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O. Reg. 586/06: LOCAL IMPROVEMENT CHARGES - PRIORITY LIEN STATUS
under Municipal Act, 2001, S.O. 2001, c. 25
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December 27, 2006 – December 31, 2006 |
Municipal Act, 2001
Loi de 2001 sur les municipalités
ONTARIO REGULATION 586/06
No Amendments
LOCAL IMPROVEMENT CHARGES — PRIORITY LIEN STATUS
Historical version for the period December 27, 2006 to December 31, 2006.
Note: This Regulation comes into force on January 1, 2007. See: O. Reg. 586/06, s. 40.
This Regulation is made in English only.
CONTENTS
Definitions | |
Scope of local improvement | |
Reduction includes exemption | |
Notice | |
Local improvement charges by-law | |
Notice of local improvement charges by-law | |
Local improvement not to proceed for two years if petition received | |
Application to Ontario Municipal Board | |
Petitions | |
Sufficiency of petition | |
Withdrawal of petition | |
Cost of local improvement | |
Cost of water service pipe, private service connection, drive approach | |
Deduction of grants, etc., from cost of work | |
Municipality’s share of cost | |
Reductions and increases in special charges | |
Reduction in special charges | |
Apportioning special charges if lot subdivided | |
Committee of revision | |
Local improvement roll | |
Notice of hearing | |
Statement of cost of work | |
Public access to local improvement roll and statement of cost | |
Committee of revision may correct local improvement roll | |
Power of committee of revision to add lot to be specially charged | |
Special charge imposed if circumstances change | |
Committee of revision may reduce special charge in case of gross error | |
Committee of revision cannot change proportion of municipality’s and owners’ share of costs | |
Amendments to local improvement roll | |
Special charges by-law | |
Annual payments commuted to one present value payment | |
Agreement between municipalities re joint local improvement | |
Special charges do not encumber land | |
Reserve fund for payment of long-term debt | |
Prescribed limits not applicable | |
Borrowing or special charges by-law not invalid if local improvement roll certified | |
Transition re Local Improvement Act | |
Transition re Ontario Regulation 119/03 |
Definitions
“committee of revision” means a committee of revision established under section 19;
“construct” includes reconstruct, extend, enlarge, improve and alter, and “construction” has a corresponding meaning;
“cost”, as applied to a work, means capital cost;
“drive approach” means pavement on a highway that is constructed to serve as an approach to a particular lot;
“engineer” includes a person whom the municipality requires or authorizes to perform any duty that this Regulation requires or authorizes an engineer to perform;
“frontage”, when used in reference to a lot abutting on a work, means the side or limit of the lot that abuts on the work;
“lifetime”, as applied to a work, means its lifetime as estimated by the engineer or, in the case of an appeal, as finally determined by the committee of revision;
“lot” means a parcel of land that is required to be separately assessed under the Assessment Act;
“municipality’s share of the cost” means the portion of the cost of a work that is,
(a) payable by the municipality, and
(b) not to be specially charged under this Regulation;
“owner” means, with respect to a lot, the person appearing to be its owner by the last returned assessment roll, as most recently revised, in the absence of evidence to the contrary;
“owners’ share of the cost” means the portion of the cost of a work that is to be specially charged under this Regulation;
“pavement” means any type of highway surfacing;
“paving” includes laying down or constructing any kind of pavement;
“sewer” includes a sanitary sewer and a storm drain;
“special charge” means a fee or charge imposed under the Act in accordance with this Regulation in respect of the cost of a work undertaken as a local improvement, and “specially charged” has a corresponding meaning;
“value” means, with respect to a lot, its assessed value according to the last returned assessment roll, as most recently revised;
“work” means a capital work. O. Reg. 586/06, s. 1 (1).
(2) For greater certainty, the definition of “work” in subsection (1) includes, without limitation,
(a) constructing a highway;
(b) constructing any works for the collection, production, treatment, storage, supply or distribution of water or for the collection, transmission, treatment or disposal of sewage;
(c) paving a highway;
(d) constructing a curb, gutter, sidewalk or retaining wall in, on or along a highway;
(e) constructing a boulevard on a highway;
(f) sodding any part of a highway and planting trees, shrubs and other plants on a highway;
(g) extending a system of gas or heat works, including any related works that may be necessary for supplying gas or heat to the owners of lots for whose benefit the extension is provided;
(h) constructing a park, square or other public place;
(i) constructing a retaining wall, dyke, breakwater, groyne, crib or other shore protection work along a body of water;
(j) constructing and erecting equipment, plant or works on a highway for the purpose of supplying electric light, including standards and underground conduits and wires;
(k) constructing a highway or subway under a railway or another highway;
(l) widening pavement on a highway;
(m) constructing a water service pipe from the water main to the edge of the highway;
(n) constructing a private sewer connection from the main sewer to the edge of the highway;
(o) constructing a drive approach on a highway; and
(p) constructing noise abatement works on a highway. O. Reg. 586/06, s. 1 (2).
