HomeMy WebLinkAboutTR-104-84 4
CORPORATION OF THE TOWN OF NEWCASTLf
TREASURY DEPARTMENT K. CAMPBELL, C.A.,TREASURER
44 TEMPERANCE STREET TEL.(416) 623-3379
BOWMANVILLE, ONTARIO
L1 C 3A6
REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MEETING OF DECEMBER 17 1984
REPORT NO.: TR-104-84
SUBJECT: TRUST FUND FOR ONTARIO HOME RENEWAL PROGRAM
RECOMMENDATION:
It is respectfully recommended that the General Purpose and
Administrative Committee recommend to Council the following:
1. That this report be received, and
2. That the attached by-law to establish a trust
fund for the purposes of the Ontario Home
Renewal Program by approved.
BACKGROUND AND COMMENT:
Staff received correspondence from the Ministry of Municipal
Affairs & Housing directing municipalities to adopt a by-law
to establish a trust fund for the purposes of the Ontario Home
Renewal Program by January 1st 1985.
Therefore, pursuant to the Ontario Regulation 506/80 governing
the administration of OHRP funds, amended April 1984, staff
have prepared a by-law, ( see attached) , for the establishment
of a trust fund for monies received under OHRP and permits
OHRP funds to be invested in certain securities when not
required for immediate use for loans to homeowners.
i 4.0
t r �
1
2 -
TR-104-84
Staff have also included an excerpt from Ontario Regulations
506/80, as amended, and an excerpt from section 26 of the
Trustee Act, for Committee' s information.
Respectfully submitted,
l.
Kathryn . Campbell , C.A. ,B.Comm.,
Treasurer
*gf
Attachment (5)
\/ and Housing =---- ,
Ontario
416/585-6400
May 24, 1984 r
To: All .Clerks or Clerk-Treasurers
Re: Ontario Home Renewal Program -
. , (Ontario Regulation 227/84 amending Regulation 506"
R.R.O. 1980 made under the Housing Development Act)
In the past, municipal treasurers and auditors have _.
commented that with -respect to funds received under the
- Ontario Home Renewal .Program "(OHRP) , it would appear snore
- appropriate for municipalities to maintain the moneys as a
trust- fund as opposed to. a reserve fund. It is further
recognized that the "present reserve -fund designation tends
to overstate the year-end balance sheet in respect to.
assets pertaining to the municipality. -
-It has also been noted that some municipalities were of
- -the opinion that moneys -received under. OHRP, and not
required immediately for loans to homeowners, could be
- loaned temporarily for revenue fund purposes or invested
in any class of securities mentioned in sections 26 and 27
of the Trustee Act. Nevertheless, the intent has always
been that there should be a distinct separation of OHRP
funds from the general funds of the municipality.
In view of the above, Ontario Regulation 506/80, which
governs the .administrationof OHRP. funds, ..has been amended
to:
(a) -. .require -the establishment of -a trust-fund for all
moneys received under OHRP;
(b) require, pending the investment of any :trust money,
the deposit of any OHRP funds in an interest bearing
account .with any chartered bank ..of Canada, any .::-.
Province of Ontario Savings Office, any trust company
or loan corporation that is registered under the- Loan
and Trust Corporations Act, -. or in any -credit union as
defined in the Credit Unions and Caisses Populaires
Act (refer to section 28- of 'the Trustee Act) ; and
-
12 .
-7 7 � f t
2
(c) permit investment of any portion of the trust fund,
not required .for immediate use for loans to home-
owners, in securities mentioned under clauses .26(e) ,
(g) , and (h) of the Trustee Act.
For more detailed reference,: we attach a copy of sections.
2, 3 and 4 of Regulation 506/80 as amended, which - incorpo-
rates all the revisions made under Regulation 227/84 and a
copy of sections 26(e) , (g) and (h) of the Trustee Act. The
OHRP "Municipal Responsibilities and Functions Guide",
"Financial Procedures Bulletin 5 -- Reserves, Reserves Funds,
Allowances and other Special Funds", "Financial Information
Return" and the Municipal Financial Reporting Handbook" which
now refer to the , establishment of a reserve .fund will be
.amended to .reflect :these changes in the next update of these
_publications.: ..
