20-48 Amend and Reinstate by-law 20-44 September 22, 2020Corporation of the County of Elgin
BY-LAW NUMBER 20-48
BEING A BY-LAW TO AMEND AND RESTATE BY-LAW 20-44 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 CORPORATION 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 403/02 (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 CORPORATION OF THE
COUNTY OF ELGIN ENACTS AS FOLLOWS:
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.
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.
(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.
ENACTED AND PASSED this 22nd day of September, A.D. 2020.
A PI
Chief Administrative Officer/Clerk
Dave Nlennill`� �
Warden
Schedule "A"
to By -Law Number 20-48
(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
Y Infrastructure
Ontario
febl ans Loan ppll a to
Schedule "B" to By -Law Number 20-48
FA Number 15010 r
Application for Elgn, Thei orpamlion Of This, County :;.:
SET
ID Project lD Project Name
londerian'd Road
1213 -1 Reconsfructian
:.
1214 2 King George Litt Bridge
Project Category
Project Name
ConstructloniPurchasa Start
ConstructionfPurchaso End
Energy Conservation
Project Address 2
Project Address 2
City! Town
Province
Postal Code
Description
Comments andlor speclai
Requests
i`
ConstructianiPsrrchase ConstruetioniPurchase
start end
U.101!2020 031'; 1,2G21
Project Cast OILC Loan Amount
S65,645,000.00 61,000.000,00
Project Life Span (Years;
Project Cast (A)
Either Froiect Fundinc 1 Financinq (B
LNLC Loan Amount (A-B)
Only include long-term borrowing In this secticn. If you anticipate that you will require short farm financing during the construction please
of the project, the Information will be gathered as park of the Financing Agreement.
.......... ............. ......... _......... ... _..
Requirpd Bate ........ ... Amount Tern ......... Type
Long-term Borrowing Total
'vPanl6oa Bridge .Inhax Lctum.
Project Category g ":
Project Name
........ ..
Constructlontpurchase Start
ConstructionlFurchase End
Energy Conservotion )-•••.
Project Address 1
Project Address 2
City i Town
Province.
O
Postal Code
Description
Comments andlor Special
Requests
Project Life Span (years)
Project Cost (A)
Other Project Funding,,' Financ€na fat:
Description
Other Project Fund'anglFinanoing Total (B)
OILC Loan Amount (A•B)
Timing
Amount
$645,000.00
Only include long-term borrowing in this section. if you anticipate that you will require short-term financing during the construction phase
of the project, the information will tic gathered as part of the Financing Agreement.
............................................................................_......._..................___.........................................................................................................................................................................................................................................................
Required Date Anfount Temp Type
Long-term Borrowing Total
If yea, please provide details.
Please indicate the source(s) of revenue you plan to use to repay the OILC Loan
Taxation
User Fees
Service Charges
Development Charges
Connection Fees
Repayment Subsidies
Other
Total
Plerase ensure aiI required documents are submitted With the signed application. DILL iequires odg nals as noted beio;^; to be mailed or Gouriered. Also,
please retain a copy or all documents submitted fo Oh_ for your records,
To obtain templates for documents sae fisted below.
Loar.Application Signature Page signed and dated by the appropriate individual ;original to be submitted)
m Certificate and sealed copy of ClLC template By-law autharizing project borrowing and_. applying For a loan (origir;al wiih seal
» Certificate c(Trrasurer Rrgarding Liiiga5cn using the OtLC templaie )original; signed & >ealedj
Updated Certified Annual Repayment Limit Calculation (original)
1 ackp.;;wiadge and agree. that all of the above rrferenced documrnts must be submited in the form TegUired by OIL C and understand -,fiat the application
will not be Processed uniil such dDCumants have been fuliy completed and rereivad by infrastructure Ontario,
Please note: orLc retain$ the right to request and review any additional information or doturne Me at its disorglion.
Confidential fn€ormation
OILC is or. 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 confider;tial, subject to any applicable laws or rules of a court or tribunal having
junsdiadon.