McGuinty Government Continues to Renew Public Infrastructure

Archived Release

McGuinty Government Continues to Renew Public Infrastructure

Ministry of Finance

36 More Municipalities Now Eligible for Low-Cost, Longer Term Loans TORONTO, Dec. 20 - The McGuinty government is helping an additional 36 Ontario municipalities to renew their public infrastructure through the second round of its low-cost loan program, Ontario Minister of Finance Greg Sorbara and Public Infrastructure Renewal Minister David Caplan announced today. "The low-cost, longer term loans will improve life in communities all over Ontario," said Sorbara. "With OSIFA's affordable financing our government is helping municipalities to fix their bridges and roads, upgrade water plants and renovate long-term care homes, among many other projects." This year alone 109 cities, towns and regions stand to benefit from up to $1.2 billion in low-cost, longer term loans from the Ontario Strategic Infrastructure Financing Authority (OSIFA). This new low cost loan program was announced in the 2004 Ontario Budget to help municipalities finance investments in critical public infrastructure, including clean water infrastructure, sewage infrastructure, municipal roads and bridges, waste management facilities, public transit, municipal long-term care homes and renewal of social housing. "This low-cost financing is just one of the many things our government is doing to improve the living conditions of Ontario's seniors," said John Gerretsen, Minister of Municipal Affairs and Housing and Minister Responsible for Seniors. "These loans show once again how we are working cooperatively with municipalities to help them improve the delivery of public services." The low-cost, longer term financing provided by OSIFA is part of the government's plan to restore Ontario's public infrastructure and ensure future economic prosperity. "This financing program is one of the many tools we are putting in place to help tackle the infrastructure deficit in Ontario," said David Caplan, Minister of Public Infrastructure Renewal. "Restoring and rebuilding the province's infrastructure is a key government priority to ensure all Ontarians enjoy a quality of life that is second to none. OSIFA will help achieve that goal." Disponible en français. www.osifa.on.ca Backgrounder ------------------------------------------------------------------------- ONTARIO STRATEGIC INFRASTRUCTURE FINANCING AUTHORITY In the 2004 Ontario Budget, the government created the Ontario Strategic Infrastructure Financing Authority (OSIFA) as an innovative financing vehicle that can be used by municipalities to renew and build critical public infrastructure assets. Renewing Ontario's public infrastructure improves the quality of public services and helps build a strong and prosperous economy. This financing vehicle also provides the federal government with an opportunity to partner with Ontario. OSIFA's Infrastructure Renewal Loan Program The Ontario Strategic Infrastructure Financing Authority will continue to develop and implement an infrastructure renewal loan program that provides efficient and affordable financing to meet critical municipal, health and housing infrastructure priorities. The success of OSIFA is based on a proven "pooled financing" concept that aggregates the infrastructure investment needs of many borrowers into one borrowing pool. The low-cost, longer term financing provided by OSIFA assists borrowers in renewing their infrastructure. The loans provided by OSIFA will be a key vehicle to achieving critical infrastructure objectives, particularly for many small municipal borrowers. Larger borrowers can benefit from significant savings on transaction costs. Municipalities are OSIFA's Initial Focus Earlier this year municipalities began working with OSIFA staff to complete their applications for OSIFA's 2004-05 Infrastructure Renewal Loan Program. All 445 incorporated Ontario municipalities are eligible to apply for an OSIFA loan. Municipalities apply through an interactive, user-friendly online application at www.osifa.on.ca. OSIFA's 2004-05 Infrastructure Renewal Loan Program, announced in the 2004 Ontario Budget, is focusing on Ontario's municipalities, offering affordable infrastructure financing for key municipal priorities: clean water infrastructure, sewage and waste management infrastructure, municipal roads and bridges, public transit, municipal long term care homes and renewal of municipal social housing. Round Two of OSIFA's Infrastructure Renewal Loan Program Round Two of OSIFA's 2004-05 Municipal Infrastructure Renewal Loan Program was launched by OSIFA on August 20, 2004 and closed on October 29, 2004. As promised in the 2004 Ontario Budget, municipal long-term care homes and renewal of municipal social housing were added as eligible loan categories. Thirty-six Ontario municipalities have applied for over $304 million in OSIFA financing. As was the case for OSIFA's 2004-05 first round, a mix of large and small, urban and rural municipalities applied to the second round