City invests for long term with PDI sale proceeds
Council rejects spending or giving away the $57.9M in proceeds
City council has voted to invest the $57.9 million in proceeds from the sale of Peterborough Distribution Inc. (PDI) to Hydro One into a higher-return portfolio through Toronto investment firm ONE Investment after all — never mind hearing from all the proponents who had other investment ideas.
Earlier this month, council had planned to hear from all proponents who had other ideas for investment for the proceeds. For example, Community Foundation of Greater Peterborough asked council to consider investing $10 million with it to create a revenue stream that could help fund social and climate projects.
Councillors planned to hear from all the proponents in March before making a final investment decision. But council voted Monday night to go instead with a recommended course of action from city staff to invest with ONE for now and consider potentially later withdrawing some money (no more than 50 per cent of it) to back the city’s own power generation company (City of Peterborough Holdings Inc., or CoPHI).
The plan to decide on investment on the spot on Monday was moved by Coun. Andrew
Beamer, who sat on the working committee with city finance staff and finance chair Coun. Dean Pappas and vice-chair Coun. Keith Riel that developed the investment recommendations.
“This is taxpayer money — we shouldn’t be spending it, granting it or giving it away,” Beamer said. “(We need to be) investing every penny of it — long term.”
“There is still great risk in the city’s financial outlook,” said Pappas, as he agreed the proceeds ought to be invested as recommended. “My first priority is to look after the citizens of Peterborough — and look after the books, which are already in trouble.”
Other proposals included investment through a local bank (BMO Wealth Management, as proposed by George Ripoll), a home retrofit program (as proposed by Al Slavin) or a trust fund for renewable power generation (as proposed by Transition Town founder Fred Irwin).
Coun. Stephen Wright spoke in favour of the plan to hear from all proponents in March, saying “brilliant ideas” were offered to the working group and he wanted to hear those in a public forum, in the spirit of “transparency.”
But Coun. Lesley Parnell agreed the money needs to be invested for the best returns possible.
“We cannot spend it. It must be invested.”