Fiscal year and accounting for services

373   (1) The fiscal year for a regional district is the calendar year.

(2) The regional district financial officer must keep separate financial records for each service that include full particulars of assets and liabilities, revenues and expenditures, information concerning reserve funds and other pertinent financial details.

Annual financial plan

374   (1) A regional district must have a financial plan that is adopted annually, by bylaw, by March 31.

(2) For certainty, the financial plan may be amended by bylaw at any time.

(3) The planning period for a financial plan is 5 years, that period being the year in which the plan is specified to come into force and the following 4 years.

(4) The financial plan must set out the following for each year of the planning period, shown separately for each service:

(a) the proposed expenditures for the service;

(b) the proposed funding sources for the service;

(c) the proposed transfers between funds in respect of the service.

(5) For any year, the total of the proposed expenditures and transfers to other funds in respect of a service must not exceed the total of the proposed funding sources and transfers from other funds for the service.

(6) The proposed expenditures for a service must set out separate amounts for each of the following as applicable:

(a) the amount required to pay interest and principal on regional district debt;

(b) the amount required for capital purposes;

(c) the amount required for a deficiency referred to in subsection (11);

(d) the amount required for other purposes.

(7) The proposed funding sources for a service must set out separate amounts for each of the following as applicable:

(a) revenue from property value taxes;

(b) revenue from parcel taxes;

(c) revenue from fees and charges;

(d) revenue from other sources;

(e) proceeds from borrowing, other than borrowing under section 404 [revenue anticipation borrowing].

(8) The proposed transfers between funds in respect of a service must set out separate amounts for

(a) reserve funds, and

(b) accumulated surplus.

(9) As a limit on expenditures, the amounts that may be included in a financial plan as expenditures respecting assistance to be apportioned under section 380 (2) (g) [assistance other than under a partnering agreement] must not, in total, exceed the amount that would be obtained by a tax of 10¢ per $1 000 on the net taxable value of land and improvements in the regional district.

(10) As a limit on revenues,

(a) if section 339 (1) (e) [requisition limits in establishing bylaw] applies in relation to a service, the total of the amounts included under subsection (7) (a) and (b) of this section for the service must not exceed the maximum amount set under section 339 (1) (e), and

(b) the total of the amounts requisitioned in respect of the service under the following must not exceed the amounts included under subsection (7) (a) and (b):

(i) section 257 [tax base, requisition and collection of funds for treaty lands];

(ii) section 385 [municipal requisitions];

(iii) section 387 [electoral area requisitions].

(11) If actual expenditures and transfers to other funds in respect of a service for a year exceed actual revenues and transfers from other funds in respect of the service for the year, the resulting deficiency must be included in the next year's financial plan as an expenditure for the service in that year.

Public process for development of financial plan

375   (1) A board must undertake a process of public consultation regarding the proposed financial plan before it is adopted.

(2) The designated regional district officer must send a copy of the financial plan to each municipality in the regional district and to the inspector.

Annual reporting on regional district finances

376   (1) On or before June 30 in each year, a regional district must hold a board meeting or other public meeting for the purpose of presenting

(a) the audited financial statements of the preceding year, and

(b) the report under section 168 [reporting of council remuneration, expenses and contracts] of the Community Charter as it applies under section 377 [application of Community Charter provisions] of this Act.

(2) Notice of the meeting must be published in accordance with section 94 [requirements for public notice] of the Community Charter and must include the following:

(a) the date, time and, if applicable, place of the meeting;

(b) if the annual meeting is to be conducted by means of electronic or other communication facilities, the way in which the meeting is to be conducted by those means;

(c) a statement that the financial statements and any reports to be presented at the meeting are available for inspection at the regional district offices.

(3) A copy of the financial statements and reports must be available for public inspection at the regional district offices during their regular office hours from the time the notice under subsection (2) is given until June 30 in the following year.

Financial management: application of Community Charter

377   (1) The following provisions of the Community Charter apply to regional districts:

(a) section 167 [annual financial statements];

(b) section 168 [reporting of council remuneration, expenses and contracts];

(c) section 183 [investment of municipal funds];

(d) Division 2 [Audit] of Part 6 [Financial Management];

(e) Division 4 [Reserve Funds] of Part 6;

(f) Division 5 [Restrictions on Use of Municipal Funds] of Part 6.

(2) In relation to the application of Division 4 of Part 6 of the Community Charter,

(a) the provisions apply as though each service were the only service provided by the regional district,

(b) all accounting and other matters relating to a reserve fund must be kept separate for each service, and

(c) a board may adopt a bylaw under section 189 (3) [reserve fund used in relation to expropriation or damage to property] of the Community Charter in relation to compensation in respect of property expropriated or injured or to carry out works referred to in section 291 [entry on land to mitigate damage] of this Act, but only with the approval of the inspector.

(3) Despite subsection (2) (a) and (b), section 189 (4.1) and (4.2) [use of money in a reserve fund for the purposes of another reserve fund] of the Community Charter applies to reserve funds established by a board for capital purposes for the same service or for different services.

Options for cost recovery

378   (1) A regional district may recover the costs of its services by one or more of the following:

(a) property value taxes imposed in accordance with Division 3 [Requisition and Tax Collection];

(b) subject to subsection (2), parcel taxes imposed in accordance with Division 3;

(c) fees and charges imposed under section 397 [imposition of fees and charges];

(d) revenues raised by other means authorized under this or another Act;

(e) revenues received by way of agreement, enterprise, gift, grant or otherwise.

(2) Parcel taxes may not be used to recover all or part of the costs of a regulatory service.

(3) In the case of a service for which an establishing bylaw is required, if all or part of the costs are to be recovered by one or more of the methods referred to in subsection (1) (a) to (c), the establishing bylaw must indicate which methods are to be used.

