Town of Banff

Debt Limit

What is a debt limit?

A debt limit is the maximum debt that the municipality may issue in a fiscal year.  Debt limits for municipalities are legislated by the province at 1.5% of annual revenue.

What is debt servicing?

Debt Servicing is the maximum amount of principal and interest that the municipality may pay on its debt over the fiscal year.  This amount is also legislated by the provincial government.  It's equivalent to .25 times the Town of Banff’s eligible annual revenue .

Town of Banff 10 Year Debt Limit Analysis

The following is a  10-year projection of debt limit and servicing for the Town of Banff, as of January 1, 2010.

• 10-Year Debt Limit Analysis ( PDF - 47 kb)

Please note:  Items listed under "other possible loans/guarantees" have been factored into the analysis.