HomeMy WebLinkAbout03 103 omeifa borrowing water
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lHE CORPORATION OF lHE MUNICIPALITY OF KINC
AME IDED/Rfrr~/"'\;;I:D BY
Bytþ.' ¡.:o. ,;zoo 4-7 Õ
o~
NO. 2003 . 103
A BY-LAW TO AUTHORIZE THE CONSTRUCTION OF THE
KINCARDINE TO INVERHURON WATER SUPPL (THE
CAPITAL WORKS) BY THE CORPORATION 0 THE
MUNICIPALITY OF KINCARDINE (THE "MUNICIP ITY"); TO
AUTHORIZE SUBMITTING AN APPLICATION TO TH ONTARIO
MUNICIPAL ECONOMIC INFRASTRUCTURE FIN NCING
AUTHORITY ("OMEIFA") FOR FINANCING SUCH APITAL
WORKS; TO AUTHORIZE TEMPORARY BORRO ING TO
MEET EXPENDITURES IN CONNECTION WITH SUC WORKS;
AND TO AUTHORIZE LONG TERM BORROWING OR SUCH
WORKS THROUGH THE ISSUE OF DEBENT RES
WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the· t") provides that a
municipal power shall be exercised by by-law unless the munici ality is specifically
authorized to do otherwise;
AND WHEREAS it is now deemed to be expedient to authorize for th municipal purposes
of the Municipality the new capital works known as the Kincardine 0 Inverhuron Water
Supply Project (the Project) in the amount of the respective esti ted expenditure of
$3,365,000 subject in each case to approval by OMEIFA ofthe finan ing for such Project
that will be requested by the Municipality in the Application as herei after described;
AND WHEREAS in accordance with section 4 of Ontario Regulatio 403/02, the Council
of the Municipality has had its Treasurer update its most recent ann al debt and financial
obligation limit received from the Ministry of Municipal Affairs and Ho sing (as so updated,
the "Updated Limit"), and, on the basis of the authorized expenditur for the Project in the
amount of $3,365,000 (the Authorized Expenditure), the Treasur r has calculated the
estimated annual amount payable in respect of the Project (the ·Pr Ject Limit") and has
determined that the Project Limit would not exceed the Updated Lim' ,and accordingly the
approval of the Ontario Municipal Board under the Ontario Municipa Board Act (Ontario),
as amended, is not required before any such Project is authorized y Council;
AND WHEREAS subsection 405(1) of the Act provides that a muni ipality may authorize
temporary borrowing to meet expenditures made in connection with work to be financed
in whole or in part by the issue of debentures if, I
(a) the municipality is an upper-tier municipality, a lowe -tier municipality in a
county or a single-tier municipality and it has a proved the issue of
debentures for the work;
(b) the municipality is a lower-tier municipality in a regio al municipality and it
has approved the work and the upper-tier municip lity has approved the
issue of debentures for the work; or
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By-Law 2003-103 I
Kincardine to Inverhuron Water Supply Construction Autho~ization
P~e2~4 I
(c) the municipality has approved the issue of deben~ures for another
municipality or a school board under section 404;
AND WHEREAS subsection 405(4) of the Act provides that a munici~lity may delegate
the power set out in subsection 405(1) to the head of council, to the trþasurer, or to both
of them; .
,
AND WHEREAS subsection 401 (1) of the Act provides that a muni~'pality may incur a
debt for municipal purposes, whether by borrowing money or in any 0 her way, and may
issue debentures and prescribed financial instruments and enter p escribed financial
agreements for or in relation to the debt;
,
AND WHEREAS the Act also provides that a municipality shall a~thorize long term
borrowing by the issue of debentures or through another municipality urder section 403 or
404 of the Act;
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AND WHEREAS OMEIFA has invited Ontario municipalities de~'rous of obtaining
temporary and long term debt financing in order to meet capital expend tures incurred after
December 31, 2002 in connection with eligible capital projects to ake application to
OMEIFA for such financing by completing and submitting an appliþation on the form
provided by OMEIFA (the "Application");
,
AND WHEREAS it is now deemed expedient for the Municipality to sJbmit an Application
to OMEIFA to request financing for the Projects by way of long term borrowing through the
issue of debentures to OMEIFA and by way oftemporary borrowing from OMEIFA pending
the issue of such debentures and to approve the Projects; .
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NOW THEREFORE the Council of The Corporation of the Municipality ~f Kincardine enacts
as follows: .
