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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