Short-Term Borrowing Legislation

 
Community Charter (CC)
Local Government Act (LGA)
Hospital District Act (HDA)

Municipal References

Revenue Anticipation – CC Sec. 177

"Money due from other governments" may include grant money from provincial or federal governments, provided that the funding is expected within the year. Typically, these bylaws are adopted at the beginning of each calendar year. The MFA requires borrowings under this section to be repaid upon tax collection/receipt of grant funding. The maximum allowable term is one year. This type of bylaw is not reviewed or approved by the Ministry and does not impact a municipality's liability servicing limit.
 

Short-Term Capital Borrowing – CC Sec. 178

The aggregate, maximum borrowing allowed under this authority is calculated under BC Reg. 368/2003. The regulation states that the amount is obtained by multiplying $50 by the population of the municipality. The population is as of the last census and will be verified by the Ministry. The debt must be repaid 5 years from the date the money is advanced. No public approval is required but approval of the Inspector of Municipalities is required.  The debt servicing cost impacts a municipality's liability servicing limit (as determined by BC Reg. 254/2004). 
 
 
A council that has adopted a loan authorization bylaw under CC Sec. 179, may, by bylaw, temporarily borrow money not exceeding the difference between the total amount authorized by the loan authorization bylaw and the amount already borrowed in relation to that bylaw.  The process for obtaining a loan authorization bylaw can be found in the Long-Term Borrowing section of the website. This type of bylaw is not reviewed or approved by the Ministry. Money borrowed under this section must generally be repaid or transferred to long-term debt within 5 years of the first advance. 
 
 
Under certain circumstances, the MFA makes available short-term loans (maximum 5 year term) under this section.  These loans must be of a capital nature and cannot be transferred to long-term debt. The council must pass a resolution authorizing the debt for the project and specifying the principal repayment terms. This type of borrowing is not reviewed or approved by the Ministry. The debt servicing cost impacts a municipality's liability servicing limit (as determined by BC Reg. 254/2004). 
 
Regional Districts
 
 
"Revenue from all sources" may include grant money from provincial or federal governments, provided that the funding is expected within the year. Typically, these bylaws are adopted at the beginning of each calendar year. The MFA requires borrowings under this section to be repaid upon receipt of requisitions/grant funding. The maximum allowable term is one year. This type of bylaw is not reviewed or approved by the Ministry.
 
 
The aggregate, maximum borrowing allowed under this authority is $50,000, plus the product of $2 by the population of the regional district. The population is as of the last census and will be verified by the Ministry.  Must be  for a purpose of a capital nature related to general administration. The debt must be repaid 5 years from the date the money is advanced. 
 
 
A board that has adopted a loan authorization bylaw may, by bylaw, temporarily borrow money not exceeding the difference between the total amount authorized by the loan authorization bylaw and the amount already borrowed in relation to that bylaw. The process for obtaining a loan authorization bylaw can be found in the Long-Term Borrowing section of the website. This type of bylaw is not reviewed or approved by the Ministry. Money borrowed under this section must generally be repaid or transferred to long-term debt within 5 years of the first advance.
 
 
Under certain circumstances, the MFA makes available short-term loans (maximum 5 year term) under this section. These loans must be of a capital nature and cannot be transferred to debenture or long-term debt. The board must pass a resolution authorizing the debt for the project and specifying the principal repayment terms. This type of borrowing is not reviewed or approved by the Ministry.
 
Regional Hospital Districts
 
 
A board may, by resolution, borrow for purposes other than capital expenditures, by way of temporary loan, sums the board may deem necessary to meet current operating expenditures of the board for the year, including principal and interest falling due within the year on any debt of the board, but all money so borrowed must be repaid within 9 months of the date of the borrowing.
 
 
A board must not borrow or spend money to meet capital expenditures unless the board has enacted a capital bylaw in accordance with section 32. The capital bylaw is to state the net sum required, after the required 1% deduction for the Debt Reserve Fund (DRF). The amount of borrowing required should be grossed up by the DRF deduction, by dividing the required amount by .99.  The capital bylaw is the same bylaw required for both short and long-term debt. 

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