2011-09-28_Agenda Packet--Dossier de l'ordre du jour ���
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City of Saint John
Common Council Meeting
Wednesday, Septembcr 28th,2011
12:00 p.m.,S`�'Floor Boardroom, City Hall
Agenda
1.1 2U11 Debenture Issue
City of Saint John
Seance du conseil communal
Le Mercredi 28 Septembre, 2011
16 h 30--Salle de conference, S�etage,hotel de vil�e
Ordre du jour
l.l Emission de debentures pour 2021
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'Cl�e Clty of Safnt John
September 27, 2011
Notice of Special Meeting
Deputy Mayor and Councillors,
A special meeting of Common Council has been scheduled for Wednesday, September 28th at
92:00 p.m. in the 8`h floor boardroom of City Hall to discuss the 20�1 Debenture Issue.
Sincerely,
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I�an Court
Mayor
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The City of Saint]ohn
OPEN SESSION
September 28, 2011
His Worship Mayor Ivan Court
And Members of Common Council
Your Worship and Councillors:
SUBJECT: 2011 DEBENTURE ISSUE
BACKGROUND:
The New Brunswick Municipal Finance Corporation is �lannir►g a bond issue in
the r�ear future. While the issue will not be sold until the Corporation feels that
rates are reasonable, they ha�e pro�ided ranges within which the issue could be
sold. These are as tollows:
Interest Rate: Not to exceed an a�erage of 5.75%
Price, Nef= Not to be less than $98_OQ per$100_00 of debenture
Term: Serial form to mature in equaf annual amounts over a
term not to exceed 15 years for the General Fund and
20 years for the Water & Sewerage Utility.
Notice of motion was gi�en at the August 29th 2011 meeting of Common Council
regarding the need to borrow $11,500,OOQ. In order to proceed with the
debenture financing it is now recommended that the following be adopted.
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RECOMMENDATION:
Whereas occasion ha�ing arisen in the public interest for the following pubfic
ci�ic works and needed ci�ic impro�ements, tha# is to say:
GENERAL FUND
Transpartation Services $ 500,000
Economic De�elopment $ 1,000,000
Parks and Recreation $ 3,000,000
$ 4,500,000
WATER & SEWERAG� UTILITY
Water System $ 2,SOQ,000
Sewer System $ 4,500,000
� 7,000,000
TOTAL 11,500,00
1. Tl�erefore resolved that debentures be issued under pro�isions of the Acts
of Assembly 52, Victoria, Chapter 27, Section 29 and amendments thereto
to fhe amount of$11,500,000.
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2. Commissioner of Finance be autharized to issue and to sell to the New
Brunswick Municipal Finance Corporation (the "Corporation") a City of
Saint John bond or debenture in fhe principal amount of $11,500,000 at
such terms and conditions as are recommended by the Corporation.
3_ And further that the City of Saint John agrees to issue pos#-dated cheques
to the Corporation, or other such arrangements as the Corporation may
from fime to time accept, in payment of principal and interest charges on
the above bond or debenture as ar�d when they are required by the
Corporation.
4. And further that the Commissior�er 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
a�erage of 5.75% and at a term not to exceed 15 years for the issue
related to the General Fund and not to exceed 20 years for the Wa#er &
Sewerage Utility.
5. And further that the Commissioner of Finance report to Common Councif
the exact �alues for price per $100 of debenture, interest rate and term in
years, together with the date of the issue.
RespectFully submi#te ,
Gregory J. mans, CGA, MBA
Commiss' er of Finance