Ministry

The local ministry staff person (known as a Northern Development Advisor) is the first point of contact between the LSB and the ministry.

The ministry’s role is to administer the NSBA. Ultimately, each LSB is responsible for its compliance with the NSBA.

The ministry does not provide legal opinions to LSBs. When seeking legal interpretation of the NSBA or advice related to the LSB’s obligations pursuant to the NSBA, the LSB should obtain its own legal advice.

Contact information for the nearest ministry staff can be found on the provincial InfoGo website.

Ministry staff

Ministry staff are not required by the NSBA to attend LSB board meetings.

When requested, ministry staff may play a facilitative role at board meetings to aid in the focus and flow of board meetings. Ministry staff will only assume this role at the request of the LSB and attendance will be at the ministry’s discretion.

Ministry staff are available to provide training to new and existing board members on their roles as defined in the NSBA and assist LSBs in understanding the budget process and funding requests.

Inhabitants

All Inhabitants are eligible to be elected as a board member (NSBA, subsection 19(6)).
Inhabitants are eligible to vote at the following meetings:

  • Meetings for the election of board members (NSBA, section 19) (refer to the ‘Meetings’ section of this Guide for further details)
  • If an Inhabitant would like to undertake any of the following, they can refer to the Appendix for specific details:
    • Establishment of an LSB (NSBA, subsection 3(7))
    • Dissolution of an LSB (NSBA, subsection 32(1))
    • Proposed alteration of the boundaries of the board area (NSBA, section 31)
    • Proposed variation of the powers of the board (NSBA, section 31)
    • Where a decision is made in respect of the incursion by the board of a debt, the payment of which is not provided for in the current year (NSBA, section 28(b))
    • In a given year, if the levy is to increase, it has to be approved by a majority vote by the Inhabitants, and
    • Where a decision is made on the proposed levy if imposed under the Provincial Land Tax Act, 2006 (NSBA, section 23(4)(a)) (refer to the section ‘budget process’ in this Guide for further details).

Inhabitants have the right to attend board meetings, subject to subsections 10(4) and (5) of the NSBA which set out when a part of a meeting must be closed to the public and when a part of a meeting may be closed to the public (NSBA, subsections 10(3)-(5)). A board must call sufficient public meetings so that Inhabitants may:

  • participate in a discussion of the current and proposed programs of the board
  • participate in the preparation of the annual estimates of the board
  • participate in a discussion of the review engagement of financial statements, (NSBA, section 16) (refer to the section ‘Meetings’ in this Guide for further details)
  • If part of a meeting is closed to the public, Inhabitants do not have the right to attend that portion of the meeting. The Secretary is required to keep minutes of such meetings (see Closed Meeting section).
  • If in an election year, and both the board and the Secretary fail to call an election meeting before the 15th day of September, any 10 Inhabitants may call a meeting and may appoint 1 of their number to act as Chair of the meeting and such Inhabitant shall act as Chair although the Chair of the board attends the meeting (NSBA, subsection 19(5)).
  • Inhabitants have the right at any reasonable time to examine and copy the reviewed financial statements or review engagement report procured by the board in respect of the LSB (NSBA, subsection 29(6)).

Boards and board members

Boards are made up of either 3 or 5 members (See NSBA, subsection 4(1) and Regulation 737).

The term of office for board members is 3 years, beginning on October 1st in an election year and ending on September 30th three years later, with the exception of the term of office of the first board, which may be set out in the minister’s order that establishes the board (NSBA, subsection 4 (1)(d) & section 5).

Board members are responsible for discussing issues and making necessary decisions for the day-to-day operations of the LSB on behalf of the inhabitants. This includes managing the funds of the board.

A board member must remember they are accountable to the inhabitants of the LSB for decisions made by the board including management of entrusted funds. The board should be attentive to how funds are safeguarded, how financial data is recorded, and how it is disclosed to the public.

A board member shall not be paid any remuneration for the performance of the duties of a board member (NSBA, section 13).

A board shall appoint a secretary. The secretary may be a member of the board other than the Chair or the board may choose to appoint an individual other than a board member. In both situations, the Secretary would serve at the pleasure of the Board. (NSBA, section 14).

The Board may pay the Secretary an honorarium as the board by-law determines (payment for the duties associated with that position). (NSBA, section 15).

If a board member:

  1. ceases to be an inhabitant
  2. fails to attend any three consecutive meetings of the Board
  3. refuses to act
  4. dies

then the remaining members of the board may by by-law call a public meeting to elect an Inhabitant of the board area to serve for the remainder of the term of such board member and the provisions of subsections 19(2), (3), (6) and (7) of the NSBA apply (NSBA, section 9 (3)).

