2.       SINKING FUND LEVIES

 

Taxes aux fins du fONDS D'AMORTISSEMENT

 

 

Committee Recommendation

 

That Council receive this report for information.

 

 

Recommandation du comité

 

Que le Conseil municipal prenne connaissance du présent rapport.

 

 

 

 

 

Documentation

 

1.   City Treasurer's report dated 28 January 2008 (ACS2008-CMR-FIN-0002).

 

 

 

 

 


Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

28 January 2008 / le 28 janvier 2008

 

Submitted by/Soumis par : Marian Simulik,
City Treasurer
/ Tresorière municipal

 

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

Financial Services/Services financiers

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

 

City Wide / À l'échelle de la Ville

Ref N°: ACS2008-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 (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 2008:

 

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 to Council for its information in accordance with existing legislation. 

 

 

CONSULTATION

 

The amounts to be levied for sinking funds in 2008 were specified under the various debenture by-laws mentioned above which were approved by Council at the time the various debentures were issued. 

 

Public consultation would normally take place at the time that 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.

 

 

 

 

SUPPORTING DOCUMENTATION

 

Not applicable.

 

 

DISPOSITION

 

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