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HomeMy Public PortalAboutC A 2014-04-10Page 1 of 2 MUNICIPALITY OF THE DISTRICT OF CHESTER CHESTER MUNICIPAL COUNCIL Thursday, April 10, 2014 at 8:45 a.m. AGENDA 1. MEETING CALLED TO ORDER. 2. MINUTES OF PREVIOUS MEETING: 2.1 Council – Thursday, March 13, 2014 3. MATTERS ARISING: 3.1 Universal Sewer Rate: · Information - Presentation by CAO on Universal Sewer Rate Options from March 20, 2014. Handout 1 – EDU 1/EDU 2 Handout 2 - options a) Ray Cambria regarding sewer rate – appointment at 9:20 a.m. b) Brenda Mulrooney, Chester Village Commission regarding sewer rate – appointment at 9:30a.m. c) Email from Richard and Peggy Wilson dated April 1, 2014 regarding sewer rate proposal. d) Email from Daryl Gray dated April 1, 2014 regarding sewer rates. 4. COMMITTEE REPORTS: 4.1 Committee of the Whole – March 20, 2014 – Warden Webber 4.2 Recreation and Parks Committee – March 17, 2014 – Councillor Connors 4.3 Health and Wellness Committee – March 18, 2014 – Deputy Warden Shatford 4.4 Any Other Reports 5. CORRESPONDENCE: 5.1 Letter from Chester Merchants Association regarding concerns for the delay in completing the sidewalk on Duke Street between Union and Pleasant Streets. 5.2 Letters of support/concerns – Our Health Centre: a) Letter from Vicky Bremner dated February 27, 2014. b) Email from Jeff Somerville dated March 5, 2014. c) Letter from Dr. Michael Fleming dated March 7, 2014. d) Email from George and Claudette Sapp dated March 8, 2014. e) Letter of concern from anonymous resident. 5.3 Public Information - Notice of Change to the Village of Chester dated March 13, 2014. 5.4 Letter from Municipality of the County of Kings dated March 5, 2014 regarding Notice of Public Hearing. 5.5 Letter of response from Minister of Nova Scotia Department of Agriculture dated March 6, 2014 regarding your constituent’s concern for animal welfare. Page 2 of 2 5.6 Letter from John Morash and Bernard Smith dated March 3, 2014 regarding Objective Reviews – a new resource to the attention of NS Municipalities and for the express purpose of assisting municipalities in dealing with what we perceive to be a set of increasingly difficult issues. 5.7 Email from Greg Lowe, CKBW/CJHK Advertising Consultant dated March 28, 2014 regarding request for support for advertising space to get the message out regarding “Distracted Driving” April 2014 Campaign. 5.8 Letter from Regional Emergency Management Organization (REMO) dated March 17, 2014 regarding approval of the 2014/15 Operating Budget. 5.9 Memo from Director of Finance dated April 10, 2014 regarding Municipal Finance Corporation – Spring Debenture. 5.10 Memo from Director of Finance dated April 10, 2014 regarding Provincial Kilometer Travel Rate. 6. NEW BUSINESS. 7. ADJOURNMENT. APPOINTMENTS 9:20 a.m. Ray Cambria, Resident of Chester regarding sewer rate. 9:30 a.m. Brenda Mulrooney, Chester Village Commission regarding sewer rate. In Camera following regular session under Section 22 of the MGA if required Un i v e r s a l S e w e r R a t e Op t i o n s MA R C H 2 0 TH , 2 0 1 4 Un i v e r s a l S e w e r D i s c u s s i o n s t o D a t e Co u n c i l h a s b e e n d i s c u s s i n g u n i v e r s a l s e w e r o p t i o n s a n d p h i l o s o p h i e s s i n c e CO W o n F e b r u a r y 2 1 , 2 0 1 3 ; To d a t e C o u n c i l h a s c o n s i d e r e d t h e f o l l o w i n g o p t i o n s: Fl a t R a t e As s e s s m e n t - C a t e g o r i z e d As s e s s m e n t - G e n e r a l Co m b i n a t i o n o f F l a t R a t e a n d A s s e s s m e n t Hy b r i d ED U 1 ED U 2 Di r e c t i o n f r o m C o u n c i l – F e b r u a r y 20 1 4 At t h e F e b r u a r y 1 8 th CO W M e e t i n g , S t a f f w e r e a s k e d t o e x a m i n e a d d i t i o n a l un i v e r s a l s e w e r r a t e s c e n a r i o s f o r : • Th e c u r r e n t r a t e s c h e m e + 1 0 % , 1 5 % , 2 0 % • A m o d i f i e d f l a t r a t e o p t i o n • A m o d i f i e d E D U s y s t e m Co n s i d e r a t i o n s Ba s e d o n d i r e c t i o n f r o m C o u n c i l a n d f e e d b a c k r e c e i v ed f r o m t h e p u b l i c , st a f f h a v e e x a m i n e d a n d i n t e r p r e t e d t h e