East side residents are now facing a perplexing financing problem for the new multi-million dollar water and waste water line service.
The long-awaited lines across the river and running down 7th Street are installed and operational. The project to install the lines along 1st Avenue has just started.
The town's official policy with the service, known as Policy #415, stated a year ago the connection cost for residents would be $7,000. Not quite so, said Dean Pickering, the town's new chief administrative officer.
Residents still have the option to pay $7,000 to hook up to both lines but if they don't by the day's end on Nov. 14 the price to connect will immediately jump to $15,000.
Pickering said there was a past “interpretation” mistake that was erroneously communicated to east side residents. He said the fee was originally written last year as part of Policy #415 to have residents believe the $7,000 fee was for two services – water and waste water. However, the correct amount should have been at least $7,000 for each, said Pickering.
But residents can still get both lines for $7,000 – if they pay that amount by the end of business day on Nov. 14. He said although the total price for both services will jump to $15,000 as of Nov. 15, residents, who are not being forced by any current bylaw to connect, are still in a position to take advantage of a “ridiculously” good deal.
“It's a great deal, a ridiculously great deal,” said Pickering, adding if residents put down their $7,000 deposits now there won't be any future carrying costs although residents are still responsible for hiring and paying a contractor for installation of the service on their properties. “This is huge news. You can't find a deal like that anywhere.”
Pickering said the current average costs of these services in other communities are between $20,000 and $25,000. He said last week that “few, if any” east side residents have paid the early $7,000 connection fee for the two new lines.
The town's east side water and waste water connection policy states it is subject to an annual review, which could mean future residents could be paying as much as $25,000 in a few years to connect to the two services.
The policy adds connection fees are subject to change to reflect the “current economics” of the community.
The Nov. 14 deadline date was approved by town council on Oct. 15. The approval for the issue followed a recommendation from the Oct. 9 governance meeting.
A report to council members said the cost of the East Side Project up to June 2012 is $2,758,929.42. This includes costs for land, 7th Street and 1st Avenue construction, studies, engineering, the river crossing, construction of the lift station, and the highway crossing.
The report adds that if the town receives $7,000 each from the property owners who can now hook up to the new lines, it will recoup $286,078.14 – about 10 per cent of the project's total cost. However, if it receives $15,000 for each residential property, along with $25,000 from one commercial owner, it could recoup a total of $664,078.14, or 24 per cent of the total cost of the project.
