MORRISBURG – South Dundas councillor Danielle Ward wants this council to revisit a 15 year old council decision concerning the South Dundas water treatment plant loan.
At the December water and wastewater budget meeting Ward said: “It’s concerning to me that the tax base has been paying interest on the water plant loan.”
She estimated that the entire tax base has paid about $800,000 worth of interest on the water plant loan so far and will contribute another $77,000 by 2026 if this council leaves the 2007 bylaw as is.
“In my opinion water users should be paying for those assets,” she said. “I’m hoping the administration can bring a report back to us to have a discussion.”
South Dundas treasurer Lachlan McDonald said that Ward is correct. “Taxation paid, but it’s supposed to be typically a user-pay model.”
He commented that the 2007 plan was, “a good plan but the projections were overly ambitious.”
“The connection fee projections haven’t been met as quickly as we would have liked.”
South Dundas mayor Jason Broad directed staff to prepare a report so council can decide if they want to potentially change the bylaw.
“It makes sense that the users should pay, but we’re already putting water up four per cent,” said South Dundas councillor Tom Smyth. “We can only do so much at once.”
“We need more information,” said Broad.
“We’ll have that conversation at a future meeting,” said McDonald.
“If we don’t have growth, we don’t have revenue coming in to put towards the loan,” said Ward. “I’d like to see ways in which we can make up that difference. By 2026 we have to have $1.5 million and we only have $487,000.”
Deputy treasurer Shawn Mason pointed out that as Dutch Meadows connects to the system, those connection fees go towards that growth model. “That will get us closer to where we should be.”
A more detailed information report will be presented to council in the new year.