Scope of local improvement
2. (1) Any work may be undertaken as a local improvement. O. Reg. 586/06, s. 2 (1).
(2) The power to undertake a work as a local improvement includes the power to acquire an existing work, and this Regulation applies as if the municipality were undertaking the work so acquired. O. Reg. 586/06, s. 2 (2).
(3) If the municipality has power to undertake a private work, under section 23 of the Act or under any other provision of any Act, it may undertake the private work as a local improvement, and this Regulation applies to undertaking the private work as a local improvement as if the municipality were undertaking its own work. O. Reg. 586/06, s. 2 (3).
Reduction includes exemption
3. For greater certainty, in this Regulation a reference to reducing a charge or other amount includes reducing it to zero. O. Reg. 586/06, s. 3.
Notice
4. (1) Any person or body that is required to give notice under this Regulation shall, except as otherwise provided, give notice in the form, in the manner and at the time that the person or body considers adequate to give reasonable notice. O. Reg. 586/06, s. 4 (1).
(2) A notice to an owner for the purposes of subsections 6 (1), 21 (2), 25 (1) and 26 (2) is sufficiently given if it is,
(a) served personally;
(b) sent by mail to the owner’s place of business or residence as set out in the municipality’s last returned assessment roll, as most recently revised; or
(c) left at or sent by mail to the owner’s actual place of business or residence, if known. O. Reg. 586/06, s. 4 (2).
Local improvement charges by-law
5. (1) If the municipality has the authority to undertake a work it may, in accordance with this Regulation, pass a by-law to undertake the work as a local improvement for the purpose of raising all or any part of the cost of the work by imposing special charges on,
(a) lots that abut on the work;
(b) lots that do not abut on the work but will be immediately benefited by it; or
(c) a combination of the lots described in clauses (a) and (b). O. Reg. 586/06, s. 5 (1).
(2) If the municipality undertakes a work as a local improvement, a special charge imposed with respect to the work in accordance with this Regulation has priority lien status as described in section 1 of the Act. O. Reg. 586/06, s. 5 (2).
(3) A by-law for undertaking a work as a local improvement shall specify the estimated cost of the work, the owners’ share of the cost and the municipality’s share of the cost. O. Reg. 586/06, s. 5 (3).
(4) If a by-law has been passed for undertaking a work as a local improvement and the municipality wishes to make a change in the work to be undertaken, it may, with the approval of the Ontario Municipal Board, amend the by-law to provide for undertaking the work it now proposes, and in that case this Regulation, except sections 6, 7 and 8, applies to the altered work as if it had been provided for in the original by-law. O. Reg. 586/06, s. 5 (4).
Notice of local improvement charges by-law
6. (1) Before passing a by-law to undertake a work as a local improvement under section 5, the municipality shall give notice of its intention to pass the by-law, to the public and to the owners of the lots liable to be specially charged. O. Reg. 586/06, s. 6 (1).
(2) The notice shall include,
(a) the estimated cost of the work;
(b) the estimated lifetime of the work;
(c) the estimated special charges per metre of frontage for the lots liable to be specially charged;
(d) when the special charges described in clause (c) shall be paid;
(e) if the municipality intends to apply to the Ontario Municipal Board under section 8 for approval to undertake the work as a local improvement,
(i) a statement that the municipality intends to apply to the Board for this purpose,
(ii) a description of the right to object, under section 8, to the work being undertaken as a local improvement, and
(iii) the last day for filing an objection under section 8;
(f) if the municipality has received an approval, recommendation or sufficient petition under clause 7 (2) (a), (b) or (c) with respect to the work, a statement of that fact;
(g) if the municipality has not received an approval, recommendation or sufficient petition under clause 7 (2) (a), (b) or (c) with respect to the work,
(i) a description of the right to petition council not to undertake the work as a local improvement,
(ii) the last day for making the petition, and
(iii) the effect of the petition. O. Reg. 586/06, s. 6 (2).
