Provincial grant money will be used to pay off Parrsboro sewer system cost overrun

400 users faced a lump-sum bill of $5,000 or monthly, yearly payments

Pam Berman · CBC News · 

The Municipality of the District of Cumberland has come up with a new way to cover the cost overrun of Parrsboro’s sewer system.

The federal government ordered the community to build a sewer treatment plant and new sewer lines by 2020.

There was federal and provincial funding for the original cost, but not for the additional $4.4 million.

• Parrsboro residents given until January to decide how to pay for cost overrun on sewer project

The municipality covered half of those costs through general revenues. The other half was supposed to be paid by the 400 users through three options — a lump sum of close to $5,000, an annual fee of $345, or monthly payments.

But Cumberland Mayor Murray Scott said all of those choices were difficult for some people.

“I’ve sat at the kitchen table with some of these folks who were forced to pay this when they can barely stay in their own homes as it is,” said Scott.

After the Houston government was elected last July, the province decided to increase the financial capacity grants, formerly known as equalization payments, to municipalities.

Cumberland’s council decided to put that money into a capital reserve account and use it to make the loan payments on the sewer system.

Murray said that means Parrsboro residents will only need to pay for one year’s worth of construction costs.

He said people who paid the full amount will get a refund for all but the cost of one year.

“If you paid the annual amount for the year, you won’t pay any more, and if you are making monthly payments you’ll continue to make those payments until the end of March,” said Scott.

Scott said county council has to approve a bylaw in order to bring about the changes, but that should happen by the spring.