Reserves and Reserve Funds Policy

Amherstburg, Ontario · adopted 2025-12-15

This is the exact embedded text of the captured official document. Snapshot cfbbff1d3c01 · verified 2026-06-10 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

POLICY Policy: Reserves and Reserve Funds Department: Corporate Services Division: Financial Services By-Law No.: N/A Administered By: Treasurer Approval Date: Dec. 15, 2025 Replaces: Reserve and Restricted Funds - February 1, 2016 Tax Stabilization Reserve - February 1, 2016 Attachment(s): Appendix A - reserve and Reserve Fund Schedule _______________________________________________________________________________________________________________________________________ Page 1 of 15 1. POLICY STATEMENT The Corporation of the Town of Amherstburg is committed to the management and administration of Reserves and Reserve Funds. 2. PURPOSE 2.1. This policy establishes consistent principles, standards and guidelines for the maintenance, management and accounting of Reserves and Reserve Funds. 2.2. This policy outlines how the Town's Reserves and Reserve Funds are created, amended, closed, and reviewed. 3. SCOPE 3.1. This policy applies to all Reserves and Reserve Funds administered by Town of Amherstburg. 3.2. This policy applies to all Town Employees who are responsible for the establishment, monitoring, administration, and management of the Town's Reserves and Reserve Funds. 3.3. This policy shall be reviewed every five (5) years from the date it becomes effective, and/or sooner at the discretion of the CAO or designate. 4. DEFINITIONS 4.1. Reserves refers to monies set aside through allocation by Council (i.e. annual budget process) for operational purposes and which are not restricted by legislation. 4.2. Reserve Funds refers to funds that have been set aside for a specific purpose (i.e. Capital and project based) as required by provincial statutes, Town by-laws, or agreements. Reserve Funds can be either discretionary (set by Council) or obligatory (set by statute or agreement). 4.3. Discretionary Reserves/Reserve Funds are created by Council to set aside revenue to finance a future expenditure for which Council has the authority to spend money. Discretionary Reserve Funds are often established by by-law or Council resolution. Discretionary Reserves are often established by allocation in base budget and of surplus monies at year end. Discretionary Reserves and Reserve Funds are shown as part of accumulated surplus on the Town's annual audited Financial Statements. Examples include but are not limited to: Replaces: Reserve and Restricted Funds February 1, 2016 and Tax Stabilization Reserve February 1, 2016 _______________________________________________________________________________________________________________________________________ Page 2 of 15 4.3.1. Capital Reserve Funds 4.3.2. Tax Stabilization Reserve Funds 4.4. Obligatory Reserve Funds are created when a provincial statute or agreement requires that revenue received for specific purposes is segregated from the general revenues of the Town. Obligatory Reserve Funds are to be used solely for the purpose prescribed for them by statute or agreement and are shown as deferred revenue on the Town's annual audited Financial Statements and Financial Information Return. Examples include but are not limited to: 4.4.1. All Development Charges Reserve Funds regulated by the Development Charges Act, 1997 4.4.2. Canada Community-Building Fund (previously Gas Tax) regulated by a Municipal Funding Agreement with The Association of Municipalities Ontario Common definitions, acronyms, and terms are available in the Glossary located on the Town's Policies webpage. 5. INTERPRETATIONS Any reference in this policy to any statute or any section of a statute shall, unless expressly stated, be deemed to be reference to the statute as amended, restated or re-enacted from time to time. Any references to a by-law or Town policy shall be deemed to be a reference to the most recent passed policy or by-law and any replacements thereto. 6. GENERAL CONDITIONS 6.1. Reserves and Reserve Funds are established for a variety of purposes including: 6.1.1. Adherence to statutory requirements 6.1.2. Promotion of financial stability and flexibility 6.1.3. Provision of major capital expenditures 6.1.4. Provision of life cycle replacement of capital assets 6.1.5. Reducing tax rate impacts and rate supported debt 6.1.6. Absorb the cost of one-time expenses not included in the operating budget 6.1.7. Smooth expenditures which would otherwise cause fluctuations in the operating budget 6.1.8. Funding known future obligations. 6.2. Establishment and Modification 6.2.1. Reserve Funds can be established through the following processes: _______________________________________________________________________________________________________________________________________ Page 3 of 15 6.2.1.1. Inclusion in the annual operating or capital budget which is approved by Council; or, 6.2.1.2. Through resolution of Council. 