HomeMy WebLinkAbout18 129 The Internal Borrowing By-law for the Servicing of OPF Lands THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
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BY-LAW
NO. 2018 - 129
BEING A BY-LAW TO AUTHORIZE THE INTERNAL BORROWING IN THE
MAXIMUM PRINCIPAL AMOUNT OF $3,565,505 TOWARDS THE CONSTRUCTION
COSTS OF SERVICING THE BUSINESS PARK ON OPF LANDS
WHEREAS Council passed Resolution#06/20/18-03 authorizing the funding model for the
• Servicing Costs of New Development on OPF Lands (the"Project"),which includes internal
borrowing from reserve funds;
AND WHEREAS the Municipality is in the process of undertaking an Area Specific
Development Charges (ASDC) Background Study with the intent of implementing an ASDC
By-law which would be used to repay the internal debt;
AND WHEREAS Debt Management Policy GG.2.23 adopted on June 14, 2017 requires all
internal borrowing to be authorized by by-law passed by Council and sets out the amount,
interest, term, and specific reserve fund from which the loan is made;
NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine
ENACTS as follows:
1. The Corporation of the Municipality of Kincardine approve the internal borrowing of
funds from the Sewer Reserve Fund 67 and Water Reserve Fund 68 for the
financing of the Project up to the maximum aggregate principal amount of Three-
Million Five-Hundred and Sixty-Five Thousand, Five-Hundred and Five Dollars
($3,565,505) per Schedule "B" attached hereto and forming part of this By-law.
410 2. The annual debt payments shall be funded by future Area Specific Development
Charges imposed on the lands.
3. The interest rate shall be equivalent to the rate earned in the Water Reserve Fund
68 and Sewer Reserve Fund 67.
4. The borrowing term shall be no more than 10 years.
5. Repayment term to commence once all Project costs have been incurred and the
Project is complete.
6. This by-law shall come into full force and effect at the time of its passing.
7. This by-law may be cited as the "The Internal Borrowing By-law for the Servicing
of OPF Lands".
READ a FIRST and SECOND TIME this 7th day of November, 2018
• READ a THIRD TIME and FINALLY PASSED this 7th day of November, 2018.
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Mayor Clerk
Page 12
The Internal Borrowing By-law for the Servicing of OPF Lands
By-law No. 2018 - 129
•
Schedule "A"
to By-Law No. 2018 -
(1) Description of Capital Work (2) Estimated Expenditure (3) Internal Loan Amount
Servicing the Business Park on $6,199,127 $3,565,505
OPF Lands
•
•
•
Page 13
The Internal Borrowing By-law for the Servicing of OPF Lands
By-law No. 2018 - 129
III Schedule "B"
Repayment Schedule
Principal Amount $ 3,565,505
Annual Interest Rate 2.10 %
Loan Term (Year) 10
Debenture Date 01/01/2019
(mm/dd/yyyy)
Maturity Date (mm/dd/yyyy) 01/01/2029
Payment Frequency Semi Annual
Loan Type Amortizing
Oki Interest Prii. _
0 07/01/2019 $ .,L,.-J t , , , . .:.. t, '''' ,, d.L,,_
198,580 $x161,142 $ 37,438 $ 3,404,363
01/01/2020 $ 198,580 $ 162,834 $ 35,746 $ 3,241,529
07/01/2020 $ 198,580 $ 164,544 $ 34,036 $ 3,076,985
01/01/2021 $ 198,580 $ 166,271 $ 32,308 $ 2,910,714
07/01/2021 $ 198,580 $ 168,017 $ 30,563 $ 2,742,697
01/01/2022 $ 198,580 $ 169,781 $ 28,798 $ 2,572,915
07/01/2022 $ 198,580 $ 171,564 $ 27,016 $ 2,401,351
01/01/2023 $ 198,580 $ 173,366 $ 25,214 $ 2,227,986
07/01/2023 $ 198,580 $ 175,186 $ 23,394 $ 2,052,800
01/01/2024 $ 198,580 $ 177,025 $ 21,554 $ 1,875,774
07/01/2024 $ 198,580 $ 178,884 $ 19,696 $ 1,696,890
01/01/2025 $ 198,580 $ 180,762 $ 17,817 $ 1,516,128
07/01/2025 $ 198,580 $ 182,660 $ 15,919 $ 1,333,468
01/01/2026 $ 198,580 $ 184,578 $ 14,001 $ 1,148,889
07/01/2026 $ 198,580 $ 186,516 $ 12,063 $ 962,373
01/01/2027 $ 198,580 $ 188,475 $ 10,105 $ 773,898
07/01/2027 $ 198,580 $ 190,454 $ 8,126 $ 583,444
• 01/01/2028 $ 198,580 $ 192,454 $ 6,126 $ 390,991
07/01/2028 $ 198,580 $ 194,474 $4,105 $ 196,516
01/01/2029 $ 198,580 $ 196,516 $ 2,063 $ 00
$ 3,971,595 $ 3,565,505 $406,090
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