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Financial ReservesThe City corporation expects to have $300 million in financial reserve at the end of 2016. Generally, each reserve has an intended use, which is mandated by Council policy.

The tax rate stabilization reserve was established in 2011 to help buffer against volatile commodity markets and stabilize the contribution to the municipal operating budget from the energy utilities. However, with a continued forecast for low oil and gas prices, it is expected the tax rate stabilization fund will be fully depleted at the end of 2016.

Reserves Outlook
Dec. 31, 2016 ($ millions)

•  Community Capital
  $ 18
 Infrastructure Reserve
  $ 9
 Gas Depletion
  $ 85
•  Electric Equipment
  $ 80
•  Tax Rate Stabilization
  $ 0
•  Unrestricted - NGPR
  $ 108
Total   $ 300

Although we have funds earmarked in other established reserves, we must carefully consider what we spend now, and what we save for future needs, including abandonment costs. Just like a household savings account, once the money is spent, it’s gone for good and new income is needed to replace the balance.

In 2016, City Council will be asked to consider the establishment of a Heritage Reserve. Though a recommendation has not yet been finalized, the idea is to see future energy utility profits that have in the past been transferred to the municipal services budget instead moved to the Heritage Reserve. The funding would then be available to fund other one-time community priorities.
Last updated: 3/3/2016 2:09:52 PM