|
5. Financing Lease agreemeNTs
2010 CONVENTIONS DE CRÉDIT-BAIL 2010 |
That Council receive this report on outstanding Lease Financing Agreements as at December 31 2010 as required by Ontario Regulation 653/05 amended to Regulation 291/09 and the City’s Debt and Financing Policy.
Recommandation du ComitÉ
Que le Conseil prenne connaissance du présent rapport sur les
conventions de crédit-bail en cours en date du 31 décembre 2010 comme
l’exige le Règlement de l’Ontario 653/05 modifié pour devenir le Règlement
291/09 et la Politique relative au financement et à la dette de la Ville.
DOCUMENTATION
1. City Treasurer’s report dated 27 May
2011 (ACS2011-CMR-FIN-0030).
Finance and Economic Development Committee
Comité des finances et du développement économique
and Council / et au Conseil
27 May 2011 / le 27 mai 2011
Submitted by/Soumis par : Marian Simulik, City Treasurer/Trésorière
municipale
Contact
Person/Personne ressource : Mona Monkman, Deputy City Treasurer - Corporate
Finance/Trésorière municipale adjointe – Finances municipales
Finance
Department/Service des finances
613-580-2424
ext./poste 41723, Mona.Monkman@ottawa.ca
|
Ref N°: ACS2011-CMR-FIN-0030 |
SUBJECT:
|
|
|
|
|
OBJET :
|
That Finance and Economic Development Committee and Council receive this report on outstanding Lease Financing Agreements as at December 31 2010 as required by Ontario Regulation 653/05 amended to Regulation 291/09 and the City’s Debt and Financing Policy.
Que le Comité des
finances et du développement économique et le Conseil prennent connaissance du
présent rapport sur les conventions de crédit-bail en cours en date du
31 décembre 2010 comme l’exige le Règlement de l’Ontario 653/05 modifié pour
devenir le Règlement 291/09 et la Politique relative au financement et à la
dette de la Ville.
In accordance with Ontario Regulation 653/05 amended to Regulation 291/09, Council adopted a Policy on Debt and Financing on 11 April 2007 (ACS2007-CRS-FIN-0007). The City Treasurer is required to provide a report annually to Council on any outstanding lease financing arrangements including the following information:
× estimates of the proportion of the financing leases to the City’s total long-term debt and to provide a description of any changes in that proportion to the previous year’s report, if any; and
× a statement that in his or her opinion all financing leases were made in accordance with the lease policy and goals as approved by Council.
Consequently this report is submitted on accordance with Council’s Policy on Debt and Financing.
The following summarizes the significant or material financing lease agreements outstanding at year-end 2010:
Financing Leases
Outstanding
31 December 2010
($000’s)
|
Project |
Amount |
Term |
Rate of Interest |
|
Office Building |
64,208 |
24 years starting July 2003 |
6.0% |
|
Paramedic
Services Building |
21,864 |
30 years starting December 2005 |
5.79% |
|
Shenkman Arts
Centre |
37,390 |
30 years starting January 2009 |
4.99% |
|
Total |
123,462 |
|
|
The total principal amount outstanding under Financing Lease Agreements is equivalent to 14.8% of the City’s total net long-term debt including the Public Private Partnership (PPP) debt as at 31 December 2010. For comparison purposes, as at 31 December 2009 the total principal amount outstanding under Financing Lease Agreements is equivalent to 21% of the total net long-term debt including PPP debt. The change in this ratio results from the increase in total long-term debt from $599,042 at December 31, 2009 to $835,160 at December 31, 2010 as an outcome of the City issuing $297,000 new debt in 2010.
The Policy on Financing and Debt provides for the City Treasurer to approve non-material leases which are defined as a financing lease in which the annual payments will be less than $500,000, the term of the lease does not exceed 10 years and as a class does not exceed 1% of the City’s net tax levy. No non-material leases were approved by the City Treasurer during 2010.
There were no new lease financing arrangements approved by Council during 2010.
There are no rural implications as a result of this report.
The public consultation process is not applicable.
N/A
There are no legal/risk management impediments to receiving this report.
N/A
N/A
It is the opinion of the City Treasurer that the Lease Financing Agreements referred to in this report comply with the lease policy and goals as outlined in the Policy on Debt and Financing as adopted by Council. Lease payments are budgeted in the annual Operating Budget.
Following consideration by Finance and Economic Development Committee, this report will be forwarded to Council for its consideration.