Local improvement not to proceed for two years if petition received
7. (1) If, within 30 days after notice is given to the public under section 6, the municipality receives a sufficient petition, as determined under section 10, against undertaking the work as a local improvement, the municipality shall not undertake the work as a local improvement within two years after receiving the petition. O. Reg. 586/06, s. 7 (1).
(2) Despite subsection (1), a petition of the owners does not prevent the municipality from undertaking the work as a local improvement if it has received,
(a) the approval of the Ontario Municipal Board under section 8 to undertake the work as a local improvement;
(b) a recommendation from the Minister of Health and Long-Term Care or the board of health for the municipality that the construction of the work is necessary or desirable in the public interest on sanitary grounds; or
(c) a sufficient petition, as determined under section 10, in favour of undertaking the work as a local improvement. O. Reg. 586/06, s. 7 (2).
Application to Ontario Municipal Board
8. (1) The municipality may apply to the Ontario Municipal Board for approval to undertake a work as a local improvement and shall provide any information or material that the Board requires in connection with the application. O. Reg. 586/06, s. 8 (1).
(2) Within 30 days after the municipality gives notice to the public under section 6 indicating that it intends to apply to the Board for approval under this section, any owner liable to be specially charged may file an objection to the work being undertaken as a local improvement. O. Reg. 586/06, s. 8 (2).
(3) The objection shall be filed with the clerk of the municipality and shall set out the objections and the reasons in support of them. O. Reg. 586/06, s. 8 (3).
(4) If no objections are filed under this section, the municipality is deemed to have received the Board’s approval. O. Reg. 586/06, s. 8 (4).
(5) If an objection is filed under this section, the municipality shall forward the objection to the Board, together with the application or as soon after making the application as is reasonable. O. Reg. 586/06, s. 8 (5).
(6) The Board shall hold a hearing to consider the application and the objections and may make any order with respect to the work as it considers appropriate. O. Reg. 586/06, s. 8 (6).
(7) Once the municipality has given notice under section 6 indicating that it intends to apply to the Board for approval under this section,
(a) the municipality shall not undertake the work as a local improvement until,
(i) the Board’s approval has been received or is deemed to have been received, or
(ii) the municipality has given a new notice under section 6 that deals with the work and does not indicate that the municipality intends to apply to the Board under this section; and
(b) the passing of a by-law to authorize undertaking the work as a local improvement is deemed not to be a contravention of this Regulation if the by-law provides that it shall not take effect until the municipality receives the Board’s approval. O. Reg. 586/06, s. 8 (7).
Petitions
9. (1) A petition in favour of or against undertaking a work as a local improvement,
(a) shall contain a description of the lot of which each petitioner is the owner, by its assessment roll number as shown on the last returned assessment roll, as most recently revised, or by another description that will enable the clerk of the municipality to identify the lot; and
(b) shall be filed with the clerk, and is deemed to be received by the municipality when it is so filed. O. Reg. 586/06, s. 9 (1).
(2) A petition in favour of undertaking a work as a local improvement shall be signed by at least two-thirds of the owners representing at least one-half of the value of the lots liable to be specially charged for the work. O. Reg. 586/06, s. 9 (2).
(3) A petition against undertaking a work as a local improvement,
(a) shall be signed by at least a majority of the owners representing at least one-half of the value of the lots liable to be specially charged for the work; and
(b) shall be filed with the clerk within 30 days after notice is given to the public under section 6. O. Reg. 586/06, s. 9 (3).
Sufficiency of petition
10. (1) A petition for or against undertaking a work as a local improvement is sufficient if it meets the requirements of section 9 and of this section. O. Reg. 586/06, s. 10 (1).
(2) The sufficiency of a petition shall be determined and certified by the clerk of the municipality. O. Reg. 586/06, s. 10 (2).
(3) If the clerk has determined and certified the sufficiency of a petition, it is deemed to be a sufficient petition even if, afterwards,
(a) the committee of revision increases or reduces the number of lots to be specially charged; or
(b) there is a change in the assessment of lots to be specially charged. O. Reg. 586/06, s. 10 (3).
(4) If the value of a lot cannot, for any reason, be ascertained from the last returned assessment roll, as most recently revised, the clerk shall determine and certify the value for the purposes of this Regulation. O. Reg. 586/06, s. 10 (4).
(5) In determining the sufficiency of a petition,
(a) two or more persons who are jointly assessed for a lot shall be treated as one owner only; and
(b) both, if there are two persons, or a majority of them, if there are more than two, must sign the petition in order for the lot to be counted for the purposes of subsection 9 (2) or clause 9 (3) (a). O. Reg. 586/06, s. 10 (5).
