Body: Council Type: By-law Meeting: Regular Date: 2018 Collection: By-laws Municipality: South Frontenac
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TOWNSHIP OF SOUTH FRONTENAC BY-LAW 2018-49
A-BY-LAW To AMEND BY-LAW NUMBER 2016-05, AS AMENDED. TO REPLACESCHEDULEA —-. –, T. ^., ^^, WHEREAS, the Municipal Council of the Township of South Frontenac deems it expedient to amend by-law Number 2016-05 as amended, as it relates’to “the replacement of Schedule A.
NOW._THEREFORE THE CORPORATION OF THE TOWNSHIP OF SOUTH
FRONTENAC BY ITS COUNCIL, HERBY ENACTS AS FOLLOWS:
THATScheduleA berevoked andreplacedwithScheduleA datedJuly3rd,2018.
THISBY-LAWshallcome intoforceandtakeeffectonJuly3rt, 2018.
Dated atthe Township ofSouth Frontenac this 3rddayofJuly, 2018. Reada first andsecond time this 3rddayofJuly, 2018.
Reada thirdtimeandfinallypassedthis3rddayofJuly,2018. THE CORPORATIONOF THE TOWNSHIP OF SOUTH FRONTENAC
^
Ron Vandewal, Mayor
W^fn
lerk-Administrator
Schedule A - Investment Policy Policy Statement
The TownshipofSouthFrontenac shall invest funds, not immediately required, to ensure the safetyofprincipalandto maintainadequateliquidityto meetexpectedcash requirements whilemaximizingtherateofreturn andsubjectto complyingwith
Ontario’sEligibleInvestments andRelatedFinancialAgreements Regulation.
^/OTmshi?nhas ^thorityto ;nYestfunds undersection 418 ofthe Municipal Act, I, S’. U. 200?, c. 25 as amended. -… -.,-. .. -, Purpose
This Policyprovidesguidanceforthe managementoftheTownship’sinvestment
fundsincludingrestrictionsandlimitations,risktoleranceandinvestmentobjectives. Application
-h’s-polk:y applies to alnnvestments madeon behalfoftheTownship, including
operating funds, reserve funds, capital funds and trust funds. Policy Requirements Objectives
Theinvestment objectives fortheTownship, ranked inpriority, areasfollows: a) Securityof Principal
neprimaryot’jectiveoftheTownship’sInvestmentPolicyistoensurethesecurityofprincip IomnlmLze.ther’sk. °f..l°s.s-investme"tsshallbesubjecttoa minimum’credit’ratings’andsL’l ! diversifiedbymaturity, typeofinvestmentandissuer,asfollows:
^tT.en.t ,R,atLnq,8,’ ^tme. nt"hallonly bemadeJn eli?ibtesec”"«eswitha minimumcredit
rS^V^ntarl° Regulation438/97’El^l-stments’a^^a^^^1 Ie^toMaJU L"Y-of !nvestments’_lnve. sting activities should be reviewed
on a
regular basis as
^S£‘555£pe^g?d^?l=a^ ?SdonZtyaSsahsould so that investment cash inflows occurthroughout theyear b) Liquidity Requirements
Liquidityismeasuredbytheeasewithwhichsecuritiescanbeconvertedtocashtomeet
SpendingJt isrecognized_thatthevariousinvestments thatareeligibleunderOntario’s E"9iye. ’nvestmentsand Related Financial Agreements Regulation;posse^different featur es0 a-nd..thus. market. _prices wi" vary dePendin9 market conditionsr as’well~as"the pa"rticd°ar on
of the type of investment.
Toensureadequateliquidity, theTownship’s investments shallbediversifiedbyholding
securities ofvarious terms to maturity and by various types of investments and issuers and
to the extentpossible, theterm ofsuchinvestments shall matchtheforecasted requireme’nts
for such funds to meet expenditures. c) Rate of Return
TheTownship’s fundsshall beinvested to maximizetherateofreturnwithinacceptable risk
levelswhiterespectingthesecurityofprincipal, legalconstraintsandtheadequateliquidity’ needs of each investment portfolio.
Under normal circumstances, longer-term investments offerhigheryields than shorter-term
investments.
