Staff Report - Reserve and Surplus Policy and Bylaw No. 959, 960 and 961

TOWN OF VIEW ROYAL COUNCIL REPORT

TO: Council DATE: January 11, 2017 FROM: Michael Dillabaugh, CPA, CA MEETING DATE: January 17, 2017 Director of Finance

Reserve and Surplus Policy and Bylaw No. 959, 960 and 961.

RECOMMENDATION:

THAT COUNCIL give first, second, and third reading to the Reserve Fund for Future Operating Expenditures Bylaw No. 959, 2017;

AND THAT COUNCIL give first, second, and third reading to the Capital Renewal Reserve Fund Bylaw No. 960, 2017;

AND THAT COUNCIL give first, second, and third reading to the Parks Improvement Reserve Fund Bylaw No. 961, 2017;

AND THAT COUNCIL receive the amended Reserve and Surplus Policy for information.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:

I concur with the recommendation.

BACKGROUND DISCUSSION:

At the June 21, 2016 Regular Council meeting the following resolution was approved by Council:

THAT the Committee recommend that Council establish the following three reserve funds: Reserve for Future Expenditures, Capital Renewal Reserve and Parks Improvement Reserve;

AND THAT the Reserve and Surplus Policy be approved with the following amendments:

1. to include reference to the ethical investment of funds; and
2. that unappropriated surplus be transferred into reserves each year rather than remain in unappropriated surplus;

AND FURTHER THAT Appendix A of the Reserve and Surplus Policy be approved with the following amendments:

• that a portion of the Public Safety Building rental suites income be listed as an additional funding source for the Fire Department Machinery and Equipment Depreciation Reserve; and
• that the minimum level of the Special Police Operational Reserve be increased from 10% of RCMP contract expenditures (rounded to nearest 10,000) to 20%.

The purpose of this report is to formalize the establishment of the three reserve funds, see attached, by bylaw and to present to Council the amended Reserve and Surplus Policy.

ATTACHMENTS:

1. DRAFT Reserve Fund for Future Operating Expenditures Bylaw No. 959, 2017
2. DRAFT Capital Renewal Reserve Fund Bylaw No. 960, 2017
3. DRAFT Parks Improvement Reserve Fund Bylaw No. 961, 2017
4. Reserve and Surplus Policy with Appendix A attached.

RECOMMENDATION:

THAT COUNCIL give first, second, and third reading to the Reserve Fund for Future Operating Expenditures Bylaw No. 959, 2017;

AND THAT COUNCIL give first, second, and third reading to the Capital Renewal Reserve Fund Bylaw No. 960, 2017;

AND THAT COUNCIL give first, second, and third reading to the Parks Improvement Reserve Fund Bylaw No. 961, 2017;

AND THAT COUNCIL receive the amended Reserve and Surplus Policy for information.

SUBMITTED BY: M. Dillabaugh, Director of Finance

REVIEWED BY: K. Anema, Chief Administrative Officer