PART 6 - FINANCIAL ADMINISTRATION

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FINANCIAL PLANS

Fiscal year is calendar year

161 The fiscal year of a municipality is the calendar year.

Council must adopt financial plan for each fiscal year

162(1) Every council must adopt a financial plan for each fiscal year in a form approved by the minister and consisting of

(a) an operating budget;

(b) a capital budget;

(c) an estimate of operating revenue and expenditures for the following fiscal year; and

(d) a five year capital expenditure program.

Council to hold public hearing on financial plan

162(2) Before adopting the financial plan, the council must give public notice, and hold a public hearing, in respect of the plan.

New public hearing when certain items revised

162(3) A council may revise its financial plan after the public hearing, but public notice must be given and another public hearing conducted if the revision

(a) increases the estimated amount of a transfer referred to in clause 164(2)(a) or the estimated revenue from a tax referred to in clause 164(2)(c) (operating budget); or

(b) increases any of the amounts referred to in section 166 (capital budget).

Increase in requisition only

162(3.1) In each fiscal year ending before January 1, 2006, the requirement in clause (3)(a) to give notice and hold a public hearing does not apply if the increase in estimated revenue results solely from the municipality's requirement to levy and collect a requisition.

Financial plan to be filed with minister

162(4) A copy of the financial plan of a municipality for a fiscal year must be filed with the minister by May 15 of that year.

Council may request extension of time

162(5) A council that is unable for any reason to file its financial plan in accordance with subsection (4) may in writing request an extension of time, and the minister may extend the time subject to any condition the minister considers necessary or advisable.

S.M. 2002, c. 8, s. 27.

Council may adopt interim operating budget

163 A council may adopt an interim operating budget to have effect only until the council adopts the operating budget for the fiscal year.

Expenditures to be estimated in operating budget

164(1) A council must include in its operating budget for a fiscal year the estimated amount of money required for all purposes, including amounts

(a) to provide for the council's policies and programs;

(b) to pay debt obligations in respect of any borrowings;

(c) to pay a requisition or any other amount that the municipality is required under an Act to collect;

(d) to be transferred to the capital budget or a reserve fund;

(e) to reduce or eliminate any deficiency incurred in respect of a previous fiscal year; and

(f) in respect of any uncollected tax or any debt or grant in lieu of tax that is not collectible.

Revenue and transfers to be estimated

164(2) A council must include in its operating budget the estimated amount of money from transfers and each source of revenue, including

(a) transfers from the municipality's accumulated surplus or its reserve funds;

(b) revenue from grants and transfers from other governments;

(c) revenue from taxes, including

(i) real property tax,

(ii) business tax,

(iii) personal property tax,

(iv) special services tax, and

(v) local improvement tax; and

(d) revenue from all other sources, including fees or other charges in respect of the operation of any works, improvements, services, facilities and utilities.

Expenditures not to exceed transfers and revenue

164(3) The council must ensure that the total amount of the estimated transfers and revenue is not less than the total amount of estimated expenditures unless, before adopting the operating budget, the council obtains the minister's written approval of the proposed budget, which may include any condition the minister considers necessary or advisable.

Utilities expenditures not to exceed transfers and revenue

164(4) The council must ensure that the amount of estimated revenue and transfers provided for in the utility budget is not less than the amount of estimated expenditures in respect of the utility unless, before adopting the operating budget, the council obtains The Public Utilities Board's written approval, which may include any condition the Board considers necessary or advisable.

Transfer from accumulated surplus or reserve fund

164(5) An operating budget or capital budget may provide for the transfer of money from an accumulated surplus or a reserve fund established for a general purpose, but the transfer of an amount that exceeds the maximum amount provided for by regulation may be made only if, before adopting the budget, the council obtains the minister's written approval, which may include any condition the minister considers necessary or advisable.

S.M. 1998, c. 33, s. 13.

Council to obtain approval for anticipated deficiency

165(1) When a council determines during a fiscal year that expenditures are likely to exceed the revenue and transfers provided for in its budget, the council must immediately advise the minister in writing and may incur a deficiency with the minister's written approval, which may include any condition the minister considers necessary or advisable.

