BYLAW - Authorize Debt Financing LED Street Lighting - 20151027 - 577315THE CORPORATION OF THE TOWN OFAURORA
By-law Number 5773-15
BEING A BYLAW to authorize
debt financing in respect of
the Town -wide conversion to
LED street lighting capital
project.
WHEREAS the Council of The Corporation of the Town of Aurora (the "Town")
intends to convert the Town's existing street lighting to light emitting diode ("LED")
based technology (the "Project");
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
accordingly the Town intends that the Regional Municipality of York ("York Region")
will issue debentures in respect of the Project and will request that York Region do
so;
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 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 an 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 Town Treasurer's Updated Annual Debt
Repayment Limit, and the estimated annual repayments required for the
contemplated new debt does not exceed such limit;
By-law Number 5773-15
Page 2 of 3
AND WHEREAS on September 29, 2015, Council approved the recommendations
set out in Report No. IES15-052 authorizing the implementation contract and
authorizing long term debt financing of the Project with OILC, which requires the
approval of the York Region for the issuance of debentures in the full amount of the
debt;
AND WHEREAS to grant such approval, York Region and OILC require the passing
of an authorizing by-law by the Town as recommended in Report No. IES15-052;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF
AURORA ENACTS AS FOLLOWS:
1. THAT the Council of the Town authorizes the implementation of the Project.
2. THAT York Region be requested to approve the Town's borrowing from any
preferred lender or to issue debentures on behalf of the Corporation of the
Town of Aurora, repayable over a period of ten (10) years, at an interest rate
prevailing at the time of issue, in the amount of $3,267,700.
3. 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 the Note,
and the Clerk is authorized to affix the seal of the corporation to any such
documents as required.
4. THAT the Treasurer is authorized to fund the Project with the proceeds of the
issuance of the debentures, after providing for the expenses related to the
debt issuance, execution and delivery, if any, and to no other purpose except
as permitted by the Act.
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 debentures issued by OILC in the
maximum aggregate principal amount of $3,267,700, with such changes
thereon as such authorized official approved.
6. 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, i
as amended, as security for the payment by the Town of any indebtedness of
the Town to OILC incurred under the any debentures, 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
debentures issued by the Town to OILC and on account of the outstanding I
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.
7. THAT for the purposes of meeting the obligations of the Town in respect of
any debentures issued by York Region to OILC for the Project, the Town shall
provide for raising in each year as part of the general lower -tier levy the
amounts of principal and interest payable in each year under any such
debentures, 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. THAT in the event Council cancels the Project, then:
By -lave Number 5773-15
Page 3 of 3
(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.
9. 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 27th DAY OF OCTOBER, 2015.
READ A THIRD TIME AND FINALLY PASSED THIS 27�h DAY OF OCTOBER,
2015.
Approved as to Form
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