TAMRMS#: B06
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Year End Surplus & Reserve Transfers
Presented by: Brenda Barclay, Manager of Financial Operations & Reporting
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RECOMMENDATION(S)
recommendation
That the 2017 Municipal operating surplus of $4,156,507 be transferred as follows:
a) That $1,100,000 be transferred to the Stabilization Reserve to top it up to 2.5% of the annual operating budget;
b) Transfer the remaining balance, of approximately $3,056,507, to the Capital Funding Reserve.
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PURPOSE OF REPORT
The purpose of this report is to finalize the disposition of the 2017 Municipal Year End Surplus.
COUNCIL DIRECTION
N/A
BACKGROUND AND DISCUSSION
The 2017 Municipal operating surplus has been adjusted down slightly from what was presented on February 26, 2018 from $4.1 million to $4.0 million, due to some additional year end adjusting entries.
As per Council Policy C-FS-05 Budget and Taxation Guiding Principles, Council has the following options to allocate the monies: “ In the event of an operating surplus/deficit, funds will applied to/from:
i. Reserves, municipal and/or utility, for use in maintaining reserve levels set by Council policy; or
ii. one-time expenditures; or
iii. repayment of outstanding debt.”
Surplus Recommendations
Administration is providing the following recommendation in relation to the disposition of the 2017 surplus as was described in the Agenda report entitled “Preliminary Year End Recommendations for Surplus” on February 26, 2018.
2017 Operating Surplus $4,156,507
Top up Stabilization Reserve $(1,100,000)
Capital Reserve $(3,056,507)
Balance Remaining $0
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
The establishment and funding of reserves are a financial strategy intended to provide for emergent financial needs, stabilize tax rates, to set aside funds for the replacement of existing equipment, facilities and future projects. While some reserves have dedicated ...
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