Council to obtain approval for anticipated deficiency in utility

165(2) When a council determines during a fiscal year that expenditures of a utility are likely to exceed the revenue and transfers provided for in the utility budget, the council must immediately advise The Public Utilities Board in writing and may incur a deficiency with the Board's written approval, which may include any condition the Board considers necessary or advisable.

S.M. 1998, c. 33, s. 14.

Content of capital budget

166 A council must include in its capital budget the estimates of

(a) the amount of money required to acquire, construct, remove or improve capital property;

(b) the anticipated sources and the amounts of money to pay the costs referred to in clause (a); and

(c) the amount of money to be transferred from the operating budget.

Content of capital expenditure program

167 A council must include in its five year capital expenditure program each proposed expenditure for the next five years and the source of the money required to implement the program.

Council may establish reserve funds

168(1) A council may by by-law establish reserve funds for any general or specific purpose.

Expenditure from reserve fund with specific purpose

168(2) A council that establishes a reserve fund for a specific purpose may provide in its operating budget or capital budget for an expenditure from the fund only for that purpose unless, before making the expenditure,

(a) the council gives public notice, and holds a public hearing, in respect of the proposed expenditure; and

(b) in the case of a reserve fund that is supplemented with the approval of The Public Utilities Board, the Board approves the proposed expenditure.

Expenditures

169(1) A municipality may make an expenditure only if it is

(a) provided for in the council's interim operating budget, operating budget or capital budget;

(b) made in respect of a disaster or emergency declared by the council or head of council under The Emergency Measures Act;

(c) ordered by a court or The Municipal Board to be paid; or

(d) authorized by the council under this section.

Expenditure for purpose not set out in budgets

169(2) A council may authorize the expenditure of an amount provided for in an operating budget or capital budget, other than an expenditure referred to in subsection 168(2), for a purpose other than is set out in the budget if the expenditure does not affect the total of the amounts estimated under subsection 164(1) (operating budget) and section 166 (capital budget).

Expenditure or transfer of revenue exceeding estimate

169(3) A council may authorize expenditures from its operating budget, or transfer amounts from its operating budget to the capital budget, that are not provided for in the operating budget if the total of the expenditures and transfers does not exceed the total of

(a) the amount of revenue from grants and transfers in excess of the amount estimated under clause 164(2)(b); and

(b) the amount of revenue from sources referred to in clause 164(2)(d) in excess of the amount estimated under that clause.

Expenditure from capital budget

169(4) A council may authorize expenditures from its capital budget that are not provided for in the capital budget if the total of the expenditures does not exceed the amounts transferred from the operating budget under subsection (3).

Expenditures exceeding budgets

169(5) A council may authorize an expenditure for an amount not provided for in an operating budget or capital budget, and may fund the expenditure

(a) subject to subsection 164(5), by transfer from the municipality's accumulated surplus or its reserve funds; or

(b) subject to section 174, by borrowing.

Public hearing necessary for some expenditures

169(6) Subject to subsection (7), a council must give public notice and hold a public hearing in respect of a proposed expenditure under subsection (5).

No public hearing if specific purpose reserve is used

169(7) No public notice or public hearing is required under subsection (6) for an expenditure funded by a transfer from a specific purpose reserve unless the expenditure is for a purpose other than that for which the reserve fund was established.

Content of notice

169(8) A notice under subsection (6) must include

(a) the amount and purpose of the expenditure; and

(b) the expenditure's sources of funding and the portion of its cost that will be paid by each source.

S.M. 1998, c. 33, s. 15.

Employees who handle money to be bonded

170 Each municipality must ensure that every employee of the municipality who handles or could handle money of the municipality is bonded or otherwise insured for the faithful performance of duties.

Certain use of municipal money an offence

171(1) A member of a council is guilty of an offence under this Act who

(a) spends or invests or authorizes the expenditure or investment of money of the municipality without authorization or contrary to the authorization given under a by-law or resolution or this or any other Act; or

(b) accepts, or votes in favour of paying to a person, including a member of the council, an amount not authorized by a by-law or resolution or this or any other Act, or an amount greater than is authorized.

Civil liability of the member

171(2) In addition to any penalty imposed under subsection (1), a member of a council who is guilty of an offence under subsection (1) is liable to the municipality for the amount spent, invested or paid.

