BYLAW - Temporary Borrowing Facilities by Town REPEALED BY 5686~15 - 20110426 - 5328~11THE CORPORATION OF THE TOWN OF AURORA
By-law Number 5328-11
BEING A BY-LAW to authorize the creation,
maintenance and use of temporary
borrowing facilities by the Town of Aurora
pending the receipt of municipal revenues,
pursuant to section 407 of the Municipal Act,
2001, S.O. 2001, c. 25, as amended
WHEREAS subsection 407(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as
amended (the "Act") states that at any time during a fiscal year, a municipality may
authorize temporary borrowing, until the taxes are collected and other revenues are
received, of the amounts that the municipality considers necessary to meet the
expenses of the municipality for the year and of the amounts, whether or not they are
expenses for the year, that the municipality requires in the year for: (a) reserve, sinking
and retirement funds; (b) principal and interest due on any debt of the municipality; (c)
school purposes; (d) other purposes the municipality is required by law to provide for;
and (e) the amount of principal and interest payable by a person or municipality
primarily liable for a debt, if the municipality has guaranteed the debt and the debt is in
default;
AND WHEREAS subsection 407(2) of the Act states that, except with the approval of
the Ontario Municipal Board, the total amount borrowed at any one time plus any
outstanding amounts of principal borrowed and accrued interest shall not exceed: (a)
from January 1 to September 30 in the year, 50 per cent of the total estimated
revenues of the municipality as set out in the budget adopted for the year; and (b) from
October 1 to December 31 in the year, 25 per cent of the total estimated revenues of
the municipality as set out in the budget adopted for the year;
AND WHEREAS subsection 407(3) of the Act states that until the budget is adopted in
a year, the limits upon borrowing under subsection 407(2) of the Act shall temporarily
be calculated using the estimated revenues of the municipality set out in the budget
adopted for the previous year;
AND WHEREAS subsection 407(4) of the Act states that in subsections 407(2) and
407(3) of the Act, estimated revenues do not include revenues derivable or derived
from: (a) arrears of taxes, fees or charges; or (b) a payment from a reserve fund of the
municipality, whether or not the payment is for a capital purpose;
AND WHEREAS section 3 of Ontario Regulation 276/02 (Bank Loans), as amended
(the "Regulation"), being a regulation made under the Act, states that the Regulation
does not apply to a bank loan agreement entered into by a municipality for the purpose
of temporary borrowing under section 405 or section 407 of the Act;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF
AURORA ENACTS AS FOLLOWS:
1. THAT the Mayor and the Treasurer of The Corporation of the Town of Aurora
(the "Town") are hereby authorized to create and maintain such temporary
borrowing facilities as are described in this By-law with the Town's lead bank.
2. THAT, subject to sections 3, 4, and 5 of this By-law, in each of the years 2011,
2012, 2013 and 2014, and for the months of January and February of the year
2015, the Mayor and the Treasurer of the Town are hereby authorized to
By-law Number 5328-11
Page 2 of 3
temporarily borrow to meet the current expenditures of the Town for the year
until such time as the taxes are collected and other revenues are received,
including the amounts required for the following:
(a) reserve, sinking, and retirement funds;
(b) principal and interest falling due within the year upon any debt of the
Town;
(c) school purposes;
(d) - other purposes for which the Town is required by law to provide for; and
(e) the amount of principal and interest payable by a person or a municipality
primarily liable for a debt, if the Town has guaranteed the debt and the
debt is in default.
3. THAT in each of the years 2011, 2012, 2013 and 2014, and for the months of
January and February of the year 2015, the total amount borrowed under
section 2 of this By-law at any one time plus any outstanding amounts of
principal borrowed and accrued interest may not exceed:
(a) from January 1 to September 30 of the year, 50 per cent of the total
estimated revenues of the Town as set out in the budget adopted for the
year; and
(b) from October 1 to December 31 of the year, 25 per cent of the total
estimated revenues of the City as set out in the budget adopted for the
year.
4. THAT until the budget is adopted in a year, the limits set out in section 3 of this
By-law shall be temporarily calculated using the estimated revenues of the Town
set out in the budget adopted for the previous year.
5. THAT the estimated revenues in sections 3 and 4 of this By-law do not include
revenues derivable or derived from the following:
(a) arrears of taxes, fees or charges; or
(b) a payment from a reserve fund of the Town, whether or not the payment
is for a capital purpose.
6. THAT any promissory note, collateral agreement, or other banking
documentation necessary for the purpose made under the authority of sections
1 and 2 of this By-law shall be sealed with the seal of the Town and signed by
the Mayor and the Treasurer.
7. THAT the Treasurer shall report to Council with appropriate details at the first
opportunity following any actual temporary borrowing authorized in this By-law.
8. THAT By-law Number 5098-091 be and is hereby repealed.
9. THAT the provisions of this By-law shall come into full force and effect upon final
passage hereof.
By-law Number 5328-11 Page 3 of 3
READ A FIRST AND SECOND TIME THIS 261h DAY OF APRIL, 2011.
READ A THIRD TIME AND FINALLY PASSED THIS 26th DAY OF APRIL, 2011.
DAWE, MAYOR
TOWN CLERK
Agroz, as to Form
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