2008-04-17_Agenda Packet--Dossier de l'ordre du jourCity of Saint John
Common Council Meeting
Thursday, April 17, 2008
Special Meeting
1. Call to Order -Prayer
8:00 a.m. 8th Floor Boardroom City Hall
1.1 2008 Debenture Issue
City of Saint John
Seance du Conseil communal
Le jeudi 17 avri12008
Reunion extraordinaire
1. Ouverture de la seance, suivie de la priere
8 h Salle de conference du 8e etage
1.1 L'emission d'obligations de 2008
The City of Saint John
OPEN SESSION
M & C 2008
April 10, 2008
His Worship Mayor Norm McFarlane
And Members of Common Council
Your Worship and Councillors:
SUBJECT: REQUEST FOR SPECIAL MEETING
FOR THE 2008 DEBENTURE ISSUE
BACKGROUND:
Notice of motion was given at the Common Council meeting of March 18, 2008
with the intention to propose adoption of a resolution authorizing borrowing of
$11,000,000 secured by debenture. The New Brunswick Municipal Finance
Board is planning a debenture issue on April 18, 2008 and this is the vehicle
which the City utilizes for debenture financing. It is therefore necessary to have
in place prior to April 18, 2008 Common Council authorization for the proposed
debenture issue. The City Solicitor advises that the governing legislation, Acts of
Assembly, 52 Victoria Chapter 27, Section 29 operates to fix April 17, 2008 as
the earliest possible date for such Council approval. It is important that the City
participate in the April 18th scheduled bond issue and consequently a Special
Meeting of Council called for that purpose is recommended.
RECOMMENDATION:
That Common Council convene a Special Meeting on Thursday, April 17,
2008 at 8:00 a.m. in the 8th floor boardroom for the purpose of considering
the authorization of a Debenture issue in the amount of $11,000,000.
Respectfully submitted,
~G~regory J. Yeomans, CGA, MBA
Commissioner of Finance
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SAINT JOHN P.O. Box 1971 Saint John, NB Canada FZL 4L1 (www.saintjohn.ca C.P. 1971 Saint John, N: B. Canada E2L 4L1
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The City of Satrtt John
OPEN SESSION
M & C 2008
April 10, 2008
His Worship Mayor Norm McFarlane
And Members of Common Council
Your Worship and Councillors:
SUBJECT: 2008 DEBENTURE ISSUE
BACKGROUND:
The New Brunswick Municipal Finance Corporation is planning a bond issue in
the near future. While the issue will not be sold until the Corporation feels that
rates are reasonable, they have provided ranges within which the issue could be
sold. These are as follows:
Interest Rate: Not to exceed an average of 6.50%
Price, Net: Not to be less than $98.00 per $100.00 of debenture
Term: Serial form to mature in equal annual amounts over a
term not to exceed 15 years for the General Fund and
Transit and 20 years for the Water & Sewerage Utility.
Notice of motion was given at the March 18, 2008 meeting of Common Council
regarding the need to borrow $11,000,000. In order to proceed with the
debenture financing it is now recommended that the following be adopted.
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SAINT JOHN
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P.O. Box 1971 Saint John, NB Canada E2L 4L1 I vwvw.saintjohn.ca I C.P. 1971 Saint John, N: B. Canada F2L 4L1
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RECOMMENDATION:
Whereas occasion having arisen in the public interest for the following public
civic works and needed civic improvements, that is to say:
GENERAL FUND
General Government $ 500,000
Protective Services $ 750,000
Transportation Services $ 4,000,000
Environmental Health $ 300,000
Economic Development $ 1,500,000
Parks and Recreation $ 1,450,000
$ 8,500,000
WATER & SEWERAGE UTILITY
Water System $ 2,000,000
Sewer System $ 500,000
$ 2,500,000
TOTAL $ 11,000,00
1. Therefore resolved that debentures be issued under provisions of the Acts
of Assembly 52, Victoria, Chapter 27, Section 29 and amendments thereto
to the amount of $11,000,000.
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2. Commissioner of Finance be authorized to issue and to sell to the New
Brunswick Municipal Finance Corporation (the "Corporation") a City of
Saint John bond or debenture in the principal amount of $11,000,000 at
such terms and conditions as are recommended by the Corporation.
3. And further that the City of Saint John agrees to issue post-dated cheques
to the Corporation, or other such arrangements as the Corporation may
from time to time accept, in payment of principal and interest charges on
the above bond or debenture as and when they are required by the
Corporation.
4. And further that the Commissioner of Finance be hereby authorized to
receive an offer in connection with the foregoing debentures at a price not
less than $98 per $100 of debenture, at interest rates not to exceed an
average of 6.50% and at a term not to exceed 15 years for the issue
related to the General Fund and Transit and not to exceed 20 years for the
Water & Sewerage Utility.
5. And further that the Commissioner of Finance report to Common Council
the exact values for price per $100 of debenture, interest rate and term in
years, together with the date of the issue.
Respectfully submitted,
Gregory J. eomans, CGA, MBA
Commissioner of Finance
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