12 (1) Subject to the restrictions set out in this section, the city may do the following things by by-law: 1.  Identify a special service. 2.  Determine the amount of the city’s costs (including capital costs, debenture charges and charges for depreciation or for a reserve fund) that are related to that special service. 3.  Subject to a regulation made under subsection (5), designate one or more merged areas of the city as an area in which the residents and property owners receive or will receive an additional municipal benefit from the special service that is not or will not be received in the other merged areas of the city. 4.  Determine the portion of the amount determined under paragraph 2 that represents the additional cost of providing the additional municipal benefit in each area designated under paragraph 3 and set out the method it used for making that determination. 5.  Determine the amount, if any, of the additional cost referred to in paragraph 4 that is to be raised under subsection (8).  1999, c. 14, Sched. C, s. 12 (1). Restriction (2) A by-law may be made with respect to a special service, (a)  that was being provided in a merged area of the city by or on behalf of an old municipality or a local board of an old municipality; and (b)  that continued to be provided in the merged area by or on behalf of the city or a local board of the city at any time during 2001.  1999, c. 14, Sched. C, s. 12 (2). Same (3) A by-law cannot designate a merged area under paragraph 3 of subsection (1) as one in which residents and property owners do not currently receive but will receive an additional municipal benefit from the special service in future unless, (a)  the expenditures necessary to make the additional benefit available in the merged area appear in the city’s budget for the year (as adopted under section 290 of the Municipal Act, 2001); or (b)  the city has established a reserve fund to finance those expenditures over a period of years.  1999, c. 14, Sched. C, s. 12 (3); 2002, c. 17, Sched. F, Table. Same (4) The city cannot pass a by-law for a particular year (the “applicable year”) after 2002 with respect to a particular special service unless the following conditions are met: 1.  The city passed a by-law with respect to the special service in 2002. 2.  The city passed a by-law with respect to the special service for every year after 2002 and before the applicable year.  1999, c. 14, Sched. C, s. 12 (4). Regulation, designated areas (5) For the purposes of paragraph 3 of subsection (1), the Minister may, by regulation, (a)  specify an area that may be designated under that paragraph even though it is not composed of one or more merged areas; (b)  prescribe circumstances in which an area may be designated under that paragraph even though it is not composed of one or more merged areas.  1999, c. 14, Sched. C, s. 12 (5). Same (6) A regulation under subsection (5) may be general or specific in its application and may apply differently to different special services.  1999, c. 14, Sched. C, s. 12 (6). Same (7) A regulation under subsection (5) may be made retroactive to a date not earlier than January 1 of the year in which the regulation is made.  1999, c. 14, Sched. C, s. 12 (7). Special levy (8) For each year in which a by-law under subsection (1) is in force, the city shall levy a special local municipality levy under section 312 of the Municipal Act, 2001 on the rateable property in the area designated under paragraph 3 of subsection (1) to raise the amount determined under paragraph 5 of that subsection.  1999, c. 14, Sched. C, s. 12 (8); 2002, c. 17, Sched. F, Table. Same (9) Such rateable property as may be prescribed is exempt from the levy under subsection (8) to the extent prescribed.  1999, c. 14, Sched. C, s. 12 (9). Section Amendments with date in force (d/m/y) 2002, c. 17, Sched. F, Table - 01/01/2003