Joint and several liability

171(3) If more than one member is liable under subsection (2), those members are jointly and severally liable to the municipality.

Municipality or voter may take action

171(4) The liability under this section may be enforced by action by the municipality or by a voter of the municipality.

Exception of declared state of emergency

171(5) This section does not apply to an expenditure made in respect of a disaster or emergency declared by a council or head of council under The Emergency Measures Act.

S.M. 2005, c. 27, s. 158.

DIVISION 2

BORROWING

Definitions

172 In this Division,

"borrowing" means the borrowing of money, and includes

(a) borrowing to refinance, redeem or restructure existing debt,

(b) borrowing to pay for a local improvement under Division 4 (Local Improvements and Special Services) of Part 10,

(c) a lease of capital property with a fixed term beyond three years or a fixed term of less than three years but with a right of renewal that would, if exercised, extend the original term beyond three years,

(d) an agreement to purchase capital property that creates an interest in the capital property to secure payment of the capital property's purchase price if payment of the purchase price under the agreement exceeds three years, and

(e) issuing debentures; (« emprunt »)

"borrowing by-law" means a by-law referred to in clause 174(1)(a). (« règlement d'emprunt »)

Council may borrow for operating expenses

173(1) A council may by resolution borrow money for operating expenses during a fiscal year, but the amount borrowed must not exceed the amount collected in taxes and grants in lieu of taxes in the previous fiscal year.

Application to borrowing

173(2) This Division does not apply to money borrowed under subsection (1).

Borrowing must be authorized by by-law

174(1) A municipality may make a borrowing only if

(a) the borrowing is authorized by a by-law; and

(b) subject to subsection (2), the borrowing is set out as a debt obligation in the operating budget or capital budget or it is made to fund an expenditure authorized under subsection 169(5).

Council may exclude certain borrowing from budgets

174(2) A council is not required to include a proposed borrowing in its operating budget or capital budget if

(a) the borrowing refinances, redeems or restructures existing borrowings; and

(b) the amount and term of the borrowing does not exceed the unpaid principal and the longest remaining term of the existing borrowing.

Content of borrowing by-law

174(3) A borrowing by-law must set out

(a) the amount of money to be borrowed and, in general terms, the purpose for which the money is to be borrowed;

(b) the anticipated maximum rate of interest, the term and the terms of repayment of the borrowing;

(c) the source or sources of money to pay the principal and interest owing under the borrowing; and

(d) the source of any interim financing.

S.M. 1998, c. 33, s. 16.

Repeal or amendment of borrowing by-law

175 After money is advanced under a borrowing by-law, the council may not repeal the by-law until the advance is repaid, and may not in any amendment reduce the amount authorized by the by-law to less than the amount advanced.

Every proposed borrowing to be approved by board

176 A municipality may not make a borrowing unless the council obtains the approval of The Municipal Board before third reading of the borrowing by-law.

Use of borrowed money restricted to stated purpose

177 A council must use money obtained under a borrowing only for the purpose for which the money is borrowed, as stated in the borrowing by-law.

Application of money borrowed

178 A person lending money to a municipality does not have to verify that the money is applied to the purpose for which it is borrowed.

Term of borrowing for capital property

179 The term of a borrowing for a capital property must not exceed the probable lifetime of the capital property.

DIVISION 3

LOANS

Municipality may make loans

180(1) A municipality may lend money only if

(a) the council considers that the money loaned will be used for a purpose that will benefit the municipality;

(b) the loan is made to a non-profit organization or municipal participation corporation;

(c) the loan is authorized by by-law; and

(d) the amount of money to be loaned, together with the unpaid principal of any other loan, does not exceed the maximum amount established by the minister by regulation.

Content of by-law authorizing loan

180(2) A by-law authorizing a loan must set out

(a) the amount of money to be loaned and, in general terms, the purpose for which it is to be used;

(b) the name of the organization or corporation to which the loan is to be made;

(c) the minimum rate of interest, the term and the terms of repayment of the loan; and

(d) the source or sources of the money to be loaned.

