HomeMy WebLinkAbout20 108 Queen St. Bridge Rehabilitation Borrowing By-law
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
NO. 2020 X 108
BEING A BY-LAW TO APPROVE THE SUBMISSION OF AN APPLICATION
TO 76;*927 26/9*:;9<,;<9. *6- 4*6-: ,79879*;276 Y724,Z
FOR THE LONG-TERM FINANCING OF CERTAIN CAPITAL WORK(S)OF
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (THE
Y5<62,28*42;?Z ;AND TO AUTHORIZE THE ENTERING INTO OF A RATE
OFFER LETTER AGREEMENT PURSUANT TO WHICH THE MUNICIPALITY
WILL ISSUE DEBENTURES TO OILC
WHEREAS the Municipal Act, 2001 >TZGXOU!" GY GSKTJKJ" ZNK c Act d! VXU\\OJKY
that a municipal power shall be exercised by by-law unless the municipality is
specifically authorized to do otherwise;
AND WHEREAS the Council of the Municipality has passed the by-law(s)
enumerated in column ('! UL BINKJ\[RK c2d GZZGINKJ NKXKZU GTJ LUXSOTM VGXZ UL ZNOY
By-RG\] c:CHEDSKE Y*Z) authorizing the capital work(s) described in column (2) of
BINKJ\[RK c2d c Capital Work(s)d! OT ZNK GSU\[TZ UL ZNK XKYVKIZO\\K KYZOSGZKJ
K^VKTJOZ\[XK YKZ U\[Z OT IUR\[ST )! UL BINKJ\[RK c2d " Y\[HPKIZ OT KGIN IGYK ZU GVVXU\\GR
by OILC of the long-term financing for such Capital Work(s) requested by the
Municipality in the Application as hereinafter defined;
AND WHEREAS before the Council of the Municipality approved the Capital
Work(s) in accordance with section 4 of Ontario Regulation 403/02 (the
c Regulation d!" ZNK 4U\[TIOR UL ZNK <\[TOIOVGROZ_ NGJ OZY CXKGY\[XKX IGRI\[RGZK GT
updated limit in respect of its then most recent annual debt and financial obligation
limit received from the Ministry of Municipal Affairs and Housing (as so updated,
ZNK c<ODARED 4ILIRZ), and, on the basis of the authorized estimated expenditure
for the Capital Work or each Capital Work, as the case may be, as set out in
column )! UL BINKJ\[RK c2d ZNK c Authorized Expenditure d LUX GT_ Y\[IN 4GVOZGR
Work), the Treasurer calculated the estimated annual amount payable in respect
of the Capital Work or each Capital Work, as the case may be, and determined
that the estimated annual amount payable in respect of the Capital Work or each
Capital Work, as the case may be, did not cause the Municipality to exceed the
Updated Limit, and accordingly the approval of the Local Planning Appeal Tribunal
Page 2 of 4
Queen St. Bridge Rehabilitation Borrowing By-law
By-law No. 2020 a108
pursuant to the Regulation, was not required before any such Capital Work was
authorized by the Council of the Municipality;
AND WHEREAS subsection 401(1) of 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 the Act also provides that a municipality shall authorize long-term
borrowing by the issue of debentures or through another municipality under
section403 or 404 of the Act;
AND WHEREAS OILC has invited Ontario municipalities desirous of obtaining
long-term debt financing in order to meet capital expenditures incurred on or after
the year that is five years prior to the year of an applicationin connection with
eligible capital works to make application to OILC for such financing by completing
and submitting an application in the form provided by OILC;
AND WHEREAS the Municipality has completed and submitted or is in the process
of submitting an application to OILC, as the case may be to request financing for
the Capital Work(s) by way of long-term borrowing through the issue of debentures
to OILC, substantially in ZNK LUXS UL BINKJ\[RK c3d NKXKZU GTJ LUXSOTM VGXZ UL ZNOY
By-law ZNK c Application d!;
AND WHEREAS OILC has accepted and has approved or will notify the
Municipality only if it accepts and approves the Application, as the case may be;
AND WHEREAS at least five (5) business days prior to the passing of the
debenture by-law in connection with the issue of Debentures as defined below,
OILC will provide the Municipality with arate offer letter agreementsubstantially in
the form as provided to the Municipality on or prior to the date of this By-law (the
c Rate Offer Letter Agreement d!1
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF KINCARDINE ENACTS AS FOLLOWS:
1. The Council of the Municipality hereby confirms, ratifies and approves the
execution by the Treasurerof the Application and the submission by such
authorized official of the Application, duly executed by such authorized
official, to OILC for the long-term financing of the Capital Work(s) in the
maximum principal amount of $2,750,000, with such changes thereon as
such authorized officialmay hereafter, approve such execution and delivery
to be conclusive evidence of such approval.
2. The Mayorand the Treasurer are hereby authorized to execute and deliver
for and on behalf of the Municipality the Rate OfferLetter Agreement under
the authority of this By-law in respect of the Capital Work(s) on such terms
and conditions as such authorized officials may approve, such execution
and delivery to be conclusive evidence of such approval.