v a r i o u s o p t io n s w i t h t h e g o a l o f : Es t a b l i s h i n g a fa i r sy s t e m u n d e r w h i c h r a t e s a r e e s t a b l i s h e d ; Mi n i m i z i n g t h e i m p a c t o n l o w e r i n c o m e s y s t e m u s e r s ; En s u r i n g t h a t p r o p o s e d c h a n g e s d o n o t s t i f l e b u s i n e ss d e v e l o p m e n t op p o r t u n i t i e s f o r s y s t e m u s e r s ; En s u r i n g c o n s i s t e n c y w i t h C o u n c i l p o l i c y a n d t h e S t ra t e g i c P l a n Cu r r e n t S i t u a t i o n WH A T A R E E X I S T I N G U S E R S PA Y I N G ? HO W H A V E R A T E S T R E N D E D ? Wh y a r e w e t a l k i n g a b o u t u n i v e r s a l se w e r r a t e o p t i o n s ? We a r e c u r r e n t l y n o t p r o a c t i v e l y b u i l d i n g u p r e s e r v e a c c o u n t s t h r o u g h t h e bu d g e t p r o c e s s – s u r p l u s a m o u n t s t h a t c u r r e n t l y s i t in r e s e r v e s f o r t h o s e s y s t e m s th a t a r e n o t r u n n i n g d e f i c i t s a r e t h e r e s u l t o f c u m ul a t i v e u n d e r - e x p e n d i t u r e s op e r a t i o n a l l y i n a n y g i v e n y e a r a n d a r e n o t a s s o c i a te d w i t h p l a n n i n g f o r f u t u r e ca p i t a l n e e d ; We c u r r e n t l y h a v e s i x s e p a r a t e s y s t e m s t h a t a l l h a v e u n i q u e r a t e s t r u c t u r e s as s o c i a t e d w i t h t h e m . T h i s h a s c r e a t e d a d i s c r e p a n c y i n u s e r f e e s t h r o u g h o u t th e M u n i c i p a l i t y , b o t h i n t e r m s o f h o w t h e r a t e s a r e c a l c u l a t e d a n d w i t h re s p e c t t o t h e o v e r a l l f i n a n c i a l b u r d e n o n t h e u s e r s a s s o c i a t e d w i t h e a c h sy s t e m ; So m e o f t h e s e w e r s y s t e m s a r e n o t s u s t a i n a b l e o n t h ei r o w n ; Th e r e h a s b e e n s o m e d i s c u s s i o n a t C o u n c i l r e g a r d i n g t h e p h i l o s o p h y t h a t u s e r s of t h e s y s t e m s s h o u l d b e a r t h e c o s t s a s s o c i a t e d w i t h t h e s y s t e m s . Cu r r e n t F i n a n c i a l S n a p s h o t ( 2 0 1 3 / 1 4 ) Sy s t e m O p e r a t i o n a l Bu d g e t Ca p i t a l f r o m Re v e n u e B u d g e t Ca p i t a l f r o m D e b t 2 0 1 2 / 1 3 S u r p l u s (Deficit) Ch e s t e r $ 2 6 8 , 6 7 1 . 0 0 $ 1 4 5 , 5 0 0 . 0 0 $ 2 4 2 , 9 6 1 . 0 0 Ch e s t e r B a s i n $ 1 6 , 1 4 2 . 0 0 $ 1 0 , 0 0 0 . 0 0 ( $ 1 6 0 , 2 3 9 . 0 0 ) Ot t e r P o i n t $ 1 8 , 3 0 4 . 0 0 ($21,406.00) Mi l l C o v e $ 3 5 , 8 7 8 . 0 0 $ 2 5 , 0 0 0 . 0 0 $ 1 5 , 0 0 0 . 0 0 ( $ 1 , 8 3 6 . 0 0 ) Ne w R o s s $ 1 8 , 0 1 5 . 0 0 $ 1 2 0 , 0 0 0 . 0 0 ( $ 1 7 , 8 5 5 . 0 0 ) We s t e r n S h o r e $ 1 8 6 , 8 5 0 . 0 0 $ 1 5 0 , 0 0 0 . 0 0 ( $ 4 6 , 0 4 4 . 0 0 ) $5 4 3 , 8 6 0 . 0 0 $ 1 7 0 , 5 0 0 . 0 0 $ 2 9 5 , 0 0 0 . 0 0 ( $ 4 , 4 1 9 . 0 0 ) Ch e s t e r In C h e s t e r t h e r e a r e 7 9 1 c o n n e c t i o n s ; 73 % o f a l l s e w e r a c c o u n t s a r e a s s o c i a t e d w i t h a s s e s sm e n t s l e s s t h a n $ 3 0 0 , 0 0 0 ; 17 % a r e f o r a c c o u n t s w i t h l e s s t h a n $ 1 0 0 , 0 0 0 i n a s s es s m e n t a n d t h e m a x i m u m b i l l i s $ 1 8 0 . 0 0 a n n u a l l y ; av e r a g e i s $ 9 5 . 0 0 ; 32 % a r e f o r a c c o u n t s b e t w e e n $ 1 0 0 , 0 0 0 - $ 2 0 0 , 0 0 0 i n a ss e s s m e n t a n d t h e m a x i m u m b i l l i s $ 3 6 0 . 0 0 a n n u a l l y ; av e r a g e i s $ 2 8 4 . 0 0 24 % a r e f o r a c c o u n t s b e t w e e n $ 2 0 0 , 0 0 0 - $ 3 0 0 , 0 0 0 i n a ss e s s m e n t a n d t h e m a x i m u m b i l l i s $ 5 4 0 . 0 0 a n n u a l l y ; av e r a g e i s $ 4 3 4 . 0 0 . 23 % o f a c c o u n t s h a v e a n a s s e s s e d v a l u e o f g r e a t e r t ha n $ 3 0 0 , 0 0 0 a n d l e s s t h a n $ 1 m i l l i o n a n d th e a v e r a g e b i l l i s $ 8 9 1 . 0 0 4% o f a c c o u n t s h a v e a n a s s e s s e d v a l u e o f g r e a t e r t h an $ 1 m i l l i o n a n d t h e a v e r a g e b i l l i s $2 5 9 1 . 0 0 a n n u a l l y . Th e c u r r e n t r a t e i s $ 0 . 1 8 a n d t h e o v e r a l l a v e r a g e r es i d e n t i a l b i l l i s $ 5 0 9 . 