(6) The clerk’s certified determination of the sufficiency of a petition and of the value of a lot are final and binding. O. Reg. 586/06, s. 10 (6).
Withdrawal of petition
11. A person who has signed a petition,
(a) may withdraw his or her name from the petition, by filing a written withdrawal with the clerk, before the clerk has certified the sufficiency of the petition;
(b) cannot withdraw his or her name after the clerk has certified the sufficiency of the petition. O. Reg. 586/06, s. 11.
Cost of local improvement
12. (1) Except as otherwise provided in this Regulation, for the purposes of raising the cost of undertaking a work as a local improvement, the municipality shall,
(a) determine the municipality’s share of the cost, if any; and
(b) specially charge the owners’ share of the cost by imposing an equal special charge per metre of frontage,
(i) on the lots that abut directly on the work,
(ii) on lots that do not abut on the work but will be immediately benefited by it, or
(iii) on a combination of lots described in subclauses (i) and (ii). O. Reg. 586/06, s. 12 (1).
(2) The following may be included in the cost of a work:
1. Engineering expenses.
2. The cost of advertising and of giving notices.
3. Interest on short and long-term borrowing.
4. Compensation for lands taken for the purposes of the work or injuriously affected by it, and the expenses incurred by the municipality in connection with determining the compensation.
5. The estimated cost of incurring long-term debt, including any discount allowed to the purchasers of the debt. O. Reg. 586/06, s. 12 (2).
(3) The special charge per metre of frontage may be different for lots described in subclause (1) (b) (i) than for lots described in subclause (1) (b) (ii). O. Reg. 586/06, s. 12 (3).
(4) If lots described in subclause (1) (b) (ii) that are to be specially charged for a work are not equally benefited by the work, the lots shall be divided into as many areas as there are different levels of benefit, so that each area includes all the lots that receive the same level of benefit. O. Reg. 586/06, s. 12 (4).
(5) The municipality shall assign the cost of the work that is specially charged among the areas created under subsection (4) in the manner the municipality considers fair, and the portion of the cost to be borne by an area shall be specially charged on the lots in the area by an equal special charge per metre of frontage. O. Reg. 586/06, s. 12 (5).
(6) The municipality may provide that the cost of a work to be specially charged on lots is not required to be paid with respect to one or more of the lots that are exempt from taxation. O. Reg. 586/06, s. 12 (6).
(7) If any Act, regulation or by-law provides that special charges under this Regulation are not required to be paid with respect to a lot, the following rules apply:
1. The lot is, despite the exemption, subject to this Regulation for all purposes and shall be specially charged. However, the special charges that become payable while the lot remains exempt shall be paid by the municipality and are not collectable from the owner.
2. The owner of the lot may not petition in favour of or against undertaking a work as a local improvement.
3. The owner of the lot and its value shall not be considered in determining the sufficiency of a petition. O. Reg. 586/06, s. 12 (7).
Cost of water service pipe, private service connection, drive approach
13. (1) Subject to subsection (2), the cost of a water service pipe, private sewer connection or drive approach that is specially charged shall be specially charged on the particular lot for which it was constructed. O. Reg. 586/06, s. 13 (1).
(2) Unless the two sides of a highway are served by separate water mains or sewers, the cost of water service pipes and private sewer connections shall be the cost of the work from the centre of the highway to the edge of the highway, regardless of the location of the water main or sewer. O. Reg. 586/06, s. 13 (2).
Deduction of grants, etc., from cost of work
14. The amount of a grant or other contribution in cash to be received by the municipality and to be applied towards the cost of any work shall be deducted from the entire cost of the work, subject to subsection 15 (2). O. Reg. 586/06, s. 14.
Municipality’s share of cost
15. (1) The municipality’s share of the cost of a work shall include any excess cost that is caused by the work being constructed with a greater capacity than is required for the purposes of the lots that are specially charged. O. Reg. 586/06, s. 15 (1).
(2) The amount of a grant or other contribution that is to be applied towards any excess cost described in subsection (1) shall be applied to reduce the municipality’s share of the cost. O. Reg. 586/06, s. 15 (2).
Reductions and increases in special charges
16. (1) If a lot has a flankage and a frontage that abuts on a work and the size and nature of the lot is such that all or part of the work that abuts on the flankage is of no benefit to the lot, a reduction shall be made in the amount to be specially charged in respect of that flankage, sufficient to adjust the amount charged on that lot on a just and equitable basis as compared with the other specially charged lots. O. Reg. 586/06, s. 16 (1).
