HomeMy WebLinkAboutFSD-005-22Staff Report
If this information is required in an alternate accessible format, please contact the Accessibility
Coordinator at 905-623-3379 ext. 2131.
Report To: Joint Committees
Date of Meeting: February 7, 2022 Report Number: FSD-005-22
Submitted By:
Reviewed By:
File Number:
Report Subject:
Trevor Pinn, Director of Financial Services
By-law Number:
[If applicable, enter File Number] Resolution#:
2021 Annual Commodity Hedging Compliance Report
Recommendation:
1.That Report FSD-005-22 be received for information.
Municipality of Clarington Page 2
Report FSD-005-22
Report Overview
This report complies with the legislated requirement to annually report to Council the status
of any existing commodity hedging agreements.
1. Background
1.1 Under Ontario Regulation 653/05, the Treasurer is required to report on an annual basis
to Council regarding the status of existing commodity hedging agreements, including a
comparison of the expected results to actual of using the agreements and confirmation
that they comply with the Municipality’s policies and goals.
1.2 As required by the Municipal Act, 2001, Council adopted a Commodity Price Hedging
Agreement Statement of Policies and Goals in report COD-054-08, on October 6, 2008.
In this statement of policies and goals, the responsibilities are delegated as follows:
a. The Director of Financial Services/Treasurer (at the time Director of
Finance/Treasurer) or designate is responsible for the financial administrative
matters pertaining to commodity price hedging.
b. The Director of Corporate Services or designate is responsible for the procurement
and contractual administrative matters pertaining to commodity price hedging.
1.3 The designate for the Director of Corporate Services was the Purchasing Manager.
Following the 2020 reorganization, this position has moved to the Financial Services
Department and reports to the Director of Financial Services/Treasurer.
2. Annual Reporting Matters
2.1 The Municipality did not have any existing hedging contracts in fiscal 2021. At the date
of this report, the Municipality has not entered into any contracts for 2022.
2.2 Staff continue to receive regular market intelligence and support from Blackstone
Energy Services on the natural gas market. The information provided by Blackstone
allows the Municipality to proactively respond to the market conditions to ensure a
secure supply source and cost certainty where determined to be prudent.
2.3 The Municipality has not hedged electricity. The structure of an electricity hedge is
different than natural gas. A significant portion of our bill is the Global Adjustment which
is not part of a hedging agreement. Staff continue to monitor but do not anticipate
entering electricity hedges in 2022.
Municipality of Clarington Page 3
Report FSD-005-22
3. Concurrence
Not Applicable.
4. Conclusion
It is respectfully recommended that that this annual commodity hedging report be
received for information in compliance with Ontario Regulation 635/05 of the Municipal
Act, 2001.
Staff Contact: Trevor Pinn, CPA, CA, Director of Financial Services/Treasurer, 905-623-3379
ext.2602 or tpinn@clarington.net.
Attachments:
Not Applicable
Interested Parties:
There are no interested parties to be notified of Co uncil's decision.