HomeMy WebLinkAboutTR 09/98�} � a�s� '�j Y � �t
� ,jsb rs �, �.�
N��r4t3'7�+�� � �
r! � `
� 1r f �.a� � — t� �4
�t-`' ` �: � 2� .
� � ;j r I.
i c r� a: � �1'ORp r
�
.� c � (�-•� �
,u 1 - .rii � � a t. .
�' `a
4 f" J��
!"'` '� �j ` ' F���,S ' '�+ i
�� � c .i3: •S
REPORT TO COIJNCIL ' ._
If _ .
' FROM: Qillis A. Paterson DATE: Merch 4,1998 •
Dinclor of Pinancc
, REPORT NOs TR 09/98
'� .
BUDJEC[': ParlicipaUon ln "Ono-Tho Publfc Sxtor aroup of Funds"
PURPOSE: To roport on investing money JoinAy with othcrmunicipnlitics in OnGuio through
nn ugenL
, ORIGIN: ' .
Director of Finence
� . RCCOMMENDATION:
It is recommended thnt this Report No. 09/98 bc rcccivaf by Council and lhat:
L Councll aulhorizc Uio Director of Finance or his designate to parilc(pale in lhc "ONE -
Thc Pubiic Secror aroup nf Funde";
2, lho Invesiment Policy for thc Town of Pickoring be so amcndeJ; ,
3. lhe altachcd by Inw bc rcnd thrca times and pnsscd by Council; nnd
3, Uic nppropdate o�cials of the To�tm of Pickering bc nuthorized nnd dirccled lo takc Ihe
necessary nction lo give effect lheroto,
;`
AUTHORITY: Municipal Act RS.0.199�, os amended, Section 167.4
: FINANCIAL IMPLICATION3:
, Tha proposed recommendedons, by providing for the Town of Plckering to imest in "One - Thc
Public Sectqr aroup of runds", will provide flexlbilfry end u means of increasing diversificatfon
wiUiin the inveslment progrem of the Corporetion. •
,,
�
:; �;
. ,
E'� � .ft
)- 1 f
..+ .., �.�,,.^4 ..... �„c"" ..Ei.... z !._.,.,.rr. � _ .� .. ..-. . . ... . ........ .. 1. ,.. �, -
�1 1 t � S,d! � � _ - :1- ".' 1 - 1 1 � ,
� � If .�. �
y i
A� ���1 ���� \� "
. rj - 2�. `is�
,,
;"s a ti � : ' "
� , Msrch 4,1998 ,
, , ' ` Report To Council �#fR 09/98 :
�' �j BACI{GROIIND•
� r� �� _,
•` . ' ;`;; Dbcusalon:
S1nco lete 1992, joinl municipel inveslment funds have been a pad of the finencial menagement
of Onturio'municipnl(ties. CHUMS tinancing Corpornlion, a subsidfnry of tho Municipal
finance Officers' Associalion (NlPOA) provided n money merket investment fund. Local
Aulhoriry Sorviccs Ltd. (LAS), a subsidiary of the AssocinUon of Municipalilies of Ontario
(AMO), offered u short•term investment fund end a longer term bond Cund. Aa of May 1, 1995, �
thc lwo existing progtnms wero tepinced by ONL� - The Public Seclor Group of Punds,
hereinaller dcfined as the "Punds". Overseeing thc nctivily oC Ihc "CunJs" is n Monngement
committee comprised of Uvee senfor public sector officinls appointed by each of CHUMS and '
LAS. One of the current CHUMS nppoiutees to lhis wmmittee is the Director of Finence, who
was inslrumenlal In crenqng tho fund. ,
The newly fortned joint investment progmm, the "Funds", offors both n moncy mnrket fund with
investmonis for n krtn of less thnn one ycar and u short•term bonJ fund that imests in bonds of
_ tcnns from onc ycnr lo fivc ycnrs. 7'hc icgal rcquircmcnts for participntion in Ihc "funds" and
' the nttached by-law 6nve bccn dcvclopeJ wilh thc assistuncc of thc Inw firm of McMillun Uinch.
- The "funds" providcs, as part of the enrolimcnt pnckage, u legal opinion from Ihut firm Umt an
' Onlnrio municipality, upon compliance wilh the opproprinta proccdumi steps, incluJing the
passing of e bylaw, is authodud by statutc to invut general, cnpital end reserve funds, but not
trust, or sinking fund monie.v in thc "PunJs",
� The "Funds" offers mvnicipalitfes lho oppodunity to participatc in proCessiannily mannged
funds, using investments m spccified within U�e Municipnl Act, nt a reosonable ail inclusivc fa.
Thc "Punds" is an atirnctivc ullcmalivc Cor thosc municipniities which lack the resourccs of
experlise to profess(onally mnnage fund� or whose usscls nre too small to providc proper
diversificnlion or lo wmmand tho bcst priccs in Ihe fimncial markcis. As a resull, lhc "funds"
havc grown in assct siu ond in Ihc numbcrs of municipulilies padicipnting. As nl fcbruary 26,
1998, nssals under management wero S20S million and 5132 mililon far Ihe money mnrkct and
shod-lerm bond fund respccUVely, with ISl participntlng municipalities wilh approximalely 500
nccounts.
