Infrastructure And Funding Comes Under Committee Focus

With the Capital Funding debate over Budget Committee turned its attention to the Sewer and Waterworks Utilities.
Movement on Sewage Sludge Funding

Not using funding to remove sewage sludge from the sewage treatment plant but building a growing reserve fund came under the microscope at Monday evenings Budget Committee.

Speaking on the issue Councilor Chris Warren pointed out a budget was available to move the sewage sludge but there was no movement of it.

“We have not been disposing of sludge although we are budgeting for it,” Councilor Warren stated, adding “we now have a $1.93 million sludge disposal reserve.”

By adding the additional funding the reserve would grow to $2.156 million he said with only $900,000 required by 2021-2022.

“That’s $1.256 million more than required,” he said, adding “I would like to see this corrected.”

Councilor Warren proposed to see $0 contributed to sludge removal in 2019 and future requirements be evaluated as needed.

Councilor Brian Swanson called for separate votes on the motion.

In the motion the part to make no contributions was passed unanimously in a 7-0 vote.

In the portion of the motion to see future program requirements be evaluated to determine what was required the vote was once again unanimous with a 7-0 vote.

The vote to kill the reserve was not unanimous with Councilor Swanson opposed in a 6-1 vote.

Earlier in the discussion he had pointed out there had been problems with sludge disposal and funding needed to be available.

Water Rates Headed Up

After the sewage sludge discussion Councilor Swanson left the Budget Committee meeting.

The Committee then set the annual water rate increase of six percent in a 5-1 vote with Councilor Dawn Luhning opposed.

It needs to be noted during the previous Budget Committee discussions there was a strong indication the water rate increase was decided partially through in-camera Strategic Planning Sessions.

Additionally the rate to charge 15 Wing was also discussed behind closed doors as part of the in-camera discussions. SEE RELATED Air Base Water Rate Increases

1200 Block of Seventh Avenue NW blocked off for Phase Three of Cast Iron Water Main Replacement

Councilor Brian Swanson would later call the behind closed doors discussion “mathematical gymnastics” something Mayor Frasier Tolmie took offence with.

In-camera discussions are usually restricted to legal, land and personnel issues. No justification for holding the 15 Wing water rate discussions behind closed doors was provided during the public portion of the Budget Committee meeting.

Infrastructure Levy Maybe Not

Following Budget Committee approving the move to cap the Five Year Capital Budget at $200 million down from the originally proposed $242 million Councilor Chris Warren moved to eliminate the pending Infrastructure Levy.

The proposed levy had drawn criticism from some members of Budget Committee at an earlier meeting as the proposed levy would be determined by water meter size. The reasoning given by Administration was it was all based upon how much of the capital infrastructure cost water users paid.

By capping infrastructure spending at $200 million Councilor Warren stated at the present time the proposed Infrastructure Levy was not necessary.

Councilor Swanson Speaking During Budget Committee Debate

“That levy is not needed in the financial model,” he said, adding “it doesn't eliminate the need for a levy in the future.”

Councilor Warren requested Administration prepare a report into “the need of an Infrastructure Levy for the 2020 budget process.”

Councilor Heather Eby said the “idea of a levy was tossed around in 2015 and 2016...in 2017 a motion of this Council in 2019 to make up for funding for cast iron (water main) replacement.”

Councilor Eby was not on Council when the motion was made to transition the present Hospital Levy to an Infrastructure Levy as she had been defeated in the October 2017 Civic Election.

But it should also be noted in her first term on Council Councilor Eby had floated the idea of an Infrastructure Levy or a Flat Tax on all properties to pay for road, water, sewer and other infrastructure needs residents were demanding. The proposed levy back then was rescinded before reaching a vote due to a public backlash.

Mayor Frasier Tolmie stated he supported the idea of a review.

File Photo - Mayor Frasier Tolmie addressing Council

“I don’t like tacking on an Infrastructure Levy to the Hospital (Levy). We should finish that and if we are going to introduce a levy for infrastructure,” Mayor Tolmie stated.

He spoke about “having conversations with other councilors” on the issue although he did not state which ones. In the past the Mayor has stated Council does not make decisions outside of the regular meeting structure.

Eliminating the need to institute an Infrastructure Levy tied to the soon to be paid off Hospital Levy as well as asking Administration to prepare a report about a potential levy was approved 5-1 with Councilor Dawn Luhning opposed.

The Hospital Levy was instituted as a Flat Tax on all properties. All properties paid the same with apartments and condos plus trailer courts charged the levy on a per unit basis. The reasoning for the levy being applied equally as a flat tax was all residents used the hospital at one time or another. SEE RELATED

All decisions made by Budget Committee are not finalized until approved at a Council Meeting as part of the Budget Bylaw and are subject to change.