How much money should the City hold in reserve to cover emergencies like floods, fires, or other disasters?
City finance director Sally Edwards suggested two months’ worth of revenues would be about right.
Council agreed, voting to set aside that much — about $16 million — to cover emergency costs related to extreme events with the goal of submitting claims to get those monies back from senior governments.
Edwards said the current reserve is at about $14 million. The two-month target is a recommendation of the Government Finance Officers Association.
If the reserve amount is too much, the public may feel taxes are too high or the municipality is holding back tax money, she said.
The fund is to be reviewed every three years.