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The Corporation of the Township of
South Algonquin By-Law #21-669
BEING a By-Law to establish a Capital Reinvestment policy for the Township of South Algonquin.
WHEREAS section 224(d) of the Municipal Act states it is the role of Council to ensure that
administrative practices and procedures are in place to implement the decisions of
Council.
AND WHEREAS the Township of South Algonquin desires establishing a Capital
Reinvestment policy, which will ensure appropriate Financial Controls are in place
AND WHEREAS Council of the Corporation of the Township of South Algonquin deems it
expedient adopt a Capital Reinvestment Policy
Therefore, the Council of the Township of South Algonquin enacts as follows:
1. That the Capital Reinvestment Policy, attached hereto and forming part of this By-
Law be adopted
2. That this By-law shall come into force and effect on the day of its passing.
3. That any other By-Law antedating this By-Law is hereby repealed.
READ A FIRST & SECOND TIME THIS 6TH DAY OCTOBER 2021
_________________________
______________________________
Jane A E Dumas, Mayor
Bryan Martin, CAO Clerk /Treasurer
READ A THIRD TIME AND PASSED THIS 6TH DAY OCTOBER 2021
_________________________
_______________________________
Jane A E Dumas, Mayor
Bryan Martin, CAO Clerk /Treasurer
CAPITAL REINVESTMENT POLICY
POLICY MANUAL
POLICY NO. FS-008-01
For Township of South Algonquin
EFFECTIVE DATE: October 6, 2021
Revised:
SUBJECT: Capital Reinvestment Policy
DEPARTMENT: Finance
RECOMMENDATION
That Council adopt a Capital Reinvestment Policy to aid in the long-term tangible capital asset
renewal. AND further that Council adopts a 1% Levy Increase each year to fund the Capital
Reserve
PURPOSE
The goal of the Township's Capital Reinvestment Policy shall be to set out the guiding principles
for the financing of future capital expenditures in a manner that considers the infrastructure
investment requirements of the Township as well as affordability issues for taxpayers.
GLOSSARY
Capital Levy - The amount of money raised through taxation that is transferred to the capital
fund or reserves to be used to help pay for the cost of capital projects.
Debt - Any obligation for the payment of money. The Township considers debt to consist of
debentures, cash loans from financial institutions, capital leases, debenture financing approved
through By-Law for which no debt has yet been issued, debenture financing approved through
the
capital budget for which no By-Law has yet been established, outstanding financial commitments,
loan guarantees and any debt issue by, or on behalf of the Township, including mortgages,
debentures or demand loans.
Long-term Debt - Any Debt for which the repayment of any portion of the principal is due
beyond one year.
Municipal Levy - The amount of money raised through taxation by the Township for the
purposes of funding operating costs as well as the Capital Levy.
POLICY STATEMENTS
1. The Township shall increase the Municipal Levy by a minimum of 1% per year for each of
the next five years (2022 to 2026 inclusive), with the 1% increase being added to the Capital
Levy.
2. The increase in the Capital Levy shall only be used for the following purposes:
a. To fund capital expenditures.
b. To increase reserve balances in order to finance future capital expenditures; or
c. To finance the annual costs associated with Long-term Debt issued in connection
with capital projects.
3. This policy will be reassessed upon completion of a comprehensive asset management plan
and recommendations will be brought forward at that time for the future funding requirements
of the plan.
Contribution
Increase
Contribution
2022
24,571.35
$
24,571.35
$
2023
24,571.35
$
25,313.40
$
49,884.75
$
2024
49,884.75
$
26,077.87
$
75,962.62
$
2025
75,962.62
$
26,865.42
$
102,828.05
$
2026
102,828.05
$
27,676.76
$
130,504.80
$