The Tile Drainage Act allows municipalities to sell debentures to the Province for funding private tile drainage projects. A municipality may only offer to see one debenture per month to the province, and this debenture must be dated for the first of the month and must include all tile loans received for that month.
The term of the loan is 10 years and the repayment is due annually. The interest rate for the loans issued under this Program will be at 6%, fixed for the 10 year term of the loan. Interest is compounded annually, and the loan can be fully paid at any time without penalty.
Provincial policy limits the amount of loan available to a farmer each year. The policy reads as follows: "The sum of all loans issued in any fiscal year, to an individual, as an individual, or in his role in a partnership or corporation shall not exceed $50.000".
Therefore, farmers may obtain a loan for the lesser of:
a) amount applied for by the farmer;
b) 75% of the value of the tile drainage work performed; or
c) $50,000.
There are costs that cannot be included in a Tile Loan application. Any costs incurred off the farm property or any costs not related to the tile drainage system are not eligible for the loan. In addition, the cost of HST and work performed illegally by a tile drainage contractor that is not licensed under the Agricultural Tile Drainage Installation Act is not eligible for a loan.
The following documents are required:
1) Copies of contractors invoices
2) A map (showing drainage on property).
When the drainage contractor starts the work on your property, please contact the Township of Southgate office and speak with Public Works Manager so that a site visit to your property can be arranged to complete an inspection report required by the Province of Ontario.
To start the application process and for further information, please contact Nicole Corley, Property Tax and Assessment Coordinator, at 519-923-2110 ext. 221 or ncorley@southgate.ca
Tile Loan Application - Form 6