Every 3 years, the board must call an election meeting of the inhabitants to be held in the board area between August 1st and September 30th to elect board members for a 3-year term. See section on meeting notice of election meeting for details.

Chair of the board

The Chair is a member of the board elected by the board members to be the chair for that fiscal year at the board’s first meeting in each fiscal year. The first meeting of a board must take place no later than October 10th in each fiscal year (NSBA, section 21).

The NSBA establishes a number of responsibilities for the chair including the following items:

  • The Chair is the head of the board (NSBA, subsection 9(1)).
  • The Chair presides at all board meetings (NSBA, subsection 9(1)).
  • The Chair of the board shall act as chair of the election meeting (except in the scenarios described in subsections 19(4)-(5)) and, if necessary, shall require an inhabitant to make the declaration described in subsection 20(1) if there is a challenge to any inhabitant’s eligibility to vote or seek office at an election meeting. (NSBA, sections 19 and 20).
  • The Chair has the authority to expel or exclude from any meeting any person, including a board member, for improper conduct at a meeting (NSBA, section 18).

In the event of: 

  1. the Chair’s absence,
  2. the office of the Chair being vacant, or
  3. the Chair refusing to act, 

then the board may, from among the board members, appoint an acting Chair. The acting Chair will, during the absence, vacancy, or refusal to act, act in the place of the Chair and preside at the meetings of the board (NSBA, subsection 9(2)).

Secretary to the board

The board shall by by-law authorize the Secretary to be a signing officer on behalf of the board (NSBA, subsection 12(2)).

The Secretary is appointed by the board and serves at the board’s pleasure (NSBA, section 14).

The Secretary may be but is not required to be a member of the board (NSBA, subsection 14 (1)).

The Secretary cannot be the Chair of the board (NSBA, subsection 14 (1)).

A Secretary who is not a board member need not be an inhabitant of the LSB area.

The Secretary before entering on the duties of office is required to give security in a form and on such terms as the minister may approve for the faithful performance of their duties and for duly accounting for and paying over all money that comes into their hands.

  • The premiums in respect of the security are paid for by the board (NSBA, subsections 14(2) and (3)).

In addition to the other duties set out in Part I of the NSBA, the Secretary is responsible for performing the following duties listed in subsection 14(4) of the NSBA:

  • Attend all meetings of the board.
  • Keep minutes of such meetings, including any part of a meeting that is closed to the public in accordance with subsection 10(4) or (5) of the NSBA.
  • Except for any portion of the minutes that pertain to a part of a meeting that is closed to the public in accordance with subsection 10(4) or (5) of the NSBA, ensure that copies of the minutes of meetings are posted in at least 1 location visible to the public in the board area and, if available, by electronic means or in an electronic format.
  • Post notices of meetings called by the board in at least 1 location visible to the public in the board area, and, if available, publish them by electronic means or in an electronic format. See section on meeting notices for details.
  • Carry on correspondence as directed by the board.
  • Receive and safely keep all money paid to the board.
  • Maintain books of account and other records as may be required by the board or by the minister; and
  • Perform such other duties as the board may assign.
  • The board has the option to pay an honorarium to the Secretary as the board by by-law determines. (NSBA, section 15).
  • If the Secretary is an elected board member the Secretary should declare a conflict and should refrain from voting on the budget in which the honorarium is tabled and the supporting by-law.
  • Either the Secretary or the person or persons calling a public meeting must sign the notice of a public meeting (other than election meetings and Establishment Meetings (NSBA, section 17).
  • If in an election year the board fails to call an election meeting before the 10th day of September, the Secretary shall immediately call the election meeting by giving notice as provided in subsection 19(2) of the NSBA and shall act as the chair of the meeting even if the Chair of the board attends the meeting (NSBA, subsection 19(4)).
  • On or before October 15th of each year, MPAC sends to the Secretary of each LSB a copy of the portion of the interim assessment roll for the lands in the Board area that are liable to assessment and taxation under the Assessment Act and liable to taxation under the Provincial Land Tax Act, 2006 showing the amount of the interim assessment of those lands for the following year (NSBA, section 22).
  • The secretary is responsible for sending to the Minister of Finance a copy of the by-law passed under subsection 25.1(1) of the NSBA requesting that the Minister of Finance collect under the PLTA in the following year the fees or levy charged by the board in respect of a service (NSBA, subsection 25.1(2)).

