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Cape Breton Regional Municipality
Debt Management Policy
1. Purpose
This policy establishes guidelines for responsible debt management to ensure long term
financial stability, support essential municipal services and infrastructure, and maintain
compliance with legislative thresholds related to debt and debt servicing metrics.
2.Objectives
2.1 To promote long term financial stability of the Municipality;
2.2 To provide guidelines for the issuance of debt;
2.3 To define procedures for the repayment of long-term debt;
2.4 To establish measurable guidelines for the management of debt.
3. Definitions
3.1 Debt Service Burden equals the amount of principal and interest that the municipality pays
in each fiscal year on all long-term or short term debt;
3.2 Own Source Revenue-means revenues from property taxes, grants in lieu of taxes, sales of
services, and any other own source revenues as defined in the Municipal Financial Reporting
and Accounting Manual.
4. Policy
4.1 The annual debt service burden shall not exceed 10%of own source revenues;
4.2 The total debt outstanding at the end of any year shall not exceed 1.5%of total uniform
assessment;
4.3 The maximum amortization for debentures shall not exceed the lesser of the useful life of
the financed assets; and twenty-five years.
5. Debt Monitoring&Reporting
5.1 The Chief Financial Officer shall maintain a schedule of all outstanding debt obligations;
5.2 Annual reports shall be provided to Council, or a committee designated by Council, as part of
the annual operating and capital budget process detailing outstanding debt, repayment
schedules, and compliance with debt and debt service burden limits.
6. Policy Review& Updates
6.1 This policy shall be reviewed annually and updated as needed to reflect best practices and
changing financial conditions.
Approved by Council: March 6, 2025