City finance puts a bylaw in place to access their lines of credit - you never know.

By Staff

December 5th, 2021

BURLINGTON, ON

 

Council won’t spend a minute on this item in the consent agenda

A bylaw to authorize the temporary borrowings of monies from the Royal Bank of Canada to meet the ordinary expenditures of the corporation.

At various times during the year, it may be necessary to arrange short-term loans from the City’s banker to meet the current ordinary expenditures of the municipality.

Director of Finance Joan Ford is on a first name basis with the bank manager.

There are times in the year when cash flow is at the lowest point and operating expenditures must be covered during the period just prior to the collection of the property taxes. In previous years, we have borrowed from our Reserve Funds during this time and will continue to do so as necessary in 2022.

Borrowing arrangements with the Royal Bank provide us with a $5,000,000 line of credit at the prime-lending rate minus 3/4%. At the current time, prime stands at 2.45%. It has not been necessary to access this credit line during 2021 or prior years nor is it anticipated to be needed for 2022. The by-law is prepared to meet the requirements of the banks.

The City also has borrowing arrangements with Scotia Bank to provide a credit facility of up to $5,000,000 for administering the City’s purchase card program. In 2021 and prior years, this credit facility was paid off monthly and the City anticipates that the facility will be used in the same manner in 2022.This borrowing agreement does not require a security agreement.

 

Return to the Front page
Print Friendly, PDF & Email

Comments are closed.