Municipal Bonds add additional funding options for future capital projects

 Council approved bylaw changes supporting The City of Calgary’s New Capital Debt Borrowing Option, providing an additional option to fund future capital projects with Municipal Bonds.

The City anticipates it could issue its first Municipal Bond by early 2024, to provide greater value for Calgarians by securing lower interest rates for future capital projects. 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. Reducing City costs helps keep Calgary affordable and enables additional investments in capital infrastructure for Calgarians, local businesses and the community.   

Calgary follows suit with other major Canadian cities, including Toronto, Vancouver, Montreal, and Ottawa, which use Municipal Bonds to fund their capital projects.

“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, says City Manager David Duckworth.”

"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,” notes Duckworth. 

The City's strong financial standing, recognized by global rating agencies DBRS Morningstar and S&P Global, furthers Calgary’s ability to use Municipal Bonds as a feasible option when sourcing capital debt.

The approval does not change the amount of capital debt The City is authorized to use nor the processes by which Council authorizes and approves the use of this capital debt currently managed through The City’s existing budgeting processes.   

The City remains dedicated to responsible fiscal management, striving to finance future capital projects that are cost-effective and meet the needs and desires of Calgarians.

Learn more about The City’s Municipal Bond on calgary.ca/investors. 

-30-