Acts and Regulations

2025-35 - Capital Renewal Funding

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 2025-35
under the
Community Funding Act
(O.C. 2025-161)
Filed September 12, 2025
Under section 25 of the Community Funding Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Capital Renewal Funding Regulation – Community Funding Act.
Definitions
2The following definitions apply in this Regulation.
“Act” means the Community Funding Act. (Loi)
“asset management plan” means a plan prepared by a local government to manage its tangible capital assets. (plan de gestion des actifs)
“capacity building” means support for decision-making and planning in infrastructure management. (renforcement des capacités)
“capital renewal plan” means a plan setting out the anticipated use of capital renewal grants by a local government that is prepared and submitted under paragraph 12(2)(b). (plan de renouvellement des immobilisations)
“eligible capital project” means a capital project set out in subsection 3(1) that is carried out, or is to be carried out, by a local government. (projet d’immobilisation admissible)
“eligible expenditure” means an expenditure set out in subsection 4(1) that is made in connection with an eligible capital project. (dépense admissible)
“infrastructure” means a tangible capital asset that (élément d’infrastructure)
(a) is held for use in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, improvement, construction, maintenance or repair of other tangible capital assets,
(b) is used on a continuing basis, and
(c) is not for sale in the ordinary course of operations.
“net book value of tangible capital assets” means the value determined in accordance with subsection 9(1). (valeur nette comptable des immobilisations corporelles)
“tangible capital asset” means a non-financial asset that is physical in nature, excluding land and land improvements, that is used in the delivery of a service by a local government and has an expected life or usage that exceeds one year. (immobilisation corporelle)
Eligible capital projects
3(1)For the purposes of section 16.1 of the Act, and subject to subsection (2), capital projects relating to the renewal or replacement of infrastructure are eligible for a capital renewal grant.
3(2)A local government may use a capital renewal grant for eligible capital projects and eligible expenses in combination with any federal, provincial or private funding in accordance with the terms and conditions of that funding.
Eligible expenditures
4(1)A local government may use a capital renewal grant for the following expenditures:
(a) the cost of eligible capital projects;
(b) costs related to the study, planning and design of eligible capital projects;
(c) interim debt-financing charges attributable to an eligible capital project; and
(d) the cost of capacity building.
4(2)A local government shall not use a capital renewal grant for the following expenditures:
(a) costs incurred before January 1, 2026;
(b) development of new infrastructure;
(c) routine repair and maintenance of infrastructure;
(d) acquisition or leasing of real property, buildings or facilities and related costs;
(e) costs that are eligible for recovery or rebate, including taxes;
(f) in the case of a capital project relating to a facility, any costs attributable to expansion of the facility or to the fundamental alteration of its original purpose or capacity;
(g) operational costs; or
(h) legal fees.
Capital renewal grant
5For the purposes of section 16.2 of the Act, a capital renewal grant provided to a local government in the current year shall not exceed the sum of
(a) a base allocation of $50,000, and
(b) the proportional allocation determined in accordance with section 6.
Proportional allocation
6For the purposes of paragraph 5(b), the proportional allocation for a local government is determined by the following formula:
(A ÷ B) × C
where
A means the adjusted share of the proportional allocation for the local government;
B means the adjusted shares of the proportional allocation of all local governments;
C means the total available budget.
Adjusted share of the proportional allocation
7(1)For the purposes of section 6, the value of variable “A” is determined by the following formula:
D ÷ E × F
where
D means the net book value of the tangible capital assets of the local government;
E means the net book value of the tangible capital assets of all local governments;
F means the scaled adjustment factor.
7(2)For the purposes of section 6, the value of variable “B” is determined by adding the adjusted share of the proportional allocation of each local government.
Total available budget
8For the purposes of section 6, the value of variable “C” is determined by the following formula:
G – (H × I) – J
where
 G means the total amount of capital renewal funding for the current year fixed under section 16.1 of the Act;
 H means the base allocation fixed under paragraph 5(a);
 I means the total number of local governments in the previous year;
 J means the costs incurred by the Minister to administer capital renewal funding for the previous year.
Net book value of tangible capital assets
9(1)For the purposes of subsection 7(1), the value of variable “D” is determined, using values set out in the audited financial statements of a local government, by the following formula:
K – L
where
K means the end-of-year balance of the book value of the tangible capital assets of the local government;
L means the end-of-year balance of accumulated amortization of the tangible capital assets of the local government.
9(2)For the purposes of subsection 7(1), the value of variable “E” is determined by adding the net book value of the tangible capital assets of each local government.
Scaled adjustment factor
10(1)For the purposes of subsection 7(1), the value of variable “F” is determined by the following formula:
(M – N) ÷ (O – N) + 1
where
M means the adjustment factor of the local government;
N means the lowest adjustment factor of all local governments;
O means the highest adjustment factor of all local governments.
10(2)For the purposes of subsection (1), an adjustment factor is determined by the following formula:
P ÷ Q
where
P means the net book value of the tangible capital assets of a local government;
Q means the municipal tax base or rural community tax base, as the case may be, of the local government.
Terms and conditions
11(1)For the purposes of section 16.2 of the Act, a capital renewal grant is subject to the following terms and conditions:
(a) a local government shall apply a capital renewal grant only to eligible capital projects and eligible expenditures;
(b) a local government shall apply interest and investment revenue derived from a capital renewal grant only to eligible capital projects identified in its capital renewal plan;
(c) if, in respect of an eligible capital project identified in a capital renewal plan, the combined total of capital renewal grants and funding under subsection 3(2), if any, exceeds 100% of the total cost of the project, the local government shall use the excess in accordance with an updated capital renewal plan submitted to the Minister;
(d) when a local government disposes of a tangible capital asset that was funded as part of a capital renewal plan and the asset is no longer used for the benefit of a community, the local government shall invest in an eligible capital project a sum equal to the net book value of the asset or, if the asset was funded only in part with capital renewal funding, in the proportion that capital renewal funding bears to the acquisition cost of that asset;
(e) a local government shall prepare and submit information and documents to the Minister in accordance with section 12;
(f) a local government shall be subject to an independent financial audit on request;
(g) a local government shall maintain accurate records relating to the use of its capital renewal grants and shall make those records available to the Minister on request; and
(h) a local government shall expend a capital renewal grant within four years of receipt.
11(2)If a local government fails to satisfy the terms and conditions set out in subsection (1), the Minister may withhold any outstanding payment of a capital renewal grant or may refuse to provide a future capital renewal grant.
Reporting requirements
12(1)Each year, a local government shall prepare and submit to the Minister information and documents setting out a description of its activities during the previous year relating to its use of capital renewal grants, including:
(a) a financial report which shall account for interest or investment income derived from a capital renewal grant;
(b) the progress made with respect to capital projects;
(c) if there are changes to capital renewal funding, an updated capital renewal plan; and
(d) capital project completion forms, if applicable.
12(2)Every four years, a local government shall prepare and submit to the Minister the following documents:
(a) an asset management plan;
(b) a capital renewal plan; and
(c) a report on the state of all infrastructure owned by the local government.
12(3)A local government shall make its asset management plan and capital renewal plan under subsection (2) available to the public.
N.B. This Regulation is consolidated to September 12, 2025.