Finance 101 Thompson-Nicola Regional District tnrd.ca Investing City of Kamloops kamloops.ca

Thompson-Nicola Regional District tnrd.ca tFo City of Kamloops kamloops.ca

Thompson-Nicola Regional District tnrd.ca LEGISLATIVE REQUIREMENTS Municipalities:Community Charter Part 6 – Financial Management Sections 183 – 187 Regional Districts:Local Government Act Part 24 – Regional Districts Division 5 – Financial Operations Section 815 – Financial Plan Division 3 – Expenditures, Liabilities and Investments City of Kamloops kamloops.ca

Investment of Municipal Funds CC 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 District tnrd.ca City of Kamloops kamloops.ca

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