Police Commission Opts To Invest Accumulated Surplus Through The City
By Robert Thomas
It is a discussion many people will never have and wish they did.
That is what to do with surplus funds after all of bills have been paid.
But it was a discussion the Moose Jaw Board of Police Commissioners (MJBOPC) had at their monthly meeting on Tuesday afternoon - where to invest their surplus funds.
Better known as their Accumulated Surplus account.
The issue of where to invest the funds came up in response to a letter from City of Moose Jaw financial director Brian Acker.
Acker had written the MJBOPC requesting permission to invest the Moose Jaw Police Service's accumulated surplus through the City's reserves money manager RBC Dominion Securities.
The request, if approved, would be retroactive to 2022.
Speaking to the request Chief Rick Bourassa said there was risk in the proposal.
“If the investment turns (into a dropping investment) we could lose money but that’s the risk of any investment,” Chief Bourassa told Commissioners.
Commissioner Mayor Clive Tolley said the markets were not doing well at the present time.
“I don’t think it’s any secret that investments right now aren’t doing very well…we shouldn’t expect to make a lot of money.”
The specter of a potential financial loss, given the present financial markets, had Commissioner Darrel Markin wondering if the investment scheme was not a bad move.
“If that’s the case so we don’t lose any money can we invest it ourselves in a GIC?” Markin said.
Commissioner Tolley said plans were not to move the funds into stocks which over a good portion of 2022 been experiencing financial losses.
“The fund he (City of Moose Jaw financial director Brian Acker) is suggesting moving it into is where they have moved (other) funds into. GICs (Guaranteed Investment Certificates) and bonds.”
Commissioner Tolley said “personally I don’t think we should invest it ourselves.”
Investing the MJPS's accumulated surplus has earned substantial returns in previous years.
According to the report the MJPS's accumulated surplus earned $27,797.76 in 2020 and $21,239.17 in 2021.
The Accumulated Surplus for the MJPS is an account of all monies not spent during the course of the budget year. The account is made up of budget surpluses plus interest less spending over the years.
What happens to the MJPS's accumulated surplus is at the sole discretion of the MJBOPC not the City.
These non-spent funds do not return to City of Moose Jaw coffers but go into the MJPS's Accumulated Surplus which is then managed by the MJBOPC under the conditions of the Saskatchewan Police Act.
The actual total of the overall Accumulated Surplus as well as the final 2022 budget surplus is expected to be made public at the Police Commission's February meeting.