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The Municipal Amendment Act (2)

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S.M. 1993, c. 49

The Municipal Amendment Act (2)

(Assented to July 27, 1993)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. M225 amended

1           The Municipal Act is amended by this Act.

2           The definition "director" in section 1 is repealed and the following is substituted in alphabetical order:

"executive director" means the Executive Director of Local Government Support Services appointed under subsection 602(1); (« directeur exécutif »)

3           Section 109 is repealed and the following is substituted:

Indemnities of members

109         Subject to sections 110 and 111, if the by-law of the council of a municipality so provides, the municipality may pay to the mayor or reeve and to each councillor of the municipality, in lieu of all other indemnities, such monthly or annual indemnity as the council determines.

4           Section 110 is amended in the part preceding clause (a) by striking out "subsection 109(2)" and substituting "section 109".

5           Subsection 111(5) is amended by striking out "subsection 110(2)" and substituting "section 110".

6           Clause 273(1)(b) is amended by striking out "subject to approval by The Public Utilities Board,".

7           The following is added after subsection 317(2);

Power to acquire land for assembly

317(3)      The council of a municipality may pass by-laws for acquiring land within the municipality by purchase, lease, exchange, donation or expropriation, for the purpose of assisting in the assembly of land for residential, park and recreational, commercial or industrial development or redevelopment and for rights-of-way of future streets together with lands abutting them, and for those purposes, the municipality may hold, lease, sell, exchange or otherwise dispose of the land on such terms and conditions as the council may consider advisable and may lease air rights above the land.

8           Section 369 is amended

(a) in clause (a), by striking out "drunkenness,"; and

(b) in clause (b), by striking out "drunk or".

9(1)        Subsection 490(1) is amended

(a) by striking out "or" at the end of subclauses (c)(i) and (c)(iii) and clause (d);

(b) by adding "or" at the end of clause (f); and

(c) by adding the following after clause (f):

(g) invest it in one or more units of a pool of funds assembled and designated for the purpose by any bank, whether or not the investment is guaranteed by the bank or under the Canada Deposit Insurance Corporation Act (Canada), where the funds in the pool are in turn invested by the bank in treasury bills of or guaranteed by the Government of Canada or the Government of Manitoba.

9(2)        Subsection 490(2) is amended by striking out "or" at the end of clause (c), by adding "or" at the end of clause (d) and by adding the following after clause (d):

(e) in one or more units of a pool of funds assembled and designated for the purpose by any bank, whether or not the investment is guaranteed by the bank or under the Canada Deposit Insurance Corporation Act (Canada), where the funds in the pool are in turn invested by the bank in treasury bills of or guaranteed by the Government of Canada or the government of Manitoba.

10           Section 600 is repealed and the following is substituted:

"Auditor" defined

600         In this Part, "auditor" means a person appointed under this Part to audit the books and accounts of a municipality.

11          Sections 602 to 606 and the Division and Subdivision headings preceding it are repealed and the following is substituted:

DIVISION I

APPOINTMENT, DUTIES AND POWERS OF EXECUTIVE DIRECTOR AND AUDITOR

Subdivision I

EXECUTIVE DIRECTOR

Appointment

602(1)      A person who, in the opinion of the minister, is qualified and suitable to be the executive director of the branch of the Department of Rural Development designated and recognized by the minister as the Local Government Support Services Branch (and who shall be known as the "Executive Director of Local Government Support Services"), together with such assistants and clerks as are necessary to carry out this Part, may be appointed as provided in The Civil Service Act.

Accounting system

602(2)      The executive director shall prescribe

(a) the manner in which the statements and schedules accompanying the report required under section 605 shall be prepared; and

(b) the system of accounting to be adopted and maintained by all treasurers or by the treasurers of any class of municipality.

Furnishing information to executive director

602(3)      The auditor and the treasurer of each municipality shall furnish to the executive director such information, returns, statements and reports as the executive director may require.

Meetings of auditors

602(4)      The executive director shall cause meetings of auditors to be held to consider accounting and auditing procedures.

Further reports

602(5)      The auditor of each municipality shall make for the executive director such further examinations and reports as the executive director may require.

Treasurer and auditor to comply

602(6)      The treasurer and the auditor of each municipality shall comply with all matters and things prescribed by, and all the requirements of, the executive director under this section.

Subdivision II

AUDITORS

Appointment of auditor

603(1)      The council of each municipality shall, no later than four months before the end of each fiscal year, appoint an auditor to carry out, with respect to that municipality and for that fiscal year, the duties of an auditor imposed under this Act.

Report to executive director

603(2)      The clerk of each municipality shall, within 40 days after the appointment of an auditor for the municipality under subsection (1), inform the executive director of the name of the auditor appointed.

Appointment by executive director

603(3)      Where the council of a municipality fails to appoint an auditor under subsection (1), the executive director shall do so without delay.