1, The Treasurer is hereby authorized to complete or cause to! be completed and
submit or cause to be submitted to OMEIFA an Application bylthe Municipality for
the financing of the Projects in the maximum aggregate principal amount of
$1,800,000 substantially in the form ~ Schedule "A" hereto an~ forming part of this
By-law, with such changes thereon as such authorized offjci~1 shall approve, the
submission of such Application by such authorized official to be þonclusive evidence
of such approval. '
The acceptance of the Application by OMEIFA and the approval by OMEIFA in
such Application of the financing requested therein in respect !of the Eligible
Category (as such term is used in the Application) to which th~ Project belongs
will be hereinafter referred to as "OMEIFA Approval", .
2,
3, Subject to and conditional upon OMEIFA approval:
(a)
Construction of the Kincardine to Inverhuron Water Suþply (the Project) in
the amount of the respective estimated Authorized Expenditure of
$3,365,000 is hereby approved and authorized; .
(b)
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The Mayor and the Treasurer are hereby authorized tq conclude contracts
on behalf of the Municipality for the construction of th~ Project in
accordance with the Municipality's usual protocol; I
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where applicable, the Engineering firm retained by th~MuniciPality for the
design of the of the Project, will forthwith make such pans, profiles and
specifications and fumish such information as in the 0 inion of the
Engineer is necessary for the construction of the Projct; and
(c)
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By-Law 2003-103
Kincardine to Inverhuron Water Supply Construction Authori ation
Page 3 of 4
where applicable, the construction of the Project shall be ,carried on and
executed under the superintendence and according to th~ direction and
orders of such Engineer,
Upon approval of the Application by OMEIFA, the Mayor and the Treasurer are
hereby authorized to negotiate and enter into, execute and deliver for and on behalf
of the Municipality a financing agreement (a "Fin~ncing Agreem~m~") with OMEIFA
that provides for temporary and long term borrowing from OMEIFIA In respect of the
Project on such terms and conditions as such authorized officIals may approve,
such execution and delivery to be conclusive evidence of such þpproval.
Subject to and conditional upon OMEIFA Approval, the Mayor an~ the Treasurer are
hereby authorized, pending the substantial completion of a Proj~ct or as otherwise
agreed with OMEIFA, to make temporary borrowings pursuant tq section 405 of the
Act in respect of the Project, on the terms and conditionsprovidþd in the Financing
Agreement and on such other terms and conditions as such autHorized officials may
agree, and to sign such evidence of indebtedness as OMEIFA may require (a
"Note"); and the Mayor and the Treasurer are authorized to sig~ such certifications
as OMEIFA may require in connection with such borrowing, in respect of the
Project; provided that the amount of borrowings allocated to t~e Project does not
exceed the Authorized Expenditure for the Project. '
(d)
5,
6,
Subject to and conditional upon OMEIFA Approval, and SUbjr to the terms and
conditions of the Financing Agreement and such other term and conditions as
OMEIFA may otherwise require, the Mayor and the Treasurer a hereby authorized
to enter into long term borrowing in respect of the Projects and ~o issue debentures
to OMEIFA on the terms and conditions provided in the Finan$ing Agreement and
on such other terms and conditions as such authorized ~fficials may agree
("Debentures"); provided that the principal amount of such D~bentures issued in
respect of the Project does not exceed the Authorized Expen~iture for the Project,
In accordance with the provisions of section 18 of the Ontario ¡Municipal Economic
Infrastructure Financing Act, 2002 (Ontario), as security for !the payment by the
Municipality of any indebtedness of the Municipality to OMEIFv\ incurred under the
Note or any Debentures, the Municipality is hereby authoriz~d to agree in writing
with OMEIFA that the Minister of Finance is entitled to ~educt from money
appropriated by the Legislative Assembly of Ontario for paymert to the Municipality,
or from money appropriated by the Assembly for payment *' the Municipality in
respect of specified matters, amounts not exceeding th~ amounts that the
Municipality fails to pay to OMEIFA on account of the outst~nding indebtedness
evidenced by the Note or any Debentures issued by the Mu~icipality to OMEIFA,
and to pay such amounts to OMEIFA. '
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8, Subject to and conditional upon OMEIFA Approval, for pur¡j>oses of meeting the
obligations of the Municipality in respect of the Note and any Debentures, the
Municipality shall provide for raising in each year as part oflthe general levy, the
amounts of principal and interest payable in each year un4er the Note and any
outstanding Debenture, to the extent that the amounts have Inot 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,
9.
