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Debt Refinancing: A Financial Option to Increase Cash Flow

During deliberations of the City’s 2019-2022 budget, a financial strategy used by other Alberta municipalities had come forward. As a result, borrowing bylaw C-1391, has been proposed that has the potential to have a meaningful impact on cash flow, freeing up money for tax relief, operating costs and capital projects. The first reading of this bylaw has been added to the agenda for the Monday, December 17, 2018.

The results of the passing of this bylaw will be:
  1. The consolidation of 19 individual loans the City currently holds with interest rates of 3.9-5.15% into a single debenture with a lower borrowing rate than was originally negotiated.
  2. The consolidated loan will not exceed $53.8M.
  3. Refinancing the consolidated debenture for a 30-year term, and using 30-year terms for all future debt needs. 
  4. This proposal has the opportunity to generate $3.3M in positive cash flow each year for the first 5 years and then on a reducing scale for the following 6 years for an average of $2.9M over 11 years. Funds will be used to increase reserve funds and contribute to the 4.1% tax reduction approved by Council during Budget 2019 deliberations.

Upon the passing of the first reading, the bylaw will proceed to its second and third reading in early 2019. During this time, the public is able to provide feedback by contacting the Citizen Contact Centre via email at

citizencontactcentre@cityofgp.com.

Subject to the passing of Bylaw C-1391, debt consolidation is expected to occur in March 2019.

Read the results of our community survey on this debt refinancing proposal. 

Last updated: 1/15/2019 9:02:46 AM