Council adopts Reserves and Surplus Policy
City of Cranbrook council July 13 approved Reserves and Surplus Policy No. 40-50.
The primary objective of the Reserves and Surplus Policy is to ensure the financial sustainability of the city.
Financial sustainability is the municipality’s ability to manage its finances so it can meet its spending commitments, both now and in the future, while ensuring that the cost burden is spread equitably amongst all generations, a city finance department report noted.
“Reserve funds are important long-term financial planning tools for municipalities and are used to set aside funds for a future purpose. The city does have long-standing principles; traditions and practices that have guided the city in its financial planning in the past. The Reserves and Surplus Policy will provide a formal framework and guidelines to support and add structure to the city’s financial planning activities. In addition, the policy will direct the allocation of any surplus funds into various reserves based on prioritization within the pool of reserves,” the finance report explained.