HomeMy WebLinkAbout06 042 Borrow/Water Supply Proj
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
BY-LAW NO. 2006 - 042
BEING A BY-LAW TO AUTHORIZE THE BORROWING UPON
PROMISSORY NOTES TOWARDS THE COST OF THE
CONSTRUCTION OF THE KINCARDINE TO INVERHURON WATER
SUPPLY PROJECT AND TO REPEAL BY-LAW NO. 2005 - 159
WHEREAS the Municipal Act, 2001, S.O. 2001, c. 25, Section 401 as amended
(the "Act") provides that a municipality may incur a debt for municipal purposes,
whether by borrowing money or in any other way, and may issue debentures and
prescribed financial instruments and enter prescribed financial agreements for or
in relation to the debt;
AND WHEREAS pursuant to the said Municipal Act, Section 408 sets out the
requirements of the borrowing by-law,
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AND WHEREAS Regulation 276/02 sets out requirements for borrowing by way
of a bank loan,
AND WHEREAS the Council of The Corporation of the Municipality of Kincardine
(the "Municipality") has passed the by-laws enumerated in column (1) of
Schedule "A" attached hereto and forming part of this by-law authorizing the
project described in column (2) of Schedule "A",
AND WHEREAS before authorizing the Project the Municipality had its Treasurer
update its most recent annual debt and financial obligation limit received from the
Ministry of Municipal Affairs and Housing in accordance with the applicable
regulation and, prior to authorizing each Project, the Treasurer determined that
the estimated annual amount payable in respect of the Project would not cause
the Municipality to exceed the updated limit and that the approval of the Project
by the Ontario Municipal Board was not required;
AND WHEREAS to provide long-term financing for the Project and to repay
certain temporary advances in respect of the Project made by The Canadian
Imperial Bank of Commerce (CIBC), it is now expedient to borrow by way of a
bank loan as evidenced by the issue of promissory notes in the amount of
$1,024,000.00 in lawful money of Canada;
AND WHEREAS the Municipality of Kincardine adopted By-law No. 2005 - 159,
to authorize the borrowing upon promissory notes towards the cost of the
construction of the Kincardine to Inverhuron Water Supply Project;
AND WHEREAS it has been determined that various amendments are required
to By-law No. 2005 - 159;
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
NOW THEREFORE the Council of The Corporation of the Municipality of
Kincardine ENACTS as follows:
For the Project, the borrowing upon the credit of the Municipality of the
sum of $377,800.00 and the issue of a promissory note therefore upon the
credit of the Municipality to be repaid in one lump sum together with
interest as hereinafter set forth is authorized as more specifically set out in
Schedule "B" attached hereto and forming part of this by-law.
2. For the Project, the borrowing upon the credit of the Municipality of the
sum of $646,200.00 and the issue of a promissory note to be repaid in
semi-annul installments of combined (blended) principal and interest as
hereinafter set forth is hereby authorized as specifically set out in
Schedule "C" attached hereto and forming part of this by-law."
1.
3.
The Mayor and the Treasurer of the Municipality are hereby authorized to
cause any number of promissory notes to be issued for such sums of
money as may be required for the Projects in definitive forms, not
exceeding in total the said sum of $1,024,000.00 (the "Notes"). The Notes
shall bear the Municipality's municipal seal and the signatures of the
Mayor and the Treasurer of the Municipality, all in accordance with the
provisions of the Act. The municipal seal of the Municipality and the
signatures referred to in this section may be printed, lithographed,
engraved or otherwise mechanically reproduced. The Notes are
sufficiently signed if they bear the required signatures and each person
signing has the authority to do so on the date he or she signs.
4. The Notes shall be in the aggregate principal amount of $1,024,000.00 in
the name of CIBC, with provision for payment of principal and interest by
pre-authorized debit in respect of such principal and interest to the credit
of CIBC on such terms as to which CIBC and the Municipality shall agree.
5. The Notes shall be issued within one month after the day on which this
By-law is enacted, and as to both principal and interest shall be expressed
and be payable in lawful money of Canada.
The Notes totalling $377,800 shall bear interest from the date of issue at a
rate not the exceed 4.00% per annum payable in one lump sum one year
from the date of interest together with interest. These Notes shall be paid
in full no later than October 21, 2006
7. The Notes totalling $646,200 shall bear interest from the date of issue at a
rate not to exceed 5.15% per annum for a period of 10 years from the date
of issue payable semi-annually in arrears, as part of the semi-annual
instalments as set forth in the amortization schedule set forth as Schedule
"0" attached hereto and forming part of this By-Law. These Notes shall
mature no later than October 21, 2015. The total or any part thereof of the
principal due on maturity may be refinanced for a period not to exceed 5
years on such terms and conditions as may be agreed between CIBC and
the Municipality.
6.
8.
Payments in respect of principal of and interest on the Notes shall be
made only on a day on which banking institutions in Toronto, Ontario, are
not authorized or obligated by law or executive order to be closed (a
"Toronto Business Day") and if any date for payment is not a Toronto
Business Day, payment shall be made on the next following Toronto
Business Day.
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
9.
Interest shall be payable to the date of maturity of the Notes and on
default shall be payable both before and after default and judgment. Any
amounts payable by the Municipality as interest on overdue principal or
interest in respect of the Notes shall be paid out of current revenue.
10. In each year in which a payment of an instalment of combined (blended)
principal and interest becomes due, there shall be raised as part of the
general levy the amounts of principal and interest payable in each year as
set out in Schedule "0" to the extent that the amounts have not been
provided for by any other available source including other taxes or fees or
charges imposed on persons or property by a by-law of any municipality.
11. The Mayor and the Treasurer are hereby authorized to cause the Notes to
be issued, the Clerk and Treasurer are individually hereby authorized to
generally do all things and to execute all documents and other papers in
the name of the Municipality in order to carry out the issue of the Notes
and the Treasurer is authorized to affix the Municipality's municipal seal to
any of such documents and papers.
12. The proceeds realized in respect of the Notes, after providing for the
expenses related to their issue, if any, shall be apportioned and applied for
the Project and for no other purpose except as permitted by the Act.
13. That By-law No. 2005 -159 is hereby repealed.
14. This By-law shall come into full force and effect upon its final passage.
15. This By-law may be cited as the "Repeal By-law 2005 -159, CIBC
Kincardine to Inverhuron Water Supply Borrowing By-law".
READ a FIRST, SECOND and THIRD TIME and FINALLY PASSED this 5th day
of April, 2006.
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
Schedule "A"
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Approved
Amount to
Project be Financed Amount of Amount of Term of
By-Law Description Through the Debentures Debentures Years of
Issue of or Bank or Bank Debentures
Debentures Loans Loans or Bank
Or Bank Previously to be Loans
Loans Issued Issued
(1) (2) (3) (4) (5) (6)
2003-103 Construction $2,824,000 $1,800,000 $1,024,000 1 Year
2003-130 of the & 10
2004-75 Kincardine to Year
Inverhuron
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Project
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
Schedule "B"
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Specific Purpose Municipal Borrowing By-Law for Ontario
1. The Head and the Treasurer are hereby authorized on behalf of the
Municipality of Kincardine ("Municipality") to borrow by way of temporary
advances from time to time from Canadian Imperial Bank of commerce
("CIBC") a sum or sums not exceeding in the aggregate $377,800.00 to
meet expenditures made in connection with the Kincardine to Inverhuron
Water Supply (the "Project") and to give on behalf of the Municipality to
CIBC a promissory note or notes sealed with the corporate seal and
signed by the Head and Treasurer for the moneys so borrowed plus
interest at such rate and such terms as may be agreed upon from time to
time with CIBC;
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2. All sums borrowed under this By-Law, as well as all other sums borrowed
in this year and in previous years from CIBC for any or all of the purposes
mentioned in the Ontario Municipal Act, plus interest, shall be a charge
upon the whole of the revenues of the Municipality for the current year and
for all preceding years as and when such revenues are received;
3. The Treasurer is hereby authorized and directed to apply in payment of all
sums borrowed pursuant to this By-Law, plus interest, all of the moneys
hereafter collected or received either on account or realized in respect of
taxes levied for the current year and preceding years or from any other
source which may lawfully be applied for such purpose.
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
Schedule "C"
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Specific Purpose Municipal Borrowing By-Law for Ontario
1. The Head and the Treasurer are hereby authorized on behalf of the
Municipality of Kincardine ("Municipality") to borrow by way of temporary
advances from time to time from Canadian Imperial Bank of commerce
("CIBC") a sum or sums not exceeding in the aggregate $646,200.00 to
meet expenditures made in connection with the Kincardine to Inverhuron
Water Supply (the "Project") and to give on behalf of the Municipality to
CIBC a promissory note or notes sealed with the corporate seal and
signed by the Head and Treasurer for the moneys so borrowed plus
interest at such rate and such terms as may be agreed upon from time to
time with CIBC;
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2. All sums borrowed under this By-Law, as well as all other sums borrowed
in this year and in previous years from CIBC for any or all of the purposes
mentioned in the Ontario Municipal Act, plus interest, shall be a charge
upon the whole of the revenues of the Municipality for the current year and
for all preceding years as and when such revenues are received;
3. The Treasurer is hereby authorized and directed to apply in payment of all
sums borrowed pursuant to this By-Law, plus interest, all of the moneys
hereafter collected or received either on account or realized in respect of
taxes levied for the current year and preceding years or from any other
source which may lawfully be applied for such purpose.
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By-law No. 2006 - 042
CIBC Kincardine to Inverhuron Water Supply Borrowing By-law
Schedule "D"
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Date Principal Interest Payment Balance
Oct 14, 2005 $646,200.00
Apr14,2006 $14,825.38 $15,862.51 $ 30,687.89 $631,374.62
Oct 14, 2006 $15,189.30 $15498.59 $ 30,687.89 $616,185.32
Apr 14, 2007 $15,562.16 $15,125.73 $ 30,687.89 $600,623.16
Oct 14, 2007 $15,944.17 $14,743.72 $ 30,687.89 $584,678.99
Apr 14, 2008 $16,335.56 $14,352.33 $ 30,687.89 $568,343.43
Oct 14, 2008 $16,736.55 $13,951.34 $ 30,687.89 $551,606.88
e Apr 14, 2009 $17,147.39 $13,540.50 $ 30,687.89 $534,459.49
Oct 14, 2009 $17,568.32 $13,119.57 $ 30,687.89 $516,891.17
Apr14,2010 $17,999.57 $12,688.32 $ 30,687.89 $498,891.60
Oct 14, 2010 $18,441.41 $12,246.48 $ 30,687.89 $480,450.19
Apr 14, 2011 $18,894.10 $11,793.79 $ 30,687.89 $461,556.09
Oct 14, 2011 $19,357.90 $11,329.99 $ 30,687.89 $442,198.19
Apr 14, 2012 $19,833.09 $10,854.80 $ 30,687.89 $422,365.10
Oct 14, 2012 $20,319.94 $10,367.95 $ 30,687.89 $402,045.16
Apr14, 2013 $20,818.74 $ 9,869.15 $ 30,687.89 $381,226.42
e Oct 14, 2013 $21,329.78 $ 9,358.11 $ 30,687.89 $359,896.64
Apr14,2014 $21,853.37 $ 8,834.52 $ 30,687.89 $338,043.27
Oct 14, 2014 $22,389.82 $ 8,298.07 $ 30,687.89 $315,653.45
Apr14, 2015 $22,939.43 $ 7,748.46 $ 30,687.89 $292,714.02
Oct 15, 2015 $292,714.02 $ 7,185.36 $299,899.38 $ 0.00
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