Banff politicians are making sure they have enough money for snow clearing when there are major snowfalls.
At a recent finance and governance committee meeting, council directed administration to set a target maximum balance in the snow clearing reserve equal to 150 per cent of the annual budgeted costs for contracted services and overtime.
As well, they’ve directed administration to budget 50 per cent of the forecast deficit in the snow clearing reserve in any year that there is a reserve shortfall forecast.
Officials say these decisions will work to make sure the reserve is more adequately funded when required.
“For year to year it is difficult to predict the level of snowfall, how and when it will fall and what resources will be required to manage it,” said Chris Hughes, the Town of Banff’s senior accountant.
“Each year, administration will budget for an average snow year and will use the snow clearing reserve to fund those years when there is an above average snow year and will fund the reserve in years when snow fall is below average.”
Currently, in years when the annual expenses for snow clearing are below what was budgeted, the surplus is transferred into the reserve.
In years when expenses are greater than budgeted, the deficit amount is funded from the reserve as long as there is adequate funding available. Until now, there has been no target maximum for the reserve.
Hughes said the major snowfall Banff experienced in November 2014 is the best recent example of an event that could cause a major deficit in the budget for annual snow clearing.
He said by the end of the year contracted services for snow clearing was $82,000 over budget and overtime was $6,000 over budget, representing a 150 per cent increase over what was budgeted.
“With this in mind, it is recommended that the target balance for the snow clearing reserve should be 150 per cent of the annual budget for contracted services and overtime in a given year,” he said.
“For example, in 2015 the budget for contracted services was $50,000 and the budget for overtime was $6,500 for a total of $56,500. This would result in a target maximum balance in the reserve of $84,750.”
