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�'� � � - � _ �REPORT TO COUNCIL _
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FROMt' Qi11is A. Paterson:
' Diroctor of Finance Xc 7'rcusurer
DATE: December 8,1998
REPORT NUMBER: FIN 36/98
SUBJECT:
1999 Tempoiary Borrowing By-Luw
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RECOMMENDA7'ION: :
It is recommended thnt:
1. lhe temporary borrowing limil to meet 1999 cutrcnt and cnpital expenditures
pending receipt of taxes und other revenues bc estnblished at 526,000,000;
2. the necessnry Bill (by-law nttnched) be presented to Council; and
3, lhe appropriatc Town of Pickcring olficiuls bc nuthoriud to tnkc thc
necessery actions to giva thcreto.
ORIGiN:
Director of Finencc & Trensurer
AUTHORITY:
The Municipul Act R.S.O. t990, as nmended.
FINANCIAL IMPLICATIONS:
At this time it is dillicult to estimate the interest costs ns it is uncertain how much finencing may
be reyuiad and for how long, As estimate will be provided nt e Inter date in the 1999 Budget.
Totnl interest costs of 5206,000 were included in the 1998 Opemting Budget for the Town. At
this time, it is anticiputed that thts budget will be exceeded. Costs of any bortowing for wpitnl
purposes will bc chnrged to the project,
EXECU77VE SUMMARY: Not epplicable. .
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��`. Repott to Council FIN 36/98 ., f Dpte: Decembar 8,1.998
SubJect - 1999 Temporary Bortowing Eiy-Law ' Page 2��
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BACKGROUND: ' ?
The bortowing of funds for curtent and cupital pwposcs my become necessary during the
nonnnl couise of operntions during 1999. Under the provisions of Section l87 of the Municipul
Act, R.S.O. 1990, (the Act), t�e Council of the Town of Pickering mny pass a by-Inw
nuthorizing tempornry borrowings by thc Mayor and the Trensurer to mect curtent expenditures
Fending reccipt of taxes and ot�er revenues of tha Town. The Corporation may also underfuke
temporary borrowings; tmder individuul project upprovnls, for copitnl projccts pending financing,
including ihe issunnce of debentures by thc Region.
The nmount of such temporary borrowing outsWnding nt any one time is generally limited by the
Act, unless alherwise approved by the Ontnrio Municipul Bnurd, ro 50 per cent of lhe estimated
ennunl revenues from Junuary 1 to September 30 and to 25 per cent thereniler.
Until the cutrent year's estimutes ura ndopted, the limitation may be cnlculated upon the revenues
set fotth in the estimutes udopted for Ute nexl preceding yenr. Based upon the 1998 eslimatcs of
iha Corpomtion, the �Ilownble Ievcl of tempornry boerowing outstnnding undcr Icgisintion is
estimuted at 539,000,000 from Jnnunry 1 to September 30 and 56,600,000 thereaRer.
Tha rcquested 526,000,000 should bc sufficient to meet the current expenditures of the Town
until the levies for 1999 nre received. It is hoped that this nmount will provide morc than a
su�cient Icvcl o£ tempornry borrowings tnking into uccount the potenliol effecls of Bill 79
(Capping Legislntion) ond its impnct on cush ilows.
Borrowing for cnpitnl purposcs cun only bc undertnken on projccts npproved by Council and will
only be undertaken in the event thnt sufficicnt funds nrc not nvailable at the timc thcy arc
required.
ATTACHMENTS:
I. Tempomry Bortowing By-Inw
Prepared By: Approved /• o ed By:
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Sten Knrwowski Gillis A. Paterson
Manager of Finnnce Director of Finanec & Trensurer
SK/md
Atmchments
Recommended for the considemtion of
Pickering Town Council
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THE CORPORATION OF THE TOWN OF PICKERINd
BY•LAW N0,
Being a bylew to authoriu thc temporary
borrowing of moncys to mat Ihe current
expenditures of Thc Town of Pickering for the
yenr 1999.
WHEREAS the Municipal Act provides that the Council of The Town of Pickering may by by-
law nuthoriu the Mayor md Treasurer of the Municipality to borrow from time to time by way
of promissory nou such sums as the Council mey deem necessary to meet, until ►he taxes for lhe
current year ero received, the curtent expenditures of the btunicipality for the yeaz, including the
emounts required for principnl und intercst falling due within the year upon any debt af the
Municipality, enJ the sums required by law to be provided by the Council for any local board of
the Municipality; nnd
WFIEREAS it is dcemtd necessary by the said Council to bortow the sum of twenty-six million
dollazs (526,000,000) to meet, until the taxes for the current year are received, the current
expenditures of the Municipaliry for the yepr 1999, including the amounts and sums nforesaid;
and
WHEREAS the said sum of twenry-six millian dollars (526,000,000) plus nny similur
borrowings that hnve not been repaid, is less than 25 per cent of the tomi nmount of the estimated
revenues of the Municipality as ut forth in the estimates adopted by the said Councii for the year
1999 exclusive of revenues derivnble from the snle of assets, bortowings or issues of debentures
or from a su�plus including nrtears af levies and proceeds from sule of assets:
NOW THEREFOR� THE C:OUNCIL OF THE CORPORATION OF THE TOWN OF
PICKER[NQ HEREBY ENACTS AS FOLLOWS:
t. The Mayor wid Trensurer of The To�m of Pickering be and they nre hcreby authorized to
bortow from dme to time by wny oF promissory note n sum or sums not exceeding in all
the sum of twenty-six million dollers (526,000,000) to meet, until the levies for the year
1999 are received, the current expenditures of the Municipnlity for such yeur, including
the amounts required for principnt and interest felling due within the year upon any debt
of the Municipality, and tha sums required by inw to be provided by the Council for
regional and schoot purposes and for any local board of the Municipnlity.
2. My promissory note made under the nuthority of secUon I hereof shall be seulcd and
signed in nccordance with the provision of the Municip�l Act and may be countersigned
in wridng by the Depury Treasurer of the Corporadon in accordance with tha provisions
of the said Act, •
BY-LAW rcad a first, second and third time and finally pa4sed this 21st day of December,1998.
- Weync Arthurs, Mayor
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