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Home My WebLink AboutCS 26/00+ , ' 0 6 � Clfy o� ' REPORT TO COUNCIL FROM: Gillis A. Paterson DATE: November 30, 2000 Director, Corporate Services & Trcasurcr REPORT NUMOER: CS 2G-00 SUBIECT: 2001 Temporary Borrowing By-Law RECOMMENDAT[dN: It is recommended that Report CS 26-99 of thc Dircctor, Corporatc Scrvices & Treasurer bc received and that: l. the tempomry 6orrowing limit to meet 2001 curtenl cxpenditures pcnding rcceipt of taxes anJ othcr rcvenues be establishcd at $18,OOO,U00 for Ihe period January l, 2001 to Scptember 30, 2001 inclusivc, anJ 59,000,000 Ihercallcr wuil Dcccmbcr 31, 2001; 2. thc tcmporaryhorrowing limit for capital pumoscs for 2001 bc established at 512,000,000; 3. thc attached By-Law bc rcad thrcc timcs and passed; and, 4, lhe appropriatc officials of the Ciry of Pickering he authorized to takc Ihc necessary actions to givc cffcct thcrero. ORIGIN: Dircetor, Corporatc Scn•ices fi Trcasurcr AUTNORITY: Thc Municipal Acl, RSO 1990, as amcnJcJ, Scction 187 and 188 F(NANCIAL IMPL(CATTONS: At this time it is difficult to estimatc the intcrest costs as it is unccrtain how much tcmporary financing may bc rcquired anJ for how long. An cslimate will be providcd at u latcr date in thc 2001 Current Budget. In past years ro extcmal tcmporary borrowings have bccn necessary, howcver, there huve bcen inlcrnal borrowings. While SIS million limit for curtent.pumoses remains unchangcd from 2000, the 59 million has becn incrcased from $6.G million and thc limit for Capital purposes has bccn increased from 57 million to $12 million. EXECUTIVE SUMMARY: Not applicablc UACKGR�UND: The borrowing of funds for currcnt nnd capitnl purposcs moy bccomc ncccssary during thc nortnal coursc of operations during 2001. Under thc provisions oCScction 187 of thc Municipnl A�!, R.S.O. 1990, (thc Act), thc Cauncil of thc City of Pickcring muy pass n by-law to providc Report to Council CS 2G-OU Date; November 30, 2000 Q(j 5 Subject: 2001 Tcmporury Borrowing By-Lnw Pagc 2 for the temporary bortowin� of funds to meet cucrent operating expenditures pcnding rcccipt of taxes and othcr revenucs of the Ciry. Undcr Scution 188 of thc Act thc Corporation may also undertake tempomry borrowings, under individual projcct approvals, for capital projects pending pertnanent finuncing, including thc issuance of debcntures by thc Region. Curtent Budget Financine: The amount of such temporary borrowing outstanding ut any one time is generally limited by the Acl, unlcss othenvise approved by the Ontario Municipal Board, to 50 per cenl of the eslimalcJ annual revenues from January 1 to September 30 and to 25 per cent thereaflcr. Under Bill 140, which has reccived first reading at the time of writing this report, it is proposed to incrcase thesc limits to 70 per cent and 45 per cent respectively which muy prompt revisians to the By-Law with CounciPs approval at somc futurc date. Until the current ycar's estimatcs arc adopted, the limitalion may be calculated upon the revcnues set forth in the estimales adopteJ �or the next prcceding year. Based upon the 2000 estimates of the Corporation, the allowablc level of temporary bortowing outstanding under Iegislation is estimated at 318,000,000 Gom January I lo Scptember 30 and 59,000,000 thcreafter. The requested 518,000,000 should be suflicient to mcet the currenl expenJitures of the City until the levies for 2001 are rcccived. It is hopcd that this amount will provide a sufficient Ievel of temporary bortowings taking into account the potcntial cffects of Bill 140 (Capping Legislation) and its impact on cash Ilows. Canital Budt�ct Financine: Borrowing for capital purposes undcr Scction 188 of thc Act can only bc undertaken on projecls approvcd by Council anJ will only bc unJcrtakcn in Ihc cvcnt Uiat suUicicnt Cunds are not availablc at thc timc thcy arc rcyuired. RecommcnJation 2 providcs thc authoriry for the Trcasuror to obtain aJJitional tcmporary intcrim financing (intcmal or cxtemal) for capital projects approvcd by Council. Thc 512 million wpital borrowing limit woulJ provide sufTicient funds to covcr prior ycars