Elexicon Holdings

Earlier this year, the City of Pickering announced the undertaking of a confidential Request for Proposal (RFP) to explore the potential sale of its municipally owned holdings in Elexicon Corporation (Read Joint Statement, July 3, 2024).

At this time, no sale has been made, the RFP process is still underway, and once complete, the City will provide an update on any next steps. The final decision to proceed with a sale will be made by the respective municipal councils.

In 1994, Ontario had approximately 307 municipally-owned electric utilities. Over the past 30 years, this number has significantly decreased to around 50, due to ongoing consolidation efforts, including share sales and mergers. Municipalities recognized the financial opportunities presented by selling electric utilities amid this consolidation trend. In our case, leadership has been aware of the shifting landscape, and discussions have naturally evolved over time.

That said, the City of Pickering is in the business of providing its residents with critical and valued municipal services, such as snow-clearing, parks, roads, community facilities, by-law enforcement services, and 24-hour fire and emergency response. The ownership of an electric utility is not a core City service or responsibility, and the City’s decision to explore selling is reflected in the current merger trend.

Similar to personal investing and other business investments, the City has a responsibility to regularly evaluate the performance of its assets and investments. This allows us to ensure they continue to align with our strategic goals and how to best serve our community. After a thorough review, we believe that now is an opportune time to explore the potential sale of our shares in Elexicon Corporation, due to existing market conditions and the potential economic opportunity that a sale may generate. 

Commitment to Fiscal Prudence

Through the City’s annual budget process, staff and Council exemplify their commitment to fiscal prudence, and effective, efficient municipal operations, by taking a thoughtful and measured approach in planning for the evolving service, program, and infrastructure needs of Pickering’s growing community.

The Municipal Act requires every Ontario municipality to prepare and approve a balanced budget each year. The City of Pickering has always met this requirement.

Furthermore, the City posts its financial statements annually, along with the corresponding independent Auditor’s Report, which year-after-year, presents fairly.

In fact, in 2022, not only did Deloitte, the consultant, return a clean audit report, but noted that the City’s financial position is healthy and strong, and that the City is able to meet its current and future financial commitments. Read Report FIN 15-23 for details.