Rights, roles and responsibilities
Ministry
The local ministry staff person (known as 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 LSBs is responsible for its compliance with the NSBA.
The ministry does not provide legal opinions to LSBs. Where legal interpretation of the NSBA or of 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 INFO-GO 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 run for office 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 for further details)
- where a decision is made on the following, refer to the Appendix of this guide 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))
- where a decision is made on the proposed levy if imposed under the Provincial Land Tax Act, 2006 (NSBA, section 23.1(5)) (refer to the section Budget process for further details)
- any 10 inhabitants have the right to propose a dissolution of an LSB, and if they do so, a vote of the inhabitants must be held (NSBA, subsection 32(1)) (refer to the Appendix)
Inhabitants have the right to attend any and all board meetings (NSBA, subsection 10(3)) and the board must call sufficient public meetings so that inhabitants may:
- participate in discussions on current and proposed programs of the board
- participate in preparation of the annual estimates of the board
- participate in discussions of the annual audit report on the issues, budgets and audits (NSBA, section 16) (refer to the Meetings section for further details)
If in any year both the board and the secretary fail to call an election meeting before September 15, any 10 inhabitants have the right to call a meeting and may appoint 1 of participating inhabitants to act as chair of the meeting.
The inhabitant appointed as chair shall act as chair even if the chair attends the meeting (NSBA, subsection 19(5)).
Inhabitants have the right at any reasonable time to examine and copy the audit report procured by the board in respect of the LSB (NSBA, subsection 29(4)). LSBs are bound by MFIPPA and it is their responsibility to ensure that requests for LSB documentation complies with the act.
Boards and board members
Boards are made up of either 3 or 5 members as set out in the regulation establishing the LSB (NSBA, sub-sections 3(8) and 4(1)).
The term of office for board members is 1 year, beginning on October 1 and ending on September 30 (NSBA, section 5), with the exception of the term of office of the first board, which may be set out in the regulation establishing the LSB if the minister so orders (NSBA, subsection 4(1)(d) and section 5).
While many of the activities that a board undertakes are done at the discretion of the board, there are certain matters the board is obliged to undertake. Refer to the NSBA and for details.
Board members are responsible, on behalf of the inhabitants within the local services board, to discuss issues and make the necessary decisions for the day-to-day operation of the LSB including responsibility for the management of funds entrusted to the board.
A board member must bear in mind that they are accountable to the inhabitants of the local services board for decisions made by the board including responsibility for the management of funds entrusted to the board and should be attentive to the manner in which funds are safeguarded, how financial data is recorded, and how it is disclosed to the public.
Board members cannot receive payment for performance of duties as board members (NSBA, section 13).
A board may appoint 1 of its own members as secretary or 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 secretary can receive an honorarium (payment for the duties associated with that position). (NSBA, section 15).
If a board member:
- ceases to be an inhabitant
- fails to attend any 3 consecutive meetings of the board
- refuses to act
- dies
then a 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 (NSBA, section 9(3)).
Each year, the board must call an election meeting between August 1 and September 30 to elect board members for the upcoming LSB fiscal year. Read the 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 at the board’s first meeting after its initial election. The first meeting of a board must take place no later than October 10 of each year. (NSBA, section 21).
The NSBA establishes a number of responsibilities, the chair:
- is the head of the board (NSBA, subsection 9(1))
- presides at all board meetings (NSBA, subsection 9(1))
- of the board shall act as chair of the annual elections and if necessary, shall administer declarations of eligibility to vote (NSBA, sections 19 and 20)
- has the authority to expel or exclude anyone, including a board member for improper conduct at a meeting (NSBA, section 18)
In the event of the chair’s absence, the position of chair being vacant or the chair refusing to act, the board members may appoint an acting chair from among the board members. 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(3)).
Secretary to the board
The secretary is a signing officer for the board (NSBA, subsection 12(2)).
The secretary is appointed by the board on an annual basis, 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)).
It is not unusual for the same secretary to be re-appointed annually over several years, which provides continuity in the conduct of the board’s business.
A secretary who is not a board member need not be an inhabitant of the LSB area. Subsection 14(1) of the NSBA provides for the appointment of the secretary and it does not limit the appointment to an inhabitant of the board area.
The secretary is required to provide security for the faithful performance of his or her duties, including duly accounting for and paying over all money that comes into his or her hands.
Security must be in the form and on such terms as the minister may approve.
Premiums in respect of the security are paid for by the board (NSBA, subsections 14(2) and (3)).
The secretary is responsible to ensure the items listed in the NSBA, subsection 14(4) which form part of his or her duties are performed:
- Attend all meetings of the board.
- Keep minutes of the meetings.
- Post the minutes of meetings in at least 1 location visible to the public in the board area and, if available, published 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, published by electronic means or in an electronic format. Read the 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.
The board has the option to pay an honorarium to the secretary. Where an honorarium is paid, the board must pass a by-law to that effect. (NSBA, section 15).
If the secretary is an elected board member the secretary must declare conflict and must refrain from voting on the budget in which the honorarium is tabled and the supporting by-law.
Either the secretary or the person who called the meeting must sign the notice of the meeting (other than election meetings and establishment meetings (NSBA, section 17).
If the board fails to call an election meeting before September 10 in a given year, the secretary must immediately call the election meeting in accordance with the NSBA and shall act as the chair of the meeting even if the chair attends the meeting (NSBA, subsection 19(4)).
On or before October 15 of each year, MPAC sends the secretary of a 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 PLTA showing the amount of the interim assessment of those lands for the following year (NSBA, section 22).
The secretary is responsible for sending the minister a copy of the by-law passed by the board to approve the annual estimates (NSBA, subsection 23(5)). A copy should go to ministry staff.
The secretary is responsible for sending the Ministry of Finance a copy of the by-law passed by the board of an opted-in LSB that requests the minister of Finance to collect under the PLTA in the following year the rate or rates in respect of land that is taxable under the PLTA (NSBA, subsection 25(2)).
The secretary is also responsible for sending the Ministry of Finance a copy of the by-law passed by the board of an opted-in LSB that requests the minister of Finance to collect under the PLTA in the following year the fees charged by the board in respect of a service (NSBA, subsection 25.1(2)).
The secretary is responsible for sending a copy of the annual audit report to the minister (NSBA, subsection 29(3)) and a copy to ministry staff.
The secretary must permit any Inhabitant at any reasonable time to examine and copy the annual audit report (NSBA, subsection 29(4)).
The secretary must record the votes of meetings in accordance with the NSBA.
The secretary must send to the minister and copies to ministry staff voting results, minutes of meetings, and such other correspondence as may be required by the NSBA.
The secretary may destroy the ballots once the chair and board pass a motion to destroy the ballots following a vote.
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).
The secretary is responsible for affixing the LSB seal on all necessary documents.
The secretary is responsible for meeting Transfer Payment Ontario (TPON) requirements. Read the section on TPON for details.
The secretary should ensure the LSB has a file retention procedure and revise it as required (for example: non-digital and digital filing system).
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)).
Committees operate in an advisory capacity and do not make decisions for the board, nor do they maintain separate bank accounts. Refer to the Meetings and Financial sections for further details.
If the board decides to create a committee as per subsection 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(a), 16(b), 16(c) of the NSBA.
LSB complaint process
In situations of conflict or disagreement, boards and inhabitants are encouraged to make every effort to address the issue and reach a solution at the local level that is acceptable to all parties concerned. Where a solution cannot be achieved at the local level, then the board, an inhabitant or group of inhabitants may contact the local ministry staff and request his or her assistance in addressing the issue.
Prior to the ministry reviewing a concern or complaint related to an LSB, the complainant will be required to submit the concern or complaint in writing to the local ministry staff with 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 annual audit and any related issues
- meeting processes beyond the requirements outlined in the NSBA
In situations where the LSB requires legal advice, it is the responsibility of the LSB board 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
- 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 (NSBA, subsection 29(5)).
The minister may, where the minister determines that a board is:
- misusing its funds
- is not administering its affairs in a proper and straightforward manner
- cannot or is unlikely to be able to meet its obligations as they fall due, order one of the following actions:
- dissolve the board and call a new election
- dissolve the board and assume the powers of the board
- dissolve the board and the board area. (NSBA, section 30)