Recorded vote

That Councillor Chabot and Sutherland’s Revised Motion, NM2014-31 be adopted, as follows: WHEREAS audited Municipal Government Act (MGA) debt limit and servicing limits at December 31, 2013 is 56 per cent of its total allowable limit; AND WHEREAS, the City is at or near 80 per cent of its maximum allowable debt servicing as per the MGA; AND WHEREAS Council’s only remaining option to respond to emerging and urgent issues can only be financed by drawing from the fiscal stability reserve; AND WHEREAS the fiscal stability reserve is currently being utilized for a number of different initiatives that could impact our credit rating if drawn down further; AND WHEREAS Council needs to maintain some capacity in its financial ability to respond to emerging and innovative issues; AND WHEREAS Council’s ability to fund infrastructure related to growth is also limited by its current debt servicing limit; AND WHEREAS Council is being fiscally responsibly by paying down debt in such a short time frame which impacts its ability to service any additional debt as we are required to pay down the debt based on contractual loan repayment schedules; AND WHEREAS after 2019, Council debt and debt servicing based on projected borrowing bylaws will be drawn down significantly and our current projected debt servicing for 2020 year-end will be less than 40 per cent of the MGA limit, the debt servicing level is a variable number and will change depending on the 2015-2018 capital and operating budget. NOW THEREFORE BE IT RESOLVED that Council direct Administration to bring forward no later than the 2014 October meeting of Priorities and Finance Committee, a report on potential implications if Council were to temporarily suspend the 80 per cent self-imposed limit on our debt servicing based on our current repayment structure.