HEDDY SOROUR
The town of Carleton Place is going to be presenting the Water and Wastewater operating and capital budget for 2025 to residents at the October 22 Committee of the Whole. This presentation will leave out the water and wastewater expansion budget for now.
The new 2025 budget proposes another 1.95 percent increase to rate payer’s water and sewer bills, representing an additional $1.64 per month or $19.36 per year for one and two people households.
Residents will see that the town currently realizes about $2.5 million in annual surpluses, and that’s a deliberate plan to ensure the town has the funds necessary to replace water and sewer infrastructure when it reaches the end of it’s life.
“Our underground infrastructure is relatively new, but come 60 years into its life cycle we’re going to have a lot of them come due for replacement at the same time,” explained Trisa McConkey, town treasurer.
According to McConkey the town needs to finalize the new rates prior to November when the last quarterly bill goes out to residents.
Staff had planned to present the entire operating and capital budgets including the water and wastewater plant expansions to the public at the same time. But council decided to hold off on presenting the plant expansions until they’ve had a chance to review new information. The sticking point is a giant leap in costs for the expansions from $65 million to $113 million.
“I’m flabbergasted at the cost of the water and wastewater plant [expansions], going from $65 million to $113 million dollars. Quite frankly this is the first time I’m seeing this tonight – we’re talking $50 million difference, that’s not small change,” said Councillor Mark Hinton.
“I think this is very different than what we discussed previously. I think we need an update and to have a discussion if we’re still wanting to go ahead given the increase in costs,” said Deputy Mayor Andrew Tennant.
The jump in costs has been driven by a number of factors according to staff.
“The construction price index has been out of control for the past several years, with Covid and supplies running low, and the labour market being low, prices have skyrocketed over the last several years,” said Guy Bourgon, director of Public Works.
That being said, staff assured council that only rate payers and developers pay for any water and wastewater related capital projects big or small.
Given the new pricing, staff are recommending taking on debt to finance the expansions which the town needs in order to accommodate and service growth.
“We’d have to fund it with debt for a period of time, but we can service that debt through our development charges including interest on that debt,” said McConkey.
The town currently has two outstanding loans. This coming year, 2025 is the final year for a loan taken for a centrifuge at the sewage plant with an annual payment of $329,866. The town also has a loan on MVCA’s behalf for the mortgage on their building.
“The payments on that loan are recovered in full from MVCA but it still forms part of our limit. Payments are $277,005 per year,” explains McConkey.
The province sets debt limits for municipalities in the form of Annual Repayment Limits, and for Carleton Place that limit is close to six million dollars a year, suggesting that the town is in a good position to incur new debt if necessary.
“There is a new Canadian Infrastructure program that gives us close to the Bank of Canada rate, so as opposed to seven percent over 20 years, we would be looking at 30 years and close to 3.5 percent,” said McConkey.
Whether council approves the new, much larger budget in part or in it’s entirely remains to be seen, but Councillor Hinton was very clear about one point.
“Tax payers can be assured that their tax dollars are not going to be used for future water and wastewater plant management or expansion. This is all about development that has occurred and is going to occur in the future. I want everyone to hear clearly that developers are paying for this not taxpayers currently here,” he concluded.
