Nearly $32 million in debt was paid down by the Town of Bradford West Gwillimbury in 2021.
Council received an overview of the town’s investments during the May 3 meeting, which include both $367,000 in investments through RBC Dominion Securities and the town’s bank accounts with the Bank of Nova Scotia, as set under the Municipal Act and associated regulations.
The total of those investments more than doubled in 2021 from $15 million to approximately $33.6 million. The bulk of the influx was through two debentures issued to the tune of about $46.7 million. With debt repayments of $11.9 million and $20 million, respectively, the town’s cash balance still grew by $18.6 million.
“It is an important piece of fiscal discipline,” said Coun. Jonathan Scott, who lauded staff’s management of the town’s books, allowing the coffers to grow while still taking care of some debt that will soon need to be repaid.
That was the highlight for Deputy Mayor James Leduc, who was excited to see staff's moves help the town get ahead on its EPA 3 repayments, money owed to the development community due in 2025.
“It means our finances are being managed very well and we’re staying ahead of the curve,” Leduc said. “We’re always going to be working hard through good leadership… and continue to work those numbers and continue to finance our debt the way it has to be and make things proper for our residents.”
“We did take out debt as well, but paying down debt is a positive step,” added Mayor Rob Keffer, who also highlighted how the town was able to take advantage of low interest rates with the new debt that was created.
Coun. Peter Dykie echoed the mayor, thanking Director of Finance/Treasurer Ian Goodfellow for being “shrewd” with the town’s money.
“Since he locked us in through a few good moves, as interest rates go up, at least we have some money locked in at affordable rates,” Dykie said. “I give him credit for getting good value for our interest at the right time.”
With an average cash balance of $24.3 million and a total investment income of $254,506, the town’s portfolio saw a weighted average return of 1.05% last year, which staff found to be acceptable.
“Considering the current extraordinarily low interest rates and the fact that the majority of the town’s funds were being held in bank accounts this represents a respectable rate of return,” the staff report stated.
