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Finance 101

City of Kamloops. Thompson-Nicola Regional District. tnrd.ca. kamloops.ca. Finance 101. Investing. http://www.youtube.com/watch?v=vLNOpoQztFo. City of Kamloops. Thompson-Nicola Regional District. kamloops.ca. tnrd.ca. LEGISLATIVE REQUIREMENTS. Municipalities:. Community Charter.

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Finance 101

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

  2. http://www.youtube.com/watch?v=vLNOpoQztFo City of Kamloops Thompson-Nicola Regional District kamloops.ca tnrd.ca

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

  4. 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: • securities of the Municipal Finance Authority (MFA); • pooled investment funds under section 16 of the Municipal Finance Authority Act; • securities of Canada or of a province; • securities guaranteed for principal and interest by Canada or by a province; • securities of a municipality, regional district or greater board;

  5. Investment of Municipal Funds CC section 183 (cont’d): • investments guaranteed by a chartered bank; • deposits in a savings institution, or non-equity or membership shares of a credit union; • other investments specifically authorized under this or another Act.

  6. Investment of Municipal Funds What these all have in common is... • LOW RISK

  7. 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.

  8. 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

  9. Property Accepted in Trust CC section 184: • 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. • 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).

  10. Ownership of Corporations CC section 185: • A municipality may only • incorporate a corporation other than a society, or • acquire shares in a corporation • with the approval of the inspector or as authorized by regulation. • An incorporation or acquisition under subsection (1) applies as an exception to the restriction under section 183 [investment of municipal funds]

  11. Investment Opportunities • Locally – Banks, GIC’s, etc. • MFA – GIC’s • – Index Funds

  12. Consider • Its important to match the investment vehicle chosen against the needs of the local government • Short Term • -> cash management • Longer Term • -> reserves / LT savings

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

  14. City of Kamloops Thompson-Nicola Regional District tnrd.ca kamloops.ca Questions?

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