0 0 a n n u a l l y ; CA M S a n d C E b o t h p a y f l a t r a t e a m o u n t s Ch e s t e r B a s i n Th e r e a r e c u r r e n t l y 5 c u s t o m e r s o n t h e s y s t e m ; Th i s s y s t e m i s c u r r e n t l y b a s e d o n a f l a t r a t e o f $ 1 ,0 0 0 a n n u a l l y p e r cu s t o m e r ; Th r e e o f t h e e x i s t i n g c u s t o m e r s h a v e a n a s s e s s m e n t be t w e e n $ 1 0 0 , 0 0 0 - $2 0 0 , 0 0 0 ; o n e u s e r i s a s s e s s e d b e t w e e n $ 2 0 0 , 0 0 0 - $ 3 0 0, 0 0 0 a n d o n e u s e r i s as s e s s e d b e t w e e n $ 3 0 0 , 0 0 0 - $ 4 0 0 , 0 0 0 . We s t e r n S h o r e Th e r e a r e c u r r e n t l y 3 8 5 c o n n e c t i o n s o n t h e W e s t e r n Sh o r e s e w e r ; 65 % o f a l l u s e r s h a v e a n a s s e s s e d v a l u e o f l e s s t h a n $ 1 0 0 , 0 0 0 ; 28 % o f a l l u s e r s h a v e a n a s s e s s e d v a l u e b e t w e e n $ 1 0 0, 0 0 0 - $ 2 0 0 , 0 0 0 ; 7% o f a l l u s e r s h a v e a n a s s e s s e d v a l u e g r e a t e r t h a n $ 2 0 0 , 0 0 0 ; Cu r r e n t l y r e s i d e n t i a l c u s t o m e r s p a y $ 3 5 0 . 0 0 a n n u a l l y a n d c o m m e r c i a l cu s t o m e r s p a y $ 7 0 0 . 0 0 a n n u a l l y ; At l a n t i c a H o t e l , O a k I s l a n d a n d G o l d R i v e r S c h o o l p a y v a r i o u s f l a t r a t e am o u n t s ; Un s e r v i c e d l o t s p a y o n a n a s s e s s m e n t b a s i s o f $ 0 . 7 7 Ne w R o s s Th e r e a r e c u r r e n t l y 1 7 u s e r s o n t h e s y s t e m ; Re s i d e n t i a l u s e r s p a y a f l a t f e e o f $ 1 , 1 0 0 a n n u a l l y ; Th e S e n i o r ’ s C o m p l e x p a y s a f l a t f e e o f $ 1 1 , 0 0 0 a n n ua l l y ; 72 % o f a l l a c c o u n t s a r e a s s e s s e d a t l e s s t h a n $ 1 0 0 , 00 0 ; 14 % o f a l l a c c o u n t s a r e f o r a s s e s s m e n t s b e t w e e n $ 1 0 0, 0 0 0 - $ 2 0 0 , 0 0 0 ; 7 % ar e f o r a s s e s s m e n t s b e t w e e n $ 2 0 0 , 0 0 0 - $ 3 0 0 , 0 0 0 ; 7 % a re f o r a s s e s s m e n t s be t w e e n $ 3 0 0 , 0 0 0 - $ 4 0 0 , 0 0 0 . Mi l l C o v e Th e r e a r e c u r r e n t l y 2 4 a c c o u n t s ; Th e s e a c c o u n t s a r e c h a r g e d b a s e d o n a s s e s s m e n t a t a r a t e o f $ 0 . 5 0 ; 71 % o f a c c o u n t s a r e a s s e s s e d a t l e s s t h a n $ 2 0 0 , 0 0 0 ; t h e r e s t v a r y i n as s e s s m e n t l e v e l w i t h o n e a c c o u n t a s s e s s e d i n e x c e s s o f $ 2 m i l l i o n . Ot t e r P o i n t Th e r e a r e c u r r e n t l y 4 1 a c c o u n t s a s s o c i a t e d w i t h t h i s s y s t e m ; Re s i d e n t i a l a c c o u n t s p a y a f l a t f e e o f $ 5 0 0 . 0 0 a n n u al l y a n d u n s e r v i c e d l o t s pa y a f l a t f e e o f $ 1 6 7 . 0 0 ; 46 % o f a l l u s e r a c c o u n t s h a v e a n a s s e s s e d v a l u e o f le s s t h a n $ 1 0 0 , 0 0 0 – cu r r e n t l y t h e s e a r e a l l u n s e r v i c e d l o t s ; Of t h e r e m a i n i n g c u s t o m e r s , a s s e s s m e n t v a l u e s r a n g e f r o m $ 1 3 7 , 0 0 0 - $5 1 5 , 2 0 0 , w i t h t h e a v e r a g e a s s e s s e d v a l u e o f $ 2 8 2 , 2 09 . A Q u i c k C o m p a r i s o n - R e s i d e n t i a l As s e s s e d V a l u e o f P r o p e r t y A n n u a l S e w e r B i l l Ch e s t e r N e w R o s s W e s t e r n Sh o r e Ot t e r Po i n t Mill CoveChester Basin $1 0 0 , 0 0 0 $ 1 8 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 0 0 0.00 $2 0 0 , 0 0 0 $ 3 6 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 0 00.00 $3 0 0 , 0 0 0 $ 5 4 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 5 0 0 . 0 0 $ 1 , 0 00.00 $5 0 0 , 0 0 0 $ 9 0 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 2 , 5 0 0 . 0 0 $ 1 , 0 00.00 $1 , 0 0 0 , 0 0 0 $ 1 , 8 0 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 5 , 0 0 0 . 0 0 $1,000.00 Wh a t h a v e r a t e s l o o k e d l i k e o v e r t h e pa s t 7 y e a r s ? 20 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 Ot t e r P o i n t ( r e s i d e n t i a l ) $ 4 0 5 $ 4 0 5 $ 5 0 0 $ 5 0 0 $ 5 0 0 $ 5 0 0 $ 5 0 0 Mi l l C o v e . 6 0 . 6 0 . 5 0 . 5 0 . 5 0 . 5 0 . 5 0 Ch e s t e r . 1 8 . 1 8 . 1 8 . 1 8 . 