Treasurer Sean Crozier went through the water and wastewater costs for 2023.
He said that there was an 18 increase in water units from 2022, which went from 1078 to 1096.
“Likely what happened with that was that a duplex changed to a residential piece. Something to that effect.” he said.
He said that the revenue budget increased from $1,100,000 to $1,240,000, with salaries for staff rising from$43,870 to $46,000, and FTE staying the same at 0.40
He said the budget to OCWA decreased from $563,000 to $545,00, while debt remained unchanged at at $129,300.
The Other category was dropped from $179,400 to $177,100 and transfer to reserve rose from $184,430 to $342,600.
Wastewater residential units increased by 10, with some reduction to multi-residential for a total reduction of 5 units.
Wastewater revenue increased from $841,075 to $1,077,000, with Salary increasing from $17,250 to $18,100, and FTE staying at 0.15.
Contract rose from $463,125 to $535,000, Debt rose from $318,000 to 318,500, while Other expenses dropping from 179400, to 177,100,
the transfer to reserve went from $500, to $125,600.
He said that the combined water and wastewater rate rose from $2,494.68 to $2993.12 for residential to commercial from 2022 to 2023, with a monthly change of $41.54 for residential and small commercial.
“Why do you not show an actual increased for metered there? Is that a rounding error?”
“Because it’s not a flat rate, that changes each time based on their consumption.” Crozier.
“What expenses are covered by the ‘other line’?” Councillor Bell asked.
“There’s only so way to increase the fund.”Crozier said. “There’s funds in the water reserve, but there’s not substantial funds, and that that’s why the water study spoke to a larger reserve, in case we have a large project in a major urban center. It’s important that water and wastewater – and roads – have money in the reserve.”
Councillor Tabbert asked why the water rate increase was so large.
CAO Ivan Burton said that the increase was based on the Watson study, which ‘took into account age of pipes and took into account future capital works’ which recommended a 9.3% increase.
Tabbert asked what the Township had in reserve for water and wastewater, which Crozier said that he ‘did not have an exact number’.
“Until I close down that year, I can only contribute to the reserve if I have that amount available when I close down.”
He said he would have ‘my best estimation at the time’ at the next meeting on January 18th.
Councillor Mark Bell asked for a copy of the Watson report for the Council, which Mayor Nicholson said could be arranged for a physical copy.
Mayor Nicholson asked if the 10 unit increase was the results of the BEI and if it was taking into account the ongoing construction.
“There may be more units ongoing, but they aren’t part of the water charges as far as occupancy is.” Burton said, and said he didn’t have the information on the ongoing constructions in Cobden.
Councillor Olmstead said that $40 a month was ‘significant for the user’.
“I get it we’re looking to put substantial amount towards reserve.” he said. “A lot of this is getting ready for the future, and I get that we have to do that.”
“It could be in 10 years be inflated but at this time it is accurate.
“A lot of these inflation are for futures, are not even to break even today.” Olmstead said. “As the mayor said, we only have enough for one year of Beachburg .”
“When the wastewater plant was put up, we were told (in Cobden) that it would benefit the user.”
He said he would like to look into other sources than rate increases for increasing the reserves. “
I’d like to maybe give that for staff to look into putting something from the water plant; I don’t think the regular user in Cobden can take a a $500 increase.”
“Knowing that we will have a correction, that will affect the operating life.” Crozier said.
“If anyone has any great ideas, if we can put some from the gas tax..” Olmstead said
“I believe you can’t hang onto that forever, that has to be used in a certain time.” Crozier said. “When we get the capital piece we can discuss it, we may be able to get to a place where the CBF pays for it.”
Councillor Trimm said he he wanted to make sure “if that was legal.”
“It’s not something that’s come up in the past.” Crozier said. “I want to check into other municipalities with water treatment plants. I wouldn’t have recommended it if it was illegal.”
“You show me a farmer who can get a well dug for $5000” Councillor Tabbert said. “I don’t see paying an extra $500 a year as being horrendous.”
“We’re talking about extra.” Councillor Olmstead said. “If you look at the rate, you’re looking at a $3000 a year rate at $30,000 (over 10 years). That’s a lot of cake.
Councillor Moore said that Simpson street in Cobden ‘was in bad shape’ with water.
“I certainly am not suggesting we don’t put anything into reserves.” Councillor Olmstead said. “I would like to put more away, but in this case the user. This isn’t the first substantial increase we’ve hit them with; I think we need to keep our minds open about this.”
Councillor Joey Trimm asked if it would be beneficial to ‘see a comparison’ of other municipalities to see their fees.
“The things we need to remember is that not every municipality is a flat rate. Renfrew has a metered rate, we have to get the parameters on an average home.” Crozier said.
“Whether it’s comparing apples to oranges, it’s nice to be able to compare for the users.” Councillor Bell said.
Mayor Nicholson said that it was the Township’s responsibility to find other solutions
Councillor Joey Trimm said he planned to bring a Notice of Motion to the next Council to create another revenue stream for wastewater.
Councillor Moore said that issues with water use and user fees was an issue ‘going back many years’.
“It’s always been an issue with users footing the fees for water use by people who aren’t paying. It’s always been an issue of ‘users pay’. If we want people to come to our area and say how beautiful it is, we have to upkeep it. We’ve looked at other municipalities, and they’ve been very staunch on ‘users pay’. If we can come up with something to suit us, I’d be all for it.”
“We’ve been riding a wave of local development for the last few years.” Councillor Olmstead said. “I’ve talking to a lot of people, and they’re already mortified by what’s coming for water and wastewater fees.” he said. “That wave has funded a lot of other things in our region, it’s fantastic in my opinion. Cobden has been stagnant for 20 years, not one or two houses built. For our region, I think it’s important to get this right. I think we need to really find solutions to offset this.”
CAO Burton said that “the one piece we would need at this stage is some direction relating to what you’d like to see going forward. What we have here is an increase of 27-28%, that includes the filters. If we omit this from our reserve, we anticipate an increase of 15-16%. If we could just get a sense of that; we can’t propose a budget that isn’t going to be cost neutral in regards to expenses.”
“Prepare that 15% cost neutral with the reserve coming from another source to be examined.” Mayor Moore responded.