Costs of services

379   (1) All costs incurred by a regional district in relation to a service, including costs of administration attributable to the service, are part of the costs of that service.

(2) Subject to subsection (3), the amount required by a board

(a) for a payment authorized under section 740 [indemnification against proceedings],

(b) to satisfy a judgment or other order of a court against the regional district, or

(c) to satisfy an award or other order of an arbitrator against the regional district

is deemed to be costs of the service out of which the action arose.

(3) If the legal action or other proceeding arose from the negligence of the board, the amount is deemed to be costs of the service referred to in section 338 (2) (a) [general administration].

(4) If a regional district undertakes a service after conducting a feasibility study in respect of the service, the costs of that study are deemed to be costs of that service.

(5) If a referendum under section 336 [referendums regarding services] is limited to all or part of the service area for an existing service, the costs of the referendum are deemed to be costs of the service.

(6) For the purposes of apportionment under this Division and requisition under Division 3 [Requisition and Tax Collection], the costs of providing a service are deemed to be the costs that are to be recovered by means of property value taxes or parcel taxes.

Apportionment of costs

380   (1) If the establishing bylaw sets the method for apportioning the costs of providing a service, those costs must be apportioned among the participating areas in accordance with the bylaw.

(2) If the method of apportionment is not set by establishing bylaw, the costs of providing a service must be apportioned on the basis of the converted value of land and improvements in the service area as follows:

(a) if there is an establishing bylaw but it does not set out the method of apportionment, among the participating areas for the service;

(b) if there is no establishing bylaw and the method of apportionment is not otherwise set under this or another Act, among all the municipalities and electoral areas participating in the service, with the service area deemed to be the entire regional district;

(c) in the case of electoral area administration,

(i) subject to subparagraph (ii), among all the electoral areas, with the service area deemed to be all the electoral areas, and

(ii) if the board provides that some or all of the costs are to be apportioned among the electoral areas that the board considers benefit from the administration, those costs must be apportioned among those electoral areas, with the service area deemed to be all those electoral areas;

(d) in the case of feasibility studies in relation to proposed services, if no service is established and the board provides that the costs are to be apportioned among the electoral areas, among all the electoral areas, with the service area deemed to be all those electoral areas;

(e) in the case of services related to an approving officer, if the board is authorized to appoint the approving officer under section 77.1 [appointment of regional district and islands trust approving officers] of the Land Title Act, among all the electoral areas, with the service area deemed to be all those electoral areas;

(f) in the case of a service that is in relation to a regional growth strategy for an area that is less than the entire regional district, among the areas for which the regional growth strategy is initiated or adopted, with the service area being all those areas;

(g) in the case of assistance under section 263 (1) (c) [assistance for community benefit], other than assistance under a partnering agreement referred to in section 274, at the option of the board,

(i) in accordance with paragraph (b) of this subsection, or

(ii) among the municipalities or electoral areas benefiting from the assistance, with the service area deemed to be all those areas;

(h) in the case of a referendum under section 336 [referendums regarding services] that is not limited to all or part of the service area for an existing service, among the municipalities and electoral areas in which the referendum is held, with the service area deemed to be all those areas;

(i) in the case of a local community commission under section 243 [local community commissions], entirely from the local community, with the service area deemed to be that local community;

(j) in the case of a business improvement area under section 215 [business improvements areas] of the Community Charter in relation to a mountain resort, entirely from that area, with the service area deemed to be the business improvement area;

(k) in the case of services under Part 14 [Planning and Land Use Management], in accordance with section 381 [cost sharing for Part 14 services].

Cost sharing for services under Part 14 [Planning and Land Use Management]

381   (1) The costs of services under Part 14 must be apportioned on the basis of the converted value of land and improvements in the service area as follows:

(a) if no municipality has entered into an agreement under subsection (2) or opted out under subsection (3), among all the municipalities and electoral areas, with the service area deemed to be the entire regional district;

(b) subject to paragraphs (c) and (d), if one or more municipalities have opted out under subsection (3) and are no longer participating in the services, among the electoral areas and any municipalities that have not opted out, with the service area deemed to be those areas;

(c) if one or more municipalities have entered into an agreement under subsection (2) to share only some of the costs, those costs are to be recovered in accordance with the agreements and the remaining costs are to be apportioned among the other municipalities and electoral areas participating in the services;

(d) if a municipality is liable for costs under subsection (6) or (7), those costs are to be recovered from the municipality and the remaining costs are to be apportioned among the other participating municipalities and electoral areas.

(2) The board and a municipality may enter into an agreement that the municipality is to share in some but not all of the costs of services under Part 14, to the extent set out in the agreement and in accordance with the terms and conditions for the municipality's participation established by the agreement.

(3) Subject to subsection (4), a municipality may opt out of participation in services under Part 14 by giving notice to the board, before August 31 in any year, that until further notice it will no longer share the costs of services under Part 14.

(4) A municipality that is a party to an agreement under subsection (2) may give notice under subsection (3) only in the last year of the term of the agreement.

(5) After notice is given under subsection (3), the municipality ceases to participate in the services, effective at the start of the following year.

(6) As an exception to subsection (5), if a municipality that is not a party to an agreement under subsection (2) gives notice under subsection (3) after a board has passed a resolution authorizing the preparation of an official community plan or bylaw under Part 14, the municipality continues to participate in the services and must share the costs in that preparation until the earlier of the following:

(a) the date the plan or bylaw is adopted;

(b) 2 years after the date the resolution is passed.

(7) Subsection (6) also applies to a municipality that is a party to an agreement under subsection (2) if the official community plan or bylaw is in relation to the Part 14 services for which the municipality shares costs under the agreement.

