Tuesday, November 20, 2012

Bylaw To Borrow Money Gets Third Reading

City Could Borrow $2,000,000.00

City Council gave third reading to "Revenue Anticipation Borrowing Bylaw 2012 No. 7160" at the council meeting of Nov. 19th.

The staff report says in part that the funds would be used to capitalize on short-term investment opportunities and effectively manage the city's cash reserves. It also authorizes the city to borrow amounts equal to the credit limit on BMO and RBC credit cards.

It is not clear why the city of Nanaimo would have to borrow $2,000,000.00 upon which interest would have to be paid, rather than simply borrowing funds from the massive reserves the city has accumulated over the years.


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