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HomeMy WebLinkAboutCS 08-07 Citll o~ REPORT TO EXECUTIVE COMMITTEE Resolution No. 27/07 Dated February 5, 2007 Report Number: CS 08-07 Date: January 22, 2007 (, 5f"' ....: \J From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the Issuance of Debentures Recommendation: 1. That Report CS 08-07 from the Director, Corporate Services & Treasurer be approved; 2. That the Director, Corporate Services & Treasurer be authorized to: a) undertake long term financing through the issuance of debentures through the Regional Municipality of Durham up to a maximum amount of $2,340,000 for the projects listed on Attachment 1 in the indicated amounts, for the following terms; Terms Amount 5- Year $ 520,000 10- Year 890,000 20- Year 930,000 Total $ 2,340,000 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; c) finance any capital expenditures currently financed through internal loans, should the need for funds arise, through the Regional Municipality 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; 3. That the costs of undertaking the financing, currently estimated at up to approximately $24,000, be charged to the 2007 Current Budget, General Government Loan Repayment; Report CS 08-07 January 22,2007 Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the C f).j Issuance of Debentures Page 2 4. That the annual repayment costs of principal and interest amounting to approximately $310,000 be included in the 2007 Current Budget and thereafter until the loan is repaid; 5. That 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 debentures or long term financing arrangements, through the Regional Municipality of Durham, a financial institution, internal loans or whatever means necessary at the discretion of the Treasurer; 6. That the Director, Corporate SeNices & 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; 7. That the Director, Corporate Services & Treasurer be authorized to apply any excess proceeds raised to other capital projects for which long-term financing is required, as is permitted under the Municipal Act, 2001; 8. That the attached draft by-laws, providing for the authorization for the issuance of debentures, be enacted; and, 9. That the appropriate officials of the City of Pickering be given authority to give effect thereto. 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 seNes as that final formal approval and Corporate SeNices will complete all the necessary documentation. The 2005 and 2006 approved debt financed capital projects will be funded by the issuance of debentures through the Regional Municipality of Durham as per Attachment 1. The 2006 internal loans have been officially issued as at year ended December 31, 2006. Council has to formally approve the request to undertake the long term financing through the issuance of debentures through the Regional Municipality of Durham at the terms and conditions as arranged in the capital markets as was approved by Council for the 2005 and 2006 Capital Budgets. 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 2006 as established by the Province for municipalities in Ontario. Report CS 08-07 January 22, 2007 Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the Issuance of Debentures Page 3 C6"t Financial Implications: Total Cost of All Proiects In addition to debt financing, these projects are also funded by other sources of funds. The breakdown of the various sources of funds is as follows: Sources Debentures Current Funds COMRIF Reserves & Total Grants Reserve Costs Funds Proiects $2,340,000 32,210 666,665 750,335 $3,789,210 Other than debt financing of $2,340,000, the combined total of all other sources of funds is $1,449,210. The grand total cost of all these projects is $3,789,210. Attachment 1 provides further detailed breakdown of all other sources of funding. Internal Loans In the year ended 2006, the official internal borrowing undertaken was $502,000. Attachment 2 provides the detailed breakdown on these internal loans. The combined principal and interest payment for the above internal loans are $135,511 and payment will commence in 2007. These internal loans will be temporary financed by the Development Charges Reserve Funds and repaid through an allocation in the annual current budget commencing in 2007. The internal borrowing rate is determined by using the Ontario Strategic Infrastructure Financing Authority's (OSIFA) 5-year rate and other comparable municipal borrowing at the time the loan was undertaken. The rates for the 4-year and 5 year loans were 4.25% and 4.50% respectively. External Debts The total of all 2006 external debentures requested was $2,340,000, out of which $175,000 is related to 2005 