Investments - The City of Red Deer

The City of Red Deer has a number of short and long term investments. On a continual basis The City monitors its investments as these can change daily depending on the investment industry.

Funds are invested in highly rated investments on average as follows:

Federal, Provincial and Municipal Governments

30 per cent

Banks

60 per cent

Other Corporate Bonds and Commercial Paper

7.5 per cent

Non-Bank Asset Backed Commercial Paper

2.5 per cent

What are investments?
Investment is another term for savings. The City has both short term and long term investment funds. An example of short term investments that an average household may have are: savings accounts at a financial institution. As for long term investments an example would be a Registered Retirement Savings Plans (RRSP).

Why does The City invest?
The City invests money as a means to save funds until needed. As do many individuals and businesses who invest to increase savings, so does The City. The City’s primary investment goal is the preservation of capital.

What money does the City invest?
Money invested by The City represents current year taxes received but not yet spent, advances on provincial grants and various operating and capital reserves.

Are there any guidelines The City must follow when short term and long term investing?
The City has an investment policy and must follow the Municipal Government Act.

What is the short term investment rating system?
An R1 High is the highest credit quality and indicates the lowest risk of short term investment loss. R1 Mid is rated as the second highest while R1 Low is the third. The ratings are provided by the Dominion Bond Rating Service (DBRS).

What is the long term investment rating system?
Debt rating categories for long term investments are also rated by the DBRS. The City invests in AAA to A which is rated at the lowest possible risk. Investments rated below A- or equivalent at time of purchase are not permitted according to The City’s investment policy.

To view more information on the rating system visit the Dominion Bond Rating Service website

For more information regarding City investments contact: The City of Red Deer, Finance Department.

Office Hours:	Monday to Friday, 8:00 a.m. – 4:30 p.m.
E-mail:	accountsreceivable@reddeer.ca

Phone:	Accounts Receivable/Utilities 403-342-8575
Fax:	Accounts Receivable/Utilities 403-342-8116

Street Address:	City Hall 4914 - 48 Avenue

Mailing Address:	P.O. Box 5008 Red Deer, AB, Canada T4N 3T4