(2) If all or part of a lot is unfit for building purposes, a reduction shall be made in the amount that is to be specially charged on the lot, sufficient to adjust that amount on a just and equitable basis as compared with the amount to be charged on the other specially charged lots that are fit for building purposes. O. Reg. 586/06, s. 16 (2).
(3) If a lot has a larger frontage than the threshold described in subsection (4) and will not benefit from a work to the same degree as other lots benefited by the work, a reduction shall be made in the amount to be specially charged on the lot, sufficient to adjust that amount on a just and equitable basis as compared with the other specially charged lots. O. Reg. 586/06, s. 16 (3).
(4) The threshold referred to in subsection (3) is,
(a) the number of metres that the municipality specifies by by-law; or
(b) if the matter is not dealt with by by-law, 30 metres. O. Reg. 586/06, s. 16 (4).
(5) A reduction or increase shall be made in the amount to be specially charged on a triangular or irregularly shaped lot, sufficient to adjust that amount on a just and equitable basis as compared with the other specially charged lots, having regard to the situation, value and superficial area of the lot. O. Reg. 586/06, s. 16 (5).
(6) A reduction or increase required by this section shall be made by deducting from or adding to the total frontage of the lot liable to be specially charged a number of metres sufficient to make the proper reduction or increase, but the whole of the lot shall be charged with the amount to be specially charged on the lot. O. Reg. 586/06, s. 16 (6).
(7) The amount of any reduction or increase in the amount to be specially charged on a lot shall be added to or deducted from the municipality’s share of the cost. O. Reg. 586/06, s. 16 (7).
Reduction in special charges
17. (1) If the municipality is of the opinion that any lot abutting on the work will not benefit from it, or will not benefit from it to the same extent as other lots benefited by the work, the municipality may reduce the amount to be specially charged on that lot, to adjust the amount on a just and equitable basis as compared with the other specially charged lots. O. Reg. 586/06, s. 17 (1).
(2) If the municipality reduces the amount to be specially charged to zero, the amount of the reduction in the amount to be specially charged on the lot shall continue to be included in the owners’ share of the cost of the work and specially charged on the reduced frontage. O. Reg. 586/06, s. 17 (2).
(3) If the municipality reduces the amount to be specially charged to an amount that is greater than zero, the amount of the reduction in the amount to be specially charged on the lot shall be added to the municipality’s share of the cost. O. Reg. 586/06, s. 17 (3).
(4) A reduction under this section shall be made by deducting from the total frontage of the lot a number of metres sufficient to make the proper reduction, but the whole of the lot shall be charged with the amount, if any, to be specially charged on the lot. O. Reg. 586/06, s. 17 (4).
Apportioning special charges if lot subdivided
18. (1) If a lot that is or is to be specially charged is subdivided into two or more new lots, the municipality may apportion the amount described in subsection (2) among the new lots according to the extent of their respective frontages by imposing an equal special charge per metre of frontage. O. Reg. 586/06, s. 18 (1).
(2) The amount that may be apportioned under subsection (1) is the sum of,
(a) the special charges that would otherwise have been charged on the original lot; and
(b) any special charges that would, but for this section, become part of the municipality’s share of the cost because of any new highway provided for by the subdivision. O. Reg. 586/06, s. 18 (2).
(3) Despite subsection (1), if the municipality is of the opinion that the new lots do not all benefit from the work to the same degree, the municipality may apportion the special charges among the new lots in any manner the municipality considers just and equitable, having regard to the relative degree of benefit received by each of the new lots. O. Reg. 586/06, s. 18 (3).
(4) Section 21 applies, with necessary modifications, to special charges imposed under subsection (1). O. Reg. 586/06, s. 18 (4).
(5) The local improvement roll shall be amended to reflect the changes made under this section. O. Reg. 586/06, s. 18 (5).
Procedure for Imposing Special Charges
Committee of revision
19. (1) The municipality may establish a committee of revision consisting of three or five members appointed by the council. O. Reg. 586/06, s. 19 (1).
(2) Every member of the committee shall be a person who is qualified to be elected as a member of the council. O. Reg. 586/06, s. 19 (2).
(3) A majority of the members of the committee constitutes a quorum. O. Reg. 586/06, s. 19 (3).
Local improvement roll
20. Before a special charge is imposed, the treasurer of the municipality shall prepare a local improvement roll setting out,
(a) the cost of the work;
(b) every lot to be specially charged, the name of the owner and the number of metres of its frontage to be specially charged;
(c) every lot that, but for subsection 12 (7), would be exempt from being specially charged, and the number of metres of its frontage;
(d) the special charges per metre of frontage with which each lot is to be specially charged;
(e) when the special charges described in clause (d) shall be paid; and
(f) the lifetime of the work. O. Reg. 586/06, s. 20.
