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 ‘