TAMRMS#: B06
title
Bylaw 39/2021 - Guarantee Bylaw - EMTSC (1st Reading)
Presented by: Diane McMordie, Director, Financial Services and Information Technology/CFO
label
RECOMMENDED MOTIONS
recommendation
WHEREAS the Province of Alberta has approved the establishment of the Edmonton Metropolitan Transit Services Commission (the "EMTSC");
AND WHEREAS the EMTSC requires a loan in the form of an Operating Line of Credit (the "loan") to support organizational costs until responsibility for transit services and the associated revenues transfer to the ETMSC in 2022;
AND WHEREAS the lender requires that the loan be guaranteed by the municipality;
AND WHEREAS section 266 of the Municipal Government Act requires that Council pass a guarantee bylaw in order to allow the City to provide a guarantee of the loan;
NOW THEREFORE BE IT RESOLVED:
1. That Bylaw 39/2021, being a Bylaw to guarantee repayment of a loan to the EMTSC, be read a first time;
2. That Council affirms that the money obtained by the EMTSC under the loan to be guaranteed by the City pursuant to Bylaw 39/2021 will be used for a purpose that benefits the City of St. Albert;
3. That the CAO be directed to cause the City of St. Albert to provide to the EMTSC an interim advance on levies in the amount of $1,700,000, drawn from the Stabilization Fund, pursuant to an agreement that provides for return of the advance to the City upon the EMTSC being approved for the loan and upon such other terms as are acceptable to the CAO.
body
PURPOSE OF REPORT
To provide first reading to a bylaw that will allow the City of St. Albert to guarantee $1,700,000 of a $5,000,000 Line of Credit for which the EMTSC has applied, and to seek Council approval for a short-term interim advance on levies agreement that will provide the EMTSC with funding that will allow them to meet their immediate cash obligations to vendors and employees as they await the City's passing of a guarantee bylaw and subsequent approval of t...
Click here for full text