HomeMy WebLinkAboutCS 44-07
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 44-07
Date: October 9,2007
J fit
91
From:
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
Debentures
Recommendation:
1. That Report CS 44-07 from the Director, Corporate Services & Treasurer be
approved;
2. That Council approve the internal loans of up to $597,000 to be borrowed 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. 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 $2,070,000
for the projects listed on Attachment 2 in the indicated amounts, for the
following terms;
Terms Amount
5- Year $ 210,000
10- Year 980,000
15-Year 880,000
Total $ 2,070,000
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;
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Report CS 44-07
October 9,2007
Subject: Final Approval for Financing of Council Approved
Capital Projects - External Borrowing Through the
9 2 Issuance of Debentures
Page 2
i .
d) make any changes, adjustments, and reVISions to amounts, terms and
conditions or any other actions necessary in order to effect the above
directions of Council;
4. That the costs of undertaking the financing, currently estimated at up to
approximately $20,000, be charged to the 2007 Current Budget, General
Government Loan Repayment;
5. That the estimated annual repayment costs of principal and interest for both
internal loans and external debentures amounting to approximately $369,000 be
included in the 2008 Current Budget and thereafter until the loan is repaid;
6. 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;
7. That 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;
8. 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;
9. That the attached draft by-laws, providing for the authorization for the issuance of
debentures, be enacted; and,
10. 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 serves as that final formal approval and
Corporate Services will complete all the necessary documentation. The 2005 to 2007
approved debt financed capital projects will be funded by the issuance of debentures
through the Regional Municipality of Durham as per Attachment 2. 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
Report CS 44-07
October 9, 2007
Subject: Final Approval for Financing of Council Approved
Capital Projects - External Borrowing Through the
Issuance of Debentures
Page 3
93
as arranged in the capital markets as was approved by Council for the 2005 and 2007
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 2007 as established
by the Province for municipalities in Ontario.
Financial Implications:
Total Cost of All Proiects
In addition to debenture financing, these projects are also funded by other sources of
funds.
The breakdown of the various sources of funds is as follows:
Sources Debenture COMRIF "Move Current Funds Total
s Grant Ontario" Costs
Reserve
Amount $2,070,000 372,525 375,000 6,880 $2,824,405
Other than .debenture financing of $2,070,000, the combined total of all other sources of
funds is $754,405. The grand total cost of all these projects is $2,824,40. Attachment 2
provides further detailed breakdown of all other sources of funding.
Internal Loans
The 2007 Capital Budget included internal loans in the amount of $803,000 out of
which, $597,000 has been identified as required. Attachment 2 provides the detailed
breakdown on these internal loans.
The combined estimated principal and interest payment for the above internal loans are
$106,325 and payment will commence in 2008. 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 2008.
The internal borrowing rate is normally determined by using the Ontario Strategic
Infrastructure Financing Authority's (OSIFA)'s rates and other comparable municipal
borrowing as a guideline or benchmark. The table below provides a comparison of what
is available in the market at this time.
Report CS 44-07
October 9,2007
Subject: Final Approval for Financing of Council Approved
Capital Projects - External Borrowing Through the
. I I I 9 4 Issuance of Debentures
Page 4
Terms Region's Last OSIFA-As of Sept. 14, Other Municipal
Issue-Feb. 2007 2007 Serial Debentures Benchmark- Averages
Sept. 2007
3- Year None None 4.718
5- Year 4.30 4.75 4.704
8- Year 4.45 None None
10-Year 4.50 4.89 5.058
At the time of writing, the financing market is going through uncertain times due to the
subprime situation occurring in the United States. The current state of credit market
would suggest that the rates for the internal loans not be officially determined at this
time. The official rates will be determined based on either any forthcoming fall
debenture issue by the Regional Municipality of Durham or market rates at the time of
official borrowing in December 2007.
External Debts
The total of all external debentures requested for the fall 2007 is $2,070,000;
Attachment 2 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.
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 debentures outstanding for December 31,
2007 is $17,796,566. 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 2007 and prior years capital projects are projected at $4,590,555 for year end
2007. Such internal borrowings require appropriate approvals and documentation in
Report CS 44-07
October 9, 2007
Subject: Final Approval for Financing of Council Approved
Capital Projects - External Borrowing Through the
Issuance of Debentures
Page 5
95
accordance with the Municipal Act 2001, S401 (1) and the Development Charges Act
1997, S36 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 debenture 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.
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 (Le. issued as a
premium) or excess funds resulting once project costs are complete and final.
