Well over 200 people crowded into the municipal building south of Hillsburgh on Tuesday night, forcing Erin council to defer a discussion on the contentious issue of mandatory water system hook-ups for about 100 landowners living near existing water mains.
Town staff gave brief reports on that issue, as well as proposed water rate hikes of 20% over the next four years, and several residents spoke to the water rate issue.
But just several moments into the discussion on forcing landowners to pay upwards of $17,000 to join the municipal water system and decommission their private wells, one resident asked if the matter could be deferred and the venue changed so everyone could participate.
About half of the 100-plus people forced to stand in the lobby after the council chamber filled to capacity had already left because they could not hear the proceedings.
Mayor Lou Maieron seemed uncertain about the request, noting the meeting on Tuesday was a regular council meeting and not a public or special meeting.
“We had no idea who would be attending … Normal council meetings have two to four people in attendance,” Maieron said.
But councillor Barb Tocher interjected and suggested immediately scheduling another meeting that would be totally dedicated to the water hook-up issue – an idea met with resounding applause from the large crowd.
Council decided on May 31 as the date for that meeting, although an exact time and location is still to be confirmed.
Later in the meeting on Tuesday night, with about 10 people left in the audience, council approved water rate increases of 20% for the next four years, although it was not a unanimous decision.
Maieron, Tocher, and councillor Josie Wintersinger approved the water rate bylaw, while councillors John Brennan and Deb Callaghan were opposed.
Both Brennan and Callaghan preferred approving a 20% increase for one or two years only, rather than locking in the rates until 2015.
Given the uncertainty of future regulations and requirements from the provincial government, Brennan said it may be smarter to stick with a one-year approval and then review the matter in 2012.
“As long as we put [the rate approval] in for a long period of time, we can wind up – as we have for the past three years – running deficits in the water system,” Brennan added.
But Maieron, Tocher, and Wintersinger chose to proceed with the plan preferred by Water Superintendent Frank Smedley, which will see water rates rise 20% in 2011 (effective July 1), 2012, 2013, and 2014, and then rise by 5% per year until 2019.
Under the bylaw approved by council on Tuesday night, the annual cost for the average water user (190 cubic metres per year) will rise from $482 in the first half of this year to $1,051 in 2015.
Those figures were unacceptable to residents Howard McRae and Joe Moore, who earlier in the meeting spoke in opposition to the plan.
McRae told council the “rate shock,” when combined with already high taxes and high energy costs, is what has angered local residents.
The figures presented by Smedley don’t take into account one very important factor, McRae said – that water consumption will continue to decline with such high rates, so revenue generated within the system will likely not be as high as anticipated.
“Water conservation is not the water seller’s best friend,” he said.
He told residents “there is no longer a free ride” when it comes to local water rates and implored council to get the rate structure correct before approving the bylaw.
Moore, an Erin resident and owner of Image car wash, said council should first look at costs and try to save money “in-house” before looking to residents and businesses to help make up funding shortfalls.
“Instead you just hire a consultant to figure out how to increase [rates] and that’s not helping anyone … Where do you expect people to get the money?” Moore asked.
“You’re literally crushing the town. We need to evaluate. If it was my business, I’d have to step in and evaluate my costs.”
Maieron said he understands residents’ concerns, but the town is dealing with a small system with a limited number of users and with problems with leaky water mains.
“It’s not an easy fix,” Maieron said, adding council knows times are tough economically, but it also has to address the infrastructure needs of the municipality.
Tocher said part of council’s goal is water conservation, and the higher rates will also help with that.
She explained the 20% rate hike will really only be in effect for three and a half years (half of 2011 and up until the end of 2014) – and then increases will be 5%.
Maieron also said he realizes the rate increases are large, but compared to other municipalities, Erin’s rate will still be reasonable.
For more information on the water rates or the mandatory hook-ups (including the details for the proposed May 31 meeting), visit the town website at www.erin.ca.