(a)
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Subject to and conditional upon OMEIFA Approval, the Mayor and the
Treasurer are hereby authorized to execute and deliv~r the Note, the Mayor
and t~e Tr~asurer are hereby authorized to enter int9, execute and deliver
the Financing Agreement and to cause Debentures tþ be issued, the Clerk
and Treasurer are severally hereby authorized to gen~rally do all things and
to execute all other documents and papers in the na~e ~ the Municipality in
order to perform the obligations of the Municipali under the Financing
Agreement and to carry out the issuance of the Not and Debentures, and
the Treasurer is authorized to affix the Municipality' municipal seal to any
such documents and papers. '
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By-Law 2003-103
Kincardine to Inverhuron Water Supply Construction Auth rization
Page 4 of 4
(b) The proceeds realized in respect of the Note and Debe~tures, after
providing for the expenses related to their issue, if any, ~hall be
apportioned and applied for the respective Projects and! for no other
purpose except as permitted by the Act, !
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10, The by-law shall come into full force and effect upon its final p¡j!ssage.
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11, This By-law may be cited as the "Kincardine to Inverhu~on Water Supply
Construction Authorization and Borrowing By-Law", '
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READ a FIRST, SECOND and a THIRD time and DEEMED TO BE P~SSED this 9th day
of July, 2003, i'
~'I-:
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~'!"~
-'~'"
, Clerk
Schedule "A"
to By-Law Number 2003 - 103
SCHEDULE "A" TO BY-LAW RO. 2003-103
KIlIICAllDllIE TO IRVEJIHIIIION WATER SUPPLY CONSTRUCTION AUTHORIZATION
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
2003 Loan Application
Date: 30-Jun-03
A.GENFRALINFORMATION
Name o~Municipality: Kincardine M
i
Address! 1475 5th Cone,. RR #5
Kincardine
CodeMMAH:
MUNID:
41625
41020
N2Z 2X6
Qu",*ions repnling the information contained in the application form should be addressed to:
Na..e:
Tel"hone:
FaxiNo.:
HIIail:
Brenda
1-519-396-3468
1-519-396-8288
treasurer@kincardine.net
French
,_i~ Application form must be siped by an alltloorized oflldal
N~me of Clerk or Clerklfreasurer: Brenda French
Telephone: 1-519-396-3468
SiKl'ature:
~. ~4.- ~ 'fí;'4-~
Date:
-J-. I 3" :z.oø..3
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B. B~K ACCOUNT INFORMATION - to be completed by borrowing Municipality
Acc"pnt Information for Direct Deposit:
Na~ of Bank: CIBC
Branch Transit #: 05252
Street Address: 822 Queen Street
Ace't. #: 68-00114
Kincardine
N2Z 2Y6
~~nt Information for Direct Withdrawal (if different from above account):
.... of Bank:
Streo¡t Address:
Branch Transit #:
Ace't.#:
... PI_ attach a 'Void Cheque' cornapoadlng to the above mentioned accounts···
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
C. PROJECT INFORMATION
u.,œr the Eligible Category column, indicate one (or more if applicable) of the following categories related to the
ApI'pject: Clean Water Infrastructure, Sewage Treatment Facilities, Municipal Roads, Municipal Bridges, Public Transit,
~aste Management Infrastructure and the borrowing Municipality,
FClrthe financing tenn, please note that the length of the tam cannot exceed the useful life of the project - max. 40 year
u~der sub-section 408 (3) of the Municipal Act.
Mu~icipality Name:
Kincardine M
ProjectlD
EIJ&ible Category
Clean Water Infrastructure
BeneOting Municipality
(may be 100"' tban one)
Kincardine M
Total OMEIF A
Borrowing
Requested ($)
$1,800,000,00
.
