Nanaimo’s new city council is determining how much “mad money” it can access as it continues to identify strategic priorities.
City of Nanaimo staff reported to council this week on 2018 surplus allocation, which ended up being $4.5 million in general, $2.3 million in the water fund and $740,000 in the sewer fund.
Council voted unanimously in favour of a staff recommendation to put $1.6 million into a property purchase reserve, $1.4 million into a general capital reserve and $1.3 million toward already-allocated funding for projects within a general financial stability reserve.
Coun. Ben Geselbracht had motioned to move the $1.4 million from the general capital reserve to the financial stability reserve, suggesting there would then be fewer restrictions on how the money could be used, but only councillors Don Bonner and Zeni Maartman supported his motion.
“We’re already well into our budget year and I would [suggest] that this money could be used to help fund some of what I think are some fantastic ideas and projects that some of the councillors have been talking about and which will be coming out in our strategic plan,” said Bonner.
Coun. Erin Hemmens, though she voted against Geselbracht’s motion, had a similar take.
“I’m just trying to figure out how much mad money we have, speaking very frankly,” she said. “We want healthy reserves, of course, that’s prudent, but we also want to know how much we kind of have to play with for these initiatives that are exciting that are coming up.”
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A staff report by Laura Mercer, acting director of financial services, notes that city staff are working on a reserves and reserve fund policy. Coun. Sheryl Armstrong said with that in mind, she felt council should approve the 2018 reserve allocation as is and look at changes come the next budget cycle.
Coun. Ian Thorpe said he didn’t want to second-guess the expertise and advice of the city’s finance department and said a $4.5-million surplus isn’t a huge amount in a $200-million budget. Mercer said over the last 10 years, the city has ended up using 86 per cent of money set aside in reserves.
“That money is not just sitting there wasting away,” Thorpe said. “It’s actually going to get used for the different projects that we identify.”
In 2017, the general surplus was $2.7 million, $1 million in the water fund and $470,000 in the sewer fund.
Items with allocated funding within the current $1.3-million general financial stability reserve include $700,000 for severance packages, $400,000 for a waterfront walkway feasibility study and $100,000 for dock repair on Protection Island.
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