The Township of Leeds and the Thousand Islands has passed a by-law authorizing temporary borrowing to manage municipal cash flow needs throughout the year. The new by-law allows the Mayor and Treasurer to borrow funds, as needed, through promissory notes to cover current operating expenses until annual tax revenues are collected.
Under the by-law, the Township may borrow up to $3 million at any one time, including any outstanding amounts from previous borrowing. This measure ensures the municipality can continue delivering essential services without interruption during periods of low cash flow.
The temporary borrowing authority is a standard financial management tool used by municipalities to maintain liquidity and meet short-term financial obligations while awaiting incoming revenues. Council emphasized that the borrowing limit will only be used if necessary and will be managed with fiscal responsibility.
(By: Tim Baltz)
