Using the DC numbers from the township treasurer and the legally binding land tribunal decision the township lost income in Senariolp 1 total of $5.2 million. While in Senario 2 the township lost income of $3.1 million. Both senarios could have gone a long way in paying down the debt and reducing water rates and putting our township on a strong financial footing.
Colgan Financials using township treasurers numbers from staff report
After contacting the township treasurer on how much the township lost on Development charges the treasurer came up with a figure of $1,150,249 although my calculations were higher as the building permits were first issued in November 2022 we will give the township the benefit of the doubt and go by the treasurers number.
Senario 1
DC charges lost that the township should have collected = $1,150,249 (A)
Water connection fees for 644 homes at $6326.47 / home = $4,073,944 (B)
Total of $1,150,249 + $4,073,944 = $5,224,193
The above Senario 1 is based on the land tribunal decision where the township was not required to pay for any water tower (standpipe) and associated infrastructure, neither was the township required to pay for any wastewater plant upgrades to accommodate the 87 pre existing homes. and our DC bylaw where the DC rates were to be collected at the time of issuance of the building permit and not on the date of signing of the subdivision agreement. Based on the above calculations the township lost revenue of $5,224,193 or $5.2 million.
In Senario 1 with $5.2 million the entire water debt could have been paid back to working funds and the loan taken from residents on private wells could have been returned and the water rates would have been reduced.
Senario 2
DC charges lost that the township should have collected = $1,150,249 (A)
Water connection fees for 644 homes at $6326.47 / home = $4,073,944 (B)
Let’s say the township had to pay our share for the 87 pre-existing homes.
Sewer connection fees were calculated at $23,697 per home. So $23,697 x 87 homes = $2,061,639 (C)
Total of $1,150,249 (A) + $4,073,944 (B) – $2,061,639 (C) = $3,162,554
The Senario 2 is based on the land tribunal decision where the township was not required to pay for any water tower (standpipe) and associated infrastructure and the township pays its share for the sewer connections to accommodate the 87 pre existing homes and our DC bylaw where the DC rates were to be collected at the time of issuance of the building permit and not on the date of signing of the subdivision agreement. Based on the above calculations the township lost revenue of $3,162,554 or $3.1 million in Senario 2.
In Senario 2 with $3,162,554 a major portion of the water debt would be paid up and water rates would still be reduced.
The question that needs answers is the wastewater connection fees were to pay for the entire capital costs of the wastewater plant. As the connection fees were $23,697 per home x 644 homes = $15,260,868.
So the entire capital costs were $15,260,868. So, where did the township come up with the entire capital costs at $35,000,000. In this case there is an amount of 19,739,132 not accounted for. Which the staff report states was a benefit to the township. How can it be a benefit when the entire cost was to be covered by the connection fees?
Even if we add the pre-existing 87 homes in colgan + the 644 new homes = 731 homes then multiply by $23,697 wastewater connection fee = $17,322,507 total cost of the wastewater plant. So, where did the township come with the amount of $35,000,000
Below is the schedule T that the 4 councillors Annette Bays, Deborah Hall Chancey aka Deborah Hall, Scott Anderson (current mayor) and Jonathan Pita voted on and gave the developer a sweet heart deal to pay 525 homes total for both subdivisions on the date of execution of the agreement and not on the date of issuance of the building permits. They further issued the owner (developer) credits for the water tower (standpipe) and its associated infrastructure that we were never responsible to pay as per the land tribunal decision and also gave another credit for the wastewater connection fee that again we were never responsible to pay as per the land tribunal decision. The 4 councillors who approved the subdivision agreement along with the current majority of council who removed the hold should be made to pay back all this amount to the residents.
