20-44 Application Long-Term Financing September 8, 2020COUNTY OF ELGIN
By -Law No. 20-44
"BEING A BY-LAW TO APPROVE THE SUBMISSION OF AN
APPLICATION TO ONTARIO INFRASTRUCTURE AND LANDS
CORPORATION ("OILC") FOR THE LONG-TERM FINANCING OF
CERTAIN CAPITAL WORK(S) OF THE COUNTY OF ELGIN (THE
"MUNICIPALITY"); AND TO AUTHORIZE THE ENTERING INTO OF A
RATE OFFER LETTER AGREEMENT PURSUANT TO WHICH THE
MUNICIPALITY WILL ISSUE DEBENTURES TO OILC"
WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the "Act')
provides that a municipal power shall be exercised by by-law unless the municipality is
specifically authorized to do otherwise;
AND WHEREAS the Council of the Municipality has passed the by-law(s)
enumerated in column (1) of Schedule "A" attached hereto and forming part of this By-
law ("Schedule "A") authorizing the capital work(s) described in column (2) of Schedule
"A" ("Capital Work(s)") in the amount of the respective estimated expenditure set out in
column (3) of Schedule "A" , subject in each case to approval by OILC of the long-term
financing for such Capital Work(s) requested by the Municipality in the Application as
hereinafter defined;
AND WHEREAS before the Council of the Municipality approved the Capital
Work(s) in accordance with section 4 of Ontario Regulation 403102 (the "Regulation"),
the Council of the Municipality had its Treasurer calculate an updated limit in respect of
its then 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 estimated expenditure for the Capital Work or each Capital Work, as the
case may be, as set out in column (3) of Schedule "A" (the "Authorized Expenditure" for
any such Capital Work), the Treasurer calculated the estimated annual amount payable
in respect of the Capital Work or each Capital Work, as the case may be, and determined
that the estimated annual amount payable in respect of the Capital Work or each Capital
Work, as the case may be, did not cause the Municipality to exceed the Updated Limit,
and accordingly the approval of the Local Planning Appeal Tribunal pursuant to the
Regulation, was not required before any such Capital Work was authorized by the Council
of the Municipality;
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 OILC has invited Ontario municipalities desirous of
obtaining long-term debt financing in order to meet capital expenditures incurred on or
after the year that is five years prior to the year of an application in connection with eligible
capital works to make application to OILC for such financing by completing and submitting
an application in the form provided by OILC;
AND WHEREAS the Municipality has completed and submitted or is in the
process of submitting an application to OILC, as the case may be to request financing for
the Capital Work(s) by way of long-term borrowing through the issue of debentures to
OILC, substantially in the form of Schedule "B" hereto and forming part of this By-law (the
"Application");
AND WHEREAS OILC has accepted and has approved or will notify the
Municipality only if it accepts and approves the Application, as the case may be;
AND WHEREAS at least five (5) business days prior to the passing of the
debenture by-law in connection with the issue of Debentures as defined below, OILC will
provide the Municipality with a rate offer letter agreement substantially in the form as
provided to the Municipality on or prior to the date of this By-law (the "Rate Offer Letter
Agreement');
NOW THEREFORE THE COUNCIL OF THE COUNTY OF ELGIN
ENACTS AS FOLLOWS:
1. The Council of the Municipality hereby confirms, ratifies and approves the
execution by the Treasurer of the Application and the submission by such
authorized official of the Application, duly executed by such authorized official, to
OILC for the long-term financing of the Capital Work(s) in the maximum principal
amount of $12,000,000, with such changes thereon as such authorized official may
hereafter approve, such execution and delivery to be conclusive evidence of such
approval.
2. The Warden and Treasurer are hereby authorized to execute and deliver for and
on behalf of the Municipality the Rate Offer Letter Agreement under the authority
of this By-law in respect of the Capital Work(s) on such terms and conditions as
such authorized officials may approve, such execution and delivery to be
conclusive evidence of such approval.
3. Subject to the terms and conditions of the Rate Offer Letter Agreement, the
Warden and Treasurer are hereby authorized to long-term borrow for the Capital
Work(s) and to issue debentures to OILC on the terms and conditions provided in
the Rate Offer Letter Agreement (the "Debentures"); provided that the principal
amount of the Debentures issued in respect of the Capital Work or of each Capital
Work, as the case may be, does not exceed the Authorized Expenditure for such
Capital Work and does not exceed the related loan amount set out in column (4)
of Schedule "A" in respect of such Capital Work.
4. In accordance with the provisions of section 25 of the Ontario Infrastructure and
Lands Corporation Act, 2011, as amended from time to time hereafter, the
Municipality is hereby authorized to agree in writing with OILC that the Minister of
Finance is entitled, without notice to the Municipality, to deduct from money
appropriated by the Legislative Assembly of Ontario for payment to the
Municipality, amounts not exceeding the amounts that the Municipality fails to pay
to OILC on account of any unpaid indebtedness of the Municipality to OILC under
the Debentures (the "Obligations") and to pay such amounts to OILC from the
Consolidated Revenue Fund.
5. For the purposes of meeting the Obligations, 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 Debentures issued pursuant to the Rate
Offer Letter Agreement, 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.