The costs of financing of approximately $20,000 have been included in the 2007
Current Budget for the 2007 capital projects. 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. Fall 2007 External Debentures through The Regional Municipality of Durham
2. 2007 Internal Loans To be Borrowed from the 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 $210,000 for the Supply and Delivery of a 5 Ton Dump Truck with snow plow
and wing
5. By-law to Confirm the Authorization of the Issuance of Debentures in the amount
of $124,000 for the Storington Pedestrian Bridge Replacement, Pine Creek
6. By-law to Confirm the Authorization of the Issuance of Debentures in the amount
of $615,000 for the Bulmer Bridge and Reesor Bridge Rehabilitation
7. By-law to Confirm the Authorization of the Issuance of Debentures in the amount
of $241,000 for the Old Brock Road, Claremont Road Reconstruction
Report CS 44-07
October 9, 2007
Subject: Final Approval for Financing of Council Approved
Capital Projects - External Borrowing Through the
9 6 Issuance of Debentures
Page 6
8. By-law to Confirm the Authorization of the Issuance of Debentures in the Amount
of $880,000 for the Sheppard Avenue, Reinforced Soil System
Prepared By:
Approved I Endorsed By:
~~
-- GilliS A.Paterson
Director, Corporate Services & Treasurer
~~~
Caryn Kong
Senior Financial Analyst
GAP:ck
Attachments
Copy: Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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"'A~NT#....L TO REPORT # c. s ~r+-o7
2007 Budget
Cost Centre Proiect Number Reference Terms Description Amount
Fire 5340.0702.6173 Various pas 5-Year Furniture & Equipment $ 150,000
07-2240-002-01 for Station 5 addition
Parks 5780.0701.6129 OES 39-07 10-Year Repair & Resurface Bev 134,000
07 -2718-001-01 Morgan running track
5780.0712.6178 OES 23-07 5- Year Two Utility Tractors 86,000
07-2718-004-01
Civic Complex 5700.0704.6181 8-Year Pattern Concrete-Entrance 38,000
07 -2124-005-01 Civic Complex
Arena 5715.0703.6181 PO 270468 5-Year Replacement of concrete 50,000
07-2715-005-02 floor on Pad 2-Don Beer
Design only
Community Centre 5719.0702.6181 OES 34-07 10-Year Repave parking lot 139,000
07-2719-005-05 Westshore
Comm Ctr
Total Internal Loans $ 597,000
Repayment of loans commencing in 2008
2007 Debts & Internal Loans.xls
Internal Loans-RTC
25/09/2007
Budget Amount COMRIF "Move Ont." Current Total
Year Project Number Terms Reference Description of Debt Grant Reserve Fund Project costs
Roads
2007 5320.0703.6158 5-yr
OES 22-07 Supply and delivery of a
Q-19-2007 5 Ton Dump Truck with snow
Res. 113/07 May 22,2007 plow and wing
Total- 5-Yr
$210,000
$0
$1,866
$211,866
$1,866
$210,000
$0
$0
Property Maintenance
2006 5311.0606.6181 10-yr OES 01-07 Storington Pedestrian Bridge
Res. 07/07 Jan. 15,2007 Replacement, Pine Creek
Q-57-2006
Roads
2005& 5320.0509.6250 10-yr OES 16-07 Bulmer Bridge and Reesor Bridge
2007 5320.0510.6250 T-1-2007 Rehabilitation
Res 88/07 April 16,2007
Roads
2006& 5320.0619.6250 10-yr OES 17-07 Old Brock Road, Claremont
2007 5320.0710.6250 T-3-2007 Road Reconstruction
Res 89/07 April 16, 2007
Total-10-Yr
Roads
2005& 5320.0514.6250 15-yr OES 36-07 Sheppard Avenue, Reinforced
2007 5320.0711.6250 T-2-2007 Soil System
Res 179/07 Sept.17,07
Total-15-Yr
Total External Debentures
$124,000
$729
615,000
372,525
100,000
914
241,000
275,000
1,685
$211,866
$124,729
$1,088,439
$517,685
$980,000
$3,328
$1,730,853
$372,525
$375,000
$880,000
$0
$0
$1,686
$881,686
$880,000
$1,686
$881,686
$0
$0
$2,070,000
$372,525
$375,000
$6,880
2007 Debts & Internal Loans.xls
External Debt-RTC
$2,824,405
25/09/2007
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.3 1'"~ REPORT # ~~'f'+~ u 7
99
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 597,000 597,000
Total Internal
Loans $10,903,071 ($2,266,651) ($870,266) ($1,110,726) ($961,039) ($1,103,834) $4,590,555
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
Winter 2007 Reques 2,340,000 0 0 2,340,000
Fall 2007 Request 2,070,000 2,070,000
Total Ext.
Debentures $16,511,000 ($252,000) ($266,000) ($807,000) ($847,000) ($1,132,989) $13,206,011
Total Projected
Loans &
Debentures $27,414,071 ($2,518,651 ) ($1,136,266) ($1,917,726) ($1,808,039) ($2,236,823) $17,796,566
CS 44ck-Attachment 3.xls
Total-RTC 2006
}.\lTACHlvIEf.
TO REPORT # (:S .:..1"1.- tY-
_l j
1 0 0 THE CORPORATION OF THE CITY OF PICKERING
BY-lAW NO.
