Milton Town Council approved a recommendation to increase the borrowing limit from Milton Hydro.
This limit will be an increase to $80 million as long as certain conditions are being followed by Milton Hydro including making sure the debt to capital ratio remains at or below 60%.
Milton currently has a borrowing limit of $60 million.
Other conditions recommended by Town staff includes that the current ratio remain above 1.1:1 and that the debt service coverage ratio remains above 1.15:1.
They have also asked that Milton Hydro annually provides the Town’s treasurer with an annual compliance letter or waiver with respect to the covenants.
Town Staff also recommend that the future borrowing of Milton Energy and Generation Solutions Inc remain contingent on the approval of Town Council following the presentation of a business case related to each initiative.
