Redirecting Cash Flow On Increased Rural Water Rates Fails
Cast Iron Water Main replacement in 2018 - File Photo
An attempt to re-direct the funds from increasing rural water rates from the operating budget to the water utility itself was defeated.
At Monday night’s meeting of Moose Jaw City Council there was an attempt to amend where the increased rural water rates are directed by Councillor Brian Swanson.
Speaking to Council Councillor Swanson said he was in favour of the increased rural water rates but wanted the funds directed to the water utility and not reducing the operating budget and taxes on Moose Jaw residents at the expense of rural water users.
“The City of Moose Jaw has some water lines that run out to the rural areas providing potable water to farms and rural residents that would have no access to that. It makes living out there much easier. In recognition that those users had not participated in the original purchase and financing of significant infrastructure to provide the water there was a rural water fee implemented where they pay more,” Swanson stated, he favoured that but did not favour rural residents subsidizing city property tax rates.
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“Last year there was a motion to reduce that (water) rate by increasing property taxes that passed and as a result the ratio rural water users are paying was reduced this motion attempts to correct that…by taking revenues from that increase and putting it into the operating budget when we used the money from infrastructure upgrades is just a way of reducing the property tax increase and angrying rural residents.”
Councillor Swanson felt that the funds should go directly to the water utility as there is a shortfall in tens of millions of dollars and every penny dedicated to infrastructure counted and putting the additional monies into the operating budget was the correct course to go.
“That has angered rural residents and I don’t blame them.” he said.
Mayor Fraser Tolmie said he opposed the amendment of where the additional monies should go as it was in reality charging city residents twice.
“You cannot come to us and say the rural community is going to be upset and the way to correct it is by charging the citizens of Moose Jaw twice. It is just not sound,” Mayor Tolmie stated.
“The citizens of Moose Jaw have subsidized that last year. What we are doing is correcting that and the rural communities will be paying for their portion of the water that comes from Buffalo Pound…what we are doing is saying the citizens of Moose Jaw should not have been paying that portion that is incorrect and slipped through the cracks last year. To say we are going to charge the citizens of Moose Jaw twice for that I cannot support that.”
Councillor Chris Warren agreed with Mayor Tolmie by stating that resident s subsidize water rates through taxes, their share of the gas tax and grants already and the additional funds charged to rural users should go directly into the operating budget.
“Se we are in essence already subsidizing these rates to the tune of $2.28 million a year (from the operating budget). Further we have utilized our gas tax to fund infrastructure to our water infrastructure,” Councillor Warren stated.
Councillor Scott McMann asked Administration for clarification whether the money was in fact flowing from the operating budget to the utility.
Finance director Brian Acker said the funds would flow into the water utility through the operating budget which residents of Moose Jaw have been contributing to and it will mean a “slight decrease in the taxation of that.”
In response Councillor McMann stated “I think it is a fair bit of discussion about almost nothing here folks.”
In a 6 - 1 vote against with Councillor Swanson the lone vote in favour the amendment failed.