O. Reg. 119/03: LOCAL IMPROVEMENT CHARGES - PRIORITY LIEN STATUS

under Municipal Act, 2001, S.O. 2001, c. 25

Versions

	revoked or spent January 1, 2007
	December 27, 2006 – December 31, 2006
	April 1, 2003 – December 26, 2006

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Municipal Act, 2001
Loi de 2001 sur les municipalités

ONTARIO REGULATION 119/03

Amended to O. Reg. 586/06

LOCAL IMPROVEMENT CHARGES — PRIORITY LIEN STATUS

Note: This Regulation was revoked on January 1, 2007. See: O. Reg. 586/06, ss. 39, 40.

This Regulation is made in English only.

SKIP TABLE OF CONTENTS

CONTENTS


1.	Interpretation
2.	Local improvement charges by-law
3.	Notice of local improvement charges by-law
4.	Local improvement not to proceed for two years if petition received
5.	Application to Ontario Municipal Board
Petitions
6.	Petitions
7.	Sufficiency of petitions
8.	Withdrawal of petition
How Costs are Borne
9.	Cost of local improvement
10.	Cost of water service pipe, private service connection, drive approach
11.	Deduction of grants, etc. from cost of work
12.	Municipality’s share of the cost
13.	Cost of sewage outlet where lots are not benefited or served
14.	Cost of sewage outlet on non-abutting benefited lands
15.	Reductions and increases in special charges
16.	Reduction in special charges for work on lane
17.	Apportioning special charges where lot is subdivided
Procedure for Imposing Special Charges
18.	Court of revision
19.	Local improvement roll
20.	Public notice
21.	Statement of cost of the work
22.	Public access to local improvement roll and statement of cost
23.	Court of revision may correct local improvement roll
24.	Power of court of revision to add a lot to be specially charged
25.	Special charge imposed where circumstances change
26.	Court of revision may reduce special charge in case of gross error
27.	Court of revision cannot change proportion of municipality’s and owners’ share of costs
28.	Amendments to local improvement roll
29.	Special charges by-law
30.	Annual payments commuted to one present value payment
31.	Agreement between municipalities re local improvement of shared highway
32.	Special charges do not encumber land
Debt
33.	Restrictions on long-term debt for local improvement
34.	Payment of long-term debt
35.	Reserve fund for payment of long-term debt
36.	Prescribed limits not applicable
37.	Levy imposed before debt incurred not illegal if by-law authorizing debt is passed
38.	Borrowing or special charges by-law not invalid if local improvement roll is certified

Interpretation

1. (1) In this Regulation,

“construct” includes reconstruct, extend, enlarge, improve and alter and “construction” has a corresponding meaning;

“cost”, as applied to a work, means capital cost;

“court of revision” means a court of revision constituted under this Regulation;

“drive approach” means pavement on a highway which is constructed to serve as an approach to a particular lot;

“engineer” includes a person authorized or required by the council of a municipality to perform any duty that under this Regulation is required or authorized to be performed by an engineer;

“frontage”, when used in reference to a lot abutting on a work, means that side or limit of the lot that abuts on the work;

“lifetime”, as applied to a work, means the lifetime of the work as estimated by the engineer or, in case of an appeal, as finally determined by the court 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 that portion of the cost of a work that is payable by the municipality and that is not to be specially charged under this Regulation;

“owner” means, with respect to a lot and in the absence of evidence to the contrary, the person appearing by the last returned assessment roll, as most recently revised, to be the owner of the lot;

“owners’ share of the cost” means that 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;

“reduction” includes an exemption;

“sewer” includes a sanitary sewer and a storm drain;

“special charge” means a fee or charge imposed under Part XII of 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, the assessed value of the land, as defined in the Assessment Act, according to the last returned assessment roll, as most recently revised;

“work” means a work that may be undertaken as a local improvement. O. Reg. 119/03, s. 1 (1).

(2) The following works may be undertaken as local improvements:

1. Constructing a highway.

2. Constructing any works for the collection, production, treatment, storage, supply or distribution of water or for the collection, transmission, treatment or disposal of sewage.

3. Paving a highway.

4. Constructing a curb, gutter, sidewalk or retaining wall in, upon or along a highway.

5. Constructing a boulevard on a highway.

6. Sodding any part of a highway and planting trees, shrubs and plants on a highway.

7. Extending a system of gas or heat works, including all such works that may be necessary for supplying gas or heat to the owners of lots for whose benefit the extension is provided.

