The City of Lloydminster has moved funds from a restricted reserve to an unrestricted reserve following a council motion.
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The transfer of just over $2 million was made from the Subdivision Prepaid Improvement Reserve to the Road Infrastructure Capital Reserve.
Restricted reserves have regulations placed on them to guide the use of the funds.
“Restricted reserve is usually in the form of offsite levies that are, in many cases, collected from developers for future developments to make improvements down the road. They use certain regulations that guide us,” said Mayor Gerald Aalbers.
An unrestricted reserve gives administration and council more flexibility in how the funds are used.
”Unrestricted reserves, as we heard, we have the ability to spend unrestricted reserves anywhere, but in particular, we try to allocate it to certain departments,” said Aalbers.
Administration identified the funds in the subdivision research and found they no longer meet the requirements of a restricted reserve. Thus, they were to be reallocated.
It was found the projects the reserve would have funded were either completed or no longer an obligation to complete.
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