New provincial fees for aggregate companies will eliminate the supplemental contribution provided by two gravel pits in Wellington North.
In his Sept. 25 report, CAO Mike Givens explained fees have increased enough to cancel out the contribution from the Ghent and Stack pits through a haul route agreement made in 2016.
“The haul route agreement … in 2016 acknowledged that changes to the licence fees were a possibility,” Givens stated.
The agreement included a clause stating that if Ontario Aggregate Resources Corporation (TORAC) fees increase, the contributions would be correspondingly reduced.
Starting Jan. 1, annual fees provided to the municipality will essentially double.
Aggregate operators will have to pay 19.8 cents per tonne, with 61 per cent going to the local municipality, 15% to the upper tier municipality, 21% to the crown and 3% to Aggregate Resources Trust.
This is approximately 12 cents per tonne to the local municipality.
This is an increase from the current model of 11.5 cents per tonne, of which six cents go to the local municipality, 1.5 cent to the upper tier, 3.5 cents to the crown and 0.5 cents to Aggregate Resources Trust.
Essentially, the changes mean the township will still be receiving about $0.12 per tonne, but the money will come strictly from provincial fees and not through haul route agreements.
The new numbers will increase with inflation.
“The tonnage figures, which are being established at 19.8 cents now – that figure will be adjusted based on CPI,” said Givens.
Mayor Andy Lennox said the provision will help in the future.
“We’re trying to avoid the situation we have currently where it’s six cents for an extended period of time with no adjustment, and yet our costs continue to escalate,” Lennox said.
“It’s a good News story except for when we go to buy gravel,” he added.
Givens conceded, “Potentially, there will be a trickle effect.”
