Finance 101 Thompson-Nicola Regional District tnrd.ca Investing City of Kamloops kamloops.ca.
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Transcript of Finance 101 Thompson-Nicola Regional District tnrd.ca Investing City of Kamloops kamloops.ca.
Finance 101
Thompson-Nicola Regional Districttnrd.ca
Investing
City of Kamloops
kamloops.ca
Thompson-Nicola Regional Districttnrd.ca
http://www.youtube.com/watch?v=vLNOpoQztFo
City of Kamloopskamloops.ca
Thompson-Nicola Regional Districttnrd.ca
LEGISLATIVE REQUIREMENTS
Municipalities: Community CharterPart 6 – Financial Management
Sections 183 – 187
Regional Districts: Local Government ActPart 24 – Regional Districts
Division 5 – Financial OperationsSection 815 – Financial Plan
Division 3 – Expenditures, Liabilities and Investments
City of Kamloopskamloops.ca
Investment of Municipal FundsCC section 183:
“Money held by a municipality that is not immediately required may only be invested or reinvested in one or more of the following:
a) securities of the Municipal Finance Authority (MFA);b) pooled investment funds under section 16 of the
Municipal Finance Authority Act;c) securities of Canada or of a province;d) securities guaranteed for principal and interest by
Canada or by a province;e) securities of a municipality, regional district or greater
board;
Investment of Municipal Funds
f) investments guaranteed by a chartered bank;g) deposits in a savings institution, or non-equity or
membership shares of a credit union;h) other investments specifically authorized under this
or another Act.
CC section 183 (cont’d):
Investment of Municipal Funds
What these all have in common is...
LOW RISK
City of Kamloops Investment Policy
• Investment policy conforms to CC section 183
• Primary Investment Objectives are the preservation of capital and high liquidity
• Secondary objective will be to maximize its ROI, while adhering to specific limits, for e.g., restricting the investment % by institution.
• Investments will be restricted to high-quality money market and fixed income instruments. Low risk.
City of Kamloops Investment Portfolio
• Maintains investment portfolios for its short-term investments (current operating requirements), medium-term and long-term investments.
• Cash flows are projected based on revenues, operating and capital expenditures to determine duration of investment period
Property Accepted in Trust
1) All money that is held by a municipality and is subject to a trust must be invested in accordance with section 183 until it is required for the purposes of the trust.
2) If, in the opinion of a council, the terms or trusts imposed by a donor, settlor, transferor or testator are no longer in the best interests of the municipality, the council may apply to the Supreme Court for an order under subsection (3).
CC section 184:
Ownership of Corporations
1) A municipality may only
a) incorporate a corporation other than a society, or
b) acquire shares in a corporation
with the approval of the inspector or as authorized by regulation.
2) An incorporation or acquisition under subsection (1) applies as an exception to the restriction under section 183 [investment of municipal funds]
CC section 185:
Investment Opportunities
1) Locally – Banks, GIC’s, etc.
2) MFA – GIC’s
– Index Funds
Its important to match the investment vehicle chosen against the needs of the local government
Consider
Short Term
Longer Term
-> cash management
-> reserves / LT savings
Thompson-Nicola Regional Districttnrd.ca
City of Kamloopskamloops.ca
tnrd.caThompson-Nicola Regional District
Questions?
City of Kamloops
kamloops.ca