Notice of hearing
21. (1) Before a special charge is imposed, the municipality shall set a time and a place for the committee of revision to hold a hearing about,
(a) objections against the proposed local improvement roll; and
(b) the municipality’s proposed revisions to the proposed local improvement roll. O. Reg. 586/06, s. 21 (1).
(2) The municipality shall give notice of the hearing to the public and to the owner of every lot to be specially charged. O. Reg. 586/06, s. 21 (2).
(3) Any person who owns a lot to be specially charged may object to a special charge by filing an objection, setting out the objection and the reasons in support of it, with the clerk of the municipality not later than seven days before the day set for the hearing. O. Reg. 586/06, s. 21 (3).
(4) The municipality may propose a revision to the proposed local improvement roll by filing a proposed revision, setting out the proposed revision and the reasons in support of it, with the clerk not later than seven days before the day set for the hearing. O. Reg. 586/06, s. 21 (4).
(5) If no objection or proposed revision is received under this section, the treasurer shall certify the local improvement roll, without a hearing by the committee. O. Reg. 586/06, s. 21 (5).
Statement of cost of work
22. (1) Before a special charge is imposed, the engineer and the treasurer of the municipality shall prepare and certify a statement showing the actual cost of the work. O. Reg. 586/06, s. 22 (1).
(2) If the final cost of the work is not yet known and, in the opinion of the engineer and treasurer, work whose cost amounts to 75 per cent of the final cost has been completed, the engineer and treasurer shall estimate the actual cost of the work for the purpose of subsection (1). O. Reg. 586/06, s. 22 (2).
(3) When an estimate is used as described in subsection (2),
(a) the engineer and the treasurer shall certify the final cost of the work when it is known;
(b) if the final cost as certified under clause (a) is more than the amount set out in the statement or the amount determined by the committee of revision under section 24, the excess shall be borne by the municipality; and
(c) if the final cost as certified under clause (a) is less than the amount set out in the statement or the amount determined by the committee of revision under section 24, the difference shall be applied towards payment of the special charges imposed with respect to the work. O. Reg. 586/06, s. 22 (3).
Public access to local improvement roll and statement of cost
23. Copies of the local improvement roll prepared under section 20 and of the statement of cost prepared under section 22,
(a) shall be available for inspection at the office of the clerk of the municipality until the treasurer of the municipality has certified the local improvement roll; and
(b) shall be provided to the committee of revision before the start of any hearing under section 21. O. Reg. 586/06, s. 23.
Committee of revision may correct local improvement roll
24. At a hearing held under section 21, the committee of revision may review the proposed local improvement roll and correct it as to any or all of the following matters:
1. The cost of the work.
2. The names of the owners of the lots.
3. The frontage or other measurements of the lots.
4. The amount of the reduction or increase to be made under section 16 or 17 in respect of any lot.
5. The lots that would be exempt from being specially charged, but for subsection 12 (7).
6. The lifetime of the work.
7. The charge per metre of frontage to be imposed on any lot.
8. If all or part of the owners’ share of the cost is to be specially charged on lots that do not abut on the work,
i. the non-abutting lots that are to be specially charged, and
ii. the amount of the special charge to be imposed on them. O. Reg. 586/06, s. 24.
Power of committee of revision to add lot to be specially charged
25. (1) During a hearing held under section 21, if it appears to the committee of revision that any lot that has not been specially charged should be specially charged or, as a result of a proposed revision by the municipality under section 21, a special charge for any lot should be changed, the committee shall adjourn its hearing for at least 14 days and shall cause notice to be given to the owner of the lot. O. Reg. 586/06, s. 25 (1).
(2) If the committee of revision determines that a lot should be specially charged, the committee shall determine the amount to be specially charged on the lot. O. Reg. 586/06, s. 25 (2).
(3) Despite subsection (1), the committee of revision may, with the written consent of the owner of the lot, dispense with an adjournment or reduce it to less than 14 days. O. Reg. 586/06, s. 25 (3).
Special charge imposed if circumstances change
26. (1) If a reduction is made under section 16 or 17 with respect to a lot and circumstances change so that the reduction is no longer warranted, the municipality may impose on the lot the special charge that would originally have been imposed, for the year in which the circumstances change and for the remaining years in which special charges are imposed. O. Reg. 586/06, s. 26 (1).
