This release was issued under a previous government.
Medicine Hat joins Edmonton and Calgary as the third city in Alberta to be included in the Major Cities Investment Regulation, which allows municipalities enhanced flexibility and independence to invest the money in their reserves.
This regulation will expand investment opportunities for Medicine Hat’s reserve funds. The City is looking to initially invest about $180 million with the Alberta Investment Management Corporation, which will serve as the investment manager.
“It’s important that we build robust and resilient communities across Alberta. The City of Medicine Hat has more than $300 million in reserves. Our government supports Alberta’s municipalities in making prudent financial decisions and this decision will benefit Medicine Hat residents.”
“This approval is significant for the City of Medicine Hat. It is fundamental that the City, as owners and managers of its utilities, has greater control of its resource revenue. I would like to express my thanks to the province for supporting and providing the City of Medicine Hat with this additional authority.”
“We are very excited that the provincial government has recognized that Medicine Hat has the reserves to invest and the financial knowledge and prudence to make sound investment decisions for the financial future of our residents. This City is unique in many ways and now to be granted Major Cities Investment Regulation status means more opportunities to achieve investment returns.”
Without the Major Cities Investment Regulation, investments for Alberta’s municipalities are limited to interest-bearing securities. The regulation allows eligible municipalities to access a broader range of investment opportunities, such as equities (e.g. shares of companies) and lower-rated securities (e.g. a BBB rating) which will potentially generate better investment returns, but with some associated risk related to market volatility.
The City has developed a policy to govern the investment of its reserve funds from the City’s resources such as oil and gas reserves.