1 8 . 1 8 . 1 8 Ch e s t e r B a s i n $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 0 0 0 $ 1 , 000 We s t e r n S h o r e ( r e s i d e n t i a l ) $ 2 5 0 $ 2 5 0 $ 3 5 0 $ 3 5 0 $ 3 5 0 $ 3 5 0 $350 We s t e r n S h o r e ( c o m m e r c i a l ) $ 5 0 0 $ 5 0 0 $ 7 0 0 $ 7 0 0 $ 7 0 0 $ 7 0 0 $ 700 We s t e r n S h o r e ( A t l a n t i c a ) $ 2 7 , 9 6 9 $ 2 7 , 9 6 9 $ 3 9 , 1 5 6 $ 3 9 , 1 56 $ 3 9 , 1 5 6 $ 3 9 , 1 5 6 $ 3 9 , 1 5 6 We s t e r n S h o r e ( s e n i o r s ap a r t m e n t s ) $3 , 7 5 0 $ 3 , 7 5 0 $ 5 , 2 5 0 $ 5 , 2 5 0 $ 5 , 2 5 0 $ 5 , 2 5 0 $ 5 , 2 5 0 Ne w R o s s $ 5 0 0 $ 5 0 0 $ 8 7 5 $ 8 7 5 $ 1 , 1 0 0 $ 1 , 1 0 0 $ 1 , 1 0 0 Ne w R o s s ( s e n i o r s c o m p l e x ) $5 , 0 0 0 $5 , 0 0 0 $8 , 7 5 0 $8 , 7 5 0 $11,000$11,000$11,000 Ex i s t i n g S y s t e m + 1 0 % , 1 5 % , 2 0 % PR O S , C O N S A N D CO N S I D E R A T I O N S Ex i s t i n g S y s t e m + 1 0 % , 1 5 % , 2 0 % Cu r r e n t + 1 0 % + 1 5 % + 2 0 % Mi l l C o v e $. 5 0 $ . 5 5 $ . 5 7 5 $ . 6 0 Ch e s t e r $0 . 1 8 $ . 1 9 8 $ . 2 0 7 $ . 2 1 6 CE $5 , 0 6 0 $ 5 , 5 6 6 $ 5 , 8 1 9 $ 6 , 0 7 2 CA M S $8 , 7 4 0 $ 9 , 6 1 4 $ 1 0 , 0 5 1 $ 1 0 , 4 4 8 Ot t e r P o i n t – R e s i d e n t i a l $ 5 0 0 $ 5 5 0 $ 5 7 5 $ 6 0 0 Ot t e r P o i n t - U n s e r v i c e d $ 1 6 7 $ 1 8 4 $ 1 9 2 $ 2 0 0 Ch e s t e r B a s i n $1 , 0 0 0 $ 1 , 1 0 0 $ 1 , 1 5 0 $ 1 , 2 0 0 We s t e r n S h o r e – R e s i d e n t i a l $ 3 5 0 $ 3 8 5 $ 4 0 3 $ 4 2 0 We s t e r n S h o r e - C o m m e r c i a l $ 7 0 0 $ 7 7 0 $ 8 0 5 $ 8 4 0 We s t e r n S h o r e - U n s e r v i c e d $ . 7 7 $ . 8 4 7 $ . 8 8 6 $ . 9 2 4 Go l d R i v e r W e s t e r n S h o r e S c h o o l $ 7 , 0 0 0 $ 7 , 7 0 0 $ 8 , 0 5 0 $ 8 , 400 At l a n t i c a H o t e l $3 9 , 1 5 6 $ 4 3 , 0 7 2 $ 4 5 , 0 2 9 $ 4 6 , 9 8 7 We s t e r n S h o r e S e n i o r s A p a r t m e n t s $ 5 , 2 5 0 $ 5 , 7 7 5 $ 6 , 0 3 8 $ 6 ,300 Ne w R o s s R e s i d e n t i a l $ 1 , 1 0 0 $ 1 , 2 1 0 $ 1 , 2 6 5 $ 1 , 3 2 0 Ne w R o s s S e n i o r s C o m p l e x $ 1 1 , 0 0 0 $ 1 2 , 1 0 0 $ 1 2 , 6 5 0 $ 1 3 , 2 0 0 A Q u i c k C o m p a r i s o n - R e s i d e n t i a l As s e s s e d Va l u e o f Pr o p e r t y An n u a l S e w e r B i l l Ch e s t e r N e w R o s s W e s t e r n S h o r e O t t e r P o i n t M i l l C o v e C h e ster Basin St a t u s Q u o + 2 0 % S t a t u s Qu o +2 0 % S t a t u s Qu o +2 0 % S t a t u s Q u o + 2 0 % S t a t u s Quo+20%Status Quo+20% $1 0 0 , 0 0 0 $ 1 8 0 . 0 0 $ 2 1 6 . 0 0 $ 1 , 1 0 0 . 0 0 $ 1 , 3 2 0 . 0 0 $ 3 5 0 . 0 0 $ 4 2 0. 0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 2 0 0 . 0 0 $2 0 0 , 0 0 0 $ 3 6 0 . 0 0 $ 4 3 2 . 0 0 $ 1 , 1 0 0 . 0 0 $ 1 , 3 2 0 . 0 0 $ 3 5 0 . 0 0 $ 4 2 0 .0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 2 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 2 0 0 . 00 $3 0 0 , 0 0 0 $ 5 4 0 . 0 0 $ 6 4 8 . 0 0 $ 1 , 1 0 0 . 0 0 $ 1 , 3 2 0 . 0 0 $ 3 5 0 . 0 0 $ 4 2 0 .0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 1 , 5 0 0 . 0 0 $ 1 , 8 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 2 0 0 . 00 $5 0 0 , 0 0 0 $ 9 0 0 . 0 0 $ 1 , 0 8 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 1 , 3 2 0 . 0 0 $ 3 5 0 . 0 0 $ 4 20 . 0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 2 , 5 0 0 . 0 0 $ 3 , 0 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 2 0 0.00 $1 , 0 0 0 , 0 0 0 $ 1 , 8 0 0 . 0 0 $ 2 , 1 6 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 1 , 3 2 0 . 0 0 $ 3 5 0 . 00 $ 4 2 0 . 0 0 $ 5 0 0 . 0 0 $ 6 0 0 . 0 0 $ 5 , 0 0 0 . 0 0 $ 6 , 0 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1,200.00 Ex i s t i n g S y s t e m + 1 0 % , 1 5 % , 2 0 % If w e a d d 1 0 % t o t h e e x i s t i n g r a t e s t r u c t u r e w e w i l l b e $ 4 5 , 8 4 8 s h o r t o f o u r re v e n u e g o a l ; If w e a d d 1 5 % t o t h e e x i s t i n g r a t e s t r u c t u r e w e w i l l b e $ 1 0 , 5 9 6 s h o r t o f o u r re v e n u e g o a l ; If w e a d d 2 0 % t o t h e e x i s t i n g r a t e s t r u c t u r e w e w i l l e x c e e d o u r r e v e n u e go a l b y $ 2 4 , 6 7 6 Ex i s t i n g S y s t e m – 1 0 % , 1 5 % , 2 0 % Ad v a n t a g e s By i n c r e a s i n g e x