2021-099
The Corporation of the Town of Tillsonburg
BY-LAW 2021-099
A BY-LAW TO AUTHORIZE THE SUBMISSION OF AN APPLICATION TO
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (“OILC”) FOR
FINANCING CERTAIN ONGOING CAPITAL WORK(S) OF The Corporation of
the Town of Tillsonburg (THE “LOWER-TIER MUNICIPALITY”); TO AUTHORIZE
TEMPORARY BORROWING FROM OILC TO MEET EXPENDITURES IN
CONNECTION WITH SUCH CAPITAL WORK(S); AND TO AUTHORIZE LONG-
TERM BORROWING FOR SUCH CAPITAL WORK(S) THROUGH THE ISSUE
OF DEBENTURES BY the County of Oxford (THE “UPPER-TIER
MUNICIPALITY”) TO OILC.
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-law(s)
enumerated in column (1) of Schedule “A” attached hereto and forming part of this By-
law (“Schedule “A”) authorizing the capital work(s) described in column (2) of
Schedule “A” (the “Capital Work(s)”) in the amount of the respective estimated
expenditure set out in column (3) of Schedule “A”, subject in each case to approval by
OILC of the financing for such Capital Work(s) requested by the Lower-tier Municipality
in the Application as hereinafter defined;
AND WHEREAS before the Council of the Lower-tier Municipality approved the Capital
Work(s) in accordance with section 4 of Ontario Regulation 403/02 (the “Regulation”),
the Council of the Lower-tier Municipality had its Treasurer calculate an 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, the “Updated Limit”),
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 (3) of Schedule “A” (the
“Authorized Expenditure” for any such Capital 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 Lower-tier Municipality to exceed the Updated Limit, and accordingly the approval of
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the Local Planning Appeal Tribunal pursuant to the Regulation, was not required before
any such Capital Work was authorized by the Council of the Lower-tier Municipality;
AND WHEREAS subsection 405(1) of the Act provides, amongst other things, 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,
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;
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 Capital Work(s) and will request that the Upper-tier Municipality do so;
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 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 OILC has invited Ontario municipalities desirous of obtaining
temporary and 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 application in connection
with eligible capital work(s) to make application to OILC for such financing by
completing and submitting an application in the form provided by OILC;
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AND WHEREAS the Lower-tier Municipality requested the Upper-tier Municipality to
issue debentures for the Capital Work(s) and in this connection the Upper-tier
Municipality and the Lower-tier Municipality completed and submitted or is in the
process of submitting an application to OILC, as the case may be (the “Application”) to
request financing for the Capital Work(s) by way of long-term borrowing pursuant to
section 403 of the Act through the issue of debentures by the Upper-tier Municipality to
OILC and by way of temporary borrowing by the Lower-tier from OILC pending the issue
of such debentures;
AND WHEREAS OILC has accepted and has approved or will notify the Lower-tier
Municipality only if it accepts and approves the Application, as the case may be;
AND WHEREAS the Upper-tier Municipality has approved the issue of debentures for
the Capital Work(s) to OILC in the maximum aggregate principal amount of $182,426
(the “Debentures”); and OILC has indicated that pending the issue of the Debentures it
will provide financing by way of temporary advances to the Lower-tier Municipality in
respect of the Capital Work(s);
AND WHEREAS the Lower-tier Municipality will enter into a financing agreement with
OILC pursuant to the terms of which OILC will provide temporary advances to the
Lower-tier Municipality in respect of the Capital Work(s);
BE IT THEREFORE ENACTED by the Council of the Corporation of the Town of
Tillsonburg as follows:
1. The Council of the Lower-tier Municipality hereby confirms, ratifies and approves
the execution by the Treasurer of the Application and the submission by such
authorized official of the Application, duly executed by such authorized official, to
OILC, in cooperation with the Upper-tier Municipality, for the financing of the
Capital Work(s) by way of temporary borrowing from OILC, pending the issue of
the Debentures, in the maximum aggregate principal amount of $182,426
substantially in the form of Schedule “B” hereto and forming part of this By-law,
with such changes thereon as such authorized official may hereafter approve,
such execution and delivery to be conclusive evidence of such approval.
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 OILC that provides for temporary
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borrowing from OILC 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.
3. The Mayor and the Treasurer are hereby authorized, pending the substantial
completion of the Capital Work or of each Capital Work, as the case may be, or
as otherwise agreed with OILC, to make temporary borrowings pursuant to
section 405 of the Act in respect of the Capital Work or of each Capital Work, as
the case may be, on the terms and conditions provided in the Financing
Agreement which the Financing Agreement provides that the information
contained in the Record, as defined in the Financing Agreement, in respect of
such temporary borrowings shall be deemed final, conclusive and binding on the
Lower-tier Municipality, and on such other terms and conditions as such
authorized officials may agree; and the Treasurer is authorized to sign such
certifications as OILC may require in connection with such borrowings in respect
of the Capital Work(s); provided that the amount of borrowings allocated to the
Capital Work or to each Capital Work, as the case may be, does not exceed the
Authorized Expenditure for such Capital Work and does not exceed the related
loan amount set out in column (4) of Schedule “A” in 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
Lower-tier Municipality is hereby authorized to agree in writing with OILC that the
Minister of Finance is entitled, without notice to the Lower-tier Municipality, to
deduct from money appropriated by the Legislative Assembly of Ontario for
payment to the Lower-tier Municipality, amounts not exceeding the amounts that
the Lower-tier Municipality fails to pay to OILC on account of any unpaid
indebtedness of the Lower-tier Municipality to OILC under any outstanding
temporary borrowing and/or the Debentures, as the case may be (the
“Obligations”) and to pay such amounts to OILC from the Consolidated
Revenue Fund.
5. For the purposes of meeting the Obligations, the Lower-tier Municipality shall
provide for raising in each year as part of the general lower-tier levy the amounts
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of principal and interest payable in each year under any outstanding temporary
borrowing and/or any Debenture outstanding pursuant to the Financing
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 enter into, execute
and deliver the Financing Agreement, 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 Lower-tier Municipality
in order to perform the Obligations of the Lower-tier Municipality under the
Financing Agreement, to request and receive any temporary borrowing,
and the Treasurer is authorized to affix the Lower-tier Municipality’s
municipal seal to any such documents and papers.
(b) The money realized in respect of any temporary borrowing for the Capital
Work(s) and the Debentures, including any premium, and any earnings
derived from the investment of that money after providing for the expenses
related to any such temporary borrowing and to the issue of the
Debentures by the Upper-tier Municipality, if any, shall be apportioned and
applied to the respective Capital Work and to no other purpose except as
permitted by the Act.
By-Law 2021-099
7 . That this by-law shall come into force and take effect on the date it is passed .
READ A FIRST AND SECOND TIME THIS 13th day of SEPTEMBER, 2021.
READ A THIRD ND FINAL TIME AND PASSED THIS 13th day of SEPTEMBER,
2021.
/ A YOR -Stephen Molnar
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