Written By David Gomez, Local Journalism Initiative Reporter
ADELAIDE METCALFE - Council reviewed and discussed the 2023 Treasurer’s Investment Report, during the June 17 council meeting, highlighting the township’s financial performance over the past year.
Mayor Sue Clarke opened the discussion, inviting Johnny Pereira, the township treasurer, to present the report. Pereira explained that the report was prepared to comply with the annual reporting requirements under the township’s investment policy and the Municipal Act. The report provides transparency on the township’s investments, detailing their performance and total returns.
“The township implemented a new investment policy in late 2022,” Pereira noted. “2023 was the first full year under this new policy.” He highlighted that the township had several matured investments, including a $4 million Guaranteed Investment Certificate (GIC) that matured at the end of 2023, earning a significant interest rate of 5.64%.
In 2023, the township earned $227,000 in investment income, a notable increase from the $153,000 earned in 2022. Additionally, the township benefited from competitive interest rates on cash balances
held at Libro, earning the Bank of Canada prime rate less 1.5%. This resulted in $424,000 of interest income on cash balances, compared to $268,000 in 2022.
Pereira explained that the township’s investment strategy included entering into several staggered multi-year GICs to maximize high interest rates available in late 2023. This approach aimed to ensure that the township’s funds were effectively managed and provided a stable source of revenue.
During the discussion, Councillor Garett Kingma expressed satisfaction with the township’s decision to lock in a five-year investment for the landfill reserve, citing recent information about post-closure obligations. He also inquired about the possibility of investing funds from the building fund reserve.
Pereira responded that the building fund reserve is highly restricted and designated for building services only. However, he assured council that further investigation would be conducted to explore potential investment opportunities for those funds.
Following the presentation and discussion, council moved to receive the 2023 Treasurer’s Investment Report for information. The motion was moved by Councillor Kingma and seconded by Councillor Noordhof, receiving unanimous approval.