8. Constructing a park, square or other public place.

9. Constructing a retaining wall, dyke, breakwater, groyne, crib or other shore protection work along any body of water.

10. Constructing and erecting equipment, plant or works on a highway for the purpose of supplying electric light, including standards and underground conduits and wires.

11. Constructing a highway or subway under a railway or another highway.

12. Widening pavement on a highway.

13. Constructing a water service pipe from the water main to the edge of the highway.

14. Constructing a private sewer connection from the main sewer to the edge of the highway.

15. Constructing a drive approach on a highway.

16. Constructing noise abatement works on a highway. O. Reg. 119/03, s. 1 (2).

(3) 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. 119/03, s. 1 (3).

(4) Where a municipality has the authority, under section 23 of the Act or under any other provision of any Act, to undertake a private work of a type described in subsection (2), the municipality 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. 119/03, s. 1 (4).

(5) Where any person or body is required to give notice under this Regulation, the person or body shall, except as otherwise provided, give notice in the form and in the manner and at the time that the person or body considers adequate to give reasonable notice. O. Reg. 119/03, s. 1 (5).

Local improvement charges by-law

2. (1) A municipality that has the authority to undertake a work described in subsection 1 (2) 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 lots abutting on the work or lots not abutting on the work but which will be immediately benefited by the work or a combination of these abutting and non-abutting lots. O. Reg. 119/03, s. 2 (1).

(2) If a 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. 119/03, s. 2 (2).

(3) Despite subsection (1) and except where otherwise provided, no work undertaken as a local improvement,

(a) shall be reconstructed as a local improvement under this Regulation during its lifetime; or

(b) shall be repaired or maintained as a local improvement under this Regulation. O. Reg. 119/03, s. 2 (3).

(4) 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. 119/03, s. 2 (4).

(5) Where 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 this Regulation, except sections 3, 4 and 5, applies to the altered work as if it had been provided for in the original by-law. O. Reg. 119/03, s. 2 (5).

Notice of local improvement charges by-law

3. Before passing a by-law to undertake a work as a local improvement under section 2, 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 and the notice shall include, where applicable,

(a) a general description of the proposed work;

(b) the location of the proposed work;

(d) the estimated lifetime of the work;

(e) the municipality’s share of the cost;

(f) a description of the lots liable to be specially charged with respect to the work;

(g) the estimated annual special charge per metre frontage for lots abutting on the proposed work;

(h) the estimated annual special charge per metre frontage for lots not abutting on the proposed work and where the non-abutting lots are divided into areas under subsection 9 (3), the estimated annual special charge per metre frontage in each area;

(i) the number of years the special charges described in clauses (g) and (h) shall be paid;

(j) if the municipality allows a single payment under section 30 instead of the payment of annual special charges, the present value calculated under that section of all the annual special charges and a description of the right to make a single payment;

(k) if the municipality intends to apply to the Ontario Municipal Board under section 5 for approval to undertake the proposed 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 to the work being undertaken as a local improvement under section 5, and

(iii) the last day for filing an objection under section 5;

(l) if the municipality has received an approval, recommendation or sufficient petition under clause 4 (2) (a), (b) or (c) with respect to the work, a statement of that fact;

(m) if the municipality has not received an approval, recommendation or sufficient petition under clause 4 (2) (a), (b) or (c) with respect to the work, a description of the right to petition council not to undertake the work as a local improvement, the last day for making the petition and the effect of the petition. O. Reg. 119/03, s. 3.

Local improvement not to proceed for two years if petition received

4. (1) If, within 30 days after the notice with respect to a work is given to the public under section 3, the municipality receives a sufficient petition, as determined under section 7, against undertaking the work as a local improvement, the municipality shall not undertake the work as a local improvement within two years after the petition is received by the municipality. O. Reg. 119/03, s. 4 (1).

(2) Despite subsection (1), a petition of the owners does not prevent the local municipality from undertaking the work as a local improvement if the municipality has received,

(a) the approval of the Ontario Municipal Board under section 5 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 7, in favour of undertaking the work as a local improvement. O. Reg. 119/03, s. 4 (2).

(3) A notice to an owner shall be deemed to be sufficiently served if it is served personally, is sent by mail to the owner’s place of business or residence as set out in the last returned assessment roll of the municipality, as most recently revised, or is left at or sent by mail to the owner’s actual place of business or residence, if it is known. O. Reg. 119/03, s. 4 (3).

