HomeMy WebLinkAboutCS 39-04PICKERING
REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 39-04
Date: October 25, 2004
Fro m:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Final Approval for Financing of Council Approved Capital Projects
Internal Loans and External Borrowing Through the Issuance of Debt
Recommendation:
That Report CS 39-04 from the Director, Corporate Services & Treasurer be
approved; and that:
Council approve the internal loans of up to $267,000 to be financed from the
Development Charges Reserve Funds based on the purposes, terms & conditions
as specified in Attachment 1 and furthermore, that the Director, Corporate
Services & Treasurer be authorized and directed to take whatever actions
necessary, including the recommendations below, to give effect thereto; and,
3. the Director, Corporate Services & Treasurer be authorized to:
a)
undertake long term financing through the issuance of debt up to a total
amount of $1,537,000 for the projects listed on Attachment 2 in the indicated
amounts up to a maximum term of 10 years, through the Region of Durham
or the Ontario Municipal Economic Infrastructure Financing Authority
(OMEIFA) for the following purposes, as indicated in Attachment 2:
Parks $ 134,000
Property Maintenance 100,000
Roads 370,000
Culture & Recreation 555,000
Fire 378,000
Total $1,537,000
and the funding for remaining balances in these accounts amounting to
approximately $79,008 be provided from the annual Current Budget;
b)
undertake the financing of any projects or portions thereof that cannot be
accommodated through the foregoing through internal loans or a financial
institution offering long term financing under similar terms and conditions;
Report CS 39-04
Subject:
Final Approval for Financing of Council Approved
Capital Projects -Internal Loans and External Borrowing
Through the Issuance of Debt
October 25, 2004
Page 2
o
10.
c)
finance any capital expenditures currently financed through internal loans,
should the need for funds arise, through the Region of Durham or through a
financial institution;
d)
make any changes, adjustments, revisions to amounts, terms and conditions
or any other actions necessary in order to effect the above directions of
Council;
the costs of undertaking the financing, currently estimated at up to approximately
$12,000, be charged to the 2005 Current Budget, General Government Loan
Repayment;
the annual repayment costs of principal and interest amounting to approximately
$203,910 be included in the 2005 Current Budget and thereafter until the loan is
repaid;
the Director, Corporate Services & Treasurer be directed and authorized to
finance any capital projects, the financing for which is not specifically approved by
Council, through the issuance of debt or long term financing arrangements,
through the Region of Durham, a financial institution, internal loans or whatever
means necessary at the discretion of the Treasurer;
the Director, Corporate Services & Treasurer be authorized to engage the services
of any individual or firm, legal or otherwise, necessary to assist in the preparation
of documentation, completion of an undertaking and any other aspects in regards
to the financing of capital projects;
the Director, Corporate Services & Treasurer be authorized to apply any excess
proceeds raised on external and internal loans to other capital projects for which
long-term financing is required, or to reduce the promissory notes for internal
loans as is permitted under the Municipal Act;,
the Director, Corporate Services & Treasurer be directed to prepare the requisite
by-laws for presentation to and adoption by Council at its meeting of November
15, 2004; and,
the appropriate officials of the City of Pickering be given authority to give effect
thereto.
Report CS 39-04
Subject: Final Approval for Financing of Council Approved
Capital Projects- Internal Loans and External Borrowing
Through the Issuance of Debt
October 25, 2004
Page 3
Executive Summary: While long term financing (internal and external) was always
generally approved by Council during the annual capital budgeting process and/or
through specific reports, there has never been a specific formal approval by the
Council for capital projects requiring such financing with the terms and conditions being
specified in detail. This Report to Council serves as that final formal approval and
Corporate Services will complete all the necessary documentation. The 2004 approved
debt financed capital projects will be funded by a combination of issuance of internal
loans and external debt through the Region of Durham or a financial institution as per
Attachment 2. Council has to formally approve the request to undertake the long term
financing most likely through the issuance of debentures through the Region of
Durham at the terms and conditions as arranged in the capital markets.
