3612-2023 Temporary Borrowing By-Law
BEING A BY-LAW TO AUTHORIZE TEMPORARY BORROWING FROM TIME TO TIME TO MEET CURRENT EXPENDITURES DURING THE FISCAL YEAR ENDING DECEMBER 31, 2023
Passed by Council January 9, 2023
THE CORPORATION OF THE TOWNSHIP OF AUGUSTA
BY-LAW NO. 3612-2023
A BY-LAW TO AUTHORIZE TEMPORARY BORROWING FROM TIME TO TIME TO
MEET CURRENT EXPENDITURES DURING THE FISCAL YEAR ENDING
DECEMBER 31, 2023
WHEREAS Section 407 of the Municipal Act, 2001, as amended, provides authority for a
council by By-Law to authorize the head of council or the treasurer or both of them to
borrow from time to time, such sums as the council considers necessary to meet, until
taxes are collected and other revenues are received, the current expenditures of the
Municipality for the year; and
WHEREAS the total amount which may be borrowed from all sources at any one time to
meet the current expenditures of the Municipality, except with the approval of the
Municipal Board, is limited by Section 407 of the Municipal Act, 2001;
NOW THEREFORE the Council of the Corporation of the Township of Augusta does
hereby enact as follows:
1. The head of council or the treasurer or both of them are hereby authorized to
borrow from time to time during the fiscal year (hereinafter referred to as the
current year) such sums as may be necessary to meet, until taxes are collected
and other revenues are received, the current expenditures of the Municipality for
the current year.
2. The lender(s) from whom amounts may be borrowed under authority of this ByLaw
shall be ROYAL BANK OF CANADA and such other lender(s) as may be
determined from time to time by By-Law of Council.
3. The total amount which may be borrowed at any one time under this By-Law plus
any outstanding amounts of principal borrowed and accrued interest under
Section 407 together with the total of any similar borrowings that have not
been repaid, shall not exceed from January 1st to September 30th of the
current year, 50 percent of the total estimated revenues of the Municipality as
set out in the budget adopted for the current year, and from October 1st to
December 31st of the current year, 25 percent of the total of the estimated revenues
of the Municipality as set out in the budget adopted for the current year or
$1,000,000, whichever is less.
4. The Treasurer shall, at the time when any amount is borrowed under this By-Law,
ensure that the lender is or has been furnished with a certified copy of this By-Law,
(a certified copy of the resolution mentioned in section 2 determining the lender,) if
applicable, and a statement showing the nature and amount of the estimated
revenues for the current year and also showing the total of any other amounts
borrowed from any and all sources under authority of section 407 of the Municipal
Act, 2001 that have not been repaid.
5. a) If the budget for the current year has not been adopted at the time an amount is
borrowed under this By-Law, the statement furnished under section 4 shall show
the nature and amount of the estimated revenues of the Municipality as set forth in
the budget adopted for the previous year and the nature and amount of the
revenues received for and on account of the current year.
b) If the budget for the current year has not been adopted at the time an amount is
borrowed under this By-Law, the limitation on borrowing set out in section 3 shall
be calculated for the time being upon the estimated revenues of the Municipality as
set forth in the budget adopted for the previous year less all revenues received for
and on account of the current year.
6. For purposes of this By-Law the estimated revenues referred to in section 3, 4, and
5 do not include revenues derivable or derived from, a) any borrowing, including
through any issue of debentures; b) a surplus, including arrears of taxes, fees or
charges; or c) a transfer from the capital fund, reserve funds or reserves.
7.The Treasurer is hereby authorized and directed to apply in payment of all or any
sums borrowed under this By-Law, together with interest thereon, all or any of the
moneys hereafter collected or received, either on account of or realized in respect of
the taxes levied for the current year and preceding years or from any other source,
which may lawfully be applied for such purpose.
8. Evidence of indebtedness in respect of borrowings made under section 1 shall be
signed by the Head of Council or the Treasurer or both of them.
9. The Bank shall not be responsible for establishing the necessity of temporary
borrowing under this By-Law or the manner in which the borrowing is used.
10. This By-Law shall take effect at time of passing.
Read a first and second time this 9th day of January 2023.
Read a third time and passed this 9th day of January 2023.
Signed by Mayor Jeff Shaver and Clerk Annette Simonian
