KAGAWONG—Billings Township council has agreed to pause interest charges being levied on residents as part of the Old Mill water capital billing until its newly formed water system policy committee has completed a review and council has adopted a policy for capital funding of the water system.
However, Billings Mayor Bryan Barker stressed at a council meeting in February that this review and policy does not have any impact on the water bill (approximately $888) from each of the 170 water users in the Billings system, and interest charges, if the bill is not paid.
“I’m just worried that there may be some feeling in the community that council would now be withdrawing this (when the policy is complete),” said Mayor Barker. “Those decisions were made by council previously and remain in place.”
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Council had reviewed a report to council from Veronique Dion CAO/Clerk of the township on a water system policy committee request that the township of Billings hereby pause interest charges on water capital billing until such time as the water system policy committee has completed the review and council has adopted a policy for capital funding of the Old Mill water system.
Council had been provided background from administration on the issue, noting in 2022 the township undertook major capital work on the Old Mill water system. The total cost of the project was $3,750,875. To fund the project, the township received $3,499,875 in funding, the township paid for a portion, and the remainder was charged back to those 10 residents directly affected on the Old Mill water system. The additional costs to water system users (10 water users at $20,000 each) came as a surprise and was not received well. Originally, council had been informed it had approximately $300,000 in its water bank account which would not be enough to carry out the work required and to have any funds left to carry out equipment replacements or any work required on the system in the near future. However, after public outcry and a presentation made by several members of the community, an audit took place and it was discovered that the township actually had about $565,000 in its water bank account. In February 2024, after discussion and review, council decided to create a water system policy committee (WSPC).
The following represent the general activities of the committee: develop clear procedures on capital projects and major upgrades to the waterlines on the Kagawong water system; consider if a water system asset management plan and water rate study should be completed and how it could be funded; review the current water levy and consider if the water levy should be broken down into operating and capital projects for the water plant and lift station for transparency; review options for implementing a capital levy that can be used to create a water capital reserve to offset capital costs associated with waterline replacements and upgrades for all benefitting properties; and develop communication and public engagement procedures.
“Although the WSPC terms of reference were set in February 2024, the committee only had their first meeting in December,” said Mayor Barker. “This is the result of a change in administration where the new CAO had to take some time to familiarize herself with all ongoing projects as well as history on files and current policies.”
The WSPC has now met on three occasions. The first meeting was to gather information and to understand what legislation and policies are currently in place. The second meeting consisted of a visit to the water treatment facility, which gave the committee a better understanding of the assets and capital costs involved with the water treatment facility. At the committee’s last meeting, the group started discussions on the policies that will be needed and provided administration with information on the content in some of the policies.
The report to council noted that at this point, the committee identified that they felt a sense of urgency due to the upcoming due date (February 16) of the capital bill. If the committee had started earlier, as was planned, the policies regarding funding and repayment for capital works would have been in place and details on collection and the management of interest would be in place, council was informed.
“First of all, I would like to thank Veronique (Dion, township CAO/clerk) for her guidance and direction on all of this,” said Councillor Vince Grogan. “We have knowledgeable, excellent people on the committee. We still don’t have all the information that we have requested of OCWA (Ontario Clean Water Agency). This is one barrier we are dealing with, so we can make a proper proposal to council. We can’t make final decisions and make recommendations to council until all the information is provided.”
“This is long overdue to set a policy that is fair for everyone,” stated Councillor Ian Anderson. “There is a good committee in place (to do the policy review and make recommendations to council) to help find solutions.”
Councillor Dave Hillyard said he had nothing more to say on the issue at this point, noting that when this issue was originally raised, and then it was found there was over $565,000 in the water account he felt that there was enough in the township water reserve to pay the balance of the bill. At that time, he put forward a motion for council to consider rescinding the cost bylaw.
However, when council considered Councillor Hillyard’s motion in 2023, it was defeated, with councillors Ian Anderson and Wayne Hunt, along with Mayor Barker voting in opposition, all indicating they wanted further information. Therefore, as he said at the recent meeting, he can’t bring the motion up for consideration and discussion.
Councillor Hillyard told The Expositor after council’s recent meeting, “in light of the new information at the time, and audited statements which showed a much more significant amount in the water back account, I felt the wrong decision had been made (by council), and if council had known this information when it had made the original decision, this would have been changed. So, I put forward the motion to rescind the cost bylaw.” Subsequently council decided that all 170 water users in the township would pay $888.
“What information is the committee lacking?” asked Mayor Barker.
“We need to understand and have a general overview of the longevity of the current system and such things and parts that are going to be needed and when they will need to be replaced for the water treatment plant. We just can’t find out down the line that a piece of equipment needs to be replaced,” said Councillor Grogan. He said that concerns that were raised previously by members of the public that council had not been forthcoming in providing information and costs involved relating to the water treatment system needs to be handled different and openly so these concerns will not come up again.
“Everyone is interested in making sure everything is brought forward, to council and the public. No one wants to see what happened in the past happening again,” said Councillor Barker. He said the committee will make sure that the report from the committee includes a water financial plan.
“We need to work toward this and to indicate that, for instance, we will be holding public meetings before making decisions that affect our ratepayers and water users like this,” said Councillor Grogan.
Councillor Hillyard said after the meeting, “The water users have funded that water reserve and contributed to the water system. Special consideration must be made for them when we have discussion on these ongoing issues.”
The committee meets once per month and it is expected the policy review and recommendations should be completed over the next three to four meetings with recommendations finalized and going to council hopefully in June.
