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RURAL MUNICIPALITY OF MISCOUCHE
Special Meeting West Lagoon Project
September 20th, 2023

1. OPENING MEETING
Mayor Albert Gallant called the meeting to order at 6:00 P.M.

Present:
Albert Gallant  – Mayor
Allan Parks – Deputy Mayor
Ivan Blanchard- Councillor
Charles MacAusland- Councillor
David Hughes- Councillor  (Absent)
Corey Gillis  Councillor  (Absent)
Michelle Perry- CAO

1 member of the public

Mayor Gallant opened the meeting at 6:00pm and handed the meeting over to Deputy Mayor Parks

Deputy Mayor gave a brief explanation for the meeting, that in order for the community to complete the project for the West Lagoon Upgrades they will need to borrow the full amount of the project cost until the invoices are paid and then submitted to the government for payment. The bank was also requesting a opinion letter from out lawyer to insure that the community is following their borrowing bylaw.

Deputy Mayor read the following resolution.

 

WHEREAS the Rural Municipality of Miscouche (the “Municipality”) has entered into a Funding Agreement with the Government of Prince Edward Island dated the 10th day of December 2021 under the Investing in Canada Infrastructure Program (the “Funding Agreement”) for the purpose of making upgrades to the West Lagoon;
AND WHEREAS the Council for the Municipality considers the said upgrades to the West Lagoon to be necessary and in the public interest;
AND WHEREAS pursuant to the Funding Agreement, the Government of Canada will fund 40% of eligible costs up to $1,238,760.54 and the Government of Prince Edward Island will fund 33.33% of eligible costs up to $1,032,197.22;
AND WHEREAS it is necessary for the Municipality to borrow monies to fund expenditures for the project until reimbursement is received under the Funding Agreement and to fund the Municipality’s portion of this important capital project;
AND WHEREAS the matter of upgrades to West Lagoon was included in the Municipality’s 2023/2024 Capital Budget;
AND WHEREAS borrowing of funds for capital expenditures is authorized by the Municipality’s Bylaw # 2022-01, the General Borrowing Bylaw, and section 164 of the Municipal Government Act, RSPEI 1988, c M-12.1;
AND WHEREAS the current assessed value of real property in the Municipality is $61,807,061.00;
AND WHEREAS the Consolidated Credit Union Ltd. has offered to finance the West Lagoon project on terms and conditions set out in a Credit Agreement dated the 20th day of September, 2023;
AND WHEREAS section 168 of the Municipal Government Act and section 8 of the General Borrowing Bylaw establish the content of a resolution to borrow;
BE IT RESOLVED that Council authorizes the borrowing of money for the West Lagoon project as follows:
(a) the amount proposed to be borrowed;
The amount proposed to be borrowed is $3,444,374.00.
(b) a statement that the amount borrowed will not cause the municipality to exceed its debt limit;
Based on the current assessed value of real property in the Municipality and present capital debt, the amount borrowed will not cause the municipality to exceed its debt limit prescribed by subsections 164(3) and 164(5) of the Act.
(c) the purpose for which the expenditure is to be made;
The expenditure is for the purpose of making necessary upgrades to the West Lagoon.
(d) the proposed term or terms and amortization of the loan;
The loan is a demand loan payable in monthly installments of interest only until the project is complete and all funds from the Government of Canada and the Government of Prince Edward Island have been received and applied as lump sum principal payments to the loan, which are anticipated to reduce the outstanding principal balance to $1,173,416.00, at which time, the repayment will convert to monthly payments of principal and interest in the amount of $7,806.07. The loan is amortized over 25 years, commencing with date that payments convert to principal and interest payments. The term of the loan is one year.
(e) the estimated rate of interest and commissions or other costs payable on the loan;
The estimated rate of interest is fixed at 6.34% for a term of 12 months, after which a new interest rate will be determined.
(f) the method of repayment; and
The loan will be paid in monthly installments until all principal and interest have been paid.
(g) the security, if any, to be given by the municipality for the repayment of the loan; and
The security for the loan to be given by the municipality includes:
Demand Promissory Note from the Municipality in favour of Consolidated Credit Union Ltd.;
General Security Agreement;
Such other security as the Credit Union or its solicitors may determine as necessary.
(h) the revenue sources to be used to repay the capital and interest owing for the amount to be borrowed;
The Municipality will repay the capital and interest owing for the amount to be borrowed through the sewerage tariffs charged to resident individuals and businesses, as approved by the Island Regulatory and Appeals Commission on January 17, 2022 in Order UW22-01.

MOTION moved by Allan Parks seconded by Charles MacAusland and carried.
That the community borrow the full amount of $3,444,374.00 until the funding agreement from the government pay out their share of the project.  The community will then have a loan that will total $1,173,416.00 for the project.

Mayor Gallant thanked everyone for coming to the meeting.