Bracebridge approves investment policy to offset tax pressures

The municipality updated its investment strategy to boost returns and lower reliance on property taxes.

Bracebridge General Committee approved the annual review of the Town's Investment Policy Statement during its November 3, 2026, meeting.

During discussions, Mayor Rick Maloney raised concerns about taxation and the rising cost of living, highlighting the opportunity to leverage municipal investment dollars rather than relying solely on taxation.

The Investment Policy Statement establishes guidelines for managing municipal funds, including investment objectives, risk tolerance and investment time horizons.

According to the staff report, the Town has participated in the ONE Joint Investment Board since July 2020, allowing it to invest through Ontario's Prudent Investor framework.

Provincial regulations require Council to review the policy at least annually and make changes when necessary.

Under the Municipal Act, municipalities participating in the Prudent Investor framework must have their investments managed by an independent investment board.

The report adds that the Town originally approved its Investment Policy Statement in December 2019 before transferring funds to the ONE Joint Investment Board.

The annual review provides an opportunity to assess whether the Town's investment objectives and guidelines continue to meet its financial needs.

The framework provides municipalities with access to a broader range of investment opportunities, offering greater diversification and the potential for improved returns while managing investment risks.

Councillor, Archie Buie, questioned that given they are passing policy and stating guidelines for the investment agency to handle what happens “if something goes wrong” and whether the “liability can come back to the Town.”

The Director of Finance/Treasurer, Paul Judson, explained that the policy provides broad investment guidelines rather than identifying specific stocks or bonds that may or may not be purchased, adding that the Town establishes its objectives and horizons “and allow the entity to implement these things,” and “in a prudent manner” which the board must consider when managing investments.

The Town's Chief Administrative Officer added that safeguards are in place regarding investment decisions, emphasizing the importance of relying on investment professionals with the expertise to manage and diversify municipal investments.