Village Seeks Elector Approval for Borrowing
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The Village of Cumberland is seeking approval from electors to borrow additional funds necessary to complete critical upgrades to the community’s wastewater infrastructure.
The Wastewater Upgrades Project – required to meet provincial treatment standards and avoid future fines – has been underway since 2021. Recently, it’s been hit by a series of factors impacting the budget, including increased materials costs, unexpected site conditions, and partial re-design to address climate resiliency. As a result, the cost of Phase 1 for the project has increased to an estimated $16.7 million, from the previously-approved $14.5 million.
The village is seeking to borrow $2.5 million to cover the increased cost, and include a buffer in case of further increases. Elector approval is required to borrow these funds. To seek that support, the Village is holding an alternate approval process (AAP) – previously known as a counter-petition.
In the interim – given the critical nature of the upgrades – Village Council approved $1.52 million in additional funds for the project to be temporarily drawn from reserves. Our reserves are a vital piece of our financial stability, so in the longer term, it’s preferred that the funds be borrowed to cover the full increase in cost, and provide a buffer.
“Our wastewater system requires updating or the Village could face significant fines in the future – we really don’t have an option here,” said Mayor Vickey Brown. “We’re asking residents to allow us to borrow these funds instead of depleting our savings. This way, the Village is still able to respond to other important needs in the community.”
The proposed $2.5 million loan would result in an increase of $113/year to the proposed wastewater parcel tax that will start in 2026. This is in addition to the borrowing previously approved in 2018 for an estimated parcel tax of $199/year.
Opposition to borrowing can be registered by electors by completing an AAP form.
- Forms will be available at the Village office and online May 1, 2024 and must be submitted in hard copy to the Village office by 4 p.m., June 11, 2024.
- If 10 per cent of electors (348) submit a form, the Village will not be able to proceed with the borrowing unless approved via voting (referendum).
For more information: cumberland.ca/wastewaterupgrades
Wastewater Upgrades