6.2.2. In order to establish a new Reserve Fund, a financial plan will be prepared which outlines the following where applicable and practicable: 6.2.2.1. Need or justification 6.2.2.2. Target funding level (if applicable) 6.2.2.3. Funding source(s) 6.2.2.4. Projected disbursements for planned future obligations 6.2.3. Reserves may be established where a situation arises that requires funds be set aside on an interim basis to address a future need. The funds can be segregated in a Reserve until such time that the eligible expenditures are approved and included in the Town's budget. 6.2.4. Prior to establishing a new Reserve or Reserve Fund, it is recommended that a review of existing Reserve or Reserve Funds be completed to determine if the needs identified can be accommodated by an existing Reserve or Reserve Fund. 6.2.5. Changing of Reserve and Reserve Fund names can be made with the approval of the Treasurer while ensuring the purpose and intended use of the Reserve or Reserve Fund is not changed. 6.3. Investment 6.3.1. Reserves and Reserve Funds may be invested for a term not exceeding its expected date of need. 6.3.2. Investments shall be governed by the Town's Investment Policy, applicable legislation, and funding agreements as they relate to the Reserve and/or Reserve Fund. 6.3.3. Investment and/or interest earned on Reserves and Reserve Funds shall be recognized in accordance PSAB 3150 Standards and the Investment policy. 6.3.4. If the balances of the reserve and Reserve Funds are at the maximum target, the interest may be allocated as per the recommendations of the Treasurer. 6.4. Contributions and Withdrawals 6.4.1. All contributions to and withdrawals from Reserves and Reserve Funds shall be established as part of the annual budget or specifically by Council resolution with the following exceptions: _______________________________________________________________________________________________________________________________________ Page 4 of 15 6.4.1.1. Direct contribution of anticipated revenues to Reserves and Reserve Funds, such as Development Charges, or settlement in account of prior year events; 6.4.1.2. Transfers of funds between Reserves and Reserve Funds which, in the opinion of the Treasurer, have not changed the purpose for which the funds were intended; or, 6.4.1.3. Transfer of funds between asset replacement reserves based upon reserve adequacy analyses or other related information, at the discretion of the Treasurer. 6.4.1.4. Transfers to and from Reserves and Reserve Funds within the Treasurers authority, as outlined in Appendix A; and, 6.4.1.5. Transfers designated as investment, and in compliance with the Investment policy. 6.5. Lending/Temporary Borrowing 6.5.1. Temporary borrowing to cover a short-term deficit, interim servicing requirements, or internal financing is permitted under the following conditions: 6.5.1.1. Use must be justified, adequately supported, and authorized by the Treasurer; 6.5.1.2. Lending must not adversely affect the intended purpose of the Reserve or Reserve Fund; and 6.5.1.3. Must be done in compliance with any legal and legislative requirements. 6.5.2. External loans shall be governed by the Town's Loans and Borrowing policy. 6.5.3. A documented plan to repay the Reserve or Reserve Fund within a reasonable timeframe is required. 6.5.4. All lending/temporary borrowing shall be provided from eligible Reserve and Reserve Fund balances. 6.6. Closing 6.6.1. A Reserve and/or Reserve Fund shall be closed when the program or project it supports meets any of the following criteria: 6.6.1.1. No longer in the scope of the Town's strategic plans; 6.6.1.2. Program commitments have been completed and no future commitments are expected; 6.6.1.3. The Treasurer is confident that balances in other areas can mitigate the need to hold any remaining Reserve or Reserve Fund balance; or _______________________________________________________________________________________________________________________________________ Page 5 of 15 6.6.1.4. Changes in legislation require the closing of a Reserve or Reserve Fund. 6.6.2. A Council resolution is required to close a Reserve or Reserve fund, unless it is legislatively required. The Treasurer shall report to Council with the recommendation on: 6.6.2.1. The closure of the Reserve or Reserve Fund; 6.6.2.2. The disposition of any remaining funds; and, 6.6.2.3. The necessary amendment to the Reserve and Reserve Fund by-law. 6.7. Reporting 6.7.1. The status of the Town's Reserves and Reserve Funds will be communicated to Council through the following reports: 6.7.1.1. The Town's annual audited Financial Statements and provincially mandated Financial Information Return; 6.7.1.2. The Town's annual budget; 6.7.1.3. Provincial reporting requirements, including, but not limited to, an annual Development Charge Reserve Fund Statement, and an annual Parkland Dedication Reserve Fund Statement; and, 6.7.1.4. Any other reports as required by this policy. 