THAT Council authorize the Chief Administrative Officer who is delegated as the Shareholder representative to represent the Town of Cobourg Council to support the proposed resolutions as presented below:
(1) Audited Financial Statements
BE IT RESOLVED THAT:
- The Shareholders receive the Audited 2023 year-end Town of Cobourg Holdings Inc. (Holdco) Consolidated Financial Statements as presented.
- The Cobourg Shareholder post the 2023 year-end HOLDCO Consolidated Financial Statements on-line upon receipt.
Revised Resolution
- The Audit & Risk Committee and the Town of Cobourg Holdings Inc. recommend to the Shareholder, the Town of Cobourg Council, that KPMG be appointed as the external auditors for the Town of Cobourg Holdings Inc. and Subsidiary Companies, for a period of two years, effective the fiscal 2024 year.
(2) Annual Dividend and Benefits
BE IT RESOLVED THAT:
- The Shareholders acknowledge that a community services benefit of $129,600 including the provision of fibre-optic network services, was provided to the Town of Cobourg Shareholder in 2023 by the Lakefront Group of Companies.
- The Shareholders acknowledge that the Holdco Board has decided to declare no dividend for 2023 to meet its financial obligations and maintain flexibility for dealing with other financial effects of the economy, including high inflation.
- The Shareholders acknowledge that the cumulative Shareholders Financial Benefit since deregulation as of 2023 year-end from the Town of Cobourg Holdings Inc. is approximately $17 M consisting of interest and dividend payments.
(3) Promissory Note
BE IT RESOLVED THAT:
The Shareholders acknowledge that with regard to the Promissory Note between The Corporation of the Town of Cobourg and Lakefront Utilities Inc. (LUI) at the original principal amount of $7M, the interest paid in the calendar year 2023 was at the rate of 3.46% reflecting LUI’s approved rate of the Ontario Energy Board (OEB) for Long Term affiliate debt set in the last Cost of Service Application (COS) in 2021, with the outstanding Balance of Principal as of December 31, 2023 being $6.6M after a $400,000 principal payment to the Town of Cobourg in 2023.
(4) LUI Debt/Equity Ratio
BE IT RESOLVED THAT:
The Shareholders acknowledge that as of year-end 2023, the Lakefront Utilities Inc. Debt/Equity ratio was 59/41 and thus within the debt/equity ratio of 60/40 required under the Shareholders’ Agreement as amended in 2009.
(5) Directors of Holdco and Subsidiaries
BE IT RESOLVED THAT:
The Shareholders acknowledge that as of December 31, 2023, the Board of Holdco consists of six Directors and that the Subsidiary Boards of Lakefront Utilities Inc. and of Lakefront Utilities Services Inc. consist of five and four Directors respectively as indicated in the following which also shows their respective individual terms of office.