Application to Ontario Municipal Board

5. (1) A 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. 119/03, s. 5 (1).

(2) Within 30 days after the municipality gives public notice under section 3 indicating that the municipality 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. 119/03, s. 5 (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 the objections. O. Reg. 119/03, s. 5 (3).

(4) If no objections are filed in accordance with this section, the municipality shall be deemed to have received the approval of the Board. O. Reg. 119/03, s. 5 (4).

(5) If an objection is filed in accordance with this section and the municipality still intends to undertake the work as a local improvement with the approval of the Board, the municipality shall forward the objection to the Board together with the application or as soon thereafter as is reasonable. O. Reg. 119/03, s. 5 (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. 119/03, s. 5 (6).

(7) Once a municipality has given public notice under section 3 indicating that the municipality intends to apply to the Board for approval under this section,

(a) the municipality shall not undertake the work as a local improvement until the approval of the Board has been received or is deemed to have been received or the municipality has given a new notice with respect to the work under section 3 which does not indicate it 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 shall be deemed not to be a contravention of this Regulation if the by-law provides that the by-law shall not take effect until the municipality receives the approval of the Board. O. Reg. 119/03, s. 5 (7).

Petitions

Petitions

6. (1) A petition in favour of undertaking a work as a local improvement must be signed by at least two-thirds of the owners representing at least one-half of the value of the lots liable to be specifically charged for the work. O. Reg. 119/03, s. 6 (1).

(2) A petition against undertaking a work as a local improvement must 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. O. Reg. 119/03, s. 6 (2).

(3) A petition in favour of or against undertaking a work as a local improvement 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 such other description as will enable the clerk of the municipality to identify it. O. Reg. 119/03, s. 6 (3).

Sufficiency of petitions

7. (1) A petition for or against undertaking a work as a local improvement shall be filed with the clerk of the municipality and shall be deemed to be received by the municipality when it is so filed. O. Reg. 119/03, s. 7 (1).

(2) The sufficiency of a petition for or against undertaking a work as a local improvement shall be determined and certified by the clerk of the municipality, and the clerk’s certified determination is final and binding. O. Reg. 119/03, s. 7 (2).

(3) Where the sufficiency of a petition has been determined by the clerk of the municipality, it shall be deemed to be a sufficient petition, even if the court of revision may change the lots to be specially charged, thereby increasing or reducing the number of the lots. O. Reg. 119/03, s. 7 (3).

(4) Where it is necessary to determine the value of any lot and the value cannot be ascertained from the last returned assessment roll, as most recently revised, for any reason, the clerk of the municipality shall determine the value of the lot for the purposes of this Regulation and the value determined by the clerk is final and binding. O. Reg. 119/03, s. 7 (4).

(5) Where two or more persons are jointly assessed for a lot, in determining the sufficiency of a petition,

(a) they shall be treated as one owner only; and

(b) the majority of them must sign the petition for the petition to be determined sufficient. O. Reg. 119/03, s. 7 (5).

Withdrawal of petition

8. (1) A person cannot withdraw his or her name from a petition after the clerk has certified its sufficiency. O. Reg. 119/03, s. 8 (1).

(2) If a person wishes to withdraw his or her name before the petition is certified, the person must file a written withdrawal with the clerk. O. Reg. 119/03, s. 8 (2).

How Costs are Borne

Cost of local improvement

9. (1) Except as otherwise provided in this Regulation, for the purposes of raising the cost of undertaking a work as a local improvement, a municipality shall,

(a) determine the municipality’s share of the cost, if any; and

(b) specially charge the owners’ share of the cost in accordance with this Regulation,

(i) upon the lots abutting directly on the work according to the extent of their respective frontages by imposing an equal special charge per metre frontage,

(ii) upon lots not abutting on the work but immediately benefiting by it to the extent of their respective frontages by imposing an equal special charge per metre frontage, or

(iii) upon a combination of lots described in subclauses (i) and (ii). O. Reg. 119/03, s. 9 (1).

(2) The following may be included in the cost of a work:

1. Engineering expenses.

2. Cost of advertising and service of 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 such compensation.

5. Estimated cost of incurring long-term debt and any discount allowed to the purchasers of the debt. O. Reg. 119/03, s. 9 (2).

(3) If lots described in subclause (1) (b) (ii) 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. 119/03, s. 9 (3).

