Belleville City Council has approved a Reserve and Reserve Fund Policy.
Several of the city’s reserves are lower than they should be.
Reserve funds help municipalities support long-term financial planning, and plan for the impact and financing of major capital projects.
The Tax Rate Stabilization Reserve Fund, Asset Management Reserve Fund and Sanitary Sewer Reserve Fund are among the funds that are severely underfunded.
After a review of Belleville’s existing reserve funds, staff recommended several changes including three reserve funds requiring a new by-law to formalize establishment, 15 reserve funds requiring by-law amendment to reflect changes to the fund’s purpose and one transfer between two existing reserve funds.
Staff are also recommending that 19 reserves and reserve funds be rescinded with their balances consolidated to other funds.
Staff researched targets set by other municipalities and assessed the city’s funding requirements to establish the targets.
Half of the city’s reserve funds are expected to meet their recommended target by the end of 2024.
And later this year, a comprehensive financial strategy will be provided within the 2024 Asset Management Plan update, which will forecast the necessary reserve fund contributions.
Read the report here.