In order to accommodate the transition from a reserve fund
to a trust fund, we would suggest this change be instituted
effective -January .1, 1985. A mid-year status change becomes
rather complex because of the- non-consolidation .of trust
funds and would also necessitate- an audit opinion of -the
reserve fund and trust fund operations for portions of the
year. In respect to- existing deposit accounts or investments
that do not meet the --criteria of (b) or (c) .above, it: is
expected that all municipalities will take steps to .conform
with this requirement by January 1, 1985.
If your municipality has any difficulty in implementing
the above- or requires further clarification regarding the
changes, please contact C.B.- Carr,- Manager, Program .. . :
Administration (phone'- 416/585-6430) . _
.Yours, truly;:-
D.A. Murray ilson
Assistant :G neral Manager,;:OHC.; r..- _
Field Operations
Attachment
cc:!° -All',Municipal '.Auditors '_
C:B. CARR.arb
Sec_26 (e) , (g) and (h) as Extracted from the Trustee Act,
RSO 1980 , c_512
INVESTMENTS
26. A trustee may invest any trust mone}' in his hands in^utborizeci
the classes of securities mentioned in this section, but only if'nvescmenu
the investment is in other respects reasonable and proper,
(e) guaranteed investment certificates of any trust con)-trust
pang• that is registered under the Loan and Truslguarpaanieed
Corporations Ad: investments
chartered (g) deposit receipts, deposit notes, certificates of deposits,
banks
acceptances and other similar instruments issued or
mia-S)• endorsed bran.'chartered bank to which the Bank Act
c-40 Wan.)
(Canada) applies; and
credit union (h) term deposits accepted b% a credit union as defined in
. trrin depusits - I
R.s.o. 19rto. the Credit Unions and Caisses Populaires Act.
C to' R.S.O. 1970, c. 470, s. 26; 1980, c. 6, s. 6 (1).
- R
7 J
Exzracz from Ontario Regulation 506/80 under- the Housing
Development Act as amended by Regulation 227/84 _
2-0) The Miniswr may make annual grant.,up
to an amount based on t}it popul ation of the munici- 4- Every municipality that receive:a grant under
pality as shown in the municipal directory prepared
by the Ministry his Regulation shall,
ry of Intergovernmental Affairs for the "
year in which the grants are made multiplied by the
appropriate amount as set out in Schedule] to munici (al ensure that there be taken in the name of the
palities that make application fora c municipality as sccurity for any loan,includ--
ance with Form I and attach with the application,in ing the forgivable and rr ayablr portions
P
(a) certified copies of all by-laws passtd under thereof, a lien as proyidrd for by subsection
3 (1)of the Act or a promissory note as pro-
--ection 43 of the Planning Arl or under vided for by subsection 3(4)of the Act;
any private Act of the Province of Ontario
or,where no such by-laws have been passed. IM eaahli.h a trot fund and drt.osit in it all
certified copies of all resolutions of the
nionc'ys tcirived urSdc•r this Rcy:uJatiun, all
council of the applicant municipality per- uuuuh's rcicired in nla.mrnt.,f)uau,made
taining to building maintenance, health,
under this Kr>ul ttiun, and all interest
- safety'and sanitary conditions; act•ruinr: thereon;
(b) where the applicant is an area municipality [Ga) Ix aAuw-ell to im r>t:ntv pert of the trust fund
within a regional area,a certified cop} of a nut rertuind for imnu,liatr use for
loan,
resolution of the council of the regional un-Irr stc•SCutt,3 in u,yt•rimrr,ta authurizcd for
municipality confirming that the regional a IruAve under Clauses 26 tr), (g)and 01 of
municipality will not be making an appli- the Tnc.ilre:lrl:
cation.for an annual grant; and
(c) provide the Minister with whatever infor-
(t) a certified copy of a resolution of the council
mation,records or accounts hr may require
of the applicant municipality authorizing
