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HomeMy WebLinkAboutBy-law No. 2008-010 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO.2008-010 A BY-LAW TO ESTABLISH A POLICY RESPECTING MUNICIPAL SHORT TERM LOANS WHEREAS pursuant to provisions of the Municipal Act, 2001, a municipality is permitted to make loans subject to terms as determined by council. AND WHEREAS these loans can be made to "any person, group or body...for any purpose that council considers to be in the interests of the municipality". AND WHEREAS the Council of the Municipality of Bayham is desirous of establishing a policy to permit the making of such loans in a fair,open and expeditious manner. AND WHEREAS Council for the Corporation of the Municipality of Bayham deems it necessary and expedient to establish such policy under the provisions of the Municipal Act or its regulations by by- law; THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the Policy Respecting Municipal Short Term Loans marked as Schedule "A" attached hereto and forming part of this By-law be and the same is hereby adopted. 2. AND THAT this By-law shall come into force and effect upon the date if its enactment. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 17TH DAY OF JANUARY 2008. d MAYOR CLERK Schedule"A" to BIL 2008-010 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM POLICY FOR MUNICIPAL SHORT TERM LOANS Policy and Procedures 2007 Applications for Municipal Short Term Loans Goals and Objectives 1. To ensure continued citizen and community group involvement in local festivals for the social well being and economic development of the community. 2. To support the efforts of community groups to develop tourism within the community. 3. To provide limited financial assistance, in loan form,to community groups and organizations. 4. To allocate limited resources in a fair and consistent manner. Definition of Financial Assistance 1. Short term, no-or low-interest loans for the purpose of temporarily financing local festivals. Guidelines 1. Must be for a festival that encourages community involvement and attracts visitors to the community. 2. Must demonstrate a financial need. 3. Must show detailed,prior year financial statements and current budget specific to the festival being promoted. 4. New festivals may submit proposed budgets only. Eligibility 1. Applicants must be non-profit community groups and organizations (individuals are not eligible). 2. Must be for a local, community-based festival. Municipality of Bayham Municipal Loan Application Form Note: Loans in any one year or over several years is not to be interpreted as a commitment of future years' funding. A. Name of Organization and Mailing Address: Contact Person Position Telephone# B: Assistance Requested Loan Amount $ C: Purpose of Loan: (ie: upfront services required, advance bookings,etc) D: Organization Background: (Note: Group Constitution/By-laws may be submitted in place of completing items 1 and 2) 1. Provide a brief outline of your organization, and indicate if it is incorporated as a non-profit organization. 2. What are the general objectives/services of your organization? 3. How many volunteers participate in your program? 4. Does your organization provide a service to: a) All citizens b) A specific group c) A specific area 5. Has your organization requested financial assistance in the last 12 months from other government organizations? If so,please list with amounts received. 6. What other steps are being taken to increase revenues? (ie: admission fees etc) 7. Have you received funding from the Municipality in prior years? If so, how much? 8. Will your organization ever be self supporting? 9. List of Executive of your Organization 10. Submit an estimate of operating revenues and expenditures for your organization for the current fiscal year on the attached form. (Note: Prior years Statements can be submitted or completed on attached form) Date: Name and Title of Officer making Application Signature Telephone Number Statement of Revenues and Expenditures (name of organization) For the Year Ending Sources of Revenue Current Budget Last Year Actuals From Operations (list separately) $ $ (Include ticket sales,user fees, fundraising events, service charges, etc.) From Grants—include all municipal,provincial, federal Total Revenues: $ $ Expenditures Employment Costs: Administration Costs: (List separately) Include utilities,maintenance, supplies, repairs,permit fees, etc. Donations etc.—List All: (Individuals donations may be summarized) Total Expenditures: $ $ Surplus/Deficit: Surplus/Deficit from prior year: Cash on hand: PROMISSORY NOTE MADE in duplicate this day of BETWEEN: (hereinafter referred to as the" ") of the First Part THE CORPORATION OF THE MUNICIPALITY OF BAYHAM (hereinafter referred to as the"Municipality") of the Second Part WHEREAS the desires to host a festival within the Municipality of Bayham; AND WHEREAS the has requested and the Municipality has agreed to provide financing for the said festival; NOW THEREFORE the Municipality agrees to provide financing in the form of a loan in the amount of $ at a rate of X.XX%per annum to be repaid within 12 months of the loan advance; AND THEREFORE the agrees to repay the Municipality the full amount of principal and any interest that has accrued to date within 12 months of the loan advance; IN ADDITION, it is the sole responsibility of the to procure the required supplies, materials, contractors, etc. for the said festival. IN WITNESS WHEREOF the Corporate parties have affixed their Corporate Seals under the hands of their officers duly authorized in that behalf, and the individual parties have set their hands and seals. SIGNED,SEALED AND DELIVERED ) in the presence of: ) ) ) ) ) ) ) ) ) THE CORPORATION OF THE ) MUNICIPALITY OF BAYHAM ) ) ) ) GUIDELINES Re: Application for Municipal Short Term Loans The municipality is permitted under the Municipal Act, 2001 to make loans subject to terms as determined by council. These loans cannot be made to businesses and/or for-profit organizations but can be made to "any person, group or body...for any purpose that council considers to be in the interests of the municipality". Council should be very specific in setting out the parameters for the lending of funds. 1. Eligibility — Loans can only be provided to local community groups and organizations. This is the same as defmed in the Municipal Assistance policy. There are no issues in signing agreements with groups or organizations that are incorporated or are incorporated as charitable organizations. Groups that are simply a collection of like- minded individuals will be a little more difficult. These agreements are then personal and the signing individuals would be personally responsible for the loan. 2. Criteria — The intent of the program is to provide start-up and operational funds for local festivals and events. The policy should be limited to these types of events. 3. Terms — Loans should be short-term in nature. It is suggested that the maximum repayment term be set at one year from the date of the loan agreement. It should also be stipulated that subsequent loans will not be considered until such time as any outstanding loans are repaid in full. Interest rates will have to be determined on an annual basis and the same rate charged to all groups. 4. Amounts — Set clearly defmed loan value limits. These can either be specific dollar values or a percent of budgeted/prior year revenues or expenses. It is recommended that a percentage of budgeted festival expenditures be specified as the maximum loan value. This permits equitable treatment but still provides loans on a scale suitable to the individual festivals. 5. Documentation — An Application Form shall be submitted with a loan request. The current budget and prior year fmancial statements should be included and provide some detail and be specific to the festival concerned. New festivals or events may submit proposed budgets. 6. A By-law authorizing execution of such loan agreement or promissory note by the Mayor and Clerk shall be approved by Council. 7. The loan agreement or promissory note shall be executed by two authorized signing officers of the organization making the application.