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Home My WebLink AboutCD-28-82 CORPORATION OF THE TOWN OF NEWCASTLE -- OFFICE OF THE TOWN CLERK j 40 TEMPERANCE STREET TELEPHONE 623-3379 : BOWMAN L1C 3A6 ONTARIO REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF MAY 31, 1982. CD-28-82 SUBJECT: BORROWING BY-LAW - TILE DRAINAGE ACT TO AID IN THE CONSTRUCTION OF DRAINAGE WORKS OUR FILE: 10.29.2. RECOMMENDATIONS: 1. That this report be received; and 2. That the Committee recommend to Council that a By-law entitled "A By-law to raise money to aid in the construction of Drainage Works under the Tile Drainage Act 1971" in an amount not exceeding $150,000.00 be approved; and 3. That the said By-law be given two readings by Council and the Clerk directed to obtain the necessary approvals. BACKGROUND AND COMMENT: The passing of borrowing by-laws for Tile Drainage Loan purposes are undertaken by Council on a regular basis. The last by-law (by-law 81-72) was given two readings on June 1st 1981, and forwarded to the Ontario Municipal Board for approval . By-law 81-72 provided for a borrowing potential for Tile Drainage purposes of $200,000.00. After due consideration, the Board issued an Order approving the passing of a by-law in the amount of $155,000.00. Pursuant to the Board's Order, Council enacted By-law 81-110 on September 8th, 1981, and it was forwarded to the Region and the Ministry of Agriculture and Food for their records. Continued . . . . . 12 /q'-),/ 1�1 L February 19, 1982. Ministry of Agriculture and Food, Queen's Park, Toronto, Ontario. Attention: Mr. John Johnston, Drainage Co-Ordinator Food Land Development 10anch Dear, Sir: Re: , Town of Newcastle Tile Drainage Loan Requirements Our File: 10.29.2. In 1981, the Town of Newcastle enacted By-law Number 81-118, establishing $200,000 as the amount to be authorized for Tile Drainage Loan purposes. Subsequently, the Ontario Municipal Board reduced the amount of $155,000 and issued a Board Order approving the lesser amount. By letter dated September 1st 1981, the Ministry advised that the Town of Newcastle had been allocated the sum of $68,900 for Tile Drainage Loan purposes. Subsequently, in late November we received a further communication authorizing the expenditure of the funds. On February 15th 1982, Council approved a Rating By-law authorizing loans in the amount of $68,900. This application was processed and approved by the ,Region, As of this date, we have a need for additional funds as follows: 1. Council approved loans totalling $ 22,600 2. Loan applications pending totalling $ 80,900 3. Total requirements as of February 1982 $103,500 Having regard for the fact, that we now have only $86,100 remaining under By-law 81-110 and our requirements are $103,500 as of February 1982, would you be in a position to respond to the following questions: I. Can we obtain any supplemental funds? j2. What is our expectation for funds in 1982? 3. Will there be funding available in 1982 sufficient to meet our applications? i Continued . . . .. /2 i 1. ! ' Mipistry of Agriculture - 2 - February 19, 1982 �(a� an Food / I � 4. Having regard for the fact that the Ontario Municipal Board reduced our borrowing capactty, should we be looking at passing a new borrowing by-law? i ' Your reply to these questions and any additional information would be appreciated. I have attached a list of applications approved and pending foryour information. I j ,Mors truly, Da id W. Oakes, A.M.C.T. , Town Clerk. DWO/ms Att. i i i P ` i I �* UVff Ontario HIN- Ministry of 416/965• 9921 Legislative Buildings Agriculture Queen's Park and Food �� Toronto, Ontario May 4 , 1982 TO ALL CLERKS : Further to the letter from the Assistant Deputy Minister , Mr . Doyle , please find enclosed the questionnaire that we ask you to fill out and return to the Ministry no later than June 1, 1982 . Kindly attach a photo-copy of all the applications listed. As stated in Mr . Doyle ' s letter , until you are notified of your allocation for the year , you may submit debentures up to the total dollar value of the debentures which you sold in the last fiscal year . We will attempt to notify you by July 1 , 1982 of your allocation for the year . Following is a listing of the Ministry ' s current policies for tile drainage. 1. Maximum loan to an individual, as an individual or in his role in a partnership or corporation shall not exceed $20 ,000 per year in all municipalities in which he owns land. 2 . The outstanding balance of all loans received on or after April 1, 1980 by any individual, as an individual, or in his role in a partnership or corporation, shall not exceed $60 ,000 . 3 . Loans will be restricted to a maximum of 60% of cost. Municipalities may choose a lower loan rate but it must apply uniformly to all applications. Should the township choose a lower rate, please let us know on the questionnaire what rate has been chosen. The 60% rate ap2lies to all applications Ave hose previousl a roved , and to those where r has been complete pppppp - 2 - Those projects which were partially debentured for last year will be handled as follows: 1) capital costs from the amount which has been debentured will be deducted from the total cost . 2) the balance of cost will be taken at 60% to comply with this year ' s new policy (attached are two examples) . 4 . In order to utilize our present computerized billing system for the loan debenture installments we must insist that you number your debentures by year and month ie. June 1, 82 is numbered 82-06 . The computer automatically takes the debenture number and amount and calculates installments due , using $16 . 27 as a repayment factor . Your cooperation in this regard will be greatly appreciated. 5 . Farmers who applied but did not receive a tile loan in 1981-82 must receive priority from the municipality in the 1982-83 allocation. Farmers who apply in 1982 and who do not get loans should be placed at the head of the list next year . 6 . We will be reviewing these policies each year . Please remember when approving applications for this year ' s work that all policies , but specifically those relative to % loan and interest rate , may change next fiscal year . Applicants should understand that the policies governing their loans will be those in effect the date the debenture is sold, not the ones in effect the date the loan is approved . Some clerks had called in requesting the new factor for the 10% interest rate and were informed that it was 16 . 30 . Unfortunately an error was made due to rounding and the correct factor is $16 . 27 . Attached is an Amortization Schedule reflecting this amount Should you have any further questions, please do not hesitate to contact There a Fredette at 965-9921. Yours truly Dr Spencer Director Capital Improvements Branch /ap