HomeMy WebLinkAboutTR-30-89 REPORT #2
TOWN OF NEWCASTLE
REPORT File #24/0
Res. #
By-Law #
MEErINCCOUNCIL MEETING
DATE: April 10, 1989
REPORT #p,-3o-s9 FILE #:
SMECT:
Interim Financing Requirements
Bowmanville Recreation Complex
RECOMMENDATIONS:
It is respectfully recommended to Council the following:
1. That report TR-30-89 be received for information; and
2. That the cost of watermain servicing to the new arena
facility in the amount of $530,053.34 be interim .financed
by funds from the Public Works Lot Levy Account #x.1110-157-X;
and
3. That upon receipt of the 1989 contribution from the Skate
188 Campaign Fundraisers and the related proceeds from the sale of
the old arena in accordance with the original financing scenario
for the Bowmanville Recreational Complex, that the Public Works
Lot Levy Fund be reimbursed in full.
BACKGROUND & COMMENTS:
1. The Region of Durham invoice for servicing the Bowmanville Arena
Facility has recently been received and is awaiting payment. This
item was included in the approved budgeted cost of the project.
The original financing scenario included the entire amount pledged
by Skate '88, a Wintario grant, a portion of the proceeds from the
sale of the old Arena as well as Debenture proceeds to fund this
project.
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TR-30-89 Page 2
2. The project is, to all intents and purposes, complete and the entire
cost of the project has been financed, to this point, by debenture
proceeds, Wintario grant, interest earned and a portion of the 1988
Fundraisers contributions.
The Town has been able to front-end the project cost primarily
because of the maximum debenture proceeds requested and received.
Section 170 S(3) p 2 of the Municipal Act however, provides that
when the amount realized from the debenture is in excess of that
required for the purposes of the project, the balance shall be
applied on the annual payments of principle and interest.
The initial payment of debenture interest was made in November 1988
and has been covered by a transfer from the Arena Reserve Fund in
accordance with this section of the Act for the 1988 year end.
3. The Town is awaiting proceeds from the sale of the old arena as well
as the 1989 contributions from the Skate 188 Fundraisers which should
include all funds currently in their possession. Once received the
Public Works Lot Levy Reserve Fund can be replenished.
Respectfully submitted, Recommended for presentation
to the Committee
M rie A. Marano, H.BSc. Lawrence E seff,
Treasurer. Chief Admi ifttrative officer.
',T Aseph P. Caruana,
Director of Community Services
MAM/pp,