Property under creditor protection may be excluded from apportionment

382   (1) In this section:

"determined value" means the value of an eligible property determined by using the valuation basis described in the method of apportionment for the applicable eligible service;

"eligible property" means property located within the service area of an eligible service that is owned or occupied by an insolvent person who is liable for property value taxes or parcel taxes referred to in Division 3 [Requisition and Tax Collection] with respect to that property;

"eligible service" means a regional district service with respect to which all or part of the method of apportionment is based on the assessed value, net taxable value or converted value of

(a) land,

(b) improvements, or

(c) land and improvements,

or on a similar method of apportionment that uses property values;

"insolvent person" means a person

(a) who has filed for and been granted protection under the Companies' Creditors Arrangement Act (Canada),

(b) who has filed an assignment or a proposal or a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada) or against whom a bankruptcy order or an order appointing an interim receiver has been made under that Act,

(c) in respect of whom a winding-up order has been made under the Winding-up and Restructuring Act (Canada) based in whole or in part on the person being insolvent, or

(d) who has made an application to the administrator under section 5 of the Farm Debt Mediation Act (Canada) and who has been found by the administrator to be eligible to make that application.

(2) Despite sections 380 [apportionment of costs] and 381 [cost sharing for services under Part 14], the board may, on an annual basis, exclude the determined value of an eligible property from the apportionment for an eligible service.

(3) In order to be effective for the current year, an exclusion under subsection (2) must be made before the requisitions in respect of the eligible service for that year are sent to municipalities under section 385 [requisition of funds from municipalities] and to the Surveyor of Taxes under section 387 [requisition of funds for electoral areas].

Valuation information and apportionment adjustments

383   (1) As soon as practicable after the relevant information is available, the British Columbia Assessment Authority must provide to the designated regional district officer and to the inspector

(a) the net taxable value of land and improvements, and

(b) the converted value of land and improvements

in each municipality, electoral area and participating area.

(2) If adjustments are made under the Assessment Act to the values referred to in subsection (1), the British Columbia Assessment Authority must provide particulars to the designated regional district officer and to the inspector.

(3) If, in respect of a year,

(a) adjustments referred to in subsection (2) are made, and

(b) the share of the cost of all the services of the regional district that was apportioned to and borne by a municipality or an electoral area in that year would, had those adjustments been taken into account, have increased or decreased by more than $1 000,

the share of the cost apportioned to and borne by the municipalities and electoral areas must be adjusted in a manner directed by the minister in the next requisition after the adjustment.

Tax base for property value taxes

384   (1) In the case of a participating area for a service for which no establishing bylaw is required, property value taxes must be imposed on the basis of the net taxable value of land and improvements in the participating area.

(2) In the case of a municipal participating area for a service for which an establishing bylaw is required, the establishing bylaw may provide that property value taxes must be imposed on the basis of one or more of the following:

(a) the assessed value of land and improvements in the participating area, other than land and improvements exempt from taxation for municipal purposes;

(b) the assessed value of land in the participating area, other than land exempt from taxation for municipal purposes;

(c) the assessed value of improvements in the participating area, other than improvements exempt from taxation for municipal purposes;

(d) the net taxable value of land and improvements in the participating area;

(e) the net taxable value of land in the participating area;

(f) the net taxable value of improvements in the participating area.

(3) As an exception to subsection (2), for a municipal participating area that is all or part of the City of Vancouver, property value taxes may be imposed on the basis set out in the establishing bylaw for the service.

(4) If a board fails to exercise its authority under subsection (2) or (3), property value taxes must be imposed on the basis of the assessed value of land and improvements in the participating area, other than land and improvements exempt from taxation for municipal purposes.

(5) In the case of an electoral participating area for a service for which an establishing bylaw is required, the establishing bylaw may provide that property value taxes must be imposed on the basis of one or more of the following:

(a) the net taxable value of land and improvements in the participating area;

(b) the net taxable value of land in the participating area;

(c) the net taxable value of improvements in the participating area.

(6) If a board fails to exercise its authority under subsection (5), property value taxes must be imposed on the basis of the net taxable value of land and improvements in the participating area.

Requisition of funds from municipalities

385   (1) On or before April 10 in each year, the designated regional district officer must send to each municipality a requisition in respect of each service stating the amount required from the municipality for the service during the year.

(2) An amount requisitioned under this section is a debt due by the municipality to the regional district, and the council must pay it to the board on or before August 1 of the current year.

Collection in municipalities

386   (1) If a requisition is delivered to a municipality, the amount requisitioned must be collected by the municipality as follows:

(a) in the case of an amount to be recovered by means of a property value tax, by imposing the tax in accordance with Division 3 [Property Value Taxes] of Part 7 of the Community Charter using the tax base authorized under section 384 [tax base for property value taxes] of this Act;

(b) in the case of an amount to be recovered by means of a parcel tax, by imposing the tax in accordance with Division 4 [Parcel Taxes] of Part 7 of the Community Charter.

(2) Part 7 [Municipal Revenue] of the Community Charter applies for the purposes of taxation under this section.

(3) If a participating area is only part of a municipality, taxes under this section in respect of the service may be imposed only in the municipal participating area for the service.

Requisition of funds for electoral areas

387   (1) On or before April 10 in each year, the designated regional district officer must deliver to the Surveyor of Taxes

(a) a requisition in respect of each service, stating the amount required during the year in respect of each electoral participating area, and

(b) that regional district officer's certification

(i) that the amount requisitioned is included in the financial plan for that year, and

(ii) of any other matter in relation to the requisition that is required to be certified under subsection (2).

(2) The Lieutenant Governor in Council may make regulations prescribing matters that must be certified under subsection (1) (b) and establishing requirements respecting such certifications.

(3) The amounts requisitioned under this section may be paid by the Minister of Finance from the consolidated revenue fund.

