It’s only been about six months since municipal water and sewer users experienced a substantial increase in their utility bills, but another increase is on the horizon.
Because there’s not enough money left to fund the necessary capital projects for the South Dundas municipal water treatment plant, staff asked council to consider increasing the fixed water charge by $4 a month. That increase would mean that Iroquois water users will see an increase of $8 a month once sewer charges are factored in, and Morrisburg water users will see a total increase of $7, including sewer charges.
South Dundas treasurer Shannon Geraghty explained that increasing the fixed portion of the rate structure is the only way to tackle the issue. He said that if the consumption charge is increased, it would only prompt people to conserve, and therefore not bring in the funds needed.
Even with this increase, there will not be enough money in the water reserves to pay for the $558,500 worth of capital projects that need to be done. So, the funds for the capital work will be borrowed from the Morrisburg and Iroquois sewer reserves which are healthy at almost $1.8 million.
“We can’t do this on a regular basis,” commented South Dundas councillor Archie Mellan.
“You’re right, this is not sustainable,” agreed South Dundas chief administrative officer Steve McDonald.
Nonetheless, South Dundas council agreed to the proposed increase.
The biggest capital project at the South Dundas water treatment plant is the replacement of the Zenon filters, the main component of the plant.
These filters are nearing the end of their 10 year lifespan.
While staff knew that they would have to replace them soon, they recently learned they actually need to purchase the filters before October 6, 2015.
South Dundas manager of public works Chris Bazinet explained that the original water treatment plant contract included a 10 year replacement cost of guarantee of $350,000.
That means if the filters are purchased before October 6th they will cost $350,000. If they are purchased after that date, they will cost $700,000.
So the municipality needs to act sooner than later to take advantage of the offer. The new filters must be installed at the time of purchase.
Council is expected to approve the necessary bylaw for the increased rates at the next regular meeting.
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