Add one more reserve fund to the city reserve fund count.
The city will be establishing a new reserve fund for monies received from the settlement of the Orchard Heights litigation. The funds will be used for future repair, removal and replacement of failed infrastructure in Orchard Heights.
Coun. Gerry Warner asked how many reserve funds the city now has.
CAO Wayne Staudt said there are quite a few including both statutory and unstatutory ones.
“I would think there would be about 30 or 35,” Staudt said.
The city filed a suit to recover the “incurred and anticipated future costs associated with inferior work completed at the site of the Orchard Heights Phase 2”
The residential development is located on 20th Avenue between 14th and 16th Streets South,” said the report.
City staff then recommended that the net funds paid to the city in the litigation settlement be held in a reserve in order to fund future costs necessary to repair failed infrastructure.
Coun. Angus Davis said it’s prudent of the finance department at the city to set up the fund.
“This fund came out of the need to have some reparation done to the things that didn’t go too well,” Davis said. “So here’s some money in the bank to pay for some future problems we may have.”
Davis said the public sometimes doesn’t feel the same about reserve funds, but he thought the city is doing a good job with the reserve funds.
Mayor Wayne Stetski said there’s one thing that the public likes even less: surprises and increases in taxation.