HomeMy WebLinkAboutTR-66-85 REPORT #3
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CORPORATION OF THE TOWN OF NEWCAS TLE
TREASURY DEPARTMENT K. CAMPBELL, C.A.,TREASURER
40 TEMPERANCE STREET TEL.(416) 623-3379
BOWMANVILLE, ONTARIO
L1C 3A6
REPORT TO THE COUNCIL MEETING OF
OCTOBER 15, 1985
REPORT NO. : TR-66-85
SUBJECT: NEWCASTLE HYDRO-ELECTRIC COMMISSION
REQUEST FOR BRIDGE FINANCING
RECOMMENDATION:
THAT—this—report be received; and
THAT the request from the Newcastle Hydro-Electric Commission to
provide bridge financing for the operations centre construction
project to a maximum of $300,000 be approved; and
THAT Newcastle Hydro-Electric Commission be charged interest on
any funds advanced at the same interest rate which the Corporation
receives on the investments outstanding at that time; and
THAT the Newcastle Hydro-Electric Commission be required to repay the
advanced funds to the Town as soon as funds are available from their
own sources.
BACKGROUND AND COMMENT
The Hydro-Electric Commission has asked the Town to provide the backup
financing for their construction project, if necessary. The Town has
received the Ontario Municipal Board approval for the borrowing of
$300,000 and therefore there is no difficulty in providing the interim
financing.
Staff have contacted the Region to ascertain the timing of receipt of the
debenture proceeds. At this time, the Region indicates that the funds
should be available by mid —November. This timing will probably negate
the Commision's need for interim financing.
REPORT NO: TR-66-85 Page 2
If funding must be advanced to the Commission it seems reasonable to
charge the Commission interest at the rate at which we would earn
investment income. (approximately 82 - 9%) The Commission is a
separate financial entity and therefore should be responsible for
any interest cost.
Respectfully submitted,
Kathhr Y rN A. Cam p bell C.A. B.Comm.
Treasurer
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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
October 4 , 1995,
Corporation of the Town of Newcastle , '; ,' �+
40 Temperance Street �� �
Bowmanville , Ontario .
L1C 3A6
Attention Mr . David Oakes , B .A. , A.M.C .T . , 4 A"WAMr
Clerk . � .. .. -.... �. � .
Dear Sir :
As instructed by our Commission , I write making applica-
tion to Council to approve bridge financing of funds , should
it become necessary to meet payment obligations in the con-
struction of our new centre of operation , presently under con-
struction .
As this aspect is most important at this time , we seek
your assistance in pursuing this matter .
Yours very -truly ,
M.J . Watson ,
Manager ,
Newcastle Hydro-Electric Commission .
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MJW mw 'C��a
c .c . - Members of Commission.
- Mrs . Jean Pattrick , ..-_.... _.. ,.....K
Office Supervisor .
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