7. RESPONSIBILITIES 7.1. Council has the authority and responsibility to: 7.1.1. Adopt the Reserves and Reserve Funds policy. 7.1.2. Approve the establishment, closure, consolidation, and transfer of funds to and from Reserves and Reserve Funds through the annual budget process or by specific resolution and by-laws. 7.2. The CAO has the authority and responsibility to: 7.2.1. Support the Treasurer in ensuring the principles and mandatory requirements contained in this policy are applied consistently across all Town departments. 7.3. The Treasurer has the authority and responsibility to: 7.3.1. Determine the need for Reserves and Reserve Funds for the Town's operating and capital budgets. 7.3.2. Determine and monitor target balances for Reserves and Reserve Funds. 7.3.3. Recommend establishing, closing, and consolidating of Reserves and Reserve Funds. 7.3.4. Review and report to Council on the adequacy of Reserves and Reserve Funds. 7.3.5. Recommend transfers of funds to and from Reserves and Reserve Funds. _______________________________________________________________________________________________________________________________________ Page 6 of 15 7.3.6. Manage the Reserves and Reserve funds in accordance with legislative requirements and applicable Town policies. 7.4. Directors have the authority and responsibility to: 7.4.1. Undertake asset management principles to ensure the most current capital asset information is being used to forecast renewal and lifecycle costs. 7.4.2. Collaborate with the Treasurer to assess the adequacy of Reserves and Reserve Funds 7.4.3. Inform the Treasurer when Reserve and Reserve Fund transfers are required. 8. LEGISLATIVE REFERENCES 8.1. Development Charges Act, 1997 ____________________________________________________________________________________________________________________________________________________________________________________ Page 7 of 15 APPENDIX A - RESERVE AND RESERVE FUND SCHEDULE Name Purpose Target Balance Funding Source Designated Use Authority/Timing Tax Supported Reserves AODA Compliance To assist with meeting Accessibility for Ontarians with Disabilities Act (AODA) requirements. No established maximum or minimum. Clerks Operating budget. To fund improvements to Town infrastructure in alignment with AODA requirements. Council approved through Capital budget, Operating budget, or other in- year Council reports. Consultation may be sought with the Accessibility Advisory Committee. Contingency To provide cash flow, working capital, sufficient liquidity, offset one-time, unforeseen expenditures or revenue shortfalls. Minimum of three (3) months Operating expenses. Maximum of six (6) months Operating expenses. Operating budget and approved year end surplus allocations. To offset budget deficits arising from one-time, unexpected expenditures or revenue shortfalls. Council approved through annual Operating budget or other in-year Council reports. Community Improvement Plan (CIP) To fund Council approved grants in accordance with the Community Improvement Plan. No established maximum or minimum. Council approved year end surplus allocation or as approved in Operating budget. To offset financial incentives associated with the approved Community Improvement Plan, in accordance with the Planning Act, 1990. Funds released upon receipt of a valid CIP application. Elections To amortize the cost of a municipal election over four years, rather than funding the entire amount in the year of the election. Prior election cost total plus accumulated annual inflation to be achieved by next election year and Clerks Operating budget. Funds transferred out every four years to fund the cost of running a municipal election. To fund the cost of running a by-election. Council approved through Capital budget, Operating budget, or in-year election reports. Prior election cost total plus accumulated annual inflation to be achieved by next election year and accounting for additional costs of alternative voting methods / technology requirements. ____________________________________________________________________________________________________________________________________________________________________________________ Page 8 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing accounting for additional costs of alterative voting methods/techn ology requirement. Employee Related To manage Operating budget variances relating to employee benefits and compensation costs, as per contractual obligations. To fund the provision of Short-Term Disability benefits. No established maximum or minimum. Minimum for Short-Term Disability benefits shall be determined by third party consultation. Human Resources Operating budget. To offset budget deficits arising from compensation related costs including Short Term Disability Severance, Employee Assistance