Collection in electoral areas

388   (1) If a requisition is delivered to the Surveyor of Taxes under section 387, the amount requisitioned must be collected by the Provincial government as follows:

(a) in the case of an amount to be recovered by means of a property value tax, by imposing the tax within the electoral participating areas in accordance with the Taxation (Rural Area) Act, having due regard to the tax base authorized under section 384 [tax base for property value taxes];

(b) in the case of an amount to be recovered by means of a parcel tax, by imposing the tax on the appropriate parcels within the electoral participating areas, on the basis of the assessment roll under subsection (2) of this section.

(2) If a parcel tax is to be imposed under this section,

(a) the board must, by bylaw, provide for the preparation of a parcel tax roll for the service area, and for these purposes Division 4 [Parcel Taxes] of Part 7 of the Community Charter applies,

(b) the authenticated parcel tax roll for the tax must be forwarded to the Surveyor of Taxes before February 28 in each year, and

(c) the authenticated parcel tax roll is to be used as the basis for the tax, subject to any deletions required to reflect deletions from the supplementary roll used under the Taxation (Rural Area) Act.

(3) An amount to be recovered under this section must be imposed by the Provincial government as if it were a tax under the Taxation (Rural Area) Act, and the provisions of that Act respecting assessment, levy, collection and recovery of taxes and the addition of penalty and interest on unpaid taxes apply to taxes imposed under this section.

Grants in place of taxes to be paid over to regional district

389   (1) The amount received by a municipality, by way of a grant in place of taxes for regional district purposes within the regional district,

(a) under the Municipal Aid Act, or

(b) from a Crown corporation or agency

must be paid to the board promptly after receipt.

(2) On or before February 1 in each year, the amount received under the Payments in Lieu of Taxes Act (Canada) in the immediately preceding year

(a) by a municipality, or

(b) for an electoral area, by the Surveyor of Taxes,

by way of a grant in place of taxes for regional district purposes within the regional district, must be paid to the board.

(3) An amount paid under subsection (1) or (2) must be applied proportionally to the accounts for the services in respect of which the grant is paid.

Variable tax rate system

390   (1) In this section, "variable tax rate system" means a system under this section by which individual tax rates for a specific taxation year are determined and imposed for each property class to which the system applies.

(2) Despite section 388 [collection in electoral areas] but subject to the regulations under this section, a board may, by bylaw, establish an annual variable tax rate system for a specified taxation year.

(3) A variable tax rate system

(a) may apply to tax rates only for one or more regional district services,

(b) may vary tax rates only for property classes 2, 4 and 5, and

(c) must not result in the ratios between the tax rate for a property class referred to in paragraph (b) and the tax rate for property class 1 exceeding either

(i) the applicable ratio prescribed under subsection (6), if any, or

(ii) the applicable ratio under section 20 (2) [regulations respecting variable tax rate system] of the Taxation (Rural Area) Act.

(4) For each service subject to a variable tax rate system, the bylaw must set out the ratio between the tax rate for each property class subject to the system and the tax rate for property class 1.

(5) A bylaw under subsection (2) must be approved by the inspector and, for this purpose, must be submitted to the inspector by January 31 in the taxation year for which it is to apply.

(6) Subject to subsection (8), the Lieutenant Governor in Council may make regulations respecting variable tax rate systems, including regulations doing one or more of the following:

(a) prescribing limits on tax rates;

(b) prescribing ratios between the tax rate for a property class and the tax rate for property class 1;

(c) prescribing formulas for calculating the limits or ratios referred to in paragraph (a) or (b).

(7) Regulations under subsection (6) may prescribe different tax limits, ratios or formulas in relation to one or more of the following:

(a) different property classes;

(b) different regional districts;

(c) different services;

(d) different service areas;

(e) different types of participating areas.

(8) A regulation under subsection (6) may not prescribe a ratio for the purposes of subsection (3) (c) that would exceed the applicable ratio established under section 20 (2) [variable tax rate system] of the Taxation (Rural Area) Act.

Property tax exemptions

391   (1) Land and improvements owned or held by a regional district within the boundaries of the regional district are exempt from taxation when used for its own purposes, but otherwise are subject to taxation, as applicable,

(a) under section 229 [taxation of municipal land used by others] of the Community Charter as if the property were owned by a municipality, or

(b) under section 18 (4) [assessment in name of occupier] of the Taxation (Rural Area) Act as if the property belonged to the Crown.

(2) Despite subsection (1), the owner of land or improvements, or both, leased or rented to the regional district is liable for the payment of taxes that would otherwise be imposed with respect to that property under any Act.

(3) On or before October 31 in any year, a board may, by bylaw adopted by at least 2/3 of the votes cast, exempt property described in subsection (4) from taxation under this Part

(a) for the next calendar year, or

(b) with the assent of the electors, for a specified period not longer than 10 years.

(4) The following property that is in an electoral area may be exempted under subsection (3):

(a) land or improvements, or both, owned or held by, or held in trust by the owner for, an athletic or service organization and used principally for public athletic or recreation purposes;

(b) land or improvements, or both, used or occupied by a church as tenant or licensee for the purpose of public worship or for the purposes of a church hall that the board considers necessary to the church;

(c) land that is owned and used exclusively by an agricultural or horticultural society and that is in excess of the area exemption under section 15 (1) (j) of the Taxation (Rural Area) Act;

(d) an interest held by a not-for-profit organization in school buildings that the organization uses or occupies as tenant or licensee of a board of school trustees;

(e) an interest held by a francophone education authority in school buildings that the francophone education authority uses or occupies as licensee of a board of school trustees;

(f) an interest held by a not-for-profit organization in school buildings that the organization uses or occupies as tenant or licensee of a francophone education authority;

(g) land or improvements that

(i) are owned or held by a municipality, regional district or other local authority, and

(ii) the board considers are used for a purpose of the local authority.

(5) An exemption under subsection (3) may be limited to a specified portion of the net taxable value of the property to which the exemption applies.

