The Town of Vermilion continues its ongoing efforts to update governance documents by looking at its operating credit.
“During the 2026 budget process, administration did identify some governance documents that required updating,” said Marilyn Lavoie, the town’s director of corporate services.
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Lavoie says the town currently has a bylaw in place to issue borrowing up to $2.5 million to be used for operating expenses.
“This line of credit was set up and was never accessed. It remains at zero dollars today,” she said, noting it’s important the town continues to have an operating line of credit in place.
“Administration is recommending the Town of Vermilion continue to have a revolving operating line of credit. It is common for municipalities to have an operating line of credit in place to provide security and ensure the town can meets its commitments in the event there is not sufficient cash flow.”
As part of the new bylaw, the town is also proposing a limit increase on the town’s credit cards.
“This bylaw is also proposing that the town’s credit card account be changed from $30,000 to $50,000,” said Lavoie.
“The town of vermilion issues corporate cards to managers and directors. These cards are used for transactions such as supply purchases and travel expenses. By using credit cards, vendors can be paid in a timely manner and we can also reduce setting up new vendors for just one-off transactions.”
She also explained some vendors require credit cards to set up accounts.
Coun. Paul Conlon asked what the stop limit is on the town’s credit cards.
“If I put through a transaction on my personal credit card over $10,000, it will be declined and I’ll get a call,” he explained. “I know corporate ones, when I had a business, we’d go much more.”
“We have $50,000 for all credit cards. So, within that $50,000, they’re all individually allocated to the managers and members of the ELT (executive leadership team) and myself under that $50K umbrella,” explained Shannon Harrower, CAO.
“In accordance with our policy, in terms of purchasing and procurement that we’ve past earlier this year, all the thresholds are under that policy.”
Lavoie says they are in the process of developing a policy specifically for credit card use.
“We are going to be developing a corporate credit card policy because there isn’t one in place that really governs and outlines who gets cards and what their limits are,” she said. “It can include certain rules around non-compliance, they use that privilege, things like that.”
Administration was asked why the limit was being raised.
“When there is travel that includes a large group, we are getting very close. For the last conference, we found ourselves doing multiple payments right before and during that week just to make sure we were going to be OK,” said Lavoie.
Harrower explained there’s been situations where the credit card has been declined, requiring personal card use to finish the payment.
“When we do get close to that limit, I have had my card declined on several occasions now and I’ve had to pay out of pocket and then process a reimbursement through the town,” she said. “To alleviate those types of claims, especially for our staff members who may not be otherwise able to afford to front a very expensive hotel stay or whatever the case is, if they’re attending professional development, it would give us greater flexibility to account for those circumstances.”
Mayor Robert Snow applauded administration for their efforts.
“I think you guys did a lot of good work in looking at the practical needs of our credit and how we actually apply it and use it,” he said.
Council gave first reading to the bylaw with it returning at a future council meeting.
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