CobdenToday.com

To Cobden Residents:
2023 nov 6 wwr budget water rates
By Marie Zettler
Local Journalism Initiative Reporter
Cobden — After lengthy budget deliberations at Whitewater Region’s (WWR) November 1 council meeting, relief from high water and wastewater rates is still not in sight.
An 8.5 per cent increase in water rates is proposed in the 2024 budget, while wastewater rates are expected to go up 12.55 per cent. The communities of Beachburg, Cobden and Haley have water distribution systems. Cobden residents also have wastewater collection and treatment services and so will be expected to pay both hikes on top of the $1,081 annually they now pay for water and $1,689 they are already paying for wastewater services. That will bring the combined levy on residences in Cobden to $3,074 in 2024.
Treasurer Kurtis McGonegal outlined the perfect storm that is contributing to the escalating rates. He emphasized that the 12.55 per cent hike in wastewater is a break-even figure.
“It covers operating costs and small capital items, and that’s it,” he said.
He identified steep hikes in fees paid to the Ontario Clean Water Agency (OCWA), which has been contracted by the municipality to manage its water and wastewater systems, as a major component of the increased cost. WWR is one of more than 450 water and wastewater treatment facilities for which the Crown agency of the Government of Ontario provides operation, maintenance and management services. The cost of OCWA services is going up from $545,000 in 2023 to $592,700 in 2024 for water services and from $535,000 in 2023 to $579,300 in 2024 for wastewater management.
Debt repayment of principal and interest for the water system of $210,000 is due in 2024.
An engineering study to determine the exact cost to refurbish or replace the membrane in the Cobden water plant is listed at $35,000.
“The estimated cost to refurbish the membrane is $55,000; to replace it would cost $1.9 million,” he said.
Councillor Mark Bell referred to a recent presentation by Cobden residents protesting the high rates and noted that some business owners felt they were paying high or medium commercial rates when they actually used little water.
“Are there any options for them to go to a metred rate?” he asked.
Mr. McGonegal said he didn’t know if there is a process in place to make that change, but clarified that the criteria for classes of users was accepted by by-law in 2017.
“There are only three metred users in the municipality,” he said.
Public Works Manager Lane Cleroux said the scope of a rate study now underway includes looking at better defined classes of users rather than simply lumping businesses according to size.
“For example, a curling rink would use more water than a small store,” he said.
The study will also be looking at metering.
Councillor Joe Trimm pointed out that the system costs must still be covered even if some users find a way to pay less.
“If someone finds a way to pay less, everyone else has to pay more,” he said.
Mayor Neil Nicholson said the financial cost of operating the water and wastewater systems is “a fixed loop.”
“We need to acknowledge that if we decrease (the cost) for one person, we have to increase it to another set of users,” he said.
Coun. Trimm said the “fixed loop” example applies to metering.
“The system has a fixed cost and we have to get that money in,” he said “There is a cost to changing the system (to metering). That doesn’t mean it will be substantially cheaper. It might save water – and as a result, chemicals – but it doesn’t do anything for the pipes underground. It’s questionable what the individual user actually would save.”
Councillor Mike Moore noted that a spinoff of reduced water use would be less wastewater to process.
“This should be part of the consideration going forward,” he said.
He asked what goes into assigning a user class to a ratepayer.
“A small business on Cobden’s Main Street is considered small until it becomes a restaurant, for example,” he said. “How do they decide what is small, medium, or large?” he asked. “Some residences use more water than a small business. Some medium and small businesses can’t afford these rates. What’s going to happen? Between water and sewer and taxes going up, some may have to close, and down the road that will come back to bite us. Just because it’s a business it shouldn’t have to pay more.”
Property taxes are also proposed to go up. A house with an assessment of $179,000 paid $1,270 in property taxes in 2023 and will pay $1,301. This will see Cobden residents with a home with that hypothetical value paying $4,376 for water, wastewater, and property taxes combined in 2024.
The draft budget is calling for a transfer of $185,550 to water reserves in 2024. Nothing is earmarked for wastewater reserves.
Mayor Nicholson mused about possible ways to reduce costs.
“Can we defer the studies?” he asked, referring to the study to determine future requirements for the Cobden and Beachburg water plants totalling $51,250 and a financial plan and rate study quoted at $50,000.
Treasurer McGonegal said he has received a recent quote of $30,000 instead of $50,000 for the financial plan and rate study.
“It would be very beneficial to do the financial plan, shy of the fact that we need it by the end of 2024 to keep our licence (to operate the water treatment plants) going,” he said.
Deputy-Mayor Cathy Regier asked if there were alternatives to OCWA for managing the water and wastewater systems.
“There are other companies out there,” said Mr. Cleroux. “The options are to stay with OCWA, or move it back to township staff, or go out with a request for proposal. But both (of the alternatives) would take a lot of staff time, resources and costs.”
Mr. McGonegal reiterated that the proposed wastewater rate includes nothing for reserves.
“Just cost recovery. All the bare costs – for contracts, chemicals – all have increased.”
Before adjourning the meeting, Mayor Nicholson conceded that the issues would not be resolved at that time.
“I’m feeling not good about it,” he said. “We will have to highlight that we’re still working on those issues.”
Council has committed to requesting a joint meeting with Cheryl Gallant and John Yakabuski, MP and MPP, respectively, for Renfrew-Nipissing-Pembroke, and with County of Renfrew Warden Peter Emon, outlining the affordability challenges relating to Whitewater Region’s water and wastewater rates. More specifically, Ms. Gallant is to be asked to request a meeting of the Minister of Infrastructure Canada requesting additional funding to subsidize the total cost of wastewater treatment plant reconstruction completed last year, while Mr. Yakabuski will be asked to facilitate joint or individual delegations with the provincial Minister of Infrastructure, and with the Minister of Environment, Conservation and Parks, to request additional funding to subsidize the cost of that project.
The third and last of the “next steps” to address the high rates is to direct staff to look at options for efficiencies and/or revenue generation, such as water meters; accepting septage from outside the community for treatment, and making changes to the funding model.
The Rural Ontario Municipal Association (ROMA) has been contacted and has agreed to review the situation on November 9.
Council will deliberate on an all-encompassing final budget presentation at a special meeting on November 22 and will provide direction to staff on how to proceed at that time. The December 6 regular meeting will include public meetings on changes to building fees and on the budget as a whole. The budget is scheduled to be passed at the December 20 regular meeting of council.