Program (EAP), Arbitration related costs, Regulatory audit decisions, Joint Job Evaluation Committee, Pay Equity or any other unforeseen one-time compensation related expenditures. Council approved transfers at budget are estimates. Actual transfers will reflect real experience and authorized by the CAO and Treasurer. Insurance Manage operating budget variances relating to insurance claims, insurance deductible costs, and other costs not recoverable through insurance. To complete associated actuarial studies and other risk retention activities. Minimum of $200,000. This is represented by a calculation of 25% of the 5- year rolling average of Insurance Deductibles and Adjustor Fees and estimated funds required to complete an actuarial study. Clerks Operating budget and particular Clerk's revenue. To fund under-deducted insurance claim costs and significant premium fluctuations on renewals. Deductible payable in year based on claims management. CAO, Treasurer, and Clerk/Risk Manager approved transfers in-year in accordance with the pre-approved purpose. ____________________________________________________________________________________________________________________________________________________________________________________ Page 9 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing Litigation To address settlement of litigation and pending litigation. Minimum of $250,000. Clerks Operating budget. To fund pending litigation settlement. CAO and Clerk/Risk Manager approved transfers in-year in accordance with the Delegation of Authority policy. Transfers exceeding $50,000 require Council approval though In-Camera reports. Planning Study To fund the cost of Planning Division and Planning Act-related studies. Based on projected future costs of planning study requirements. Planning Operating Budget To fund the cost of conducting update studies including, but not limited to, secondary studies, zoning studies, official plan studies, special planning studies, and any others under the Planning Act, 1997. Council approved through Operating budget, Capital budget or other in- year Council reports. Plans and Studies To fund the cost of conducting plans and studies. Based on projected future costs of municipal study requirements. Operating Budget To fund the cost of conducting plans and studies, with the exception of those listed under the Planning Study Reserve. Council approved through Operating budget, Capital budget or other in- year Council reports. Post Retirement Benefits To fund post retirement benefits to eligible recipients. No established maximum or minimum. Employee payroll and Operating budget. Replacement of retiree benefit program and refund of contributions to ineligible contributors. Council approved transfers at budget are estimates. Actual transfers will reflect real experience and authorized by the CAO and Treasurer. Tax Stabilization Provide for unexpected property assessment changes and related tax Minimum balance of 5% of the Town's Tax-supported Operating budget surplus and Fund shortfall in property tax revenues, such as in- Council approved through Operating Provide for unexpected property assessment changes and related tax adjustments during the year. Contingency fund for operational emergencies, urgent or contingency capital expenditures, and Minimum balance of 5% of the Towns gross tax revenue. Maximum of 15% of the Town's gross tax revenue. Tax-supported Operating budget surplus and investment incomes earned on the Tax Stabilization Reserve. Fund shortfall in property tax revenues, such as in-year assessment changes and appeal impacts. Investment income from the reserve would be used to fund one-time operating budget expenditures. Council approved through Operating budget or other in-year Council reports. ____________________________________________________________________________________________________________________________________________________________________________________ Page 10 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing adjustments during the year. Contingency fund for operational emergencies, urgent or contingency capital expenditures, and to compensate for unplanned revenue reductions with significant financial impacts. gross tax revenue. Maximum of 15% of the Town's gross tax revenue. investment incomes earned on the Tax Stabilization Reserve. year assessment changes and appeal impacts. Investment income from the reserve would be used to fund one-time operating budget expenditures. budget, or other in- year Council reports. Winter Control Provide for unexpected operating costs related to extreme winter weather conditions. 