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HomeMy WebLinkAbout2001-126 9 Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2001- 126 Being a By-Law to authorize the debenturing of$8,100,000 to assist in the construction of the Library Main Branch and expansion of the Municipal Administration Building located at Plan Grant Blk M Lot 129, Now RP 40R18882 Part 1, former geographic Township of Bowmanville, in the Municipality of Clarington. WHEREAS Section 123 of the Ontario Municipal Act, R.S.O. 1990,provides that By-Laws may be passed to allow for borrowing for the purpose of the Corporation and the issuance of debentures thereof; WHEREAS the Council of the Corporation of the Municipality of Clarington wishes construction to proceed on a new Library Main Branch and the expansion of the Municipal Administration Building for Municipal operations; WHEREAS the Council of the Corporation of the Municipality of Clarington has approved Report TR-49-01 at its meeting of June 25, 2001 for the Library Main Branch and the expansion of the Municipal Administration Building; WHEREAS the Treasurer has updated the Municipality's annual debenture limit and this limit has not been exceeded,therefore, the Ontario Municipal Board approval is not required; NOW THEREFORE, Be It Enacted and It is Enacted as a By-law of the Corporation of the Municipality of Clarington as follows: 1. THAT the Municipality proceed with the construction of a new Library Main Branch and the expansion of the Municipal Administration Building for municipal operations, located at Plan Grant Blk M Lot 129,Now RP 40R18882 Part 1, former geographic Township of Bowmanville, now in the Municipality of Clarington; 2. THAT the sum of$8,100,000 be debentured over a period not to exceed fifteen(15) years; and 3. THAT the funds to repay the principal and interest of the debenture be raised through a tax levy on the ratepayers,to the extent possible through development charges, and from the debenture repayment reserve fund, as approved in Admin-33-99. By-Law read a first and second time this 25th day of June, 2001. By-Law read a third time and finally passed this 25th day of June 2001. John Mutton, Mayor /Patti L. ie, iiri.pal Clerk x 2'.J';d .rI October 26, 2001 , Ms. Patti Barrie Municipal Clerk The Regional Municipality of Clarington Municipality, 40 Temperance St. of Burnam Bowmanvil-le, ON Finance L 1 C"3A6 Department Durham Tower Dear Patti: 60 Bond St.West P.O.Box 61$ Oshawa;Ontario. Re: Region of Durham Debenture.Issue #35,:dated November 1, 2001, Canada L1 aBS in the amount of$8,100,000 (Municipality of Clarington's portion) (905)571-3311 Fax:(965)571-7460 R.J.Clapp,CA We are-in the final stages of completing the arrangements for Regional, Treasurer and Debenture:Issue #35 which closes November 1, 2001. Commissioner of Finance In this regard, enclosed is a Declaration and Certificate which are required at the debenture issue closing, The "bring forward" certificate is to be signed by you on the date which the declaration is made. The Fiscal Solicitor has confirmed that if there are ''any changes to the statements contained in the Declaration, the Certificate will be returned to you prior to the debenture issue closing on November 1, 2001. Please complete and notarize the Declaration and the Certificate and return to me prior to October 30, 2001. Do:not hesitate to.contact me.if you require additional information or need assistance in order,to complete the forms. Thank you for your assistance. l Yours truly, ORI Patricia McNeil General Accounting - - ... Encl. f MG\PM\clarington35 ; _....-.. i 100%Post Consumer THE REGIONAL MUNICIPALITY OF DURHAM - BY-LAW NUMBER 71-2001 A By-law to authorize the issue of ten year instalment debentures in the principal amount of$8,100,000 for a purpose of The Corporation of the Municipality of Clarington ($2,378,000 of which may be raised by the issue of refunding debentures in the final year of maturity) WHEREAS the Council of The Regional Municipality of Durham (the"Regional Corporation") has received a request from The Corporation of the Municipality of Clarington to borrow money for the purpose specified in Column l of Schedule"A" attached hereto ("Schedule "A"") and to issue debentures for such purpose in the amount specified in Column 6 of Schedule"A"; AND WHEREAS for the purpose set out in Column 1 of Schedule"A",before the Council of The Corporation of the Municipality of Clarington authorized such purpose, the Council had its Treasurer update its most recent annual debt and financial obligation limit determined by the Ministry of Municipal Affairs and Housing and the Treasurer, in accordance with the applicable regulation, determined that the estimated annual amount payable in respect of such purpose would not cause The Corporation of the Municipality of Clarington to exceed its updated limit with the result that the Council of The Corporation of the Municipality of Clarington authorized such purpose without the approval of the Ontario Municipal Board; AND WHEREAS the Regional Municipalities Act, R.S.O. 1990, c.R.8, as amended (the "Regional Act") provides in clause (a) of Subsection 116(7) that the Regional Council may by by-law, authorize the borrowing of money by the issue of instalment debentures, the last instalment of which shall mature not earlier than five years after the date upon which they are issued, and a specified sum of principal payable thereunder in the final year shall be raised by the issue of refunding debentures as provided in clause (b), and it shall not be necessary to raise by special rate in the year of maturity of the debentures