ontario regulation 289/11
made under the
Municipal Act, 2001
Made: June 22, 2011
Filed: June 24, 2011
Published on e-Laws: June 28, 2011
Printed in The Ontario Gazette: July 9, 2011
Amending O. Reg. 403/02
(Debt and Financial Obligation Limits)
1. Ontario Regulation 403/02 is amended by adding the following section:
4.1 (1) The treasurer of York Region shall in each fiscal year calculate a cost supplement for the municipality for the servicing of growth-related debt, as follows:
1. For each of the preceding three fiscal years, estimate the total amount paid to York Region under the Development Charges Act, 1997.
2. Find the average of the three amounts determined under paragraph 1.
3. Take 80 per cent of the amount determined under paragraph 2.
(2) The treasurer of York Region shall in each fiscal year calculate a growth-related debt and financial obligation limit for the municipality by finding the sum of,
(a) the cost supplement determined for the municipality under subsection (1); and
(b) the most recent debt and financial obligation limit for the municipality determined by the Ministry under section 3.
(3) Despite subsection 4 (1), if the conditions listed in subsection (7) are met, before authorizing any specific work or class of work or any increase in expenditure for a previously authorized specific work or class of work that would require a long-term debt or financial obligation described in section 2, the council of York Region shall have its treasurer calculate an updated limit in the manner described in subsection (4).
(4) The treasurer shall update the limit in accordance with subsections 4 (2) to (6), using the most recent growth-related debt and financial obligation limit in place of the most recent debt and financial obligation limit determined by the Ministry.
(5) If the council of York Region borrows money or issues debentures for the exclusive purposes of one or more other municipalities or school boards, the council is not required to have its treasurer update its growth-related debt and financial obligation limit in respect of the borrowing or issuance, and subsection 4 (8) applies to the treasurer in respect of the borrowing, issuance or authorization.
(6) If, after an update under subsection (4), the amount calculated under subsection 4 (3) exceeds the amount updated under subsection 4 (2), the council of York Region must obtain the approval of the Ontario Municipal Board before authorizing the work or class of work.
(7) The conditions referred to in subsection (3) are as follows:
1. York Region’s credit rating is,
i. “AA(low)” or higher, as determined by Dominion Bond Rating Service Limited,
ii. “AA–” or higher, as determined by Fitch Ratings,
iii. “Aa3” or higher, as determined by Moody’s Investors Services Inc., or
iv. “AA–” or higher, as determined by Standard and Poor’s.
2. York Region has not had, at any time in the current or previous fiscal year, a credit rating from a securities rating service listed in subparagraphs 1 i to iv that is lower than the rating set out in the subparagraph.
3. The council of York Region, as part of the preparation of its budget for the fiscal year, adopted or affirmed a plan for the fiscal year for the management of its long-term debt and financial obligations.
(8) The council of York Region shall consider the following matters before adopting or affirming a plan referred to in paragraph 3 of subsection (7):
1. The municipality’s needs for its long-term debt and financial obligations over a multi-year period.
2. Projections for each year of the multi-year period for,
i. the annual amount payable by the municipality for any existing or proposed long-term debt or financial obligations described in section 2, and
ii. the amount of the growth-related debt and financial obligation limit.
3. How to manage the municipality’s long-term debt and financial obligations in a prudent and cost-effective manner.
4. How to manage, in a prudent and cost-effective manner, the estimated,
i. periods for the repayment of long-term debt and periods for completing the payments required by other long-term financial obligations,
ii. total interest and other costs of long-term debt and other financial obligations, and
iii. total levels of the principal due on long-term debt and total levels of other long-term financial obligations.
5. How to manage the risks associated with undertaking the planned long-term debts and financial obligations.
6. How to manage interest rate risk and foreign currency exposure.
7. Mitigation strategies for adverse contingencies.
8. The estimated needs of the municipality in the fiscal year for temporary borrowing until the taxes are collected and other revenues are received.
9. The municipality’s long-term debt and financial obligation policies and the municipality’s compliance with them.
10. For the 2012 fiscal year and subsequent fiscal years,
i. an evaluation of the actual outcomes in the previous year with respect to the matters in paragraphs 1 to 7,
ii. a comparison of the outcomes to the previous year’s projections for those matters, and
iii. whether the plan needs amendment for the current fiscal year.
(9) In the 2011 fiscal year, the council of York Region may adopt or affirm a plan referred to in paragraph 3 of subsection (7) at any time during the fiscal year.
(10) In this section,
“York Region” means The Regional Municipality of York.
(11) This section is revoked on December 31, 2021.
2. This Regulation comes into force on the day it is filed.