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950410 Finance Committee MIN.THE CORPORATION OF THE TOWN OF TILLSONBURG FINANCE AND ADMINISTRATION COMMITTEE MINUTES of the meeting of the Finance and Administration Committee held April 10th, 1995, at 11:30 A.M. PRESENT: Bob Parsons, (11:55 a.m.), Irv Horton, Cam McKnight, Robert Smith, Frank Welsh, and Sam Lamb Brad Bartlett, Ray Jones, Dave Morris, Ken Patterson, Gary Seitz, John Arts A. Appointment of Chairman In the absence of Chairman B. Parsons, Vice-Chairman R. Smith was appointed to chair the meeting until the arrival of the Chairman of the F & A. B. Adoption of the Minutes MOVED by I. Horton, SECONDED by F. Welsh "THAT the minutes of the Finance and Administration budget meetings, held January 27th, February 7th, February 24th, March 10th and March 16th, 1995 be recommended for adoption by Town Council .. , Carried ... C. Adoption of the Agenda D. MOVED by I. Horton, SECONDED By F. Welsh "THAT the agenda, as prepared for Administration Committee meeting of April adopted with the following additions: the Finance 10th, 1995, and be Discussion of me ·~ing date for future regular monthly F & A meetings. To set a date for an additional F & A meeting, to deal with a number of outstanding issues." Carried ... T.R.C. Report March 31st, 1995 G. Seitz further explained and outlined financial information from reports and schedules submitted with the agenda. Discussion ensued in respect to the July 1, the Joint Venture Agreement between The Town of Tillsonburg and Greenback Resource 1995 renewal of Corporation of the Management Corp. -2 - On completion of the review and discussion it was MOVED by F. Welsh, SECONDED by I. Horton "THAT the Treasurer contact the firm of Mandryk and Heeney for the purpose of preparing a new agreement of the Joint Venture and THAT such draft agreement be available for the Finance and Administration Committee prior to the next regular F & A meeting, at which meeting principal(s) of Greenback Corp. will be in attendance." Carried ... E. Accounts Payable F. The F & A Committee reviewed the Accounts Payable List, dated March 31st, 1995. Bob Parsons and Robert Smith declared a pecuniary interest on Page 10, Vendor No. T460. Page 5 Ontario Traffic Conference The allocation of the expenditure of $325.00 plus G.S.T. for Police Chief H. Harley was questioned and further discussed, a at the completion of which, it was MOVED by R. Smith, SECONDED by I. Horton "THAT the expenditures related to attending the Ontario Traffic Conference be discussed as to proper cost allocation, during the 1996 budget discussions." Carried ... On completion of the discussion and review of the Accounts Payable, it was MOVED by I. Horton, SECONDED by C. McKnight "THAT the Accounts Payable, as per list dated March 31, 1995, in the amount of $ 318,848.23 be approved for payment." Carried ... Cemetery Accounts Payable February 28, 1995 G. Seitz explained that effective April 1, 1995, the Cemetery Accounts Payable will be included in the current Town's Departmental Accounts Payable listing. It was pointed out that Cemetery cheque no. 1420, was in payment of February 1995 PUC charges (not January). ' -3 - On comp le ti on of the review, it was MOVED SECONDED by I. Horton by R. Smith, "THAT the Cemetery Account Payable, as per list 1995, in the amount of $2,243.64, be approved dated February for payment." Carried ... G. Tax Status R. Jones presented further details on the March 31st, 1995 quarterly tax receivable report, as submitted·in the agenda for the April 10th F & A meeting. As the report shows, the only unfavourable variance is in The Current Year's Business Tax arrears, which is primarily due to 3 accounts being late on the first instalment. The report shows arrears, which economic climate a~ favourable variance in total tax i'~eved to be due to improvements in the and continued collection efforts. The Revenue Officer further informed the F & A Committee with an update on other Tax Receivable issues. H. 1994 Year End Results The preliminary report on year end results indicates the 1994 Deficit to be $101,242. As submitted in the explanations accompanying the preliminary year end report, the primary areas of deficit are attributable to shortfalls in interest income and overexpenditures due to interim financing, as well as the continuing underfunding by the Province and further reductions of Provincial sub~idy towards the necessary expenditures for Roads Maintenance. The deficit situation will be further discussed on receipt of the audited financial statements from the Municipal Auditors. I. Future F & A Meetings After some discussion the Committee decided basis, future regular meetings of Administration Committee will be held on: that, on a the Finance Fridays, preceding the first monthly meeting of Council, at 11:30 A.M. trial and (the first such meeting date will therefore be on May 5th, 1995, at 11:30 A.M. -4 - J. Additional F & A Meeting In order to deal with several outstanding issues {a total of 10 at this time) for discussion and review by the Finance and Administration Committee, an extra meeting was scheduled for: Tuesday, April 18th, 1995 at 11:30 A.M. The meeting adjourned at 1:15 P.M. 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006- 200 7 2008- 2013 2014- 2020 Debenture p & I 1,782,161 1,670,652 1,633,507 1,152,715 900, 774 894 ,387 721,984 807,916 646,263 616,263 214,602 June 9' 1997 TOWN OF TILLSONBURG Annual Debt payment requirements Parking Land ODRP Loan Garage Requisition TOTAL 150,000 129,935 100,000 $ 2,162,096 150,000 129,935 100,000 2,050,587 150,000 129,935 1,913,442 150,000 129,935 1,432,650 150,000 129,935 1,180,709 150,000 129,935 1,174,322 150,000 129,935 1,001,919 150,000 129,935 1,087,851 70,723 129,935 846,921 129,935 746,198 129,935 344,537 129,935 129,935 1. This schedule includes an annual $401,661 payment requirement on two 1997 debenture issues at 7% for a 10 year term: $ 2,309,148 Sewers & Roadwork $ 511,500 Arena roof & brickwork 2. As the schedule illustrates, after allowing for the additional annual payment of $ 401,661, the total payment requirement continues to drop: $ 111,509 less in 1998 and a further reduction of $ 137,145 in 1999 and a substantial drop of$ 480,792 in the year 2000. 3. It should also be noted however, that in the last two years Provincial grants were reduced from $ 921,430 in 1995 to $ 370,595 in 1997. To say the least, a further reduction is to be expected in 1998. 4. This schedule does not allow for possible additional debenturing needs. 5. At this point, the Corporation remains within its debenture debt limit and a further$ 1,500,000 (approx.) could be debentured in case of necessity. Such limit amount will increase in accordance with annual reduction of existing debt.