of financing. More than half of the 36 municipalities that applied for this round were first-time applicants. The others were repeat customers. Loan requests for this round ranged from $161,000 to $43 million. This year alone 109 cities, towns and regions applied for OSIFA financing. These municipalities applied for up to $1.2 billion in OSIFA financing to help them finance hundreds of local projects. The Authority will enter into a financing agreement with each municipality, subject to technical and credit reviews, for a loan up to the maximum amount of the loan request. Public Infrastructure Renewal and OSIFA The Ministry of Public Infrastructure Renewal is developing a comprehensive 10-year plan to deal with Ontario's public infrastructure deficit and guide the development of public infrastructure in this province for the next generation. Last summer, this ministry introduced a new framework to guide the way the government plans, finances, builds and manages new infrastructure projects. The ministry also set up an expert panel to help establish a long-term strategy that will ensure everyone in Ontario continues to have access to clean, safe water at affordable rates. It is anticipated that the panel will have delivered a report to the government by winter 2005. On November 15, 2004 the Minister of Public Infrastructure Renewal announced a partnership with the federal government and the Association of Municipalities of Ontario to improve and renew public infrastructure in small urban and rural communities through the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF). Like COMRIF, OSIFA is an important tool available to the government's small and rural municipal partners to address their infrastructure needs. Invitation to the Government of Canada to Work with OSIFA In the 2004 Ontario Budget the Minister of Finance invited the Government of Canada to affirm its commitment to infrastructure renewal by joining Ontario in this new initiative. OSIFA officials have had general discussions with federal officials regarding the financing of infrastructure and infrastructure renewal. There are a number of ways that the federal government could participate in OSIFA's public infrastructure financing. This could include funding an interest rate subsidy on loans provided to public borrowers. The Ontario Ministries of Finance and Public Infrastructure Renewal would work with the Government of Canada to coordinate federal participation in the OSIFA program. Infrastructure Renewal Bonds Funding for OSIFA's Infrastructure Renewal Loan Program will come from the proceeds of the sale of Infrastructure Renewal Bonds (IRBs). These bonds will be available to institutional and individual investors. They will offer an investment that is backed by the credit strength of the broader public sector. As promised in the 2004 Ontario Budget, the first issue of IRBs will take place later this fiscal year. Infrastructure Renewal Bonds will provide local investors with a solid investment for their families and an opportunity to invest in Ontario's local infrastructure. Disponible en français. www.osifa.on.ca Fact sheet ------------------------------------------------------------------------- COMMUNITIES APPROVED FOR LOW-COST, LONGER TERM LOANS AS PART OF MCGUINTY GOVERNMENT'S PLAN FOR INFRASTRUCTURE RENEWAL The Ontario Strategic Infrastructure Financing Authority (OSIFA) offers low-cost, longer term loans that are helping to create strong communities, renew Ontario's public infrastructure and foster a quality of life that is second to none. The following communities have been approved for the second round of OSIFA's low-cost, longer term loans aimed at helping municipalities to improve their clean water facilities, sewage and waste management infrastructure, municipal roads and bridges and long-term care homes. The Ontario Strategic Infrastructure Financing Authority will enter into a financing agreement with each municipal borrower, subject to the fulfillment of all legal requirements as well as technical and credit reviews, for a loan up to the maximum amount of the municipality's loan request. ------------------------------------------------------------------------- Community Benefiting Maximum Residents Loan Approval Amount ($) ------------------------------------------------------------------------- NORTHERN ------------------------------------------------------------------------- Central Manitoulin* 1,775 $ 200,000 ------------------------------------------------------------------------- Ear Falls 1,150 $ 1,000,000 ------------------------------------------------------------------------- Gore Bay 842 $ 1,097,934 ------------------------------------------------------------------------- Greenstone 5,216 $ 1,500,000 ------------------------------------------------------------------------- Hearst 5,457 $ 6,300,000 ------------------------------------------------------------------------- Manitouwadge 2,856 $ 2,500,000 ------------------------------------------------------------------------- Thessalon 1,326 $ 205,659 ------------------------------------------------------------------------- WESTERN ------------------------------------------------------------------------- Adelaide Metcalfe 2,995 $ 420,000 ------------------------------------------------------------------------- Amherstburg 19,600 $ 18,584,774 ------------------------------------------------------------------------- Arran Elderslie 6,247 $ 7,224,000 ------------------------------------------------------------------------- Central Huron 7,500 $ 13,420,000 ------------------------------------------------------------------------- Chatham Kent 107,341 $ 43,000,000 ------------------------------------------------------------------------- Erin 10,195 $ 714,850 ------------------------------------------------------------------------- Georgian Bluffs 9,869 $ 20,000,000 ------------------------------------------------------------------------- Grey County 83,878 $ 10,890,000 ------------------------------------------------------------------------- Haldimand County 43,190 $ 22,250,000 ------------------------------------------------------------------------- Lambton County 126,971 $ 5,000,000 ------------------------------------------------------------------------- Middlesex County 63,827 $ 17,800,000 ------------------------------------------------------------------------- North Middlesex 6,693 $ 12,854,950 ------------------------------------------------------------------------- Oxford County 99,270 $ 26,483,100 ------------------------------------------------------------------------- St. Thomas 30,776 $ 18,000,000 ------------------------------------------------------------------------- West Perth 8,876 $ 400,000 ------------------------------------------------------------------------- CENTRAL ------------------------------------------------------------------------- Muskoka District* 159,078 $ 1,000 ------------------------------------------------------------------------- Orangeville 25,645 $ 1,000,000 ------------------------------------------------------------------------- Penetanguishene 8,500 $ 11,000,000 ------------------------------------------------------------------------- EASTERN ------------------------------------------------------------------------- Brockville 19,970 $ 25,400,000 ------------------------------------------------------------------------- Cobourg 15,697 $ 1,250,000 ------------------------------------------------------------------------- Lennox & Addington 35,425 $ 15,000,000 ------------------------------------------------------------------------- Loyalist 14,590 $ 161,000 ------------------------------------------------------------------------- Marmora and Lake 3,511 $ 1,000,000 ------------------------------------------------------------------------- Mississippi Mills 11,647 $ 4,471,000 ------------------------------------------------------------------------- Northhumberland County 70,775 $ 2,270,000 ------------------------------------------------------------------------- Prescott 3,783 $ 6,921,668 ------------------------------------------------------------------------- South Frontenac 14,707 $ 2,000,000 ------------------------------------------------------------------------- Trent Hills 11,962 $ 2,900,000 ------------------------------------------------------------------------- Tweed 5,193 $ 942,350 ------------------------------------------------------------------------- *Additional amounts requested to augment Round 1 approvals. The second round of OSIFA's 2004-05 Infrastructure Renewal Loan Program focuses on municipal priorities of improving clean water, sewage and waste management infrastructure, municipal roads and bridges and long-term care homes. The following outlines the percentage and estimated dollar value of the second round of loan requests in each priority area. ------------------------------------------------------------------------- Priority Percentage Total Value of Total ($ millions) Loan Program ------------------------------------------------------------------------- Clean Water Infrastructure 14.9% $ 45.3 ------------------------------------------------------------------------- Sewage Treatment Facilities 16.1% $ 49.0 ------------------------------------------------------------------------- Municipal Roads and Bridges 9.8% $ 30.1 ------------------------------------------------------------------------- Long-term Care Homes 57.8% $175.8 ------------------------------------------------------------------------- Waste Management Infrastructure 1.3% $ 4.0 ------------------------------------------------------------------------- www.osifa.on.ca Contact Info For further information: John MacMillan, Ontario Strategic Infrastructure Financing Authority, (416) 212-6856; Michael Arbour, Minister Sorbara's Office, (416) 325-4138 HELP | CONTACT US | PRIVACY | IMPORTANT NOTICES © Queen's Printer for Ontario, 2008-2009 — Last Modified: February 15, 2009 For further information: John MacMillan, Ontario Strategic Infrastructure Financing Authority, (416) 212-6856; Michael Arbour, Minister Sorbara's Office, (416) 325-4138