Appendix
Appendix: Reserve and Surplus Policy Appendix A
January 17, 2017Pages 133–1351 section
Table outlining the purpose, funding sources, and target levels for all Town reserve funds and surpluses.
General Operating Surplus target: 3 months of expendituresReserve for Future Expenditures target: 2.5% of revenue
Reserves and Surplus Policy Appendix A
RESERVE FUNDS
| Fund(s) | Purpose | Funding Source(s) | Minimum $ Level | Optimum $ Level |
|---|---|---|---|---|
| Reserve for Future Expenditures | For one-time and intermittent projects, and to offset unrealized revenues | • Annual allocation from general operating budget as provided for in financial plan • Other budgeted contributions from operations including any paybacks as a result of funds advanced for specific projects |
1% of General Operating Fund Revenues | 2.5% of General Operating Fund Revenues |
| Special Police Operating Reserve | For future police operating costs | • Excess traffic fine sharing revenue not utilized within the annual policing operations • Surplus from the policing operational budget |
20% of RCMP contract expenditures rounded to nearest $10,000 | Adequate to fund police funding strategy, including increased costs related to reaching population of 15,000 |
| Capital Works and Land Acquisition Reserve | For new or enhanced infrastructure or equipment (one-time capital) not specifically funded from other established Reserves | • Annual allocation from general operating budget as provided for in financial plan • Casino Funds |
N/A | Adequate to fund all one–time capital projects and new / additional assets identified as capital funded in the long term capital plan |
| Capital Renewal Reserve | For expenditures associated with the rehabilitation, renewal or replacement of existing transportation and storm drain infrastructure | • Annual allocation from general operating budget as provided for in financial plan • Annual allocation of a portion of assessment growth • Casino Funds |
1% of original cost of transportation and storm drain Engineering structures | Minimum 1% of original cost plus forecasted cash flow requirements of the planned long term capital renewal program |
| Park Improvement Reserve | For expenditures associated with park improvements, including playground | • Annual allocation from general operating budget as provided for in financial plan • Casino Funds |
N/A | Forecasted cash flow requirements for park improvements identified in the approved parks master plan and long term capital plan |
| Machinery & Equipment Depreciation Reserve | To replace municipal vehicles and equipment included in the Town’s fleet (excluding Fire) | • Annual allocation from general and sewer operating budgets • Proceeds from the sale of municipal vehicles and equipment |
1% of original cost of machinery & equipment | Minimum 1% of original cost plus forecasted cash flow requirements of the vehicle and equipment replacement plan |
| Fire Department Machinery and Equipment Depreciation Reserve | To replace Fire vehicles and licenced equipment and other equipment such as self contained breathing apparatus | • Annual allocation from general operating budget • Proceeds from the sale of fire vehicles and equipment • A portion of the Public Safety Building rental suites income. |
1% of original cost of Fire vehicles and equipment | Minimum 1% of original cost plus forecasted cash flow requirements of the Fire vehicle and equipment replacement plan |
| Sewerage System Capital Reserve | To fund sewer utility capital projects required for sewer operations or identified in the Sewer Master Plan, and Sewer equipment not included in the Town’s licenced fleet | • Annual allocation from sewer operating budget as provided for in financial plan | 1% of original cost of Sewer Engineering structures | Minimum 1% of original cost plus forecasted cash flow requirements of the planned sewer capital program |
| Police Equipment, Property and Contract Reserve | To fund the Town’s share of the Police building repairs and upgrades, and equipment. | • Annual allocation from general operating budget as provided for in financial plan • share of surplus from the policing building budget |
Adequate to fund 2 years of police capital per 5 year plan | Adequate to fund forecasted cash flow requirements of the planned 5 year Police capital program |
STATUTORY RESERVE FUNDS
| Fund(s) | Purpose | Funding Source(s) | Minimum $ Level | Optimum $ Level |
|---|---|---|---|---|
| Development Cost Charges (DCC) Reserves | Holding account(s) for levies from developers to be used for approved DCC programs/projects. | • DCC collections and credits. | N/A | N/A |
| Parks & Open Space | To purchase parkland as allowed for under the Local Government Act. | • Developer cash contributions as per the requirement under the Local Government Act cash-in-lieu option. | N/A | Adequate balance to fund parkland acquisitions, per the long-term capital plan. |
RESERVE ACCOUNTS
| Fund(s) | Purpose | Funding Source(s) | Minimum $ Level | Optimum $ Level |
|---|---|---|---|---|
| Casino Revenue | Casino funds can be used for any municipal purpose | • Casino Agreement | N/A | N/A |
| Community Works Gas Tax Reserve | To be used pursuant to the Community Works Gas Tax Agreement. | • Federal Community Works Gas Tax funds distributed by the Union of BC Municipalities (UBCM). | N/A | N/A |
UNAPPROPRIATED SURPLUSES
| Fund(s) | Purpose | Funding Source(s) | Minimum $ Level | Optimum $ Level |
|---|---|---|---|---|
| General Operating Surplus | For working capital purposes within the general operating fund and for unforeseen general operating emergency expenditures. | • Any excess general operating fund revenues (including property taxes) over expenditures and transfers at the end of each fiscal year. | Two months of regular general fund operating expenditures | Three months of regular general fund operating expenditures |
| Sewer Operating Surplus | For working capital purposes within the sewer operating fund and for unforeseen sewer operating emergency expenditures. | • Any excess sewer operating fund revenues (including user fees) over expenditures and transfers (including capital transfers) at the end of each fiscal year. | Two months of regular sewer operating expenditures, plus contingency for sewage treatment plant | Four months of regular sewer fund operating expenditures plus contingency for new sewage treatment plant |
Page 133–135
Extracted from: 2017 01 17 Council Agenda - Agenda - Pdf