Stabilization Reserve Fund Sample Clauses

Stabilization Reserve Fund. At present, any budget surpluses at year end are returned to the City, even though more than 50 percent of the Association’s revenues are derived from other sources. While every effort is made to spend funds as intended in a given year and historically variances have been minor, the Association has no ability to plan for extraordinary operating or capital expenditures. Tourism Toronto has requested that Council consider approving a stablization reserve fund to help it better manage its affairs. Examples of situations in which a draw on reserves may be required would include: extraordinary fluctuations in exchange rates, funding commitments to support major conventions or conferences arriving in Toronto in future years, and unanticipated marketing opportunities. The terms and conditions for the use of the Stabilization Reserve Fund would be agreed to with the Chief Financial Officer and Treasurer. Once a policy was in place, withdrawals from the fund would be considered and approved by the Board of Directors, and reported to Council.