Following another, final “no” vote on the financial strategy for waterworks infrastructure at Council Tuesday, September 8, the Mayor announced late Thursday he is considering exercising his veto powers under Premier Ford’s Strong Mayor legislation.

The Mayor must announce he is considering a veto within 48 hours of failed legislation. He then has 21 days to bring a replacement motion to Council.

Immediately upon the announcement, critics charged that the Mayor cannot either veto or make major spending commitments with Council in a “lame duck” situation.

A “lame duck” council has fewer than 75 percent of councillors confirmed to be returning. PEC Council entered “lame duck” status the day the official nomination period closed, when it was confirmed that just 3 of 14 councillors had been acclaimed, and will keep their jobs next term.

That means Council cannot make any spending commitments above $50,000, but it does not mean the Mayor cannot exercise his Strong Mayor veto power.

Mayor Ferguson may bring a new motion affirming the water wastewater financial strategy will continue, and that it involves no major spending commitments.

That motion could only be defeated by a 2/3 majority.

Of the failed waterworks strategy, Councillor John Hirsch noted, “There is a faction on Council which has opposed development for a long time, using a combination of misinformation and excuses. The Mayor has no choice but to respect what the province demands, which is to support new housing development and the infrastructure it requires.

“This situation is exactly why the province created Strong Mayor powers, to counter dysfunctional, recalcitrant councils that can’t get their act together to enact provincial priorities.”

No Strategy

Mr. Hirsch moved to reconsider the financial strategy at the September 8 meeting. It had been defeated 6-5 at the Committee of the Whole meeting August 25.

“Following this strategy enables us to respect the requirements of the provincial planning statement, the planning act, the municipal act and our own official plan to provide servicing for expected growth. We are required under the legislation to plan for growth and that growth is now right in front of us.

“There are those who say that we can have front-ending negotiations with the developers already, but that’s not correct. Without approving these motions, we have no numbers to talk about with our developer partners.” 

The motion to reconsider followed deputations and comments from key members of the County’s developer community, including Ruth Estwick, CEO of the Quinte Home Builders Association (QHBA), Andrew Eldebs of Cachet Homes, Chris Marchese of PEC Community Partners, and David Cleave of Port Picton Homes.

All argued the financial strategy County staff had put forward offered the framework necessary to bring developers to the table to negotiate upfront development charges. In the absence of new development, they stressed, the costs of necessary new infrastructure would fall only to existing ratepayers.

“it is impossible to build homes without a plan or framework,” said Ms. Estwick. “Individual investment decisions will still come back to council. Tonight is about having that framework.”

“If growth does not occur, the existing infrastructure costs do not disappear. What disappears are some of the additional sources that can help pay for them. Without growth, there is no new municipal assessment, no front ending, no development charge revenue and no additional water and wastewater users contributing to the overall system.”

They also pointed to tens of millions in federal and provincial funding hanging in the balance. “You’ve secured over 18.3 million in provincial funding for the regional water treatment plant,” noted Mr Eldebs. “You’ve applied for another $16 million from the federal government. If successful, you will have over $34 million for the regional WTP. Staff estimates the first phase to cost $40 million. You could be 85 percent funded.”

The financial strategy endorses a regional water treatment plant to be built in Wellington as the most cost-effective solution to the County’s waterworks needs.

 “You’ve also secured $20.6 million for the Wellington wastewater treatment plant, a significant portion of the plant costs,” he continued. “The County can’t afford to lose these grants.

“Continuing this work carries no risk, but it does protect $39 million in provincial and federal funding and supports the County’s application for another $16 million in federal funds.”

The director of financial services Arryn McNichol, the director of development services Cristaal Lanstra, and CEO Adam Goheen also argued for the importance of having a clear  financial strategy, or roadmap, in place during the infrastructure planning process.

Yet the motion failed again 8-6. Councillors Branderhorst and Maynard joined Councillors Pennell, Harrison, Braney, Engelsdorfer, Prinzen and Nieman to defeat it.

Councillor Maynard worried that the strategy to finance a regional water treatment plant in Wellington at a 1 percent growth rate did not have enough “off ramps,” and that an endorsement of planning for the new plant would become a commitment.

But Mayor Ferguson stressed the importance of committing to a stable, long term financial framework.

“Prince Edward County has been in reputational ascendance for several years, as evidenced by the funding and support we have received, particularly from the province. A new hospital. New long-term care home; the complete rehabilitation of County Road 49; water infrastructure funding; a new roundabout. That’s tens of millions of dollars of support to a small, single-tier municipality.

“We have obviously got a lot of respect at Queens Park and Parliament Hill.

“Infrastructure and investment in housing development is the number one priority of the provincial government. If we do not move forward, we are at tremendous risk of losing future funding, provincial or federal, for water and wastewater facilities.The net effect of which will be higher costs for ratepayers.

“Equally concerning, if we do not build new and more affordable kinds of housing, many, many residents will no longer be able to afford to live here. PEC will become a haven for the wealthy.”

In the absence of a veto, the vote means all long-term financial planning for new infrastructure is cancelled.