BEING A BY-LAW TO AUTHORIZE TEMPORARY BORROWING TO MEET THE CURRENT EXPENDITURES OF THE TOWN OF COLLINGWOOD UNTIL TAXES ARE COLLECTED AND OTHER REVENUES ARE RECEIVED
WHEREAS in accordance with subsection 407(1) of the Municipal Act, 2001, S.O. 2001, c.25 as amended (the “Act”), the Council of the Corporation of the Town of Collingwood (the “Municipality”) may deem it necessary to borrow from time to time the sum of $6,000,000.00 to meet, until taxes are collected, the current expenditures of the Municipality for the year 2016;
AND WHEREAS in accordance with subsection 407(2) of the Act, the total amount borrowed pursuant to this By-law, together with the total of any similar borrowing, is not to exceed:
a) from January 1 to September 30 in the year, fifty percent (50%) of the total estimated revenues of the municipality as set out in the budget adopted for the year; and
b) from October 1 to December 31 in the year, twenty-five percent (25%) of the total estimated revenues of the municipality as set out in the budget adopted for the year.
AND WHEREAS, until the budget is adopted in a year, the limits upon borrowing under subsection 407(2) of the Act, shall temporarily be calculated using the estimated revenues of the municipality set out in the budget adopted for the previous year;
AND WHEREAS the total amount previously borrowed by the Municipality pursuant to subsection 407(1) of the Act that has not been repaid is “nil”;
NOW THEREFORE the Council of the Corporation of the Town of Collingwood hereby enacts as follows:
1. THAT the Mayor and the Treasurer are authorized, on behalf of the Municipality, to borrow from time to time, by way of promissory note or bankers’ acceptance from the Town’s financial institution (the “Bank”), a sum or sums not exceeding in the aggregate $6,000,000.00 to meet, until taxes are collected, the current expenditures of the Municipality for the year, including the amounts required for the purposes mentioned in subsection 407(1) of the Act and to give on behalf of the Municipality to the Bank, promissory notes or bankers’ acceptances, as the case may be, sealed with the Corporate Seal and signed by the Mayor and Treasurer for the sums borrowed plus interest at a rate to be agreed upon from time to time with the Bank.
2. THAT all sums borrowed pursuant to the authority of this by-law, as well as all other sums borrowed this year and in previous years from the Bank for any or all of the purposes in the Act, shall, with interest thereon, be a charge upon the whole of the revenues of the Municipality for the current year and for all preceding years as and when such revenues are received.
3. THAT the Treasurer is authorized and directed to apply in payment of all sums borrowed plus interest, all of the monies collected or received on account in respect of taxes levied for the current year and preceding years or from any other sources which may lawfully be applied for such purpose.
4. THAT the Treasurer is authorized to furnish to the Bank a statement showing the nature and amount of the estimated revenues of the Municipality not yet collected and also showing the total of any amounts borrowed under Section 407 of the Act that have not been repaid.
5. THAT this By-law shall come into full force and effect on the date of final passage hereof at which time all By-laws that are inconsistent with the provisions of this By-law and the same are hereby repealed insofar as it is necessary to give effect to the provisions of this By-law.
ENACTED AND PASSED this 16th day of January, 2017.