$320M wastewater treatment plant contentious issue in regional budget
Capital budget approval deferred while councillors wait for more information
Regional councillors have put off a decision on Niagara’s 2021 capital budget, concerned about the timing of a $320million investment in a new wastewater treatment plant for south Niagara Falls.
Following a presentation by deputy treasurer Helen Chamberlain on Thursday night, councillors voted to defer supporting the total $502-million budget in principle until the next budget committee in November, hoping for more information and possible alternatives to the spending plan for the wastewater facility.
Corporate services commissioner Todd Harrison said Region staff
“strongly recommend” councillors support the proposed budget, assuring them additional information would be provided before it’s finalized in January.
But most councillors weren’t prepared to vote on the budget until that information was presented.
“I don’t believe it’s prudent to vote on an issue when you don’t have the explanations you’re looking for,” said Fort Erie Mayor Wayne Redekop.
“I don’t think I would be supportive of passing this tonight and then getting the information I’d need to explain why I’d support it.”
The wastewater treatment plant is the single-largest project among 127 items included in the 2021 capital budget, to be funded with $212 million in debentures and $108 million in anticipated upper-tier government grants.
A few other large-budget items include $11 million for a new CN Rail bridge on St. Paul Street West in St. Catharines and $7.8 million for a backup 911 call centre relocation.
The proposed wastewater treatment facility will be needed to accommodate growth in the area, expected to climb by 97,000 people by 2041, but construction isn’t to begin until 2025. Councillors wondered why the full cost of the facility was being added to next year’s budget when it won’t be built for five years.
“That’s a heck of a hit, committing $320 million to this,” said Fort Erie Coun. Tom Insinna.
Chamberlain said the funding would be needed to commit the Region to complete the project, especially with an election in 2022. Insinna suggested splitting the cost over two years.
Chamberlain compared the idea to “tearing down the house that you live in without knowing you have the money to rebuild.”
“It’s spending money without committing and understanding the full nature of the budget,” she said.
Despite including government grants in funding the treatment facility, Chamberlain said the Region has yet to receive any firm commitments from upper tier governments about existing funding programs that could be tapped to contribute to the project.
“It would be delightful to have federal and provincial participation in that,” said regional Chair Jim Bradley. “That would definitely be an advantage to us if we can access those funds.”
Chief administrative officer Ron Tripp agreed it’s a “very large project” relative to the budget, “but we are making it work within the guidance given by council.”
Lincoln Coun. Rob Foster said the need for the wastewater facility is driven by plans to build anew hospital in the area.
“This is a good, major project that we have coming on board and it’s also very interesting that the Region needs to invest $320 million so we can get the south Niagara hospital developed,” he said.
Some councillors, including West Lincoln Mayor Dave Bylsma and Thorold Mayor Terry Ugulini, argued against deferring investment in the wastewater treatment plant, concerned it could impact efforts to obtain upper-tier government funding.
“If we try to defer this, we’re putting these potential grants at risk,” Bylsma said.