To date, Pickering hns not parUcipated in thc "Funds". While we are devcloping a successful and
wst eCfectivc cash and investment manogement program in•housc, there mny nrise circumstnnces
which could muke use of the "funds" attractive. At olher times, somc of the ciigibic funds under
ndminisUnNon muy need to be invested for a sliott, Sndefinitc tlmc horizon, and thcrc could bc nn
ndvantage to pincing these wilh the "Funds". Molher possible usc of tha "funds" mny nrise if
there is a senior stalivucancy far any period of time, due to illncss or staff wmover. These und
other possibllities lhat may arisa from timo to timo lead to tha rccommendal'ton thnt the "Punds"
be lncluded in Pickering's inveslment policy guideltnes as n mwns of mnintnining Ilex(bility end
to provide snolher altemative torm of diversificnUon.
, ATTACHMENT3: Draft Dylaw
� y�,.
-t
J:;� � 4 .! f .�: i
i:1�t � �� :�';" ,.
`' ' ' _ 'DiUts :Paterac,n
i�l�, +� � ;�
�.S ..�. . .,.��__ .e+ .. .. ... . ,.� . _ ..._.t ,.i ., . ... , .. ( .., � . i
� i� r=: �
� :��= � ., �a�. �� '� 3 r
i C � � n� �. � '� - ` �� �, ' .
�#� v TNE ['02p0RA'�'(ON OR THR �'O�;^' OP P(CtCFEt�'R `
@Y•LAWN�, 5232/98
�
Being a by-law to-nulhodze The`Corporedon of
~ Iho Town of Ptckering (the "Corporadon'� to
(nvust money jo(nqy`•With other oligible Investora
� in Ontaziolhrough an egent and to authodu tho
D(rector of Finence to executa the, necasary
documenis for thaS purpose.
WHEREAS. SecGon 167.4 af the Municipal Act provides that the power of a municipaliry to
invest money.indudes the power to enter into an egreement wlth any olher municipaliry, and
with any schoo[ board, college, univecsiry, hospital or such other porson or classes of them as
may be prcscribed by rcgulation for the joint invutment of money by thou partics or their
agents;
AND WEIEREAS CHUMS Finencing Corpomtion ("CHUMS'�, a duly incorpocated whollY-
owned subsidiery of tho Municipal Finance ORicers' Society of Onlario, ond Local Authority
Services Limited ("LAS'�, u duly incorporated wholly-owned subsidiary of the Association of
Municipalities of Onterio, provide os agent through "ONE •'fhe Public Sator Oroup of Funds"
inveslment funds fot joint investments as set out in schedules to lhe Agreement (es hereinafter
defined) (the "Funda'�;
AND WHEREAS the Council of the Corporetion deems it to be in tho intercst of the Corpomtion
to invest, from time to time, such amounts of monay held in the general fund, the wpitel fund
, and reserve funds, as the Director of Finnnce r.onside:s appropriat� joinUy with other Eligible
` I' Invesiors lhrough one ac more of Ihe Funds;
NOW,�THEREFORE, TAE COUNCIL OF THE TOWN OF PICKERING HEREDY
ENACTS AS FOLLOWS:
1. Thc agreement mede between CHUMS, LAS, the CorporeUOn and other Eligible
investors (the "Agreement'� is hercby aulhoriud subslnntinlly in the form made availablc
lo the Council nt its meeting held on the day of 1998.
' 2. The Dircctor of Finance is hercby aulhorized nnd directed to enter into end exccute, ns the
sole signing o�cer of the Corporation, the Agreement ond any other necessnry
documenls and to do anything necessary or desirnble, on behalf of the Corpomtion, to
give effect to the purpose, and the Director of Finance is hereby authoriud to a�x the
cocpornto sea! of the Co�poration to the Agreement and to any other documents which nre
necessnry or desirable to give efCect ro lhe Agrcement or to the purpose,
3. The Dircctor of Finance is hercby uuthoriud to invest, from time to time, such amounts
' of money held in the geneml fund, the capital fund and reserve funds as the Director of
' �inana considers opproprinte ttvough one or more of the Funds now nvuilable under the
Agreement, es such Cuncls may be amended or rcplaccd Crom time to time, and one or
more Funds Uwt may hcrcafter be provided under tho Agrcement from time to Gme, as
I such Funds muy be nmended or replaced from time to time.
; ��
I BY-LAW read a IIist, second and third time and finnll assed th(s 9th ��
Y P daY of Mnrch , 1998, ;I
i
' Wayne Anhtire, Meyor; .
j: � i � !
if i
� . , • �, �, '' � � B!uce.Ta�lor, Cletk �
,
z'- ,. .�, , . _ .., °: .' � r.i � ? �= � ` . ..._ . . . , . . . . ..
_ �, _ ., .. _ �� , , , ...