No, thank you

Council declines to endorse regional water financial plan

In the end, it was too much money. Too much debt. Too much risk. And too many unanswered questions. Then there was the startling admission that previous Shire Hall staff had put their thumb on the scale in the regional water servicing master plan. (See Comment, page 6).

So, last week Council declined to endorse the financial plan to expand the County’s waterworks infrastructure, including a regional water system connecting Picton to Lake Ontario via a 20-kilometre pipeline through Wellington.

BACKSTORY
It is a significant turning point in a fiveyear battle that has been a roller coaster of drama since former Shire Hall leadership began to promote big, ambitious spending plans to rebuild waterworks infrastructure in Wellington, Bloomfield and Picton—arguing, unconvincingly, and incorrectly as it turned out, that developers would pay for it all.

It was never plausible. Never credible. The conflict peaked with a marathon council meeting at the community centre in Wellington in 2024, when 600 residents came out to protest Shire Hall’s potentially ruinous plans.

While the public outcry slowed Shire Hall’s progress, the work churned under the surface.

The following January, the Regional Water Supply Servicing Master Plan was finalized. It was based, as Council learned last week, not on its experts’ assessment of growth, but rather Shire Hall’s list of “imminent” new homebuilding. It proved to be fatally flawed.

That spring saw sweeping change at Shire Hall as many senior leaders departed. Still, the big plans rolled forward. Earlier this year, Council— most, though not all—conceded that its growth targets were wildly off base, settling on an annual population growth target of one per cent.

In June, municipal staff produced a report outlining a series of projects to meet this target. Curiously, it concluded the regional water system—a new intake into Lake Ontario, a regional water plant in Wellington, a 20-km pipeline to Picton, and a distribution plant in the town—remained its preferred solution.

The County’s finance staff, along with its consultant, Watson and Associates, spent the summer working out how to pay the $360 million bill. Several options were floated, but the County’s finance director, Arryn McNichol, was adamant that the plan turned on getting $90 million from developers in advance. Otherwise, the risk, not only to water ratepayers but to the entire County business, was far too great.

UP OR DOWN?
McNichol and his colleagues asked Council last week to endorse the plan—to enable staff to approach developers to assess their appetite to provide upfront financing.

But most council members could see that the market for new homes has changed since 2021. Six new home permits have been issued in areas served by municipal water in 2026 so far. More than three homes are being listed for sale for every home that sells. There are more than 400 homes currently for sale in Prince Edward County. Not only has growth stalled, but a new census next year may show that population has declined.

But not all council members share this view. John Hirsch in particular describes it as nonsensical.

“Base31 is selling homes starting next month,” touted the South Marysburgh councillor. “Port Picton is building homes as we speak in the Cold Creek subdivision. Growth is happening, folks. Kaitlin is waiting for us to finish the pipes.”

Which is odd—since the trunklines are nearing completion while Kaitlin is still growing milkweed and timothy on its land in Wellington.

TESTING ASSUMPTIONS
Councillor Corey Engelsdorfer noted that reaching out to developers was part of the direction given to staff in June. Was it done?

Development Services director Cristal Laanstra explained that no, it had not; her team was waiting on the numbers from the finance department.

The Wellington councillor pressed the finance director, Arryn McNichol, if he believed extracting $90 million upfront from developers was a realistic prospect.

“That is the intent,” said McNichol. “It is hard to say it is realistic. Certainly we would want that in place before construction began.”

McNichol insisted that Scenario 2B—including the regional water plan—was the advice of the County’s engineering and waterworks team, and that it was his job to figure out how to make it work.

He acknowledged the debt involved was “scary” but manageable, if developers stepped up.

Engelsdorfer argued the risks were too great.

“I don’t know how we can put this level of debt and rate increases on residents when so much of the strategy depends on future growth and funding that we don’t have,” said Coun. Engelsdorfer.“We have a responsibility to plan, but we don’t have to endorse a financial strategy that we don’t believe is affordable or risk-tested.”

Councillor Chris Braney said nothing he had heard or read would compel him to approve the plan.

“We just went through an investment in a trunkline to a development to nowhere,” said the Hillier councillor of trunklines in Wellington, meant to serve a developer that shows no sign of building.

“County residents are fatigued by the spending. We don’t have the means or capacity to do this. Furthermore, I do not want to make a decision on behalf of a future council.”

Councillor Brad Nieman said it was not credible that 150 new homes would be built in municipally serviced areas every year for the next ten years. So far in 2026, just six new home permits have been issued in urban areas with water service.

Ameliasburgh councillor Janice Maynard felt the plan presented too much uncertainty.

“This is not the time to jump off this cliff,” said Coun. Maynard. “I will not support this. It’s not fair, and it’s not logical.”

LAST-DITCH APPEAL
Mayor Steve Ferguson attempted to persuade his colleagues that endorsing this plan wasn’t binding Council’s hands, but rather enabling a conversation. He noted too that there were costs to failing to act now. Neither Mayor Ferguson, Hirsch, nor St-Jean acknowledged the role they had played in promoting the grand scheme for the past five years—for failing to promote a more pragmatic and prudent approach to waterworks infrastructure renewal.

Sensing the vote could go the wrong way, the County’s waterworks chief took to the podium to warn that “at some point we have to make a decision.”

Don Caza explained that the Picton plant has a maximum lifespan of 10 years and can accommodate about 1,000 new homes. But he said Council has a responsibility to plan for the risks posed by an older plant.

“I wanted everyone to understand that,” said Caza. “Sadly, we only have 5,200 customers to pay for our water systems. And there is a chance that growth may not give us the units we need [to fund the debt]. But the province is expecting us to have plans.”

“If something happens because we are running something old, I don’t think the province will look favourably on us,” warned Caza.

But a majority of Council had already decided that burdening the County with massive debt wasn’t a plan at all.

Councillors Engelsdorfer, Braney, Nieman, Prinzen, Maynard and Pennell voted against endorsing the plan. Mayor Ferguson, along with councillors Hirsch, St-Jean, Roberts and MacNaughton, voted in favour. Coun. Grosso, participating in the meeting via Zoom, was absent for the vote. But it made no difference; had Grosso voted in favour and his vote registered, the motion would have lost on a tie. Councillors Branderhorst and Harrison were absent.
The decision must still be ratified by a council vote on Sept. 8. Only after that will work begin on a more modest plan forward.