5.       sinking fund levies 2007

FONDS D’AMORTISSEMENT 2007

 

 

 

Committee Recommendation

 

That Council receive this report for information.

 

           

Recommandation du comité

 

Que le Conseil municipal prenne connaissance du présent rapport.

 

 

 

 

 

Documentation

 

1.   Chief Corporate Services Officer's report dated 22 January 2007 (ACS2007-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

 

22 January 2007 / le 22 janvier 2007

 

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer/

Chef des Services généraux

 

Contact Person/Personne ressource : Marian Simulik, Director, Financial Services and City Treasurer/Directrice des services financiers et trésorière municipale

Financial Services/Services financiers

(613) 580-2424 x 14159, Marian.Simulik@ottawa.ca

 

City Wide

Ref N°: ACS2007-CRS-FIN-0004

 

 

SUBJECT:

SINKING FUND LEVIES 2007

 

 

OBJET :

FONDS D’AMORTISSEMENT 2007

 

 

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 municipal 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 (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 2007.

 

Debenture By-law

Sinking Fund Amounts  $

126-1989

     250,000

 33-1991

  2,000,000

 81-1992

  3,975,229

 68-1998

  1,036,501

 72-1999

  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  $

City Wide

8,228,164

Waste Water

2,244,141

 

10,472,305

 

 

CONSULTATION

 

The amounts to be levied for sinking funds in 2007 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.

 

 

DISPOSITION

 

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