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File #: 20-004    Version: 1 Name:
Type: Staff Report Status: Passed
File created: 12/16/2019 In control: Council
On agenda: 1/6/2020 Final action: 1/6/2020
Title: 2020 Revenue Anticipation Bylaw
Attachments: 1. Attachment 1: Bylaw 2985 - Revenue Anticipation Borrowing 2020
REQUEST FOR DECISION

DATE: December 16, 2019 Report No. FIN-20-001
TO: Laurie Hurst, Chief Administrative Officer
FROM: Ian Irvine, Director of Financial Services
SUBJECT:

Title
2020 Revenue Anticipation Bylaw
End

RECOMMENDATION:

Recommendation
That Council give Revenue Anticipation Bylaw, 2020, No. 2985, 1st, 2nd and 3rd readings.
Body

RELEVANT POLICY:

Community Charter Section 177

STRATEGIC RELEVANCE:

This decision does not directly relate to any strategic priority or objective.

BACKGROUND:

Section 177 of the Community Charter permits a Council to borrow money for short term purposes in an amount up to 75% of the taxes levied by the Township for all purposes. Based on the property taxes levied in the previous year, $22,045,000 would be the maximum allowable amount.

Other than for the funding of capital projects, no short term borrowing has been required by the Township during recent years. This has been the result of the net cash balance exceeding the amount necessary to cover operating expenditures until a majority of property tax payments have been collected.

For the 2020 fiscal year, an amount not exceeding $2,500,000 may be required by either overdraft or short term borrowing. This amount is deemed sufficient by our bank and would represent approximately 5% of the Township's budget. The applicable interest rate of any borrowing would be determined at the time any request was made.


ISSUES:

1. Rationale for Selected Option

In the event that the Township requires any additional short term funding prior to completion of the 2020 property tax collections, our bank would request security in the form of a bylaw. This bylaw would provide assurance to the bank and would facilitate timely access should any funds be required.

2. Organizational Implications

There are no organizational implications of this decision.

3. Financial Implications

There is no expectation that any short term borrowing will be required as our current cash...

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