(2) Before an increased special charge is imposed under subsection (1), notice of the proposed special charge shall be given to the owner of the lot. O. Reg. 586/06, s. 26 (2).
(3) A person may object to the increase to the special charge on the grounds that the special charge is incorrect or not warranted by filing a written objection, setting out the objection and the reasons in support of it, with the clerk of the municipality within 10 days after notice is given under subsection (2). O. Reg. 586/06, s. 26 (3).
(4) The committee of revision shall hold a hearing to consider the objection and may make any decision the municipality could have made. O. Reg. 586/06, s. 26 (4).
Committee of revision may reduce special charge in case of gross error
27. (1) The committee of revision may, at any time after the certification of the local improvement roll, reduce any special charge for the current year and the remaining years for which the special charge is imposed if it determines that the special charge is incorrect by reason of any gross or manifest error. O. Reg. 586/06, s. 27 (1).
(2) The amount of the reduction shall be borne by the municipality. O. Reg. 586/06, s. 27 (2).
Committee of revision cannot change proportion of municipality’s and owners’ share of costs
28. The committee of revision does not have the authority to change the proportion of the municipality’s and the owners’ share of the cost, except to the extent that the proportion may be affected by a decision made under section 24, 25, 26 or 27. O. Reg. 586/06, s. 28.
Amendments to local improvement roll
29. (1) The treasurer of the municipality shall make any corrections in the local improvement roll that are necessary to give effect to a decision of the committee of revision, and shall certify the corrected roll. O. Reg. 586/06, s. 29 (1).
(2) The local improvement roll, when certified by the treasurer under subsection (1) or 21 (5), and the special charges set out in the certified local improvement roll are final and binding, except where otherwise provided in this Regulation. O. Reg. 586/06, s. 29 (2).
(3) When the local improvement roll is certified by the treasurer under subsection (1) or 21 (5), the work in respect of which the roll has been prepared and certified is conclusively deemed to have been lawfully undertaken in accordance with this Regulation. O. Reg. 586/06, s. 29 (3).
Special charges by-law
30. (1) After the treasurer of the municipality has certified the local improvement roll under section 21 or 29, the municipality shall by by-law provide that,
(a) the amount specially charged on each lot set out in the roll shall be sufficient to raise that lot’s share of the cost by a specified number of annual payments; and
(b) a special charge shall be imposed in each year on each lot equal to the amount of the payment payable in that year. O. Reg. 586/06, s. 30 (1).
(2) The amount of each annual payment shall be entered in the local improvement roll. O. Reg. 586/06, s. 30 (2).
(3) The annual payments with respect to a work shall not extend beyond its lifetime. O. Reg. 586/06, s. 30 (3).
Annual payments commuted to one present value payment
31. (1) Despite section 30, the municipality may allow two or more annual payments with respect to a lot to be commuted for a single payment equal to the present value of the annual payments. O. Reg. 586/06, s. 31 (1).
(2) For the purpose of calculating the present value, the municipality shall use the rate of interest it considers appropriate. O. Reg. 586/06, s. 31 (2).
Agreement between municipalities re joint local improvement
32. (1) Two or more municipalities may enter into an agreement to undertake any work as a joint local improvement. O. Reg. 586/06, s. 32 (1).
(2) The agreement may specify,
(a) which municipality will undertake the work;
(b) the manner in which the cost of the work is to be financed;
(c) the proportions in which the amount described in subsection (3) shall be borne by the municipalities respectively; and
(d) the times at which amounts are to be paid from one municipality to another. O. Reg. 586/06, s. 32 (2).
(3) The amount mentioned in clause (2) (c) is the portion of the cost of the work that is payable by the municipality that will undertake the work and not to be specially charged under this Regulation. O. Reg. 586/06, s. 32 (3).
(4) The municipality that will undertake the work has all the powers and duties in respect of the work that may be exercised or are to be performed by a municipality that undertakes a work as a local improvement and, for the purposes of undertaking the work, it is deemed to lie wholly within and to be under the exclusive jurisdiction of the municipality that will undertake it. O. Reg. 586/06, s. 32 (4).
(5) The clerk of the municipality that will undertake the work shall give a copy of the by-law imposing special charges to the clerk of any other municipality where a lot on which special charges have been imposed is located. O. Reg. 586/06, s. 32 (5).
(6) The special charges required by the by-law to be imposed and collected in any year on lots in any municipality, other than the municipality that will undertake the work, shall be collected by the treasurer of the municipality in which the lots are located as if the special charges had been imposed by that municipality, and the proceeds of the special charges shall form part of the operating revenues of the municipality collecting them. O. Reg. 586/06, s. 32 (6).