DIVISION 4

INVESTMENTS

Definition

181(1) In this section, "securities" includes bonds, debentures, treasury bills, trust certificates, guaranteed investment certificates or receipts, certificates of deposit, deposit receipts, bills, notes and mortgages of real estate or leaseholds and rights or interests in respect of a security.

Authorized investments

181(2) A municipality may invest its money only in the following:

(a) securities issued or guaranteed by

(i) the Government of Canada or an agency of the Government of Canada, or

(ii) the government of a province or an agency of the government of a province;

(b) securities the payment of which is a charge on the Consolidated Revenue Fund of the Government of Canada or a province of Canada;

(c) securities of a municipality in Canada;

(d) securities of a Canadian municipal participation corporation;

(e) securities issued or guaranteed by a bank, credit union or trust corporation;

(f) securities that are insured by the Canada Deposit Insurance Corporation Act;

(g) investments authorized by the minister by regulation; and

(h) units in pooled funds of all or any of the investments described in clauses (a) to (g).

Membership in non-profit organization

181(3) Nothing in this section prevents a municipality from acquiring a share or membership in a non-profit organization.

DIVISION 5

ANNUAL FINANCIAL STATEMENTS AND AUDITOR'S REPORT

Definition

182 In this Division, "auditor" means a person appointed under section 184 to audit the records and books of account of a municipality for a fiscal year.

Annual financial statements

183(1) A municipality must in each year prepare annual financial statements of the municipality for the immediately preceding year in accordance with the generally accepted accounting principles for municipal governments recommended from time to time by the Canadian Institute of Chartered Accountants and any modification of those principles or any supplementary accounting standards or principles approved by the minister.

Annual financial information returns

183(2) A municipality must, no later than March 15 in each year, submit to the minister a financial information return, in a form approved by the minister, respecting the financial affairs of the municipality for the preceding year.

S.M. 1998, c. 33, s. 17.

Council to appoint an auditor for each year

184(1) The council of a municipality must, not later than August 31 in each year, appoint an auditor to carry out the duties of an auditor under this Act in respect of the municipality for that fiscal year.

Member or employee not to be appointed

184(2) The council may not appoint a member of the council or an employee as auditor.

Council to inform minister of appointment

184(3) The council must inform the minister of the name of the auditor within 40 days after the appointment.

Minister may appoint if council does not appoint

184(4) If a council fails to appoint an auditor in accordance with subsection (1), the minister may make the appointment.

Qualifications for appointment as auditor

184(5) To qualify to be appointed as an auditor, a person must be entitled to practise as an accountant under The Chartered Accountants Act, The Certified General Accountants Act or The Certified Management Accountants Act.

S.M. 2004, c. 21, s. 60.

Municipality to pay auditor's fees and expenses

185(1) Subject to subsection (2), a municipality must pay its auditor's fees and expenses, including any fee or expense relating to a request of the minister under section 191.

Certain bodies to pay auditor's fees and expenses

185(2) The auditor's fees and expenses relating to the audit of a body referred to in clause 186(1)(b) or (c), including any fee or expense relating to a request of the minister under section 191 in respect of the body, must be paid by the body.

Scope of auditor's examination

186(1) An auditor must examine the financial statements, financial information returns, records, books of account and other information relating to the financial affairs of the municipality for the fiscal year, including

(a) any funds of the municipality held in trust by an officer or employee of the municipality;

(b) any board, committee or other body that is established or appointed by the council and that administers funds of the municipality; and

(c) any organization or other body

(i) to which the municipality has made a grant or loan of money of $5,000. or more, and

(ii) on which the municipality is represented by one or more persons appointed by the council.

Auditor not required to audit certain bodies

186(2) Despite clauses (1)(b) and (c), the auditor is not required to examine the financial affairs of a body referred to in those clauses if the auditor is satisfied that a person who has the qualifications referred to in subsection 184(5) has audited or is auditing the financial affairs of the body for the fiscal year.

Auditor's entitlement to access

187(1) The auditor is, at all reasonable times and for any purpose related to an audit, entitled to access to the records and books of account and any other document, matter or thing relating to the financial affairs of the municipality in the fiscal year or a previous year.