(6) If, because of a change in the use or ownership of property exempted under subsection (3), the property no longer meets the requirements for exemption established by subsection (4), the bylaw ceases to apply to that property and the property is liable to taxation effective from the time of the change.

(7) Assent of the electors as required by subsection (3) (b) is obtained if, by voting conducted throughout the regional district, a majority of the votes counted as valid in all voting on the bylaw is in favour of the bylaw.

(8) Part 4 [Assent Voting] applies to voting for the purposes of subsection (7), with voting to be conducted either, at the option of the board,

(a) by the board throughout the regional district, or

(b) by the council of each municipality and by the board for that part of the regional district that is not in a municipality, with the results of voting in these areas totalled to determine whether assent has been obtained.

Exemptions for heritage properties

392   (1) In this section and section 393, "eligible heritage property" means property in an electoral area that is

(a) protected heritage property,

(b) subject to a heritage revitalization agreement under section 610, or

(c) subject to a covenant under section 219 of the Land Title Act that relates to the conservation of heritage property.

(2) Despite section 273 [prohibition against assistance to business] but subject to subsection (3) of this section, for the purposes of supporting the conservation of an eligible heritage property, on or before October 31 in any year, a board may, by bylaw adopted by at least 2/3 of the votes cast, do one or more of the following:

(a) exempt from taxation under this Part all or part of

(i) the eligible heritage property, and

(ii) if the eligible heritage property is a building or other improvement so affixed to the land as to constitute real property, an area of land surrounding the eligible heritage property;

(b) limit an exemption under paragraph (a) to a specified portion of the net taxable value of the property to which the exemption applies;

(c) make an exemption under this subsection subject to specified conditions.

(3) A bylaw under subsection (2) may provide a tax exemption

(a) for the next calendar year, or

(b) if the bylaw has received the approval of the electors, for a specified period not longer than 10 years.

(4) In addition to the information required by section 86 (2) [alternative approval process — notice] of the Community Charter or section 176 (3) [notice of assent voting] of this Act, the notice in relation to approval of the electors under subsection (3) (b) of this section must

(a) identify the eligible heritage property that would be subject to the bylaw, and

(b) describe the exemption that would be made for the eligible heritage property.

(5) Within 30 days after adopting a bylaw under this section, the board must give notice of the bylaw to the minister responsible for the Heritage Conservation Act in accordance with section 595 [notice to heritage minister] of this Act.

Repayment requirement in relation to heritage exemptions

393   (1) A bylaw under section 392 may provide that, if any of the following circumstances as specified in the bylaw occur, the board may require the owner of the eligible heritage property at that time to pay to the regional district the amount calculated under subsection (2) of this section:

(a) if the eligible heritage property is destroyed, whether with or without proper authorization under the requirements of the heritage protection of the property;

(b) if the eligible heritage property is altered by or on behalf of the owner without proper authorization under the requirements of the heritage protection of the property;

(c) if any other circumstances specified in the bylaw occur.

(2) The amount that may be required under subsection (1) is the amount equivalent to the sum of

(a) the total taxes exempted under the bylaw under section 392

plus

(b) interest from the time at which the exempt taxes would otherwise have been payable, compounded annually at the rate referred to in section 245 [taxes in arrear] of the Community Charter.

(3) A bylaw under section 392 that includes a provision under subsection (1) may be adopted only with the consent of the current owner of the eligible heritage property to which the bylaw applies.

(4) If a bylaw under section 392 includes a provision under subsection (1) of this section, within 30 days after the bylaw is adopted, the board must have notice of the bylaw filed in the land title office, and for this purpose section 594 [notice on land titles] applies.

(5) If a bylaw under section 392 includes a provision under subsection (1) of this section and a circumstance specified in the provision occurs, the board may, by bylaw adopted by at least 2/3 of the votes cast, either

(a) require the owner to pay the amount referred to in subsection (2) of this section, or

(b) waive the obligation of the owner to pay all or part of the amount referred to in subsection (2) of this section.

(6) If a board does not adopt a bylaw under subsection (5) (a) within one year after it becomes aware of the circumstance in relation to which the bylaw could be adopted, the board is deemed to have waived all obligation of the owner to pay the amount referred to in subsection (2).

(7) If a board adopts a bylaw under subsection (5) (a) within the time period referred to in subsection (6), the board may

(a) require the Surveyor of Taxes to add the amount referred to in subsection (2) to the taxes payable on the eligible heritage property, in which case section 399 [special fees and charges that are to be collected as taxes] applies, or

(b) make an agreement with the current owner regarding payment of the amount referred to in subsection (2) as a personal debt to the regional district.

Exemptions for riparian property

394   (1) In this section and section 395:

"eligible riparian property" means property that meets all the following requirements:

(a) the property must be riparian land;

(b) the property must be subject to a covenant under section 219 of the Land Title Act that relates to the protection of the property as riparian property;

(c) the regional district granting the exemption under this section must be a covenantee in whose favour the covenant referred to in paragraph (b) is made;

(d) any other requirements prescribed under subsection (6);

"eligible value" means the portion of the net taxable value of the parcel of land in relation to which an exemption under subsection (2) is made that is equivalent to the ratio of

(a) the area of the eligible riparian property that is exempted under subsection (2) (a)

to

(b) the area of the parcel of land in relation to which the exemption is made.

(2) Despite section 273 [prohibition against assistance to business] but subject to subsections (3) and (4) of this section, for the purposes of supporting the conservation of an eligible riparian property, on or before October 31 in any year a board may, by bylaw adopted by at least 2/3 of the votes cast, do one or more of the following:

(a) exempt all or part of the eligible riparian property from taxation under this Part;

(b) limit an exemption under paragraph (a) to a specified portion of the eligible value of the property to which the exemption applies;

(c) make an exemption under this subsection subject to specified conditions.