The Director, Corporate Services & Treasurer has certified that these loans and the
repayment thereof falls within the City's Debt and Financial Obligations approved
Annual Repayment Limit for debt and other financial obligations for 2004 as established
by the Province for municipalities in Ontario,
Financial Implications:
Internal Loans
The 2004 Capital Budget included debt financing for the following projects, but due to
the amounts being small, these projects are to be financed internally instead:
Parks $175,000
Roads 60,000
Streetlight 32,000
Total $267,000
The combined principal and interest payment for the above internal loans will be
$40,785 and payment will commence in 2005. These internal loans will be temporary
financed by the Development Charges Reserve Funds and repay through an allocation
in the annual current budget commencing in 2005.
The internal borrowing rate is determined by using the average annual yield from the
Region of Durham July 15, 2004 issue. This average rate was 5.09% for the 10-Year
debt. Using this as a benchmark, the rate for 5-Year internal loan is determined by
reducing the rate to 5.00%.
Report CS 39-04
Subject: Final Approval for Financing of Council Approved
Capital Projects -Internal Loans and External Borrowing
Through the Issuance of Debt
October 25, 2004
Page 4
External Debt
The total of all 2004 external debt requested is $1,537,000; out of which $339,000 is
related to 2003 capital budget items and the remainder related to the 2004 capital
projects. Attachment 2 provides a detail breakdown of all projects funded by external
debt. The external borrowing rate will be determined by the capital markets at the time
of the issuance of the debt.
Financial Burden
The annual loan and debt repayment charges are funded through the general property
tax levy in the annual Current Budgets.
The projected total of internal loans and debt outstanding for December 31, 2004 is
$15,171,154 net of principal repayments to date. Please refer to Attachment 3.
Background: Continuous growth has created a need for capital infrastructure to
maintain the level of services provided to residents and businesses. Funding sources
for capital projects are identified and approved by Council prior to the commencement
of the projects. The continuous growth coupled with aging capital infrastructure calls for
expansion to new facilities, replacement and repairs. This prompted the need for more
borrowing to fund the capital projects. Total borrowings from the reserve funds to
finance 2003 and prior years capital projects amounted to $9,250,071 and has almost
maximized the amount that the reserve funds could lend out. Thus, during the 2004
budgeting process, there was no budget for internal loans from reserve funds. The
$267,000 internal loans as reported on Attachment 1 are more of a switch from external
borrowing to internal loans due to the small amount of funds required per project. Such
internal borrowings require appropriate approvals and documentation in accordance
with both the Municipal Act 2001, S418 and the Development Charges Act 1997,
O. Reg. 82/98 s. 12(2)3,4,5. Corporate Services will complete the necessary
documentation including Promissory Notes indicating the amount, term, interest rate
and other relevant information relating to the internal loans and their repayment.
Normally, all external debt requested by an area municipality is issued through the
Region of Durham. However, if there may be other more cost effective means of
financing available, the Treasurer may resort to these alternatives. Alternate financing
may be desirable or necessary for some portions of the City's requirements. The
Recommendations allow for the best course of action to take place.
The recommendations also provide a limited degree of flexibility in the event that the
documentation for projects or portions thereof is insufficient to meet the legal
requirements for a debenture issue in that the project can then be financed through
other means. They also provide for some flexibility with the treatment of excess
Report CS 39-04
Subject:
Final Approval for Financing of Council Approved
Capital Projects - Internal Loans and External Borrowing
Through the Issuance of Debt
October 25, 2004
Page 5
proceeds that may be raised as a result of the market conditions (i.e. issued as a
premium) or excess funds resulting once project costs are complete and final.
The costs of financing of approximately $12,000 will be included in the 2005 Current
Budget for the 2004 capital projects. This cost represents commissions, legal fees,
registration for debentures with the Canadian Depository for Securities (C.D.S.) and any
discount upon sale.
Under Pursuant to Resolution 144/99 the Mayor and Treasurer has the authority to
sign the Promissory Notes.
Attachments:
2.
3.
4.
