The District of Squamish is looking to weave into place a cash safety net.
On Tuesday (Dec. 4), council approved the borrowing of money to meet current lawful expenditures of the district in anticipation of 2013 property tax revenue.
Under the Community Charter, local governments may approve borrowing to meet lawful expenditures or pay amounts required to meet their taxing obligations to another local government or public body. The debt must not exceed the total of the unpaid taxes or money due from other governments. Interest charges are applied to amounts borrowed.
While a revenue anticipation bylaw is adopted every year, the district has not needed to use temporary borrowing to supplement cash flow requirements for many years, a financial services department report stated. Having the bylaw in place provides the legal authorization to borrow should the need arise, the report noted.