Hamilton Future Fund - Governance Review and Reserve Strategy
The Hamilton Future Fund (HFF) was established in 2002 when the proceeds of $137 M from the creation of Hamilton Hydro Inc. were received by the City of Hamilton. The mission of the HFF is to create a permanent legacy for current and future generations of Hamiltonians to enjoy economic prosperity and improved quality of life.
Two reserves were created with the funds: Fund A and Fund B.
Fund A
Fund A of $100 M was to be invested and protected for a five-year period from inception to provide investment income as a permanent source of funding. After the five-year initial investment period and growth of the HFF, the funds could be used for capital projects.
Fund A investments, however, were not protected during the first five-year period, as was required when the fund was established. Some of the funds were used during the first five years to reduce taxes and as an internal source of borrowing for City capital projects. The loans to the City were promissory notes to be repaid to the HFF with interest. These loans were an alternative to taking on external debt to finance capital projects and the principal and interest is repaid annually.
Significant uses of Fund A since inception include:
- Reduction of property taxes through the transfer of $13.8 M in investment interest
- Loans to the City of Hamilton for approximately $98 M to fund various capital projects;
- Grants for the Poverty Reduction Investment Strategy for construction of affordable rental housing for a total of $20 M;
- Grants for $55.2 M in 2009 for capital projects related to the 2015 Pan-Am Games; and
- Loans to external organizations for capital projects for the McMaster Health Campus ($10 M), Good Shepherd Centre ($5 M) and Bob Kemp Hospice (forgivable loan for $1.5 M).
Loans provided to the City from the HFF are being repaid and the intent is to replenish the fund to its original amount. As at December 31, 2022, the reserve balance in fund A is $61.9 M.
Fund B
Fund B of $37 M was to be used to provide funding for various capital projects both within City programs and for external organizations. The funds are grants which are awarded as part of an application process.
Fund B grants were awarded, for example, for the capital improvement or construction of sports facilities, for the purchase of orthopaedic robotics surgery equipment and for the construction of a common area in a residential hospice.
As at December 31, 2022, the reserve balance in fund B is $1.9 M.
Board of Governors
A Board of Governors was established to provide oversight of the HFF. The Board is currently composed of the Mayor, four City Councillors and 13 citizen members. The Board of Governors reports to the General Issues Committee (GIC) and makes recommendations regarding the use of the HFF reserves.
In 2021, the Office of the City Auditor (OCA) reviewed the HFF’s fund governance and oversight including the processes to manage grants and loans, and the adequacy of performance measures and presented 10 recommendations to strengthen the fund’s governance, including:
- Development of a strategic plan for the use of funds, which incorporates public consultation;
- Formalization of the roles of City employees to support the HFF, including a fund administrator;
- Improvements in the processes for grant awards; and
- Monitoring of performance measures for projects receiving funding.
In June of 2022, Council directed staff to develop and execute public engagement and consultation on the fund’s governance and reserve strategy. In September of 2022, the Board of Governors reviewed the public engagement framework presented by staff and expressed that Board of Governors supports the 2002 Council approved principle that Fund A serve as a self-sustaining Fund, satisfying the principle of permanence, with a target balance of $100 million.
Share Your Ideas
Dear Gloria Rojas,
I am the founder of the AI-based social venture (an early-stage startup), Deaf AI, at the University of Toronto. Our ultimate vision is to develop digital humans as sign language interpreters for real-time interpreting of voice to sign languages.Our mission is to serve deaf people to have better experiences in public life and the digital world. At the biggest entrepreneurship event at the University of Toronto, we won first prize with $40K, and the people's choice prize with $4K, which was the maximum amount of prizes at the competition. Transport Canada has supported us with a letter of support and they may finance some of our R&D at Sheridan College. https://entrepreneurs.utoronto.ca/ai-powered-startups-place-first-at-desjardins-startup-prize-pitch-competition
All announcements at stations such as Union are transmitted vocally or written on screens with English/French texts at passengers' terminals. As you may know, English is not the first language of d/Deaf communities in North America. For that reason, subtitles or voice-to-text technologies are not fully functional to these people who would rather receive services in sign languages.
Our solution is a virtual avatar to appear on the screen to translate the announcement into ASL. Picture this, on the screens and digital signages in passenger lounges, an AI-based virtual avatar (a hyper-realistic character) representing ASL interpreters. Some Buses have digital signages and screens showing the stations. We would be able to display the avatar for these screens. It will be practical for buses around Deaf schools and Deaf communities.
Here is our demo: https://drive.google.com/file/d/15zOvh5Zh59iVlC1tvIXW8qRawy1epINJ/view?usp=drive_web
Our technology is complexe and several disciplines are involved to develop it, a quick view on how the product development works with a team of ten talents with various backgrounds.
https://www.youtube.com/watch?v=oP0DaR3EKIA
We would be able to unlock the lack of equal access to information for Deaf citizens such as announcements for stops in the buses if the bus has digital signage or at transportation hubs.
In order to develop the technology we need all announcements and information in English to develop the interpretations of these into ASL.We are not able to initiate the production process since we need to customize the product and develop it for the purpose of public transportations with your data on names of stations and type of announcements and messages in the transportation.
I am reaching out to you to discuss the possible partnership and figure out how you may assist us to work with you. If you have some specific programs to support pilot studies for innovative accessibility means, we would like to hear that, especially Hamilton Future Fund , or any strategic partnership with you.
My co-founder and I would be more than happy to have a conversation to figure out how we can make the transit more Deaf-friendly.
Best regards,
Mehdi Masoumi
CEO, Deaf AI
Hi, I tried to take the survey but the link didn't work for me. I just want to say that any new spending should have the Global Climate Emergency in mind as the number one priority. We must do our best in Hamilton to make all future projects 'green". Use any available money in these funds to protect our Greenbelt from the province's poor planning schemes, and enhance our waste water systems around Lake Ontario, plant native plant species in every landscaping project proposed, use electric energy sources instead of fossil fuels for as many aspects as possible in any project, etc. i.e. Why isn't the HWDSB using electric mowers to cut their expansive lawns in our neighbourhoods yet? The noise and air pollution is harming our health more now in the heat and humidity which we experience for a longer period each year now. This should be mandated as part of the City's climate resiliency efforts. There are many simple things like this that our funds should be used for. Tree planting of native species (never enough!), EV charging stations for public use, buying up land to protect from the likes of our Premier, making all buildings in the City 'bird friendly' by using window dots to prevent collisions, creating more strict laws to keep cats indoors because they are the number one killer of wild birds in the world - killing billions of birds annually!), using less 'water & soil polluting salt' on our streets in winter, etc... In all cases, please use any funds for creating climate resilience in our great city. Thank you to our wonderful council! We support you.
Who's Listening
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Phone 905-546-2424 ext 6247 Email gloria.rojas@hamilton.ca
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