The Board of Police Commissioners plans to invest its 2022 accumulated surplus with the City of Moose Jaw’s stock portfolios, with the amount invested possibly being $300,000.
During its Jan. 17 meeting, the board voted to have city hall invest those funds in the municipality’s moderate-term portfolio — which RBC Dominion Securities manages — retroactively to Jan. 1, 2022.
The board oversees the Moose Jaw Police Service (MJPS) and approves its budget, so the commissioners can invest the money on the agency’s behalf. Meanwhile, the police service contracts financial services provisions from city hall.
A board report indicated that the interest generated on accumulated surplus amounts was $27,797.76 in 2020 and $21,239.17 in 2021, for a total of $49,036.93. Furthermore, since the investment is currently “just on paper” and can be reallocated, the funds don’t have to be invested, or the interest can be added to the police service’s accumulated surplus upon board approval.
Police Chief Rick Bourassa explained that although the agency doesn’t know the final surplus number yet — and won’t until February or March — city finance director Brian Acker still wants approval to invest the surplus.
However, based on the police service’s 2022 budget summary document — still subject to change — it’s likely that the surplus could be roughly $300,000.
The MJPS expended 99.1 per cent of its net budget last year, according to the report.
By Dec. 31, 2022, the MJPS had spent $12.4 million of its $12.7 million expense budget — or 97.73 per cent — leaving $288,973.47 in unspent expenses.
Meanwhile, it had acquired $1.3 million out of a projected $1.5 million in revenues — or 88.02 per cent — leaving $188,253 in unspent revenues.
Overall, net budget expenses were $11.06 million compared to the budgeted $11.16 million — or 99.1 per cent — leaving a net surplus of $100,720.47.
However, Bourassa pointed out that there is still $188,253 in outstanding revenues. Once that arrives, that would leave the police service with a surplus of “several hundred thousand dollars.”
By adding that number to the net surplus, the police board could have $288,973.47 in accumulated surplus available to invest.
Bourassa later told the media that after paying outstanding bills, the surplus might likely be closer to $200,000.
“I sit on the city’s finance committee, and I don’t think it’s a secret that things that are risky currently are not doing well,” said commissioner Clive Tolley. “Interest rates are going up, so we have a limited ability to earn income on our investments, (which are) very, very poor compared to the previous couple of years.
“So, we shouldn’t expect to make a lot of money back.”
Commissioner Darrell Markin wondered if there was a more secure financial vehicle to invest the money, such as guaranteed investment certificates (GICs). He noted that those have less risk and could ensure that the police board receives back what it invested.
City hall has recently taken plenty of money from the moderate-term portfolio and invested it in more stable accounts such as GICs and bonds, said Tolley. However, he didn’t think the board should invest the money itself, noting the investment committee’s most recent action was to change the portfolio to stabilize it and work for less risk.
New chair and vice-chair
The police board’s first action during its meeting was to elect a chair and vice-chair. Members elected Mary Lee Booth as chair and Doug Blanc as vice-chair.
Destiny Gibney, director of legal services for the MJPS, also administered the oath of office for each member.
The next police board meeting is Thursday, Feb. 9.