6. (a) The Warden and Treasurer are hereby authorized to execute and deliver
the Rate Offer Letter Agreement, and to issue the Debentures, one or more
of the Clerk and the Treasurer are 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 terms and conditions that apply to the
Municipality as set out in the Rate Offer Letter Agreement and to perform
the Obligations of the Municipality under the Debentures, and the Clerk is
authorized to affix the Municipality's municipal seal to any such documents
and papers.
(b) The money realized in respect of the Debentures, including any premium,
and any earnings derived from the investment of that money, after providing
for the expenses related to the issue of the Debentures, if any, shall be
apportioned and applied to the respective Capital Work and to no other
purpose except as permitted by the Act.
7. This By-law takes effect on the day of passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 8th DAY
OF SEPTEMBER 2020.,
Julie Gonyou, f Dave Mennill,
Chief Administrative Officer. Warden.
Schedule "A"
to By -Law No. 20-44
(Capital Work(s))
(1) (2) (3) (4)
By -Law Number Description of Capital Work Estimated Loan Amount
Expenditure
20-08 as amended Wonderland Road $6,225,000 $6,000,000
by 20-40 Reconstruction
20-08 as amended King George Lift Bridge $6,645,000 $6,000,000
by 20-40
Infrastructure Schedule "B" to By -Law Number 20-44
Y Ontario
FA Number 1509
Application for Elgin, The Corporation Of The County Of
SIT
Construction/Purchase
Construction/Purchase
ID Project ID
Project Name
Start
End
Project Cost
OILC Loan Amount
1213 1
Wonderland Road
03/01/2020
12/31/2020
$6,225,000.00
6,000,000.00
Reconstruction
1214 2
King George Lift Bridge
03/01/2020
03/31/2021
$6,645,000.00
6,000,000.00
Project Category
1 9 rY
Municipal Roads Infrastructure
:------------ ..---- ---- --. - —__ -_----
Project Name
Road Rc cnsi'U 11�I n
Construction/Purchase Start
Car !2021)
Construction/Purchase End
12ro 0 "1
Energy Conservation r
Project Address 1 VVon acd ROaci
Project Address 2
City I Town Sc !th�mold
Province CN
Postal Code
Description Uper „ing "rer °gad to an- veh•me commute ad ilirkmg w _ondon
Comments and/or Special
Requests
Project Life Span (Years)
Project Cost (A) SP,227.0100.00
Other Proiect Funding / Financing (B):
Description Timing Amount
MTO Funding... Expected $125,000-00
Reserves Existing $100,000.00
Other Project Funding/Financing Total (B) $225,000.00
OILC Loan Amount (A-B) 55.000 .000.U0
Only include long-term borrowing in this section. If you anticipate that you will require short-term financing during the construction phase
of the project, the information will be gathered as part of the Financing Agreement.
Required Date Amount Tenn Type
30C Sc 'rOC ..__00 10 _. J Amortizing
Long-term Borrowing Total $o,00Q. Ou0.00
Project Category Municipal Bridge Infrastructure
Project Name King G r_z Li 9.. idce
Project Address 2
City/Town
Pori
Province
ON
Postal Code
N5_`�c
Description
Re ri roam C0 rear o nrre.
Comments and/or Special
Requests
Project Life Span (Years)
Project Cost (A)
Other Proiect Funding / Financing (B):
Description Timing
..Reserves Existing ...
Other Project Funding/Financing Total (B)
OILC Loan Amount [A-B)
56, 645,occ=
Amount
_.. ._... $645,000.00.
$645,000.00
__S0. O,,,OCCAO
Only include long-term borrowing in this section. If you anticipate that you will require short-term financing during the construction phase
of the project, the information will be gathered as part of the Financing Agreement.
Required Date Amount Tenn Type
/0 2.,20 S0.00 10� � Amortizing J.
Long-term Borrowing Total S0.00
Has there been any new/undisclosed debt acquired since last FIR C Yes I✓ No
was submitted?
Please describe any re -financing plans for any existing "interest
only" debt, if applicable.
In the last 10 years, has the borrower ever failed to make a loan payment or debenture repayment on time to any lender, including the
Provincial Government?
If yes, please provide details.
Please indicate the source(s) of revenue you plan to use to repay the OILC Loan
Taxation
100.00
User Fees
0.00
Service Charges
O.OS
Development Charges
0.00
Connection Fees
1.20
Repayment Subsidies
1100
Other
Total I0r), 0%
Please ensure all required documents are submitted with the signed application. OILC requires originals as noted below to be mailed or couriered. Also,
please retain a copy of all documents submitted to OILC for your records.
To obtain templates for documents see listed below.
• Loan Application Signature Page signed and dated by the appropriate individual (original to be submitted)
• Certificate and sealed copy of OILC template By-law authorizing project borrowing and applying for a loan (original with seal)
• Certificate of Treasurer Regarding Litigation using the OILC template (original, signed & sealed)
• Updated Certified Annual Repayment Limit Calculation (original)
r I acknowledge and agree that all of the above referenced documents must be submitted in the form required by OILC and understand that the application
will not be processed until such documents have been fully completed and received by Infrastructure Ontario.
Please note: OILC retains the right to request and review any additional information or documents at its discretion.
Confidential Information
OILC is an institution to which the Freedom of Information and Protection of Privacy Act (Ontario) applies. Information and supporting documents submitted by
the Borrower to process the loan application will be kept secure and confidential, subject to any applicable laws or rules of a court or tribunal having
jurisdiction.