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ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
D. T$MS OF FINANCING (Short Term)
OME/F A provides both short-term borrowing (interim financing while the project is under construction) and long-term borrowing
(fimllfing when the project is complete). Please provide information in either one or both sections, based on your borrowing needs,
li",pality Name: Kineardlne M
TEMPORARY BORROWING FOR WORKS (INTERIM FINANCING)
Øeneflting Municipality
,
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Eligible Category
Estimated
Construction
Dates
Start
Finish
Year
Months
Estimated
Drawdcnm Amount
,
. ~neliting Municipality
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1 Eligible Category
Estimated
Construction
Dates
Start
Finish
Year
Months
Estimated
Drawdown Amount
Kincardine M
Clean Water Intiastructure
15-Aug..o3
31-Dec-03
2003
September
$530,000,00
Kincardine M
Clean Water Inftastructure
15-Aug..o3
31-Dec-03
2003
October
$540,000,00
Qeneflting Municipality Kincardine M
Eligible Category Clean Water Inftastructure
. Estimated Start IS-Aug..o3
Construction
Dateo Finish 3]-Dec-03
Year 2003
Months November
Estimated $365,000.00
Drawdown Amount
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
Øenef'di"l Munidpality Kincardine M
. EII¡ibIe Category Clean Water Inftastructure
Eoti..ated I SOrt 15-Aug-03
COIIItnIction
o.tes Finisb 31-Dec-03
Var 2003
Months December
Estimated $365.000.00
Drawdown Amount
D. LONG TERM FINANCING
For th¡. financing tenn, please note that the length of term cannot exceed the useful life of tbe project, or a maximum of 40 years under
sub-~on 408 (3) oflbe Municipal Act
Mu";clpality Name: Kincardine M
.e'tinll Municlpalality: Kincardine M
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Eliglt Ie Cateflory Clean Water Infrastructure
Amo~nt of Loan ($) $1,800,000,00
Date ~ben Funds are Required
Req.ted Term of Loan (yars)
Type~fLoan
(Am~ng or SeI'ÙlI)
I-Jan-04
IS
Amortizing
.
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
E. PROJECT FINANCING
···'f applying on behalf of one or more municipalities, complete separate copies of the next three pages for each additional
muajicipality ,
.
MUNICIPALITY OF:
Kine.rdine
Total combined project costs,
Proposed OMElF A loan amount.
Difference between total combined project costs and OMEIF A loan amount,
$3,365,000,00 I
$],800,000.00 I
$],565,000.00 I
~URCES OF FINANCING:
Revenue Fund Contributiona:
Taxation
$0,001
so,oo I
SO.OO I
User Fees and Service Charges
Sub-Total (ineludl... other Revenue Fund Sources)
Reserves & R....rv... Fuads Contribution.:
.
Reserves & Reserve Funds (excluding Development Charges)
Development Charges Reserve Funds
Sub-Total
$0,00 I
$0.00 I
SO.OO I
Grants:
Provincial Grants
Federal Grants
Sub-Total
$648,500,00 I
$98,500.00 I
Other FinanciDI!!':
Please specitÿ:
Please specitÿ:
Please specitÿ:
Sub-Total
Internal loan/municipal contribution
$8] 8.000,00 I
.
$818,000.00 I
you plan to repay a portion of the OMEIF A loan through water or sewer charges. please provide a brief description of
w you plan to do this?:
above project represents an expansion of watcnnaillS and distribution systems from a current water treatment system. The
o IF A lIOn will be repaid by collecting a proportionate amount from the new benefiting ratepayers on their taxes as a local
i provement charge for the same period of time as the loan. This will ensure that only these ratepayers bear these costs,
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
F: FEDERAL AND PROVINCIAL GRANTS
~nld...6ty
Kincardine
.E¥&ible Category:
NI'me of Funding Program
Clean Water Inftastrw:ture
OSTAR
~..tus of Application
Applied for Funding I Yesl
Funding Approved I No
Allocation Received I Nol
To"l Project Cost I $295,500,00 I
Allocation of Funding
Fedeml Contribution I $98,500.00 I
Provincial Contribution $98,500.00
Municipal Contribution I $98,500.00 I
Snbto1al I $295,500.00 I
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PROGRAM AMOUNT
Other Provincial Funding Parks Ontario I $550,000,00
Subtotalll $550,HO,OO I
G, QEOT SUMMARY
I 2001 I I 2002 I I 2003
To..IIDebt, as oUan I: I $1,040,497,00 I I $1,949,650,00 I I $1,712,440,00 I
,
New ~ Foreeast: $1,072,500,00 I I $12,900.00 I I $1,830,000,00 I
Debt Jletired: I $163,347,00 I I $250,110,00 I I $255,899,00 I
TO..IIDebt, as of Dee 31 I $1,949,650.00 I I $1,712,440,00 I I $3,286,541.00 I
-I I I I I
! 2004 2105 2006
i $3,286,541.00 I $2,952,376,00 I I $2,609,134,00 I
TotaIIDebt, as oUan I:
New ~t Forecast: $30,000.00 I $30,000,00 I I $30,000,00 I
Debt tetired: $364,165.00 I $373,242,00 I I $266,955,00 I
Total'Debt,.s ofDec 31 $2,952,376.00 I $2,609,134,00 I I $2,372,179,00 I
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
Gl. DEBT SUMMARY FOR BENEFITING MUNICIPALITY
M.~peUty Name:
.