50% of 5-year average winter control costs. Public Works Operating budget. To fund winter control operations in unusually heavy snowfall and ice years. Council approved through Capital Budget, Operating Budget, or other in- year Council reports. Non-Tax Supported Reserves Developer Deposits To ensure the conditions of approved planning applications have been satisfied within the required timeline. No established maximum or minimum. Deposit paid by Developers in conjunction with planning application. Fees are in accordance with the User Fee By-law 2025-055, and may vary based on the application type. Funds held in trust until all conditions of the application have been met. Treasurer approved in-year transfers to authorize release of funds back to Developers upon the agreement being satisfied, in consultation with the Planning Division. Economic Development To support economic development initiatives. No established maximum or minimum. Digital Gateway Sign revenue and user fees in accordance with the User Fee By-law 2025-055. Funds transferred out to support economic development initiatives as directed by Council. Council approved through annual Operating Budget or other in-year Council reports. Tree Planting Development fees collected to fund tree planting in the municipal right of way in new No established maximum or minimum. Deposit paid by Developers in conjunction with planning application. Fees are in To fund tree planting in the municipal right of way in new subdivisions and developments, other tree Director of Infrastructure / Director of Parks, Recreation, and Facilities approved Provide for unexpected operating costs related to extreme winter weather conditions. 50% of 5-year average winter control costs. Public Works Operating budget.To fund winter control operations in unusually heavy snowfall and ice years. Council approved through Capital Budget, Operating Budget, or other in- year Council reports. Development fees collected to fund tree planting in the municipal right of way in new subdivisions/developments. Deposit paid by Developers in conjunction with planning application. Fees are in accordance with the User Fee By-law 2025-055 and may vary based on the application type. To fund tree planting in the municipal right of way in new subdivisions and developments, other tree plating initiatives and tree canopy studies. Director of Infrastructure / Director of Parks, Recreation, and Facilities approved transfers in-year in accordance with the Development Manual and Development Agreements. For expenditures exceeding $50,000 seek Council approval. ____________________________________________________________________________________________________________________________________________________________________________________ Page 11 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing subdivisions/developmen ts accordance with the User Fee By-law 2025-055, and may vary based on the application type. planting initiatives, and tree canopy studies. transfers in-year in accordance with the Development Manual and Development Agreements. For expenditures exceeding $50,000 seek Council approval. Tax-Supported Reserve Funds Amherstburg Library To assist in financing the cost of construction or acquisition of a Library property. No established maximum or minimum. As directed by Council. To assist in financing the cost of construction or acquisition of a Library property. As recommended by the Library Board and approved by Council through the Capital budget. Co-An Park Capital To provide funds for the replacement and rehabilitation of the infrastructure in Co-An Parks, in alignment with the Co-An Park agreement and Parks Master Plan. Based on the approved AMP Funding Level Parks Operating budget. To fund initiatives that support Co-An Park infrastructure and life cycle replacement, in alignment with the Parks Master Plan. As approved by Council through the Operating budget, Capital budget, or other in-year Council reports and in consultation with the Co-An Park Committee. Fire To fund Fire Department expenditures. Based on the approved AMP Funding Level. Fire Operating budget. To fund the replacement, rehabilitation, and acquisition of Fire Department needs including, but not limited to, PPE and equipment. Council approved through Capital budget, Operating budget, or other in- year Council reports. Fleet To provide for acquisition of fleet replacement. Based on the approved AMP Funding Level. Applicable Operating budgets. To fund the replacement, rehabilitation, and acquisition of Town vehicles. Council approved through Capital budget, Operating budget, or other in- year Council reports. Purpose Funding Source Designated Use Authority/Timing ____________________________________________________________________________________________________________________________________________________________________________________ Page 12 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing General To provide funds for the replacement and rehabilitation of the Town's infrastructure, related to the Town's Asset Management Plan (AMP). Based on the approved AMP Funding Level. Operating and Capital budgets. To replace or renew existing Town infrastructure, as outlined in the Town's AMP. Excludes Water and