Page 3 of 4
Queen St. Bridge Rehabilitation Borrowing By-law
By-law No. 2020 a108
3. Subject to the terms and conditions of the Rate Offer Letter Agreement, the
Mayor and the Treasurer are hereby authorized to long-term borrow for the
Capital Work(s) and to issue debentures to OILC on the terms and
conditions provided in the Rate Offer Letter Agreement ZNK c Debentures d!1
provided that the principal amount of the Debentures issued in respect of
the Capital Work or of each Capital Work, as the case may be, does not
exceed the Authorized Expenditure for such Capital Work and does not
K^IKKJ ZNK XKRGZKJ RUGT GSU\[TZ YKZ U\[Z OT IUR\[ST *! UL BINKJ\[RK c2d OT
respect of such Capital Work.
4. In accordance with the provisions of section 25 of the Ontario Infrastructure
and Lands Corporation Act, 2011, as amended from time to time hereafter,
the Municipality is hereby authorized to agree in writing with OILC that the
Minister of Finance is entitled, without notice to the Municipality, to deduct
from money appropriated by the Legislative Assembly of Ontario for
payment to the Municipality, amounts not exceeding the amounts that the
Municipality fails to pay to OILC on account of any unpaid indebtedness of
the Municipality to OILC under the 5KHKTZ\[XKY ZNK c Obligations d! and to
pay such amounts to OILC from the Consolidated Revenue Fund.
5. For the purposes of meeting the Obligations, the Municipality shall provide
for raising in each year as part of the general levy, the amounts of principal
and interest payable in each year under the Debentures issued pursuant to
the Rate Offer Letter Agreement, 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.
6. (a) The Mayor and the Treasurer are hereby authorized to execute and
deliver the Rate Offer Letter Agreement, and to issue the
Debentures, one or more of the Clerk and the Treasurer are hereby
authorized to generally do all things and to execute all other
documents and papers in the name of the Municipality in order to
perform the terms and conditions that apply to the Municipality as set
out in the Rate Offer Letter Agreement and to perform the Obligations
of the Municipality under the Debentures, and the Treasurer is
G\[ZNUXO`KJ ZU GLLO^ ZNK <\[TOIOVGROZ_bY S\[TOIOVGR YKGR ZU GT_ Y\[IN
documents and papers.
(b) The money realized in respect of the Debentures, including any
premium, and any earnings derived from the investment of that
money, after providing for the expenses related to the issue of the
Debentures, if any, shall be apportioned and applied to the
respective Capital Work and to no other purpose except as permitted
by the Act.
7. This By-law takes effect on the day of passing.
(*-,+3/, 6$8 20 %5-law 2020 - 108
(1) (2) (3) (4)
By-Law NumberDescription of Capital Work Estimated Loan
Expenditure Amount
Queen Street Bridge
2020-015$2,950,000 $2,750,000
Rehabilitation
Page 4 of 4
Queen St. Bridge Rehabilitation Borrowing By-law
By-law No. 2020 a 108
8. That this By-RG\] SG_ HK IOZKJ GY ZNK c@ueen St. Bridge Rehabilitation
Borrowing By-RG\]d$
th
READ a FIRST and SECOND TIME this 5 day of August, 2020.
th
READ a THIRD TIME and FINALLY PASSED this 5 day of August, 2020.
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Mayor Clerk
EXHIBIT "A"
PENDING LITIGATION
"NONE"
Document#Al.i. (TB-General)
TREASURER'S CERTIFICATE RE LITIGATION
Single-tier/County/Region's purposes
FA* 1520
Program Year:2020 1.6
CERTIFICATE OF TREASURER REGARDING LITIGATION
(TEMPORARY BORROWING)
IN THE MATTER OF an application of The Corporation of the
Municipality of Kincardine (the "Municipality") No1S2 '(the
"Application") to Ontario Infrastructure and Lands Corporation ("OILC")
for temporary and long term project financing in the maximum aggregate
principal amount of $2,750,000 in respect of the capital work(s) more
particularly described in the Application (individually a "Capital Work"
and collectively the "Capital Works")
TO: OILC
This Certificate is delivered as an attachment to the Application under paragraph
H of the Application.
I, Roxana Baumann, the Treasurer of the Municipality, certify for and on behalf of
the Municipality as follows:
1. Except as summarized in Exhibit "A" hereto, there is no litigation or judicial or
administrative proceeding of any kind now existing, pending or threatened that in
any way seeks to restrain, enjoin, delay or otherwise adversely affect the
commencement or completion of the Capital Work or that would adversely affect
or substantially impair the Municipality's ability to meet its debt obligations as they
generally come due or that in any manner questions the proceedings and authority
under which the Capital Work or the borrowings applied for in the Application have
been or will be authorized, or the capacity of the officers of the Municipality
authorized in that behalf thereunder.
2. The Municipality is not now subject to any restructuring order under Part V of the
Municipal Act, 2001; accordingly, no approval of the Capital Work, the Application
or the borrowings applied for in the Application is required to be given by any
transition board or commission appointed in respect of the restructuring of the
Municipality.
DATED August 10, 2020.
Roxana Baumann, Treasurer
The Corporation of the Municipality of
Kincardine