HomeMy WebLinkAboutFND-013-14 Cla rington REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: May 5, 2014 Resolution#: �� By-law#:
Report#: FND-013-14 File#:
Subject: BOWMANVILLE INDOOR SOCCER DEBENTURE
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-013-14 be received; and
2. THAT the Director of Finance/Treasurer be authorized to make application to the
Region of Durham for the debenture of the Bowmanville Indoor Soccer balloon
payment in the amount of $1,426,000 over a 10 year period.
1
Submitted by: �, - � s'V� , Reviewed by:
ilk Nancy Taylor, BBA,CPA,CA rranklin Wu,
Director of Finance/Treasurer Chief Administrative Officer
NT/LG/hj I
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: FND-013-14 PAGE 2
1.0 BACKGROUND
1.1 On May 10, 2004, Clarington Council approved the contract award to construct
the Bowmanville Indoor Soccer facility and authorized the Director of
Finance/Treasurer to make debenture application in the amount of $3,350,000
plus debenture costs to the Region of Durham for the financing.
1.2 In July 2004, the Region of Durham forwarded the debenture cheque and a
certified copy of a 10 year installment debenture in the amount of $3,350,000
with $1,426,000 of which may be raised by the issue of refinancing debenture or
paying off the final year of maturity in 2014.
1.3 The Bowmanville Indoor Soccer facility is a development charges related project
with 90% of costs funded from the Indoor Recreation Development Charges
Reserve Fund.
2.0 COMMENTS
2.1 The Region of Durham will be issuing debentures this spring for its own purposes
and its area municipalities, including Clarington.
2.2 The Bowmanville Indoor Soccer balloon payment is due July 15, 2014, therefore,
Clarington needs to be part of the Region of Durham's spring debenture issue.
2.3 The balloon payment is being refinanced to ease the annual debt servicing costs
that are funded by the Indoor Recreation Development Charges Reserve Fund.
2.4 The new debenture term for Clarington will be 10 years and it's anticipated that
the interest rates will be between 3% to 5%.
2.5 This new debenture for Bowmanville Indoor Soccer facility in the amount of
$1,426,000 is to be financed over the next 10 years, with the debenture
repayments to be funded from the Indoor Recreation Development Charges
Reserve Fund to the extent allowable.
3.0 CONCLUSION
3.1 It is recommended that the Director of Finance/Treasurer be authorized to make
debenture application this spring to the Region of Durham for the Bowmanville
Indoor Soccer balloon payment in the amount of $1,426,000 over the next 10
years.
CONCURRENCE — not applicable
REPORT NO.: FND-013-14 PAGE 3
CONFORMITY WITH STRATEGIC PLAN
The recommendations contained in this report conform to the general intent of the
following priorities of the Strategic Plan:
Promoting economic development
x Maintaining financial stability
Connecting Clarington
Promoting green initiatives
Investing in infrastructure
Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Nancy Taylor, Director of Finance/Treasurer
List of Interested Parties to be notified of Council's Decision: None