HomeMy WebLinkAboutTR-16-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT #2
REPORT
Meeting: Fife# �`l r17
COUNCIL
Date: Res. # L1 ��I'c ,6
March 11, 1996 fay-Law#
Report#: Fife#:
Subject:
TR-16-96
BRIDGE FINANCING - CLARINGTON OLDER ADULTS CENTRE
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report TR-16-96 be received;
2. THAT one million dollars from the Impact/Escrow Reserve Fund be set aside in a
Reserve Fund to be called "Clarington Older Adults Centre Reserve Fund" and
retained as the principal amount;
3. THAT interest earned on an annual basis accrue to the Clarington Older Adults
Centre Reserve Fund;
4. THAT interest earned in the Fund may be requested, and if approved by Council
through the annual budget process is to be used for the sole purpose of helping to
offset operating costs associated with the Clarington Older Adults Centre on an
interim basis;
5. THAT on an annual basis,,in conjunction with budget deliberations, the operating
viability of the Older Adults Centre be reviewed and when deemed to be self-
sufficient, or after a five (5) year period (2001), whichever is earlier, the principal
value of $1 million be transferred back to the Impact/Escrow Fund with any funds
uncommitted at that date;
6. THAT the Clarington Older Adults committee be informed of Council's decision;
and
7. THAT the attached By-Law to establish the reserve fund be approved.
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THIS IS PRIMED C`!RECY-D PAPER
TR-16-96 Page - 2 -
BACKGROUND:
1.0 At the General Purpose and Administration Committee meeting of March 4, 1996, the
following resolution was passed:
"THAT the report of the Clarington Older Adults Committee be received; FORTHWITH;
THAT staff be directed to identify a source of funding which would provide bridge
financing to help offset the operating expenditures related to the Clarington Older Adults
Centre, and report back; and
THAT the Clarington Older Adults Committee, and delegations appearing at today's
meeting be advised of Council's decision."
2.0 The Impact/Escrow Account currently has a balance of approximately $4.5 Million.
These funds are not committed to any capital projects at this time.
3.0 The potential interest earning capacity of the $1 million, with the benefit of the greater
consolidated Reserve Funds balance should be approximately $50,000 annually. This is
based on the current prevailing interest rate of approximately 5.0%.
4.0 As Members of Council commented on March 4, it is anticipated that the Older Adults
will raise the funds they require to successfully operate the proposed centre.
Consequently, the above is intended to be available, through the grant process as a
safeguard should their projected revenue not materialize and they are not able to cover
the shortfall from other avenues. As such it is recommended as a bridge financing
measure for the first few years until they have had sufficient opportunity to seek out
reliable funding sources and revenue generating opportunities to become self-sufficient.
5.0 At the end of five years, 2001, or sooner if they are able to operate without a deficit for
more than one year, it is recommended that the principal value and any uncommitted
funds be transferred back to the Impact/ Escrow Reserve Fund.
Respectfully submitted, Reviewed by,
arie 'Marano,-H---.BSc., A.M.C.T., W.H. Stockwell,
Treasurer. Chief Administrative Officer.
MM/hj l/pp
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