3770-2025 Ontario Infrastructure & Lands Corporation (OILC) Financing Agreement
BEING A BY-LAW TO APPROVE THE SUBMISSION OF AN APPLICATION TO ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (“OILC”) FOR THE LONG-TERM FINANCING OF CERTAIN CAPITAL WORK(S) OF THE TOWNSHIP OF AUGUSTA (THE “MUNICIPALITY”); AND TO AUTHORIZE THE ENTERING INTO OF A RATE OFFER LETTER AGREEMENT PURSUANT TO WHICH THE MUNICIPALITY WILL ISSUE DEBENTURES TO OILC
Passed by Council March 24, 2025
THE CORPORATION OF THE TOWNSHIP OF AUGUSTA
BY-LAW NUMBER 3770-2025
BEING A BY-LAW TO APPROVE THE SUBMISSION OF AN APPLICATION TO
ONTARIO INFRASTRUCTURE AND LANDS CORPORATION (“OILC”) FOR THE
LONG-TERM FINANCING OF CERTAIN CAPITAL WORK(S) OF THE TOWNSHIP OF
AUGUSTA (THE “MUNICIPALITY”); AND TO AUTHORIZE THE ENTERING INTO OF
A RATE OFFER LETTER AGREEMENT PURSUANT TO WHICH THE MUNICIPALITY
WILL ISSUE DEBENTURES TO OILC.
WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the “Act”) provides that a
municipal power shall be exercised by by-law unless the municipality is specifically
authorized to do otherwise;
AND WHEREAS the Council of the Municipality has passed the by-law(s) enumerated
in column (1) of Schedule “A” attached hereto and forming part of this By-law
(Schedule “A”) authorizing the capital work(s) described in column (2) of Schedule “A
(“Capital Work(s)”) in the amount of the respective estimated expenditure set out in
column (3) of Schedule “A”, subject in each case to approval by OILC of the long-term
financing for such Capital Work(s) requested by the Municipality in the Application as
hereinafter defined:
AND WHEREAS before the Council of the Municipality approved the Capital Work(s) in
accordance with section 4 of Ontario Regulation 403/02 (the “Regulation”), the Council
of the Municipality had its Treasurer calculate an updated limit in respect of its then most
recent annual debt and financial obligation limit received from the Ministry of Municipal
Affairs and Housing (as so updated, the “Updated Limit”), and, on the basis of the
authorized estimated expenditure for the Capital Work or each Capital Work, as the
case may be, as set out in column (3) of Schedule “A” (the “Authorized Expenditure”
for any such Capital Work), the Treasurer calculated the estimated annual amount
payable in respect of the Capital Work or each Capital Work, as the case may be, and
determined that the estimated annual amount payable in respect of the Capital Work or
each Capital Work, as the case may be. did not cause the Municipality to exceed the
Updated Limit, and accordingly the approval of the Ontario Land Tribunal pursuant to
the Regulation, was not required before any such Capital Work was authorized by the
Council of the Municipality:
AND WHEREAS subsection 401(1) of the Act 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;
AND WHEREAS the Act also provides that a municipality shall authorize long-term
borrowing by the issue of debentures or through another municipality under section 403
or 404 of the Act;
AND WHEREAS OILC has invited Ontario municipalities desirous of obtaining long-term
debt financing in order to meet capital expenditures incurred on or after the year that is
five years prior to the year of an application in connection with eligible capital works to
make application to OILC for such financing by completing and submitting an application
in the form provided by OILC;
AND WHEREAS the Municipality has completed and submitted or is in the process of
submitting an application to OILC, as the case may be to request financing for the
Capital Work(s) by way of long-term borrowing through the issue of debentures to OILC,
substantially in the form of Schedule “B” hereto and forming part of this By-law (the
“Application”);
AND WHEREAS OILC has accepted and has approved or will notify the Municipality
only if it accepts and approves the Application, as the case may be;
AND WHEREAS at least five (5) business days prior to the passing of the debenture by
law in connection with the issue of Debentures as defined below, OILC will provide the
Municipality with a rate offer letter agreement substantially in the form as provided to the
Municipality on or prior to the date of this By-law (the “Rate Offer Letter Agreement”);
NOW THEREFORE the council of the Township of Augusta enacts as follows:
1. The Council of the Municipality hereby confirms, ratifies and approves the
execution by the Treasurer of the Application and the submission by such
authorized official of the Application, duly executed by such authorized official, to
OILC for the long-term financing of the Capital Work(s) in the maximum principal
amount of $425,000, with such changes thereon as such authorized official may
hereafter, approve such execution and delivery to be conclusive evidence of such
approval.
2. The Mayor and the Treasurer are hereby authorized to execute and deliver for
and on behalf of the Municipality the Rate Offer Letter Agreement under the
authority of this By-law in respect of the Capital Work(s) on such terms and
conditions as such authorized officials may approve, such execution and delivery
to be conclusive evidence of such approval.
3. Subject to the terms and conditions of the Rate Offer Letter Agreement, the
Mayor and the Treasurer are hereby authorized to long-term borrow for the
Capital Work(s) and to issue debentures to OILC on the terms and conditions
provided in the Rate Offer Letter Agreement (the “Debentures”); provided that
the principal amount of the Debentures issued in respect of the Capital Work or of
each Capital Work, as the case may be, does not exceed the Authorized
Expenditure for such Capital Work and does not exceed the related loan amount
set out in column (4) of Schedule “A” in respect of such Capital Work.
4. In accordance with the provisions of section 25 of the Ontario Infrastructure and
Lands Corporation Act, 2011, as amended from time to time hereafter, the
Municipality is hereby authorized to agree in writing with OILC that the Minister of
Finance is entitled, without notice to the Municipality, to deduct from money
appropriated by the Legislative Assembly of Ontario for payment to the
Municipality, amounts not exceeding the amounts that the Municipality fails to pay
to OILC on account of any unpaid indebtedness of the Municipality to OILC under
the Debentures (the “Obligations”) and to pay such amounts to OILC from the
Consolidated Revenue Fund.
5. For the purposes of meeting the Obligations, the Municipality shall provide for
raising in each year as part of the general levy, the amounts of principal and
interest payable in each year under the Debentures issued pursuant to the Rate
Offer Letter Agreement, to the extent that the amounts have not been provided
for by any other available source including other taxes or fees or charges
imposed on persons or property by a by-law of any municipality.
6. (a) The Mayor and the Treasurer are hereby authorized to execute and deliver
the Rate Offer Letter Agreement, and to issue the Debentures, one or
more of the Clerk and the Treasurer are hereby authorized to generally do
all things and to execute all other documents and papers in the name of
the Municipality in order to perform the terms and conditions that apply to
the Municipality as set out in the Rate Offer Letter Agreement and to
perform the Obligations of the Municipality under the Debentures, and the
Treasurer is authorized to affix the Municipality’s municipal seal to any
such documents and papers.
(b) The money realized in respect of the Debentures, including any premium,
and any earnings derived from the investment of that money, after
providing for the expenses related to the issue of the Debentures, if any,
shall be apportioned and applied to the respective Capital Work and to no
other purpose except as permitted by the Act.
7. This By-Law takes effect on the day of passing.
Read a first, second, and third time and finally passed this 24th day of March 2025.
Signed by Mayor Jeff Shaver and Clerk Lindsey Veltkamp
Schedule “A”
to By-Law Number 2025-3770
(Capital Work(s))
By-Law Number: 2025-3770
Description of Capital Work: 2026 Tandem Freightliner
Estimated Expenditure: $425,000.00
Loan Amount: $425,000.00