Wastewater infrastructure. Council approved through Capital Budget, Operating Budget, or other in- year Council reports. Information Technology Provide for cyclical and one-time acquisitions of software to maintain or enhance municipal operations and customer service. Based on the approved AMP Funding Level. IT Operating budget. To fund replacement, upgrades, and acquisition of software and hardware. Council approved through Capital budget, Operating budget, or other in- year Council reports. Libro To provide funding for the replacement, rehabilitation, and acquisition of Libro infrastructure. Based on the approved AMP Funding Level. Libro Operating budget and User Fees in accordance with the User Fee By-law 2025-055. To fund the replacement or renewal of existing Libro infrastructure and the acquisition of new Libro assets. Council approved through Capital budget, Operating budget, or other in- year Council reports. Municipal Drain To assist with the Town's portion of drainage costs as a landowner on a municipal drain. No established maximum as based on projected drainage projects apportioned to the Town. Drainage Operating budget. To fund municipal drainage works when the Town is assessed as a landowner. Treasurer approved transfers in-year in accordance with the Drainage Act, 1990. New Capital To fund additions to current level of service or new infrastructure. Based on strategic initiatives as determined by Council. Operating budget To fund the cost of construction or acquisition of new Capital assets. Council approved through Capital budget or other in- year Council reports. Parks To fund the cost of new or replacement of existing Park assets. Based on the approved AMP Funding Level. Parks Operating Budget. To fund the cost of new or replacement of existing Park assets. Council approved through Capital budget or other in- year Council reports. ____________________________________________________________________________________________________________________________________________________________________________________ Page 13 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing Police Provide for unexpected or one-time costs related to the provision of Police Services To assist in financing the cost of acquisition of Police assets. Based on Council directive of police service needs. Based on life cycle replacement for police assets. Police Services Operating Budget To fund one-time or unexpected Police Service operating expenditures. To fund life cycle replacement of Police assets. Council approved through annual Operating budget or other in-year Council reports. Non-Tax Supported Reserve Funds Building Capital To fund capital expenditures with the Building Division. No established maximum or minimum. Building operating budget surplus. To fund capital purchases for Building Code Act, 1992 enforcement activities. Treasurer approved in-year transfers as authorized by the Building Code Act, 1992. Brick Fund To fund the replacement and rehabilitation of commemorative bricks. No established maximum or minimum. Funds transferred in from private donations. Funds restricted and may only be used for the replacement and maintenance of commemorative bricks. Treasurer approved in-year transfers in accordance with the terms and conditions of the agreement. Commemorative Program To fund the acquisition and replacement of commemorative benches. No established maximum or minimum. Funds transferred in from private donations or bequests. Funds restricted and may only be used for the purchase and replacement of commemorative benches. Treasurer approved in-year transfers in accordance with the terms and conditions of the agreement. Donations To fund fulfill charitable donation agreements as per the Charitable Donations policy. No established maximum or minimum. Funds transferred in from private donations or bequests. Funds restricted based on the conditions of the bequest/donation agreement and may only be used for their sole intended purpose. Treasurer approved in-year transfers in accordance with the terms and conditions of the agreement. Council approved through Operating Budget or other in- year Council reports for joint ventures, Treasurer approved in-year transfers in accordance with the terms and conditions of the agreement. Council approved through Operating Budget or other in- year Council reports for joint ventures, per the Charitable Donations policy. ____________________________________________________________________________________________________________________________________________________________________________________ Page 14 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing per the Charitable Donations policy. Ranta Memorial Park Bequest To fund the cost of new or replacement of existing Ranta Memorial Park assets. No established maximum or minimum. Funds transferred in from one-time bequest. Funds restricted and may only be used for the replacement and rehabilitation of