(3) An exemption under subsection (2) may apply only to that part of the eligible riparian property that is a riparian area.

(4) A bylaw under subsection (2) may provide a tax exemption

(a) for the next calendar year, or

(b) if the bylaw has received the approval of the electors, for a specified period not greater than 10 years.

(5) In addition to the information required by section 86 (2) [alternative approval process notice] of the Community Charter or section 176 (3) [notice of assent voting] of this Act, the notice in relation to approval of the electors under subsection (4) (b) of this section must

(a) identify the eligible riparian property that would be subject to the bylaw, and

(b) describe the exemption that would be made for the eligible riparian property.

(6) The Lieutenant Governor in Council may, by regulation, establish additional requirements for property to be considered eligible riparian property.

Repayment requirement in relation to riparian exemptions

395   (1) A bylaw under section 394 may provide that, if

(a) there is a contravention of any of the conditions of the covenant under section 219 of the Land Title Act in relation to which the exemption is given,

(b) the covenant is discharged before the end of the period of the exemption, or

(c) any other circumstances specified in the bylaw occur,

the board may require the owner of the eligible riparian property at that time to pay to the regional district the amount referred to in subsection (2) of this section.

(2) The amount that may be required under subsection (1) is the amount equivalent to the sum of

(a) the total taxes exempted under the bylaw under section 394

plus

(b) interest from the time at which the exempt taxes would otherwise have been payable, compounded annually at the rate referred to in section 245 [taxes in arrear] of the Community Charter.

(3) A bylaw under section 394 that includes a provision under subsection (1) of this section may be adopted only with the consent of the owner of the eligible riparian property to which the bylaw applies.

(4) If a bylaw under section 394 includes a provision under subsection (1) of this section, within 30 days after the bylaw is adopted the board must have notice of the bylaw filed in the land title office, and for this purpose section 594 [notice on land titles] applies.

(5) If a bylaw under section 394 includes a provision under subsection (1) of this section and a circumstance specified in the provision occurs, the board may, by bylaw adopted by at least 2/3 of the votes cast, either

(a) require the owner to pay the amount referred to in subsection (2) of this section, or

(b) waive the obligation of the owner to pay all or part of the amount referred to in subsection (2) of this section.

(6) If a board does not adopt a bylaw under subsection (5) (a) within one year after it becomes aware of the circumstance in relation to which the bylaw could be adopted, the board is deemed to have waived all obligations of the owner to pay the amount referred to in subsection (2).

(7) If a board adopts a bylaw under subsection (5) (a) within the time period referred to in subsection (6), the board may

(a) require the Surveyor of Taxes to add the amount referred to in subsection (2) to the taxes payable on the eligible riparian property, in which case section 399 [special fees and charges that are to be collected as taxes] applies, or

(b) make an agreement with the owner regarding payment of the amount referred to in subsection (2) as a personal debt to the regional district.

Tax exemptions under partnering agreement

396   (1) A board may, by bylaw, exempt from taxation under this Part all or part of the land, improvements or both owned or held by a party to a partnering agreement with the regional district, during all or part of the term of the agreement.

(2) An exemption under this section may be provided only for that portion of the land or improvements used for a public purpose.

(3) If the term of the exemption authorized in the bylaw is for greater than 5 years, or for a period that by exercising rights of renewal or extension could exceed 5 years, the bylaw may be adopted only with the approval of the electors.

(4) An exemption under this section takes effect as follows:

(a) if the bylaw under subsection (1) is adopted by October 31 in a year, the exemption takes effect for the following calendar year;

(b) if the bylaw under subsection (1) is adopted after October 31 in a year, the exemption takes effect for the year following the next calendar year.

(5) If, because of a change in the use or ownership of property exempted from taxation by bylaw under this section the property no longer meets the requirements for exemption, the bylaw ceases to apply to that property and the property is liable to taxation effective from the time of the change.

Imposition of fees and charges

397   (1) A board may, by bylaw, impose a fee or charge payable in respect of

(a) all or part of a service of the regional district, or

(b) the use of regional district property.

(2) Without limiting subsection (1), a bylaw under this section may do one or more of the following:

(a) if the bylaw is in relation to an authority to provide a service or regulate outside the regional district, apply outside the regional district;

(b) base the fee or charge on any factor specified in the bylaw, including by establishing different rates or levels of fees in relation to different factors;

(c) establish different classes of persons, property, businesses and activities and different fees or charges for different classes;

(d) establish terms and conditions for payment, including discounts, interest and penalties;

(e) provide for the reduction, waiving or refund of a fee or charge if, as specified in the bylaw, a person

(i) has already paid towards the costs to which the fee or charge relates,

(ii) does not require the service to which the fee or charge relates,

(iii) no longer undertakes the activity or thing for which a licence, permit or approval was required, or

(iv) has prepaid towards the costs of the service to which the fee or charge relates and use of the service by the person is discontinued;

(f) establish fees for obtaining copies of records that are available for public inspection.

(3) As an exception, a board may not establish a fee or charge under this section

(a) in relation to Part 3 [Electors and Elections] or Part 4 [Assent Voting], or

(b) in relation to any other matter for which another provision of this Act specifically authorizes the imposition of a fee or charge.

(4) A regional district must make available to the public, on request, a report respecting how a fee or charge imposed under this section was determined.

Interest calculation

398   A regional district may, by bylaw, establish the manner in which interest is calculated if

(a) this or another Act provides a requirement or authority to apply interest to an amount owed to, or owing by, the regional district, and

(b) the manner in which interest is calculated is not otherwise provided for.

Special fees and charges that are to be collected as taxes

399   (1) This section applies to the following:

(a) regional district fees or charges imposed under this Act for work done or services provided to land or improvements;

(b) fees imposed under section 328 (2) (b) [fire and security alarms systems];

(c) amounts that a regional district is entitled to recover for work done or services provided to land or improvements under any provision of this Act that authorizes the regional district to recover amounts in the event of default by a person.

