Municipal Act, it is
suggested that municipalities create new reserve funds through the
estimates process, defining the purpose for which the reserve fund is
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being created.
I� Loca I Boards
The extent to which a local board is subject to council authorization is
determined by the statute under which it was established. Local boards
i
may not maintain their own reserve funds or operate their own bank
accounts unless provincial legislation gives them authority to do so.
Where the particular enabling legislatiop does not exist and it is agreed
that a reserve fund should be maintained for the benefit of a local board,
council should maintain the reserve fund on behalf of the local board. In
such cases the municipality would control the reserve fund.
j� Where there is a joint board involving two or more municipalities, with
their members appointed by the councils and their costs shared by the
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supporting municipalities, the municipality designated . by agreement,
legislation or regulation as being the municipality responsible for keeping
the accounting records and bank account should also be responsible for
maintaining and reporting the reserve fund on behalf of the joint board.
A Local Services Board is neither a municipality nor a local board for the
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purposes of any Act.
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Purpose_ I
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Obligatory reserve funds are to be used solely for the purpose prescribed
for them. '
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