YORKTON — City council in Yorkton has approved a new investment policy aimed at generating stronger long-term returns to help fund infrastructure projects across the city and the broader east-central Saskatchewan region.
The bylaw formalizes a shift in how the city manages its reserve funds, allowing for a more diversified investment approach as interest rates trend downward.
City administration says the updated policy reflects a changing financial landscape and the need to balance risk with improved returns over time.
Under the approved plan, Yorkton will invest an initial $10 million from reserve funds. Half of that amount will be directed to a pooled municipal investment fund called SUMAInvest, while the remaining funds will be managed by an external investment professional selected through a request-for-proposals process.
The pooled fund is designed specifically for Saskatchewan municipalities and includes a mix of asset classes, including equities, real estate, infrastructure and fixed income.
According to the administration, the fund has posted average annual returns of more than 10 per cent over five years and roughly eight per cent over 15 years.
Officials note the investments will remain relatively liquid, allowing the city to access funds when needed for capital priorities.
The move comes as Yorkton continues to plan for significant infrastructure demands, including roadwork, water systems and public facilities.
Administration says municipalities typically build reserves gradually to avoid large tax increases when major projects arise. A long-term approach, they note, allows costs to be spread out more evenly over time.
Historically, the city has relied on lower-risk options such as guaranteed investment certificates and high-interest savings accounts. While those provided stable returns, officials say they are less effective in the current environment.
The new policy allows for a measured level of risk in exchange for potentially stronger long-term gains.
“There is always the risk of losses,” the city noted in its report, adding that a diversified portfolio and long-term outlook are expected to help offset short-term fluctuations.
The updated framework also streamlines the previous policy by removing detailed procedural elements and relying instead on broader guiding principles, along with existing bylaws, to define oversight and responsibilities.
City officials say the goal is to reduce duplication while maintaining strong financial controls.