(4) The municipality shall assign the cost of the work that is specially charged among the areas created under subsection (3) 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 according to the extent of their frontage by an equal special charge per metre frontage. O. Reg. 119/03, s. 9 (4).

(5) The municipality may provide that the cost of a work to be specially charged upon lots is not required to be paid with respect to one or more of the lots that are exempt from taxation. O. Reg. 119/03, s. 9 (5).

(6) If any Act, regulation or by-law provides that special charges under this Regulation are not required to be paid with respect to certain lots, then, despite the exemption, the lots shall for all purposes be subject to this Regulation and shall be specially charged but the special charges which become payable while such land remains exempt are not collectable from the owner but shall be paid by the municipality. O. Reg. 119/03, s. 9 (6).

(7) Despite subsection (6) and sections 6 and 7, the owner of a lot to which subsection (6) applies may not petition in favour of or against undertaking a work as a local improvement and the owner of the lot and the value of the lot shall not be considered in determining the sufficiency of a petition. O. Reg. 119/03, s. 9 (7).

Cost of water service pipe, private service connection, drive approach

10. (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. 119/03, s. 10 (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. 119/03, s. 10 (2).

Deduction of grants, etc. from cost of work

11. (1) Where a municipality will receive a grant or other contribution in cash to be applied towards the cost of any work, the amount of the grant or other contribution shall be deducted from the entire cost of the work. O. Reg. 119/03, s. 11 (1).

(2) Despite subsection (1), where a grant or other contribution is to be applied towards any excess cost of a work caused by reason of the work being constructed with a greater capacity than is required for the purposes of the lots that are specially charged, the amount of the grant or other contribution shall be applied to reduce the municipality’s share of the cost. O. Reg. 119/03, s. 11 (2).

Municipality’s share of the cost

12. A municipality’s share of the cost of a work shall include,

(a) the entire cost of all hydrants constructed in connection with a water main and the entire cost of all culverts, catch basins and other works that are provided for surface drainage and that are incidental to the construction of a sewer or pavement;

(b) so much of the cost of a work as is incurred at highway intersections;

(c) any excess cost of a work caused by reason of the work being constructed with a greater capacity than is required for the purposes of the lots that are specially charged. O. Reg. 119/03, s. 12.

Cost of sewage outlet where lots are not benefited or served

13. Where the work is the construction of a sewer and it is necessary to construct an outlet for the sewage, and the lots fronting or abutting on the outlet or through which the outlet is constructed are not benefited or served by it, the cost of the outlet shall be deemed to be a part of the cost of the sewer and shall not be specially charged on the lots fronting or abutting on the outlet or through which the outlet is constructed. O. Reg. 119/03, s. 13.

Cost of sewage outlet on non-abutting benefited lands

14. Where the work is the construction of a sewer that is an outlet for sewage from lands not abutting on the work or is the installation and construction of sewage pumping works, force mains, siphons or other pumping facilities necessary for a sewer or sewer system in carrying sewage away from lots not abutting on the work, the cost of the work that is specially charged shall be specially charged on the lots not abutting on the work but immediately benefited by it. O. Reg. 119/03, s. 14.

Reductions and increases in special charges

15. (1) Where a corner 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. 119/03, s. 15 (1).

(2) Where a lot other than a corner 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 the 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. 119/03, s. 15 (2).

(3) Where a lot is for any reason in whole or in part 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 as compared with the amount to be charged on lots fit for building purposes on a just and equitable basis. O. Reg. 119/03, s. 15 (3).

(4) Where a lot has a frontage in excess of 30 metres 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 the amount charged on that lot on a just and equitable basis as compared with the other specially charged lots. O. Reg. 119/03, s. 15 (4).

(5) A reduction or increase shall be made in the amount to be specially charged on a triangular or irregularly shaped lot sufficient, having regard to the situation, value and superficial area of the lot as compared with the other lots, to adjust the amount on a just and equitable basis. O. Reg. 119/03, s. 15 (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. 119/03, s. 15 (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, respectively, from the municipality’s share of the cost. O. Reg. 119/03, s. 15 (7).

Reduction in special charges for work on lane

16. (1) Where the work is the constructing or paving of a lane or constructing a sewer for drainage purposes in a lane and the municipality is of the opinion that any lot abutting on the work is not benefited by the work, or is not benefited by it to the same extent as the other abutting lots, the municipality may reduce the amount to be specially charged on the not-benefited or less-benefited lot by deducting from the total frontage of the lot a number of metres sufficient to make the proper reduction. O. Reg. 119/03, s. 16 (1).