capital budget items and the remainder of $2,165,000 being 2006 capital projects. Attachment 1 provides a detailed breakdown of all projects funded by external debentures. The external borrowing rate will be determined by the capital markets at the time of the issuance of the debentures. Revised debenture amount on OES 32-06 Sandy Beach Road Bridqe Replacement Under Report to Council OES 32-06, recommendation 4(b), the sum of $1,050,000 was identified as the required debenture amount. However, due to funds received from "Move Ontario" from the provincial government, Report to Council CS16-06, under recommendation 6 (b) & (c) with further details under heading "2006 Provincial Government Budget Announcement" provided a change in funding for the above project Report CS 08-07 January 22, 2007 Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the C G /~ Issuance of Debentures Page 4 with a reduction in debt by $333,335. Thus, the required external borrowing will be reduced to $715,000. The revised financing for this project will be as follows: 10- Year Current COMRIF "Move Ontario " Total Debt Funds Grant Reserve $715,000 9,153 666,665 333,335 $1,724,153 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 debts outstanding for December 31, 2006 is $15,026,389. However, with the anticipated issue by the Region sometime in February or March of 2007, the projected outstanding amount net of 2007 principal repayment as at December 31, 2007 would be increased to $15,129,566. Please refer to Attachment 3. Sustainability Implications: This financing is necessary to provide the financial means to sustain the City's capital investments in infrastructure. 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 2006 and prior years capital projects are projected at $5,097,389 for year end 2006. Such internal borrowings require appropriate approvals and documentation in accordance with the Municipal Act 2001, 8418 and the Development Charges Act 1997, 0. Reg. 82/985.12(2)3,4,5. The necessary documentation including Promissory Notes indicating the amount, term, interest rate and other relevant information relating to the internal loans and their repayments has been completed. Normally, all external debt requested by an area municipality is issued through the Regional Municipality 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. Report CS 08-07 January 22, 2007 ('6.) Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the Issuance of Debentures Page 5 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 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 $24,000 have been included in the 2006 Current Budget for the 2006 capital projects, however due to the timing of this issue, the amount will be re-budgeted in 2007. This cost represents commissions, legal fees, and 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: 1. 2007 External Debentures through The Regional Municipality of Durham 2. 2006 Internal Loans Funded by Development Charges Reserve Fund 3. Total Projected Internal Loans & External Debentures Outstanding as at December 31 , 2007 4. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $170,000 for the Supply and Delivery of a 4 Ton Dump Truck 5. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $240,000 for the Supply and Delivery of a Street Sweeper 6. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $110,000 for the Supply and Delivery of a Multipurpose Single Person Refuse Packer 7. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $175,000 for the Supply and Delivery of a 4 Ton Dump Truck 8. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $715,000 for the Sandy Beach Road Bridge Replacement and Road Reconstruction 9. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount of $930,000 for Addition to Fire Services Division Headquarters Report CS 08-07 January 22, 2007 Subject: Final Approval for Financing of Council Approved Capital Projects - External Borrowing Through the C G. t Issuance of Debentures Page 6 Prepared By: Approved I Endorsed By: Caryn Kong Senior Financial Analyst ~/<~:::-/' ~~" ~~:::"-" ~~?C ,,-~ """':;;,...-. .~~. " I ~-_. . . . ::-\;r' I~ . P~terson - - Director, Corporate Services & Treasurer GAP:ck Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council // +' III o l.l +' l.l III .OJ +' 0 o ... 1-0.. III cn"g OJ ::l ~u. ~ ui OJ OJ rx:rx: II. D:: ... :E~ O+' 00 +' C ~'tl ... C ::l ::l 011. +' +' c.c ::l OJ 00 E.... <( 0 +' OJ Cl... 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C.':; rf?