Remuneration of auditor

603(4)      The remuneration of the auditor appointed for a municipality under subsection (1) or (3), together with the expenses incurred by the auditor in auditing the accounts of the municipality, shall be paid by the municipality.

Qualifications of auditors

603(5)      A person who is entitled to practise as an accountant under The Chartered Accountants Act, The Certified General Accountants Act or The Society of Management Accountants of Manitoba Incorporation Act, is qualified to be appointed under this section as the auditor of a municipality.

Annual examination

604(1)      Subject to subsection (2), the auditor of each municipality shall annually make an examination of the financial affairs, books, accounts, records and transactions of, or related to the affairs of,

(a) the municipality;

(b) any board or committee established or appointed by the council of the municipality that administers funds of the municipality or funds that are held in trust by any officer or employee of the municipality;

(c) any unincorporated village district situated within the boundaries of the municipality; and

(d) any organization or body

(i) to which the municipality has made a grant of money, and

(ii) on which the municipality is represented by one or more persons appointed by the council for that purpose.

Audit of certain organizations

604(2)      Where an auditor, other than the auditor of the municipality but possessing the qualifications set out in subsection 603(5), has audited the financial affairs, books, accounts, records and transactions for any fiscal year of any board, committee, unincorporated village district, organization or body to which clause (1)(b), (c), or (d) applies, the auditor of the municipality need not make the examination required under subsection (1) if a copy of the audit report is sent to the executive director.

Report of auditor

605         Within such period following the end of a fiscal year as may be agreed upon between the council and the auditor of each municipality, but no later than six months following the end of the fiscal year, the auditor shall make a report to the council, and the report shall identify the financial statements that have been audited, outline the scope of the audit and express an opinion on whether the financial statements present fairly the financial position of the municipality as at the end of the fiscal year and the results of its operations for that fiscal year.

Supplementary report of auditor

606         In addition to the report required under section 605, the auditor of each municipality shall submit to the council of the municipality a supplementary report containing

(a) a statement of opinion as to whether the accounting procedures and systems of control employed by the municipality are adequate to preserve and protect its assets;

(b) a statement as to whether the funds of the municipality have, to the best of the auditor's knowledge and belief, been paid and disbursed only under authority granted by an Act of the Legislature or under  authority of a resolution or by-law of the municipality made under the authority of an Act of the Legislature;

(c) a statement as to whether any irregularity or discrepancy in the administration of the affairs of the municipality by the council came to the auditor's attention during the course of the audit;

(d) a statement as to whether in the auditor's opinion there are any other matters that should be brought to the attention of the council or the minister; and

(e) any recommendations the auditor considers necessary regarding the proper performance of duties and the keeping of records by the treasurer or other officers and employees of the municipality.

12(1)       Subsection 607(3) is amended by striking out "director" and substituting "executive director".

12(2)       Subsection 607(4) is repealed and the following is substituted:

Report to boards, etc.

607(4)      In addition to the other reports of the auditor required under this subdivision, the auditor shall report to the chairperson or other head of any board, committee, unincorporated village district, organization or body mentioned in subsection 604(1) respecting the auditor's examination of its financial affairs, books, accounts, records and transactions, and the fee of the auditor and his or her expenses for the examination shall be paid by the board, committee, unincorporated village district, organization or body, as the case may be.

13          Section 608 is repealed and the following is substituted:

Reports open to inspection

608(1)      The treasurer of each municipality shall keep on file in the office of the municipality all reports of the auditor together with related financial statements, and any person may inspect the reports and financial statements at any time when the office is open for the transaction of business.

Publication of annual report

608(2)      Immediately upon receipt of the annual report of the auditor, the head of the council of each municipality shall cause to be published

(a) copies of the report together with copies of the related financial statements;

(b) copies of the report together with a notice that the related financial statements are on file in the office of the municipality and are available for inspection at any time when the office is open for the transaction of business; or

(c) a notice that the report, together with the related financial statements, has been deposited in the office of the treasurer of the municipality and is available for inspection at any time when the office is open for the transaction of business.

14          Section 609 is repealed.

15          The following is added after section 712:

DIVISION VII

IMMUNITY FROM NUISANCE

Action for nuisance

712.1       No person may bring an action or proceeding for damages, or for an injunction, on account of nuisance arising from the operation and maintenance of a system for the collection, conveyance, treatment and disposal of sewage or storm water, or both sewage and storm water, against a municipality or an employee or agent of a municipality, by reason of anything that is authorized or required under this Act to be done by the municipality and that is done by the municipality without negligence.

16          Subsection 723(1) is amended by striking out "and in sections 724 to 727".

17          The English version of section 798 is amended in clause (d) of the definition "institutional lands" by striking out "university" and substituting "university,".

Coming into force

18          This Act comes into force on the day it receives royal assent.