NRRM considers draft investment policy for $51M+ reserve funds

FORT NELSON, B.C. — The Northern Rockies Regional Municipality (NRRM) is considering adopting a new policy to manage its reserve funds.

At the October 27th committee of the whole meeting, NRRM staff members presented councillors with a draft investment policy for discussion.

According to a staff report, the NRRM currently has no policy for investing reserve funding. 

All of the municipality’s reserve funds are sitting in bank accounts earning interest. As of the end of 2024, according to the NRRM’s statement of financial information, the municipality has $51,559,811 in total reserve funds.

“The NRRM has been successful in building reserve funds for the renewal of assets,” the staff report reads.

“This allows capital projects to be undertaken without the need to borrow from outside sources and incur debt servicing costs. As the reserve funds build for the future, it is prudent to establish options for the investment of these funds.”

The draft policy would see the Municipal Finance Authority of BC (MFA), a financial institution operated by the provincial government, designated as the municipality’s portfolio fund manager for all its reserve money.

The MFA would handle investing the money under the supervision of the NRRM’s financial officer.

“We would be working with [MFA] to put something in place that would allow us the ability to fund projects as we need it,” explained Toni Pike, the NRRM’s director of finance, during the meeting. 

“Liquidity is very important to us as well, so as we move forward, [as] this policy as it stands goes forward, we’ll have the ability to work with MFA to put those things in place. It’s not about moving everything we have, it’s about diversifying.”

Following the committee of the whole meeting, staff members were directed to finalize the draft policy to be brought before council at a future meeting for adoption.