Short-term debt refers to municipal borrowing that must be repaid within one year, typically used to manage temporary cash flow needs rather than finance capital projects. Municipalities may borrow short-term when property tax revenues arrive in a few large installments but expenses occur continuously throughout the year. Short-term borrowing bridges these timing gaps. Provincial legislation typically limits how much municipalities can borrow short-term and requires repayment within the fiscal year. Short-term debt instruments include lines of credit, demand loans, or treasury bills. Unlike long-term debentures financing infrastructure over decades, short-term debt addresses operational cash timing without creating lasting obligations.