T~I Debt,.. of Jan I:
N~ Debt Foreast:
~ Retired:
T.¡taI Debt, as of Dee 31
TClÞI Debt, as oUan I:
N'" Debt Forecast:
,
oft Retired:
T~IDebt,asofDee31
Kincardine
1801 I 1801 2803
$1,040,497.00 I I $1,949,650,00 I $1,712,440,00 I
$1,072,500.00 I I $12,900.00 I $1,830,000,00 I
$163,347,00 I I $250,110.00 I $255,899,00 I
$1,949,650,00 I I $1,712,440,00 I $3,286,541.00 I
1014 1005 2006 I
$3,286,541.00 I $2,952,376,00 I $2,609,134,00 I
$30,000.00 I $30,000,00 I $30,000,00 I
$364,165,00 I $373,242,00 I $266,955,00 I
$2,952,376.00 I $2,609,134,00 I $2,372,179,00 I
.IjnGATION
Is ~re any litigation threatened or existing which would affect any projects or substantially impair the applicant's ability to pay
deb1l service costs on its general obligation indebtedness? Please indicate yes or no, If yes, please attach a summary of such
liti8flion including its current status,
: ¡NO I
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I, N0f'i-REPA YMENT OF LOANS OR DEBENTURES
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In tIje last 10 years, have you ever failed to make a loan or
de~re repayment on time to any lender, including the
Pro~incia1 Government? If yes, please provide details,
INO
J, PRþVINCIAL GRANTS AS SECURITY
PI,.., note: Section 18 of the Ontario Municipal Economic lrifrastructure Authority Act, ]00] states:
as 'ty for the payment by an entity ofan amount that the entity has agreed to pay to the Authority or a related entity, as
deli in subsection (3), on account of the indebtedness of the entity to the Authority or related entity, the entity may agree in
wri ng with the Authority or related entity that the Minister is entitled to deduct from money appropriated by the Assembly for
pe ent to the entity, or from money appropriated by the Assembly for payment to the entity in respect ofspecifiOO matters,
amcfmts not exceeding the amounts that the entity fails to pay to the Authority or related entity on account of the indebtedness,
2OOf' c. 22, Schoo, A, s, 18 (1 )."
ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
K. ATTACHMENTS (P1eue indicate by a eheekmark those boxes which are applicable):
MUJ!iICIPALlTY: Kincardine
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GE!'tERAL
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V.. Certified copy of by-law authorizing the project bolTOwing
V.. Certified copy of by-law authorizing CIeri< or ClerklTreasurer to apply for a loan,
V", Certified copy of project bylaw and environmental assessment
V'" Ceritificate of no litigation
OM8 approval if exceeding debt repayment limit
'" Updated Annual Repayment Calculation (to incorporate proposed OMEIFA loan)
'" Detailed Project Infonnation which would nonnally be prepared to support a loan
No I Other
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FO"- WATER, SEWER AND WASTE MANAGEMENT PROJECfS
I~s I An explanation of the public health and safety concerns addressed by the proposed project
using a Project Evaluation Schedule,
.1' es I Copies of any supporting studies or investigations, or copies of the Environmental Study
Report, if required under the Environmental Assessment Act,
ro~ 'r"
o Bridge Inspection Report
, Identification of posted bridges
FO$ TRANSIT
~ Council Resolution! Approval
Any supporting reports. if applicable
o Implementation schedule
F~ ROîDS
o Engineer design report
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ONTARIO MUNICIPAL ECONOMIC INFRASTRUCTURE FINANCING AUTHORITY
L, FINANCIAL PROJECTIONS
· ~et Revenue Fund Reveuues
1et Debt Cb8rges
umber of Households
opulation
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2002 I I
$9,913,000,00 I I
$271,169,00 I I
5,3291 I
]0,9481 I
i
~et Revenue Fuud Revenues
zoes I I
$] 0,415,000,00 I I
$418,]51.00 I I
6,0631 I
]2,4581 I
"'et Debt Charges
"'umber of Households
I opulation
2003 II
$13,786,000,00 I I
$259,852.00 I I
5,56311
11,430 II
2004
$]0,210,000,00 I
$417,657,00 I
5,8081
]],9131
2006 I
$]0,625,000.00 I
$296,670,00 I
6,330 I
13,005 I
,,"s the Ontario Municipal Economic Infrastructure Financing Authority (OMEIF A) is subject to the provisions
Within the Freedom of l'!formation and Protection of lndividwl Privacy Ad, R,S,O, ]990, c, F, 31, infonnation
'ned within this loan application may be subject to disclosure and access by a member or members of the
eneral public,
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