3779 Schedule 'A' - Town of Tillsonburg Reserve Policy - By-Law 3779THE CORPORATION OF THE TOWN OF TILLSON BURG
RESERVE POLICY
APPOVAL DATE: REVISION DATE:
11/25/201 3
APPENDICES: N/A
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BY-LAW No. 3779
OF THE
CORPORATION OF THE TOWN OF TILLSONBURG
A BY-LAW TO ESTABLISH A RESERVE POLICY
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE TOWN OF TILLSONBURG
HEREBY ENACTS AS FOLLOWS:
1.0 DEFINITIONS
In this By-Law:
a) "Reserves" is a provision or amount that is designated for a future purpose that
extends beyond the current fiscal year. Reserves are set up or utilized by resolution.
All related interest earnings are reported as general operating earn ings.
b) "Reserve Fund" shall mean an amount set asid e by a by-law based on a statutory
requirement (obligatory reserve fund) or a specific designated purpose (discretionary
reserve fund). The Development Charges reserve fund, for example, is an obligatory
reserve fund, req uired by legislation that is maintained year over year to help fund
growth related capital projects. Or the Cemetery Maintenance Reserve Fund that is
maintained year over year to fund Cemetery repairs and maintenance expenditures.
Cash placed in a reserve fund earns interest.
2.0 POLICY STATEMENT
2.1 Objectives:
a. To establish reserves as approved by Council for:
i. future capital expenditures;
ii. operating projects or surpluses;
iii. sale of fixed assets or land
iv. unexpected or unplanned events;
v. th e reduction of debt financing;
vi. or any oth er pu rpose that Council designates;
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that would otherwise cause fluctuations in the operating or capital budgets.
b. To establish reserve funds through the adoption of a by-law for:
i. specific purposes as approved by Council.
c. All reserves held in cash will be held in a separate bank account.
3.0 ACCOUNTABILITY
The Director of Finance or his/her designate shall maintain accountability on behalf of Council
relating to the administration of reserves, including the process to transfer to and from
reserves once approved by Council.
Staff provides recommendations on the transfer of funds to and from reserves.
4.0 PRESCRIBED COUNCIL AUTHORITY
a. Establish new reserves;
b. Close existing reserves;
c. Amalgamate reserves;
d. Transfer funds to and from reserves via the approved annual budget;
e. Transfer funds to and from reserves through Council resolution not addressed through
the budget process.
5.0 REPORTING
Projected contributions and uses of reserves are provided as a component on the annual
budget process. Reserve and reserve fund balances are provided as a component of the
annual Town financial statements.
6.0 OTHER
Where any other By-law exists which is in conflict with a provision of this Policy, the provision
of this Policy shall be deemed to apply.
This Policy shall be reviewed and updated,y
date of its enactment. (
~Donna Wilson
DATED
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