On September 12, 2011, Council held its second special meeting to discuss the sharing of hydro revenues. While resistance still remains to the concept from some Almonte councillors, the meeting did see a consensus form that sharing is inevitable and the monetary impact on Town water users must be limited.
If you have not followed this issue so far, my last post on this subject includes background info.
Several councillors presented a sharing formula. While different in details, each formula would see 66-80% of hydro revenues still going to subsidize water rates in the Almonte ward.
John Edward's proposal won support from a plurality of councillors. Essentially, it states we use the hydro revenue to pay down capital debt, with the biggest debt sources (such as the sewage plant) getting the biggest share. (I am backing his proposal because it would achieve the same results as my proposal but be simpler to understand and administer.)
Councillors Bernard Cameron and Duncan Abbott made a strong plea to take a whole Mississippi Mills view and leave the names of wards, and the mention of urban and rural, out of the discussion.
Mayor John Levi suggested the Town might use general revenues to cover part of the water/sewer costs, or the Town could pay Almonters for their pre-amalgamation hydro asset to reduce the debt charge portion of the water bill.
Councillor Val Wilkinson suggested two sharing formulas: 1, that all funds from ORPC continue to subsidize water/sewer costs, and MRPC revenue be split between capital costs and sewer/water costs on a population basis; 2, that 2/3 of the total hydro revenues (ORPC and MRPC) subsidize water/sewer costs, and the rest apply to general capital. She also suggested all Town residents pay a one-time tax, not just the rural residents as proposed by the last Council. This would provide a big down payment on the sewage plant debt.
Councillor Alex Gillis made a very strong case, echoed by Councillors Dalgity and Rick Minnille, that the Town not let water charges become a crippling financial burden on families. All rural councillors spoke in sympathy with this position—no rural councillor expects a population-based split of hydro funds.
Councillors Paul Watters and Abbott did remind Council that the long-term cost for rural residents to provide their water and septage systems is likely greater than what town water users will pay.
The next meeting on hydro revenue sharing is set for October 27. For that meeting, I asked Town staff to prepare a report that applies Councillor Edward's sharing formula to Town debts so that we can see its effects in real dollar terms.
I will keep you posted.
If you are not familiar with MRPC and ORPC, see my earlier backgrounder on hydro revenues.
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