Multi-Year Debenture and Temporary Borrowing Authorities - Current Term of Council 2022 to 2026

Following the City committing to issue the long-term debt through the delegated authority to enter into such a commitment being exercised by the Mayor (or Mayor's Alternate) and the Chief Financial Officer and Treasurer, the Debenture Committee must authorize it. The Committee is comprised of the Mayor, Chair of the Budget Committee, the City Manager and the Chief Financial Officer and Treasurer. Recognizing that such approvals for long-term debt must be obtained in a timely manner as required by capital market participants, City Council delegated authority to approve debt issuance and to adopt the necessary borrowing by-laws to the Debenture Committee. In addition, the report requests the delegation of Council's authority to the Chief Financial Officer and Treasurer to negotiate and enter into agreements for bank loans and promissory notes not to exceed 365 days in respect of certain short-term borrowing activities on behalf of the City for the current term of Council. These activities include: a. temporary borrowing primarily for operating expenses pending the receipt of annual taxes and other revenues during Council's term, up to the recommended annual limits; and b. temporary borrowing for approved capital works pending long-term financing, up to the recommended annual limits. Since 2011, this authority has been delegated by Council for the duration of the Council term, within prescribed annual monetary limits. Prior to 2011, the authority was delegated annually. This report recommends the delegation previously authorized for 2022 continue for the remaining portion of 2022 which falls under this new Council term, allowing the City to issue debt prior to 2023. These measures are necessary to support the City's efforts to access the capital markets in an efficient and effective manner so as to achieve its capital and operating requirements.

and for entering into bank loan agreements and conditional loan agreements with the Canada Infrastructure Bank, upon such terms and conditions, including price, as they deem expedient, for the purposes of borrowing money to obtain or provide long-term financing of any capital work, in an annual amount not to exceed $2.0 billion per year provided that such debt issue is in compliance with the Council approved debt guidelines as amended from time to time; b. enter into any additional agreements necessary to provide for the management of interest rate risk, the management of currency risk or to minimize the costs or risks due to fluctuations in interest rates, all associated with the debentures, revenue bonds, or bank loan agreements upon terms satisfactory to them; and c. to reopen an existing debenture issue if it is determined that the reopening will be advantageous to the City, depending upon capital market conditions. 2. City Council authorize the Chief Financial Officer and Treasurer, during each of the years of the 2022 to 2026 Council term, to: a. temporarily borrow amounts that the City considers necessary to meet expenses of the City for the year and of prescribed amounts, whether or not they are expenses for the year, that the City requires in the year as set out in the applicable regulation under the City of Toronto Act, 2006 until such time as the taxes are collected and other revenues are received, provided the total amount so borrowed plus the principal amount of any outstanding temporary borrowings together with all accrued interest thereon at any time will not exceed $500 million per year, or; b. temporarily borrow for capital works pending the issuance of debentures or entering into bank loans, in an amount not to exceed $500 million per year. 3. City Council amend Municipal Code Chapter 30, Debenture and other Borrowing, to reflect Recommendations 1 and 2 above, and authority be granted for the introduction of the necessary Bills in Council to give effect to the foregoing. 4. City Council amend the Financing of Capital Works Policy and Goals to reflect Recommendations 1 and 2 above.