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Home My WebLink AboutFebruary 15, 2024 - Council - AddendumTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING ADDENDUM Thursday, February 15, 2024 13.2 E Report TR-04/24 by Lorne James, Treasurer re 2023 Investment Report 13.2 F Report TR-09/24 by Lorne James, Treasurer re 2023 Development Charges REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 15, 2024 REPORT: TR-04/24 SUBJECT: 2023 INVESTMENT REPORT BACKGROUND Section 8(1) of Ontario Regulation 438/97 requires the Treasurer to prepare and provide to Council, each year, an Investment Report concerning any prescribed investments the Municipality has under said regulation. At its June 15, 2023 meeting, Council received Report TR-12/23 re PSAB 3450 Financial Reporting Impacts and Investments. The Report identified that PSAB released a standard related to Financial Instruments (PS 3450). The standard applies to all local governments for fiscal years beginning on or after April 1, 2022. The standard requires that all financial instruments, which include the One Fund Investments, be reported at fair market value in a statement of remeasurement gains/losses and to disclose any risks associated with its financial instruments. Council passed the following motion: Moved by: Deputy Mayor Weisler Seconded by: Councillor Chilcott THAT Report TR-12/23 re PSAB 3450 Financial Reporting Impacts and Investments be received for information; AND THAT staff be directed to sell the entire LAS Investment – One Fund portfolio; AND THAT staff be directed to purchase 18-month GICs for all investment accounts from RBC Investments. DISCUSSION Attached hereto is a summary of the portfolio performance for the year 2023. All investments listed are short-term, meaning the Municipality can withdraw funds at any time. The exception to this are the municipal drain/water debentures held in fixed GIC 1-year term bonds. The municipal drain/water debentures portion of the portfolio is less than 4 percent. All of the Municipality’s investments are with Royal Bank of Canada (RBC) in High Yield GIC bonds. The Municipality sold 57 percent of their investment with ONE Investment Bond fund in spring of 2023, to recognize the coupon loss of the investment due to the changes in Public Sector Accounting standards in relation to unrealized gains or losses on investments. One Investment is wholly-owned subsidiaries of Association of Municipalities of Ontario (AMO) and the Municipal Finance Officers Association (MFOA) respectively. All of the Municipality’s previous funds were in The One Fund and were invested in the Bond Portfolio, which is comprised of treasury bills, guaranteed investment certificates, and government bonds. The One Fund Program and Royal Bank of Canada GICs meet all the investment requirements of Regulation 438/97 and the investment policies established by By-law No. 2002-095. ATTACHMENTS 1. Investment Report for the year 2023 STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. RECOMMENDATION 1. THAT Report TR-04/24 re 2023 Investment Report be received for information. Respectfully submitted, Reviewed by, Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer Account Description Balance Sale of Loss on 2023 Advances Balance Interest #Dec-31-22 Invesmtents Invesments Interest (Withdrawals)Dec-31-23 Rate General & Reserve Funds 01-0100-1030 General Surplus Funds - 99,929.76 - - - 01-0100-1035 Short term Holdings 1-YR GIC - RBC 2,039,205.45 50,794.55 (2,090,000.00) - 4.50% 01-0100-1035 Short term Holdings 1-YR GIC - RBC 506,955.34 25,743.91 532,699.25 5.75% 01-0100-1035 Short term Holdings 1-YR GIC - RBC 22,797.95 500,000.00 522,797.95 5.25% 01-0100-1035 Short term Holdings 1-YR GIC - RBC 57,174.66 1,500,000.00 1,557,174.66 5.25% 01-0100-1035 Short term Holdings 1-YR GIC - RBC 31,900.68 1,500,000.00 1,531,900.68 5.75% 01-0100-1035 Short term Holdings 1-YR GIC - RBC 2,693.84 250,000.00 252,693.84 5.70% Short term Holdings 1-YR GIC RBC- Straffordville Cem 455.96 10,000.00 10,455.96 5.25% Short term Holdings 1-YR GIC RBC - Bayham West Cemetery 190.58 5,000.00 5,190.58 5.25% Short term Holdings 1-YR GIC RBC - Eden Cemetery 190.58 5,000.00 5,190.58 5.25% 01-0100-1176 Recievables Debentures - Rich 207,757.33 6,446.17 (24,854.40) 189,349.10 