City maintains borrowing level at $6 million
City of Cranbrook council Jan. 10 approved the 2022 Revenue Anticipation Borrowing Bylaw, which will remain the same as 2021.
Approval provided by council Monday authorizes temporary borrowing up to $6 million to meet corporate cash flow requirements, if necessary, pending receipt of 2022 tax revenues.
This proposed limit is based on the city’s past bank overdraft and temporary borrowing experience and consideration of the major and special projects included in the Five Year Financial Plan, outlined city financial officer Charlene Courtney in a report to council.
“The timing of major capital projects, receipt of interim or debenture financing, and the receipt of grant funding impact our bank account balance. Commencing in 2010, council authorized temporary borrowing up to $6 million. An operating line of credit in the amount of $6 million has been in place with the city’s bank, the Bank of Montreal, since 2010.”