Auditor's entitlement to information

187(2) The auditor is entitled to receive, for the purpose of the audit, any information that is required from a member of the council, an employee of the municipality and the members and employees of a body referred to in clauses 186(1)(b) and (c).

Financial institution to provide information

188(1) A bank, credit union, caisse populaire or trust corporation must, on the written request of the minister or the auditor, provide in writing any information in its possession or control relating to the financial affairs of the municipality.

Information from land titles offices and courts

188(2) The district registrar for a land titles district and the officer of a court must, on the written request of the minister or the auditor, provide in writing any information in their possession or control relating to the financial affairs of the municipality.

Auditor must report failure to comply

189 The auditor must without delay report to the minister and the head of the council any failure of a person or institution to comply with section 187 or 188.

Timing and content of auditor's report

190(1) The auditor must submit a report to the council not later than June 30 in the year following the fiscal year for which the audit is prepared

(a) outlining the scope of the audit;

(b) identifying the financial statements audited; and

(c) expressing an opinion as to whether the municipality's financial statements present fairly the financial position of the municipality as at the end of the fiscal year and the results of its operations for the fiscal year.

Auditor to submit supplement with report

190(2) The auditor must submit with the report a supplement containing the following:

(a) a statement of opinion as to whether the accounting procedures and systems of control employed by the municipality are adequate to preserve and protect its assets;

(b) a statement of opinion as to whether the funds of the municipality have been disbursed only under an authority granted by an Act, or by a resolution or by-law passed or an authority granted under an Act;

(c) a statement as to whether any irregularity or discrepancy came to the auditor's attention during the audit;

(d) a statement as to any matters not referred to in clauses (a) to (c) that the auditor considers the minister or council should be aware of; and

(e) any recommendation the auditor considers necessary or advisable regarding the proper performance of duties and the keeping of records and books of account by the chief administrative officer or other employees.

Auditor to provide minister with information

191 The auditor must make any further examination and submit any additional report requested by the minister.

Council to provide minister with information

192 A council must provide the minister with any information or document requested by the minister respecting the financial affairs of the municipality.

Auditor to give report to head of council and minister

193(1) The auditor must ensure that a copy of the report is given to the head of council and the minister.

Head of council to table report at next regular meeting

193(2) The head of council must table the auditor's report at the first regular meeting of the council after receiving the report.

Public notice of auditor's report

194 The municipality must without delay, after the report is tabled, give public notice that the report and the municipality's financial statements are available for inspection by any person at the municipal office during regular business hours.

Auditor to give report to head of audited body

195 If the auditor audits a body referred to in clauses 186(1)(b) and (c), he or she must ensure that a copy of the report on the body is given to the head of the body and the head of council.

Council to advise minister of action taken

196(1) If the auditor's report or the council's review of the report indicates that immediate action is required in respect of a matter, the council must

(a) take such action as it considers necessary or advisable to address the matter; and

(b) advise the minister of the matter and the action it has taken or proposes to take.

Minister may take action

196(2) If the council takes no action or the action that is taken or proposed is not satisfactory to the minister, the minister may take action that, in his or her opinion, best protects the interests of the municipality, and the municipality must pay any cost incurred in taking the action.

Auditor or minister may act as commissioner

197(1) The minister and the auditor each have, in respect of the audit, the powers of a commissioner appointed under Part V of The Manitoba Evidence Act, including the power to require persons to give evidence and to produce documents relating to the financial affairs of the municipality.

Auditor or minister may retain counsel

197(2) The minister or the auditor may retain counsel for the purpose of subsection (1), and the municipality must pay the fees and expenses of the counsel.

Offence and penalty

198 A person who contravenes this Division is guilty of an offence and is liable on summary conviction to a fine of not more than $5,000., and in default of payment, to imprisonment for not more than three years.

DIVISION 6

MUNICIPALITIES IN FINANCIAL DIFFICULTIES

SUPERVISION

Definition

199 In sections 200 to 204, "municipality" includes a school district or school division for which a municipality collects taxes.

Order of supervision

200(1) Where the Lieutenant Governor in Council believes that a municipality is in financial difficulty and considers it to be in the best interests of the municipality, its voters and creditors that the affairs of the municipality be supervised, the Lieutenant Governor in Council may by order

(a) place the affairs of the municipality under supervision; and

(b) authorize the minister to appoint a supervisor of the affairs of the municipality.

