Bylaw 12.4 - BYLAW NO. 2177 (Background Report Attached)

EXECUTIVE SUMMARY

Bylaw No. 2177 will give authority to temporarily borrow up to $20 million to cover current expenses until taxes are collected.

The main source of revenue for local government is property taxation. Taxes are levied at the beginning of June and are due on the first business day in July. Expenses on the other hand are incurred throughout the year. This means that municipalities may face a cash flow shortage in the first six months of the year. The Community Charter resolves this issue by giving Council the authority to borrow temporarily and repay any amounts borrowed out of tax collections when they are received.

While the bylaw authorizes up to $20 million in borrowing, only the amount(s) actually required to cover current expenses will be borrowed. Council should be aware; in previous years the City of Langford has not needed to use the borrowing from the Revenue Anticipation Borrowing. At this point it is not anticipated that the City will need to use any of this borrowing capacity as we are in a healthy cash flow position. Having said this, the reason this is before Council is that it is required as part of the City’s banking agreements.

OPTIONS

Option 1
THAT Council give first, second and third reading to Revenue Anticipation Borrowing Bylaw No. 2177, 2024.

OR Option 2
THAT Council not proceed with Bylaw No. 2177

SUBMITTED BY

• Michael Dillabaugh, CPA, CA, Director of Finance

Concurrence:

• Donna Petrie, Senior Manager of Communications & Economic Development
  Concurrence:
• Yari Nielsen, Director of Parks, Recreation and Facilities
  Concurrence:
• Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
  Concurrence:
• Katelyn Balzer, P.Eng., Director of Engineering and Public Works
  Concurrence:
• Marie Watmough, Deputy Director of Corporate Services
  Concurrence: Braden Hutchins, Director of Corporate Services
  Concurrence:
• Darren Kiedyk, Chief Administrative Officer

Attachment:

• DRAFT Bylaw No. 2177

CITY OF LANGFORD

BYLAW NO. 2177

A BYLAW TO PROVIDE FOR THE BORROWING OF MONEY IN ANTICIPATION OF REVENUE.

WHEREAS the municipality may not have sufficient money to meet current lawful expenditures of the municipality before receipt of current year tax revenues;

AND WHEREAS it is provided by Section 177 of the Community Charter, that Council may, by bylaw, provide for the borrowing of money that may be necessary to meet current lawful expenditures;

AND WHEREAS the debt outstanding shall not exceed the total of the unpaid taxes for all purposes imposed during the current year and the money remaining due from other governments.

NOW THEREFORE the Council of the City of Langford, in open meeting assembled, ENACTS AS FOLLOWS:

1. The Council is hereby empowered and authorized to borrow upon the credit of the municipality, an amount or amounts not exceeding the sum of Twenty Million dollars ($20,000,000) as the same may be required and to pay interest thereon at current market rates.

2. All taxes of the current year when levied or so much thereof as may be necessary, shall, when collected, be used to repay the money so borrowed.

3. This Bylaw may be cited as "Revenue Anticipation Borrowing Bylaw No. 2177, 2024".

READ A FIRST TIME this day of April, 2024.

READ A SECOND TIME this day of April, 2024.

READ A THIRD TIME this day of April, 2024.

ADOPTED this day of April, 2024.

MAYOR

(Certified Correct)
CORPORATE OFFICER