4135 ATT01 Debt Management PolicyTHE CORPORATION OF THE TOWN OF TILLSONBURG
FINANCE & ACCOUNTING POLICY
APPOVAL DATE:
SCHEDULES
POLICY NUMBER:
A. PURPOSE
Debt Management
REVISION DATE:
11/09/2017
5-007
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The purpose of this policy is to provide guidelines for dealing with the management of
debt to ensure that any new borrowings meet the principles established by Council.
B. SCOPE
The Town has three funding sources that comprise the overall debt total;
• Tax supported -Funded through raising taxes;
• User fee supported -Funded through user fees or external sources
-i.e. funding for the pool deck or a vehicle for utility use;
• Operational savings supported -Funded through savings realized by implementing
the project
-i.e LED light replacement
C. GENERAL
Debt levels are to be established for the year during the budget process. These levels
may be addressed by Council should the need arise during the course of the year.
D. POLICY STATEMENT
• The Town's net debt charges will not exceed 75% of the Town's Annual
Repayment Limit for the year in question
• Debt levels for tax-supported projects will reduce year over year
• The Town will make every effort to apply for and obtain funds from senior levels
of Government for capital projects.
THE CORPORATION OF THE TOWN OF TILLSONBURG
FINANCE & ACCOUNTING POLICY
APPOVAL DATE:
SCHEDULES
Debt Management
REVISION DATE:
11/09/2017
POLICY NUMBER: 5 -007
E. AUTHORITY
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The Treasurer is authorized to arrange debt within the parameters described and subject
to the approval of Council.
The Annual Repayment Limit (UNDER ONTARIO REGULATION 403 I 02) repayment
limit has been calculated based on data contained in the Ministry of Municipal Affair's
Financial Information Return. This limit represents the maximum amount which the
municipality had available as of December 31 each year to commit to payments relating
to debt and financial obligation.
Prior to the authorization by Council of a long term debt or financial obligation, this limit
must be adjusted by the Treasurer in the prescribed manner.