(2) Where a reduction is made under subsection (1), the entire cost of the work shall be specially charged as if it were the cost with respect to the reduced frontage, but the whole of the lot shall be charged with the amount to be specially charged on the lot. O. Reg. 119/03, s. 16 (2).

Apportioning special charges where lot is subdivided

17. (1) Where a lot that is or is to be specially charged is subdivided into two or more new lots, the municipality may apportion the special charges that would have otherwise been charged on the original lot among the new lots according to the extent of their respective frontages by imposing an equal special charge per metre frontage. O. Reg. 119/03, s. 17 (1).

(2) Despite subsection (1), where the municipality is of the opinion that the new lots that are abutting on the work receive a greater benefit than the new non-abutting lots, the municipality may increase the amount to be specially charged on the new abutting lots and shall make a corresponding reduction in the amount to be specially charged on the new non-abutting lots. O. Reg. 119/03, s. 17 (2).

(3) Despite subsection (1), where a municipality is of the opinion that a new lot that does not abut on the work does not benefit from the work to the same extent as the other new non-abutting lots, the municipality may adjust the special charges to be imposed on the new non-abutting lots to reflect their different levels of benefit. O. Reg. 119/03, s. 17 (3).

(4) Section 20 applies with necessary modifications to the special charges imposed under subsection (1). O. Reg. 119/03, s. 17 (4).

(5) The local improvement roll shall be amended to reflect the changes made under this section. O. Reg. 119/03, s. 17 (5).

(6) For the purpose of subsection (1),

“special charges that would have otherwise been charged on the original lot” includes 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. 119/03, s. 17 (6).

Procedure for Imposing Special Charges

Court of revision

18. (1) A municipality may establish a court of revision consisting of three or five members appointed by the council of the municipality. O. Reg. 119/03, s. 18 (1).

(2) Every member of the court of revision shall be qualified to be elected as a member of the council of the municipality. O. Reg. 119/03, s. 18 (2).

(3) A majority of the members of the court of revision constitutes a quorum. O. Reg. 119/03, s. 18 (3).

Local improvement roll

19. 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 9 (6), would be exempt from being specially charged and the number of metres of its frontage;

(d) the annual special charge per metre frontage with which each lot is to be specially charged;

(e) the number of years the annual special charges described in clause (d) shall be paid; and

(f) the lifetime of the work. O. Reg. 119/03, s. 19.

Public notice

20. (1) Before a special charge is imposed, the municipality shall set a time and a place for the hearing by the court of revision of objections against the proposed local improvement roll and of the municipality’s proposed revisions to the proposed local improvement roll. O. Reg. 119/03, s. 20 (1).

(2) The municipality shall give notice to the public of the hearing by the court of revision and shall cause a notice of the hearing to be served on the owner of every lot to be specially charged. O. Reg. 119/03, s. 20 (2).

(3) A notice under subsection (2) shall include,

(a) the time and place of the hearing by the court of revision;

(b) the purpose of the hearing;

(d) the times when and places where a copy of the local improvement roll and of the statement of cost may be inspected under section 22. O. Reg. 119/03, s. 20 (3).

(4) A notice to an owner shall be deemed to be sufficiently served if it is served personally, is sent by mail to the owner’s place of business or residence as set out in the last returned assessment roll of the municipality, as most recently revised, or is left at or sent by mail to the owner’s actual place of business or residence, if it is known. O. Reg. 119/03, s. 20 (4).

(5) 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. 119/03, s. 20 (5).

(6) 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 of the municipality not later than seven days before the day set for the hearing. O. Reg. 119/03, s. 20 (6).

(7) Where no objection or proposed revision is received in accordance with this section, the treasurer of the municipality shall certify the local improvement roll, without a hearing by the court of revision. O. Reg. 119/03, s. 20 (7).

Statement of cost of the work

21. (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. 119/03, s. 21 (1).

(2) Where the final cost of the work is not yet known and, in the opinion of the engineer and treasurer, 75 per cent of the final cost of the work has been completed, the engineer and treasurer shall estimate the actual cost of the work for the purpose of subsection (1). O. Reg. 119/03, s. 21 (2).

(3) Where the final cost of the work exceeds the estimated actual cost of the work set out in the statement, the excess shall be borne by the municipality. O. Reg. 119/03, s. 21 (3).

