That South Huron Committee of the Whole receive staff report FIN25-2021 titled “Debt Management Policy Decisions”; and
That the Committee recommends to South Huron Council approval of the following debt management decisions to be included in Debt Management Policy:
- Long term debt is defined as financing assets for a period of greater than five years;
- That South Huron will not use long term debt to finance rolling stock(excluding fire trucks) and/or equipment;
- That the Municipality’s maximum debt servicing limit will be 12.5% with the intention of reducing the maximum debt servicing limit to 10% by the year 2030;
- That long term debt will not be incurred for an amount less than $1,000,000.00;
- That the term of debt will not exceed the lesser of (i) the expected useful life of the capital investment and (ii) 30 years;
- That retired debt servicing costs will be allocated to Infrastructure Capital plan for the original funded source. This amount will not reduce the total base capital expenditure for that fiscal year.