THE REGIONAL MUNICIPALITY OF PEEL
 
BY-LAW NUMBER 49-2013
 

A by-law establishing financial principles to provide guidance towards the goal of ensuring the long term financial health of the Regional Municipality of Peel, and to repeal By-law 45-2004.

WHEREAS the Council of the Regional Corporation has, by resolution adopted on the 9th day of May, 2013, authorized a by-law establishing the financial principles to provide guidance towards the goal of ensuring the long term financial sustainability of the Regional Municipality of Peel;

NOW THEREFORE, the Council of the Regional Corporation enacts as follows:

  1. Definitions in this by-law:

    a) Financial Terminology

    i) "Assets" means capital assets that are used to produce or provide goods or services. They have a useful life extending beyond one accounting period (e.g. a year), are used on a continuing basis and are not for sale in the ordinary course of operations;

    ii) "Borrow" means the act of issuing debt or other financial instruments for the purpose of raising funds;

    iii) "Capital Plan" means the combined Capital Budget and Capital Forecast;

    iv) "financial health" means the overall financial condition of the Regional Municipality of Peel as indicated by its Financial Flexibility, Financial Sustainability and Financial Vulnerability;

    v) "Financial Flexibility" means the degree to which the Regional Municipality of Peel can change its debt or tax burden to meet its financial obligations;

    vi) "Financial Sustainability" means the degree to which planned service and infrastructure levels can be met without resorting to unplanned increases in rates or disruptive cuts to services;

    vii) "Financial Vulnerability" means the degree to which the Regional Municipality of Peel is dependent on sources of funding outside its control or influence or is exposed to risks that could impair its ability to meet existing financial obligations and commitments;

    viii) "Reserve" means the unrestricted accumulation of appropriations from net revenues. Reserves include Working Fund Reserve, Utility Rate Stabilization Reserve, Capital Financing, Capital Construction and Infrastructure Replacement;

    ix) "Reserve Fund" means the accumulation of appropriations from net revenues for purposes which are restricted by law or by the direction of Council contained in the by-law establishing the Reserve Fund;

    x) "Tax and Rate payer" means residents and businesses located in the Regional Municipality of Peel and who are required to pay property taxes and/or utility rate fees to the Regional Municipality of Peel;

    xi) "Users" means residents and businesses who use a service or services provided by the Regional Municipality of Peel;

    xii) "Utility Rate Stabilization Reserve" means a Reserve arising from the operation of programs funded from utility charge collections to minimize annual fluctuations in utility rates, and;

    xiii) "Working Fund Reserve" means a Reserve arising from the operation of programs funded from property taxation to minimize annual fluctuations in property tax rates.

    b) Organizational Structure

    i) "Area Municipality" means the City of Brampton, City of Mississauga and the Town of Caledon;

    ii) "Council" means the Council of the Regional Municipality of Peel;

    iii) "Chief Administrative Officer" means the employee designated as such by Council and any person who has been authorized to temporarily act as the Chief Administrative Officer during the incumbent's absence or a vacancy in the office;

    iv) "Chief Financial Officer" means the employee designated as such by Council and any person who has been authorized to temporarily act as the Chief Financial Officer during the incumbent's absence or a vacancy in the office;

  2. The Financial Principles for financial sustainability, to manage financial vulnerability and for financial flexibility set out in the first column of Schedule A to this by-law are adopted as principles to provide guidance towards the goal of ensuring the long term financial health of the Regional Municipality of Peel;

  3. The Meanings attributed to the principles set out in Schedule A are to be considered for purposes of interpretation but shall not be considered to be exhaustive or prescriptive;

  4. The Policy Alignments identified in Schedule A refer to the policy or legal instruments which are the primary means of advancing the corresponding principle;

  5. The Chief Financial Officer (CFO) shall undertake a review of this by-law not less frequently than once every seven years and report to Council the results of such review;

  6. The Chief Administrative Officer, upon the recommendation in writing of the CFO, is authorized to create, implement, amend and revoke policies for the financial administration of the Regional Municipality of Peel which are consistent with the financial principles adopted in this by-law;

  7. By-law 45-04 is hereby repealed;

  8. Where policies for the financial administration of the Regional Municipality of Peel provide for a requirement of Council approval or a Council report being made, the approval may be given or the report may be made to the Interim Period Approvals Committee established under By-law 56-2008 or any successor by-law during any “Interim Period” as defined in that by-law;

  9. This by-law may be referred to as the Region of Peel Financial Management By-law, 2013.




READ THREE TIMES AND PASSED IN OPEN COUNCIL this 9th day of May, 2013.

K. Lockyer
________________________

Regional Clerk

E. Kolb
______________________

Regional Chair


Schedule "A" to By-law 49-2013 (pdf)