Council here in the committee of the whole has given its treasurer the right to make investments with township cash.
Wes Snarr presented council with a report on Sept. 12 explaining why the township should changes its current investment policy. The township often has cash available as deposits and invests it when possible.
The report stated, “The approach to investing in the past has been very conservative. The policy will allow other options to be pursued in the current economic environment that provide more flexibility and improved rates of return.”
Snarr added in his report that the policy is to ensure:
– preservation of capital;
– maintenance of liquidity; ad
– competitive return on investments.
Snarr pointed out the policy restricts the township to very specific investments:
– guaranteed investment certificates;
– The One Investment Program; and
– deposit receipts, notes, certificates of deposit or investments acceptance or similar instruments issued, guaranteed, or endorsed by a bank listed in Schedule I or II of the Bank Act of Canada; a loan corporation or trust corporation registered under the Loan and Trust Corporations Act; or a credit union or league to which the Credit Unions and Caisses Populaires Act 1994 applies.
The township will also not invest in anything that is expressed or payable in anything other than Canadian dollars.
Councillor Steve VanLeeuwen noted that Snarr had stated the investments in the past had been “conservative,” and, “Are we moving to a more liberal investment policy?”
Snarr said with a smile it has nothing to do with political parties. But,he added, the township does have many conservative investments, and he would like to expand that somewhat to areas where the township can make more money on its excess cash.
Councillor Kirk McElwain asked for an explanation of The One Investment Program.
Snarr said it is a group of institutional investors, and any public sector group is eligible to be part of it.
Councillor Fred Morris asked how Snarr would decide what to invest in.
Snarr said the treasurer would be responsible for investments, with an eye to liquidity and a better rate of return than it current gets.
Councillor Kelly Linton asked what new benefits the township might expect.
Snarr said in the past, traditional GICs have downsides, such as tying up funds for as much as two years, and, until recently, they paid a reasonable rate of return, but now they do not.
“There is a number of opportunities out there and I need council’s blessing to pursue those,” Snarr said.
Linton asked if “flexible” describes them.
Mayor Joanne Ross-Zuj said that is “a key word.”
Councillor Walt Visser said the change is also designed to protect the treasurer, so when he makes a decision, he has council backing.
Snarr will make annual reports to council about the investments.
Ross-Zuj said investment of township funds will still be “very conservative.”
Snarr agreed.
“You don’t want to put public funds at risk.”
