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Bylaws assure proper cash flow

At its regular council meeting Nov. 27, Town of Peace River council passed bylaws to ensure adequate cash flow would be maintained for daily operations.

Council passed two bylaws, extensions of bylaws that were already in place, to ensure that a $6 million credit line and a MasterCard could be retained by the Town to make necessary purchases.

“The $6M line of credit is used for purchases of various amounts when other ready cash is not available or not enough is available such as times where work has to be completed and paid for in installments as some of the work is completed but a grant amount is not available from the Province until the entire project is complete,” explains Mayor Elaine Maner.

“So, there are timely differences between when the Town needs to pay invoices and when the money has been deposited for certain projects that are partly grant funded,” she adds.

Manzer says the bylaw is simply to meet requirements of revolving lines of credit at their financial institution that must be passed annually.

“This is a normal practice,” says Manzer. “Several projects can be in progress at the same time, each having hundreds of thousands of dollars due at various times over the course of the projects. Funds are used for a variety of project payments when other cash is not available.”

The MasterCard is a tool used by the Town when there are things to purchase online, for online booking, and to facilitate purchases where purchase orders aren’t accepted.

“The Town uses a credit card to readily pay for items that various Town employees and departments buy,” says Manzer.

“This can include things like registrations for courses and hotel rooms as hotels do not usually want to be invoiced later. Various supplies can usually be paid for with a credit card where certain Town employees are authorized to use for Town business.”

Both bylaws will help facilitate transactions in an expedited fashion.

Emily Plihal Local Journalism Initiative Reporter - South Peace News - southpeacenews.com

Emily Plihal, Local Journalism Initiative Reporter, South Peace News