(4) Where the actual cost of the work set out in the statement is an estimate, the engineer and the treasurer shall, when the final cost of the work is known, certify the final cost of the work and, if the final cost of the work is less than the actual cost of the work as shown in the statement or as corrected by the court of revision, the difference shall be applied as far as it will go to payment of the special charges imposed with respect to the work. O. Reg. 119/03, s. 21 (4).

Public access to local improvement roll and statement of cost

22. A copy of the local improvement roll prepared under section 19 and of the statement of cost prepared under section 21,

(a) shall be available for inspection at the office of the clerk of the municipality until the completion of the hearing held pursuant to section 20; and

(b) shall be provided by the municipality to the court of revision before the start of the hearing held pursuant to section 20. O. Reg. 119/03, s. 22.

Court of revision may correct local improvement roll

23. The court of revision at a hearing held pursuant to section 20 may review the proposed local improvement roll and correct it as to all or any 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 15 or 16 in respect of any lot.

5. The lots which, but for subsection 9 (5) would be exempt from being specially charged.

6. The lifetime of the work.

7. The charge per metre 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 not abutting on the work, those non-abutting lots that are to be specially charged and the amount of the special charge to be imposed on those lots. O. Reg. 119/03, s. 23.

Power of court of revision to add a lot to be specially charged

24. (1) Where it appears to the court of revision during a hearing held pursuant to section 20 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 20, a special charge for any lot should be changed, the court shall adjourn its hearing for not less than 14 days and shall cause notice to be served on the owner of the lot. O. Reg. 119/03, s. 24 (1).

(2) A notice under subsection (1) shall include,

(a) the time and place of the resumption of the hearing of the court of revision;

(b) the purpose of the hearing;

(d) the times when and places where a copy of the local improvement roll and of the statement of cost may be inspected under section 22. O. Reg. 119/03, s. 24 (2).

(4) If the court of revision determines that any such lot ought to be specially charged, the court shall determine the amount to be specially charged on the lot. O. Reg. 119/03, s. 24 (4).

(5) Despite subsection (1), the court of revision may, with the written consent of the owner of the lot, waive the need for an adjournment of its hearing or reduce the length of the adjournment to less than 14 days. O. Reg. 119/03, s. 24 (5).

Special charge imposed where circumstances change

25. (1) Where a reduction is made under section 15 or 16 with respect to a lot and circumstances change so that the reduction is no longer warranted, the municipality may impose the special charge on the lot that would have originally been imposed for the year in which the circumstances change and for the remaining years in which special charges are imposed. O. Reg. 119/03, s. 25 (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. 119/03, s. 25 (2).

(4) 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 of the personal service or mailing of the notice under subsection (3). O. Reg. 119/03, s. 25 (4).

(5) The court of revision shall hold a hearing to consider the objection and may make any decision the municipality could have made. O. Reg. 119/03, s. 25 (5).

Court of revision may reduce special charge in case of gross error

26. (1) The court 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. 119/03, s. 26 (1).

(2) The amount of the reduction shall be borne by the municipality, except where otherwise provided. O. Reg. 119/03, s. 26 (2).

Court of revision cannot change proportion of municipality’s and owners’ share of costs

27. The court 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 23, 24, 25 or 26. O. Reg. 119/03, s. 27.

Amendments to local improvement roll

28. (1) The treasurer of a municipality shall make corrections in the local improvement roll that are necessary to give effect to a decision of the court of revision, and the roll, when so corrected, shall be certified by the treasurer. O. Reg. 119/03, s. 28 (1).

(2) The local improvement roll, when certified by the treasurer under subsection (1) or 20 (7), and the special charges set out in the certified local improvement roll are final and binding, except where otherwise provided. O. Reg. 119/03, s. 28 (2).

(3) When the local improvement roll is certified by the treasurer under subsection (1) or 20 (7), the work in respect of which the roll has been prepared and certified shall be conclusively deemed to have been lawfully undertaken in accordance with this Regulation. O. Reg. 119/03, s. 28 (3).

Special charges by-law

29. (1) After the treasurer of the municipality has certified the local improvement roll under section 20 or 28, the municipality shall by by-law provide that the amount specially charged on each lot set out in the roll shall be sufficient to raise that lot’s share of the owners’ share of the cost by a number of equal annual payments and that 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. 119/03, s. 29 (1).

(2) The amount of each annual payment shall be entered in the local improvement roll. O. Reg. 119/03, s. 29 (2).

