May 12, 2025, at 1:00 PM
Present:
C. Rahman, J. Pribil, A. Hopkins, S. Franke
Absent:
P. Van Meerbergen
Also Present:
S. Datars Bere, A. Barbon, D. Escobar, K. Murray, J. Paradis, T. Pollitt, E. Skalski, L. Switzer
Remote Attendance:
M. Galczynski, E. Hunt.
The meeting is called to order at 1:00 PM; it being noted that Councillor S. Franke was in remote attendance.
1. Disclosures of Pecuniary Interest
That it BE NOTED that no pecuniary interests were disclosed.
2. Consent
2.1 Spring 2025 Debenture Issuance Update
2025-05-12 Staff Report - Spring 2025 Debenture Issuance Update
Moved by A. Hopkins
Seconded by J. Pribil
That, on the recommendation of the Deputy City Manager, Finance Supports, the following actions be taken:
a) the issuance of serial debentures for a total of $26,200,000 BE APPROVED, noting the average all-in rate is 3.763% over a 10-year term and that all debt has been placed with investors in the capital markets; and
b) the proposed by-law, as appended to the staff report dated May 12, 2025 as Appendix “A”, BE INTRODUCED at the Municipal Council meeting to be held on May 13, 2025 to execute the borrowing upon serial debentures in the aggregate principal amount of $26,200,000 towards the cost of certain capital works of the Corporation of the City of London.
Vote:
Yeas: Absent: A. Hopkins P. Van Meerbergen J. Pribil S. Franke C. Rahman
Motion Passed (4 to 0)
3. Scheduled Items
None.
4. Items for Direction
None.
5. Deferred Matters/Additional Business
None.
6. Confidential
None.
7. Adjournment
Moved by S. Franke
Seconded by A. Hopkins
That the meeting BE ADJOURNED.
Motion Passed
The meeting adjourned at 1:06 PM.
Full Transcript
Transcript provided by Lillian Skinner’s London Council Archive. Note: This is an automated speech-to-text transcript and may contain errors. Speaker names are not identified.
View full transcript (20 minutes)
[14:56] Okay, hello everyone. I will get started with the ninth special meeting of the, well it’s a special meeting, but it is the ninth meeting of the Infrastructure and Corporate Services Committee. First, I’ll start with the land acknowledgement. The City of London is situated on the traditional lands of the Anishinaabek, Haudenosaunee, Lenothoek, and Adawandran people. We honor and respect the history, languages, and culture of the diverse indigenous people who call this territory home. The City of London is currently home to many First Nation, Métis, and Inuit today. As representatives of the people of the City of London, we are grateful to have the opportunity to work and live in this territory. I’m joined today in Council Chambers with Councillor Hopkins and Councillor Privel and online we have Councillor Frank being that this is a special meeting. We’ll be dealing with item 2.1, which is the spring 2025 to venture issuance update, but we’ll begin with number 1, disclosure of pecuniary interest. Seeing none, we’ll move on to 2, which is our consent item 2.1, and I will turn it over to Mr. Murray to provide some brief comments. Thank you, Chair, and thanks for the opportunity just to say a few quick words. I’m very pleased to report, as you see in front of you today, that we have successfully placed our 2025 spring debenture issuance in the capital markets.
[16:28] This issuance is a 10-year 26.2 million dollar serial debenture. It comes at an all-in rate of 3.763 percent over a 10-year term. This rate of borrowing is less than last year’s rate of issuance. So last year we were at about 4.43 percent, and this aligns fairly closely with the rates we achieved on our 2022 and 2023 issuances as well. So far this year, capital markets have been quite volatile, I will say, and that’s primarily driven by tariff developments south of the border.
[17:06] We were fortunate to find a period of relative stability in the markets in order to proceed with our issuance and get a deal done. I will say and take this opportunity to mention that our AAA credit rating, now for 48 straight years, contributes to our ability to access the largest possible pool of potential investors for our issuance, even when markets get a little choppy. So this is a good illustration of the importance of our credit rating. Subject to approval by committee today and then council tomorrow, we will ultimately move forward with settlement of this issuance on May the 20th. And with that, I’m happy to take any questions that committee might have we are also, I believe, joined or going to be joined by one of our representatives from RBC capital markets as well, who is the lead on this year’s debt issuance deal as well if there are any detailed questions. Thank you. Thank you, and I see that they are on Zoom, which is wonderful if we have any further questions. To get us started, I’ll look for a mover, Councillor Hopkins and a seconder, Councillor Prabell, and then look for any questions or comments. Councillor Hopkins, go ahead. Thank you, Madam Chair, and just want to thank staff for the work that you do, providing us the information. It’s very much appreciated. I understand the interest isn’t as high as last years, but it’s not as low as it has been in other years and really appreciate, you know, I see the due diligence that you have here making us viable as a city to provide for, you know, that stability that we need to go forward with the projects that are ongoing in our city. So thank you.
[18:54] Thank you. I’ll look to the rest of the committee to see if there’s any further questions or comments. Councillor Prabell. Thank you, one comment, one question in the conclusion. It does say negative budget, their impact is not anticipated. So glad to read that. Last month, we received a report on the forecast of the depth for next 10 years. So my question is, this amount is, of course, included in the forecast we received last month. Thank you. Mr. Murray. Thank you, and through you, Madam Chair. It is, although I will say that the very good news about this year’s spring issuance is that there is actually no property tax supported debt included in here.
[19:38] So this is entirely debt related to development charges funded projects or wastewater projects. So the great news is that we have been able, through the application of our financial policies, we’ve been able to actually substitute away all of the property tax supported debt. So this is absolutely within our future forecast. But the great news is that we’re continuing to whittle away at the amount of property tax supported debt that we are projecting. Thank you, Councillor. Thank you for answering. Thank you for taking the section. Thank you. I’ll look to Councillor Frank. Any questions? Okay. Seeing none, I’ll look to open the vote on this item. I vote yes. Closing the vote. Motion carries 4-0.
[20:31] Thank you. And thank you to staff for that report and for RBC for being with us online as well. With that, our only item left is adjournment. So I’ll be looking for a motion to adjourn. I have Councillor Frank and Councillor Hopkins by show of hands all in favor. Motion carries. Thanks everyone, have a great rest of your day.