In 2002, 91原创 Township鈥檚 debt was the equivalent of $69 per person.
A decade later, with a vastly larger population, the per-capita debt stands at $759 per capita.
鈥淭his is a bell and it鈥檚 ringing,鈥 Councillor Kim Richter commented recently when council gave early readings to bylaws to authorize the municipality to borrow $42.5 million for major infrastructure projects that are fueling the massive increase.
The bylaws were formally adopted on Monday, June 11.
The borrowing is for:
- $33,535,000 for the , which will require a new pipeline to take water from the Greater Vancouver Regional Water District鈥檚 terminus in Willoughby to Aldergrove.
- $7,015,000 for the Township鈥檚 share of building the Barnston Island/Maple Ridge pump station;
- $2,033,000 for safety initiatives around the Mufford Crescent/64 Avenue railway overpass, currently under construction; and
- $1,020,000 to loop the existing Labonte Crescent water main from the current T-junction configuration, to improve flow and reduce bacterial growth.
While acknowledging the need for the projects, Richter was alarmed at the burden on taxpayers.
鈥淚 think it鈥檚 time for us to pull the reins in on spending,鈥 she said.
鈥淲e simply cannot go into debt to the extent we have gone into debt.鈥
Noting that the per-capita load taxpayers are carrying has increased by 176 per cent in 10 years, Richter added: 鈥淭hat is just not sustainable in the longer term. We鈥檝e got to stop spending . . . and we can鈥檛 switch spending into borrowing.鈥
The debt will be repaid from development cost charges which are one-time fees paid by developers who typically pass them on to the people who buy their buildings, and from utilities and reserves, both recharged by taxpayers.
However, administrator Mark Bakken said, the impact on taxpayers on the cost of borrowing is zero. He added that the borrowing is by the utilities and developer-funded reserves.
鈥淏ut it still has to be repaid, whether it comes from utilities or not,鈥 Richter argued.
Saying that there are no further projects anticipated that would require borrowing large sums of money, Bakken advised council that the Township 鈥渢ends to repay our debts fairly quickly.鈥
He likened the debt to a family situation in which adult children owe money, but that debt does not become the parents鈥 debt.
鈥淕rant programs from senior governments are drying up,鈥 he further advised.
Councillor Charlie Fox offered a word of caution about the high cost of providing water, noting that Metro Vancouver is faced with an $800 million bill for the Seymour/Capilano filtration system. The Seymour/Capilano watersheds supply about 70 per cent of the Lower Mainland鈥檚 drinking water.
And, he added, it is just coming to light that there may be further expenses incurred for the Coquitlam watershed.
鈥淗oly crap,鈥 was Councillor David Davis鈥 reaction to the cost of the projects. Acknowledging in particular the need to bring water to Aldergrove, Davis warned that 鈥渨e have to watch (spending) next year and the year after.鈥
Mayor Jack Froese defended the borrowing. 鈥淚t is our duty as a Township of 91原创 to ensure that we have water,鈥 he said.
鈥淲e are a fast growing municipality and there is no way around that. We have to bite the bullet and pay for it.鈥
Froese said that 10 years from now, the cost of the projects would likely be around $60 million.
鈥淲e are actually doing future generations a favour鈥 by borrowing the money for bringing regional water to Aldergrove, improving the connection at Labonte Crescent/Glover Road, and for safety initiatives at the Mufford overpass, he said.