Garden River First Nation
Managers and Staff

Garden River Trust

The Trust held their 4 th annual (referendum) Community Approval Process – CAP Vote on Friday September 9, to coincide on the historically-significant Robinson-Huron Treaty. It was a mere 155 years ago that the Treaty was signed on this day. As this day is a day of reflection of Garden River's past, it is also a day to participate in Garden River's future, by voting the Trust's CAP Vote.

As many of you may remember, back in 1994 when the four Agreements were signed, one such Agreement was to build a new four-lane highway through the First Nation. Before construction was to begin, the highway corridor lands had to change from federal to provincial jurisdiction. Once this transpired, the Ontario provincial government compensated the First Nation approximately $7.0 million. In October 1994, all Garden River First Nation band members were given a $1,000 as a per capita distribution. The remaining monies, $4.9 million, was settled into a trust fund known as the Garden River First Nation Community Trust.

These (capital) monies of $4.9 million are invested annually in various federal and provincial grade bonds to generate interest or income annually. This annual interest is used to operate the Trust office as well as fund proposals that the Garden River band members approve by way of referendum, or CAP Vote.

To commemorate the significance of Garden River's past via the Robinson-Huron Treaty signing, the Trustees conduct the referendum, or CAP Vote, on September 9 – to tie the past with the present to strive for the future.

Article 12: Spending Trust Property for Purposes Other Than Buying Land

There were six such proposals on the September 9, 2005 Trust ballot. These proposals were:

Funding the 2006 pow-wow

Garden River Health Centre's Home and Community Care (Elders') Program

Adults in Motion gym and furnishings

Addition to Education Centre

Band office renovations

Garden River Development Corporation's construction (equipment) for the golf course

As per the Trust Agreement, for any of these proposals approved for Trust revenue funding, a minimum of 35% +1 of the eligible GRFN Voters are required to participate. Unfortunately, the 35% +1 meant that a minimum of 397 GRFN Band members were required to participate during September 9's CAP Vote. However, the numbers of Band members participating fell short; approximately 70 more ballots were needed to make the Vote valid.

Article 17: Changing the Terms of the Trust Agreement

As well on the ballot, there were questions regarding changes to the Trust Agreement and what the Trust is allowed to currently invest. As the Trust may be considered a long-term bank account for the present and, more specifically, future generations of Garden River, it makes good sense to plan for those future generations today. However, as the Trust is currently written, the Trust can only invest in federal and provincial bonds. These bonds have been generating an annual average rate of return (or interest) at 5%. This rate of return and investment plan has fit the needs of the present day operations of the Trust. However, it does not address the long-term needs, such as growth in capital dollars.

Currently, the capital dollars have remained at $4.9 million since 1997 when the Trust monies were settled into the Trust Account. With the annual rate of inflation set at 4.1%, there is little or no room to grow the interest, much less the capital dollars.

Thus, one of the main reasons to change, at least the investment terms of the Trust Agreement, is to allow for growth of capital dollars by investing in the stock market. The Trust can only accomplish this change in investment strategy by obtaining GRFN Band members' approval, according to Article 17 of the Trust Agreement. However, to change any terms of the Agreement, the Trust states that a minimum of 50% +1 of the eligible voters are required to participate in such a Vote.

Since 2002, the Trust has annually sought GRFN Band membership approval on changing those investment terms of the Trust Agreement. Again, on September 9, 2006, the Trust will attempt to obtain GRFN Band membership approval on changing those (investment) terms of the Trust. If successful, the Garden River First Nation Community Trust will uphold the "prudent investor" clause, a June 2000 amendment to the Ontario Trustee Act.

Using the professional investment services of the corporate Trustee, Scotia Trust, the Trust will develop a portfolio that fosters long-term capital growth to meet short-term obligations.

For more information regarding the above, please contact Alanna Jones, Trust Manager at 942-1825, or toll free at 1-877-942-1825, or email at grfntrust@gardenriver.org

Other than the daily management and administration of the Trust Property, according to the Trust Agreement, the Trust also produces for GRFN Band members an annual audit and administration report. To obtain the most recent copy, please contact Alanna.