i s t i n g r a t e s b y b e t w e e n 1 5 - 2 0 % , w e wi l l b e a b l e t o c o v e r a l l op e r a t i o n a l a n d c a p i t a l f r o m r e v e n u e r e q u i r e m e n t s a nd b u i l d u p a r e s e r v e o f 15 % ( $ 1 0 7 , 4 9 0 ) a n n u a l l y . Al l s e w e r u s e r s w o u l d b e i m p a c t e d b y t h e s a m e p r o p o rt i o n ; Di s a d v a n t a g e s It d o e s n o t a d d r e s s t h e v a s t d i f f e r e n c e s i n s e w e r r at e s a c r o s s t h e s i x s y s t e m s ; It i s n o t b a s e d o n a c t u a l u s a g e l e v e l s . Fl a t R a t e PR O S , C O N S A N D CO N S I D E R A T I O N S Fl a t R a t e St a f f h a v e p r e v i o u s l y p r o p o s e d a f l a t r a t e s t r u c t u r e t o C o u n c i l ; Th i s s c e n a r i o w a s a s f o l l o w s : St a f f a c k n o w l e d g e t h a t u n d e r t h i s p r o p o s a l , a d d i t i o na l w o r k i s r e q u i r e d t o b e t t e r d e f i n e t h e s m a l l a n d la r g e I C I c a t e g o r i e s . Th i s p r o p o s a l d i d n o t a c c o u n t f o r m i n i m i z i n g t h e i mp a c t t o l o w e r i n c o m e s y s t e m u s e r s a n d o n l o c a l bu s i n e s s , Se r v i c e T y p e s E s t i m a t e d F l a t R a t e Re s i d e n t i a l $ 6 3 5 . 0 0 Un s e r v i c e d $ 1 7 5 . 0 0 IC I L a r g e $ 6 , 5 0 0 . 0 0 IC I S m a l l $ 6 3 5 . 0 0 Fl a t R a t e St a f f h a v e i d e n t i f i e d a n e w p r o p o s a l f o r a f l a t s e w er r a t e b a s e d o n as s e s s m e n t l e v e l s ; Fo r t h e p u r p o s e s o f t h i s p r o p o s a l w e h a v e m a d e t h e f ol l o w i n g a s s u m p t i o n s : We d i d n o t d i f f e r e n t i a t e b e t w e e n c o m m e r c i a l , r e s i d e nt i a l a n d u n s e r v i c e d ; We h a v e u s e d a s s e s s m e n t a s a b a s i c i n d i c a t i o n o f a b il i t y t o p a y . W e f u l l y re c o g n i z e t h e r e a r e l i m i t a t i o n s w i t h t h i s a s s u m p t i o n. Fl a t R a t e – N e w P r o p o s a l As s e s s m e n t L e v e l N u m b e r o f A c c o u n t s P r o p o s e d F l a t R a t e $1 - $ 1 0 0 , 0 0 0 4 2 0 $ 3 5 0 . 0 0 $1 0 0 , 0 0 1 - $ 2 0 0 , 0 0 0 3 8 1 $ 4 5 0 . 0 0 $2 0 0 , 0 0 1 - $ 3 0 0 , 0 0 0 2 2 3 $ 5 5 0 . 0 0 $3 0 0 , 0 0 1 - $ 4 0 0 , 0 0 0 7 9 $ 7 5 0 . 0 0 $4 0 0 , 0 0 1 - $ 5 0 0 , 0 0 0 4 4 $ 1 , 0 0 0 . 0 0 $5 0 0 , 0 0 1 - $ 6 0 0 , 0 0 0 3 7 $ 1 , 5 0 0 . 0 0 $6 0 0 , 0 0 1 - $ 1 , 0 0 0 , 0 0 0 4 0 $ 2 , 5 0 0 . 0 0 $1 , 0 0 0 , 0 0 1 - $ 2 , 0 0 0 , 0 0 0 2 9 $ 3 , 0 0 0 . 0 0 >$ 2 , 0 0 0 , 0 0 0 7 $ 5 , 0 0 0 . 0 0 A Q u i c k C o m p a r i s o n - R e s i d e n t i a l As s e s s e d V a l u e o f Pr o p e r t y An n u a l S e w e r B i l l F l a t R a t e Ch e s t e r N e w R o s s W e s t e r n Sh o r e Ot t e r Po i n t Mi l l C o v e C h e s t e r Basin $1 0 0 , 0 0 0 $ 1 8 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 0 0 0.00$350.00 $2 0 0 , 0 0 0 $ 3 6 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 0 0 0 . 0 0 $ 1 , 0 00.00$450.00 $3 0 0 , 0 0 0 $ 5 4 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 1 , 5 0 0 . 0 0 $ 1 , 0 00.00$550.00 $5 0 0 , 0 0 0 $ 9 0 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 2 , 5 0 0 . 0 0 $ 1 , 0 00.00$1,000,00 $1 , 0 0 0 , 0 0 0 $ 1 , 8 0 0 . 0 0 $ 1 , 1 0 0 . 0 0 $ 3 5 0 . 0 0 $ 5 0 0 . 0 0 $ 5 , 0 0 0 . 0 0 $1,000.00$2,500.00 Fl a t R a t e - D i s c u s s i o n As w i t h a n y o f t h e m o d e l s ( w i t h t h e e x c e p t i o n o f a d di n g a s e t p e r c e n t a g e to t h e e x i s t i n g r a t e s c h e m e ) , t h e r e a r e s o m e u s e r s th a t w i l l s e e a r e d u c t i o n an d s o m e t h a t w i l l s e e a n i n c r e a s e ; We h a v e r u n m u l t i p l e s c e n a r i o s w i t h t h e f l a t r a t e a mo u n t s t o t r y a n d l e s s e n th e n e g a t i v e i m p a c t s a s m u c h a s p o s s i b l e . Fl a t R a t e - D i s c u s s i o n Ad v a n t a g e s Fl a t r a t e s h a v e b e e n d e s i g n e d w i t h a n e m p h a s i s o n m in i m i z i n g t h e i m p a c t o n bu s i n e s s e s a n d l o w i n c o m e u s e r s w h e r e p o s s i b l e ; Th e r a t e s y s t e m i s s i m p