to be refunded an amount equal to the specified principal amount of the debentures which are being refunded; and clause(b) of Subsection 116(7)provides that the Regional Council may by by-law, authorize the issue of debentures to refund at maturity outstanding debentures of the municipality,but the refunding debentures shall be payable within the maximum period of years that was authorized by the Regional Council for the repayment of the debt for which debentures were issued, commencing on the date the original debentures were issued; AND WHEREAS to pay part of the cost of the said purpose the Council of the Regional Corporation considers it necessary,to realize the sum presently required for such purpose, to borrow money by the issue and sale of ten year instalment debentures of the Regional Corporation in the principal amount of$8,100,000 payable at the time and bearing interest at the rates hereinafter set out,which is the amount of debt intended to be created by this By-law. NOW THEREFORE, BE IT ENACTED AND IT IS HEREBY ENACTED as a By-law of The Regional Municipality of Durham by the Council thereof as follows: 1. That for the purpose aforesaid money shall be borrowed upon the credit of the Regional Corporation by the issuance and sale of ten year instalment debentures of the Regional Corporation in the principal amount of$8,100,000 dated the 1St day of November, 2001. The said debentures shall be issued within two years after the date on which this By-law is enacted and as to both principal and interest shall be expressed and be payable in lawful money of Canada. The term of years of the debentures issued in respect of the purpose shown in Column 1 of Schedule"A"is set forth in Column 7 opposite the principal amount of debentures to be issued for such purpose as set forth in Column 6. 2. That the Chair and the Treasurer of the Regional Corporation are hereby authorized to cause any number of instalment debentures to be made for such sums of money as may be required for the purpose aforesaid, in global and definitive forms not exceeding in total the said sum of$8,100,000 (the"said debentures") and the said debentures shall be sealed and signed in accordance with the provisions of the Regional Act. The said debentures shall initially be issued in global fully registered form as part of one certificate in the aggregate principal amount of - 2 - $14,259,500 (which will include the said debentures) in the name of CDS & CO. as nominee of The Canadian Depository for Securities Limited("CDS")with provision for payment of principal and interest by cheque sent through the post to the registered address of the registered holder or, if authorized in writing, by electronic transfer(the "Global Debenture"). 3. That the said debentures shall mature during a period of ten years from the date thereof and the respective amounts of principal and interest payable in each of the years in such period shall be as set forth in Schedule`B" attached hereto ("Schedule`B""). The said debentures (and in the case of the Global Debenture which relates to the said debentures,the annual amount of principal payable in respect of the said debentures thereunder) shall bear interest from the date thereof, which interest shall be payable semi-annually on May 1 and November 1 in each year of their currency at the respective rate per annum set out opposite such year namely: Year of Maturity Rate of Interest Year of Maturity Rate of Interest Princi al Payment) (Principal Payment) 2002 3.000% 2007 5.125% 2003 3.500% 2008 5.250% 2004 4.000% 2009 5.500% 2005 4.500% 2010 15.625% 2006 4.750% 2011 15.750% Of the said debentures, debentures in the aggregate principal amount of$5,722,000 (the "Instalment Debentures") shall mature (in the case of the Global Debenture, the principal payable in respect of the Instalment Debentures thereunder shall be paid) in ten instalments of principal of varying amounts on the ls`day of November in each of the years 2002 to 2011,both inclusive and no refunding debentures may be issued in respect thereof. Of the said debentures which mature on November 1, 2011 in the amount of$3,085,000, the principal sum of $2,378,000 payable thereunder, which constitutes a portion of the said debentures(the "Refundable Debentures") may be raised by the issue of refunding debentures over a further period not to exceed five years (fifteen years being the maximum authorized period of years for the repayment of the debt for which the said debentures will be issued), as provided in Subsection 116(7)(b) of the Regional Act and upon such terms not contrary thereto as shall be determined by the Council of the Regional Corporation (in consultation with The Corporation of the Municipality of Clarington). The Instalment Debentures and the Refundable Debentures are hereinafter collectively referred to as the "said debentures". 4. That interest shall be payable to the date of maturity of the said debentures and on default shall be payable both before and after default and judgment. Any amounts payable by the Regional Corporation as interest on overdue principal or interest in respect of the said debentures shall be paid out of current revenue. 