Financial Reserve Policy

Town of Strathmore Council moves to protect critical infrastructure.

Adopting a reserve policy to support long-term asset management.

STRATHMORE, ALBERTA | July 20, 2023 – As part of the 2024 Budget process, Town of Strathmore Council has adopted the Financial Reserve Policy. The Policy ensures that long-range financial planning, alongside robust asset management, will allow for effective reserves to meet the future infrastructure needs of Strathmore.

The decision represents a step towards a healthier financial future for Strathmore, providing property tax stabilization, less reliance on debt, and establishing financial targets that will meet the future funding needs of the community.

“We can’t just think about right now. As leaders, we have a duty to consider healthy choices for the future – long past our terms on this Council. This is more than a rainy-day fund, it’s a carefully researched, meaningful asset management and financial plan that will strengthen the Town’s financial outlook in the future,” said Mayor Pat Fule.

Council has chosen Financial Sustainability as a priority for this term. Adopting a thorough and thoughtful Reserve Policy is a key strategy to improve the financial stability of the Town of Strathmore. The policy will prepare the Town for short-term and long-term financial demands, however, reaching adequate financial reserve funding levels will take many years of dedication and commitment by Council, administration, and the community.

“We must put the work in to prepare for the future. Council has taken that responsibility on within our Strategic Plan for this term. We’re focused on the current and future prosperity of Strathmore, now we’re ensuring that plans turn into actions,” added Mayor Fule.

Financial Reserve Policy 1817 will ensure that funds are set aside to provide for emergent financial needs and replacement or rehabilitation of existing assets. It replaces the Operating and Capital Reserves Policy 1807. The next steps after the implementation of the new financial reserve policy will be building a 10-year forecasts for each financial reserve as part of the 2024 budget process. You can read the policy in full at Strathmore.ca/Policies.