(2) If an amount referred to in subsection (1) is due and payable by December 31 and is unpaid on that date,

(a) the amount is deemed to be taxes in arrear,

(b) the regional district financial officer must promptly, after December 31, forward a statement showing the amount of the fee or charge

(i) to the Surveyor of Taxes in the case of real property that is not in a municipality, or

(ii) to the applicable municipal collector in other cases, and

(c) the Surveyor of Taxes or collector must add the amount of the fee or charge to the taxes payable on the property.

(3) If an amount is added to taxes under subsection (2) (c),

(a) the amount is deemed to be a Provincial or municipal tax, as applicable, and must be dealt with in the same manner as taxes against the property would be dealt with under the Taxation (Rural Area) Act or the Community Charter, and

(b) when it is collected, the Minister of Finance or collecting municipality must pay the amount to the regional district to which it is owed.

(4) If an amount is added under subsection (2) (c) and is not paid at the time the property is sold by tax sale,

(a) if the upset price is obtained at the time of the tax sale, the minister or municipality referred to in subsection (3) must pay out of the proceeds of the sale the amount due under this section to the regional district to which it is owed, or

(b) if the upset price is not obtained and subsequently the property is sold, the proceeds of the sale must be applied according to the respective interests in the upset price.

(5) Despite subsections (2) to (4), the regional district to which the amount is owed may bring action in a court of competent jurisdiction to recover that amount.

Special fees and charges that are liens against property

400   (1) This section applies to amounts referred to in section 399.

(2) An amount referred to in subsection (1)

(a) is a charge or lien on the land and its improvements in respect of which the charge is imposed, the work done or services provided,

(b) has priority over any claim, lien, privilege or encumbrance of any person except the Crown, and

(c) does not require registration to preserve it.

(3) An owner of land or real property aggrieved by the creation of a charge or lien under this section may, on 10 days' written notice to the regional district, apply to the Supreme Court for an order that the charge be removed or that the amount for which it was imposed be varied.

(4) On an application under subsection (3), if the court is satisfied that any of the amount for which the charge or lien was created was imposed improperly, it may order that the charge or lien be removed or that the amount be varied, or make another order it considers proper.

Limit on expenditures

401   (1) A regional district must not make an expenditure other than one authorized under subsection (2) or (3).

(2) A regional district may make an expenditure that is provided for that year in its financial plan, other than an expenditure that is expressly prohibited by this or another Act.

(3) A regional district may make an expenditure for an emergency that was not contemplated for that year in its financial plan, other than an expenditure that is expressly prohibited by this or another Act.

(4) In relation to the authority under subsection (3), the board must establish procedures

(a) to authorize expenditures under that subsection, and

(b) to provide for such expenditures to be reported to the board at a regular meeting.

(5) If an expenditure is made under subsection (3), as soon as practicable, the board must amend the financial plan in respect of the service to include the expenditure and the funding source for the expenditure.

(6) For certainty, the authority under subsection (3) does not include the authority to borrow for the purpose of making the expenditure.

Limit on borrowing and other liabilities

402   (1) A regional district may incur a liability only under the authority of this or another Act.

(2) A regional district must not incur a liability for which expenditures are required during the planning period for its financial plan unless those expenditures are included for the applicable year in the financial plan.

(3) Subsection (2) does not apply to a debt under section 404 [revenue anticipation borrowing].

Borrowing and liability: application of Community Charter

403   (1) The following provisions of the Community Charter apply to regional districts:

(a) section 175 [liabilities under agreements];

(b) section 176 [liabilities imposed under prescribed enactments];

(c) section 179 [loan authorization bylaws for long term borrowing].

(2) For the purposes of obtaining the approval of the electors under section 175 of the Community Charter as it applies under subsection (1) of this section, the electors are the electors of the service area in respect of which the liability is to be incurred.

(3) In relation to section 179 (1) (g) of the Community Charter as it applies under subsection (1) of this section, the reference to carrying out works referred to in section 32 (3) [expropriation or damage to property] of that Act is to be read as a reference to works referred to in section 291 [entry on land to mitigate damage] of this Act.

Revenue anticipation borrowing

404   (1) A board may, by bylaw, provide for the borrowing of money that may be necessary to meet its current lawful expenditures before its revenue, from all sources, to pay for those expenditures has been received.

(2) Money borrowed under this section must be repaid when the anticipated revenue with respect to which the borrowing was authorized is received.

Short-term capital borrowing in relation to general administration

405   (1) A board may, by bylaw adopted with the approval of the inspector, contract a debt for any purpose of a capital nature related to the service referred to in section 338 (2) (a) [general administration].

(2) A bylaw and the debt under this section must comply with the following:

(a) the debt must not cause the aggregate liabilities under this section to exceed the sum of $50 000 plus the product of $2 multiplied by the population of the regional district;

(b) the debt and securities for it must be payable no later than the lesser of

(i) 5 years from the date on which the securities were issued, or

(ii) the reasonable life expectancy of the capital asset for which the debt is contracted;

(c) the bylaw must set out

(i) the amount of the debt intended to be incurred, and

(ii) in brief and general terms, the purpose for which the debt is to be incurred.

(3) For the purposes of subsection (2) (a), the regional district population is to be taken from the most recent population census but, if a population has not been established by census, it must be determined by the minister until the results of a census are known.

Regional district loan authorization bylaws

406   (1) In addition to the requirements of section 179 [loan authorization bylaws for long term borrowing] of the Community Charter, a regional district loan authorization bylaw must identify the service to which it relates.

(2) A loan authorization bylaw may not be adopted in relation to a service referred to in section 338 (2) (h) [grants for mountain resort business improvement areas].

