HomeMy WebLinkAboutCST 24-12 Cal/ O Report To
Executive Committee
KERING Report Number: CST 24-12
Date: September 10, 2012
From: Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject: Repealing of Debenture By-laws
Recommendation:
1. That Report CST 24-12 of the Director, Corporate Services & Treasurer be
received; and,
2. That the Draft By-law attached be passed.
Executive Summary: This report seeks Council's approval to repeal Debenture
By-laws that are no longer required. This is basically a "housekeeping" exercise that
most municipalities need to undertake to remove now redundant by-laws.
As required for formal borrowing, these debenture by-laws were approved prior to the
commencement of the capital projects. However, these Debenture By-laws are no
longer required as explained below.
Financial Implications: There are no financial implications associated with this
report or the repeal of the by-laws.
Discussion: Capital projects requiring external borrowing (debentures) are
formalized by Council with the enactment of Debenture By-laws prior to the
commencement of the projects. With the debenture by-laws and other formal
documents in place, the City is ready whenever the Region of Durham decides to go to
the market to issue debentures.
However, as the projects progress, for various reasons the approved debt may no
longer be necessary. This is mainly due to actual amounts needed being lower than
originally approved; surplus annual debt charges being redirected to fund the new debt
financed projects; excess funds raised from previously completed projects being
redirected to the new debt approved projects and the use of internal loans.
Surplus annual debt charges occur when the amount provided in the Annual Budget is
higher than the actual required at the closing of the year; either due to the Region not
proceeding with the debenture issue or a time lag in the City's anticipated requirements.
Report CST 24-12 Date: September 10, 2012
Subject: Repealing of Debenture By-laws Page 2 1 4 8
This surplus is being redirected to the new capital projects and therefore avoiding debt
charges.
Sound fiscal and financial management is essential in order to minimize annual property
tax increases, and to reduce burden on taxpayers. Redirecting surplus annual debt
charges to new debt approved capital projects will avoid the tax levy impact for the new
projects in future years. It also avoids the interest cost.
Approvals to undertake the forgoing are provided to the Treasurer under the Municipal
Act and through the recommendations contained in the report to Council each year with
the annual budget. Other approvals can be found in the Council approved Financial
Control Policy. However, only Council can repeal by-laws, hence the need for this
report.
Attachments:
1. Draft By-law to Repeal Debenture By-laws No Longer Required
Prepared By: Approved / Endorsed By:
Caryn Kong, CGA Gillis A. Paterson, CMA
Senior Financial Analyst - Director, Corporate Services & Treasurer
Capital & Debt Management
•
Recommended for the consideration
of Pickering Cit Council
J I A 01, 2-012-
Tony Prevedel, P.Eng.
Chief Administrative Officer
PITT ACHMENT#_j__TO REPORT
1 4 ' The Corporation of the City of Pickering
By-law No.
Being a by-law to repeal debenture by-law nos. 6891/08, 6950/09,
6975/09, 7081/10, 7075/10, 7154/11, 7167/11, 7231/12, and
7232/12
Whereas the Corporation of the City of Pickering passed By-law Nos. 6891/08, 6950/09,
6975/09, 7081/10, 7075/10, 7154/11, 7167/11, 7231/12, and 7232/12 to provide for the
issuance of debentures by the Region of Durham for City projects; and
Whereas the debenture funding provided for under these by-laws is no longer required.
Now therefore the Council of the Corporation of the City of Pickering hereby enacts as
follows:
Repeal of Existing By-laws
1. By-laws 6891/08, 6950/09, 6975/09, 7081/10, 7075/10, 7154/11, 7167/11, 7231/12,
and 7232/12 are hereby repealed
Effective Date
2. This by-law shall come into effect on the day of its passing.
By-law passed this 18th day of September, 2012.
David Ryan, Mayor
Debbie Shields, City Clerk