89(1)Subject to this section and the Municipal Capital Borrowing Act, a municipality may borrow money for municipal purposes.

89(2)A municipality shall not, in any one year, borrow for its current operations any money in excess of the sum represented by four per cent of the budget of that municipality for that year or five thousand dollars, whichever is the greater.

89(3)Subject to subsection (4), a municipality shall not, in any one year, borrow for capital expenditures any money in excess of the sum represented by two per cent of the assessed value of real property in that municipality.

89(4)Subject to subsection (5), where sixty per cent of those voting at a plebiscite held for authority to borrow in excess of the sum mentioned in subsection (3) vote in the affirmative a municipality may borrow the sum authorized by the plebiscite.

89(5)Subject to subsection (6), no municipality may borrow any money for capital expenditures

89(6)The money borrowed under subsections (3) and (5) is deemed to be the net amount of money borrowed.

89(7)For the purposes of this section any money borrowed by a municipality under section 111 or for the construction or renovation of an electric power, water or sanitary sewerage system is not considered as money borrowed.

89(8)The council of a municipality having an audited general fund surplus at the end of a fiscal year shall cause such surplus to be credited to the current fund for the second next ensuing year.

89(9)The council of a municipality having an audited general fund deficit at the end of a fiscal year shall cause such deficit to be debited against the current fund for the second next ensuing year.