by CONNIE TABBERT
Editor
COBDEN — Whitewater Region council had its first look at the water budgets for Cobden, Beachburg and Haley townsite and realize they have to put on their thinking caps to rejig numbers.
If the proposed budgets were accepted as presented – and they will not be – Cobden’s proposed rate increase is five percent; Beachburg’s is two percent and Haley townsite is a 62 percent increase.
“Let’s make this perfectly clear, at this point and time, crystal clear, we are not proposing a 62 percent increase,” stressed Councillor Chris Olmstead. “That is what would be required to operate at a net zero.”
Treasurer Marsha Hawthorne presented the 2016 proposed water budgets for the first time. She presented them as they work out with the figures she has, and then council will review the figures and find a way of cutting back expenses or getting more revenue.
It had been anticipated that Cobden would have a surplus of $26,193, which would have been used to help offset Haley’s deficit, which didn’t happen, she said.
Reviewing the budget, council noted that OCWA (Ontario Clear Water Agency) charged $52,000 for Haley’s, and questioned if that amount was correct. The projected budget for 2015 was $42,676. For Cobden, the contract cost was $235,590, which was $42,000 more than what had been budgeted. The Beachburg OCWA contract totalled $176,772, which was about $3,000 less than what was budgeted.
Mayor Hal Johnson didn’t like what he was hearing.
“The budget is out by $44,000,” he said. “That concerns me. What’s going to take place with Haley’s budget?”
Ms. Hawthorne said 2014 was the first full year of the OCWA contract, so OCWA employees are now getting to know the plants. The contract with OCWA is until 2018.
The proposed budget for Cobden is $367,701, which is about $13,000 less than what was actually spent in 2015.
The proposed budget for Beachburg is $339,297, which is about $47,000 more than what was spent in 2015.
The proposed budget for Haley’s townsite is $90,07, which is about $3,000 more than what was spent in 2015.
Ms. Hawthorne noted Cobden did not have a water increase in 2015 while Beachburg had an increase of 18.5 per cent.
There was also concern with work proposed at the Haley site, considering it’s less than 10 years old.
“2016 costs should be dropping, not going up by 26 per cent,” Mayor Johnson said. “No one can consider a 62 percent increase, or even 26 percent. The residents can’t handle that.”
He suggested OCWA’s contract be reviewed, because charging one person’s salary for Haley’s just doesn’t sound right.
Councillor Charlene Jackson questioned what work is done at Haley’s that would be worth $52,000.
She agreed with Mayor Johnson, that the water system/building shouldn’t require much work.
“It shouldn’t need many repairs,” she said. “That’s just not being realistic.”
Ms. Hawthorne said it could be a proportionate amount OCWA has determined, not the exact costs.
It was suggested that Ms. Hawthorne, Chief Administrative Officer Christine FitzSimons and Environmental Services manager Steve Hodson review the budget with OCWA to find savings and/or come back to council so it can find savings.
Councillor Dave Mackay suggested turning the water systems over to OCWA, but due to legislation, the township must remain the legal owners.
To pay for the water system in Beachburg, there are 398 residential units, 16 small commercial units, eight medium commercial units, 13 high commercial units and 33 multi-residential units.
In Cobden, the amount is split between 379 residential units, 32 small commercial units, 16 medium commercial units, 12 high commercial units, 24 multi-residential units and 81 metred units.
In Haley there are 32 residential units, which is one less than last year due to a house fire.