Thecompositionofeachportfolio, includingitstermto maturityandtypeofinvestments, shall beadjustedwithintheguidelines ofthisPolicytotakeadvantage ofmarket opportunities". ‘Such’ changesshallbemadewiththeperiodicinterestrateoutlookandtargetportfoliostructure' approved by the Township reasurer and CAO. Constraints
TheTownship’s investments aresubjecttothefollowing regulatory andterm constraints: a) RegulatoryConstraints
l^aSan<ce,w nontah^EI.‘gLt>teJnvestmenteand.RelatedFinandalAgreementsRegulation
{M^!ci^Acli2w1:°.. Re9438/g7- as ^ndecy, theTownshipTs nSt"aut’hori°2edTTnv^t in securities other than those listed in the Regulation.
b) Term of Investments
A detailedcashflowforecastforuptotwoyearsshallbemaintainedtodetermine short-term
“quMity.requiremel1ts:Thlsforecastsha"all°wtheTownshiptomaximize"theretumonsurplus
fundsinvestedandminimizeborrowingtemporarilyforoperationalpurposes.
FurthT’amediumtoton3-termforecast of3+yearswillbemaintainedfactoringforecasted
operating andcapital requirements inorderto determine liquidityrequirements. c) Direction of Investments
Available fundswillbemanaged between bankaccounts, theLASOneInvestment Program and TheJ°hnson’ Johnston & Macrae Investment Group CIBC Wood Gundy. “Direct iini ve^me’nt°i’nu equ esw"l.or"ybethrou9htheLASone lnvsstment Programuntilotheiwisepermitted I
another investment manager.
I^yes.tm.e,r!t^>f.the. funds thI;oush. The Johnson. Johnston & Macrae Investment Group
l_Gundy will beon a discretionary basis which means that the term~struc’tur’e"an>cT
CIBC
^omp°s’to^?, portf°lios_pr°vided wi"be used byJohnson- Johnston & Macrae Investment
I Gundy to manage investments funds based on these guidelines without
need’n9toconfirm evei-ytransaction beingperformed; The-term’struclure"w1lT’beou’tUned ‘mu
and1an^;”’:est-ment, °f-anyfu’}dsand.UPdatedthroughregular’communicati’cTn b"etw^n”’ investment managers) and the Township Treasurer and CA’d.
Responsibilities a) Authority
TheTownshipTreasurerandCAOarejointly responsiblefortheprudentinvestment ofthe Township^ portfolio, itsstrategy andto ensure thatall investments are made in accordance
with this Policy and any legislated requirements.
TheTownshipTreasurerandCAO,withinputfrominvestmentmanager(s),shallreview periodically the interest rateoutlook andboththeTreasurer andCAOwilljointly approve the proposed term structureandcompositionforthe portfolios.
ln.vestmentssha"bemadewith.Lud9ementandcare. Allreasonablestepsshallbetakento
^nsurejhatthe_management ofTownship’sinvestment portfolio is’inacco’rdance’wihthis TOIJC
I^,t9^0Jca^“genc^kilLand^udenc.eth. atal rea^
ld»mm’strati°n. °f-the”‘OTmaffairs mustbeexercised andin-doin~g"soshalT’att’em|rt to’maxlm’Ee" li1einye stment eamings °fthe portfolio within the Parametere"onhe’objectrves"e^tabl’is^ed’w^hin b) Reporting
IhLlr hasLa specifjc_responsibHity to prepare and provide annual ea.suTL°r.todeagn_ate counci’’ °‘Reg-438/97’ s;8 <1)- This report’‘shairc ont’ain’thefoil’o^‘n’g° ^, s:report an
a statement about the performance of the portfolio of investments of the municipality during the period covered bythe report
. a description ofthe estimated proportion ofthetotal investments ofa municiDalit are invested in its own long-term and short-term securities to-thertotal
m-vestment-of the muni(:iPa"ty and a description of the change, “if any, “in"the
'
estimated proportion since the previous year’s report
a. statement by the treasurer as to whether or not, in his or her opinion. all inwstments^were made in accordance with the investments policies’andgo,
adopted bythe municipality
Monitoring/Contraventions
Failureto complywiththis Policymayresult in theTownshipholdinginvestmentswhichare ileinvestments asprescribedbyprovincial regulation.
Legislative and Administrative Authorities Section 418 of the Municipal Act, 2 5.0. 2001, c.25 as amended
orrtm^Re9ulatlon 438/97’B19ibte Investments andRelated FinanaalAgreements, as
