2010-06-29 Agenda - Debenture Committee

Debenture Committee

Mayor David Miller (Chair)

Councillor Shelley Carroll (Vice-Chair)

Joe Pennachetti, City Manager

Cam Weldon, Deputy City Manager and Chief Financial Officer

Members of Council and Staff: Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended. The City Clerk’s Office will not provide additional copies.

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call (416-392-9151), TTY 416-338-0889 or e-mail pmorris@toronto.ca.

Closed Meeting Requirements: If the Debenture Committee wants to meet in closed session (privately), a Member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately. (City of Toronto Act, 2006)

Notice to people writing or making presentations to the Debenture Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees.

The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

The City videotapes committee and community council meetings. If you make a presentation to a committee or community council, the City will be videotaping you and City staff may make the video tapes available to the public.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or by calling 416-392-9151.

Declarations of Interest under the Municipal Conflict of Interest Act.

Confirmation of Minutes - April 28, 2010

Communications/Reports

The Deputy City Manager and Chief Financial Officer recommends that:

1. The Debenture Committee approve the issue of a fifteen year amortizing debenture in aggregate principal amount of $42,256,242 to CMHC under the Municipal Infrastructure Lending Program, in accordance with the terms and conditions set out in the Commitment Letters and the Loan Agreement entered into by the Mayor and Deputy City Manager and Chief Financial Officer, and in accordance with this report.

2. Authority be granted for the introduction of the necessary bills to the Debenture Committee to authorize the issue of the debenture described in Recommendation 1 above.

3. The Debenture Committee authorize the appropriate City officials to take the necessary actions to give effect thereto.

This report requests authority to issue a debenture for $42,256,242 to the Canada Mortgage and Housing Corporation (CMHC) to finance eligible project costs within the City’s 2009 and 2010 Capital Budget through CMHC’s Municipal Infrastructure Lending Program.

This amount is within the Council approved $700 million debt issuance limit for 2010. If approved, the City will have issued $500 million under this authority so far in 2010.

The annual payment of interest and principal in the amount of $3,755,533.92 million will be funded through the City’s Operating Budget beginning in 2011. The debenture interest rate of 3.83% was determined by CMHC on June 21, 2010. The rate was set at the comparable Government of Canada rate plus approximately 50 basis points, representing an estimated 50 basis point lower cost than comparable City debt at current market rates.

Meeting No.	6	Contact	Patsy Morris, Committee Administrator
Meeting Date	Tuesday, June 29, 2010	Phone	416-392-9151
Start Time	1:30 PM	E-mail	pmorris@toronto.ca
Location	Committee Room 3, City Hall	Chair	Mayor David Miller