Community Dashboard: Capital reserve to target balance ratio
Rationale and analysis
Why this measurement is important
The optimal ratio equates to one (1), which would mean that Niagara Region is at the two per cent target reserve balance.
How we measure this data
As reported by Corporate Services, Financial Management and Planning.
The numerator comprises the levy and rate capital reserves (excluding Agency, Boards and Commissions (e.g. Niagara Regional Police Service, Niagara Peninsula Conservation Authority).
The denominator comprises the target reserve balance, based on two per cent of the replacement value of assets in the Asset Management Plan for Levy (excluding Agencies, Boards and Commissions), Water, Wastewater, Waste Management). Two per cent is the minimum threshold recommended by the National Research Council of Canada as a target for a reserve balances.
About this indicator
This indicator measures Niagara Region’s current capital reserves against the target reserve balance.
The target reserve balance is two per cent of the replacement value of all assets owned by the Region per the Asset Management Plan. The two per cent is the minimum threshold set as a best practice for sustainability per the Nation Research Council of Canada.
More information
© Niagara Region - 1815 Sir Isaac Brock Way, Thorold, ON, L2V 4T7 - Phone: 905-980-6000, Toll-free: 1-800-263-7215
