Borrowing bylaw drafted to aid council’s upcoming payments

 | June 17, 2011

A new bylaw was proposed that will allow the Sun Peaks municipality to borrow up to $800,000 on short notice for 2011.

Called the Revenue Anticipation Borrowing Bylaw, it was drafted to help the municipality make upcoming payments prior to taxes being fully collected.
The proposed bylaw has been approved by council to undergo three readings.

The municipality is scheduled to pay $1,132,000 for its first school tax and police tax to the Province on July 11. In addition, a $987,000 regional district payment is due to the Thompson Nicola Regional District on Aug. 1.

Having this bylaw does not necessarily mean that the council will borrow the funds. However, being approved for borrowing gives the council a monetary reserve if needed. The interest rate is less 1.25 per cent at prime.