Submission of program by municipality

200(2) Where a supervisor is appointed by the minister under subsection (1), the municipality must submit to the supervisor for approval, particulars of the following matters which constitute the program of the municipality:

(a) its financial plan;

(b) proposed taxation of the municipality;

(c) any other matter affecting the administration of the affairs of the municipality.

Directions and approval by supervisor

200(3) The municipality and its officers and officials must comply with the directions of the supervisor, and the council of the municipality must not finalize its program or pass any by-law respecting it until the program has been approved, or revised and approved, by the supervisor.

Notice of orders

200(4) Notice of an order made by the Lieutenant Governor in Council under subsection (1) must be published in The Manitoba Gazette.

Effect of Municipal Board Act

200(5) Nothing in this Division limits or otherwise affects the powers or authority of The Municipal Board under The Municipal Board Act, and if The Municipal Board, as authorized under that Act, at any time assumes supervision of a municipality or appoints a supervisor for it, from that time

(a) The Municipal Board has all the power and authority with respect to the municipality that is, or may be, given to it under that Act; and

(b) the minister ceases to have the powers and authority given to him or her under this Division.

S.M. 2005, c. 27, s. 158.

Minister may prescribe program

201 Where a municipality fails to obtain the approval of the supervisor or fails in whole or in part to conduct its affairs in accordance with the program, the minister may prescribe a program for the municipality, which becomes effective and is binding upon the municipality, its council, the chief administrative officer, and all persons interested in or affected by it.

Amendment of program

202 The minister may amend in whole or in part a program approved by the supervisor or prescribed by the minister and the amendment is effective and binding immediately upon notice being given to the municipality.

Current borrowings

203 The minister may direct that every borrowing by the municipality is subject to the minister's approval and that no money may be borrowed for purposes other than, or in amounts greater than, those approved from time to time, and the municipality must comply with the direction.

Ministerial directions

204 In appointing a supervisor the minister may

(a) give directions respecting approval of the program set out in subsection 200(2);

(b) give directions for the deposit and disbursement of all money of, or received on account of, the municipality;

(c) give directions regarding the approval and execution of all by-laws, security documents and other documents; and

(d) impose such terms or conditions or give such other directions as the minister considers advisable.

Borrowing in contravention of order

205 Where a municipality that is under supervision borrows or applies money in contravention of a direction made by the minister or a supervisor under this Division, or under The Municipal Board Act, the members of the council who vote for the borrowing or misapplication are jointly and severally liable to repay the amount so borrowed or misapplied and the liability may, with the consent of the minister, be enforced by an action by the municipality, a voter, a person holding security issued by the municipality, or any creditor of the municipality.

S.M. 2005, c. 27, s. 158.

Municipality remains subject to Act

206 Subject to this Part, the members of the council and the chief administrative officer of a municipality the affairs of which are under supervision remain subject to this and any other Act.

Payment of expenses

207 The minister may require that the expenses incurred under this Division be paid wholly or in part by the municipality under supervision and included in the operating budget of the municipality.

ADMINISTRATION

Appointment of administrator

208(1) Where the Lieutenant Governor in Council believes that a municipality is in serious financial difficulty and considers it to be in the best interests of the municipality, its voters and creditors, that the affairs of the municipality be administered by an independent administrator, the Lieutenant Governor in Council may by order

(a) place the affairs of the municipality under supervision; and

(b) appoint an administrator of the affairs of the municipality.

Notice in Manitoba Gazette

208(2) Notice of an order made by the Lieutenant Governor in Council under subsection (1) must be published in The Manitoba Gazette.

Effect of appointment

208(3) When an administrator is appointed under subsection (1), the then existing council and chief administrative officer of the municipality are deemed to have resigned from office and are no longer qualified to act for or on behalf of the municipality or to exercise the powers, duties or functions given to councils, members of council or a chief administrative officer under this or any other Act.

S.M. 2005, c. 27, s. 158.

Powers of administrator

209 Subject to this Part, an administrator has the powers and authority and is subject to the restrictions and responsibilities of the council of a municipality under this or any other Act or a by-law.

