Connie Tabbert
Editor
COBDEN – A Whitewater Region Township councillor is concerned the increase that may be required for water and sewer rates in the affected areas could causes businesses to close.
The topic of the non-sustainability of the water and sewer plants was up for discussion again on August 6, with the environmental services committee hoping to have some sort of solution to the problem prior to discussing next year’s budget.
At meeting’s end, a recommendation was sent to council, and it was approved at the Aug. 13 council meeting that township staff prepare a report to establish a commercial flat rate and a cost of commercial metering increases in order to balance the water budget for 2015.
Residential metering will be discussed at a later meeting.
Chief administrative officer Christine FitzSimons noted at the committee meeting that in 2013 and 2014 the budgets for the two only balanced after the reserves were depleted. What this means, is not only are they not user-pay, but there is nothing left in the budget if an emergency were to arise or for replacement when necessary.
She said the report completed by Watson and Associates a few years ago dealt only with rates. She compared this to doing a family budget and not budgeting for food.
“This is a serious problem and we need a new study with better data to fix the rates where they belong for cost recovery,” she said.
Councillor Joey Trimm questioned if money could be saved with staff, using the previous two years numbers and information gained through investigation, could set the rates and save the users the thousands of dollars another study would cost. He questioned if the “bare bones” Watson study could be used as a base to start from.
Ms. FitzSiimons said it would mean a lot of guess work.
“I think if we looked at the study in detail and broke it out, we could probably come up with a percentage rate that makes sense,” she said. “We have no crystal ball to see into the future. We could probably save those dollars and try for a year or two and see if we could rectify the situation.”
Ms. FitzSimons continued on with the next topic, which was metering for commercial establishments. She noted there are some commercial properties paying as little as $16 a month. With a metered rate, the consumer would pay a flat rate, once it’s established what that rate would be, and then anything over that rated number would be an extra charge, she explained. However, it’s a complex calculation to figure out, she added.
Mayor Jim Labow said for years he’s been saying metering is the best way to go, especially for those who over-water lawns and gardens. The cost for the meter would be borne by the home owner, but it could be paid off over so many years, he added. As for commercial use, they should be paying for what they are using, he noted.
Councillor Allen Dick said it’s not just water use, but also operational costs that should be considered. While he’s aware there is a contract with OCWA (Ontario Clean Water Agency) to manage and operate the four plants in the municipality, he’s questioning some of expenses. As an example, he noted many times there are two trucks at the waste water plant – is that necessary? As well, environmental services manager Steve Hodson is driving a township truck, would it be less expensive to pay him mileage for his own vehicle?
Ms. FitzSimons said all operational and managerial costs have been worked out in the OCWA agreement, which treasurer Marsha Hawthorne will review carefully this year now that it’s been a year and actual costs can be used.
Coun. Dick said he is concerned for the businesses. He noted in 2011 his bill for property he owns in Cobden cost him $316.20 and in 2014 it has gone up about 60 per cent to almost $600.
“I don’t know the answer, but what I’m afraid of, and I’ve said it before, some of these small businesses in town are going to be on the street,” he said. “Cutting costs for operation is just one way, there are other things we have to look at.”
In reviewing commercial rates, Ms. FitzSimons believes it was based on the square foot of the operation and the number of employees. But, that is proving to be an incorrect way of charging commercial establishments, she said.
Mr. Hodson agreed, noting MacGregor Concrete in Beachburg pays less than Beachburg School.
“You don’t use as much water at the school as you do making concete,” he pointed out.
Councillor Joey Trimm said it was believed, which was later found to be incorrect, that the concrete water was coming from the lagoon.
He also noted for many years water rates were not increased because no one knew what to raise them, which was wrong.
Coun. Dick said if there’s going to be development growth in Cobden, it will have to be agreed no new development will be on the water or sewer systems. Common sense has to be used, he said. This municipality, like others, cannot afford to take care of its current infrastructure, above and below ground, so why does it make sense to add more infrastructure below ground for more development that the municipality cannot afford.
He is not laying blame or finding fault with any one person, but Coun. Dick said, “Someone dropped the ball” when it came to raising water and sewer rates, because there were only to rate increases between 2000 and 2010. “Now we have shortfalls. We were not doing our job.
“We are soon going to be in a position where we can’t afford to live here,” he added.
Councillor Daryl McLaughlin said it wasn’t until 2009 that all the current regulations came into play. There were no rate increases because there was no need because the budgets always balanced, he explained.
Coun. Dick questioned why there were no reserves set aside from the day the water and sewer plants were constructed, so that when day arrived when they had to be replaced there would be funds available.
It was unfortunate the budgets balanced each year and no money was set aside for replacement, Mr.Hodson said.
When questioned what reserves there were, Ms. FitzSimons said there is nothing in the water reserve account and about $100,000 in the sewer reserve for upgrades.
Coun. Trimm said this municipality doesn’t seem to think into the future.
“This municipality, from the beginning, didn’t think to put money aside,” he said. “And we don’t do it for roads either. It’s not a very good way of doing business.”
Mayor Labow said while developers may not be happy, sewers and wells may be the way to go for new development.
Reeve Don Rathwell became concerned when he realized any increase in water rates would affect Haley’s townsite as well. He noted Haley residents currently pay twice as much as Beachburg and Cobden property owners. If a raise in rate were to be voted on, he would have to vote against it, he stated.
Mayor Labow noted if there’s an increase in Haley’s, it will only be caused by an increase in operation costs, not for water usage.
Ms. FitzSimons said the committee needs to give direction to staff for the next steps. She questioned if consulting expertise should be retained “to set viable commercial flat rates and commercial meter rates.”
MacGregor Concrete should not be using treated water and if the company were being charged a flat rate and a metered rate, that option would be changed quickly by the owner, she said.
Beachburg Medical Centre representatives came to council saying they were being over-charged for their water rates, and while they were to bring in proof of this, they haven’t done so yet, she added.
Mr. Hodson said if he were to work with staff and review the study that was already completed and try to decipher how to calculate the rates, he believes there is no need for another consulting bill.
Coun. Trimm agreed, noting other similar-sized municipalities have already gone through the process and would probably share their information, which would save the users in Cobden, Beachburg and Haley townsite some money.
Council accepted the committee’s recommendation that township staff prepare a report to establish a commercial flat rate and a cost of commercial metering increases in order to balance the water budget for 2015.
As for residential metering, that discussion will occur at a different time.
