HomeMy WebLinkAboutCS 25/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: September 19, 2001
REPORT NUMBER: CS 25-01
SUBJECT: The New Municipal Act
RECOMMENDATION:
It is recommended that Report CS 25-01 of the Director, Corporate Services & Treasurer be
received for information.
ORIGIN:
Director, Corporate Services & Treasurer
AUTHORITY:
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The Ministry of Municipal Affairs and Housing
FINANCIAL lMPLICATIONS:
Not applicable.
EXECUTIVE SUMMARY:
As you are probably aware the Ministry of Municipal Affairs and Housing (MAH.), and other
Provincial Government Ministries, are in the process of issuing a new, revised, draft Municipal
Act this fall. The Director, Corporate Services & Treasurer has been asked by staff of the
M.A.H. to participate in that process. The following report is a summary of activities to date in
this regard.
BACKGROUND:
This report is to advise the Committee and Council of the involvement of the City Treasurer in
reviewing certain Sections of the Municipal Act in preparation for the imminent release of a new
draft. The Treasurer was requested by staff of the Ministry of Municipal Affairs and Housing to
participate with a group of lawyers, bankers, investment bankers, staff of the Ontario Finance
Authority, Municipal Affairs and others in reviewing certain Sections of the Act in regards to
investments, debt, zero coupon bonds, and other financial instruments and techniques. I was the
only Treasurer asked to participate.
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Report to Council CS 25-0 I
Date: September 19, 2001
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Subject: The New Municipal Act
Page 2
Specifically, over the last few months discussion papers were proposed for eventual submission
to Cabinet on the following topics:
1. Eligible Investments
2. Innovative Financing Tools
a) Hedging against rising interest rates
b) Revenue Bonds
c) Section 210.1 and Capital Leases
d) Options for addressing cash-flow timing differences on municipal
infrastructure projects
3. Differentiated Powers
The discussions were successful and the changes, if approved, will provide for more latitude for
municipalities in specific instances in undertaking investments and the issuance of debt. The
changes should assist in making these activities more cost effective and/or increase investment
income. It is currently anticipated that work on these and other Sections of the New Municipal
Act will continue for some time.
ATTACHMENTS:
Not applicable.
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Prepared I Approved I Endorsed By:
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---Gillis A. Paterson
Director, Corporate Services & Treasurer
GAP:vw
Recommended for the consideration of Pickering
City Council I(
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