Committee says sell Enwave; no decision on Toronto Hydro
Published Tuesday, November 1, 2011 10:25PM EDT
The executive committee at city hall has voted to sell off the city's stake in Enwave Energy Corporation but has delayed deciding whether to endorse the partial sale of Toronto Hydro.
Instead, the city's executive committee opted Tuesday afternoon to revisit the proposed Toronto Hydro sale in the new year.
The committee was considering a report that suggests selling a package of property, which includes real estate, a 43 per cent stake of Enwave and a 10 per cent stake of Toronto Hydro.
The Enwave sale must still go to city council for a final vote.
"Monetization of these assets has the potential to offset some of the spending and debt pressures in the City's capital budget," reads the proposal from the city's chief financial officer, Cam Weldon.
The sale of such property could generate as much as $600 million that would be used to pay down the city debt, city estimates suggest.
The reduced need to borrow money would also save the city $65 million per year for the next ten years, the report suggests.
The sale of city assets would, according to staff estimates, cost the city some $10 million in lost annual revenue.
In July, city council voted 30-6 in favour of a motion that said "it is not in the public interest to sell all or any part" of Toronto Hydro.
The sale of Toronto Hydro was a topic of contention during the 2010 municipal election, when mayoral candidates differed in opinion on whether to sell the city asset.
Mayor Rob Ford said during his successful election campaign that he did not want to sell Toronto Hydro because it was a "valuable asset."
He did not rule out selling a small stake of the utility company, but did vote in favour of the motion to keep Toronto Hydro in July.