December 7 2016

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SPECIAL OLYMPICS COACH OF THE YEAR

Volume 56 • Issue 49

The Aurora Express Aurora Dance Academy hosted The Aurora Express dance recital at the Letkemann Theatre Dec 1. Thompson Citizen photo by Kacper Antoszewski

City outlines new consumption-based plan for funding new sewage treatment plant BY KACPER ANTOSZEWSKI KACPER@THOMPSONCITIZEN.NET

Thompson’s city council hosted a public consultation Nov. 30 in St. Joseph’s Hall surrounding the revised local improvement plan bylaw intended to pay for the city’s share of a new wastewater treatment plant, after a previous proposal was derailed by objections to the assessment method. The new plan no longer depends on the size of a property’s water meter to determine a property owner’s contribution. Rather, 75 per cent of the costs will be recovered through a proposed water rate rider of $0.58 per cubic metre for 25 years from 2019 to 2043. The other 25 per cent will be determined by a property’s frontage; ownershave the option of an annual estimated charge of $0.81 per foot for 25 years, or a onetime payment (one-time fees reduce the cost in the longterm, as the City of Thompson can immediately apply

this amount to the project prior to borrowing). Under the new plan, the average residential property will be charged an estimated $110.71 a year as a result of the water rate rider and $43.90 for frontage, creating a total annual increase of $154.61. The average one-time payment for a residential home is estimated at $563.06. In disallowing the city’s previous plan to pay back its share of the new sewage treatment plant construction costs, the Municipal Board agreed with objectors that water meter size was unfair to some property owners and that consumption was the preferred method of determining payments. However, Mayor Dennis Fenske noted that the board had strongly cautioned the council against depending entirely on consumption, as Thompson’s water consumption has not reached a stable level since the introduction of water meters to

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the city. Without a source of guaranteed income, he noted, the city is vulnerable to revenue shortages due to declining usage, and residents would be vulnerable to considerable increases in rates to close the gap between revenue and payment. “We’re trying to recognize that consumption is a fairer way, but we also have to protect the ratepayers from big fluctuations in payments,” said Fenske. “The fee based on frontage guarantees 25 per cent of our payment every year.” Fenske expects an annual obligation of roughly $960,000 to service the city’s debenture. While the cost of the project to the city is currently estimated at $12.5 million, Fenske notes that the final cost will likely be lower, as the calculated interest rate of six per cent is likely higher than what the actual rate will be. Fenske also noted that the

city had not yet exhausted its funding opportunities, and had recently received approval for a $750,000 grant towards the project. Council is also considering drawing funds from the city’s general reserves. Dave Tugwood expressed concerns that the treatment facility itself would not sufficiently accommodate potential growth in Thompson’s population, suggesting that municipal wastewater guidelines encourage planners to expect a consumption rate of 450 litres per person per day, and that the plant may not be equipped to handle this level of consumption from a specified population of 15,000. Fenske noted that while planning was entrusted to a contracted engineering firm, the concerns would be brought to the firm. Chris Haase questioned the arbitrary nature of the

frontage charge, wondering why sewage rates should vary household to household due to an unrelated metric. “Does that mean that if you have a bigger yard, you **** more?” he asked. “We should all be charged the same.” Derek Bonwick agreed, advocating for a per parcel billing to replace the frontage charge. “If 85 per cent of properties connected to the system are residential, shouldn’t 85 per cent of the money come from residential properties? ” Bonwick noted that per parcel still ensured a consistent stream of income in the face of fluctuating consumption. However, Fenske suggested that this system would place a disproportionate burden on residential properties when compared with consumption. Chiew Chong wondered whether Vale had been

approached for additional funding for the plant. However, Fenske noted that Vale’s contributions have already been numerous within the community and that Vale controls its own waste internally, and is not connected to the city sewage system. Oswald Sawh, president of the Thompson Chamber of Commerce, noted that municipal fees were making it increasingly difficult for outside investors to express interest in the community, and wondered how competitive our water rates and project costs were compared to other municipalities. City manager Gary Ceppetelli noted that the costs at hand were determined by the debenture owed, and that facility costs cannot be compared between municipalities with different demographics, geography and regulations.

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