(7) A municipality that is a party to an agreement under this section may assume all or a part of the cost of any work undertaken under this section that is to be specially charged on lots in the municipality, and thereafter that cost shall be borne by that municipality. O. Reg. 586/06, s. 32 (7).
Special charges do not encumber land
33. (1) Special charges imposed on land under this Regulation do not constitute an encumbrance on the land unless they are unpaid and in arrears. O. Reg. 586/06, s. 33 (1).
(2) Subsection (1) applies,
(a) as between vendor and purchaser; and
(b) in respect of a covenant,
(i) against encumbrances,
(ii) for the right to convey, or
(iii) for quiet possession free from encumbrances. O. Reg. 586/06, s. 33 (2).
Reserve fund for payment of long-term debt
34. (1) If the municipality incurs long-term debt with respect to the cost of undertaking a work as a local improvement, special charges imposed and collected in accordance with this Regulation with respect to the work shall be placed in a reserve fund for the payment of the long-term debt and the fund, including interest, shall not be used for any other purpose until the debt is paid in full. O. Reg. 586/06, s. 34 (1).
(2) Subsection (1) does not apply to a present value payment under section 31 if the municipality reduced the amount of the long-term debt it incurred with respect to the work to reflect the present value payment. O. Reg. 586/06, s. 34 (2).
Prescribed limits not applicable
35. Debt and financial obligation limits for municipalities prescribed under subsection 401 (4) of the Act do not apply to long-term debt incurred with respect to the owners’ share of the cost of a work. O. Reg. 586/06, s. 35.
Borrowing or special charges by-law not invalid if local improvement roll certified
36. (1) If the local improvement roll with respect to a work is certified under section 21 or 29, no by-law for borrowing money or imposing special charges with respect to the work shall be quashed, set aside or otherwise found to be invalid because it is illegal or for any other defect in it. O. Reg. 586/06, s. 36 (1).
(2) A court in which a proceeding is taken to quash, set aside or otherwise find a by-law described in subsection (1) to be invalid may, on the conditions the court considers appropriate, order the municipality to amend or replace the by-law so that it would be valid even in the absence of that subsection. O. Reg. 586/06, s. 36 (2).
(3) The municipality, on the request of any person to whom the municipality has incurred any liability, obligation or debt under a by-law described in subsection (1), may amend or replace the by-law so that it would be valid even in the absence of that subsection. O. Reg. 586/06, s. 36 (3).
(4) Every liability, obligation or debt incurred by the municipality under a by-law that is amended in the circumstances described in subsection (2) or (3) is as valid and binding as if the amended or replacement by-law had been in force at the time the liability, obligation or debt was incurred. O. Reg. 586/06, s. 36 (4).
Transition re Local Improvement Act
“old Act” means the Local Improvement Act, as it read on December 31, 2002. O. Reg. 586/06, s. 37 (1).
(2) Any matter or proceeding commenced by a municipality under the old Act on or before March 31, 2003,
(a) may be continued after that date; and
(b) if it is continued, shall be continued and finally disposed of as if that Act were still in force. O. Reg. 586/06, s. 37 (2).
(3) For the purpose of subsection (2), the undertaking of a work as a local improvement is deemed to have been commenced under the old Act on the earliest of,
(a) the day the municipality passes a by-law to undertake the work as a local improvement;
(b) the first day the municipality gives notice, in Form 1, 2 or 3 of the old Act, of its intention to undertake the work as a local improvement; and
(c) the day a petition in favour of undertaking the work as a local improvement is received by the clerk of the municipality. O. Reg. 586/06, s. 37 (3).
Transition re Ontario Regulation 119/03
“old Regulation” means Ontario Regulation 119/03 (Local Improvement Charges — Priority Lien Status) made under the Act, as it read on the day before this Regulation comes into force. O. Reg. 586/06, s. 38 (1).
(2) Any matter or proceeding commenced by a municipality under the old Regulation on or before the day this Regulation comes into force,
(a) may be continued after that date; and
(b) if it is continued, shall be continued and finally disposed of as if the old Regulation were still in force. O. Reg. 586/06, s. 38 (2).
(3) For the purpose of subsection (2), the undertaking of a work as a local improvement is deemed to have been commenced under the old Regulation on the day the municipality gave public notice under section 3 of that regulation. O. Reg. 586/06, s. 38 (3).
39. Omitted (revokes other Regulations). O. Reg. 586/06, s. 39.
40. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 586/06, s. 40.