The City of Kamloops is working to keep investment revenues afloat as returns gradually decrease.

Finance director Kathy Humphrey says under the Community Charter, the city is limited with where it can invest money.

“We can’t just go buy random stocks or invest in different things. So we are really at the mercy of interest rates.”

She points out interest rates have plummeted in the past year, because of the pandemic.

“Which if you are borrowing money has been fantastic, because interest rates are really low. If you are investing money, not so great because interest rates are really, really low. So we’re not making very much on the money we have invested,” Humphrey says.

“But we are doing as best we can. And our finance team who look after the investments has done a great job working with our partners to make the most of a very low-interest situation.”

Last year, investments made up 2.3 per cent of the city’s entire income, totalling more than $4.2 million. That included $3.5 million in investment interest and $737,000 in bank interest.

Financial services manager Lewis Hill says the city is expecting a modest drop this year in returns, but say investment revenues should still remain stable.

Hill explains that because of the pandemic impacts, the city isn’t able to re-purchase investments at the same rates as it did last year.

He says most of the city’s investments are held for two years before they mature, meaning some investments will be banked this year that were made prior to the pandemic when investment rates were more favourable.