THE CORPORATION OF THE CITY OF PORT COQUITLAM C 0 UJ N C | [ ;

JUN 25 1984

TO: B. Kirk, : DATE: June 21, 1984.

City Administrator.
c.ce:= G. Anderson,

FROM: J. Maitland, McKenzie Lidstone.
City Treasurer.
- F. Peters, P. Eng.,
City Engineer.

SUBJECT: Short Term Capital Borrowing.
- R. Freeman,

° City Clerk.

RECOMMENDATION:

That Council pass the attached by-law in regards to the contracting of
debt, in the amount of $750,000 to provide trunk main servicing to the
south Mary Hill area.

BACKGROUND & COMMENTS:

The proposed developer agreements for the south Mary Hill area provide

for developers to be repaid by the city for portions of the trunk services
to the area. The attached by~law and security sample fulfill the legal
requirement imposed on us by part 6 of the Muncipal Act. The proposed by-
law authorizes the contracting of the debt with the developers.

ARR ORL APOC MANE AA REN AL AE Bebe at eatin an ee ce Sree ee

Council should be aware of the following:

(1) The proposed by-law will severely limit our short term (five year and
under) borrowing power.

5 Gets EI rien irc peristmin ox ain

Our short term borrowing under section 344 is limited to a maximum $35
times the municipal population, which for us yields $957,075, this by-
law would tie up $750,000 of that. The only problem which I can see at
this time is that this short term borrowing section of the act is the
only way we can borrow except for drainage, sewerage, waterworks or
local improvements without the electors’ assent. In other words, if we
in the next five years need to borrow for purposes other (eg ~- roads,
recreation or protective services) than those mentioned above we will
require the electors’ assent if the sum required when added to the out~
standing balance under this by-law exceeds our maximum at that time.

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