HomeMy WebLinkAboutFCS-16-146 - 2016 Debt Issue Revision
REPORT TO: Council
DATE OF MEETING: September 12, 2016
SUBMITTED BY: Ryan Hagey, Director of Financial Planning 519-741-2200 x 7353
PREPARED BY: Ryan Hagey, Director of Financial Planning 519-741-2200 x 7353
WARD(S) INVOLVED: All
DATE OF REPORT: September 1, 2016
REPORT NO.: FCS-16-146
SUBJECT: 2016 Debt Issue Revision
___________________________________________________________________________
RECOMMENDATION:
That “Urban Forest - $256,000” be removed from the list of items identified for
2016 debenture financing, as approved at the January 18, 2016 special Council
meeting and be replaced with “KOF Maintenance - $200,000” and “Activa Twin
Pads - $56,000”
BACKGROUND:
As part of the annual budget process, Council approves a list of capital projects to be
financed through issuing debt. As a lower-tier municipality, the City of Kitchener is
precluded from issuing debt on its own and instead must issue debt through its upper-
tier municipality (the Region of Waterloo). To qualify for debt financing, a project must
be capital in nature and have an expected lifespan longer than the term of the debt.
REPORT:
The Region of Waterloo has been informed by outside legal counsel that Kitchener’s
Urban Forest project does not qualify for debt financing as planting trees is not
considered by them to be a capital activity. Instead, Kitchener needs to substitute other
qualifying capital expenses.
Staff have identified two other projects that qualify and can be substituted for the Urban
Forest project.
1. KOF Maintenance – HVAC and exterior lighting upgrades
2. Activa Twin Pads – HVAC upgrades
Substituting projects has no impact on the overall budget approved by Council. The
$256,000 of debt financing is required to deliver the capital budget approved by Council.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
1. - 1
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
None. The recommendation simply changes which projects for which the City is issuing
debt.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Original approval for issuing debt was given as part of 2016 Final Budget Day (report
FCS-16-002 on January 18, 2016).
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO (Finance and Corporate Services)
1. - 2