ERIN – Erin council will need to have a special council meeting before May 31 after referring the Water Financial Plan report back to staff for more information at its May 19 meeting.
Watson and Associates Economists Ltd. was retained by the town to produce the financial plan – one of five requirements the town must fill to be licensed to operate the water system.
But councillors found the report did not reflect the financial reality of post-pandemic times nor the financial decisions council has made since December 2019.
The forecast was based on the 2019 water rate study.
“I know the 2019 rate study is the basis for the financial forecast, but since then there have been significant activities and they need to be reflected in the forecast,” said councillor Michael Robins.
Nick Colucci, director of infrastructure services, said the numbers will be updated next year, and the capital projects not reflected in this study will be included next year as well.
But Robins said he still doesn’t feel right about endorsing the forecast, which then goes on to the province.
“It should have the most relevant and accurate information as we believe to be the case,” Robins said.
“I acknowledge this information was not there in December, but circumstances have changed and this (forecast) should reflect the changes we have approved.”
Robins said council approved a $3 million water pipe replacement in Hillsburgh after a watermain break over the winter and that is not reflected in this forecast.
He said the forecast, which is to look five years ahead, doesn’t support Erin’s growth plan.
And the cash flow projections do not include the reality that the town’s cash flow is expected to drop from $10 million to $4 million by year-end.
“All these things will impact the numbers in the forecast,” Robins said.
Council voted unanimously to send the plan back to staff and to hold a special council meeting before May 31, when the report is due to the province.
Council passed the tax rate bylaw for 2020 and added an amendment to include its decision in March to waive fees and penalties on late taxes on April 1 and May 1.
The next two instalments are due on Sept. 30 and Nov. 30.
Director of finance Ursula D’Angelo asked that all tax classes become due on the same day in an effort to make it easier for property owners with properties in multiple tax classes. Residential, industrial, commercial and farm are examples of different tax classes.
D’Angelo told council that Wellington County is allowing its member municipalities to pay the county portion of the tax bill proportionally – that is, based on the proportion of taxes they are able to collect as opposed to paying the full amount due – but by December, the full amount will be due.
“By December 15 we will have to pay the full amount,” she said.
“It requires a resolution at county council to change that.”