the application. O. Reg. 688:74,s.2 (I) pertaining to any application. loan or any
other matter provided for in this Regula- �
Lion:and
(1) Where the applicant is a regional municipality (d) be allowed to retain out of the grant to
, �
the computation of grants shall be based on the
population of each constituent area municipality. the municipality as charges for•the prose»-
ing of loans amounts calculated as set out
t3+ When a-municipality us any part of the trust in Schedule 3;and
es
fund. ,tablishrd by that municipality under elausc 4
IN for a purpose other than, (e) ensure that when thin are by-laws as re-
ferred to in clause 2 (1) (a) loans shall be
6rS the purlKnSex fair which the trust fund was made to bring dwellings up to the standards J
rstahlislied.or set out in the by-laws,or Where there are no t
such by-laws, loans shall be made to bring i
tb) inve-ziments permitted by clause 4 (bat, dwellings up to the standards set out in the
resolutions referred to in clause 1(I).(e). O
the Minister may, require the municipality to repay Reg. 688!74, s. 4; O.Reg. 749ns, s. 3;
that part of the trust fund to the Province of O-Reg-776176,s.2_
Ontario. O. Reg. 21;IS4. e. .1•
3. (1) It is a tundition attaching to all grants made M
the llinistcr to a municipality under the is matltio.. f
eta[ the mnht in Ilu trust fund rstahlishe.l un,kr
cl.tusr a It lie u-c,l by the municipalit% only to make
loan-,each in an amount nut ext-rding�i•s(x),subj,c1
to subsection [2), tcss any amounts rrccieed thruu>;h
Federal fundinz, to oxrurs who.
(a) make application in Form 2;
• (b) reside in the municipality;and
Ir) qu:dify for a L.an under Ihi. I{tculaliun lu '
avdsl in the rcletir, rchal+ilitatiun 'ar>.l
impruvrment of real pn,l,erty used fur rni-
sIrntial purlr,se„and uctupit-tl by its owner_
U. Reg. 22;1x4,s 2.
THE CORPORATION OF THE TOWN OF NEWCASTLE
BY-LAW NUMBER 84-
Being a by-law to establish a trust fund for the
purposes of the Ontario Home Renewal Program.
WHEREAS the method of accounting for the purposes of the Ontario Home
Renewal Program (hereafter referred to as OHRP) has been revised to
require the establishment of a trust fund.
WHEREAS the Minister of Municipal Affairs and Housing by Ontario
Regulation 227/84 filed on April 10, 1984, among other things;
(a) requires the establishment of a trust fund for all monies received
under OHRP;
(b) requires pending the investment of any trust money, the deposit of
any OHRP funds in an interest bearing account with any chartered
bank of Canada, any Province of Ontario Savings Office, any trust
company or loan corporation that is registered under The Loan and
and Trust Corporation Act, or in any credit union as defined in
The Credit Unions and Caisses Populaires Act (refer to section 28
of The Trustees Act); and
(c) permits investment of any portion of the trust fund, not required
for immediate use for loans to homeowners, in securities mentioned
under clauses 26(e),(g) and (h) of The Trustee Act.
NOW THEREFORE, the Council of the Corporation of the Town of Newcastle
ENACTS as follows:
1. THAT the OHRP reserve fund accounts and records of the
municipalities be changed effective January 1st 1985 to give due
effect to the operation of the trust fund and the conduct of the
Ontario Home Renewal Program in accordance with Ontario Regulation
227/84.
2. THAT the balance of the OHRP monies in the reserve fund bank
account or any other deposit account be transferred on January 1st
1985, to a new and separate deposit account to be operated in the
Bank as the OHRP trust fund account.
3. THAT the Mayor and the Treasurer are hereby authorized to sign on
behalf of the municipality such instruments as the Bank requires
for the due operation of the said Trust deposit account.
4. THAT this by-law shall come into force on January 1st 1985.
READ a first and second time this day of 1984.
READ a third and final time this day of 1984.
Mayor
Clerk