Re: Council nixes idea to sell utility, news, Aug. 14
Mayor Mathieson and councilors Mark and Clifford are all directors of the Festival Hydro board and are paid $4,200 per year. If Festival Hydro was sold, their board positions would no longer exist and each of them would lose that income.
I’m certain that isn’t the reason they voted against the sale but I believe they all had a clear conflict of interest and should not have spoken or voted on the issue.
As to the actual issue of selling, the indefinite revenue stream seems to be the main reason council wants to keep Festival Hydro. Councilor Famme has mentioned a value in excess of $100 million for the utility. Surely a good money manager could generate more than $2.3 million per year with $100 million in capital. (I’ve seen GIC rates advertised at higher than 2.3 per cent).
If we sold the utility we could generate a greater revenue stream and have the Festival Hydro site to redevelop, perhaps as a new police station or library.