Internal Loans Funded by Reserve Funds as at December 31, 2004
External Debt, Through Region of Durham or a Financial Institution
Total Projected Internal Loans & Debt Outstanding at December 31,2004
By-law No. 6387/04 to 6392/04
Prepared By:
Approved / Endorsed By:
Caryn Kong
Senior Financial Analyst
Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Attachments
Copy: Chief Administrative Officer
ATTACHMENT# / TO REPORT
Budget
Year Project Number Terms
Originally Bud.qeted as Debt Financed Project-~
Parks
2003 03-2718-001-01 1 O-Year
5.09%
Amount
Description of Loans
David Farr Park
100,000.00
2004 04-2718-001-00 1 O-Year
5.O9%
Roads
2004 04-2320-001-02 5-Year
5.00%
Progress Frenchmans' Bay Park
3/4 Ton Pick-Up Truck
Res.103/04 OES 22-04
75,000.00
35,000.00
2004 04-2320-004-02 5-Year
5.00%
Streetlight
2004 04-2325-007-01
1 O-Year
5.09%
Replacement Culvert Steamer
High Pressure Hot Water
Traffic Control Project
Twin Rivers/Woodview
25,000.00
32,000.00
Total Internal Loans for 2004
267,000.00
2004 Debt & Internal Loans.xIs 2004 Internal Loans-RTC 26/10/2004
Budget Amount
Year Project Number Terms Reference Description of Debt.
Parks
2003 03-2718-001-02 10-Year OES 36-03 Duffins West Pedestrian Trail $134,000
Res. 143/03
Oct. 7, 2003 Meeting
Property Maintenance
2004 04-2132-004-01
Roads
2003 03-2320-001-00
2004 04-2320-001-03
Culture & Recreation
2004 04-2124-005-05
2004 04-2731-005-07
Fire
2004 04-2240-001-01
10-Year OES 21-04
Res. 96/04
June 21, 2004 Meeting
Four Wheel Drive Articulating Tractor
5-Year
5-Year
OES42-03
Res. 170/03
Dec. 15, 2003 Meeting
OES 19-04
Res.94/04
June 21, 2004 Meeting
5-Ton Tandem Dump Truck
4-Ton Dump Truck
5-Year
OES 25-04
Res. Il3/04
Sept. 20,2004 Meeting
10-Year OES 25-04
Res. 113/04
Sept. 20,2004 Meeting
Pickering Civic Complex Chiller
Conversion
Pickering Recreation Complex Chiller
Replacement
10-Year OES 24-04 Fire Pumper Vehicle
Res. 113/04
Sept. 20,2004 Meeting
Total External Debt Required
100,000
205,000
165,000
130,000
425,000
378,000
1,537,000
2004 Debt & Internal Loans.xls 2004 External Debt 26/10/2004
2001 2002 2003 2004 Dec. 31, 2004 ·
Original Principal Principal Principal Principal Outstanding
Amount Repayment Repayment Repayment Repayment Balance.
Internal Loans
2001 & Capital Projects 7,677,000 (604,837) (624,089) (939,545) (738,935)
2002 Capital Projects 1,224,000 0 0 (98,180) (103,836)
2003 Capital Projects 349,071 0 0 0 (27,495)
2004 Capital Projects 267,000 0 0 0
Total Internal Loans 9,517,071 (604,837) (624,089) (1,037,725) (870,266)
4,769,594
1,021,984
321,576
267,000
6,380,154
External Debt
2002 Capital Projects 4,278,000 0 0 (252,000) (266,000)
2003 Capital Projects 3,494,000 0 0 0 0
2004 Capital Projects 1,537,000 0 0 0 0
Total External Debt 9,309,000 0 0 (252,000) (266,000)
3,760,000
3,494,000
1,537,000
8,791,000
15,171,154
Total Proiected Debt 18,826,071 (604,837) (624,089) (1,289,725) (1,136,266)
2004 Debt RTC - Attachment 3.xls Total debt-RTC 2004 26/10/2004
Being a :3V-,.aw ~o confirm ::he auit~onzation of :ne
',ss~.~anca ,'Df aebentures in the amount of ~¢134.000 for
Duffins West Pedestrian Trail project in the City of
Pickering
NI-E?.EAS Section ': i of :ne iVlunicipai Act, 2001. as amen(~ea, provlaes t;qa~ a Jower-
tier municipaiity may pass by-laws respecting matters within Ihe spheres of jurisdiction
descnbeQ in that Section; and,
WHEREAS Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a
municipaiity may incur a debt for municipal purposes, whether by borrowing money or
in any other way; and,
WHEREAS Subsection 401 (3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the City approved Report OES 36-03 at its meeting of
