3347 To authorize certain capital works of the Corporation of the Town of Tillsonburg (the lower-tier municipality)Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
THE CORPORATION OF THE TOWN OF
BY-LAW NO 3347
A BY-LAW TO AUTHORIZE CERTAIN CAPITAL WORKS OF THE
CORPORATION OF THE TOWN OF TILLSONBURG (THE "LOWER -TIER
MUNICIPALITY"); TO AUTHORIZE THE SUBMISSION OF AN
APPLICATION TO THE ONTARIO INFRASTRUCTURE PROJECTS
CORPORATION ("OIPC") FOR FINANCING SUCH WORKS AND
CERTAIN OTHER ONGOING WORKS; TO AUTHORIZE TEMPORARY
BORROWING FROM OIPC TO MEET EXPENDITURES MADE IN
CONNECTION WITH SUCH WORKS; AND TO AUTHORIZE LONG TERM
BORROWING FOR SUCH WORKS THROUGH THE ISSUE OF
DEBENTURES BY THE COUNTY OF OXFORD (THE "UPPER -TIER
MUNICIPALITY") TO OIPC
WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the "Act") provides 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 Lower -tier Municipality has passed the by-laws enumerated in
column (1) of Schedule "A" attached hereto and forming part of this By-law ("Schedule "A")
authorizing the ongoing capital works described in column (2) of Schedule "A" (individually, a
"Project", collectively, the "Projects") in the amount of the respective estimated expenditure set out
in column (3) of Schedule "A";
AND WHEREAS before the Council of the Lower -tier Municipality approved each Project, in
accordance with section 4 of Ontario Regulation 403/02, the Council of the Lower -tier Municipality
had its Treasurer update its most recent annual debt and financial obligation limit received from the
Ministry of Municipal Affairs and Housing (as so updated, the "Prior Updated Limit"), and, on the
basis of the authorized expenditure for each Project as set out in column (3) of Schedule "A"
(referred to hereinafter as the "Authorized Expenditure" for each such Project) the Treasurer
calculated the estimated annual amount payable in respect of each Project and determined that the
estimated annual amount payable in respect of each Project does not exceed the Prior Updated
Limit, and accordingly the approval of the Ontario Municipal Board under the Ontario Municipal
Board Act (Ontario), as amended, was not required before any such Project was authorized by
Council;
AND WHEREAS subsection 405(1) of the Act provides that a municipality may authorize temporary
borrowing to meet expenditures made in connection with a work to be financed in whole or in part
by the issue of debentures if,
(a) the municipality is an upper -tier municipality, alower-tier municipality in a county or
a single -tier municipality and it has approved the issue of debentures for the work;
(b) the municipality is a lower -tier municipality in a regional municipality and it has
approved the work and the upper -tier municipality has approved the issue of
debentures for the work; or
(c) the municipality has approved the issue of debentures for another municipality or a
school board under section 404;
_ 2 _ Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
AND WHEREAS subsection 405(4) of the Act provides that a municipality may delegate the power
set out in subsection 405(1) to the head of council, to the treasurer, or to both of them;
AND WHEREAS subsection 403(1) of the Act provides that a by-law of an upper -tier municipality
authorizing the issuing of debentures for the purposes or joint purposes of one or more of its lower -
tier municipalities may require those lower -tier municipalities to make payments in each year to the
upper -tier municipality in the amounts and on the dates specified in the by-law;
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 subsection 401(3) of the Act provides that a lower -tier municipality in a regional
municipality does not have the power to issue debentures and accordingly the Lower -tier
Municipality intends that the Upper -tier Municipality will issue debentures in respect of the Projects
and will request that the Upper -tier Municipality do so;
AND WHEREAS the Act also provides that a municipality shall authorize long term borrowing by the
issue of debentures or through another municipality under section 403 or 404 of the Act and
subsection 403(7) of the Act provides that all debentures issued under a by-law passed by an
upper -tier municipality under section 403 are direct, joint and several obligations of the upper -tier
municipality and its lower -tier municipalities,
AND WHEREAS OIPC has invited Ontario municipalities desirous of obtaining temporary and long
term debt financing in order to meet capital expenditures incurred after December 31, 2003 in
connection with eligible capital projects to make application to OIPC for such financing by
completing and submitting an application in the form provided by OIPC;
AND WHEREAS the Lower -tier Municipality requested the Upper -tier Municipality to issue
debentures for the Projects and in this connection the Upper -tier Municipality and the Lower -tier
Municipality submitted an Application (hereinafter the "Application") to OIPC to request financing
in order to meet capital expenditures incurred after December 31, 2003 in connection with the
Projects (the "Project Expenditures") by way of long term borrowing pursuant to section 403 of the
Act through the issue of debentures to OIPC and by way of temporary borrowing pursuant to
section 405 of the Act,
AND WHEREAS OIPC has accepted and has approved such Application;
AND WHEREAS the Upper -tier Municipality has agreed to issue debentures for the Projects to
OIPC in the maximum aggregate principal amount of $1,834,284 (the "Debentures"); and OIPC
has indicated that pending the issue of the Debentures it will provide financing byway of temporary
advances to the Lower -tier Municipality in respect of the Projects;
AND WHEREAS the Lower -tier Municipality will enter into a financing agreement with OIPC
pursuant to the terms of which OIPC will provide temporary advances to the Lower -tier Municipality
in respect of the Projects;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF TILLSONBURG
ENACTS AS FOLLOWS:
_ 3 _ Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
1. The Council of the Lower -tier Municipality hereby confirms, ratifies and approves the
completion by the Treasurer of the Application and the submission by such authorized
official of the Application, to OIPC, in cooperation with the Upper -tier Municipality, for the
financing of the Projects by way of temporary borrowing from OIPC, pending the issue of
Debentures, in the maximum aggregate principal amount of $1,834,284, substantially in the
form of Schedule "B" attached hereto and forming part of this By-law, with such changes
thereon as such authorized official approved.
