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JCT 24 1094

To: TT. Chong, October 18, 1994
City Administrator

From: J. Maitland
Treasurer/Deputy Administrator

Re: Special Public Works Reserve Fund
Budgetand Administration Committee meeting Octoher 14/94.

Recommendations
1. That an upper limit of $15,000 be set for use of funds from the reserve.

2. That funds continue to be allocated from the Special Public Works Reserve fund on a first come
basis.

Background & Comments:

In 1990, the City established the Public Works Special Capital Expenditure Reserve Fund by setting
aside $2 million from the Tax Sale Reserve with the thought that the annual interest on this fund would
_be used for:

a) construction or reconstruction of local roads; .
b) construction or reconstruction of storm sewers on focal roads, or
c) other ancillary works as may be necessary for the purposes aforesaid

The intention when setting the $2 million aside into the reserve was so Council could fund some of the

smaller local projects which, when stacked up against arterial roads, couldn’t compete for funding from
general tax revenue. This source of funding those small projects worked very well, however since that
time interest rates have decreased, interest is not being generated in the similar amounts as to when the
reserve was established. : | —_

Earlier this year, Public Works Committee was looking for another $100,000 to be available for projects
this year as well as some ongoing funding increase to raise the funds available to the $200,000 range.

Available options:

A. Add funds to the $2 million base

In order to generate an additional $100,000 into the reserve an additional fund balance of roughly $2
million would be required. |

Funds are not available to increase the reserve fund base to $4 million.