l e a n d e a s y t o a p p l y . Di s a d v a n t a g e s So m e u s e r s b e n e f i t a n d s o m e w i l l s e e i n c r e a s e d c o s t s; It i s n o t b a s e d o n a c t u a l u s a g e l e v e l s . Mo d i f i e d E D U ’ s DI S C U S S I O N ED U D i s c u s s i o n As p e r d i r e c t i o n f r o m C o u n c i l , s t a f f a t t e m p t e d t o p ro v i d e a d d i t i o n a l op t i o n s u n d e r t h e E q u i v a l e n t D w e l l i n g U n i t S y s t e m ; Wh e n a p p l y i n g t h e p r i n c i p l e o f t r y i n g t o m i n i m i z e t he o v e r a l l i m p a c t o n l o w in c o m e u s e r s a n d b u s i n e s s e s , t h e E D U o p t i o n b e c o m e s c h a l l e n g i n g a s i t i s ba s e d o n u s a g e a n d i t i s d i f f i c u l t t o t a k e o t h e r f a ct o r s i n t o c o n s i d e r a t i o n . ED U D i s c u s s i o n Th e “ E D U 2 ” O p t i o n p r e s e n t e d o n F e b r u a r y 1 8 , 2 0 1 4 e x am i n e d w h a t f i v e ot h e r r u r a l m u n i c i p a l i t i e s a r e d o i n g f o r E D U c a l c u l at i o n s a n d a t t e m p t e d t o be s t m e e t o u r l o c a l c i r c u m s t a n c e s w i t h i n t h e c o n t e x t o f w h a t s i m i l a r mu n i c i p a l i t i e s a r e d o i n g . If C o u n c i l p u r s u e s a n E D U b a s e d s y s t e m , s t a f f f e e l th a t “ E D U 2 ” i s a m o r e su i t a b l e m o d e l f o r o u r c o m m u n i t y t h a n t h e o r i g i n a l ED U O p t i o n t h a t w a s pr e s e n t e d b a s e d o n t h e S N S M R T a b l e ; Ba s e d o n o u r r e s e a r c h a n d a p p l i c a t i o n o f t h e t a b l e an d f a c t o r i n g u n i t s t o ou r l o c a l c i r c u m s t a n c e s , s t a f f f e e l t h a t “ E D U 2 ” i s a s r e f i n e d a s w e c a n g o at t h i s p o i n t a n d a r e u n a b l e t o p r o v i d e a n y o t h e r o pt i o n s t h a t m a i n t a i n a n ED U b a s e d s y s t e m a n d m i n i m i z e i m p a c t o n l o w i n c o m e an d b u s i n e s s cu s t o m e r s . Fi n a l C o n s i d e r a t i o n s Ad o p t i n g a u n i v e r s a l s e w e r r a t e i s o n l y t h e f i r s t s te p i n a l o n g t e r m p l a n n i n g pr o c e s s f o r m u n i c i p a l s e w e r s y s t e m s . I t f i l l s a n i m me d i a t e n e e d t o c o v e r AL L o p e r a t i o n a l e x p e n s e s a n d p l a n f o r c a p i t a l i m p r o ve m e n t s t h r o u g h t h e cr e a t i o n o f a u n i v e r s a l r e s e r v e . I t s e r v e s t o m i n i m iz e n o n s y s t e m u s e r s f r o m su b s i d i z i n g a n y o f t h e e x p e n s e s . F u r t h e r w o r k m u s t s ti l l b e d o n e t o : St r e a m l i n e a n d r e d u c e c u r r e n t o p e r a t i o n a l c o s t s w h e re p o s s i b l e ; Id e n t i f y o p p o r t u n i t i e s f o r a d d i t i o n a l r e v e n u e a n d d ev e l o p m e n t s u c h a s : Pl a n t r e p l a c e m e n t s a n d u p g r a d e s d o n e w i t h l a r g e r g o al s i n m i n d ; Ag g r e s s i v e l y c o n t i n u i n g t h e e x i s t i n g I & I P r o g r a m t o m a x i m i z e e x i s t i n g c o n n e c t i o n s po t e n t i a l Id e n t i f y i n g a d d i t i o n a l s e w e r o p p o r t u n i t i e s t o s e r v i ce f u t u r e e c o n o m i c g r o w t h a n d de v e l o p m e n t Fi n a l C o n s i d e r a t i o n s Co m p a r e d t o s i m i l a r j u r i s d i c t i o n s , t h e o p t i o n s b e i n g c o n s i d e r e d a r e w i t h i n an a v e r a g e r a n g e ; An y o p t i o n c h o s e n b y C o u n c i l i s f r a m e d w i t h i n t h e c on t e x t o f t h e o v e r a l l bu d g e t a n d t h e r e a r e o t h e r t o o l s , s u c h a s t h e T a x E xe m p t i o n P o l i c y , t h a t ca n s e r v e t o h e l p a d d r e s s s o m e o f t h e c o n c e r n s t h a t h a v e b e e n r a i s e d th r o u g h o u t t h i s p r o c e s s . Dear Warden and Councillors; Re: Sewer rates As a general question, how did this happen? Councillor Myra commented that these discussions should have taken place 15 or 20 years ago. Why didn't they? It seems to me that when a solution to a problem involves reducing someone’s annual