Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

9 January 2009 / le 9 janvier 2009

 

Submitted by/Soumis par : Marian Simulik,
City Treasurer, Trésorière municipale

 

Contact Person/Personne ressource : Gerry Mahoney,
Manager, Treasury / gestionnaire, Trésorerie

Financial Services/Services financiers

(613) 580-2424 x 21310, gerry.mahoney@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0002

 

 

SUBJECT:

SINKING FUND LEVIES

 

 

OBJET :

taxes aux fins du fONDS D'AMORTISSEMENT

 

 

 

REPORT RECOMMENDATION

 

That the Corporate Services and Economic Development Committee and Council receive this report for information.

 

 

RECOMMANDATION DU RAPPORT

 

Que le Comité des services organisationnels et du développement économique et le Conseil prennent connaissance du présent rapport.

 

 

BACKGROUND

 

When the City issues sinking fund debentures, annual contributions are made to the Sinking Fund, which together with interest earnings derived from the investment of these funds, accumulate to an amount that will be sufficient to pay the debentures on maturity.

 

In accordance with subsection 424(4) of the Municipal Act, the City Treasurer is required to prepare and submit to Council in each year, a statement showing the sums that Council will be required, by by-law, to raise for sinking funds in that year.  A report on the sinking fund earnings for the year, including the balance of each sinking fund account, is provided to Council annually once the accounts have been closed and the financial statements for the sinking fund have been prepared and the audit has been completed. 

 

ANALYSIS

 

The following is a statement of the sinking fund requirements for 2009:

 

Debenture By-law

Sinking Fund Amounts

$

33-1991

1,000,000

81-1992

3,975,229

68-1998

1,036,501

72-1999

3,210,575

 

9,222,305

 

In accordance with provisions of the debenture by-laws, the sinking fund amounts will be levied as follows: 

 

Purposes

Sinking Fund Amounts

$

Tax Supported

7,388,285

Rate Supported

1,776,141

Development Charges         

57,879

 

9,222,305

 

This statement is submitted for Council for its information in accordance with existing legislation. 

 

 

CONSULTATION

 

Sinking fund levies are an administrative matter and the public consultation process is not applicable.

 

 

FINANCIAL IMPLICATIONS

 

Debt charge budgets for the City provide for the payment of sinking fund levies.  Since the payment of these levies has been approved by by-law, future debt charge budgets must provide sufficient amounts to cover these levies.

 

 

DISPOSITION

 

Following consideration by Corporate Services and Economic Development Committee, this report will be forwarded to Council for its information.