Administrator may demand books

210 The administrator may demand from the chief administrative officer of the municipality all money, securities, evidences of title, and municipal records.

Administrator to be bonded

211 The administrator must be bonded as determined by the minister for the faithful performance of his or her duties.

Administrator under control of minister

212 The administrator must consult the minister and be guided by his or her advice and directions.

Advisory committee

213 The minister may

(a) appoint or make provision for the election of a local committee of voters whom the administrator may consult respecting the affairs of the municipality; and

(b) fix the remuneration of the members of the local committee, to be paid from the funds of the municipality.

S.M. 2005, c. 27, s. 158.

Supervision by minister

214 Section 204 (ministerial directions) applies with necessary modifications to the supervision of the administrator by the minister.

Approval of administrator's by-laws

215 No by-law passed by the administrator is effective until approved by the minister.

Payment of expenses

216 Section 207 (payment of expenses) applies with necessary modifications to the expenses of the administrator.

Restoration of municipal status

217 Where the Lieutenant Governor in Council considers it advisable to provide that the affairs of the municipality again be conducted by a council, the Lieutenant Governor in Council may by order

(a) make suitable provisions for the election of a new council for the municipality;

(b) revoke the appointment of the administrator effective upon such election; and

(c) authorize the minister to require the municipality and its chief administrative officer to submit annually to the minister particulars of its program as set out in clauses 200(2)(a) to (c). RECEIVERSHIP


Dissolution of municipality

218 Where the Lieutenant Governor in Council believes that a municipality is insolvent or is in imminent danger of insolvency and considers it to be in the best interests of the municipality, its voters and creditors that the municipality be dissolved and its affairs wound up, the Lieutenant Governor in Council may by order

(a) dissolve the municipality; and

(b) authorize the minister to appoint a receiver.

S.M. 2005, c. 27, s. 158.

Effect of dissolution

219(1) When a receiver is appointed under section 218, the municipality is deemed to be dissolved and the then existing council and chief administrative officer of the municipality are deemed to have resigned from office and are no longer qualified to act for or on behalf of the municipality or to exercise the powers, duties or functions given to councils, members of council or a chief administrative officer under this or any other Act.

Publication in Manitoba Gazette

219(2) Notice of an order made by the Lieutenant Governor in Council under section 218 must be published in The Manitoba Gazette.

Receiver under control of minister

220 The receiver must consult the minister and be guided by his or her advice and directions.

Receiver may demand books

221 The receiver may demand from the chief administrative officer of the municipality, all money, securities, evidences of title, and municipal records.

Powers to realize upon assets

222 The receiver may

(a) realize upon the assets of the municipality; and

(b) with the approval of the minister, sell the assets of the municipality and execute, in the name of and on behalf of the municipality, all documents.

Receiver to be bonded

223 The receiver must be bonded as determined by the minister for the faithful performance of his or her duties.

Application of money

224 The receiver must apply all money received by him or her in payment of the liabilities of the municipality as far as circumstances permit, in the following order of priority:

(a) costs and expenses incidental to the receivership, including expenses of the receiver;

(b) salaries owing to employees of the municipality;

(c) amounts owing by the municipality to the Crown and to the several school districts or school divisions for which the municipality collects taxes;

(d) other just debts of the municipality, rateably and without preference or priority.

Payment of expenses

225 Section 207 (payment of expenses) applies with necessary modifications to the expenses of the receiver.

Distribution of assets for school purposes

226 The minister may order the receiver of a dissolved municipality to assign and transfer all or any portion of the assets of the dissolved municipality to the respective school districts or school divisions for which the municipality collects taxes, or to a trustee of them, in the manner provided in the order, in settlement of all claims of the respective school districts or school divisions against the municipality.

GENERAL

Regulations

227 The Lieutenant Governor in Council may make regulations respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of this Division.

Offence and penalty

228 A member of a council or a chief administrative officer who fails to comply with a demand of a supervisor, administrator or receiver of the municipality that he or she is authorized to make is guilty of an offence and is liable on summary conviction to a fine of not more than $500. or to imprisonment for a term of not more than three months, or both.

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