Being a by-law to confirm the authorization of the
issuance of debentures in the amount of $210,000 for
the supply and delivery of a 5 Ton Dump Truck with snow
plow and wing 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 22-07 at its meeting of May
22, 2007 pursuant to Resolution 113/07 and awarded Quotation Q-19-2007 for the
supply and delivery of a 5 Ton Dump Truck with snow plow and wing at that meeting;
and,
WHEREAS the Council of the City is proceeding with the supply and delivery of a 5 Ton
Dump Truck with snow plow and wing in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the supply and delivery of a
5 Ton Dump Truck with snow plow and wing, 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 5 Ton Dump Truck with
snow plow and wing in the amount of $211,866 be financed as follows:
a) That the sum of $210,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed five (5) years; 1 0 1
b) That the balance of $1,866 be funded from the 2007 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 2008 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed this 15th day of October,
2007.
Mayor
City Clerk
ATTACHI""iEi'.'!
# =r.:i",'/'f' J1
1 0 2 THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
Being a by-law to confirm the authorization of the issuance
of debentures in the amount of $124,000 for the Storington
Pedestrian Bridge Replacement, Pine Creek 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 01-07 at its meeting of
January 15, 2007 pursuant to Resolution 07/07 and awarded Quotation Q-57-2006 for
the Storington Pedestrian Bridge Replacement, Pine Creek at that meeting; and,
WHEREAS the Storington Pedestrian Bridge Replacement, Pine Creek has been
completed; and,
AND WHEREAS before the Council of the City authorized the Storington Pedestrian
Bridge Replacement, Pine Creek, 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 Storington Pedestrian Bridge Replacement, Pine
Creek in the amount of $124,729 be financed as follows:
a) That the sum of $124,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years;
103
b) That the balance of $729 be funded from the 2007 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 2008 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed the 15th day of October,
2007.
Mayor
City Clerk
.'p
#~~5.9l.I~07
1 0 4 THE CORPORATION OF THE CITY OF PICKERING
BY-LAW NO.
Being a by-law to confirm the authorization of the issuance
of debentures in the amount of $615,000 for the Bulmer
Bridge and Reesor Bridge Rehabilitation 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 16-07 at its meeting of April
16, 2007 pursuant to Resolution 88/07 and awarded Tender T-1-2007 for the Bulmer
Bridge and Reesor Bridge Rehabilitation at that meeting; and,
WHEREAS the Council of the City is proceeding with the Bulmer Bridge and Reesor
Bridge Rehabilitation in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the Bulmer Bridge and
Reesor Bridge Rehabilitation 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 Bulmer Bridge and Reesor Bridge Rehabilitation
in the City of Pickering in the amount of $1,088,439 be financed as follows:
a) That the sum of $615,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) years; 1 0 5
b) That the sum of $372,525 be funded from the Canada Ontario Municipal
Rural Infrastructure Fund (COMRIF);
c) That the sum of $100,000 be funded from the "Move Ontario" ReseNe;
d) That the balance sum of $914 be funded from the 2007 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 2008
and continuing thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed the 15th day of October,
2007.
Mayor
City Clerk
ATTACH~ijEI'i.....
JI'"l
#J~""2....Lit.( "O.}
106
THE CORPORATION OF THE CITY OF PICKERING
BY-lAW NO.
Being a by-law to confirm the authorization of the issuance
of debentures in the amount of $241,000 for the Old Brock
Road, Claremont Road Reconstruction 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 17-07 at its meeting of April
16, 2007, pursuant to Resolution 89/07 and awarded Tender T-3-2007 for the Old
Brock Road, Claremont Road Reconstruction in the City of Pickering at that meeting;
and,
WHEREAS the Council of the City is proceeding with the Old Brock Road, Claremont
Road Reconstruction in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the Old Brock Road,
Claremont Road Reconstruction 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 Old Brock Road, Claremont Road
Reconstruction in the City of Pickering in the amount of $517,685 be financed as
follows:
(a)
That the sum of $241,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed ten (10) 1 0 7
years;
That the sum of $275,000 be funded from the "Move Ontario" Reserve;
(b)
(c)
That the remaining sum of $1,685 be funded from the 2007 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 2008 and continuing
thereafter until the loan is repaid.
By-law read a first, second and third time and finally passed the 15th day of October,
2007.
Mayor
City Clerk
('?
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# !di~(,Jtf.'-.) ,-
THE CORPORATION OF THE CITY OF PICKERING
108
BY-lAW NO.
Being a by-law to confirm the authorization of the issuance
of debentures in the' amount of $880,000 for the Sheppard
Avenue, Reinforced Soil System 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 36-07 at its meeting of
September 17, 2007 pursuant to Resolution 179/07 and awarded Tender T-2-2007 for
the Sheppard Avenue, Reinforced Soil System at that meeting; and,
WHEREAS the Council of the City is proceeding with the Sheppard Avenue, Reinforced
Soil System in the City of Pickering; and,
AND WHEREAS before the Council of the City authorized the Sheppard Avenue,
Reinforced Soil System, 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 Sheppard Avenue, Reinforced Soil System in the
amount of $881,686 be financed as follows:
a) That the sum of $880,000 be financed by the issue of debentures by The
Regional Municipality of Durham over a period not to exceed fifteen (15)
years;
b) That the balance amount of $1,686 be funded from the 2007 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 2008 and continuing
thereafter until the loan is repaid.
109
By-law read a first, second and third time and finally passed the 15th day of October,
2007.
Mayor
City Clerk