New town financial accountability policies forthcoming

By Sean Feagan, Local Journalism Initiative Reporter

Strathmore town council recently passed two motions for policies to enhance accountability for town spending.

Each motion was proposed by Councillor Jason Montgomery during the regular town council meeting on Feb. 3 and passed unanimously by council in separate votes.

The first motion directs town administration to create a new policy related to capital spending.

Under this new policy, capital funding will only be used for the specific projects for which they have been approved. If any material changes are necessary or proposed, then the project spending must be re-approved. Also, the town chief administrative officer (CAO) will be required to report ongoing and final costs for all budgeted capital project expenditures on a quarterly basis, during a committee of the whole meeting.

According to Montgomery, this policy is needed because of instances where capital project details change after funding has been approved, without subsequent re-approval by council. It will ensure town council is accountable and responsible for how capital funds are spent, he said.

Administration must draft this new policy before March 2021.

The second motion relates to how surpluses are considered while each yearly budget is drafted. This new policy will require planned surpluses and how they are spent to be identified during budget planning. It will also require the identification of unallocated surpluses.

“I want to make sure there is clarity brought to highlight when there is surplus funds that have been identified, and then where those surplus funds are going to be directed, whether it’s to another department to cover a deficit, or a lot of times, it goes into a reserve,” said Montgomery.