Municipal Operating Grants

This grant consists of the following four components:

Equalization:	Helps depressed areas re: property values
Local Revenue Incentive:	Encourages generation of local revenue.
Households:	Grants provided for each household.
Roads	Grants provided for each kilometer of road for which the municipality is responsible.

  Debt Servicing Grants and Subsidies:

Provides grants and subsidies to assist the municipalities in the repayment of capital debt issued to various financial agencies for the development of municipal infrastructure, recreation facilities and other municipal improvements.

  Finance Committee (Special Assistance):

Deals with a wide range of requests and issues for the most part concerning the general operations of a municipality beyond the municipal budgetary process as well as fire fighting needs it also considers requests for ministerial approvals for short-term borrowing as well as long-term borrowing for municipal shares of infrastructure loans.

  Refinancing of Guaranteed Municipal Bank Loans:

Ongoing process that involves ensuring that precise amounts of money are paid to the appropriate banks for the appropriate municipalities and for the relevant capital projects. These procedures must be carried out by specific deadlines which have been established for the payout date.

  Restructuring of Municipal Debt:

As a result of a change in Government Policy in 1996 Municipalities were given authority to refinance their Newfoundland Municipal Financing Corporation municipal debt through private financial institutions to avail of better interest rates. This process entails the analysis of the present portfolio of a municipality taking info account their total debt, the subsidy provided by the province and determining what portion of the balance of the principal debt is the municipalities. Approvals to borrow are issued to the Council which will include any arrears and penalties charged by the NMFC. The Province then assumes 100% responsibility for the principal remaining.

Contact Information:
Department of Municipal Affairs Main Floor (West Block)
Confederation Building
P.O. Box 8700
St. John's, NL
A1B 4J6

Telephone: (709) 729-3057
Facsimile: (709) 729-0477

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