Whereas financial investments form a critical part of the activities of a municipality, providing a source of revenues for capital expenditures and to offset cash flow fluctuations; And whereas allowable investment parameters as laid out in the Community Charter is considered a prescribed set of legislated guidelines; And whereas the Provinces of Alberta and Ontario have implemented a wider scope for local government investment, which responds to the needs of local governments of all sizes: Therefore be it resolved that UBCM request the Ministry of Municipal Affairs and Housing to amend the Community Charter to provide municipalities with the ability to obtain improved returns through asset class diversification, which in return can reduce tax implications and funding costs associated with capital funding, while also reducing investment risk.
Ministry of Municipal Affairs and Housing Local governments are responsible for public money from taxpayers, developers, and others for provision of core services and upkeep of critical infrastructure. As such, preservation and protection of financial capital is the foremost objective of provincial legislation governing local government investments. Accordingly, the current legislation limits investment risk and guides local governments toward high-quality, secure investments that will contribute to the fundamental goal of capital preservation while allowing a reasonable rate of return. Under the current provisions, all local governments, regardless of size and capacity, have access to a prescribed list of allowable investments including the Municipal Finance Authoritys MFAs pooled investment funds. As the Provinces primary objective regarding local government investments is to ensure protection of capital through low-risk instruments, the Ministry is not currently prepared to expand the allowable investment provisions.