and cstimatcd 2001 capilal cxpcnditures. ATTACHMENTS: I. Tcmporary 8orrowing By-Law Prepared By/Approved/Endorsed By: Gillis A. Paterson, Director, Corporate Scrviccs & Trcasurcr GAP:vw Recommcndcd for thc considcralion of Pickcring City Council � �� „ ✓30 0 o as J. ui , Ch cf Admint ivc Offi r 066 ATTACHMENT��TOREPORTiJ � a�-oo TAE CORPORATION OP THE CITY OF PICKERIN HY-LAW N0. Hcing a by-Inw to uuthorizc the temporary borrowing oC moneys lo mect thc currenl nnd capital cxpcnditures of the Cily of Pickering Cor the yeaz 2001. WHEREAS Section 187 of the Municipal Act provides tl�at the Council oC the City of Pickering may by by-law uuthorize the Mayor nnd Treasurer of the Municipality to borrow trom time to time by way of promissory note such sums as the Council may Jeem nccessary to meet, until thc taxes for lhe current year aze collecteJ and olher revenues are received, the current expendilures oC the Municipality for the year, including the amounts required for principal and interest falling due within the yeaz upon any dcbt of the Municipality, and the sums requircd by law to be providcd by the Council for uny local boarJ of the Municipality; and, WHLREAS Section 187(2) limils the total of such bortowings to not excecding 50 per cent of the eslimatcJ annual revenucs from January I, 2001 to Scptcmber 30, 2001 and 25 per ccnt thercatler; nnd, WHEREAS it is deemed necessary by the said Council to barrow llie sum of cightccn million dollars ($18,000,000) to mcct, until Ihc tuxcs for thc cuncnt ycar are recr,ived, the currenl expenJiwres of the Municipality for Uic year Z001, including thc amounts and sums aforesaid; and, R'I IERF.AS thc snid sum of ciglilcen million dollnrs (518,000,000) plus any similar bortowings thnt have not bccn repaid, is less than 50 per ccnl of thc total amount of lhc eslimaled revenues oC Ihe Municipality from lanuary t to Scplcmber 30 as sct forth in tlie cstimates adoptcd by U�e said Council for the ycar 2000 exclusivc of rcvenucs dcrivablc Gom Uic sale of assets, borrowings or issues of dcbenlures or from a sumlus including arrears of Icvics and $9,000,000 is less than 25 per ccnl thcrcaticr, and, WHEREAS Section 188 of Uic Municipal Act proviJes that if a municipality has by by-law npprovcd an undcrtaking to 6e financcd in whole or in part by incurting long-term debl, thc council may by by-luw authorize temporary borto:ving to meet expenditures made in connection with thc undertaking; and, WHEREAS it is dccmed neccssary by thc said Council ta borrow thc sum of twelve million dollars ($I2,000,000) to mect thc capital expcnditures approveJ by Council. NOW THEREFORE THE COUNCIL OF THE CORPORATION OP THE CITY OF PICKERING HEREBY ENACI'S AS FOLLOWS; l. The Mnyor and Treasurer of the City of Pickering be and they aza l�ereby authorized to borrow from time to time by way of promissory notes a sum or sums not exceeding cighteen million dollnrs (518,000,000) to mcet, until lhe levies for the yenr 2001 arc received, the current cxpcnditures oC the Municipaliry for such year, including thc amounts requirul for principal anJ intcrcst falling due witliin lhc ycar upon any debt of the Municipality for the period lanuary I, 2001 to September 30, 2001 inclusivc anJ S9,000,000 thereaIIcr until December 31, 2001. I , . �67 2. The Ma}ror and Trcasurer of lhe City of Pickering be nnd lhey aze hereby authorizcd to borrow from time to timc by wuy of promissory notes n sum or sums not excecding in all the sum of lweive mi�lion dollars ($12,000,000) to meet the capjtal expendilures as approved by Councii, of the Municipnlity including the amounts required for principal and interesl. 3. Any promissory notes mndc under the authority of this 8y-Law ahnll be sealed and signed in accordance with the provisions of the Municipal Act and may be countersigncd in writing by the Manager, Accounting Services of the Corporalion in accordancc with the provisions of lhc said Act. 4. This By-Law shall come into effect on U�e first day of January, 2001. BY-LAW rcad u tirst, second und ihird time and finally passed this 18th day of December, 2000. Wayne Arihurs, Mayor Brucc Taylor, Clcrk