October 7, 2003 pursuant to Resolution #143/03 awarded Tender T-13-2003 for the
Duffins West Pedestrian Trail project at that meeting; and,
WHEREAS the construction of the Duffins West Pedestrian Trail project has been
completed; and,
AND WHEREAS before the Council of the City authorized the Duffins West Pedestrian
Trail project, the Council of the City had the Treasurer update the City's Annual
Repayment Limit, the Treasurer calculated the estimated annual amount payable in
respect of such project and determined that such annual amount would not cause the
City to exceed the updated Limit and, therefore, Ontario Municipal Board approval was
not required prior to City Council's authorization as per Section 401 of the Municipal
Act, 2001, as amended, and the regulations made thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
1. That the estimated costs of the construction of the Duffins West Pedestrian Trail
project in the amount of $134,000 be financed as follows:
a) That the sum of $134,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
2. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2005 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 15th day of November
2004.
Mayor
City CJerk
NC.
3eing a Oy-~aw to confirm ihe au~horizaticn }f i,~e issuancs
of debentures in the amount of $100,000 to purchase a
Four Wheel Drive Articulating Tractor project in the City of
Picketing.
NHEREAS Section ! I of the Municipal Act 2001, as amended, provides that a iower-
:ier :,munJcipaiity ma}. pass by-iaws respecting matters within the spheres of iurisdiction
described in ,:hat Section; and,
WHEREAS Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing morley or
in any other way; and,
WHEREAS Subsection 401(3) of the Mun, icipal Act, 2001, as amended, provides that a
lower~tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the City has approved Report OES 21-04 at its meeting of
June 21, 2004 pursuant to Resolution #96/04 and awarded Quotation Q-15-2004 for
the purchase of a Four Wheel Drive Articulating Tractor project at that meeting; and,
WHEREAS the purchase of a Four Wheel Drive Articulating Tractor project has been
completed; and,
AND WHEREAS before the Council of the City authorized the purchase of a Four
Wheel Drive Articulating Tractor project, the Council of the City had the Treasurer
update the City's Annual Repayment Limit, the Treasurer calculated the estimated
annual amount payable in respect of such project and determined that such annual
amount would not cause the City to exceed the updated Limit and, therefore, Ontario
Municipal Board approval was not required prior to City Council's authorization as per
Section 401 of the Municipal Act, 2001, as amended, and the regulations made
thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
1. That the estimated costs of the purchase of a Four Wheel Drive Articulating Tractor
project in the amount of $100,656 be financed as follows:
a)
That the sum of $100,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
b) That the balance of $656 be funded from the 2004 Current Budget;
2. That the funds to repay the principal and interest of the debentures be provided for
in the annual Current Budget for the City commencing in 2005 and continuing
thereafter until the loan is repaid.
By-iaw read a first, second and third time and finally passed the 15th day of November
2004,
Mayor
City C:erK
~eing ~ 3,,'-;:vv :3 confirm ihe authorization ~f !he issuance
~'~.., debentures in ..'~"~ amount of $205,000 for the purchase
3~ a 5-Ton 'Tandem Dump Truck project in the City of
~ickedng.
