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Home My WebLink AboutBy-law No. 2012-072 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2012-072 A BY-LAW TO AUTHORIZE THE BORROWING UPON DEBENTURES IN THE AMOUNT OF $715,000.00 FOR THE PURPOSES OF THE MUNICIPALITY OF BAYHAM WHEREAS Section 401 (1) of the Municipality Act, 2001, S.O. 2001, c. 25, as amended provides 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; ANDWHEREAS Section 11(2) of the Municipal Act, 2001, S.Q. 2001, c. 25, as amended provides that a lower tier municipality may pass by-laws respecting the matter of protection to persons and property; AND WHEREAS the Council of the Municipality of Bayham approved the Port Burwell Fire Hall Replacement Project, in response to Staff Report No. P2011-20, at its meeting on October 6th, 2011; AND WHEREAS said approval included a financing plan for the project, which provided that a portion of the financing should be long term debt; AND WHEREAS before authorizing the project, the Municipality of Bayham had its Treasurer update its most recent annual debt and financial obligation limit received from the Ministry of Municipal Affairs and Housing in accordance with the applicable regulation and, prior to authorizing the project, the Treasurer determined that the estimated annual amount payable in respect of the project, would not cause the Municipality to exceed the updated limit and that the approval of the project,by the Ontario Municipal Board was not required; AND WHEREAS the Council of Municipality of Bayham desires to enter into a financial arrangement, with the Royal Bank of Canada for a five year term loan in the amount of $715,000.00, at a rate of interest of 3.56%. THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: I. THAT the Mayor and the Treasurer are hereby authorized to execute the financial arrangements with the Royal Bank of Canada, on behalf of the Municipality. 2. THAT the proceeds realized in respect of the long term loan shall be applied to the costs incurred for Port Burwell Fire Hall Replacement Project. 3. THAT the Treasurer is authorized to make the annual principal and interest payments outlined in Schedule "A"to satisfy the requirements of the long term loan arrangement with The Royal Bank of Canada. 4. THAT the Treasurer shall present a refinancing plan for the amount outstanding as at July 1, 2017 noted on Schedule"A", at the last meeting of Council prior to July 1, 2017. 5. THAT this By-law takes effect on the day of passing. READ A FIRST, SECOND TIME AND THIRD TIME AND FINALLY PASSED THIS 21st DAY OF JUNE 2012. yet M YORCLERK L-(12-"A-r9 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2012-072 SCHEDULE "A" Debenture-Port Burwell Fire Hall Replacement Debenture Amount $ 715,000.00 Interest Rate 3.56% Term in Years 14 Payment Amount $ 65,000.00 Maximum Payout $ 910,000.00 BEGIN ENDING YEAR BALANCE PRINCIPAL INTEREST PAYMENT BALANCE 01/01/2013 715,000.00 19,773.00 12,727.00 32,500.00 695,227.00 01/07/2013 695,227.00 20,124.96 12,375.04 32,500.00 675,102.04 01/01/2014 675,102.04 20,483.18 12,016.82 32,500.00 654,618.86 01/07/2014 654,618.86 20,847.78 11,652.22 32,500.00 633,771.07 01/01/2015 633,771.07 21,218.87 11,281.13 32,500.00 612,552.20 01/07/2015 612,552.20 21,596.57 10,903.43 32,500.00 590,955.63 01/01/2016 590,955.63 21,980.99 10,519.01 32,500.00 568,974.64 01/07/2016 568,974.64 22,372.25 10,127.75 32,500.00 546,602.39 01/01/2017 546,602.39 22,770.48 9,729.52 32,500.00 523,831.91 01/07/2017 523,831.91 23,175.79 9,324.21 32,500.00 500,656.12 Royal 3ar.iz o.Cant.i is Cororclt r'..,zac a Serv.ces 121 ",3t a St'ree1f. " ^-iNra 3t'7 R BC Tel.: 31S-842-3944 Fax: 519-642-8460 June 23,2O',2 Fr vste and Const e..t at THE CZRPOS':A,.:CN OP THE E a01..,,i1 ..tr'A:-lTY *; P.O. Box 160 9344 Flank Road Straffo'dville,ON NOJ 1V3 We refs to the agreement dated August 15,2611 aro any amendments thereto,between 1 he Corporation of the Municipality Of Bayhaim,as the Borrower, and Royal Bank of Canada,as the Sank, (the"A ~aeraiN:.."). The Bank reserves ell of its rights and remotes at any fine and from'irne to time in conrec on with any o'all breaches,defaults or Everts of Deface t now existing or hereafter crising unser any Baric dccr:mert,ar:c whether known or unknown,and this amending agreement snail not be construed as a waiver of any such breach,default or Event of Default Ail ca.pilalized terms not otherwise defined herein sha°I have the meaning ascribed to hem n the Agreement. The Ag-eement is amended as follows: 1 •Jrder the Credit Facilil es section Facility(2)is deleted in its ent:rsiy end al!references to acility(2)are deleted it their entirety 2. Under the Credit Facie:ties section,Fav,'ty(4) added to the Agreement as follows. Facilit=y(4): $713,000.00 non.revolving term facc,ty,by way of: (a) Loans. 3. Under the Purpose section,Facility(4)is added to the Agreement as follows: Facility(41 Finance construdbon of a new fire hall. rlegistered•i:acierrtark of Royal 8attk of Canada S' 7 ar 85653i493 The Corporation of the -2- June 20,2012 M'unic°pality Of Bayham 4. Under the Ave:lability section, Facility(4)is added to the Agreement as follows: Faci;ty(4) Tha Borrower may barrow up to the amount of this term faculty, provided: (a, this faciity made available at the sole d!scret4ori of the Bank and the Bank may cancel or restrict avallebi'ity of any unutil'zed portion of this fealty at any time and from;,me to time wit`tout notice or demand; 5. Under ti•s Repayment section, .7aci:.ty(4) is added to the Agreement as°mows: Fa 'ity(41 Borrowings under this shall be repayable by consecutive semi-annual b:erded payrems o'prircipal and interest in an amount of$32,500.00 each based on an amortization pec od of-15 yeas,commencing January 1,2013,and the ba ante of this faclity shalt be repayab a in fel!July 10,2017. 6. Under the Interest Rate and'Fees section, Facility(4)is added to the Agreement as glows: Facility(4) MTLoans: 3.56%per annum.Amount a igibe for prepayment is 0%. 7 Under;rte Reporting Requirements sactton, paragraphs(a)is amended and restated as follows: (a) annual audited financial statements or the Borrower.within 210 days of eacn fiscal year end. cotto riogS The effectvenessof this amending agreement is conditional upon receipt of: a) a duly executed copy cf this amending agreement b) such fnanciai and other information or documents re:Ong to the Borrower or any Guartntor if E,ppl'cable as the Bank may reasonably require;and c) such other a ithorizaticns,apprevais,opinions and crocumantation as:me Bank may reasonably rega:re. Additionally; d) all documentation to be received by tie Bank shall be in form and substance satisiactory io the Bank. 1 COND:71Q"�'S?R.-,.0 .J°T.'1! —r:,w.vv u`` '(4), 1) in addition:o the conditions set forth in tie Conditions Precedent section,the availat.ilry any Borrowing uncer Facility(4)is conditional upon the receipt of a) a true copy of the Borrower's by-law authorizing the Borrower to bcrrow under Facllity(4)in the amount and in the manner contemplated in this agreement. 2) Proceeds of Facility(4)shaft not exceed 100%of the costs of construction as per the Fbcea price contract The Corporation of the -3- June 20,2012 l.unicipauty Of 3ayha!r: C ART ._.,.>..,,. This amending agreement,•nay be executed fn any number of counterparts and by different partes in separate counterparts,each of which when so executed shall be deemed to be an origlha"are all of which taken togetler constitute one and the same instrument. Ali other terns and conditions oL tlirec+in the Agreement remain unchanged and n fu l force and effect. Tills amending agreement.s open for acceptance until July 23,2012,after w.iich aate't will Je null an void,c;-i;ess exter Jed in writing by tie 3ank. OY14:.,3 +:i PZ Or::CANADA. Per: Name:Bruce".(entad Title: Account Manager Agreed to and a.cepted st day of 3-Lt ,ao dor l,, ;i3 4 OF This ML041Ci?A,,,i7"O 3AY�.X o• ,Per: New): Eh5 itle: in ay per: L^'rDa t"arae:. Av i d / std Title,']`,r e 45 LA.r I(We have the authority to aim;the 3orrower