The Reserve Policy Meeting of Friday May 16.

A Special Committee of the Whole meeting of Council was held Friday, May 16th, 2008, at 9:00 am in Council Chambers at City Hall to review the Interim Reserve Policy.

A bare quorum of 4 showed up (Beardsell, Cochrane, and Nicol absent) and the CFO Kevin Birtles made a presentation of the Policy including concerns that Coun. Beardsell had expressed in writing. There was some debate about several of the reserves and some resolutions about the timing of an annual reserve review (prior to June 15 each year?) and tools that could be used to 'assist in the accumulation of funds to meet the new requirements'. There were 4 directly cited and the assembled Council voted that the Capital reserves would have 'credit interest added in 2008 to these reserves'

The RCMP reserve was confirmed to be $849,090 (the 2007 budget surplus of $787,483 was reinstated from the Casino Reserve which shrunk to $320,519). The RCMP reserve was confirmed to be a reserve that would contain

• 'the net surplus from policing costs would be added to the reserve at year end'
• Transfers from this reserve will be authorized by council.
• The costs shall include determination of overhead costs for internal support. (no calculation of how much this would be for 2008 was proffered or agreed to yet.)

There were two reserves with name changes accepted by the council. The infamous Fringe Load Variance Reserve becomes the Salary Reserve and starts ins reincarnation with $290,000 in the pot. In the Sewer Reserve Group the much maligned 'Un-Named Reserve' becomes the Emergency Reserve and the projected 2008 ending balance will be $838,683. There were some small housekeeping items with the formal addition of a Heritage Reserve and the acknowledgment that there would be no change in 2008 for the BC Gas Lease Legacy Reserve.

About an hour into the session the Mayor was called away for a scheduled meeting in his office and prior to his departure the council quickly agreed to lending money from non statutory reserves to Capt. Bailey Way project ($2,000,000 from the sewer reserve group.) and $5,000,000 to the Hesperia Development Corp. from general reserves. It was then pointed out that there was more discussion needed on the state and amounts of actual reserves and the four Council members decided to refer it over to a Finance Committee meeting. The Scheduling of this new special meeting was not disclosed.

The agreement to 'partner' with these two entities with a formal vote on amount and term (but no interest rate?) prior to the required announcement to the public as specified in Articles 21 and 24 of the Community Charter are a concern as to process if not to substance. The announcements of the share purchase arrangements re these two City corporations and the assistance provided to give them seed money that were in Sunday's paper are troubling when they are done under the 'partnering' section of the Charter. Council was given a legal opinion from our lawyers at the last regular Council meeting but I have not yet read that and will reserve comments on this arrangement until I do so. (need a copy!). (more to come!)

At the start of each year for the last two or three I have indicated that the two top priorities of this council should be the DCC policy and rates and the Reserve Policy. We have this year finally adjusted the DCC rates and added a waiver of DCC's for non profit assisted housing etc. (Provincial Govt. approval still awaited) and have put $110,000 in the budget to hire a DCC consultant to make a thorough review and evaluation of all DCC projects and their public/developer split etc.

We have now had a one hour review of Reserves attended by a bare quorum of Council. I guess it is a start.