- Our Town
Municipal reserve funds sought
While municipal council is calling for a one per cent tax increase in its budget for 2011, Ken Ostraat, chief financial officer for the municipality, would like to see a higher increase in order to bolster reserves.
At the council meeting on March 14, he asked councillors to consider a two per cent increase.
“A one per cent increase only raises another $60,000 for the community,” Ostraat said.
He added that the additional funds from a higher increase are needed to replenish reserve funds.
In recent years, municipal reserves have been depleted as the municipality has taken on some significant capital projects.
“There is a need to build these reserves back over time,” he said.
“We will be transferring a total of $427,397 in 2011 to general capital reserves.
Since 2006, the municipality’s non-statutory reserves have drained from almost $7 million to around $4.5 million in 2010.
Ostraat said he would like to build the reserves to $5 million or more.