What are the eligible types of expenditures for which the funds can be used?
Municipalities have the discretion to spend their funds on their unique capital priorities. However, it should be noted that, under the 2008 regulation, payment: (a) may only be used by an eligible recipient for expenditures that are capital expenditures with respect to the eligible recipient under generally accepted accounting principles for local governments as recommended, from time to time, by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants; and (b) shall not be used for the purpose of reducing or paying out the amount of any debt relating to a capital expenditure if the debt was incurred by the eligible recipient before the date on which the relevant payment is received. In summary, any capital expenditure, as long as it meets the definition of “capital” according to the PSAB definition, is eligible if it meets the timing restrictions.
