General Committee
	TO:	Mayor and Members of Council
	FROM:	Andy Taylor, Commissioner, Corporate Services Barb, Cribbett, Treasurer
	PREPARED BY:	Kishor Soneji, Financial Analyst
	DATE OF MEETING:	November 21, 2005
	SUBJECT:	By-Law to Authorize Temporary Borrowing

RECOMMENDATION:

THAT a by-law be brought forward for Council approval to authorize the temporary borrowing, if required, of an amount not to exceed $ 97,475,416 from January 1, 2006 to September 30, 2006 and $ 48,737,708 from October 1, 2006 to December 31, 2006 to meet the current expenditures of the Corporation until taxes are collected and other revenues are received.

PURPOSE:

To obtain Council approval to establish a temporary borrowing credit facility with an upset limit as described above to ensure that the Town is able to meet its financial obligations in 2006 should it be required.

BACKGROUND:

The Corporation of the Town of Markham is required to pass a Borrowing By-law each year in order to have an expenditure facility made available to it by their bankers. In the initial months of each year it may be necessary to borrow short-term funds until the interim tax billings are issued and collected. In the past the Town has not availed itself of this facility but nevertheless must have a Borrowing By-law in place to apply for such an expenditure facility.

The Municipal Act (Section 407(2)) governs the upper limits on the amounts the Town can borrow. For the period January 1st to September 30th of the year, the Town’s borrowing cannot exceed 50 per cent of the total estimated revenues of the Corporation, and from October 1st to December 31st, 25 per cent of the total estimated revenues of the Corporation.

FINANCIAL CONSIDERATIONS:

The interest payable on any funds borrowed would have to be incorporated into the Town’s operating budget for 2006.

ATTACHMENTS:

2006 Borrowing By-Law

Barb Cribbett, Treasurer

Andy Taylor, Commissioner, Corporate Services

Q:\Finance and Administration\Finance\SHARED\2005 General Committee Finance\0541 temporary borrowing 2006.doc