While authority for local governments to enter into partnership agreements is broad, there are procedural limitations that are imposed by the Municipal Act for individual matters that may be incorporated in the agreement. Procedural limitations apply where a partnership agreement:
• grants assistance to an industrial, commercial or business undertaking (e.g., tax exemption)
• involves the disposition of property owned by the local government
• requires a local government to incur a liability for a period that exceeds five years
Figure 9.1 provides an overview of the procedural limitations that apply to the granting of assistance, disposition of property and incurring a liability.
| Components of Partnering Agreements | Required Advertising |
| Elector Assent/Counter Petition Opportunity |
| Granting assistance | Notice of proposed assistance must be published in a newspaper (section 185) Counter petition notice (if required) | Granting of assistance to industrial, commercial, or business undertaking is prohibited unless assistance is under partnering agreement. Prohibition against waiving of development cost charges. Tax exemptions limited to those authorized under Part 10 or Part 24 of the Municipal Act. Tax exemptions can only be provided for that portion of land or improvements used for a public purpose if owned or held by a party to a partnering agreement. Exemption from school and other provincial property taxes requires an exemption from the Lieutenant Governor in Council. | Local government must provide a counter petition opportunity for tax exemptions which exceed a period of five years. This can be carried out through counter petition for the agreement as a whole (section 178) |
| Disposition of local government property | Notice of intended disposal Counter petition notice (if required) | In disposal of water, sewer, and other utility systems, local government may be required to repay all or some of a provincial grant, unless the grant was given 20 years before disposition and there are no further grants to be paid for the property OR property will be used for the public purpose for which it was acquired or constructed for at least 20 years. | Disposal of water, sewer or utility systems require local government to provide a counter petition opportunity except: • where the property is surplus to needs, or • disposition is to another local government in the same regional district If the disposal of property relates to an operating water or sewer system, local government must enter into an agreement which continues the water or sewer services, and requires the assent of electors. |
| Incurring long-term liabilities | Counter petition notice (if required) | Debenture debt cannot be incurred under an agreement and must be incurred under a loan authorization bylaw. Loan authorization bylaw authority has been broadened to include borrowing for the purpose of lending to or guaranteeing the borrowing of any person or public authority to which the local government is authorized to provide assistance. | Counter petition opportunity required for any incurred liability that exceeds five years. Counter petition opportunity required for loan authorization bylaw (replaces elector assent requirement). |