(3) Section 349 (1) to (6) [amendment or repeal of establishing bylaws] applies to the amendment or repeal of a loan authorization bylaw.

Participating area approval required for some loan authorization bylaws

407   (1) Subject to subsection (2), a loan authorization bylaw must receive participating area approval in accordance with this section.

(2) Participating area approval is not required for the following:

(a) paying compensation in respect of property expropriated or injured in carrying out works referred to in section 291 [entry on land to mitigate damage] of this Act;

(b) borrowing money for a purpose referred to in section 179 (1) (d) to (f) [borrowings for court and arbitration requirements] of the Community Charter;

(c) borrowing money for a purpose prescribed by regulation or in circumstances prescribed by regulation, subject to any conditions established by regulation.

(3) Participating area approval under this section may be obtained as follows:

(a) in any case, by assent of the electors in accordance with section 344 [approval by assent of the electors];

(b) in any case, by approval given in accordance with section 345 [approval by alternative approval process];

(c) for a municipal participating area that is all of the municipality, consent given in accordance with section 346 [consent on behalf of municipal participating area];

(d) for an electoral participating area, by consent given in accordance with section 347 (2) to (4) [consent on behalf of electoral participating area] if

(i) the borrowing is in relation to a service that was requested by petition under section 337 [petition for electoral area services] and the petition contemplated the borrowing, or

(ii) the borrowing was requested by petition under section 408 [electoral participating area petition for borrowing].

(4) The matter put before the electors under subsection (3) (a) or (b) must include the information referred to in section 179 (2) [loan authorization bylaw requirements] of the Community Charter.

(5) Subject to this section, Part 10 [Regional Districts: Service Structure and Establishing Bylaws] applies for the purposes of obtaining approval required by subsection (1).

Electoral participating area petition for borrowing

408   (1) The owners of parcels in an electoral participating area may sign and submit to the regional district a petition for borrowing in relation to the service.

(2) Each page of a petition referred to in subsection (1) must do the following:

(a) identify the service in relation to which the borrowing is proposed;

(b) identify the relevant electoral participating area;

(c) describe in brief and general terms the purpose of the proposed borrowing;

(d) state the estimated total amount of the proposed borrowing;

(e) state the maximum term for which the debentures for the proposed borrowing may be issued;

(f) contain other information that the board may require.

(3) In order for a petition to be certified as sufficient and valid for the purposes of this section,

(a) the petition must be signed by the owners of at least 50% of the parcels liable to be charged in relation to the proposed borrowing, and

(b) the persons signing must be the owners of parcels that in total represent 50% of the net taxable value of all land and improvements within the electoral participating area.

(4) Section 212 (4) to (6) [rules in relation to petition for local area service] of the Community Charter applies to a petition under this section.

Temporary borrowing under loan authorization bylaw

409   (1) A board that has adopted a loan authorization bylaw may, by bylaw, temporarily borrow money not exceeding the difference between the total amount authorized by the loan authorization bylaw and the amount already borrowed in relation to that bylaw.

(2) To the extent necessary, the proceeds of the borrowing under section 411 [security issuing bylaws] in relation to the loan authorization bylaw must be used to repay the money temporarily borrowed.

Financing municipal undertakings

410   (1) A regional district may finance, at the request and sole cost of a municipality, an undertaking

(a) for which the council of the municipality has adopted a loan authorization bylaw in accordance with the Community Charter, or

(b) in the case of the City of Vancouver, for which the council has passed a bylaw or resolution authorizing the borrowing of money under the Vancouver Charter.

(2) For the purpose of financing under this section,

(a) the board may adopt a security issuing bylaw without adopting a loan authorization bylaw, and

(b) the security issuing bylaw must state, as its authorization, the bylaw or resolution referred to in subsection (1).

(3) The municipality must provide for and pay over to the regional district the amounts required to discharge its obligations in accordance with the terms of debentures issued to the regional district or agreements entered into under section 411 [security issuing bylaws] or under the Vancouver Charter.

(4) If the amounts provided for in the debentures or under the agreements, as referred to in subsection (3), are not sufficient to meet the obligations of the board, the deficiency is a liability of the municipality to the regional district.

Security issuing bylaws

411   (1) A board may, by a security issuing bylaw, provide for the issue of debentures or other evidence of debt for all or part of the debt authorized by one or more loan authorization bylaws.

(2) A security issuing bylaw must specify the following:

(a) the loan authorization bylaws that authorize the borrowing;

(b) the amount of borrowing authorized by each loan authorization bylaw;

(c) the amount already borrowed under each loan authorization bylaw;

(d) the amount remaining to be borrowed under each loan authorization bylaw;

(e) the amount authorized by the security issuing bylaw to be issued under each loan authorization bylaw;

(f) the term of the debt.

(3) The proceeds of the borrowing under a security issuing bylaw must be allotted proportionally for the purposes of each loan authorization bylaw referred to in subsection (2) (a).

(4) A security issuing bylaw must not be adopted

(a) while any proceeding is pending in which the validity of a loan authorization bylaw referred to in subsection (2) (a) is called into question or by which it is sought to be set aside, or

(b) until the time for giving notice of intention to apply to set aside the loan authorization bylaw expires.

(5) A regional district security issuing bylaw may include borrowing under section 410 [financing municipal undertakings], as well as borrowing by the regional district for its own purposes.

General liability provisions

412   (1) Money borrowed by a regional district must be on its credit at large and, in the event of default, constitutes an indebtedness of the municipalities and electoral areas in the regional district that they are jointly and severally liable to repay.

(2) If a municipality defaults on the payment of money due and payable by it to the regional district, the Lieutenant Governor in Council may, at the request of the board, appoint a commissioner for the municipality and, on being appointed, the commissioner has all the powers and duties of a commissioner appointed under Division 3 [Administrative Commissioner] of Part 19 [General Matters and Provincial Authorities].