The key document to address this question is the Capital Reserves Schedule (PDF). This schedule shows that at the beginning of 2023, a Sorrento-Blind Bay Municipality would receive financial reserve transfers from the CSRD valued at $5,070,928. $3,994,352 of this amount are funds in place for local Fire, Water, and Parks services that are currently under the responsibility of the CSRD, but would become the responsibility of the municipality. The remaining $1,076,576 would be the Sorrento-Blind Bay portion of the existing Electoral Area C Community Works Fund reserve.
The Capital Reserves schedule also shows that new funds, raised through municipal taxes, would be added to the reserves each year, or used to create new reserves, beginning in 2023. Specifically:
- $250,000 would be added each year to the Fire Service reserve fund
- $200,000 would be set aside each year for a Municipal Hall reserve fund
- $70,000 would be set aside each year for Park Service capital expenses
- The amount added to Water Service reserves would be $163,300 in 2023, but would gradually increase to reach $375,000 in 2029
- $1,226,000 would be added to a Local Roads Service reserve each year beginning 2023 for five years, after which the annual transfer would be reduced to $200,000
At the beginning of 2029, after all, scheduled additions to and withdrawals from the reserves have been made, and a modest amount of investment income has been added (calculated at 1.4% interest), the total reserve fund balance for all of the funds combined would be $14.9 million.
All of the additions to the reserve funds are identified in the individual Service and Issue Sheets for the relevant services. As well, it is important to note that the annual taxes that would be charged by the new municipality, and that are profiled under Budgets and Property Taxes, all take into account the need to raise sufficient funds to make the annual transfers to reserves.