Policy to Direct the Allocation of Future City Surpluses

City council has given approval to a surplus management policy.
The policy approved at last night’s meeting and recommended by city financial staff would involve setting aside 40% of a surplus of one is realized into a tax stabilization fund, 30% into a capital reserve and the remaining 30% into long-term debt.
The policy limits the use by council of the tax stabilization fund—-it can only be accessed if the tax increase would otherwise be in excess of core inflation.
Also use of the fund must have an exit strategy to reduce future dependency on the fund in meeting budget pressures.