Sundre's financial institutions are rallying to help east side residents who are under pressure to meet a town imposed deadline to pay a $7,000 fee to connect to the new multi-million dollar water and waste water service lines.
Residents have until business day end on Nov. 14 to pay $7,000 in order to hook up to both lines. If they don't, the town will then increase the connection fee to $15,000. The cost will then likely climb as high as $20,000 and more in future years.
“I am not a typical manager. I will go outside the box,” said Monica St. Dennis, branch manager at Sundre's ATB Financial. “I want to find any way I can to assist these people.”
She said one way that might help some residents is to offer a Home Equity Line of Credit (HELOC), which is secured by the home and only requires clients to make minimum monthly payments towards interest.
“We definitely know it is not an option anymore,” said St. Dennis of the service and cost. “It has to be done. We definitely have to support these residents.”
Nicci Doyle, branch manager at the Mountain View Credit Union, said a letter of proposal to assist residential and commercial property owners was drafted and delivered last Thursday to Dean Pickering, the town's chief administrative officer, who will then present them to east side property owners. She said her bank has received “some” inquiries from property owners on whether the institution could help.
“We have never done this before,” said Doyle, of her bank's initiative to assist a group of residents facing a financial challenge due to an important municipal project. “We have to be able to help these people. There are seniors living down there. Maybe they don't realize there could be help if they are struggling. The credit union will definitely work with them to get the money they need.”
Doyle said her bank's help could include a plan that offers low interest short term loans, or a home equity line of credit.
The initiative by the financial institutions was prompted by Pickering, who personally went door to door to more than 40 east side property owners on Oct. 18. His goal was to explain the town's official policy with the service, known as Policy #415. It outlines services deposit fees to recoup the project's total $2.7 million cost from residents and businesses.
“There were a few residents concerned, as well as the church people, that they couldn't afford it. I then went to the banks,” said Pickering, who said last month residents were getting a “ridiculously great deal” as other communities are now charging citizens as much as $25,000 for the same service. “The last thing I want to see is for people to miss out on an opportunity and then regret it.
“In the long run the whole community will benefit. The land value will be up and the servicing will be put in,” he said, adding he has continued to visit the east side and its property owners twice a day. “They (property owners) are quite happy construction is going on and that progress is being made.”
Pickering said as of Nov. 1 nine residents have paid the $7,000 services deposit fee. He said most residents and businesses that have called the town office or emailed him directly said they plan on paying the $7,000.
However, not all residents are happy with the way the process for the service and the mode of payment from property owners has been implemented.
East side resident Arnie Gess said in an email he wants confirmation in writing from the town that if the $7,000 is paid before the end of business day on Nov. 14 there won't be a “surprise” future increase in fees. He also wanted assurances the $7,000 pre-paid fee can be transferred to a new property if any resident decides to sell their property.
As well, Gess wants confirmation in writing that if a property owner pays the $7,000 services deposit fee, and the lines are not yet installed or available for hookup, the money will be held in trust until the services are ready. He also wants assurances that if the town receives a grant in the future to cover the connection fees for holdout residents the $7,000 fees already paid will be returned to property owners with interest.
“We feel that it is very important that all residents affected by the 100 per cent plus increase in connection fees has an opportunity to understand the town's position on policy #415 and how the deadline date of November 14 and fee increase was determined,” said Gess in an email. “It is also important to understand the costs and grants received for this project.”
Grant Frasier, another east side resident, said he agreed with Gess's concerns. He added he would also like the town to provide cost figures for construction under Highway 27, the pump station, the digging on 7th Street, and the cost to go up 1st Avenue, and whether Mountain View County is contributing to the latter cost.
“I just want to know what is going on, instead of being dictated,” said Frasier. “Ultimately the taxpayers will be on the hook. I think there are hardships for some people.”
Residents have been told their input has been collected by the town and will be presented at the next town council meeting.
