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3. 2006
SINKING FUND LEVIES
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COMMITTEE RECOMMENDATION
That Council receive this report for information.
RECOMMENDATION DU COMITÉ
Que le Conseil prenne connaissance du présent rapport.
Documentation
1. Chief Corporate Services
Officer’s report dated 06 January 2006
(ACS2006-CRS-FIN-0004).
Report to/Rapport au:
Corporate Services and Economic Development Committee/
Comité des services
organisationnels et du développement économique
and Council/et au Conseil
06 January 2006/ 06 janvier
2006
Submitted by/Soumis par: Greg Geddes, Chief Corporate Services Officer/Chef des Services generux Corporate Services Department/Services généraux
Contact/Personne
ressource: Lloyd Russell, Director,
Financial Services and City Treasurer/ Directeur des Services financiers et
Trésorier municipal
580-2424, Ext./poste 21312,
Lloyd.Russell@ottawa.ca
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SUBJECT: |
2006
SINKING FUND LEVIES |
|
OBJET: |
FONDS
D’AMORTISSEMENT 2006 |
REPORT RECOMMENDATION
That Corporate Services and Economic Development Committee and Council receive this report for information.
Que le Comité des
services organisationnels et du développement économique et le Conseil prenne
connaissance du présent rapport.
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 (4) of section 424 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.
ANALYSIS
The following is a statement of the sinking fund requirements for 2006. It does not include by-law 102-1986 for which annual levies have been discontinued as approved by Council. In addition the annual levy in respect of by-law 126-1989 has been reduced from $1,512,129 to $250,000 and the annual levy in respect of by-law 32-1991 has been reduced from $3,024,258 to $2,000,000 as approved by Council on 11 May 2005.
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Debenture By-Laws |
Sinking Fund Amounts
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|
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$ |
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126 of
1989 |
250,000 |
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33 of 1991 |
2,000,000 |
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81 of 1992 |
3,975,229 |
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68 of 1998 |
1,036,501 |
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72 of 1999 |
3,210,575 |
|
|
$10,472,305 |
In accordance with provisions of the debenture by-laws, the sinking fund amounts will be levied as follows:
|
City Purposes |
Sinking Fund Amounts
|
|
|
$ |
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City
Wide |
8,228,164 |
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Waste
Water |
2,244,141 |
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|
$10,472,305 |
The amounts to be levied for sinking funds in 2006 were specified under the various debenture by-laws mentioned above which were approved by the applicable Council at the time the various debentures were issued.
Public consultation would normally take place at the time the capital works which were financed by the various debenture issues, were initiated and approved. No public consultation is required at this time.
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 contain sufficient amounts to cover these levies.
CONCLUSION
This statement is submitted for Council for its information in accordance with existing legislation.
Following consideration by the Corporate Services and Economic Development Committee, this report will be forwarded to Council for its consideration.