Town passes 2025 Operating Expenditures Line of Credit Borrowing Bylaw

By John Watson Local Journalism Initiative Reporter

Town of Strathmore council passed all three readings for Bylaw 25-01, being the 2025 Operating Expenditures Line of Credit Borrowing Bylaw, during the Jan. 22 regular meeting. 

This bylaw was recommended by town administration to be passed as a contingency approach to support the town’s existing line of credit. The action required the passing of a bylaw in order to be in compliance with the Municipal Government Act.

The requirement of authorizing a municipality to borrow via a bylaw is listed under Section 251(1) of the Municipal Government Act. This section also applies to operating expenditures for a municipality.

The line of credit would serve to aid in the provision of services to residents, businesses and stakeholders while taxes are being collected until July 1.

Following tax collections, any use of the line of credit would be repaid immediately. Despite the recommendation for approval as a contingency, administration does not anticipate any use of the line of credit will be necessary.

“The town has had an operating line of credit of $770,000 for a number of years. As far as I am aware, we have never had to dip into the line, but it is a contingent response tool in the event that we need to use it,” said Riley Brolly, manager of financial planning, budgeting and reporting with the Town of Strathmore.

“We bring it to (council) right at the start of the year to get this in place in case we need it in an emergency … it lets us respond a little quicker if (or) when needed.”

The financial report provided to council indicated the town has not drawn on its line of credit in more than five years. Additionally, there is no financial impact to the town until such time that the line of credit is required to be drawn upon.

Passing a bylaw authorizing the use of borrowings is an annual occurrence for municipalities which have a line of credit available to them.

Following its approval, town administration is then tasked to arrange for the bylaw to be signed and provided to the Bank of Nova Scotia with the 2025 Line of Credit Bylaw.

Despite being a new bylaw, Section 256(3) of the Municipal Government Act states the bylaw is not required to be advertised if the borrowing term does not exceed three years.

Coun. Brent Wiley motioned for council to approve all three readings for the Operating Expenditures Line of Credit Borrowing Bylaw. Each in turn was carried unanimously without debate.