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AR 76/2000 REGIONAL SERVICES COMMISSION DEBT LIMIT REGULATION

(Consolidated up to 75/2015)

ALBERTA REGULATION 76/2000

Municipal Government Act

REGIONAL SERVICES COMMISSION DEBT LIMIT REGULATION


Interpretation

1(1)  In this Regulation, “calculation time” means

                               (a)    when preparing the annual audited financial statements of the regional services commission, December 31 of the immediately preceding year, and

                              (b)    when making a borrowing, the date the regional services commission’s board of directors passes a bylaw or resolution to authorize the borrowing.

(2)  The definitions in section 602.01(1) of the Act apply to this Regulation.

AR 76/2000 s1;119/2005

Debt limit

2(1)  The debt limit at the calculation time of a regional services commission that is authorized to provide public utility services is

                               (a)    in respect of the regional services commission’s total debt, 2 times the revenue of the regional services commission, and

                              (b)    in respect of the regional services commission’s debt service, 0.35 times the revenue of the regional services commission in respect of the debt service.

(2)  The debt limit at the calculation time of a regional services commission that is authorized to provide services other than public utility services is,

                               (a)    in respect of the regional services commission’s total debt, 0.5 times the revenue of the regional services commission, and

                              (b)    in respect of the regional services commission’s debt service, 0.1 times the revenue of the regional services commission in respect of the debt service.

(3)  For the purposes of this section, the revenue of a regional services commission is the total of all revenue reported in the most recent audited financial statement of the commission, excluding transfers from the governments of Alberta and Canada for the purposes of a capital property reported in that statement if those transfers are included in the total revenue, and before expenses are deducted.

(4)  For the purposes of this section, the total debt of a regional services commission is the principal outstanding at the calculation time on borrowings made by the commission less the amount of principal that the commission is entitled to recover from another regional services commission or a municipality at the calculation time.

(5)  For the purposes of this section, the debt service of the regional services commission at the calculation time is the sum of,

                               (a)    for borrowings made by the commission in which the commission is required to pay principal during the 12 months after the calculation time, the total amount of principal and interest that the commission will be required to pay in respect of those borrowings during the 12 months after the calculation time, and

                              (b)    for borrowings made by the commission in which the commission is not required to pay any principal during the 12 months after the calculation time, the total of the pro rata amounts in respect of those borrowings determined for the 12 months after the calculation time,

less the amount that the commission is entitled to recover from another regional services commission or a municipality during the 12 months after the calculation time.

(6)  In subsection (5)(b), the pro rata amount for a borrowing at the calculation time is determined by the formula

                                       PRA = D x 12 
                    E 

                                       where

                                       “PRA” is the pro rata amount for the borrowing;

                                       “D” is the total amount of principal and interest that the regional services commission will be required to pay from the calculation time to the end of the amortization period of the borrowing;

                                       “E” is the number of months from the calculation time to the end of the amortization period of the borrowing.

(7)  For the purposes of determining D in the formula in subsection (6), if the actual rate of interest under a borrowing is not known at the calculation time for some or all of the payments under the borrowing, the rate of interest for those payments is determined by using the rate of interest in effect at the calculation time.

(8)  Notwithstanding anything in this Regulation, the Minister may, on application by a regional services commission and on the regional  services commission providing to the Minister a business plan that is acceptable to the Minister, prescribe a different debt limit for that regional services commission.

Annual financial statement disclosure

3(1)  Section 276 of the Act applies to each regional services commission as if it were a municipality and as if the reference to “council” in section 276(3) were a reference to “board”.

(2)  For the purposes of applying subsection (1), the reference in section 276(1)(b) of the Act to a ministerial regulation is to be treated as a reference to this Regulation.

AR 76/2000 s3;119/2005

4   Repealed AR 119/2005 s3.

Expiry

5   For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on June 30, 2020.

AR 76/2000 s5;119/2005;90/2010;75/2015