City of Powell River Council adopted its annual revenue anticipation borrowing bylaw, which authorizes the city to borrow up to $15 million in anticipation of revenue.
At the March 2 city council meeting, councillor Trina Isakson, chair of the finance committee, said this is a bylaw that first came to the finance committee in January. She said it was discussed at the meeting and given the first three readings at city council on February 2.
“This is a bylaw to provide space for borrowing money in the case where we have a gap between when money gets spent and when money comes in,” said Isakson. “This [bylaw] is generally something to reduce risk and historically has not been used by the city, but for example, when taxes come in, in July, we have spending that has already started in January, and so this provides space in the case of cash flow not being caught up.
“Our chief financial officer describes that, looking back at history, of it not having been used. It’s just a risk mitigation bylaw, if needed and when needed.”
The board carried the bylaw unanimously.
According to the bylaw, it is provided by Section 177 of the Community Charter that council may, without the assent of electors or approval of the inspector of municipalities, provide for the borrowing of such sums of money as may be necessary to meet the current lawful expenditures of the municipality.
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