- 0 1 '\ (l ~' bC} 2001-2003 2004 2005 2006 2007 Dec. 31,2007 Original Principal Principal Principal Principal Principal Outstanding Amount Repayment Repayment Repayment Repayment Repayment Balance Internal Loans 2001 Issue $7,677,000 ($2,168,471) ($738,935) ($857,543) ($727,050) ($746,111 ) $2,438,890 2002 Issue 1,224,000 (98,180) (103,836) (195,095) (120,236) (125,427) 581 ,226 2003 Issue 349,071 0 (27,495) (29,963) (31,233) (32,598) 227,782 2004 Issue 267,000 0 0 (28,125) (29,245) (30,442) 179,188 2005 Issue 287,000 0 0 0 (53,275) (55,262) 178,463 2006 Issue 502,000 (113,994) 388,006 2007 Issue* Total Internal Loans $10,306,071 ($2,266,651 ) ($870,266) ($1,110,726) ($961,039) ($1,103,834) $3,993,555 0 External Debentures 2002 Issue $4,278,000 ($252,000) ($266,000) ($280,000) ($294,000) ($311,000) $2,875,000 2003 Issue 3,494,000 0 0 (351,000) (369,000) (387,000) 2,387,000 2004 Issue 1,537,000 0 0 (176,000) (184,000) (192,000) 985,000 2006 Issue 2,792,000 0 0 0 0 (242,989) 2,549,011 2007 Issue 2,340,000 0 0 2,340,000 Total Ext. Debentures $14,441,000 ($252,000) ($266,000) ($807,000) ($847,000) ($1,132,989) $11,136,011 Total Projected Loans & Debentures $24,747,071 ($2,518,651 ) ($1,136,266) ($1,917,726) ($1,808,039) ($2,236,823) $15,129,566 * Figures for 2007 Internal loans unavailable at this time, CS 08ck-Attachment 3,xls Total-RTC 2006 , ii,..i_..lO REPORT#~8'07 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. n6."" \..' . ..:) Being a by-law to confirm the authorization of the issuance of debentures in the amount of $170,000 for the supply and delivery of a 4 Ton Dump Truck in the City of Pickering WHEREAS Section 11 of the Municipal Act, 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 25-06 at its meeting of June 19, 2006 pursuant to Resolution 81/06 and awarded Quotation Q-20-2006 for the supply and delivery of a 4 Ton Dump Truck at that meeting; and, WHEREAS the Council of the City is proceeding with the supply and delivery of a 4 Ton Dump Truck in the City of Pickering; and, AND WHEREAS before the Council of the City authorized the supply and delivery of a 4 Ton Dump Truck, 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 supply and delivery of a 4 Ton Dump Truck in the amount of $170,975 be financed as follows: a) That the sum of $170,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five (5) years; "\ 1"'..1 ~, l.jd -b) That the balance of $975 be funded from the 2006 Current Budget; 2. That the funds to repay the principal and interest of the debentures be provided for in the annual Current Budget for the City commencing in 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed this 5th day of February, 2007. Mayor City Clerk . ;.._$".. ' REPORT #9- o~~!J1 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. "7' -' L; 1 Being a by-law to confirm the authorization of the issuance of debentures in the amount of $240,000 for the supply and delivery of a Street Sweeper project in the City of Pickering. WHEREAS Section 11 of the Municipal Act 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 36-06 at its meeting of October 3, 2006 pursuant to Resolution 140/06 and awarded Quotation Q-41-2006 for the supply and delivery of a Street Sweeper at that meeting; and, WHEREAS the supply and delivery of a Street Sweeper has been completed; and, AND WHEREAS before the Council of the City authorized the supply and delivery of a Street Sweeper, 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 supply and delivery of a Street Sweeper in the amount of $259,400 be financed as follows: a) That the sum of $240,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed five (5) years; '1.7'- l: 1- b) That the balance of $19,400 be funded from the 2006 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 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed the 5th day of February, 2007. Mayor City Clerk '...._.ACHtk. , / I", I ,"l!::l\ :;" ...~ 'I #~Or~o7 THE CORPORATION OF THE CITY OF PICKERING BY-lAW NO. "7 " l: .) Being a by-law to confirm the authorization of the issuance of debentures in the amount of $110,000 for supply and delivery of a Multipurpose Single Person Refuse Packer in the City of Pickering. WHEREAS Section 11 of the Municipal Act, 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 26-06 at its meeting of July 24, 2006 pursuant to Resolution 110/06 and awarded Quotation Q-42-2006 for the supply and delivery of a Multipurpose Single Person Refuse Packer at that meeting; and, WHEREAS the supply and delivery of a Multipurpose Single Person Refuse Packer has been completed; and, AND WHEREAS before the Council of the City authorized the supply and delivery of a Multipurpose Single Person Refuse Packer 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: 1. That the estimated costs of the supply and delivery of a Multipurpose Single Person Refuse Packer in the City of Pickering in the amount of $111,720 be financed as follows: " 7 l' l; '1:a) That the sum of $110,000 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 sum of $1,720 be funded from the 2006 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 of Pickering commencing in 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed the 5th day of February, 2007. Mayor City Clerk . 