Operating Reserve Funding

The following chart summarizes the activity within the operating reserves which are mainly used to smooth out fluctuations in expenditures that are operational in nature This includes reserves such as the Extreme Weather Reserve where any surplus in the extreme weather activity within the City’s operating budget is transferred to this reserve to help offset related potential future deficits given the volatility and impact of extreme weather events Also included is the Development Stabilization Reserve, created in 2022, to better match development revenues to growth-related expenses, and help limit large fluctuations in property tax increases in future years This is in recognition that though the City does receive additional property tax revenues from growth and development, these tax revenues do not occur at the same time as the provision of new amenities and services (i e related expenses) to service the growth This is being addressed through setting aside a portion of tax growth revenues in a Development Stabilization Reserve that will be drawn on in future years to offset the anticipated growth related expenses

The increase in the withdrawals in 2021 reflects the draw down of the City’s BC Safe Restart Grant and the Community Support and Recovery Plan Reserves to address the financial effects of the pandemic

The following is the Schedule of Operating Reserves

Operating Reserve Balances 2019–2027

*Unaudited