COMMITTEE RECOMMENDATION

That Council receive this report for information.

Recommandation DU Comité

Que le Conseil prennent connaissance du présent rapport.

Documentation

1. City Treasurer’s report dated 11 January 2010 (ACS2010-CMR-FIN-0005).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organistionnels et du dévelopment économique

and Council / et au Conseil

11 January 2010 / le 11 janvier 2010

Submitted by/Soumis par : Marian Simulik, City Treasurer

Contact Person/Personne ressource : Mona Monkman, Deputy City Treasurer - Corporate Finance / Trésorière municipale adjointe – Finances municipales

Financial Services / Services financiers

(613) 580-2424 ext. 41723, Mona.Monkman@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2010-CMR-FIN-0005

SUBJECT:	SINKING FUND LEVIES

OBJET :	taxes aux fins du fONDS D'AMORTISSEMENT

REPORT RECOMMENDATION

That 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, 2001 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

There are no Sinking fund debenture issues which mature in 2010 and there are no new reductions to existing levies, therefore the levies for 2010 are unchanged from 2009.

The following is a statement of the sinking fund requirements for 2010:

Debenture By-law No.	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

This is an administrative matter that does not require public consultation.

LEGAL/RISK MANAGEMENT IMPLICATIONS

There are no legal/risk management impediments to receiving this report. Subsection 424(4) of the Municipal Act, 2001 requires that, in any year, the treasurer prepare a statement of the amount required to be raised for a sinking fund or retirement fund before the budget for the year is adopted.

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.

RURAL IMPLICATIONS

There are no rural implications.

SUPPORTING DOCUMENTATION

Not applicable.

DISPOSITION

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