Governing Legislation, Authorities & Policies
The City’s capital projects are funded by a variety of sources including the issuance of debt.
Debt provides the City with affordable financing and matches the repayment term to the economic useful life of the project.
An Ontario municipality may issue long-term debt only for capital purposes and cannot borrow for operations. The only exception is issuing promissory notes that must be repaid with the current year’s tax levy. Annual contributions to the sinking funds are held in an investment fund for repayment of the original amount of the debt at maturity. The city auditor certifies the sinking fund balance annually. If the balance certified is less than the amount required in the year for the repayment of the sinking fund, the City will pay an amount sufficient to make up the deficiency into the sinking fund.
The City of Toronto is a respected participant in the global capital markets. Adherence to the Financing of Capital Works Policy and Goals maintains the City’s reputation and affords continued efficient and cost-effective access to capital markets.
The City’s debt issuance guidelines and policies are outlined in the following documents: