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BYLAW - Authorize Deb Financing Joint Operations Centre Capital Project - 20140624 - 562714THE CORPORATION OF THE TOWN OF AURORA By-law Number 5627-14 BEING A BY-LAW to authorize debt financing in respect of the Joint Operations Centre capital project. WHEREAS the Council of The Corporation of the Town of Aurora (the "Town") intends to construct a new Joint Operations Centre (the "Project") on Town -owned lands on Industrial Parkway North; AND WHEREAS the Town intends to finance all or a part of the capital cost of the Project with debt financing; AND WHEREAS subsection 401(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended (the "Act") states 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 subsection 403(1) of the Act states that a by-law of an upper -tier municipality authorizing the issuing of debentures for the purposes or joint purposes of one or more of its lower -tier municipalities may require those lower -tier municipalities to make payments in each year to the upper -tier municipality in the amounts and on the dates specified in the by-law; AND WHEREAS subsection 401(3) of the Act states that a lower -tier municipality in a regional municipality does not have the power to issue debentures; AND WHEREAS clause 405(1)(b) of the Act states 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, 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; 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 subsection 403(7) of the Act provides that all debentures issued under a by-law passed by an upper -tier municipality under section 403 of the Act are direct, joint and several obligations of the upper -tier municipality and its lower - tier municipalities; AND WHEREAS Ontario Infrastructure and Lands Corporation ("OILC") 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 OILC for such financing by completing and submitting an application in the form provided by OILC (the "Application"); AND WHEREAS the Town has adequate capacity for additional debt under the Province's annual debt repayment limit regulation (Ontario Regulation 403/02, as amended) as documented by the Treasurer's Updated Annual Debt Repayment Limit, and the estimated annual repayments required for the contemplated new debt does not exceed such limit; AND WHEREAS on February 25, 2014, Council approved the recommendations set out in report CFS13-047 authorizing a construction line of credit to be financed with OILC, which requires the approval of the Region of York for the issuance of debentures in the full amount of the credit line as a security to the construction line of credit; By-law Number 5627-14 Page 2 of 3 AND WHEREAS to grant such approval, the Region of York and OILC require the passing of an authorizing by-law by the Town as recommended in report CFS13-047; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF AURORA ENACTS AS FOLLOWS: 1. THAT the construction of the Project is hereby authorized, subject to Council approving the award of the tender for the construction of the Project. 2. THAT the Regional Municipality of York ("York Region") be requested to approve the Town's borrowing from any preferred lender or to issue debentures on behalf of the Town, repayable over a period not to exceed fifteen (15) years, at an interest rate prevailing at the time of issue, in an amount up to the lesser of: (a) Twenty -Five Million Canadian Dollars (CAD $25,000,000.00), or (b) the approved budget of the construction phase of the Project, as may be adjusted by Council from time to time. 3. THAT at no time shall both a construction line of credit balance and debentures issued in connection with the Project exceed a combined total of the applicable limit set out in paragraph 2 of this by-law. 4. THAT the Mayor and the Treasurer are authorized to negotiate and execute any agreements or documents required by York Region and/or the preferred lender in connection with the application, finance agreements, approval, or advancing of the debt authorized in paragraph 2 above, including any Financing Note, and the Clerk is authorized to affix the seal of the Town to any such documents as required. 5. THAT the Council of the Town hereby confirms, ratifies and approves the completion by the Treasurer of the Application and the submission by such authorized official of the Application to OILC, in cooperation with York Region, for the financing of the Project by way of temporary borrowing in the form of a construction line of credit from OILC, pending the issue of debentures, in the maximum aggregate principal amount as approved in paragraph 2 of this by- law. 6. THAT the Treasurer is authorized to draw upon the authorized construction line of credit as necessary to meet the payment requirements related to the Project. The proceeds realized in respect of any Financing Note after providing for the expenses related to its execution and delivery, if any, shall be apportioned and applied to the Project and to no other purpose except as permitted by the Act. 7. THAT in accordance with the provisions of section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011, S.O. 2011, c. 9, Sched. 32, as amended, as security for the payment by the Town of any indebtedness of the Town to OILC incurred under any Financing Note, and as security for the payment by the Town of any indebtedness of the Town to York Region in respect of debentures issued for the Project, the Town is hereby authorized to agree in writing with OILC that the Minister of Finance is entitled to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Town, amounts not exceeding the amounts that the Town fails to pay to OILC on account of the outstanding indebtedness evidenced by any Financing Note issued by the Town to OILC and on account of the outstanding indebtedness evidenced by debentures issued by York Region to OILC for the Project, and to pay such amounts to OILC from the Consolidated Revenue Fund. 8. THAT for the purposes of meeting the obligations of the Town in respect of any Financing Note and any debentures issued by York Region to OILC for the Project, the Town shall provide in each year as part of the general lower -tier tax levy the amounts of principal and interest payable in each year under any Financing Note or any such debentures, to the extent that the amounts have By-law Number 5627-14 Page 3 of 3 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. 9. THAT in the event Council cancels the Project prior to tender award or at any time following tender award, then: (a) any subsequent advances of the debt authorized by this by-law must be approved by resolution of Council; and (b) once such subsequent advances are approved by resolution of Council, then the Mayor and the Treasurer are authorized to execute and approve any documents necessary in relation to the debt financing to cancel or amend agreements or contracts as appropriate in the circumstances. 10. THAT this By-law shall come into full force and effect on the date of final passage hereof. READ A FIRST AND SECOND TIME THIS 24=h DAY OF DUNE, 2014. READ A THIRD TIME AND FINALLY PASSED THIS 20 DAY OF JUNE, 2014. sgpprovrd as toYo m By LegafServkes Siget0.tvlt )n)ni�e. 1s/i!. DAWE, MAYOR CLERK