On waterworks infrastructure

Candidates answered four questions; waterworks dominated

In Wellington, the mayoral candidates were always going to be measured on their stance on waterworks. About 350 folks gathered at the community centre last Tuesday to hear their answers to four prepared questions.

Another large, full-to-capacity assembly assessed the men who would be mayor. Strangely, no questions were permitted from the floor. But for many, there was only one question—because the answer would answer many others, including: Can I afford to continue to live in the County? Will roads fall further into disrepair as every available tax dollar is spent on waterworks debt? How will the County respond to young people’s needs if its resources and debt are tied up in waterworks spending? What about emergency preparedness in the age of climate change?

Specifically, Wellington residents wanted to know whether the candidates support spending hundreds of millions of dollars to draw water from a new pipe out of Wellington and pump it via a new pipeline 20 kilometres to Picton.

Neither Ernie Margetson, Brad Nieman, nor Terry Shortt supports the plan Council rejected last month. But in their answers are some important distinctions.

Brad Nieman says that unless and until developers fund at least a third of the cost, the debt required is simply unmanageable. He cites finance department numbers suggesting debt funding this project could consume as much as 17 per cent of municipal revenue (taxes and user fees). The municipality maintains a self-imposed borrowing limit of 15 per cent.

“I’m almost positive the province won’t let you get to its prescribed limit of 25 per cent,” Nieman explained to the crowded hall of residents on Tuesday.

Devoting all the municipality’s debt capacity to waterworks means fewer dollars for roads, equipment and services, worries Nieman. Nieman worries that waterworks spending would blot out other community needs.

Terry Shortt said he would not put hundreds of millions of dollars of debt upon 5,200 waterworks consumers in Prince Edward County. He says maintaining two water plants is the only responsible way forward.

Ernie Margetson says the waterworks conversation has strayed far beyond the existing facts on the ground as presented in staff reports. He believes the next council must step back from the current path and develop a plan based on evidence and data. The reports and studies he has reviewed do not justify pressing ahead with hundreds of millions in debt spending. He believes there are more modest, prudent ways forward, with the goal of minimizing the impact on existing water ratepayers.

Margetson doesn’t see a particular urgency to pull the trigger on abandoning Wellington and Picton water plants for a regional approach. He says both Picton and Wellington still have sufficient water capacity, both committed and uncommitted, to serve the communities for at least a decade at the current rate of homebuilding and also within the much-debated projected growth rate of one per cent. He does say, however, that “do nothing” is not an option, and a long-term plan must be developed and finalized. Planning, design, building, and commissioning is a long process, but there is time to get it right.

Margetson has also reviewed the costs of maintaining existing plants and associated treatment systems. Citing specific municipal reports, he says investing $3.3 million in Wellington buys the water system about 20 to 30 years. If new capacity is needed, doubling the plant’s size is estimated to cost $17.5 million. In Picton, $10.6 million in rehabilitation and optimization will address potential water system issues for a decade. Structural repairs could bring the total to $15 million. Taken together, the municipality and residents get at least 10 years for under $20 million ($3.3 million plus $15 million) rather than forging ahead and adding $250 million in new debt.

He is also skeptical that builders can absorb the projected development charges required to fund the development portion of the regional water plan, which could compromise long-term financial viability.

He acknowledges that investing in the older Picton water plant requires thorough analysis, and that water quality is on many people’s minds, but says the risks must be assessed carefully and realistically, in partnership with the province and with its support. The municipality cannot, or should not, undertake this on its own. The impact on water rates and the long-term debt load carried by water/wastewater users is too significant to proceed without confidence and a complete understanding of the implications of each decision.

He also worries that the County’s debt picture needs to be discussed honestly and realistically. He notes that in 2023, then senior leadership applied for and received a ruling from the Ontario Land Tribunal that enables Shire Hall to exclude certain debt from its annual repayment limit. This debt covers infrastructure investments for which developers provided up-front financing, as well as a large portion of the debt used to fund the redevelopment of the longterm- care facility replacing H.J. McFarland.

“Debt is debt,” said Margetson to the crowd in Wellington. “It all has to be paid back.”