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TO: |
Mayor and Members of Council |
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FROM: |
Andy
Taylor, Commissioner, Corporate Services |
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PREPARED BY: |
Barb
Cribbett, Treasurer |
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DATE OF MEETING: |
2003-Nov-17 |
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SUBJECT: |
By-Law
to Authorize Temporary Borrowing |
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RECOMMENDATION:
THAT a by-law be brought forward for Council
approval to authorize the temporary borrowing, if required, of an amount not to
exceed $77,912,739 from January 1, 2004 to September 30, 2004 and $38,956,370
from October 1, 2004 to December 31, 2004 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 2004 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 2004.
ATTACHMENTS:
2004 Borrowing By-Law
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Barb Cribbett, Treasurer |
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Andy Taylor, Commissioner, Corporate Services |
Q:\2003FinAdminCtteeReports\0381
temporary borrowing 2004.doc
