Province changing rules for water/wastewater delivery, Centre Wellington wants seat at table

ELORA – The province is considering making some municipalities, and perhaps all municipalities, take water and wastewater responsibilities from the municipality to form water/wastewater public corporations instead.

Centre Wellington CAO Dan Wilson told council on July 13 that for better or worse, the township would rather be at the table developing the legislation than be told how the corporations will operate down the road.

He sought permission from council to confirm potential interest in implementing a Water and Wastewater Public Corporation in its response to the province.

“The model is not framed as a voluntary tool for municipalities,” Wilson stated in his report, adding the province has already given authority to the minister to require “prescribed” municipalities to deliver water and wastewater services this new way. 

“That authority is significant because it creates a pathway for province-directed restructuring of municipal water and wastewater services,” Wilson continued.

Not a lot more is known about these public entities except they must be publicly owned and not private, and that successor rights, employment rights and pay equity obligations will transfer to the new corporations.

The big concern, Wilson said, is whether associated debt will carry over as well, or if municipalities, and therefore taxpayers, must shoulder that debt.

“This distinction could have implications for long-term financial planning, rate-supported capital programs, asset management and debt capacity. 

“The separation of operations from debt may limit the financial flexibility that might otherwise be expected from corporatization,” Wilson wrote.

The framework also has implications for municipal autonomy, Wilson wrote. 

“The province’s ability to require participation and prescribe timelines means that the township may not have full control over whether or when the model applies in the future.”

In this way the water/wastewater public corporation is different from the Economic Development and Tourism Municipal Service Corporation model council recently approved and that the township is in the midst of developing.

And so, even though there’s a sense of unease at the prospect, the township’s submission to the province is generally in support of the move.

“From staff’s perspective, it is preferable to be helping form legislation in this area, rather than be forced to implement a model with no input,” Wilson wrote in his report to council.

In its response to the provincial expression of interest, the Centre Wellington submission states, “It is important for the province to consider input from small-medium sized municipalities outside of the Greater Toronto Area, if future regulations are to impact these municipalities.”

“I don’t see the win for us,” councillor Barb Evoy remarked as council approved staff’s response to the province.