Kincardine council

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Kincardine council has postponed for a month the debate of the $2-million stranded debt on the lakeshore water pipeline project which runs along Bruce County Road 23 (B-line) from Ward 1 to Inverhuron Provincial Park.

The pipeline was built six years ago and was expected to be paid for as customers hooked onto it over the intervening years. However, only a dozen property owners have connected to it, beyond those who were required to do so, leaving the extensive debt carried forward by the municipality.

Council held a special meeting last month and rehashed the entire project, without any kind of resolution in sight. The major problem with encouraging any landowners along the pipeline to hook up now is that the current fee, including premium and interest, is $9,685.75.

In committee-of-the-whole Wednesday night (June 2), chief administrative officer John deRosenroll recommended council defer any decision on the debt until after the completion of the Environmental Assessment (EA) into the Inverhuron water and sewer project. That is expected by December of this year.

Also, he recommended council provide direction to staff on whether future subdivisions and severances would fund the capital charge upon registration. Currently, they do not pay the hook-up fee until the building permit is issued.

Councillor Ron Hewitt said the $9,600 charge for hooking up to the pipeline is a disincentive for landowners to connect. "We can defer the debt discussion, but we should consider lowering that to something more realistic."

That charge could be reduced to $7,283.41 for an occupied lot and $7,664.41 for a vacant lot, by removing the premium charge, said deRosenroll.

Hewitt said he would like to see the interest dropped as well, reducing the fee to about $6,100, which would include the original $5,800 charge plus a contribution to the reserve fund and the CPI (Consumer Price Index). Then reimburse those who have already paid the higher price.

Deputy mayor Laura Haight is concerned why a vacant lot is not charged a fire charge even though it is protected the same as an occupied lot. She said further discussion on the pipeline debt should be done sooner than later, perhaps at the July corporate services committee meeting.

The Inverhuron EA report would be ready for the public at that point, she said. "Maybe at that point, we'd be in a position to resolve this."

Otherwise, she said, if it is left to December, a new council would be in place and would have to be brought up to speed on the project.

Council agreed to table the issue until the corporate services committee meeting on July 14.

If council were to decide on mandatory hook-up by the end of 2015, all properties would have to connect and pay the capital charge of $7,283.41 each, plus future interest charges. All vacant lots would be assessed a charge of $7,662.41 each, plus future interest charges.

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Sunday, June 06, 2010