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Home My WebLink AboutTR-28-87 2 REPORT #7 TOWN OF NEWCASTLE «c' REPORT °^_. " ., . File # �p Res.� By-Law # MEETING: COUNCIL MEETING DATE: April 13, 1987 REPORT #: T8-38-87 FILE #: SUB,EC^ ^ INTERIM FINANCING - CAPITAL PROJECTS RECOMMENDATIONS: It is respectfully recommended to council the following: I. That report TB-28-87 be received; and 2. That the proposed financing for the Arena and the Administrative Centre as shown on schedule nA/` attached hereto be approved in principle; and 3. That the attached borrowing by-laws to provide interim financing be approved. - BACKGROUND The above mentioned projects were included in the 1987 Current and Capital Budgets which were approved by Council on April 3, 1987. Specific O.M.B. approval has been obtained for these projects and there is a need to provide for interim financing pending the receipt of monies from the issuance of debentures or from any other source as authorized under sections 189 and 190 of the municipal. Act. TR-28-87 Page 2 Staff strongly recommend that the financial institutions referred to in the attached by-laws be authorized to provide interim financing as required to meet the short term financial needs of the Municipality, since this would provide the Municipality with the flexibility to obtain the best interest rates prevailing from time to time in the market place. At no time would the total amount of funds borrowed for both projects exceed a total of ten ( 10) million dollars. Respectfully submitted, Recommended for presentation to the Committee f , R. Blanchard Lawrence Kotseff Treasurer Chief d inistrative Officer JRB/pp ATTACHMENTS: SCHEDULE "A" Financing - Administrative Centre Source of Funds Reserve Funds Dec. 1986 1987 1988 Available Administrative Improvements $ 606,1501 $ $ $ Ontario Hydro 156,000 Levy 200,000 250,000 Inventory Reserve 161,680 Working Capital Reserve 150,0001 Total Admin. Improvement $ 606,1501 $ 667,680 $ 2501,01010 $1,523,8301 Lot Levy - Civic Admin. $ 274,685 $ 2501,000 $ 125,O00 $ 649,685 Lot Levy - Comm. Service 75,293 75,292 156,585 Surplus 194,000 194,000 Debenture Proceeds 2,5010,01010 Total Proposed Funding $5,0124,1010 Estimated Cost $5,0124,100 Financing - Arena Arena $ 317,152 $ $ $ Wintario 512,500 - 829,652 Sale of Old Arena - - 175,000 175,000 Lot Levy - Community Serv. 434,300 Fund Raising 7501,O00 Working Capital Reserve 250,010101 Debenture Proceeds 2,636,0148 $5,075,0001 Estimated Project Cost $5,0175,010101 N.B. Above funding proposals may vary depending on development within the Town over the next three years. Committee will be advised of changes. t �# THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NO. 87-70 .Z i. }r. Being a by-law to enable the Corporation of the Town of Newastle to borrow money for capital purposes pending the issue and sale of debentures for the new Admin- istrative Centre and Arena Complex. .•'i,i s.'r'r a.G. A C WHEREAS the Corporation of the Town of Newcastle, (the Corporation)po ) to provide financing for the new AcLnini- �+i:. r.i strative Centre and Arena Complex, has requested the Regional Municipality of Durham to issue debentures to the amount of 5,500,000. AND WHERIM the issue of these debentures has been approved by the Ontario Municipal Board. AND WHEREAS the Corporation is authorized, under Section 190 of the Municipal Act, Revised Statutes of Ontario, Chapter 302, to borrow money pending the receipt of the financing of the debentures. ';•1::Yi' {; NOW THEREFORE the Corporation of the Town of Newcastle enacts as follows: The Mayor and the Treasurer are hereby authorizes on behalf of the Municipality to borrow from time to time by way of promissory note and/or Guaranteed Notes from the Bank of �'•%+,;!}.;}r{;� Nova Scotia, a sum or suns not exceeding in the aggregate of $10,000,000, at the rate of interest r. prevailing at the time of each advance. t'. %;;,>"•'.;{., And that, on receipt of the proceeds from the yj) ;`;"i•`. sale of debentures by the Region of Durham, or from any other source, the loan be repaid. By-Law read a first and second time this 13thday of April 1987. By-Law read a third time and finally passed this 13th day of April 1987. is }ni Mayor "'�'r:.•• Clerk A ..Y.. 1 , } h THE CORPORATION OF TIIE TOWN OF NEWCASTLE RRI Un M 3.; d'r BY-LAW No.81-71 -law to authorize the borrowing of$10,000,000 A By Whereas the Council of the Corporation Of the Town Of Newcastle (hereinafter called the "Municipality") deems it necessary to borrow the sum of$ 10,000,000-- to meet, until the taxes are collected, the current expenditures of the Municipality for the year 1987 And Whereas the total amount of the estimated revenues of the Municipality as set forth in the estimates adopted for the year 19 is $ t: And Whereas under Section 189 of the Municipal Act,the Municipality is empowered to borrow for current expenditures at any one time up to 70 per cent of the estimated revenues; And Whereas the total amount heretofore borrowed for the purposes mentioned in IDdda 01> subsection(I)of Section 189 of the Municipal Act which have not been repaid is$ Therefore the Council of the Town of Newcastle hereby enacts as follows: 1.The Head and the Treasurer are hereby authorized on behalf of the Municipality to borrow '1':j>(.r"••{'" from time to time by way of promissory note from CANADIAN IMPERIAL BANK OF COMMERCE (hereinafter called the "Bank"), a suns or sums not exceeding In the aggregate$ 10,000,000-- to meet until the taxes are collected the current expenditures of the Municipality for the year,includin the amounts required for the purposes mentioned to subsection(I)of Section 189 of the Mgunicipal Act, and to give on behalf of the Municipality to the Bank a promissory note or notes sealed with the Corporate Seal and signed byy the Head and Treasurer for the moneys so borrowed, with interest at such rate as may be agreed upon from time to time with the Bank. 2.All sums borrowed pursuant to lie authority of this By-law,as well as all other scans borrowed :. '•f f� •'r'' in this year and in revious ears from the Bank for an or all of the u ores mentioned in the said Section 1 9,shall,with interest thereon,be a charge upon the whole of the revenues of the Municipality for the current year and for all preceding years as and when such revenues are received. 3.The Treasurer is hereby authorized and directed to apply in payment of all sums borrowed as aforesaid,together with interest thereon,all of the moneys hereafter collected or received either on account or realized in respect of taxes levied for the current year and preceding years or from any other source which may lawfully be applied for such purpose. ',• 4.The Treasurer is hereby authorized to furnish to the Bank a statement showing the nature X.' and amount of the estimated revenues of the Municipality not yet collected and also showing the total of any amounts borrowed under Section 189 of the Municipal Act that have not been repaid. •''i","':"i'i; Passed this 13th day of April 1987 ME HEAD OF THE MUNICUALRY ;1 1EA1. CLERK I hereby certify that the foregoing is a true copy of By-law No. 87-71 ofthe TOWN of NEWCASTLE in the Province of Ontario, duly passed at a meeting of the Council of the said Municipality duly held, and that the said By-law is in full force and effect. i. Dated This 13th day of April 19 81 As Witness the Seal of y the of ILFRx f� , A f } 1 f.