Education Act
ONTARIO REGULATION 472/98
DEBT AND FINANCIAL OBLIGATION LIMITS
Note: This Regulation was revoked on February 26, 2010. See: O. Reg. 45/10, ss. 1, 2.
Last amendment: O. Reg. 45/10.
This is the English version of a bilingual regulation.
1. The debt and financial obligations and liability limits for a district school board for its fiscal year shall be determined under this Regulation using the formula described in section 3. O. Reg. 472/98, s. 1.
2. The limits, as updated under section 4, shall be used by a district school board to determine whether the approval of the Minister is required in respect of the following debts or financial obligations:
1. Long-term debt assumed by the board for which repayment will be required beyond the term for which the members of the board were elected.
2. Other financial commitments, liabilities and contractual obligations for which payment will be required beyond the term for which the members of the board were elected, including lease agreements. O. Reg. 472/98, s. 2.
3. The debt and financial obligation and liability limits shall be determined as follows:
1. Estimate the revenue fund expenditures of the board for its fiscal year.
2. Multiply the amount obtained in paragraph 1 by 10 per cent.
3. Subtract from the amount obtained in paragraph 2 all of the payments for its fiscal year in respect of the long-term debt and the other financial commitments, liabilities and contractual obligations of the board described in paragraphs 1 and 2 of section 2 other than the payments of principal and interest for that fiscal year on debentures and long-term debts of which the Minister has agreed to pay the board the amount of the yearly principal and interest payments. O. Reg. 472/98, s. 3.
4. (1) Before authorizing any specific work or class of work that would require the incurring of a long-term debt or financial obligation described in section 2, the district school board shall have its treasurer calculate updated limits using the most recent debt and financial obligation and liability limits as determined under section 3.
(2) The treasurer shall update the most recent debt and financial obligation and liability limits determined under section 3 as follows:
1. From the amount obtained in section 3, subtract the estimated annual amount payable in respect of any project approved by the board to be financed by long-term debt or financial obligation described in section 2 but not as yet assumed, unless the board has by resolution indicated that it will not proceed with that project.
(3) The treasurer shall calculate the estimated amount for the fiscal year payable by the board in respect of the work.
(4) If the amount calculated under subsection (3) exceeds the amount updated under subsection (2), the board must obtain the approval of the Minister before authorizing the work. O. Reg. 472/98, s. 4.
5. Omitted (revokes other Regulations). O. Reg. 472/98, s. 5.
6. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 472/98, s. 6.
