TAMRMS#: B06
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Bylaw 26/2020 Operating Line of Credit Borrowing Bylaw (2nd and 3rd Readings)
Presented by: Diane McMordie, Director, Finance & Assessment
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RECOMMENDED MOTIONS
recommendation
1. That Bylaw 26/2020 be read a second time.
2. That Bylaw 26/2020 be read a third and final time
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PURPOSE OF REPORT
To recommend second and third reading of Bylaw 26/2020 to enable the City to increase the limit on the line of credit with ScotiaBank in order to provide flexibility to address any financial shortfall that may occur as a result of measures taken by the City in response to the Covid - 19 virus pandemic.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
N/A
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Business and Financial Planning Management - Financial Planning (Stewardship of development of annual operating and capital budgets for Municipal and Utility operations.)
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On June 15, 2020 Council passed the following resolution:
(BL-20-027)
That Bylaw 26/2020 being an Operating Line of Credit Borrowing Bylaw to finance operating expenditures subject to certain conditions, be read a first time.
BACKGROUND AND DISCUSSION
The City currently has an operating line of credit with ScotiaBank for $5,000,000 as per Bylaw 4/95. Due to the financial uncertainty arising from measures the City has taken to mitigate the spread of Covid-19 and the impacts on the City’s financial position, Administration requested ScotiaBank to increase the limit on our line of credit.
ScotiaBank is prepared to increase the limit on the line of credit to $20,000,000.
This is an operating facility for the purpose of financing operating expenditures. All borrowings will be at the rate of prime minus 1%.
Borrowing Bylaw 26/2020 outlines all of the conditions and security requirements for this temporary operating facility.
An operating line of credit is a financing mechanism to support fluctuations in ca...
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