THE CORPORATION OF THE TOWNSHIP
OF STRONG
BY-LAW NUMBER 2010-012
a
By-law to authorize CERTAIN CAPITAL WORKS OF THE CORPORATION OF THE TOWNSHIP OF
STRONG (THE
“MUNICIPALITY”); TO AUTHORIZE THE SUBMISSION OF AN APPLICATION TO THE ONTARIO INFRASTRUCTURE Projects
corporation (“OIPC”) FOR FINANCING SUCH CAPITAL WORKS; TO AUTHORIZE TEMPORARY BORROWING FROM OIPC
TO MEET EXPENDITURES IN CONNECTION WITH SUCH WORKS; AND TO AUTHORIZE LONG TERM
BORROWING FROM OIPC FOR SUCH WORKS THROUGH THE ISSUE OF debentures
WHEREAS the Municipal Act, 2001 (
AND WHEREAS it is
now deemed to be expedient to authorize for the municipal purposes of the
Municipality the new capital works described in column (2) of Schedule “A”
(individually a “Project”,
collectively the “Project”) attached
hereto and forming part of this By-law (“Schedule
“A”) in the amount of the estimated expenditure set out in column (3) of
Schedule “A”, subject in each case to approval by OIPC of the financing for
such Projects that will be requested by the Municipality in the Application as
hereinafter described;
AND WHEREAS in
accordance with section 4 of Ontario Regulation 403/02, the Council of the
Municipality has had its Treasurer update its most recent annual debt and
financial obligation limit received from the Ministry of Municipal Affairs and
Housing (as so updated, the “Updated
Limit”), and, on the basis of the authorized expenditure for each Project
as set out in column (3) of Schedule “A” (“Authorized
Expenditure”), the Treasurer has calculated the estimated annual amount
payable in respect of each Project (collectively the “Project Limits”) and has determined that the aggregate of the Project Limits does not exceed the Updated
Limit, and accordingly the approval of the Ontario Municipal Board under the Ontario Municipal Board Act (Ontario),
as amended, is not required before any such Project is authorized by Council;
AND WHEREAS subsection 405(1) of the Act provides that a municipality may authorize temporary borrowing to meet expenditures made in connection with a work to be financed in whole or in part by the issue of debentures if,
(a) the municipality is an upper-tier municipality, a lower-tier municipality in a county or a single-tier municipality and it has approved the issue of debentures for the work;
(b) the municipality is a lower-tier municipality in a regional municipality and it has approved the work and the upper-tier municipality has approved the issue of debentures for the work; or
(c)
the municipality has approved the issue of
debentures for another municipality or a school board under section 404;
AND WHEREAS subsection 401(1) of the Act provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way, and may issue debentures and prescribed financial instruments and enter prescribed financial agreements for or in relation to the debt;
AND WHEREAS the Act also provides that a municipality shall authorize long term borrowing by the issue of debentures or through another municipality under section 403 or 404 of the Act;
AND WHEREAS OIPC has invited Ontario municipalities desirous of obtaining temporary and long term debt financing in order to meet capital expenditures incurred after December 31, 2003 in connection with eligible capital projects to make application to OIPC for such financing by completing and submitting an application on the form provided by OIPC (the “Application”);
AND WHEREAS the Municipality has submitted an Application to OIPC to request financing for the Projects by way of long term borrowing through the issue of debentures to OIPC and by way of temporary borrowing from OIPC pending the issue of such debentures;
AND WHEREAS OIPC has accepted and has approved the municipality’s application;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWNSHIP OF STRONG ENACTS AS FOLLOWS:
1.
The
Council of the Municipality hereby confirms, ratifies and approves the
completion by the Clerk/Treasurer of an Application and the submission by such authorized
official of an Application,
duly executed by such authorized official, to OIPC for the financing of the Projects in
the maximum aggregate principal amount of $ 395,376.11 substantially in the form
of Schedule “B” hereto and forming part of this By-law, with such changes
thereon as such authorized official approved.
2. (a) Construction of each Project in the amount of the respective estimated Authorized Expenditure set out in column (3) of Schedule “A” is hereby approved and authorized;
(b) any one or more of the Mayor and the Clerk/Treasurer are hereby authorized to conclude contracts on behalf of the Municipality for the construction of the Projects in accordance with the Municipality’s usual protocol;
(c)
where
applicable, the Engineer of the Municipality will forthwith make such plans,
profiles and specifications and furnish such information as in the opinion of
the Engineer is necessary for the construction of the Projects; and
(d)
where
applicable, the construction of the Projects shall be carried on and executed
under the superintendence and according to the direction and orders of such
Engineer.
