03450-03 Debt Management Policy

Amherst, Nova Scotia

This is the exact embedded text of the captured official document. Snapshot 7cdaf91c3559 · verified 2026-06-05 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

TITLE: DEBT MANAGEMENT POLICY SECTION: FINANCIAL MANAGEMENT POLICY NO: 03450·03 APPROVAL DATE: November 24, 2025 PURPOSE The purpose of the Debt Management Policy is to outline the management methods for long-term borrowings and debt repayment. POLICY STATEMENT The Town will confine long-term borrowings to capital investments or projects that cannot be financed from current revenues. The Town will not use long-term debt to finance current operating expenditures. Considerations will be made before borrowing funds as to the level of existing debt and the impact on current and future operating budgets. When the Town finances capital projects through the issuance of debentures, it will pay back the debentures within a period not to exceed the expected useful life of the project. Total annual payments of principal and interest for long.term borrowings will not exceed 15% percent of the Town's total annual own source generated operatlng revenue. Where possible, the Town may use special assessment or revenues instead of long-term borrowings. The Town will maintain a debt repayment schedule outlining debt principal and interest outstanding for each year. Ensure Debt Management Policy is followed and that debt does not exceed 15%. For Administrative Use Only: VERSION LOG Minutes reference date: November 24, 2025 January 22, 2007