rate for sewer services from $11,000 to $750, or from $39,000 to $5,000, someone was not paying attention. What assurances do we have that there are not more situations like this hidden elsewhere? That aside, I offer these comments and suggestions regarding the sewer rate proposals. After closely reviewing the various options and using the information presented regarding the proposed rates, I believe you will quickly eliminate the 20% proposal, on the basis it merely exacerbates the existing situation, which you apparently find unacceptable, by 20%. Similarly, the EDU option proposed raising some commercial rates to an unacceptable level, and for that reason I believe you will eliminate that proposal. Assuming the flat tax is the preferred method being considered at this time, I offer these comments; 1) The study material uses the term flat rate, but then you propose to vary this so-called flat rate based on assessments. A “ flat rate “ or “ flat tax “ means that everyone pays the same amount. In my opinion, it does not mean varying the amount of tax paid based on anything, assessments included. What you are proposing is a regressive tax, assuming an ability to pay based on assessment. I say “ Shame “ to this proposal. 2) The study material shows there are 1260 sewer connections, and you need $821, 850 per year to maintain the systems and provide for a reserve fund. That works out to $652.26 per connection. I believe a sewer connection is worth $652.26 to any user, residential or commercial, and it likely undervalues a commercial connection. I think a business rate should start at $652.26 and then include some form of usage based additional fees where appropriate by use of an EDU. An EDU component has apparently been dismissed as punitive for business. I favour an EDU component, and I believe the reason it was dismissed is because it was applied incorrectly for our needs. The proposal attached a rate to individual EDU’s. That drove up the cost to laundromats, schools, seniors residences, restaurants etc. But some jurisdictions just add up the EDU’s, and attach a usage factor based on the total number of EDU’s, as this example shows; 0 to 10 EDU’s .. $300 11 to 19 EDU’s $400 Etc. This fee is normally in addition to a basic fee to pay for the sewer service. A modest usage charge may be calculated on this basis. As applied to the laundromat in Chester, I believe the first EDU calculated rate was in the vicinity of $7000, based on 12 washing machines. As you see from the above, I am suggesting an alternative rate for the laundromat might be $652. + $400. Total of $1052. Adding a reasonable EDU surcharge for the increased use by businesses might enable the base rate of $652. to be reduced. 3) A rate of $652.26 may represent a significant increase over what some people have been paying, bearing in mind that every sewer system outside of Chester is in a deficit position. It appears you are proposing to provide relief from this situation by varying the rate based on assessments. I ask “ Why? “ There has never been, not will there ever be a link between assessments and ability to pay. The municipality already has in place a mechanism to provide low-income residents with assistance paying their property taxes. But this assistance requires proof of need. Not so with the sewer rate. You are automatically assuming the low assessment-low income link with the sewer. This is a mistake in my opinion. If council believes relief from the same taxes that your neighbour is paying are required, they should be based on proven need. Not a politically expedient opportunity. This proposal will reduce the rates in the six areas already in a deficit financial position and increase the rates in Chester, the only area that currently meets its financial obligations. I struggle to understand why you apparently feel this is acceptable. Regrettably, I conclude this proposal allows you to vote based on parochial considerations for your individual districts, knowing that the ratepayers in six of the seven districts will unfairly benefit, and throwing the ratepayers of Chester under the bus is of no consequence to your own districts, nor does it ensure that good governance means