THE CORPORATION OF THE CITY OF PORT COQUITLAM Short Term Capital Borrowing cont. Page 2 (2) While our intent is to make repayment out of development cost cherges and latecomer charges from future developments we may be required to levy as much as is required to offset possible shortfalls if devel- opment does not occur as planned. The other means I can see of permitting this type of agreement are: Passing of a loan authorization by-law for long term borrowing. T would recommend against this as it would become very complicated as our borrowing in this fashion is restricted to borrowing through the Municipal Finance Authority, also a longer period of lead time is required to fullfill posting requirements, etc. By setting aside by by-law, a sufficient amount of our reserve accounts to be dedicated to this purpose alone. This could be even more restric- tive than the by-law proposed jn that we may have to actually borrow money if our reserves are dedicated to this purpose and funds are needed for another project. The by-law must be in place prior to the signing of the preposed developer OLENA AN Sette SET agreements. vad Las SEI Dh Tac I A fe J. Maitland. JM/ms Attachment ‘