Council begins review of financial reserve policy

By John Watson Local Journalism Initiative Reporter

The Town of Strathmore Committee of the Whole discussed the town’s Financial Reserve Policy, No. 1817, during the Jan. 15 meeting. 

Leana Ashbacher, senior manager of financial services, presented the policy to the committee, with intent to receive feedback on potential changes prior to the document being presented before council to be voted on. 

“I wanted to bring two reserve policies for discussion: one was an operating reserve for snow clearing, and one was for land capital,” said Ashbacher. “It was also brought to my attention there is also another capital reserve that we need to add into this policy, and this is due to a contractual agreement with our joint use agreement – so we need to have the George Freeman Sports Reserve.”

Updating the reserve policy would serve to support any operational challenges the town may be facing, and will establish a higher level of transparency between council and the local community regarding exactly how reserves are organized, as well as utilized.

Ashbacher explained during the 2025 budget deliberations, council approved an annual repair, maintenance, and replacement contribution of one per cent, which in so doing contributed to the overall tax increase to local residents and businesses. 

Within the fiscal sustainability reserve, town administration recommended to council that the budget for snow clearing be pulled from that reserve, and to create a completely new reserve designated to that purpose. 

Such action would be intended to create more transparency for council, administration, and the community regarding use of funds. 

Should the amendment to create a specific new reserve for snow clearing, funds from the fiscal sustainability reserve earmarked for snow clearing would also be transferred to the new reserve. 

“Administration is also recommending that we create a new reserve for land capital to ensure that we are clear and transparent how any surplus funds or transfers from sales of land are earmarked for strategic land purchases,” said Ashbacher. “We heard loud and clear from council that we need to have a land strategy, but in order to have a land strategy we better have a tool on how we are going to track this.”

With the support of council, the updated policy draft will be brought before council during the regular meeting scheduled for Feb. 5 for approval and adoption. 

Following this, the next step suggested to be taken by administration is to construct a 10-year forecast for each financial reserve as part of the 2026 budget process.