SERVICING MORATORIUM IMPOSED ON MORRIS TURNBERRY BY NORTH HURON
The Morris-Turnberry Council understands the importance of working
with North Huron to attract economic development and that
serviced land is more marketable and appealing to investors.
Servicing agreements are currently in place between North Huron and
Morris Turnberry, for certain properties in Morris-Turnberry
to be serviced by water and sewer. The agreement has worked well and
Morris-Turnberry property owners have been paying their share of
costs, as imposed by North Huron.
A joint meeting was held on November 12th, 2013 between the North
Huron and Morris-Turnberry Council with a consultant in
attendance. This consultant felt that the current agreement is
fair and workable for both parties. The Morris-Turnberry usage
of the North Huron services is approximately 5%. The
consultant stated that over a 20 year period, a
Morris-Turnberry Equivalent Residential Unit (ERU) will pay up to
163% of a similar North Huron property.
However, North Huron Council has deemed that the 150%
servicing fee to the Morris-Turnberry properties is not
sufficient. North Huron has demanded a new
agreement with Morris-Turnberry to pay an additional yearly
‘percentage of assessment’ as a ‘payment in lieu of taxes’.
This payment would be applied to North Huron general funds and spent
as determined by the
North Huron Council.
Morris-Turnberry has not agreed to this latest demand. It is
this Council’s opinion that servicing should continue to be handled
on a user pay basis. Applying an additional annual fee/tax to
new properties that has nothing to do with servicing costs is not
fair for property owners.
Unfortunately, North Huron Council has seen fit to implement a
moratorium on future water and sewer servicing connections on
properties in neighbouring municipalities until their terms are
met.
The current agreement includes:
Initial Connection fee – of $2500 for water and $3500.00 per
residential house or equivalent for sewer; plus any
additional costs for the connection. This is to cover
100% of incurred costs.
Monthly Usage rates- 150 % rate premium compared to similar user in
North Huron.
Monthly payment into capital reserve of $10.00 for
residential and $100.00 for commercial/ industrial
users.
Morris-Turnberry agrees to pay its proportionate share of the
replacement cost of water and sanitary sewage system, based on
volume and usage, at that time.
A meeting of the two councils is in the planning stages and
Mayor Gowing states: ‘Morris-Turnberry properties are paying
their fair share of operating and capital costs’
and ‘Morris-Turnberry Council is hopeful that the moratorium will be
rescinded and that communication will remain open for
negotiation. We hope to be able to work together to
strengthen economic development in the area.’
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