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HomeMy WebLinkAboutADM 300 Asset Transfer for Municipal Services Corporations Policy Policy Procedure Title: Asset Transfer for Municipal Services Corporations Policy Number ADM 300 Reference Municipal Act, 2001, S.O. 2001, c. 25 Ontario Regulation 599/06 (Municipal Services Corporations) Council Resolution #666/25 Council Resolution #886/25 Date Originated (m/d/y) November, 24,2025 Date Revised (m/d/y) Pages 5 Approval: Chief Administrative Officer Point of Contact Corporate Services Department Policy Objective The purpose of this policy is to set out the responsibilities and process for the transfer of assets by The Corporation of the City of Pickering (the City) to municipal services corporations in accordance with applicable legislation and as authorized by Council. This policy is intended to address asset transfers to municipal services corporations as required under section 7 of Ontario Regulation 599/06 (Municipal Services Corporations) made under the Municipal Act. Index 01 Definitions 02 Procedures 03 Scope 04 Process for Transfer 01 Definitions 01.01 Asset - real or personal property, whether tangible or intangible (including money), that has a financial value. 01.02 City - The Corporation of the City of Pickering. 01.03 City Solicitor - the Director, Corporate Services & City Solicitor , or their designate. 01.04 Council - the Mayor and M embers of Council for the City . Policy Title: Asset Transfer Policy for Municipal Services Corporations Page 2 of 5 Policy Number: ADM 300 01.05 Destination Pickering Inc. - a Municipal Services Corporation established as an eligible tourism entity for the purposes of Ontario Regulation 435/17 (Transient Accommodation Tax) and to provide tourism promotion services and tourism development services to the City of Pickering. 01.06 Fair Market Value - the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable and willing parties who are under no compulsion to act in a biased manner. 01.07 Municipal Accommodation Tax (“MAT”) - the tax on the purchase of transient accommodation in accordance with City By-law #8161/25 pursuant to Ontario Regulation 435/17 (Transient Accommodation Tax) of the Municipal Act. 01.08 Municipal Accommodation Tax Revenue or MAT Revenue - fifty percent (50%) of the City ’s MAT revenue collected after deducting the City ’s reasonable costs of collecting and administering the MAT program. 01.09 Municipal Act - the Municipal Act, 2001, S.O. 2001, c. 25, including regulations made under it, as amended. 01.10 Municipal Services Corporation - a corporation incorporated by the City , by itself or together with other public sector entities, in accordance with section 203 of the Municipal Act and section 3 of Ontario Regulation 599/06 (Municipal Services Corporations) made under the Municipal Act. 01.11 Transfer - the act of selling, conveying, leasing or otherwise transferring an interest in property, whether real or personal property, whether or not such transfer involves the exchange of money or another form of consideration. 01.12 Treasurer - the Director, Financ e & Treasurer, or their designate. 02 Procedures 02.01 City to: (a) ensure that all applicable legislation, including the Municipal Act, is adhered to in any Asset Transfers. 02.02 Director, Finance & Treasurer to: (a) determine the Fair Market Value of the Asset prior to the Transfer to a Municipal Services Corporation; (b) prepare a statement of the value of any grant to a Municipal Services Corporation or an estimate of the Fair Market Value of any Asset Transfer or other assistance provided at less than Fair Market Value to a Municipal Services Corporation; and Policy Title: Asset Transfer Policy for Municipal Services Corporations Page 3 of 5 Policy Number: ADM 300 (c) record the Transfer or disposition of the City’s Asset in the City’s financial statements in accordance with the Public Sector Accounting Board (PSAB) standards and the City’s financial accounting policies. 02.03 With the exception of Municipal Accommodation Tax Revenues, Council to: (a) review proposed Asset Transfers with a Fair Market Value of more than $5,000.00; and (b) provide approval and terms or conditions, as necessary or appropriate, in advance of the Asset Transfer. 02.04 With the exception of Municipal Accommodation Tax Revenues, the Director, Finance & Treasurer and Director, Corporate Services & City Solicitor to: (a) review proposed Asset Transfers with a Fair Market Value of $5,000.00 or less; and (b) provide approval and terms or conditions, as necessary or appropriate, in advance of the Asset Transfer. 02.05 For Municipal Accommodation Tax Revenues, the Director, Finance & Treasurer to: (a) review and reconcile MAT collections and reasonable costs of collecting and administering the MAT program. 03 Scope 03.01 This policy applies to any instance where assets are transferred by the City to a M unicipal Services Corporation. This policy does not apply to asset transfers within City Departments or to other persons or entities. 04 Process for Transfer 04.01 The City may Transfer its Assets to a Municipal Services Corporation on the following terms: 04.01.1 The City shall ensure that all applicable legislation, including the Municipal Act, is adhered to in any Asset Transfers. 04.01.2 Prior to any Asset Transfer, the Director, Finance & Treasurer shall determine the Fair Market Value of the Asset, which determination may involve the use of an appraiser, but such appraisal will not necessarily be required where the Director, Finance & Treasurer is of the opinion that a Fair Market Value can otherwise be accurately determined. 04.01.3 With the exception of MAT Revenues, any Asset Transfer with a Fair Market Value of more than $5,000.00 must be approved by Policy Title: Asset Transfer Policy for Municipal Services Corporations Page 4 of 5 Policy Number: ADM 300 Council in advance of the Transfer. Any Asset Transfer with a Fair Market Value of $5,000.00 or less must be approved by the Director, Finance & Treasurer and the Director, Corporate Services & City Solicitor in advance of the Transfer. 04.01.4 MAT Revenues shall be Transferred to Destination Pickering Inc. in a timely manner and, at a minimum, on an annual basis with conditions that the funds be used for tourism promotion services and tourism development services in accordance with Ontario Regulation 435/17 (Transient Accommodation Tax). 04.01.5 Council, or the Director, Finance & Treasurer and the Director, Corporate Services & City Solicitor, as applicable, may attach any term or condition to any Asset Transfer as they deem necessary or appropriate, including: (a) specifying the permitted use of the Asset or any restrictions on the use of the Asset; (b) providing for an obligation on the Municipal Services Corporation to report to the City on the use of the Asset; (c) providing for an obligation on the Municipal Services Corporation to Transfer back the Asset upon the happening of an event or events; (d) restricting or prohibiting any further Transfer of the Asset; (e) attaching a purchase price of the Asset which is to be paid or owed to the City by the Municipal Services Corporation; (f) attaching any repayment or conditional payment terms; and (g) such other terms or conditions as deemed advisable. 04.02 The Director, Finance & Treasurer shall prepare a statement of the value of any grant to a Municipal Services Corporation or an estimate of the Fair Market Value of any Asset Transfer or other assistance provided at less than Fair Market Value to a Municipal Services Corporation. 04.03 The Director, Finance & Treasurer shall record the Transfer or disposition of the City ’s Asset in the City ’s financial statements in accordance with the Public Sector Accounting Board (PSAB) standards and the City ’s financial accounting policies. 04.04 Where the Province of Ontario or the Government of Canada has contributed funds to any Asset being Transferred, the City shall give notice to the party that made part of the contribution if such notice is required by law or contract. Policy Title: Asset Transfer Policy for Municipal Services Corporations Page 5 of 5 Policy Number: ADM 300 04.05 Where the Province of Ontario has granted a right in an agreement with the City , the City shall obtain the consent of the Minister responsible for the agreement before Transferring such right. Please refer to all associated Procedures and Standard Operating Procedures, if applicable, for detailed processes regarding this Policy.