The Town of The Blue Mountains’ investment portfolio made big bucks in 2023.
At its committee of the whole meeting on May 21, council received the annual investment report that detailed the interest earned in 2023 on the money the town holds in its various reserve accounts.
At the end of 2023, the town had $62.3 million invested in various funds. The portfolio earned a total of $3.6 million in interest in 2023 - a big jump from the $2.1 million earned in 2022.
The town has a policy that governs how the money it holds in reserve is invested.
“The town’s investments are diversified into cash and cash equivalents, and variable rate deposits such as high interest savings accounts and Guaranteed Investment Certificates (GICs),” said Sam Dinsmore, the town’s acting director of finance/treasurer, in his report.
Overall, the town’s total investments were down by $4.5 million in 2023, due to withdrawals the town made to fund capital projects.
Dinsmore reported that the interest income was allocated to three different areas:
- Development Charges and other Obligatory Reserve Funds: $1.35 million.
- Discretionary Reserve Funds: $1.44 million.
- General Fund: $810,000.
The money earned on the general fund is included in the town’s operating budget and helps offset the property tax levy.
Dinsmore said he expected interest rates to remain steady in 2024, but added that the town would likely earn less money this year.
“Staff are expecting a slow-down in the interest earned as more of the principal will be spent on large-scale capital projects in 2024 and 2025. Staff will continue to work with experts in the field to maximize the portfolio’s returns,” he said in the report.
Members of council were pleased with the performance of the town’s investments.
“This is welcome news,” said Coun. Shawn McKinlay.