2. The Mayor and the Treasurer are hereby authorized to negotiate and enter into, execute
and deliver for and on behalf of the Lower -tier Municipality a financing agreement (a
"Financing Agreement") with OIPC that provides for temporary borrowing from OIPC in.
respect of the Projects on such terms and conditions as such authorized officials may
approve, such execution and delivery to be conclusive evidence of such approval.
3. The Mayor and/or the Treasurer are hereby authorized, pending the substantial completion
of a Project or as otherwise agreed with OIPC, to make temporary borrowings pursuant to
section 405 of the Act in respect of such Project, on the terms and conditions provided 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 OIPC may require (a "Note"); and
the Treasurer is authorized to sign such certifications as OIPC may require in connection
with such borrowings in respect of the Projects; provided that the amount of borrowings
allocated to any Project does not exceed the Authorized Expenditure for such Project and
does not exceed the loan amount set out in column (4) of Schedule "A" in respect of such
Project as appropriate.
4. In accordance with the provisions of section 18 of the Ontario Infrastructure Projects
Corporation Act, 2006 (Ontario), as security for the payment by the Lower -tier Municipality
of any indebtedness of the Lower -tier Municipality to OIPC incurred under the Note, and as
security for the payment by the Lower -tier Municipality of any indebtedness of the Lower -tier
Municipality to the Upper -tier Municipality in respect of Debentures issued for any Projects,
the Lower -tier Municipality is hereby authorized to agree in writing with OIPC that the
Minister of Finance is entitled to deduct from money appropriated by the Legislative
Assembly of Ontario for payment to the Lower -tier Municipality, or from money appropriated
by the Assembly for payment to the Lower -tier Municipality in respect of specified matters,
amounts not exceeding the amounts that the Lower -tier Municipality fails to pay to OI PC on
account of the outstanding indebtedness evidenced by the Note issued by the Lower -tier
Municipality to OIPC and on account of the outstanding indebtedness evidenced by
Debentures issued by the Upper -tier Municipality to OIPC for any Projects, and to pay such
amounts to OIPC.
5. For purposes of meeting the obligations of the Lower -tier Municipality in respect of the Note
and any Debentures issued by the Upper -tier Municipality to OIPC for any Projects, the
Lower -tier Municipality shall provide for raising in each year as part of the general lower -tier
levy the amounts of principal and interest payable in each year under the Note or any such
Debentures, 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/or the Treasurer are hereby authorized to execute and deliver the
Note, the Mayor and the Treasurer are hereby authorized to enter into, execute and
_ 4 _ Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
deliver the Financing Agreement, the Clerk and Treasurer are hereby severally
authorized to generally do all things and to execute all other documents and papers
in the name of the Lower -tier Municipality in order to perform the obligations of the
Lower -tier Municipality under the Financing Agreement and the Note, and the
Treasurer is authorized to affix the Lower -tier Municipality's municipal seal to any
such documents and papers.
(b) The proceeds realized in respect of the Note after providing for the expenses
related to its execution and delivery, if any, shall be apportioned and applied to
the respective Projects and to no other purpose except as permitted by the Act.
7. This By-law takes effect on the day of passing.
ENACTED AND PASSED this 24th day of November, A.D. 2008.
001- STEPHEN MOLNAR, MAYOR
a
MICHAEL GRXVES, CLERK
_ 5 - Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
Schedule "A"
to By -Law Number 3347
(Ongoing Projects)
1)
(2)
(3)
(4)
By -Law Number/
Description of Capital Work
Estimated
Expenditure
Loan Amount
Project Number
3315
Trackless MT5
$123709
$123,709
3210
Truck Loading Snow Blower
$1121220
$112,220
3315
Road Reconstruction - Quarter Town
$5777031
$577,031
Line Road - Railway Tracks to culvert
North of Fairway Hills Blvd.
3315
Capital Road Resurfacing - Lisgar
$3801000
$3801000
1 Avenue from Fourth Street to Van
Norman Drive
Townline Road from cedar street to Ball
Street
Spruce Street from Vienna Road to
Marwood east limit
Misc Patching area such as public work
parking lot, Cedar Street, Bell Mill
Sideroad and etc.
3315
Trail development costs and capping of
$6111324
$611,324
abandoned oil wells on land acquired
for public golf course and trails
3210
Public Works Floor Drain
$307293
$30,000
Total
$118341284
_ 6 _ Lower -tier By-law 3347
The Corporation of the Town of Tillsonburg
(Ongoing Projects)
Schedule "B"
to By -Law Number 3347
Please insert the OIPC Application into Schedule "B".
5000-2008 oipc financing applic khurg schedule 0 . pdf