The Secretary is responsible for the following:

  • sending a copy of the reviewed financial statements and the review engagement report to the minister (NSBA, subsection 29(3)).
  • before the 10th day of December in each year, sending to the minister a copy of the estimates and the by-law adopting the estimates (NSBA, subsection 23(5)).
  • ensuring that all by-laws of the board shall be under seal.
  • The Secretary should also be aware that:
    • the TPON system entails meeting certain requirements; and
    • the LSB should have a file retention procedure and revise it as required (ex. non-digital and digital filing system).
    • allowing any inhabitant at any reasonable time to examine and copy the reviewed financial statements, the review engagement report, and, if the minister causes a board’s accounts and transactions to be audited in accordance with subsection 29(4), any audit report (NSBA, subsection 29(6)).
    • The Secretary must record the votes of meetings in accordance with the NSBA.
  • If there is turnover with the Secretary, the outgoing Secretary (or in the absence of, the board), must transfer all the records, seal, banking information and any LSB operational documents to the newly appointed Secretary (or Chair of the board).

Committees of the board

The board may, if it chooses to, appoint committees to advise the board as the board considers appropriate (NSBA, subsection 7 (4)). These committee activities should be related to the LSBs authorized powers.

Committees operate in an advisory capacity and do not make decisions for the board, nor do they maintain separate bank accounts. Refer to the sections in this Guide on ‘Meetings’ and ‘Financial’ for further details.

If the board decides to create a committee as per section 7(4) of the NSBA, it may do so, and the committee can function as a working group in preparation for a board meeting. These committee meetings do not need to be open to the public, provided no board decisions are made by this committee and that the board conducts sufficient public meetings to allow inhabitants to participate in the preparation of the annual estimates as required by section 16 of the NSBA.

LSB complaint process

In situations of conflict or disagreement, boards and inhabitants are encouraged to make every effort to resolve the issue locally in a way that is acceptable to all parties concerned. If a solution cannot be achieved at the local level, the board, an inhabitant or group of inhabitants may contact the local ministry staff and request assistance in addressing the issue. If the complaint relates to closed meeting concerns, the complainant can contact the Ombudsman as they have responsibility for closed meeting requirements.

Prior to the ministry reviewing a concern or a complaint related to an LSB, the complainant will be required to submit the concern or complaint in writing to the local ministry staff with the following information:

  • documentation of actions taken with the board to address and resolve the issue.
  • when reviewing the issue, the ministry staff will determine whether the issue presented is internal to the LSB or falls within the scope of the NSBA prior to proceeding.
  • the ministry will not direct or provide oversight to the board on areas that fall outside of the ministry’s mandate as outlined in the NSBA.

Issues that are internal to the LSB

Where the issue is internal to an LSB, it will be referred back to the board for resolution. Items that are internal to the LSB and therefore must be addressed and resolved at the local level include, without limitation, the following:

  • contractual disputes.
  • LSB policies on matters relating to procurement, procedures and conflict of interest.
  • scope of financial review engagement and any related issues; and
  • meeting processes beyond the requirements outlined in the NSBA.

In situations where the LSB requires legal advice, it is the responsibility of the LSB to seek its own legal counsel.

Issues within the mandate of the ministry

Items that are within the mandate of the ministry include, without limitation:

  • clarification of requirements under the NSBA.
  • issues of LSB compliance with the NSBA.
  • concerns in relation to the board’s approved powers and the exercise thereof; and
  • concerns in relation to the administration of the board’s affairs and finances as it relates to the approved powers of the board.

Where a conflict arises that is within the scope of the NSBA, the ministry staff will work with the board and inhabitants to resolve the matter at the local level. Where local resolution is not possible, the ministry staff will take additional steps as necessary to facilitate a resolution, including consulting with advisors within the ministry.

Dependant on the nature of the complaint, the ministry staff will make a determination on whether the issue can be resolved between the LSB Board and complainant; if not, the matter will be elevated within the ministry as may be necessary.

Although LSBs are able to, within the confines of the NSBA, determine their own policies and processes for conducting business, the NSBA under sections 29 and 30 provides authority for the minister to intervene in certain situations. Such intervention will occur only in very rare situations and as a last resort where an issue is of such consequence that in the ministry’s view, resolution without ministry intervention is not possible.

Ministry interventions

The minister may at any time cause the accounts and transactions of a board to be audited by a chartered professional accountant who is not a member of the board (NSBA, subsection 29(4)).

The minister may, where the minister determines that a board is: (a) misusing its funds, (b) is not administering its affairs in a proper and straightforward manner, or (c) cannot or is unlikely to be able to meet its obligations as they fall due, order 1 of the following actions:

  1. dissolve the board and call a new election.
  2. dissolve the board and assume the powers of the board.
  3. dissolve the board and the board area and subsection 32(3) applies to the order (NSBA, section 30).