Ranta Memorial Park assets. Council approved through Capital Budget or other in- year Council reports. Water Capital To assist in financing the Capital program for Water. Based on the Water/Wastew ater Rate Study. Water Operating budget. Funds the replacement and rehabilitation of existing water infrastructure. Council approved through Capital Budget or other in- year Council reports. Wastewater Capital To assist in financing the Capital program for Wastewater. Based on the Water/Wastew ater Rate Study. Wastewater Operating budget Funds the replacement and rehabilitation of existing wastewater infrastructure. Council approved through Capital Budget or other in- year Council reports. Non-Tax Supported Obligatory Reserve Funds Building Service Operations To mitigate fluctuations in the building permits fees. Maximum of two (2) years Operating expenses. Building operating budget surplus. Funds used to offset operating deficits within the Building Division, as outlined in the Building Code Act, 1992. Treasurer approved in-year transfers as authorized by the Building Code Act, 1992. Cash-in Lieu of Parking Provides for the payment of cash-in-lieu of conveyance of parking for areas permitted within the Town's Zoning By- law 1999-52, as amended, and in accordance with the Planning Act, 1997. No established maximum or minimum. Funds collected from development/redevelo pment, in lieu of the conveyance of parking for General Commercial Zones only. Provides for the rehabilitation of existing parking and/or supports the acquisition of new parking lots and or installation of EV charging stations. Council approved through Capital budget or other in- year Council reports. Canada Community Building Fund The Canada Community Building Fund (formerly known as the Federal Gas Tax Fund) is a permanent source of federal funding for local infrastructure to be used across 18 project No established maximum or minimum. The Town receives funds from the Association of Municipalities Ontario (AMO) on behalf of the Federal Government per a Municipal Funding Agreement which Funds must be used for infrastructure construction, renewal, or enhancement within 18 project categories as established by the Government of Canada. Council approved through Capital Budget or other in- year reports. Per the Municipal Funding Agreement, funds must be expended within five Authority/Timing The Canada Community Building Fund (formerly known as the Federal Gas Tax Fund) is a permanent source of federal funding for local infrastructure to be used across 18 project categories to address local priorities. The Town receives funds from the Association of Municipalities Ontario (AMO) on behalf of the Federal Government per a Municipal Funding Agreement which requires the funds be deposited in a dedicated reserve fund. Council approved through Capital Budget or other in- year reports. Per the Municipal Funding Agreement, funds must be expended within five (5) years after the end of the year in which funds were received. ____________________________________________________________________________________________________________________________________________________________________________________ Page 15 of 15 Name Purpose Target Balance Funding Source Designated Use Authority/Timing categories to address local priorities. requires the funds be deposited in a dedicated reserve fund. (5) years after the end of the year in which funds were received. Development Charges As prescribed by the Development Charges Act, 1997, provides financing for growth related projects undertaken by the Town. Reserve fund balance must be zero by build out and debt interest cannot exceed 20% of annual DC revenues. Charges imposed and collected from Developers prior to the issuance of a building permit on new development. Funds transferred out for the growth-related component of projects identified in the Development Charges Study, as per the Development Charges Act, 1997. Council approved through Capital Budget or other in- year reports. Grants To accommodate grant commitments, including the Ontario Community Infrastructure Fund (OCIF). No established maximum or minimum. External grants from various government granting agencies. Funds must be used in accordance with the grant terms and conditions. Treasurer approved in-year transfers as per the terms and conditions of the grant agreement. Parkland Dedication Provides for the payment of cash-in-lieu of conveyance of land for a park or other public recreation purpose, in accordance with the Planning Act, 1990 and By-law 2023-027. No established maximum or minimum. Funds collected from development/redevelo pment, in lieu of the conveyance of parkland. Provides for the purchase and development of parkland in developing areas and redeveloping areas and/or supports the upgrading of existing parks/facilities. Council approved through Capital budget or other in- year Council reports. Purpose Funding Source Authority/Timing