Town passes operating line of credit bylaw for 2024 operational year

By John Watson Local Journalism Initiative Reporter

The Town of Strathmore council gave third and final reading to its 2024 Operating Line of Credit Bylaw, No. 24-05 during the Jan. 17 regular meeting of council. 

Bylaw 24-05 will serve effectively as a contingency in order to allow the town to continue delivering its regular programs and services to residents, businesses, and key stakeholders while taxes are being collected up until July 1, 2024. 

Once taxes are collected, if the town had been at all required to draw funds from its line of credit, those monies will be paid back immediately. It is anticipated by town administration that use of the town’s line of credit will not be needed. 

“This is a just in case bylaw. One of the reasons we ask (for this to be passed) every year is to ensure that if we ever came into a crunch where we could not meet our cash requirements before our property taxes are due on June 30, we would be able to draw on our line of credit,” said Leana Ashbacher, senior manager of financial services for the town. “The Town of Strathmore has had an operating line of credit for close to a decade, and we have never, ever needed to use it. I believe this is due to our fiscal responsibility on how we spend money, and knowing that our capital projects are normally paid for during the summer months during construction season.”

The proposed recommendation to council was intended to ensure that the town will have the financial means to pay for offering its programs, pay contracts, and deliver services to residents.

Town administration noted they anticipate no changes to the town’s services, programs or operations in regards to the line of credit, prior to the request being passed.

Under Section 251, Subsection 1 of the Municipal Government Act, a municipality may only borrow money if the borrowing is authorized by a borrowing bylaw. This section of the Municipal Government Act applies to operating expenditures of a municipal body. 

“This is a contingency approach to support the town’s existing line of credit, but does require a bylaw to comply with the legislation,” said Ashbacher.

Following her presentation, Ashbacher requested council give all three readings of the bylaw during the Jan. 17 meeting.

Motions made by Coun. Denise Peterson and Coun. Melissa Langmaid for all three readings regarding the bylaw were passed unanimously by council.