(3) The annual payments with respect to a work shall not extend beyond the lifetime of the work or 30 years, whichever is shorter. O. Reg. 119/03, s. 29 (3).

Annual payments commuted to one present value payment

30. Despite section 29, the municipality may allow all or the remaining annual payments to be commuted for a single payment equal to the present value of the annual payments and, for the purpose of calculating the present value, the municipality shall use the rate of interest it considers appropriate. O. Reg. 119/03, s. 30.

Agreement between municipalities re local improvement of shared highway

31. (1) Where a highway forms a boundary between two or more municipalities, whether it lies wholly within one municipality or partly within two or more municipalities, the municipalities may enter into an agreement to undertake in respect of the highway, or any part of it, any work that may be undertaken as a local improvement. O. Reg. 119/03, s. 31 (1).

(2) The agreement may specify,

(a) the municipality that will undertake the work;

(b) the manner in which the cost of the work is to be financed;

(d) the times at which amounts which are to be paid from one municipality to another municipality. O. Reg. 119/03, s. 31 (2).

(3) 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 the highway shall, for the purposes of undertaking the work, be deemed to lie wholly within and to be under the exclusive jurisdiction of the municipality that will undertake the work. O. Reg. 119/03, s. 31 (3).

(4) The clerk of the municipality that will undertake the work shall forthwith, after the passing of its by-law imposing the special charges upon lots, deliver or send by registered mail to the clerk of the municipality in which is situate any lot upon which the special charges have been imposed a copy of the by-law, certified under his or her hand and the seal of the municipality. O. Reg. 119/03, s. 31 (4).

(5) 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 tax had been imposed by that municipality and the proceeds of the special charges shall form part of the operating revenues of the municipality collecting the tax. O. Reg. 119/03, s. 31 (5).

(6) 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 which is to be specially charged upon lots in the municipality and thereafter such cost shall form part of the municipality’s share of the cost of the work. O. Reg. 119/03, s. 31 (6).

Special charges do not encumber land

32. The costs specially charged or chargeable on a lot for or in respect of any work, except so much of it as is in arrears and unpaid, shall not, as between a vendor and a purchaser, or in respect of a covenant against encumbrances, or for the right to convey, or for quiet possession free from encumbrances, be deemed an encumbrance on that land. O. Reg. 119/03, s. 32.

Debt

Restrictions on long-term debt for local improvement

33. (1) A municipality shall not incur long-term debt with respect to the cost of undertaking a work as a local improvement until,

(a) the work is completed; or

(b) the municipality has commenced construction of the work and has entered into an agreement for its completion that establishes the cost of completing the work. O. Reg. 119/03, s. 33 (1).

(2) For the purpose of subsection (1), where a municipality is undertaking the construction of two or more sewers as local improvements which will be connected as a sewer system, all the sewers shall be deemed to be a single work. O. Reg. 119/03, s. 33 (2).

Payment of long-term debt

34. Long-term debt incurred by a municipality with respect to the cost of undertaking a work as a local improvement shall be paid in full within the lifetime of the work. O. Reg. 119/03, s. 34.

Reserve fund for payment of long-term debt

35. (1) If a 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. 119/03, s. 35 (1).

(2) Subsection (1) does not apply to a present value payment under section 30 if the municipality reduced the amount of the long-term debt it incurred with respect to the work to reflect such payment. O. Reg. 119/03, s. 35 (2).

Prescribed limits not applicable

36. 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. 119/03, s. 36.

Levy imposed before debt incurred not illegal if by-law authorizing debt is passed

37. If a municipality has passed a by-law authorizing the municipality to incur long-term debt with respect to the cost of undertaking a work as a local improvement, any levy under section 311 or 312 of the Act to pay for the cost of the work shall not be found to be illegal because the long-term debt has not been incurred at the time the levy is imposed. O. Reg. 119/03, s. 37.

Borrowing or special charges by-law not invalid if local improvement roll is certified

38. (1) Where the local improvement roll with respect to a work is certified under section 20 or 28, 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. 119/03, s. 38 (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 such conditions as it 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. 119/03, s. 38 (2).

(3) A municipality, if requested by any person with whom or which 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. 119/03, s. 38 (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. 119/03, s. 38 (4).

39. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 119/03, s. 39.

O. Reg. 119/03: LOCAL IMPROVEMENT CHARGES - PRIORITY LIEN STATUS

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