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HomeMy WebLinkAboutTR-51-85 Report #2 CORPORATION OF THE TOWN OF NEWCASTLE q 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 File REPORT TO THE SPECIAL COUNCIL MEETING HELD AUGUST 23 1985 TR-.51-85 SUBJECT: REQUEST FOR DEBENTURE ISSUE ON BEHALF OF NEWCASTLE HYDRO ELECTRIC COMMISSION RECOMMENDATIONS: It is respectfully recommended: 1 . That Council receive Treasurer's report TR-85-51 ; 2. That the following resolution be approved: WHEREAS Ontario Municipal Board Approval #E850085 has been received for the issuance of a Debenture for the construction of a new centre of operation for the Newcastle Hydro Electric Commission: THEREFORE be it resolved that the Town of Newcastle request the Region of Durham to issue $300,000.00 in Debentures for a Ten ( 10) year term on behalf of the Newcastle Hydro Electric Commission; and That the funds for repayment of said Debentures be provided from utility rates of the Newcastle Hydro Electric Commission; 3. That the Region of Durham be provided with certified copies of the Town of Newcastle's resolution and the Newcastle Hydro Electric Commission's resolution; and 4. That the Region of Durham be requested to proceed with the issue at the earliest opportunity. BACKGROUND AND COMMENT: Since all matters are now in place and the construction of a new centre of operation for the Newcastle Hydro Electric Commission is proceeding TR- 51-85 2. the formal request for the issuance of debentures must be made to the Region of Durham. The Town has received the request from the Newcastle Hydro Electric Commission (attached). Respectfully submitted, 4 b KAC:nof KatIA., Campbell , B. Comm. Tre i Newcastle Hydro Electric Commission 19 King Street West Bowmanville,Ontario L1 C 1 R2 H.Partner,Chairman R.L.Stevens,Vice-Chairman W.M.Morrison,Member M.J.Watson-Manager I.A.Hamilton,Member Telephone(416)623-4451-2 G.B.Rickard,Mayor or 987-4073 July 31, 1985 Corporation of the Town of Newcastle, 40 Temperance Street, BOWMANVILLE, Ontario. L 1C 3A6 Attn: Mrs. Katherine Campbell, C.A. , B. Comm. , Treasurer Dear Katherine: As a follow up to our conversation relating to the Resolution from this Commission dealing with the issuance of the $300,000.00 Debenture, we have attached herewith, a certified copy of the Resolution duly executed and because the contract has been awarded for the construction of the building, we would appreciate whatever action deemed necessary to get this aspect of the funding underway. Yours very truly, I MJW/mjh M. J. Watson, Manager, NHEC. 1985 MOVED BY: SECONDED BY: Whereas , Ontario Municipal Board Approval #E850085 has been received for the issuance of a Debenture for the construction of a new centre of operation for the Newcastle Hydro Electric Commission. Therefore be it resolved that, the Town of Newcastle request the Region of Durham to issue $300,000.00 in Debentures for a 10 year term on behalf of the Newcastle Hydro Electric Commission. And that, the funds for repayment of said Debentures be provided from utility rates. Chairman I certify this to be a true Resolution, duly enacted and recorded in the Minutes of said Commission at a General Meeting held July 30, 1985. i Signed: M ager/Secretary/Treasurer i Signed: � 2�y Man� r/Secretary Treasurer Q CORPORATION OF THE TOWN OF NEWCASTLE TREASURY DEPARTMENT K. CAMPBELL, C.A.,TREASURER 40 TEMPERANCE STREET TEL.(416) 623-3379 BOWMANVILLE, ONTARIO L 1 C 3A6 Mr. M.J . Watson, Manager July 24, 1985 Newcastle Hydro Electric Commission 19 King Street West BOWMANVILLE, Ontario L1C 1R2 Dear Mr. Watson: Re: Issuance of Debentures The Commission presently has two debenture issues which have received Ontario Municipal Board approval being E-850085 in the amount of $300,000 and E-830107 in the amount of $40,000. When the Commission wishes these debentures to be issued the following steps must be taken. ( a) The Town requires a certified copy of the Commission minutes requesting that the debentures be issued, The resolution should indicate the amount to be debentured and the term. For your information, the Regional Staff have indicated that placements for terms exceeding 10 years are not selling well or quickly in the marketplace, at this time. (b) Subsequent to the receipt of a certified copy of the Commission' s resolution, Town Council will be required to pass a similiar resolution authorizing the issuing of the debenture on behalf of the Newcastle Hydro Electric Commission. Certified copies of both resolutions will be forwarded to the Region. (c) The matter will be dealt with first by the Regional Finance Committee and then be referred to Regional Council for approval e ( d) Once approved, the mechanism for the placement to be made will be put in process at the Region. see ./2 i Newcastle Hydro Electric Commission Page Two July 24, 1985 Staff anticipate that there may be a special meeting of Council on Friday, August 23rd 1985 to deal with tender openings, etc. This matter of the debenture issues could be brought forward at that time, if you wish. Based on that timing, the funds from the issue could be in the Commission' s hands in late October or early November. This letter simply is to formally appraise you of the process to be followed and the approximate timing of events. If you wish further clarification, please contact my office. Yours truly Kathryn Campbell , C.A. , B.Comm. , Treasur Encl : *gf i i SAMPLE RESOLUTION Moved: Seconded: WHEREAS, Ontario Municipal Board approvals E-850085 and E830107 have been received for the issuance of debentures for the purchase of land and construction of an Operation sCentre for the Newcastle Hydro Electric Commission, THEREFORE BE IT RESOLVED THAT, the Town of Newcastle request the Region of Durham to issue $ - - .00 in debentures for a year term on behalf of the Newcastle Hydro Electric Commission, AND THAT, the funds for the repayment of such debentures be provided from the utility rates,