The decision to borrow $250,000 to allow for a future expansion of Montague’s sludge de-watering facility was not enough to put the town over its water and sewer budget.
Council passed a balanced water and sewer budget during last Monday’s regular meeting that will keep rates at a standstill, while also voting to borrow money to purchase a site for the utility’s expansion.
A request for decision from CAO Andy Daggett stated the town’s current de-watering facility at the wastewater treatment plant occupies most of the space that was previously available for expansion and future needs of the utility.
Daggett said while the town’s water and sewer commission was evaluating the situation, with a possible “almost immediate” need to expand, the parcel of land next to the facility came on the market.
“And (it) came on the market quite suddenly and unexpected,” Daggett wrote in his comments. “The water and services corporation did not want to lose the chance to acquire it and negotiated the purchase of the property.”
Council was told the seller accepted the utility’s offer, and a loan was required to finance the acquisition.
Council voted 3-0 for the town to borrow $250,000 from the provincial Credit Union, amortized over 20 years with a fixed rate of 3.5 per cent for five years.
Council had previously passed its general operating budget last month.
While delivering the utility budget during Monday’s meeting, clerk of the council Jill Walsh provided a message on behalf of Coun. Debbie Johnston.
Johnston chairs the town’s water and sewer committee but was unable to attend Monday’s meeting.
“(She) asked me to pass on that water and sewer has been going along on a fairly even keel with rates the way they are. And this budget keeps the rates the way they are,” said Walsh. “It’s a break-even budget, we feel it’s realistic.”
The budget saw a forecasted surplus of $2,928.
Coun. John MacFarlane praised the budget, noting that the utility ran deficits for a number of years.
“This was a good budget,” said MacFarlane, who also described the decision to acquire the expansion land as a “necessary purchase.”
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