treating all the residents of the municipality fairly and equally. Thank You Ray Cambria 216 Central St. Chester, NS April 7, 2014 Analysis of Sewer Rate Options Staff was asked to “develop a rate system that is equitable to all users in order to provide self sustaining wastewater systems, funded by the users solely”. (February 2014) The two criteria are: the rate system must be equitable to all users & provide enough revenue in order for the wastewater plants to be self-sustaining. The staff has not only prepared, they have also critiqued, three options from which to choose. Well Done! In order for the criteria to be met, certain assumptions must be made. · Contributing to one pot in order to operate, maintain and upgrade the six sewer systems in the district is cost effective. · Five of the six systems may never break even because of the small number of connections. · Some of the revenue generated in an area with many connections must be used to offset costs in areas with few connections. As sewer users, we should be prepared to adopt a little give-and-take attitude so that: cross-district rate fairness can be established; those who can least afford the tax won't be unduly affected by it and there will be enough revenue to maintain the systems and provide for the future. We concur with the analyses prepared by staff, have taken the liberty of adding our opinion and made a few suggestions which we believe will further improve what we feel is the best option of the three - the Flat Rate option. Existing System + 10%, 15%, 20% While adding 20% to the current rates will achieve the revenue desired, it ignores the fundamental inequity of those very rates. Staff have provided the numbers: a property assessed at $100,000 would pay $216 in Chester, $420 in Western Shore, $600 in Mill Cove and Otter Point, $1200 in Chester Basin and $1320 in New Ross. Starting with a poor rate system and tacking on an additional 20% should not be an option. While self- sustaining, this plan is highly inequitable, does the most harm and should not be implemented. Flat Rate This plan shows promise. It is fair in that it respects the varied income groups within our community by using assessments as basic indicators of ability to pay. But, as staff report, they did not differentiate between commercial, residential and unserviced properties. Excluding commercial, industrial and institutional from the mix does not adhere to the concept of fairness, as many commercial and industrial and most institutional enterprises in our area are major producers of wastewater. Analysis of Sewer Rate Options While the owner of a $2 million house may have the financial wherewithal to pay $5,000 for his/her sewage treatment, what he/she contributes to the system compares, in no way, to that contributed by CAMS, or Atlantica, also paying $5,000. This serious flaw, evident in the March 2014 spreadsheet, can be addressed by using the EDU 2 option or perhaps an even further modified version for the very large users of the system, given some of these large users also contribute to our economy. Is there an EDU 2 option on the latest spreadsheet for medium users such as the Rope Loft or some buildings with apartments? The number of accounts listed totals 1260, leaving 14 unaccounted for. Are the missing 14 categorized as Institutional and/or Industrial? Changing the method of determining rates for the ICI large categories and accounting for the missing 14 connections may give some leeway allowing for an ease-in of the rate hikes between $600,000 and $600,001 ($1,000) and greater than $2 million ($2,000) Equitable: Pretty close Self-sustaining: Yes Serious Flaw: High Users of system paying Low Rates = Inequitable Modified EDUs There is not enough information on the March 20, 2014 spreadsheet (i.e. no CYC, Pharmasave) to determine the equitability of the proposal or whether it is self-sustaining. However, it seems to be a useful tool in determining flow rates in ICI categories and I feel some form of EDU should be applied to all medium and large ICI categories - but not the small ones whose usage would fall within the residential usage range. Thank you to all for your hard work! Joy Calkin Nancy Hatch