4107 To Adopt the Town of Tillsonburg Reserve Policy and to Repeal By-Law 3779THE CORPORATION OF THE TOWN OF TILLSONBURG
BY-LAW NUMBER 4107
BEING A BY-LAW to Adopt the Town of Tillsonburg Reserve Policy and to repeal By -Law 3779
the former Reserve Policy.
WHEREAS Section 270(1) of the Municipal Act, 2001 requires the Municipality to adopt and
maintain policies to ensure that it is accountable to the public for its actions, and the manner in
which the municipality will try to ensure that its actions are transparent to the public.
THEREFORE The Council of The Corporation of The Town of Tillsonburg hereby enact as
follows:
1.0 DEFINITIONS
In this By -Law:
a) "Reserves" are a provision or amount that is designated for a future purpose and are
established by approval of Council and are not restricted by legislation. They can be
related to projects that are of a nature prescribed and managed by approval of
Council. Examples include the Airport Reserve or IT Reserve. Reserves receive an
annual interest allocation.
b) "Reserve Funds" are restricted by municipal by-laws or agreements and receive an
annual interest allocation based on the average annual balance. The Town has two
classifications of Reserve Funds, Obligatory Reserve Funds and Discretionary
Reserve Funds.
c) Obligatory Reserve Funds are restricted by legislation, by-laws or agreements. Some
of the Obligatory Reserve Funds are the Development Charge Fund, the Gas Tax
Fund and the Building Permit Reserve Fund.
d) Discretionary Reserve Funds have been created for a specific purpose by Council.
Examples include Capital Infrastructure Reserve, Parking Reserve and Lake Lisgar
Revitalization
2.0 POLICY STATEMENT
2.1 Objectives
a) To establish reserves as approved by Council for:
i. Future capital expenditures
ii. Operating projects and surpluses
iii. Sale of fixed assets or land
iv. Unexpected or unplanned events
V. The reduction of debt financing
vi. Or any other purpose that Council designates that would otherwise cause
fluctuations in the operating or capital budgets.
b) To establish reserve funds through the adoption of a by-law for 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 and the allocation of interest.
Staff provides recommendations on the transfer of funds.
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
Annually, as part of the budget process, staff will prepare an update on all of the reserve
and reserve funds. Each fund will have a policy statement, source of revenue an expenses,
recommended target levels, the year-end balance and any other pertinent data. The budget
will provide any balances and show a summary of revenues and expenses. In addition, the
balances of the reserve and reserve funds are provided in the Town's audited financial
statements.
6.0 APPROVED RESERVES AND TRUST FUNDS
Schedule A attached lists all of the Reserve Funds, Schedule B the Obligatory Reserve
Funds and Schedule C the list of Trust Funds. These schedules will be reviewed annually
and the schedules modified with new, amalgamated or closed reserves.
7.0 REPEAL FORMER BY-LAW
THAT By -Law 3779, to Adopt the Town of Tillsonburg Reserve Policy, passed on the 91h day
of December 2013, is hereby repealed.
8.0. FORCE AND EFFECT
THAT This By -Law shall come into full force and effect on the day of it's passing.
READ A FIRST AND SECOND TIME THIS 8th DAY OF MAY, 2017.
READ A THIRD AND FINAL TIME AND PASSED THIS $t DAY OF MAY, 2017.
MAYOR- Stephen Molnar
TOWN CLERK — Donna Wilson
Reserve Policy
Schedule A
Airport Reserve
Asset Management Funding Reserve
Cemetery Reserve
Council Reserve
Development Remediation Reserve
Downtown Parking Reserve
Economic Development Reserve
Election Reserve
Engineering Reserve
Facility Infrastructure Reserve
Fire Department Equipment Reserve
Fire Department Labour Reserve
Fleet and Equipment Reserve
IT Equipment Reserve
Linear Infrastructure Reserve
Physician Recruitment Reserve
Police Reserve
Police Services Board Reserve
Recreation Culture and Parks Reserve
Tax Rate Stabilization Reserve
Transit Reserve
Waste Management Reserve
Winter Maintenance Reserve
Obligatory Reserve Policy
Schedule B
Building Fee Reserve
Development Charge Reserves
Gas Tax Rebate Reserve
Trust Fund Policy
Schedule C
Annandale House Trust
Cemetery Maintenance Trust
Cemetery Perpetual Care Trust
Cemetery Prepaid Trust
Community Trust
Lake Lisgar Revitalization Trust
Parkland Trust
Scholarship Trust