HomeMy WebLinkAboutFND-007-06
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
TUESDAY MAY 23,2006
Report #: FND-007-06
File #:
Resolution #: ('"\Dn '/)f{{-D ~
By-law #:
Subject:
ORONO CEMETERY BOARD LOAN
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. That Report FND-007-06 be received;
2. That an interest free loan in the approximate amount of $15,200 be
provided to the Orono Cemetery Board to repay their outstanding loan to
the Canadian Imperial Bank of Commerce for the purchase of the
columbarium in October, 2004; and
3. That the interest free loan be funded from the Cemeteries capital reserve
fund and be repaid over four (4) years at $3,800 due on October 31,2006
and annually thereafter.
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Submitted by: ff~:l~
Nancy T lor, B. ,A., .A.,
Director of Finance.
Reviewed bQ~-'- ~
Franklin Wu,
Chief Administrative Officer,
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REPORT NO.: FND-007-06
PAGE 2
BACKGROUND AND RECOMMENDATIONS:
The Orono Cemetery Company became a Board of Council of the Municipality of
Clarington through report CLD-1 0-05 at the March 7, 2005 General Purpose and
Administration Committee Meeting.
There were several benefits to this change that were identified at the time of the report
and the parties involved are quite satisfied with the arrangements,
During the review of the 2005 books and records, it came to our attention that there was
a pre-existing loan from the Canadian Imperial Bank of Commerce for the purchase of
the Columbarium for the Cemetery in October of 2004. As a rule, a board of council
cannot incur debt. As a result, it is necessary to either repay the debt to clear it from the
Board's records or have the Municipality of Clarington assume the debt.
Due to the small dollar amount involved, it is recommended that the debt be repaid by
the Municipality so that the Board is not incurring interest expense, The amount can be
funded from the Cemeteries Capital Reserve Fund. It is recommended that the Orono
Cemetery Board maintain the original principal repayment terms whereby the balance of
the loan would be repaid to the municipality back into the Cemeteries Capital Reserve
Fund over the next four (4) years on an interest free basis.
Attachments:
Attachment "An - Request from Orono Cemetery Company
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
ATTACHMENT "A"
ORONO CEMETERY COMPANY
5875 Main Street
Orono, Ontario
LOB IMO
TO: Municipality of Clarington Council
DA TE: April 6, 2006
A TT: Nancy Taylor
On behalf of the Board of Directors of the Orono Cemetery Company we
would to like request a loan to cover the outstanding loan of $ 15,200.00 with the
Canadian Imperial Bank of Commerce. This loan was for the purchase of the
Columbarium for the Orono Cemetery in October of 2004.
"n) 2 ]/~~
Marjorie Best, Chairperson
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Betty Lycett
Viola Vanderveen
Secretary-Treasurers