The URL can be used to link to this page

Home My WebLink AboutCS 04/99 -;-- III/k. ,\I'" OF PiC :;;olflo~ T% 1: iIJ~ Z I- Gl ~ REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: December 6, 1999 REPORT NUMBER: CS 04/99 SUBJECT: 2000 Temporary Borrowing By-Law RECOMMENDA TION: It is recommended that Report CS 04/99 of the Director, Corporate Services & Treasurer be recei ved and that: 1. the temporary borrowing limit to meet 2000 current and capital expenditures pending receipt of taxes and other revenues be established at $18,000,000 for the period January 1, 2000 to September 30, 2000 inclusive, and $6,600,000 thereafter until December 31,2000; 2. the temporary borrowing limit for capital purposes for 2000 be established at $7,000,000; - 3. the altached By-Law be read three times and passed; and, 4. the appropriate Town of Pickering officials be authorized to take the necessary actions to give thereto. ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: The Municipal Act R.S.O. 1990, as amended, Section 187 and 188. FINANCIAL IMPLICATIONS: At this time it is difficult to estimate the interest costs as it is uncertain how much temporary financing may be required and for how long. An estimate will be provided at a later date in the 2000 Current Budget. In past years no extemal temporary borrowings have been necessary, however, there have been intemal borrowings. EXECUTIVE SUMMARY: - Not applicable. Report to Council CS 04/99 Date: December 6, 1999 Subject: 2000 Tempor.ary Borrowing By-Law Page 2 - \ BACKGROUND: The borrowing of funds for current and capital purposes may become necessary during the normal course of operations during 2000. Under the provisions of Section 187 of the Municipal 1\ct, R.S.O. I l)t)(), (the 1\ct), the Council of the Town of Pickering may pass a by-law to provide lor the temporary bOlTowing of funds to meet current operating expenditures pending receipt of taxes and other revenues of the Town Under Section 188 of the Act the Corporation may also undertakc tcmporary borrowings, undcr individual project approvals, for capital projects pending permancnt financing, including the issuance of debentures by the Region. Current Budget Financing: The amount of such temporary borrowing outstanding at anyone time is generally limited by the Act, unless otherwise approved by the Ontario Municipal Board, to 50 per cent of the estimated annual rCVCllUCS from Jalluary I to Scptcmber 30 and to 25 per cent thereafter. ---- - Until the current year's estimates are adopted, the limitation may be calculated upon the revenues set forth in the estimates auoptcd for the next preceuing year, Based upon the 1999 estimates of the Corporation, the allowable level of temporary borrowing outstanding under legislation is estimated at S \8,000,000 from January I to September 30 and $6,600,000 thereafter. - The requested $18,000,000 should be sufficient to meet the current expenditures of the Town until the levies for 2000 arc received. It is hoped that this amount will provide more than a sufficient level of temporary borrowings taking into account the potential effects of Bill 79 (Capping Legislation) and its impact on cash flows. Capital Budget Financing: Borrowing for capital purposes under Section 188 of the Act can only be undertaken on projects approved by Council and will only be undertaken in the event that sufficient funds are not available at the time they are required. Recommendation 2 provides the authority for the Town to obtain additional temporary interim financing (internal or external) for capital projects approved by Council. The $7 million capital borrowing limit would provide sufficient funds to cover 1998, 1999 and estimated 2000 capital expenditures. ATTACHMENTS: I. Temporary Borrowing By-Law Prepared / Approved / Endorsed By: ~ .~ ./. .- ~._- <- ----- ~ ~ Gillis A. Paterson, Director, Corporate Services & Treasurer .- GAP:vw Attachment .1,-, Recommended for the consideration of Pickering Town Council " I J .::) ; \r,>~ ~ I 1~; ATTACtfHENT...LTOREPORT# (s OJ/{cN THE CORPORATION OF THE TOWN OF PICKERING ".... BY-LAW NO. Being a by-law to authorize the temporary borrowing of moneys to meet the cunent and capital expenditures of The Town of Pickering for the year 2000. WHEREAS Section 187 of the Municipal Act provides that the Council of The Town of Pickering may by by-law authorize the Mayor and Treasurer of the Municipality to borrow from time to time by way of promissory note such sums as the Council may deem necessary to meet, until the taxes for the current year are received, the current expenditures of the Municipality for the year, including the amounts required for principal and interest falling due within the year upon any debt of the Municipality, and the sums required by law to be provided by the Council for any local board of the Municipality; and, WHEREAS Section 187(2) limits the total of such borrowings to not exceeding 50 per cent of the estimated annual revenues from January I, 1999 to September 30, 1999 and 25 per cent thereafter; and, .... WHEREAS it is deemed necessary by the said Council to borrow the sum of eighteen million dollars ($18,000,000) to meet, until the taxes for the currcnt year are received, the current expenditures of the Municipality for the year 2000, including the amounts and sums aforesaid; and, WHEREAS the said sum of eighteen million dollars ($18,000,000) plus any similar borrowings that have not been repaid, is less than 50 per cent of the total amount of the estimated revenues of the Municipality from January I to September 30 as set forth in the estimates adopted by the said Council for the year 1999 exclusive of revenues derivable from the sale of assets, borrowings or issues of debentures or from a surplus including arrears of levies and $6,600,000 is less than 25 per cent thereafter; and, WHEREAS Section 188 of the Municipal Act provides that if a municipality has by by-law approved an undertaking to be financed in whole or in part by incurring long-telm debt, the council may by by-law authorize temporary borrowing to meet expenditures made in connection with the undertaking; and, WHEREAS it is deemed necessary by the said Council to borrow the sum of seven million dollars ($7,000,000) to meet the capital expenditures approved by Council. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF PICKERING HEREBY ENACTS AS FOLLOWS: 1. The Mayor and Treasurer of The Town of Pickering be and they are hereby authorized to borrow from time to time by way of promissory notes a sum or sums not exceeding eighteen million dollars ($18,000,000) to meet, until the levies for the year 2000 are received, the current expenditures of the Municipality for such year, including the amounts required for principal and interest falling due within the year upon any debt of the Municipality for the period January I, 2000 to September 30, 2000 inclusive and $6,600,000 thereafter until December 31,2000. - 2. The Mayor and Treasurer of the Town of Pickering be and they are hereby authorized to borrow from timc to timc by way of promissory notcs a sum or sums not cxcceding in all the sum of seven million dollars ($7,000,000) to meet the capital expenditures as approved by Council, of the Municipality including the amounts required for principal and interest. ,;., 3. Any promissory notes made under the authority of this By-Law shall be sealed and signed in accordance with the provisions of the Municipal Act and may be countersigned in writing by the Deputy Treasurer of the Corporation in accordance with the provisions of the said Act. BY-LA W read a first, second and third time and finally passed this day of ,1999. Wayne Arthurs, Mayor Bruce Taylor, Clerk - \ -