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Report
If this information is required in an alternate accessible format, please contact the Municipal
Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: June 20, 2016
Report Number: FND-010-16 Resolution:
File Number: By-law Number:
Report Subject: Account Set-up One Fund High Interest Savings Account
Recommendations:
It is respectfully recommended that the General Government Committee recommend to
Council the following:
1. That Report FND-010-16 be received;
2. That the Chief Administrative Officer, Treasurer and Deputy Treasurer be authorized
signatories to set up accounts with the One Fund High Interest Savings Account and that a
combination of two of the signatories be required to authorize agreements and other
documents and deliver such instructions to the One Fund.
Municipality of Clarington Page 2
Report FND-010-16
Report Overview
The purpose of this report is to obtain approval to take advantage of the High Interest Savings
Account offered though the One Fund by setting up the proper authorization of the signatories
of the Chief Administrative Officer, Treasurer and Deputy Treasurer for the One Fund High
Interest Savings accounts for The Corporation of the Municipality of Clarington.
1 .0 Background
1.1 The Municipality has a sound and solid investment policy as documented in
Report FND-017-13 which was approved by Council Resolution C-411-13. This
policy limits the Municipality's investment options to debt issued by Federal,
Provincial or Municipal governments, Schedule I or II banks and the One Fund.
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 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 primary investment objectives of the Municipality are the adherence to
statutory requirements and the preservation of capital. Other investment
objectives are the diversification of the investment portfolio, maintenance of
liquidity to ensure funds are available as required and maximize rate of return
while meeting the other objectives.
1.4 The Municipality regularly monitors the investments and checks the market for
the suitable investments. The One Fund Investment Program is designed
specifically for the municipal sector. It is jointly operated by LAS and CHUMS
Financing Corporation. The Chums Financing Corporation is a subsidiary of the
Municipal Finance Officers' Association of Ontario (MFOA). It is an approved
investment fund for municipalities as per the Municipal Act.
1.5 Currently, the Municipality has two accounts with the One Fund both for
Development Charges money. One is an Equity Fund and the other is a Bond
Fund. Note that the Bond Fund consists of a "diversified selection of federal,
provincial and municipal bonds maturing within five years, as well as high quality
bank paper." It does not include other corporate bonds.
Municipality of Clarington
Report FND-010-16 Page 3
1.6 The High Interest Savings Account (HISA) of the One Fund is strictly a savings
account that meets the objectives of the Municipality's investment policy. It is
offered by the One Fund through a Schedule I bank. It would be intended to
maximize interest return with the high liquidity of a savings account. Currently
the One Fund HISA is offering a bonus interest rate of 1.10% until July 31, 2016.
This is a new product offering of the One Fund to allow municipalities a greater
rate of return on a liquid investment based on combining balances to have bulk
investment rates available.
2.0 Concurrence - Not applicable
3.0 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
approved signatures to establish accounts for The Municipality of Clarington with
the One Fund High Interest Savings Account. The structure of the account is
such that a combination of two of the signatures is authorized on behalf of the
Corporation to sign agreements and other documents and deliver such
instructions as may be required by the bank.
Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by: Reviewed by:
Nancy faylor, f3BA, CPA, CA Kaalin Wu,
Director of Finance/Treasurer Chief Administrative Officer
NT/cc
Staff Contact: Nancy Taylor, Director of Finance/Treasurer, 905-623-3379 ext. 2602 or
ntaylorZ( clarington.net
Attachments: N/A
The following is a list of the interested parties to be notified of Council's decision:
One Fund