City Locks in Low Interest Rate

City Locks in Low Interest Rate for Long-Term Financing
Posted on 01/22/2020
Charlottetown City Council awarded TD Bank the tender for its long-term debt financing. TD Bank is lending the municipality $35 million at a fixed rate of 2.87 per cent over 20 years. The City is refinancing its existing Line of Credit, which has been used for capital expenditures. Some of the funds will go toward capital expenditures in the 2019-2020 and 2020-2021 fiscal years.

“This is good news for the City of Charlottetown in the sense that we secured an excellent rate for the next 20 years, and we are able to reserve money for investment in large infrastructure projects and other unforeseen events at a very good rate, locked in for 20 years,” said Councillor Terry Bernard, Chair of the City’s Finance, Audit and Tendering committee. “While refinancing isn’t a new practice, since we refinance our line of credit every couple of years, we’re really pleased to share this news because we secured a good rate for a longer period of time.”

The Request for Proposals for long-term debt financing was publicly advertised on December 12 and closed for evaluation by the Finance Department on January 10.

The Finance Department and the committee have also been busy preparing for the end of the current fiscal year and the beginning of the new fiscal on April 1, 2020. An open house to gather public feedback will take place on January 28 from 6 p.m. until 7:30 p.m. at City Hall (199 Queen Street) for anyone who would like to review the City’s budget documents, ask questions or make suggestions for the upcoming budget. This event will provide residents with the opportunity to meet with committee members, Council, departmental managers and staff to address any budget-related questions or provide suggestions on what the City might be able to do in its 2020-21 capital and operational budgets.

Comments are also being accepted through email, social media or written submissions.
Feedback can be emailed to mlanigan@charlottetown.ca

Written submissions must be sent to the attention of:
Finance Manager - City of Charlottetown
P.O. Box 98, 199 Queen Street,
Charlottetown, PE C1A 7K2

Feedback can also be drop off at the main floor reception desk at City Hall, 199 Queen Street, with the envelope clearly marked to the attention of the Finance Manager.

Submissions can also be sent on Facebook: www.facebook.com/CityofCharlottetown or by tweeting ideas to @ChtownPE using hashtag #ChtownBudget2020

All comments must be submitted by 12 p.m. (noon) on Friday, February 7.

For more information on the City’s budget, including previous budget addresses, visit: www.charlottetown.ca/budget
Audited financial statements are available at: www.charlottetown.ca/financials

To review the Terms of Reference for each of the City’s standing committees to better understand what areas of the budget are covered by each committee and department, visit: www.charlottetown.ca and click Terms of Reference under the Mayor and Council button.