A local government must notify the Inspector of Municipalities before it disposes of land, improvements or works that were funded by provincial grants (and the Inspector may require repayment of these grants) unless:
• the first payment of the grant was provided at least 20 years before the proposed disposition and the local government no longer receives grants with respect to that item; OR
• the item proposed to be disposed of will be used for the public purpose for which it was acquired or constructed for at least 20 years after the date of the first payment of the grant
These provisions apply to grants made before the new legislation was enacted, but repayment is not always required. Where it is required, repayment is subject to the terms and conditions imposed by the Inspector and regulations made by Cabinet.
Any local government proposing to dispose of assets acquired with provincial grants should communicate with the office of the Inspector of Municipalities to discuss whether there may be a repayment requirement. They should also ascertain from the Inspector whether there are any Cabinet regulations that might apply to the process.