Mandate:
The division is responsible for providing financial
assistance to municipalities in the form of grants and subsidies
as well as providing assistance with all facets of capital
borrowing. The division also, in conjunction with the regional
offices, advises on budgeting an other financial management
matters. The division prepares, evaluates and monitors estimates
with respect to debt servicing subsidies municipal operating
grants, and special assistance grants. Additionally, the
division is responsible for monitoring and reporting on the
provincial and municipal liability for municipal long-term debt.
Programs & Services:
Municipal Operating Grants
This grant consists of the following four components:
|
Equalization: |
Helps depressed areas re: property values |
| Local Revenue Incentive:
|
Encourages generation of local revenue. |
| Households: |
Grants provided for each household. |
| Roads |
Grants provided for each kilometer of
road for which the municipality is responsible. |
Debt Servicing Grants and Subsidies:
Provides grants and subsidies to assist the municipalities in the repayment of capital debt issued to various financial agencies for the development of municipal infrastructure, recreation facilities and other municipal improvements.
Finance Committee (Special Assistance):
Deals with a wide range of requests and issues for the most part concerning the general operations of a municipality
beyond the municipal budgetary process as well as fire fighting needs it also considers requests for ministerial approvals for
short-term borrowing as well as long-term borrowing for
municipal shares of infrastructure loans.
Refinancing of Guaranteed Municipal Bank Loans:
Ongoing process that involves ensuring that precise amounts of money are paid to the appropriate banks for the appropriate municipalities and for the relevant
capital projects. These procedures must be carried out by specific deadlines which have been established for the payout date.
Restructuring of Municipal Debt:
As a result of a change in Government Policy in 1996 Municipalities were given authority to refinance their Newfoundland Municipal Financing Corporation municipal debt through private financial institutions to vail of beter interest reates. This process entails the analysis of the present portfolio of a municipality taking info account their total debt, the subsidy provided by the province and determining what portion of the balance of the principal debt is the municipalities. Approvals to borrow are issued to the Council which will include any arrears and penalities charged by the NMFC. The Province then assumes 100% responsibility for the principal remaining.
Contact
Information:
Doris Penney, Director
Department of Municipal Affairs
Main Floor (West Block)
Confederation Building
P.O. Box 8700
St. John's, NL
A1B 4J6
Telephone: (709) 729-3057
Facsimile: (709) 729-0477
E-mail:
depenney@mail.gov.nl.ca
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