BYLAW NO. 2129 - Revenue Anticipation Borrowing Bylaw, 2023

BYLAW NO. 2129 - Revenue Anticipation Borrowing Bylaw, 2023

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Staff Report to Council

DATE: Monday, May 1, 2023
DEPARTMENT: Finance
SUBJECT: Revenue Anticipation Borrowing Bylaw

BACKGROUND and COMMENTARY:

Bylaw No. 2129 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. 2129, 2023.

OR Option 2
THAT Council not proceed with Bylaw No. 2129.

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SUBMITTED BY: Michael Dillabaugh, CPA, CA, Director of Finance
Concurrence:
Donna Petrie, Senior Manager of Business Development and Events
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