OLDS — Town council has passed two borrowing bylaws.
One doubles the total amount that can be bought through purchasing cards from $100,000 to $200,000. Another sets the line-of-credit available to the town from ATB Financial at $500,000.
During a Jan. 8 meeting, chief administrative officer Brent Wilson told council town staff currently have about 20 purchasing cards.
Williams said in the past those cards have mostly been used for online expenses and travel. He noted the cost of those expenses alone have “increased quite a bit.”
"Now we’re even finding vendors for larger-scale purchases -- especially outside the province or country -- prefer having credit cards, even if not for direct purchases, then certainly to hold it,” he added.
“So, with an increase to $200,000, that will allow us to strategically increase some of those cards that are used for the larger-scale purchases.
“As right now, we’re finding we do run out of room on the average of $400,000 balance pretty quickly.”
A request for decision (RFD) in council’s agenda package touted advantages of the purchasing card program.
“Purchasing cards have the added benefits of spending visibility, card controls, in-depth reporting, online account reconciliation and protection against fraud and misuse,” it said. “There are no service fees for this program.
“Our purchasing card system is fully electronic. As a result, the proposed increased purchasing power will enhance efficiency by streamlining processes and minimizing the necessity for manual entry and payment of physical invoices for small amounts.”
"I’m sure we can all concur with that in our daily lives that it’s all changed in that world,” mayor Judy Dahl said.
An RFD regarding the line of credit bylaw said ATB Financial asks the town to update its borrowing bylaw every year.
That RFD noted that under the province’s Municipal Government Act, “the amount to be borrowed, together with the unpaid principal of other borrowings made for the purpose of financing operating expenditures, must not exceed the amount the municipality estimates will be raised in taxes in the year the borrowing is made.”
“The line of credit is $500,000 and is there to provide a safety net that can be used if any unforeseen/unexpected or emergent situations should arise, and the town needs some additional bridge financing. To date, the line-of-credit has never been used,” the RFD added.
Both borrowing bylaws passed all three readings in one sitting.
No questions or comments were made regarding the line-of-credit bylaw.
