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HomeMy WebLinkAboutBy-law No. 2002-095 CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO.2002-95 BEING A BY-LAW TO ADOPT A POLICY ON INVESTMENTS WHEREAS the Council of the Municipality of Bayham recognizes the need for a clear and concise set of policies concerning investments; AND WHEREAS the Council of the Corporation of the Municipality of Bayham deems it advisable that the Policy on Investments be confirmed and adopted by By-law; THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT effective upon passage the Policy on Investments attached hereto as Schedule"A" and forming part of this By-law is hereby adopted as the policies and procedures in the management of investments of the Municipality of Bayham. 2. THAT this Investment Policy By-law may be amended from time to time as directed and deemed necessary by the Council of the Corporation of the Municipality of Bayham. 3. THAT any investment policies previously adopted are hereby repealed; 4. AND THAT this by-law shall come into full force and effect upon final passing. READ A FIRST, ASECOND AND THIRD TIME AND FINALLY PASSED THIS 19Th DAY OF DECEMBER 2002. MAYER CLERK Schedule "A"to By-law 2002-95 Policy and Procedures Investments Goals and Objectives 1. To ensure compliance with the Municipal Act and any regulations pertaining thereto. 2. To preserve the capital of all investment funds. 3. To optimize the rate of return on all investments. Guidelines 1. Investments must be made only in those securities prescribed in the Regulations pertaining to the Municipal Act (currently O. Reg. 438/97, as amended). 2. Investments should vary in type and maturity date. 3. Investments may be made through ONE—Public Sector Group of Funds or another broker that the Municipality chooses to engage so long as that broker is aware of and adheres to the stipulations set out in the Municipal Act and any regulations pertaining thereto. 4. Council may establish one or more accounts with the investment broker of choice so long as the return on investments is allocated in direct proportion to the funds and/or reserves from which the capital was obtained. 5. Professional financial advice should be sought from the broker with regard to market conditions,the type of investments currently available and the expected rate of return. 6. Professional legal advice shall be obtained in all instances where the eligibility of any security is in question. 7. The treasurer shall be directed by Council to apply and adhere to this policy with regards to investment deposits and withdrawals and shall report to Council once per year as to the transactions undertaken, the rates of return achieved and the current status of any investments. 8. The Municipality of Bayham is not rated for credit purposes and therefore cannot invest directly in commercial paper or asset-backed securities as defined in O. Reg. 438/97, as amended. It may however invest indirectly in these securities through ONE—Public Sector Group of Funds.