1 .,,}ORT#~r-07 THE CORPORATION OF THE CITY OF PICKERING BY-lAW NO. '\ 7 F- e: :) Being a by-law to confirm the authorization of the issuance of debentures in the amount of $175,000 for the supply and delivery of a 4 Ton Dump Truck in the City of Pickering. WHEREAS Section 11 of the Municipal Act, 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 30-05 at its meeting of September 19, 2005, pursuant to Resolution 156/05 and awarded Quotation Q-36- 2005 for the supply and delivery of a 4 Ton Dump Truck in the City of Pickering at that meeting; and, WHEREAS the supply and delivery of a 4 Ton Dump Truck has been completed; and, AND WHEREAS before the Council of the City authorized the supply and delivery 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: 1. That the estimated costs of the supply and delivery of a 4 Ton Dump Truck in the City of Pickering in the amount of $175,962 be financed as follows: C7G (a) That the sum of $175,000 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 remaining sum of $962 be funded from the 2006 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 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed the 5th day of February, 2007. Mayor City Clerk ~'.".,. ~.;~ ; ? , REPORT # Cs.2F -07 THE CORPORATION OF THE CITY OF PICKERING BY-LAW NO. 'I 7 ~~ l: ( Being a by-law to confirm the authorization of the issuance of debentures in the amount of $715,000 for the Sandy Beach Road Bridge Replacement and Road Reconstruction project in the City of Pickering. WHEREAS Section 11 of the Municipal Act, 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 32-06 at its meeting of October 3,2006 pursuant to Resolution 140/06 and awarded Tender T-12-2006 for the Sandy Beach Road Bridge Replacement and Road Reconstruction project at that meeting; and, WHEREAS the Council of the City is proceeding with the Sandy Beach Road Bridge Replacement and Road Reconstruction project in the City of Pickering; and, AND WHEREAS before the Council of the City authorized the Sandy Beach Road Bridge Replacement and Road Reconstruction 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 Sandy Beach Road Bridge Replacement and Road Reconstruction project in the amount of $1,724,153 be financed as follows: a) That the sum of $715,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed ten (10) years; C: 7 G b) That the sum of $~333,335 be funded from the "Move Ontario" Reserve; c) That the sum of $666,665 be funded from the Canada Ontario Municipal Rural Infrastructure (COMRIF) Grant Intake 2; d) That the balance amount of $9,153 be funded from the 2006 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 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed the 5th day of February, 2007. Mayor City Clerk }'l ACH;"ltl ,;1 __( THE CORPORATION OF THE CITY OF PICKERING ;i. C-~ or;-o7 BY-lAW NO. ""7'''"''' r ;_j 1.... V Being a by-law to confirm the authorization of the issuance of debentures in the amount of $930,000 for the Addition to Fire Services Division Headquarters project in the City of Pickering. WHEREAS Section 11 of the Municipal Act 2001, as amended, provides that a lower- tier municipality may pass by-laws respecting matters within the spheres of jurisdiction 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 approved Report OES 27-06 at its meeting of September 11, 2006 pursuant to Resolution 121/06 and awarded Tender T-14-2006 for the Addition to Fire Services Division Headquarters project at that meeting; and, WHEREAS the Council of the City is proceeding with the Addition to Fire Services Division Headquarters project in the City of Pickering; and, AND WHEREAS before the Council of the City authorized the Addition to Fire Services Division Headquarters 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: 1. That the estimated costs of the Addition to Fire Services Division Headquarters project in the amount of $1,347,000 be financed as follows: a) That the sum of $930,000 be financed by the issue of debentures by The Regional Municipality of Durham over a period not to exceed twenty (20) years; b) That the sum of $417,000 be funded from the Development Charges Reserve '\ f' . - Fund; l:Od 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 2007 and continuing thereafter until the loan is repaid. By-law read a first, second and third time and finally passed the 5th day of February, 2007. Mayor City Clerk