2006-047 To Adopt a statement of investment policies and goals with respect to the investment of surplus cash, reserve and reserve funds and to repeal by-law No. 98-13
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THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
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BY-LAW NO. 2006-047
A By-law to Adopt a statement of investment policies and goals with respect to
the investment of surplus cash, reserve and reserve funds
and to repeal By-Law No. 98-13
WHEREAS S.418 of the Municipal Act, S.0.2001, c.25, as amended, stipulates that a
municipality may invest in prescribed securities money that it does not require
immediately;
AND WHEREAS S.7 of Ontario Regulation 438/97, as amended, requires a municipality
to adopt a statement of the municipality's investment policies and goals;
NOW THEREFORE the Council of the Corporation of the Township of Oro-Medonte
hereby enacts as follows:
1. The Statement of Investment Policies and Goals with respect to the investment
of surplus cash, reserve and reserve funds be as follows:
a) Policy Statement
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The purpose of this investment policy is to establish and maintain
practices and procedures to invest public funds with the highest return on
investment with the maximum security and appropriate liquidity while
meeting daily cash flow demands and conforming to all legislation
governing the investment of public funds.
b)
Scope
This investment policy applies to all investments made on behalf of the
municipality including, but not limited to, operating funds, reserves,
reserve funds, trust funds and any new fund created by the municipality
unless specifically exempted.
c) Objectives
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Adherence to Statutory Requirements
All investment activities shall be governed by the Municipal Act as
amended. Investments, unless limited further by Council, will be
those deemed eligible under Ontario Regulation 438/97 or as
authorized by subsequent provincial regulations.
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ii)
Preservation of Capital
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Safety of principal is an important objective of the investment
program. Investments shall be undertaken in a manner that seeks
to ensure the preservation of capital.
iii)
Maintaining Liquidity
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The investment portfolio shall remain sufficiently liquid to meet all
operating or cash flow requirements and limit temporary borrowing
requirements.
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iv)
Earning & Competitive Rate of Return
Without compromising other objectives, the municipality shall
maximize the rate of return on its portfolio.
d) Suitable and Authorized Investments
Investments issued or guaranteed by the following institutions will be
permitted by this policy, as deemed eligible by Ontario Regulation 438/97
or as authorized by subsequent provincial regulations:
the Government of Canada
Provincial Governments of Canada
a municipality, school board or local board as defined in
the Municipal Affairs Act,
Schedule 1 banks as set out by Section 14 of the Bank Act
subject to a minimum DBRS rating of R-1 middle or AA
Schedule II banks as set out by section 14 of the Bank Act
subject to a minimum DBRS rating of R-1 high or AAA
Joint municipal investment pools permitted under the
Municipal Act
e)
Reporting
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The Treasurer shall prepare and provide to Council each year, or more
frequently if deemed necessary, a report on investment activities.
2. This By-law shall come into force and take effect on and from the date of the final
passing thereof.
3. By-law No. 98-13 is hereby repealed.
BY-LAW READ A FIRST AND SECOND TIME THIS 17TH DAY OF MAY, 2006.
BY-LAW READ A THIRD TIME AND FINALLY PASSED THIS 17TH DAY OF MAY,
2006.
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THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE
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l\IIIIlYor, J. Neil Craig
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