3.10% 01-0100-1177 Drain Debentures - - - - - - 01-0100-1460 General Funds 835,110.28 (740,459.10) (94,651.18) - - 0.00% 01-0100-1461 Reserve Funds 2,183,658.54 (1,905,581.30) (278,077.24) 84,756.90 3,245,421.46 3,330,178.36 5.75% 01-0100-1470 Eden Cemetery 16,673.49 (14,507.31) (2,166.18) 388.52 14,507.31 14,895.83 5.75% 01-0100-1475 OMPF 619,104.01 (541,572.02) (77,531.99) - - 0.00% 01-0100-1480 Parkland Reserve Funds 23,481.26 (20,665.21) (2,816.05) - - 0.00% 01-0100-1490 Development Charges 42,184.12 (37,143.83) (5,040.29) - - 0.00% 6,474,129.82 (3,259,928.77) (460,282.93) 383,464.06 4,915,074.37 7,952,526.79 Allocation General Fund (63,476.32) 243,967.01 DC Charges 1,992.08 Cemetery Boards (2,166.18) 1,225.64 Reserve Fund (394,640.43) 136,279.33 (460,282.93) 383,464.06 Trust Funds 01-5050-1440 Cemetery Maintence &Care 271,061.74 (238,687.52) (32,374.22) 6,392.25 238,687.52 245,079.77 5.75% Municipality of Bayham Investment Report - For the Year 2023 Appendix "A" Report TR-04-24 REPORT TREASURY DEPARTMENT TO: Mayor & Members of Council FROM: Lorne James, Treasurer DATE: February 15, 2024 REPORT: TR-09/24 SUBJECT: 2023 DEVELOPMENT CHARGES BACKGROUND In 2022, the Municipality retained Watson & Associates Economists Ltd. to undertake a Development Charges Background study and update the Municipality’s development charges. The study provides a detailed explanation of the Municipalities development charge policies, relevant legislative requirements and restrictions as well as summary of the rate setting process and eligible costs. The Municipality’s 2022 Development Charges Background Study is available on the Municipality’s website for those looking for additional information not contained within this Report. At its October 6, 2022 meeting, Council received and adopted By-law No. 2022-067, establishing development charges for Bayham’s wastewater system and two water systems. The Development Charges Act, section 43(1) states that “The Treasurer of a municipality shall each year on or before such date as the council of a municipality direct, give the council a financial statement relating to development charge by-laws and reserve funds established under section 33”. In addition, paragraphs 12 and 13 of Ontario Regulation 82/98 indicate the information to be included in the report. Schedule “A” provides a summary of the development charges collected during 2023 as per the Municipality’s Development Charges By-law, including reserve fund transactions and balances. Schedule “B” provides a list of growth-related projects that have received contributions from the development charges reserve funds in 2023. The Municipality collects Development Charges generally at the time of issuance of building permits, as per Section 26 of the D.C Act, 1997. DISCUSSION Funds remaining in the Development Charges Reserve Fund are considered to be committed for projects as identified in the 2022 Development Charges Background Study. The funds will be used to offset growth-related capital projects as eligible costs are incurred. No amounts have been borrowed from the funds during the year or in any previous years. Therefore, no amounts have been repaid for any previous borrowings as there have been previous borrowings. Further, the Municipality is in compliance with the Development Charges Act prohibiting additional charges related to development-related costs that are not allowed for in the Act or other Acts. Attached hereto is a summary Development Charges in 2023. ATTACHMENTS 1. 2023 Development Charges – Water and Wastewater STRATEGIC PLAN 3.2: Quality of Governance > To continually demonstrate financial responsibility to the community. Initiative(s): Not Applicable. RECOMMENDATION 1. THAT Report TR-09/24 re 2023 Development Charges be received for information. Respectfully submitted, Reviewed by, Lorne James, CPA, CA Thomas Thayer, CMO, AOMC Treasurer Chief Administrative Officer Account Description Balance 2023 2023 2023 Balance Interest #Dec-31-22 Collections Interest Capital Dec-31-23 Rate 2400 Water - Bayham -$ 18,779.61$ 488.27$ -$ 19,267.88$ 5.20% 2401 Water - Richmond -$ -$ -$ -$ -$ 2402 Waste Water -$ 57,838.84$ 1,503.81$ -$ 59,342.65$ 5.20% Municipality of Bayham Development Charges - For the Year 2023 Appendix "A" Report TR-09-2024