CALGARY, ALTA. – Calgary City Council has approved bylaw changes supporting the City of Calgary’s new capital debt borrowing option, which allows municipal bonds to be used to fund future capital projects.
The city anticipates it could issue its first municipal bonds by early 2024 “to provide greater value for Calgarians by securing lower interest rates for future capital projects,” a City of Calgary release stated.
“Council has provided us clear direction to be innovative and explore opportunities to create greater value for Calgarians, and the approval demonstrates administration’s commitment to council’s guiding principle of financing our future,” city manager David Duckworth said in the release.
“This new approach will help continue to make Calgary an affordable and desirable place to live. By reducing costs and ensuring efficient financial management, we are investing in the future of our city and its residents.”
It is estimated that over the next 10 years, up to $175 million in interest could be avoided, based on expected borrowing and market conditions.
The approval does not change the amount of capital debt the city is authorized to use nor the processes by which city council authorizes and approves the use of the capital debt currently managed through the city’s existing budgeting processes.
Calgary follows in the footsteps of Toronto, Montreal, Vancouver and Ottawa which already use municipal bonds to fund capital projects.
More information is available about the City of Calgary’s municipal bonds here.