Brock Township currently has nearly $19 million socked away.
According to a report from Treasurer Laura Barta, which is included on the agenda for Monday’s (April 16) finance committee meeting, that figure is comprised of nearly $15 million in reserve funds, $3.3 in reserves and $920,000 in trust accounts.
It concludes by noting that the municipality earned nearly $230,000 worth of interest in 2017 alone. Other than a few exceptions, the report notes that “all interest earned remains in the respective reserve fund or trust fund account.”
“This interest is accumulated along with the principal and will be available to offset the cost of future expenditures through the annual budget process,” it continues.
Generally speaking, reserve funds are set aside for a specific purpose or project while reserves face few limitations and are commonly used to offset operating costs.
So what’s all this money going to be used for?
The following is a listing of notable accounts along with a description provided by the Township:
Capital reserve fund — $6.2 million
From time to time, various departments set aside a portion of their annual operating budget to help offset future costs of anticipated capital projects. Through this method, the cost of projects which could not normally be fully afforded in any given budget year can be completed by spreading the costs over several years.
Development charges reserve fund – $3.2 million
Under the Development Charges Act, the Township is entitled to collect contributions for all new residential and non residential development to help offset the capital costs related to increased services associated with new development. Anticipated capital expenditures related to growth are outlined in a development charges tudy that is undertaken to set the rates for development charges to be levied. The development charges collected are placed in the development charges reserve fund until such time as they need to be utilized to complete the capital works outlined in the study.
Brock Hydro reserve fund – $2.9 million
Funds received from the sale of the Brock Hydro Commission. Investment income generated on these funds is utilized to fund budgeted roads capital projects in the annual municipal budget process as per Council direction.
Capital reserve — $1.7 million
At year-end, the budgeted and unspent funds for capital items are placed in this reserve. The funds are then used for completion of the capital project or purchase of an item in a future budget year.
Federal gas tax reserve fund – $1.5 million
This reserve fund contains that portion of the annual federal Gas tax allocation which has not yet been spent on eligible capital projects. The funds held are reported as deferred revenue as their use is restricted to projects approved as part of the federal gas tax program.
Rate stabilization reserve — $496,000
Year-end surplus amounts are placed in this reserve for possible use in future budget years.
Insurance reserve fund – $421,678
Monies in this reserve fund can be utilized to pay the deductible portion of all insurance claims submitted to the Durham municipal insurance pool. Funds can also be utilized to help mitigate large increases in annual insurance premiums. The fund was increased in 2014 through the surplus created for Brock by the redistribution of pool percentages. The growth in the southern municipalities required them to pay a larger share of the annual insurance costs going forward. The fund was again increased in 2016 and in 2017 by a distribution of surplus to pool members.
For the full report, click HERE.