The Town of Battleford approved the transfer of the Minimum Reserve Fund into a new account that is designed to grow an additional $80,000 annually. (Town of Battleford)

By battlefordsNOW Staff

Potential growth

Battleford council approves account transfer for reserve fund

Nov 25, 2021 | 5:13 PM

The Town of Battleford is transferring its minimum reserve fund, in an effort to grow finances to utilize in other departments.

Council unanimously approved the Minimum Reserve Fund Interest-Bearing Account Policy earlier this week. Administration will then take the reserves and transfer the money into an interest-bearing savings account, with a design to help it grow year-by-year.

A few years ago, council put a policy in place to state that the account can’t go below $6 million dollars, a calculated price of what it would cost to run the town in case of a catastrophe. However, Mayor Ames Leslie said administration looked at the earnings from the account and reassessed its efficiency. Currently, the town earns 0.77 per cent interest on the reserve, collecting around $46,000 annually.

“That money is always there so we can pay our bills,” Leslie said. “And it’s not really doing anything.”

The move puts the money into an account with a minimum of 2.10 per cent, which would bring in approximately $126,000, nearly triple the originally amount. Leslie said this represents an important opportunity for safeguarding against more than a large-scale emergency, as the surplus in the account could go to other ventures.

Honouring a neighbour

'He's smiling down at us': Wes Petterson Memorial Park opens in Weldon with special ceremony

1h ago

Investigation

RCMP investigating death on Sweetgrass First Nation

17h ago

BDO Debt Solutions

The Financial Impact of Assisting Adult Children

Sep 21, 2024

“This could potentially offset the amount from tax increases, or be dedicated for projects in the future,” he said. “If we can’t touch the money as a rainy day fund, it might as well go to work for the community instead of just sitting there.”

In order for the change to work, part of administration’s proposal requires that the interest-bearing account would have zero risk and that it wouldn’t be locked, allowing for use of the funds at any time. Leslie said this was a priority, in order to assure taxpayers.

“I can confirm and council made sure that the risk of this is very miniscule, nothing at all,” he said. “The procedure for any of our bank accounts remains the same, two signatures.”

Council also heard several quarterly reports during this week’s meeting, including Concern for Youth, wastewater and finances. According to the latter report, the town’s revenue collected accounted for 102 per cent of the projected total year revenue, while the expenses for Q3 accounted for 76 per cent of projected total year expenses.

Also approved was the removal of a bluff of trees adjacent to 35^th Street West. Following damage during an undergrowth burn, the trees had begun to break off and fall over.

—

cjnbnews@pattisonmedia.com

On Twitter: @battlefordsNOW