C-19 - Cities and Towns Act

Section 468.45.7 Disposition versions

2008-06-12

468.45.7. The management board may, with a view to having at its disposal the moneys it needs for the purposes within its jurisdiction, constitute a fund known as the “working fund” or increase the amount of the fund. To that effect, it shall pass a by-law

(1)  to appropriate for that purpose all or part of the accumulated surplus of its general fund;

(2)  to order a loan; or

(3)  to carry out both of the above operations.

The by-law ordering a loan to constitute the working fund or increase the amount of the fund must specify the term of the loan, which is not to exceed 10 years, and must stipulate that the repayment of the loan is to be charged to all the municipalities in whose territory the board has jurisdiction, according to the operating cost apportionment method set out in the agreement.

The amount of the fund may not exceed 20% of the appropriations provided for in the board’s budget for the current fiscal year. However, if the amount of the fund exceeds the prescribed percentage because the budget of a subsequent fiscal year provides for fewer appropriations than the budget used to determine the amount of the fund, the amount may remain unchanged.

Section 99 applies, with the necessary modifications, to the investment of the available moneys of the fund.

The interest on the working fund and the compensatory sum provided for in section 468.45.12 are appropriated as ordinary revenue for the fiscal year in which the interest is earned and the sum collected.

If the working fund is abolished, the moneys available in it must be used to repay a loan contracted to constitute the fund or increase the amount of the fund before they may be paid into the general fund.

2008, c. 18, s. 24.