Reserves and reserve funds are comprised of funds set aside for specific purposes by Council or by legislation, regulation or agreement. Reserves provide flexibility to manage the financial needs of the City.
The City’s discretionary reserves are comprised of tax-supported reserves, rate supported reserves and Hamilton Future Fund Reserves.
The Hamilton Future Fund Reserves were created...
The Hamilton Future Fund Reserves were created from a special dividend from Hamilton Utilities Corporation upon restructuring of the electrical industry in 2002. The Hamilton Future Fund Board of Governors have oversight on the funds to be used on projects that create and protect a permanent legacy for current and future generations of Hamiltonians to enjoy economic prosperity and improved quality of life.
The City’s obligatory reserve funds are comprised of development charges reserves, federal gas tax reserves, provincial gas tax reserves, parkland dedication reserves and building permit fees reserves.
Story behind the numbers
Balances in the Reserves are projected to decrease in 2017 over 2016 as previously approved financing from reserves for capital expenditures for growth related infrastructure, lifecycle infrastructure renewal including roads, vehicles and equipment are expected to occur.
Balances in the Rate Supported Reserves are projected to decrease in the coming years before stabilizing by 2021. The decrease is due to exhausting the $100M Provincial government grant given to the City and held in a dedicated Reserve for the Clean Harbour Wastewater Treatment Plant upgrades. A further $45M of City held Rate Supported Reserve funds are projected to be spent on the Clean Harbour Project.
Improvements to reserve balances are directly affected by fiscal prudence by following long-term financial plans and maximizing investment returns.
Overall City Reserve Position
|City Reserve||$ Balance Dec 31, 2014||$ Balance Dec 31, 2015||$ Balance Dec 31, 2016||$ Forecast Dec 31, 2017||$ Forecast Dec 31, 2018||$ Forecast Dec 31, 2019|
|Tax Supported Reserves||413M||423M||406M||359M||374M||401M|
|Rate Supported Reserves||224M||238M||241M||229M||201M||147M|
|Total Non Obligatory||637M||661M||647M||588M||575M||548M|
|Sub-total before FF||832M||887M||860M||753M||779M||772M|
|Reserve Funds - Future Fund||46M||38M||43M||44M||50M||55M|
DATA NOTE: The Citizen Dashboard is in the process of being converted into an Open Data format, linking the Citizen Dashboard with Open Hamilton. During this conversion, the data on the Citizen Dashboard will not be updated quarterly, resulting in some data being out of date. The conversion is underway and is expected to be fully completed by June 2019.
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