Skip to content

Prince Edward Island adopts new Municipal Government Act

Perlene Morrison

Prince Edward Island’s municipal legislation is being modernized with the implementation of the Municipal Government Act (the “MGA”). The legislation has now received royal assent and will be proclaimed in force at a future date. The MGA repeals and replaces existing municipal legislation in the Province, including the Charlottetown Area Municipalities Act, the City of Summerside Act, and the Municipalities Act. There are a number of details, however, that must still be worked out by way of regulations. As of this date, a draft of the regulations has not yet been published.

Interpretation of Municipal Powers

Historically, municipal statutes were interpreted strictly. The modern approach is different. It aims to give municipal legislation a broad, purposive, and contextual interpretation. The new MGA embraces this new approach and expressly states that the powers granted to municipalities and their councils are to be interpreted broadly in accordance with the purposes of the legislation. Those purposes are expressly set out in the MGA.

New Bylaws

Many municipalities will have a significant amount of work to do in order to comply with the new legislation. All municipalities will be required to have the following bylaws enacted:

  • election bylaw;
  • procedural bylaw (including conflict of interest rules);
  • records retention and disposal bylaw;
  • emergency management plan bylaw;
  • access to information and protection of privacy bylaw; and
  • procurement bylaw.

The MGA sets time limits for the enactment of these bylaws, although the dates are not yet known because they depend upon when these sections of the MGA are proclaimed into force.

In addition to these new bylaws, it is also necessary for all municipalities to adopt a code of conduct in accordance with the requirements prescribed by the MGA. A bylaw will now be required to authorize any remuneration to a member of council or to a member of committee of council.

New Financial Requirements

The MGA also includes more stringent financial requirements. Municipalities must adopt an operating budget, a capital budget, and a financial plan. A council will only be able to make expenditures that are included in their financial plans, unless the expenditure qualifies as an emergency under the Emergency Measures Act or is ordered to be paid by a court or by the Minister. There are also specific requirements for borrowing funds and for issuing grants or loans, including the requirement to authorize all of those things by bylaw. Financial statements must be prepared in accordance with the MGA and an auditor must be appointed by municipalities.

Restructuring Municipalities

The MGA includes new processes for establishing, restructuring, and dissolving municipalities. Municipalities that are continued, restructured, or established under the legislation will be required to provide fire protection, municipal planning (including an official plan and bylaws), and emergency measures planning. In addition, all municipal offices must be accessible to all members of the public. The MGA also includes more robust rules around conflicts of interest and increases the number of areas where tickets can be issued by municipalities for bylaw infractions.

The MGA also gives significant powers to the Minister, including the power to dissolve a council and appoint an official trustee to act in its place. The Minister can also require audits, inspections, and inquiries. And all of these functions are at the expense of the affected municipality. There is also ministerial authority to withhold funding and to declare a municipality ineligible for funding programs in the event of non-compliance with orders issued by the Minister.

In summary, municipalities in Prince Edward Island will be entering a new era of oversight under the MGA.

Next Steps for Municipalities

With these new expectations and obligations for municipalities, the MGA is clearly encouraging communities to come together. It will be challenging for smaller municipalities to meet these new legislated requirements. And for those municipalities who already have bylaws in place that address these subjects, they will still need to review them to make sure that they satisfy the requirements of the MGA. We encourage municipalities to contact their legal and financial advisors to obtain advice as to what is required in order to comply with the new MGA. While much is unknown as we await publication of the new regulations, it is clear that the MGA, when proclaimed in force, will change the way municipalities carry on business in Prince Edward Island.

If you have any questions about the new MGA, please do not hesitate to contact our municipal government team at Stewart McKelvey in Charlottetown: Perlene MorrisonGeoffrey Connolly, QC, P.Eng. and Jonathan Coady.

SHARE

Archive

Search Archive


 
 

Client Update: A judge’s guide to settlement approval and contingency fee agreements in P.E.I.

July 25, 2013

In Wood v. Wood et al, 2013 PESC 11, a motion pursuant to Rule 7.08 of the Rules of Civil Procedure for court approval of a settlement involving a minor, Mr. Justice John K. Mitchell approved the settlement among the…

Read More

Client Update: Directors will be liable for unpaid wages and vacation pay

July 8, 2013

Clients who sit on boards of corporate employers should take note of recent amendments made to New Brunswick’s Employment Standards Act (the “ESA”) which could increase their exposure to personal liability in connection with claims advanced by…

Read More

Client Update: To B or Not To B? Potential Changes to PEI Auto Insurance

June 28, 2013

Significant changes may be coming to the standard automobile policy in PEI, including increases to the accident benefits available under Section B and an increase to the so-called “cap” applicable to claims for minor personal…

Read More

Client Update: Special Project Orders the next milestone for Muskrat Falls progress

June 21, 2013

On June 17, 2013, pursuant to the recently amended Section 70 of the Labour Relations Act for Newfoundland and Labrador (“NL”), the Government of Newfoundland and Labrador issued three Special Project Orders (“SPOs”) in respect of the…

Read More

Client Update: Hold your breath, SCC rules on random alcohol testing

June 17, 2013

On June 14, 2013, the Supreme Court of Canada (“the Court”) released the decision that employers across the country were waiting for. In CEP Local 30 v. Irving Pulp & Paper Ltd., 2013 SCC 34, a…

Read More

Client Update: Newfoundland and Labrador Aboriginal Consultation Policy

June 14, 2013

The Government of Newfoundland and Labrador (“NL”) has recently released its “Aboriginal Consultation Policy on Land and Resource Development Decisions” (the “Policy”). A copy of the Policy can be accessed here. This new Policy is the…

Read More

Spring 2013 Labour & Employment Atlantic Canada Legislative Update

June 11, 2013

The following is a province-by-province update of legislation from a busy 2013 spring session in Atlantic Canada. Watching these developments, we know the new legislation that has passed or could soon pass, will impact our…

Read More

Client Update: Jury Duty – Time to Think Twice

June 6, 2013

The integrity of the jury system has become a pressing topic for our courts of late, with articles about jury duty frequently appearing front and centre in the press. The recent message from the Nova…

Read More

Doing Business in Atlantic Canada (Summer 2013)(Canadian Lawyer magazine supplement)

June 2, 2013

IN THIS ISSUE: Cloud computing: House to navigate risky skies by Daniela Bassan and Michelle Chai Growing a startup by Clarence Bennett, Twila Reid and Nicholas Russon Knowing the lay of the land – Aboriginal rights and land claims in Labrador by Colm St. Roch Seviour and Steve Scruton Download…

Read More

Client Update: The Personal Health Information Act (PHIA) is coming…..

May 27, 2013

DOES IT APPLY TO YOU? On June 1, 2013, the Personal Health Information Act (PHIA) comes into force in Nova Scotia.  If you are involved in health care in Nova Scotia, you need to know whether PHIA…

Read More

Search Archive


Scroll To Top