Staff Report: DCC Reserve Fund Outstanding Amount Owed
Report recommending that $62,000 borrowed from the DCC Reserve Fund for parkland acquisition in 2007 be deemed repaid via earned interest.
TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT
TO: Committee of the Whole DATE: April 8, 2015 FROM: Jeannie Beauchamp, Director of Finance MEETING DATE: April 14, 2015
DCC RESERVE FUND OUTSTANDING AMOUNT OWED
RECOMMENDATION: THAT the Committee deems the amount outstanding from Development Cost Charge Reserve Fund Expenditure Bylaw No. 675, 2007 as being repaid in full by the interest earned on the DCC Reserve Fund (Parkland Acquisition) to December 31, 2014.
CHIEF ADMINISTRATIVE OFFICER'S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To provide Council with information regarding the amount outstanding from Development Cost Charge Reserve Fund Expenditure Bylaw No. 675, 2007.
INFORMATION:
Development Cost Charge Reserve Fund Expenditure Bylaw No. 675, 2007 approved $62,000 being borrowed from the DCC Reserve Fund (Parkland Acquisition) for park improvements in accordance with Section 189 (4.2) of the Community Charter. There has been no formal repayment of these funds as of yet. An alternative to the straight repayment of the outstanding amount is outlined below.
Per the 936 (6) of the Local Government Act:
Acquisition and development of park land
936 (6) Despite section 935 (3), interest earned on money in the park land development cost charge reserve fund may be used by the local government to provide for fencing, landscaping, drainage and irrigation, trails, restrooms and changing rooms, playground and playing field equipment on park land owned by the local government or owned by the Crown and managed by the local government.
In summary, the interest earned on the DCC Reserve Fund (Parkland Acquisition) can be used for parkland improvements without any requirement for the interest to be repaid.
At this time the interest earned on the DCC Reserve Fund (Parkland Acquisition) is very close to the amount borrowed for parkland improvements. It is suggest that the amount owed to the DCC Reserve Fund (Parkland Acquisition) be off-set by the available interest earned – thus clearing the outstanding amount owed.
This approach has been confirmed as an appropriate option with Finance Officer Joshua Craig, the Ministry of Community, Sport and Cultural Development's Local Government Division contact for the Town of View Royal.
RECOMMENDATION: THAT the Committee deems the amount outstanding from Development Cost Charge Reserve Fund Expenditure Bylaw No. 675, 2007 as being repaid in full by the interest earned on the DCC Reserve Fund (Parkland Acquisition) to December 31, 2014.
SUBMITTED BY: J. Beauchamp, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
Document Images
(2)