3.
The
Mayor and Clerk/Treasurer are hereby authorized to negotiate and enter
into, execute and deliver for and on behalf of the Municipality a financing
agreement (a “Financing Agreement”)
with OIPC that provides for temporary and long term borrowing from OIPC in respect
of the Projects on such terms and conditions as such authorized officials may
approve, such execution and delivery to be conclusive evidence of such
approval.
4.
The Mayor and/or Clerk/Treasurer are hereby
authorized, pending the substantial completion of a Project or as otherwise agreed with OIPC, to make temporary borrowings
pursuant to section 405 of the Act in respect of each Project, on the terms and
conditions provided in the Financing Agreement and on such other terms and
conditions as such authorized officials may agree, and to sign such evidence of
indebtedness as OIPC may require (a “Note”);
and the Treasurer is authorized to sign such certifications as OIPC may require
in connection with such borrowings in respect of the Projects; provided that the
amount of borrowings allocated to any Project does not exceed the Authorized
Expenditure for such Project and does not exceed the loan amount set out in
column (4) of Schedule “A” in respect of such Project.
5.
Subject to the terms and conditions of the Financing
Agreement and such other terms and conditions as OIPC may otherwise require, The
Mayor and the Clerk/Treasurer are hereby authorized to enter into long term
borrowing in respect of the Projects and to issue debentures to OIPC on the
terms and conditions provided in the Financing Agreement and on such other
terms and conditions as such authorized officials may agree (“Debentures”); provided that the
principal amount of such Debentures issued in respect of a Project does not
exceed the Authorized Expenditure for such Project and does not exceed the loan
amount set out in column (4) of Schedule “A” in respect of such Project.
6.
In accordance with the provisions of section 18
of the Ontario Infrastructure Projects
Corporation Act, 2006 (Ontario), as security for the payment by the
Municipality of any indebtedness of the Municipality to OIPC incurred under the
Note or any Debentures, the Municipality is hereby authorized to agree in
writing with OIPC that the Minister of Finance is entitled to deduct from money
appropriated by the Legislative Assembly of Ontario for payment to the
Municipality, or from money appropriated by the Assembly for payment to the
Municipality in respect of specified matters, amounts not exceeding the amounts
that the Municipality fails to pay to OIPC on account of the outstanding
indebtedness evidenced by the Note or any Debentures issued by the Municipality to OIPC, and to pay such amounts to OIPC.
7.
For the purposes of meeting the obligations of
the Municipality in respect of the Note and any Debentures, the Municipality
shall provide for raising in each year as part of the
general levy, the amounts of principal and interest payable in each year under
the Note and any outstanding Debenture, to the extent that the amounts have not
been provided for by any other available source including other taxes or fees
or charges imposed on persons or property by a by-law of any municipality.
8.
(a) The Mayor and/or the Clerk/Treasurer are hereby authorized to
execute and deliver the Note, the Mayor and the Clerk/Treasurer are hereby
authorized to enter into, execute and deliver the Financing Agreement and to
cause Debentures to be issued, the Clerk/Treasurer are severally hereby
authorized to generally do all things and to execute all other documents and
papers in the name of the Municipality in order to perform the obligations of
the Municipality under the Financing Agreement and to carry out the issuance of
the Note and Debentures, and the Clerk/Treasurer is authorized to affix the
Municipality’s municipal seal to any such documents and papers.
(b)
The
proceeds realized in respect of the Note and Debentures, after providing for
the expenses related to their issue, if any, shall be apportioned and applied
for the respective Projects and for no other purpose except as permitted by the
Act.
9.
This
By-law takes effect on the day of passing.
ENACTED
AND PASSED this 23RD day of
March , A.D. 2010.
___________________________________________
Christine Ellis, Deputy Mayor
___________________________________________
Linda Maurer, Clerk/Treasurer
Schedule “A”
to By-Law Number 2010- 012
|
(1) |
(2) |
(3) |
(4) |
|
Project Number |
Description of Capital Work |
Estimated Expenditure |
Loan Amount |
2334 Municipal Office Renovation $ 380,000.00 $ 176,626.11
2010-001 Capital Purchase-Road Equipment $218,750.00 $ 218,750.00
By-Law Number 2010- 012
Schedule “B”
OIPC Application: