Audit committee meeting has an important discussion on water and wastewater loan which has now crossed $5 million and the colgan wastewater maintenance agreement with OCWA signed by the township although the township has not assumed the colgan wastewater plant so we do not own the plant.
THIS IS WHAT DEVELOPMENT GETS US
I have attached links to both the recordings below. Each recording is around 4 minutes. Hear the recording so you can make informed decisions of the financial state of the Township. Even the Township Auditor has stated we are in a deficit for water and wastewater.
Water and wastewater loan : The audit meeting confirms entire township paying to subsidize water and wastewater and the water and wastewater users are paying twice for the rates. The councillor for ward 4 Miklos Borsos and the deputy mayor Julius Lachs both claim that this is a loan that will be paid back. However, when the councillor for ward 2 Bob Meadows asked when will the loan be paid back not one of them could give a date. Here is the link to the water and wastewater loan discussion.
Colgan wastewater plant : Our current township council has created history by signing a $500,000 agreement with OCWA to maintain the colgan wastewater plant for 5 years for the developer who owns the plant. This agreement was signed in 2024 and ends in 2029. The question is why did the township sign an agreement to maintain a plant when the township has not assumed the Colgan wastewater plant? As the township has not assumed the plant, the plant is still legally owned by the developer, so the developer should be maintaining the plant. Why is the Township collecting revenue from wastewater users for the colgan wastewater plant when the township has not assumed it? Just to clarify the comments made by the ward 4 councillor Miklos Borsos that it could be legislated. There is absolutely no legislation that states that the township is obligated to sign a maintenance contract for a plant that the township has not assumed and therefore does not own. The developer could hire a third party to manage the wastewater until the Township assumed the wastewater plant. Here is a link to the recordings for the colgan wastewater plant.
I have also attached below a page from the audit report. At the bottom of the report it addressess the water and wastewater debt (loan) showing around $5 million plus.
At the top point 13 (a) shows the balance of the colgan well debt that expires in 2029.
Point 13(b) shows a new loan (debt) of $3,684,307 taken in 2024 with a balance of $3,590,965 in 2025 this loan expires in 2048.
So, this term of council has increased debt on the township.
The total debt on the township is now $4,984,180 as of 2025 with interest Total debt $7, 175,765 ($7 million plus) add to this the $5 million internal loan for water and wastewater.. Let’s not forget the $27 million that the township could have to come up with for the grant for the Everett wastewater plant or any side agreements made to exempt the developers from water and wastewater hookup fees.
Read point 15 on the document below “The Ontario clean water Act requires that water and wastewater rates be set so that the systems are self-sustaining.” So, why is the entire township subsidizing water and wastewater in violation of the provincial act? Why was the debt for the Colgan well that benefits the development not recovered from the developer that was supposed to reduce the water debt by around $1.8 to $2 million? While members of council will turn and twist the facts the audit statement discloses the facts on the township financial position on water and wastewater and the Total township debt.
