File #: POL 17-011    Version: 1 Name: Revised Restricted Surplus Policy C-F105 and Changes to Restricted Surplus
Type: Policy Status: Carried
File created: 6/16/2017 In control: Legislative Matters
On agenda: 7/11/2017 Final action: 7/11/2017
Title: Revised Restricted Surplus Policy C-F105 and Changes to Restricted Surplus Proposed Motions 1. That revised Restricted Surplus Policy C-FI05 and supporting Schedule be approved, as presented; 2. That Council approve the consolidation of certain Restricted Surplus Accounts, as presented; 3. That Council approve the addition of the Business Attraction Restricted Surplus; 4. That Council approve the transfer of funds between Restricted Surplus accounts, as presented; and, 5. That the Restricted Surplus Implementation Plan be received for information.
Attachments: 1. 1. Revised Restricted Surplus Policy 2017, 2. 2. Schedule A, 3. 3. Revised Restricted Surplus Policy 2017 - Revisions, 4. 4. Restricted Surplus Transfer Summary, 5. 5. Restricted Surplus Changes, 6. 6. Restricted Surplus Project Plan
Related files: App 17-034

Title

Revised Restricted Surplus Policy C-F105 and Changes to Restricted Surplus

 

Proposed Motions

1. That revised Restricted Surplus Policy C-FI05 and supporting Schedule be approved, as presented;

2. That Council approve the consolidation of certain Restricted Surplus Accounts, as presented;

3. That Council approve the addition of the Business Attraction Restricted Surplus;

4. That Council approve the transfer of funds between Restricted Surplus accounts, as presented; and,

5. That the Restricted Surplus Implementation Plan be received for information.

 

Body

Administration Recommendation

Administration supports the proposed motions.

 

Purpose

To revise the existing Restricted Surplus Policy and begin implementing the recommendations provided by the Government Finance Officers Association (GFOA) as presented to Council on May 16, 2017.

 

Summary

GFOA was engaged to complete an analysis of the Restricted Surplus levels held by the County. The purpose was to ensure that the County holds sufficient Restricted Surplus funds to hedge against known and potential cash outflows faced by the County. This analysis resulted in a number of recommendations for the County to implement.

 

Administration is seeking Councils approval to implement the following changes based on the recommendations outlined in the GFOA report:

 

1. The Restricted Surplus policy has been updated to improve clarity and to include recommendations provided by the GFOA including: a definition of extreme events, prohibited use of funds, categorization based on asset management and risk mitigation, and a process to administer excess balances (Attachment 1).

 

2. The Restricted Surplus Authorization Forms have been updated to align with the new policy and appended to the Policy as Schedule A (Attachment 2).

 

3. The Working Capital, Internal Financing, Contingency, Municipal Operation, and Winter Maintenance Restricted Surpluses will be rolled up into other fund balances as recommended by GFOA. (Attachment 3 and 4)

 

4. A Business Attraction Restricted Surplus will be added to support future economic development within Parkland County. (Attachment 3 and 4) The new authorization form is included in Attachment 2.

 

5. The surplus funds will be transferred to other restricted surplus accounts in order to achieve target levels. (Attachment 3)

 

Administration is also asking that Council receive the proposed Restricted Surplus Implementation Plan and Timeline as information. (Attachment 5)

 

Strategic Plan/Policy/Legal/Staff Implications:

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