Committee Recommendation

That Council receive this report for information.

RECOMMENDATION DU COMITÉ

Que le Conseil prenne connaissance du présent rapport.

DOCUMENTATION

1. City Treasurer’s report dated 9 January (ACS2008-CMR-FIN-0002).

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

9 January 2009 / le 9 janvier 2009

Submitted by/Soumis par : Marian Simulik,
City Treasurer, Trésorière municipale

Contact Person/Personne ressource : Gerry Mahoney,
Manager, Treasury / gestionnaire, Trésorerie

Financial Services/Services financiers

(613) 580-2424 x 21310, gerry.mahoney@ottawa.ca

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0002

SUBJECT:	SINKING FUND LEVIES

OBJET :	taxes aux fins du fONDS D'AMORTISSEMENT

REPORT RECOMMENDATION

That the Corporate Services and Economic Development Committee and Council receive this report for information.

RECOMMANDATION DU RAPPORT

Que le Comité des services organisationnels et du développement économique et le Conseil prennent connaissance du présent rapport.

BACKGROUND

When the City issues sinking fund debentures, annual contributions are made to the Sinking Fund, which together with interest earnings derived from the investment of these funds, accumulate to an amount that will be sufficient to pay the debentures on maturity.

In accordance with subsection 424(4) of the Municipal Act, the City Treasurer is required to prepare and submit to Council in each year, a statement showing the sums that Council will be required, by by-law, to raise for sinking funds in that year. A report on the sinking fund earnings for the year, including the balance of each sinking fund account, is provided to Council annually once the accounts have been closed and the financial statements for the sinking fund have been prepared and the audit has been completed.

ANALYSIS

The following is a statement of the sinking fund requirements for 2009:

Debenture By-law	Sinking Fund Amounts $
33-1991	1,000,000
81-1992	3,975,229
68-1998	1,036,501
72-1999	3,210,575
	9,222,305

In accordance with provisions of the debenture by-laws, the sinking fund amounts will be levied as follows:

Purposes	Sinking Fund Amounts $
Tax Supported	7,388,285
Rate Supported	1,776,141
Development Charges	57,879
	9,222,305

This statement is submitted for Council for its information in accordance with existing legislation.

CONSULTATION

Sinking fund levies are an administrative matter and the public consultation process is not applicable.

FINANCIAL IMPLICATIONS

Debt charge budgets for the City provide for the payment of sinking fund levies. Since the payment of these levies has been approved by by-law, future debt charge budgets must provide sufficient amounts to cover these levies.

DISPOSITION

Following consideration by Corporate Services and Economic Development Committee, this report will be forwarded to Council for its information.