The Municipal Grants General Regulations (N.S. Reg. 72/2024) were enacted under the Municipal Grants Act of Nova Scotia to establish a framework for calculating and distributing municipal grants. These regulations aim to improve the financial stability among municipalities by defining the parameters for municipal financial capacity grants, which are vital for effective local governance and service delivery.

The Municipal Grants General Regulations and include essential definitions for understanding key terms. For example, “derived standardized expenditure” refers to the calculated expenditure based on the number of dwelling units in a municipality, multiplied by a unitized expenditure rate, which is determined by dividing the previous year’s operating expenditures by the number of dwelling units. The Minister of Municipal Affairs and Housing plays a crucial role in overseeing these regulations, ensuring compliance, and providing necessary calculations to municipalities.

Municipalities are categorized into two classes for grant calculations: Class I, which includes regional municipalities and towns, and Class II, which comprises county and district municipalities. This classification is fundamental in determining grant entitlements based on the specific needs and characteristics of each municipality.

For grant calculations, municipalities must submit their annual filed assessment roll, detailing the number of dwelling units. Notably, dwelling units owned by the federal Department of National Defence and those located on Indian reserve lands are excluded from these calculations. The financial capacity grant for each municipality is derived from the unitized expenditure rate, based on previous year’s operating expenditure estimates, which must be submitted to the Minister by September 30 each year. The formula for derived standardized expenditure involves multiplying the unitized expenditure rate by the number of dwelling units for the current year.

The regulations also detail the calculation of uniform assessments, which specify that taxable assessments are adjusted for commercial properties occupied by seasonal businesses and other exempt properties. This uniform assessment is critical in ensuring equitable funding across municipalities. Each class of municipality has a standard residential and commercial rate calculated based on derived standardized expenditures and assessments, helping determine the municipal financial capacity grant entitlement. This entitlement is computed through a formula that accounts for derived expenditures along with the residential and commercial uniform assessments of the municipality.

A significant aspect of the regulations is the freeze on grant amounts from the fiscal year 2024-25 through 2028-29. During this period, municipalities will receive grant amounts based on a fixed allocation from the 2022-23 fiscal year. Additionally, a transitional support program will be available for municipalities that received less funding than in the 2014-15 fiscal year, ensuring they are not financially disadvantaged during the transition.

Nova Scotia (72/2024) April 5, 2024