NFERE,AS ;Section 'i i of ~he Municipal Ac~ 2007, As amended, provides that a ioweP
tier municipality may' pass by-iaws respecting matters within the spheres of jurisqiction
described in :{hat Section; and,
WHEREAS Subsection 401 (1) of the MunicipalAct, 2001, as amended, provides that a
municipaiity may incur a debt for municipal purposes, whether by borrowing money or
in any other way; and,
WHEREAS Subsection 401(3) of the MunicipalAct, 2001, as amended, provides 'that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the City approved Report OES 42-03 at its meeting of
December 15, 2003 pursuant to Resolution #170/03 and awarded Quotation Q-36-2003
for the 5-Ton Tandem Dump Truck project at that meeting; and,
WHEREAS the purchase of the 5-Ton Tandem Dump Truck project has been
completed; and,
AND WHEREAS before the Council of the City authorized the purchase of a 5-Ton
Tandem Dump Truck project in the City of Pickering, the Council of the City had the
Treasurer update the City's Annual Repayment Limit, the Treasurer calculated the
estimated annual amount payable in respect of such project and determined that such
annual amount would not cause the City to exceed the updated Limit and, therefore,
Ontario Municipal Board approval was not required prior to City Council's authorization
as per Section 401 of the Municipal Act, 2001, as amended, and the regulations made
thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
That the estimated costs of the the purchase of a 5-Ton Tandem Dump Truck
project in the City of Picketing in the amount of $205,023 be financed as follows:
a) That the sum of $205,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five (5) years;
b) That the balance of $23 be funded by the 2004 Current Budget;
That the funds to repay the principal and interest of the debentures be provided
for in the annual Current Budget for the City of Pickering commencing in 2005
and continuing thereafter until the loan is repaid.
,;-~aw :ead a first, second and third time and finally passed the 15th day of November
2004.
Mayor
City Clerk
3ein9 a sy-iaw :o condrm the authorization of ~:he issuance
:;i de:dentures in ~'~¢ . ,
,¢,. amount of $165,000 for '::he purchase
of a a-.Ton Dump Truck Jn the City of Pickering.
WHEREAS Section 11 of the Nlunicipal Act, 2001, as amended, provides Ghat a iower-
tier municipaiity mat,/pass by-!aws respecting matters within ';:he spheres of iurisdiction
described in that Section; and,
WHEREAS Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or
in any other way; and,
WHEREAS Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the City has approved Report OES 19-04 at its meeting of
June 21, 2004, pursuant to Resolution #94/04 and awarded Quotation Q~21-2004 for
the purchase of a 4-Ton Dump Truck in the City of Pickering at that meeting; and,
WHEREAS the Council of the City is proceeding with the purchase of the 4-Ton Dump
Truck in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the purchase of a 4-Ton
Dump Truck in the City of Pickering, the Council of the City had the Treasurer update
the City's Annual Repayment Limit, the Treasurer calculated the estimated annual
amount payable in respect of such project and determined that such annual amount
would not cause the City to exceed the updated Limit and, therefore, Ontario Municipal
Board approval was not required prior to City Council's authorization as per Section 401
of the Municipal Act, 2001, as amended, and the regulations made thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
That the estimated costs of the purchase of a 4-Ton Dump Truck in the City of
Pickering in the amount of $165,810 be financed as follows:
(a)
That the sum of $165,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five (5)
years;
(b) That the remaining sum of $810 be funded from the 2004 Current Budget;
That the funds to repay the principal and interest of the debentures be provided
for in the annual Current Budget for the City commencing in 2005 and continuing
thereafter until the loan is repaid.
8y-!aw read a first, second and third time and finally passed the 15th day of November
2004~
Mayor
City Clerk
:~:ein~c ~ 3':;-iaw lo co:~firm ;he authorization of :he ,ssuance
'~f debentui'es f:~. the amount of $555,000 for the ?ickering
Complex Chiller Repiacement and Pickering Civic Complex
Chiiler Conversion in ther'i'..., Tv of Picketing.
