HomeMy WebLinkAboutFND-022-11 Clatington REPORT
FINANCE DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: October 17, 2011 Resolution#: - - By-law#:
Report#: FND-022-11 File#:
Subject: ACCOUNT SET-UP MANULIFE BANK OF CANADA
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-022-11 be received; and
2. That the Chief Administrative Officer, Treasurer and Deputy Treasurer be the
authorized signatories on the account with Manulife Bank of Canada and that a
combination of two of the signatories may be authorized to sign agreements and
other documents and deliver such instructions to the bank.
Submitted by: Reviewed by.
Nancy T ylor, A, CA. Franklin Wu,
Director of Finance/ Chief Administrative Officer
Treasurer
NT/CC/hjl
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: FND-022-11 PAGE 2
1. BACKGROUND
1.1 The Municipality has a sound and solid investment policy as documented in
Report FND-017-02 which was approved by Council Resolution C-622-02. This
policy specifically limits the Municipality's investment options to debt issued by
Federal, Provincial or Municipal governments and Schedule I or II banks
(previously referred to as Schedule A or B).
1.2 Section 418(1) of the Ontario Municipal Act R.S.O. 2001 provides the legislative
authority to invest monies not immediately required for current operating
purposes. Section 418(6) specifically states that only securities outlined in the
Act can be invested in and proceeds to list all of the eligible investment vehicles.
Ontario Regulation 438/97 Eligible Investments and Related Financial
Agreements further defines the qualified investments for a municipality.
1.3 The Municipality of Clarington has maintained a conservative investment policy.
The investment objectives of the Municipality are:
✓ Adherence to statutory requirements
✓ Preservation of capital
✓ Diversification of investment portfolio
✓ Maintenance of liquidity to ensure funds available as required
✓ Maximize rate of return of investments while meeting the above objectives
1.4 The Municipality regularly monitors the investments and checks the market for
the suitable investments. The Municipality was contacted by Don Hutton of Don
Hutton Insurance, who is an authorized representative of the Manulife Bank of
Canada. Manulife Bank has offered favorable rates through Don Hutton
Insurance. Manulife Bank is a Schedule I bank with solid ratings shown in the
table below. As per the Municipality's investment policy, investment with
Manulife Bank would be limited to a maximum of 30% of the portfolio the same
as all other Schedule I banks.
Standard & Poor's DBRS
Short-term rating A-1 R-1 middle—
Long-term rating A+ A (high)
1.5 The Municipality has pursued an initial investment in accordance with the
prevailing investment policy.
2. CONCURRENCE: Not applicable
REPORT NO.: FND-022-11 PAGE 3
3. CONCLUSION
3.1 In order to comply with banking procedures, a resolution is required to authorize
the Chief Administrative Officer, Treasurer and Deputy Treasurer to be the
authorized signatories for the account of The Corporation of the Municipality of
Clarington with Manulife Bank. The account is structured such that a
combination of two of the signatories is authorized on behalf of the Corporation to
sign agreements and other documents and deliver such instructions as may be
required by the bank.
CONFORMITY WITH STRATEGIC PLAN — Not Applicable
Staff Contact: Nancy Taylor, Director of Finance/Treasurer