Lacombe County councillors approved a borrowing bylaw for 2026, a bylaw most municipalities keep in place as a safeguard. The decision was made at the Jan. 8 regular meeting of council.

Councillors read a staff report describing the borrowing bylaw and why it was a good idea to have it in place.

“From time to time and primarily because of investment maturity dates and the timing of major project/purchases expenditures, Lacombe County undertakes short-term borrowing from its line of credit with (the approved banking partner),” stated

“Pursuant to Section 251(1) of the Municipal Government Act (MGA), a municipality may only make a borrowing if the borrowing is authorized by a borrowing bylaw. The county’s financial services provider requires the county to maintain a current temporary/line of credit borrowing bylaw.”

The staff report noted Lacombe County attempts to minimize short-term borrowing. “In past years, the amount of overdraft has ranged from zero dollars to $100,000 at any time throughout the year,” stated the staff report.

“The last time it was used was in 2023 when the county incurred $2,500 in interest costs. The county has avoided overdraft situations as the county keeps a large cash balance in its primary chequing account.

“This account earns a competitive savings interest rate allowing the county to maintain these balances.

“Under section 256 of the MGA, a municipality may not borrow, for the purposes of financing operating expenditures, more than the amount levied in taxes for a particular year. For 2026, this estimate is $59,062,560. The borrowing under this bylaw is $15,000,000.

“This borrowing bylaw would also authorize the county’s credit cards, which are another form of debt, albeit a revolving line of credit.

“Although there is no statutory requirement to replace this bylaw, the county’s financial institution does seek to have it reviewed on a regular basis. Typically, this review is on a two-year rotation though the current bylaw is two and a half years old.”

During discussion staff noted the proposed bylaw was identical to the existing one. There was no debate.

Councillors unanimously passed all readings required to approve the bylaw.