NHERE:".S Section !" oi: the JViuniclioai Act, 200¢, as amended, provides that a ',ower-
tier municipaiity may pass by-laws respecting matters within the spheres of juris(~[iction
described in that Section; and,
WHEREAS Subsection 401(1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or
in any other way; and,
WHEREAS Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the Corporation of the City of Pickering has approved Fleport
OES 25-04 at its meeting of September 20, 2004 pursuant to Resolution #113/04 and
awarded Tender T-3-2004 for the Pickering Complex Chiller Replacement and
Picketing Civic Complex Chiller Conversion in the City of Picketing; and,
WHEREAS the Council of the City is proceeding with the Pickering Complex (]hiller
Replacement and Pickering Civic Complex Chiller Conversion in the City of Pickering;
and,
AND WHEREAS before the Council of the City authorized the Pickering Complex
Chiller Replacement and Pickering Civic Complex Chiller Conversion in the City of
Pickering, the Council of the City had the Treasurer update the City's Annual
Repayment Limit, the Treasurer calculated the estimated annual amount payable in
respect of such project and determined that such annual amount would not cause the
City to exceed the updated Limit and, therefore, Ontario Municipal Board approval was
not required prior to City Council's authorization as per Section 401 of the Municipal
Act, 2001, as amended, and the regulations made thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF'THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
That the estimated costs of the Pickering Complex Chiller Replacement and
Pickering Civic Complex Chiller Conversion in the City of Pickering in the amount
of $632,519 be financed as follows:
a)
That the sum of $130,000 for the Pickering Civic Complex Chiller
Conversion be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed five (5) years;
That the sum of $425,000 for the Pickering Recreation Complex Chiller
Replacement be financed by the issue of debentures by The Regional
Municipality of Durham over a period not to exceed ten (10) years;
That the baiance amount of $77,519 be funded from the 2004 Current
Budget;
· -3ad a ::irs:~, :;econo &nc :!qi~-a time and ;'inaiiy passed
Mayor
City Clerk
:Jeim: s :',,-~aw cc :snfirm 'the authori.~adcn 3¢ the ssuance
o~: aeaemui'es in i,he amount of $3T8,000 for ~he pUrChase
~'~ ~ ;~1'e '~ r ~ ~ ' '
;-u139e, ,'en~c e in the City of: c(erina.
WHEREAS Section i i of the ]Viunic~Pai Act, 2001, as amended provides ;hat a iower-
;.1er rnunicipaiib/ may pass by-laws respecting matters within the spheres of iurisdiction
~ e ........ :,n that ~e,~ucn, ~nd,
WHEREAS Subsection 401 (1) of the Municipal Act, 2001, as amended, provides that a
municipality may incur a debt for municipal purposes, whether by borrowing money or
in any other way; and,
WHEREAS Subsection 401(3) of the Municipal Act, 2001, as amended, provides that a
lower-tier municipality in a regional municipality does not have the power to issue
debentures; and,
WHEREAS The Regional Municipality of Durham has the sole authority to issue
debentures for the purposes of its lower-tier municipalities including The Corporation of
the City of Pickering (the "City"); and,
WHEREAS the Council of the City of Pickering has approved Report OES 24-04 at its
meeting of September 20, 2004 pursuant to Resolution 113/04 and awarded Quotation
Q-29-2004 for the purchase of a Fire Pumper Vehicle in the City of Pickering; and,
WHEREAS the Council of the Corporation of the City of Pickering is proceeding with
the purchase of a Fire Pumper Vehicle in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the purchase of a Fire
Pumper Vehicle in the City of Pickering, the Council of the City had the Treasurer
update the City's Annual Repayment Limit, the Treasurer calculated the estimated
annual amount payable in respect of such project and determined that such annual
amount would not cause the City to exceed the updated Limit and, therefore, Ontario
Municipal Board approval was not required prior to City Council's authorization as per
Section 401 of the Municipal Act, 2001, as amended, and the regulations made
thereunder.
NOW THEREFORE, BE IT ENACTED AND ITS IS HEREBY ENACTED AS A BY-LAW
OF THE CORPORATION OF THE CITY OF PICKERING AS FOLLOWS:
That the estimated costs of the purchase of a Fire Pumper Vehicle in the City
of Picketing in the amount of $378,000 be financed as follows:
a) That the sum of $378,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
That the funds to repay the principal and interest of the debentures be provided
for in the annual Current Budget for the City commencing in 2005 and continuing
thereafter until the loan is repaid.
By-iaw read a first, second and third time and finally passed the 15th day of November
2004.
Mayor
City Clerk