5. That in limited circumstances(as set out in the letter of representations referred to below) the Global Debenture shall be exchangeable for debentures in definitive fully registered form in denominations of$1,000 and any multiples thereof upon surrender of the Global Debenture to the Treasurer provided that there is at least one definitive debenture which matures in each of the remaining years of the currency of the Global Debenture as it relates to the said debentures. The definitive debentures in respect of the said debentures shall aggregate the same principal amount as the principal outstanding balance of the Global Debenture which relates to the said debentures as at the date of exchange, shall bear the same interest rates and maturity dates, shall bear all unmatured interest obligations and shall be the same substantially in every respect to the Global Debenture as it relates to the said debentures. In issuing definitive debentures no change shall be made in the amount which would otherwise be payable in each year in respect of the said debentures under the Global Debenture. The definitive debentures shall be in fully registered form payable as to principal on or after maturity at any specified branch of the bank designated therein with provision for payment of interest by cheque sent through the post to the registered addresses of the registered Holders or, if authorized in writing,by electronic transfer. 6. That there shall be raised in each year of the currency of the said debentures, by special levies,the yearly amount of principal and interest set out in the Column headed"Total Payment" in Schedule`B"provided that it shall not be necessary in the year 2011 to raise, by special levies, the amount of the Refundable Debentures to the extent that such amount may be raised by the issue of refunding debentures in accordance with the Regional Act, this By-law and the terms - 3 - which shall be determined by the Council of the Regional Corporation(in consultation with The Corporation of the Municipality of Clarington). Subject to the foregoing, in each year during the currency of the said debentures, for the purpose set out in Column 1 of Schedule"A", the aforesaid yearly amount is hereby levied against The Corporation of the Municipality of Clarington and such corporation shall pay to the Regional Corporation on or before the respective due dates,the yearly amount hereby levied against it for the payment of principal and interest in respect of the said debentures including without limitation and subject to the foregoing, the amounts payable in the year 2011 for instalments of principal and interest in respect of the Refundable Debentures. 7. That upon at least 30 days written notice to the Treasurer of the Regional Corporation, one or more of the definitive debentures issued in respect of the said debentures, may be exchanged at the office of the Treasurer, for a debenture or debentures of an equal aggregate principal amount of any authorized denomination or denominations bearing the same rate of interest, maturing on the same date and bearing all uninatured interest obligations of the definitive debenture or definitive debentures so exchanged. The Regional Corporation shall not be required to make any exchanges, registrations or transfers of definitive debentures within 30 days prior to an interest payment date. The costs of all such exchanges, including printing of the new denominations of debentures, may be charged to the registered holder at the option of the Regional Corporation. 8. (a) That subject to Section 2 of this By-law the Treasurer is hereby authorized to cause the said debentures to be sold at such price or prices as he may determine, to enter into a letter of representations with CDS and generally to do all things and execute all documents and other papers in the name of the Regional Corporation in order to carry out the sale of the said debentures and the Treasurer is authorized to affix the Seal of the Regional Corporation to any of such documents and papers. (b) That the proceeds of the sale of the said debentures, after providing for the discount, if any, and the expenses of the negotiation and sale thereof, shall be apportioned and applied for the purpose set forth in Schedule "A", and for no other purpose except as permitted by the Regional Act. 9. That Schedules "A"and`B" are declared to be and to form part of this By-law. BY-LAW read a first time this 24th day of October, 2001. BY-LAW read a second time this 24th day of October, 2001. BY-LAW read a third time and finally passed this 24th day of October, 2001. Ro er Anderson, P. M. Ma ill, Regional Chair Regional Clerk i THE REGIONAL MUNICIPALITY OF DURHAM Schedule "A" to By-law Number 71-2001 The Corporation of the Municipality of Clarington 1 2 3 4 5 Authorizing Report Previously Issued Current Purpose By-law Report Number Date Debentures Debenture Issue 6 7 Amount Term Construction of the Library Main Branch and 2001-126 TR-49-01 June 25, 2001 0 $8,100,000 10 years expansion of the Muncipal Administration Building located at Plan Grant Blk M Lot 129, now RP40R18882 Part 1, former Township of Bowmanville, in the Municipality of Clarington MG\PM\scha Clarington The Regional Municipality of Durham Schedule "B" to By-law Number 71-2001 The Corporation of the Municipality of Clarington Year Principal — Nov 1 _Interest— May 1 Interest— Nov 1 Total Payment 2002 472,000.00 205,987.50 205,987.50 883,975.00 2003 486,000.00 198,907.50 198,907.50 883,815.00 2004 503,000.00 190,402.50 190,402.50 883,805.00 2005 524,000.00 180,342.50 180,342.50 884,685.00 2006 548,000.00 168,552.50 168,552.50 885,105.00 2007 574,000.00 155,537.50 155,537.50 885,075.00 2008 603,000.00 140,828.75 140,828.75 884,657.50 2009 635,000.00 125,000.00 125,000.00 885,000.00 2010 670,000.00 107,537.50 107,537.50 885,075.00 2011 »3,085,000.00 88,693.75 88,693.75 3,262,387.50 $8,100,000.00 $1,561,790.00 $1,561,790.00 $11,223,580.00 $2,378,000 of which may be raised by the issue of refunding debentures over a further period not to exceed five years. MG\PM\SCHB darington i