Review of Reserve Funds and Surplus Staff Report
Report from the Director of Finance seeking recommendations for the establishment of new reserve funds and a surplus policy.
TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE
TO: Committee of the Whole DATE: May 5, 2016 FROM: M. Dillabaugh, Director of Finance MEETING DATE: May 10, 2016
Review of Reserve Funds and Surplus
RECOMMENDATION:
THAT Committee of the Whole recommend that Council establish the following three reserve funds: Reserve for Future Expenditures, Capital Renewal Reserve and Parks Improvement Reserve;
AND THAT Committee of the Whole recommend that Council approve the Reserve and Surplus Policy;
AND THAT Committee of the Whole recommend that Council approve Appendix A of the Reserve and Surplus Policy.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To provide a covering report for the work conducted by Brenda Warner & Asscociates on behalf of the Town.
BACKGROUND:
One of the Town's 2015-2018 Strategic Priorities is Financial Sustainability and Service Excellence. As part of this strategic priority Council identified the need for the completion of a comprehensive asset plan. Part of the process of developing that plan includes the development of a Surplus Policy and a Reserve Funds review. Brenda Warner & Associates was contracted to conduct a review of the Town's Reserves and Surplus, develop a Surplus and Reserve Fund Policy and recommend minimum and optimal balances.
The intent of this report and attached documentation is to provide guidance and recommendations based on a review of best practices and experience of other municipalities.
A Reserve and Surplus Policy will form an integral part of a comprehensive asset plan. It is important to note that the policy can be refined in the future as the comprehensive asset plan is developed.
Attached Documents:
- Executive Summary – Brenda Warner & Associates
- Draft Reserve & Surplus Policy
- Draft Appendix A – Reserve & Surplus Policy
- Target Reserve Fund Levels
- Project Memorandum – Review of Reserve Funds and Surplus – Brenda Warner & Associates.
RECOMMENDATION:
THAT Committee of the Whole recommend that Council establish the following three reserve funds: Reserve for Future Expenditures, Capital Renewal Reserve and Parks Improvement Reserve;
AND THAT Committee of the Whole recommend that Council approve the Reserve and Surplus Policy;
AND THAT Committee of the Whole recommend that Council approve Appendix A of the Reserve and Surplus Policy.
SUBMITTED BY: M. Dillabaugh, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
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