City council will look into a request by two businesses just outside of the city boundaries to establish a commercial water and sewer rate that would encourage new businesses to set up in the area.
Council heard a submission on Monday evening by John Georgacacos of the Side Track Cafe and Don Kraft of the Weyburn Co-op Association regarding how Cross Roads and Side Track are being billed for water and sewer service.
The rate being charged for the two businesses, located at the junction of Highways 39 and 13 just outside the city boundaries, had been in the past at the city rate plus a 10 per cent premium, but the premium charge was increased in 1993 to 75 per cent over the city rate for all businesses outside the city limits. For the Co-op this increase was phased in over a three-year period.
The Weyburn Utility Board also obtained an agreement with the Weyburn Co-op, where the Co-op allowed the use of their water line to bring city water to adjacent rural residents at no addition cost to the residents.
"One of things we'd like city council to consider is not special treatment, but implementation of a commercial rate for businesses who are not within the city of Weyburn," said Mr. Kraft, adding of the agreement with the utility board, "The Co-op donated the use of the line at that time because we felt it was a good corporate move to provide water services to area residents."
When the two businesses were doing renovations and upgrades in recent years, they did not expect to see this kind of an increase, said Mr. Kraft. They are also concerned with future economic development, with the possibility that some businesses, looking to move into the area as the oilfield continues to develop, may want to locate outside the city, but with employees living in the city.
The Co-op also questioned the surcharge on the sewer, claiming that only "grey water" is sent back to the city as solids are retained at the site.
City engineer Bob Kinash said this does not qualify as grey water, as most of the bacteria found in sewage is still in the water; the definition of grey water as used by most utilities is bath water or water contaminated only by soaps.
Ald. Ray Hamm said he had some sympathy to what the businesses were saying, but added the council had no jurisdiction over what the Weyburn Utility Board has determined in the water and sewer rates.
He was surprised at the "good deal" the utility board got from the Co-op on the use of their water line, and suggested if there was any break to come from that it should come from the utility board.
As for the rates, Ald. Hamm said they are set for city residents who are also paying for the infrastructure, while those outside the city have not paid taxes on the infrastructure.
This did not satisfy Mr. Georgacacos, who wanted to know why the premium charge went from 10 per cent to 75 per cent.
"I pay close to $2 (a cubic metre) for water and a household out there pays $1.15," he added.
Ald. Bill Rudachyk said the council will have to sit down with the RM of Weyburn, as this issue would fall within their municipal boundaries.
"They've said in the past they didn't want to subsidize the rates, but maybe that's the way to go now. I think the time has come where we must have a discussion with them on this, and do something not just for these people, but for businesses in the future," he said.
Mayor Don Schlosser agreed, saying the city will take up their concerns with the RM and decide where to take the issue from there, and whether the businessmen should be invited to speak before them as well.
Council is considering some options on which way to go on paying for repairs to water supply pipes to homes and businesses.
Currently, property owners pay the full cost of repairs, even if the leak is on city-owned property on the way in from the main to the house.
City resident Bob George objected to this policy, bringing an invoice for over $2200 before council, saying he got a rude awakening when given a bill for repairs made under the street in front of his home.
He was told this has been a policy set in the city's water and sewer bylaw since the utility was formed.
"I'm opposed to the policy being the way it is. That affects each and every home-owner in the city, many of whom would find it a real hardship to pay $2200, with terms of 30 days to pay it," said Mr. George.
He said to the new council that he has been told by city employees this has been a problem in the city for many years, but previous administrations were unwilling to do anything about it, and added, "I'm asking that you people take that step."
Ald. Mike Pickering said this issue had been discussed at a recent council retreat, and they had considered different options such as putting a surcharge onto the water bills to offset the costs to the city.
City engineer Kinash noted that Estevan has added a surcharge to residents' water bills, and pay the full costs of water line repairs if they occur from the street up to the house. Other centres, like Yorkton, are like Weyburn and charge the full cost to the home-owner.
Ald. Marlene Nedelcov appealed to city residents to consider whether they would agree to a surchage of $6 or $7 onto their water bills to offset the charges of doing water line repairs, and to let councillors know of their views before any decision is made.
A bylaw was passed by council which begins to phase out the business tax assessment over the next three years, with a further bylaw to come in January which will set the mill rate factors that will reduce the tax and increase the residential levy.
The bylaw passed on Monday set the percentages of business tax based on the fair value of land and improvements for the years 1997, 1998 and 1999. Starting in the year 2000, businesses will not be assessed a business tax. The percentage rate which will be used in calculating the business assessment for 1997 will be 44 per cent; for 1998, it will be 30 per cent; and for 1999, the rate will 15 per cent.
The move will not reduce taxes as such from businesses, as city treasurer/comptroller Stan Runne explained the taxes will be shifted onto real property. The residential tax levy will be increased by one per cent per year, while the balance of the business tax levy will be transferred to the commercial/industrial levy.
By the end of the three years, the residential levy will go up by 3.09 per cent, and the commercial levy will increase by 19.03 per cent, based on 1997 values. If the shift was put onto commercial property only, the increase would be 26.03 per cent.
Council and administration met with the city's school boards on Nov. 26 to discuss this proposal, and the city plans to meet with representatives of the Weyburn Chamber of Commerce on Tuesday, Dec. 16 to go over the strategy.
A notice of motion will be presented at the Dec. 22 council meeting, with the resolution to be introduced at the Jan. 12, 1998 meeting to set the mill rate factors.
City hall is inviting any questions or comments from individuals to be made to the finance department or the city treasurer.
Figures for tax collections by the city are on par with the past couple of years, while numbers for lot sales and building permits are showing a healthy growth in the city in the past year.
The taxes collected so far, as of the end of November, show 93.94 per cent of taxes have been paid so far, which is down one per cent from last year but up one per cent from two years ago. There is 6.06 per cent remaining to come in on this year's taxes, or about $420,486.
In tax arrears, 38.4 per cent of arrears have been collected with 61.6 per cent yet to come in, or about $237,322. This compares to 45.9 per cent of arrears collected by this time a year ago, and 40.6 per cent collected in 1995.
On the development side, there have been 25 property sales made so far this year (although no lots were sold in November), compared to 15 at this point a year ago. Building permit values are up more than double over last year's amounts, with 103 permits issued as of the end of November worth a total of $7.8 million, compared to 99 permits issued a year ago worth $3.3 million.
The number of dwelling units created has also significantly increased, with 50 dwelling units created so far this year, compared to 11 by this point in 1996. Of the 50 units, 25 are single family dwellings, and 25 are multiple family dwellings.
In his report to council, economic development coordinator Nester Budney said with construction begun on a 21-unit apartment building, the number of dwelling units is at 71 so far this year, a reversal of population dropoff that began in the mid to late 1980s.
Tenders submitted to the city for city solicitor and city auditor both saw the higher-costing tenders being accepted by city council.
For city auditor, council agreed by a 5-2 vote to go with the services of Court & Laidlaw, which had a proposal totalling $11,900, over the proposal by Hillstead, Melanson for the amount of $11,350.
For the position of city solicitor, council has chosen to go with a different law firm, turning down the lower-priced services of their current solicitor Fabian, Holliday & Company to go with Nimegeers, Schuck, Wormsbecker & Bobbitt.
The hourly rate for Fabian, Holliday was $120, while Nimegeers,
Schuck will charge $140 an hour. Fabian also did not charge for
support staff, while Nimegeers, Schuck will charge between $34-85
per hour for use of support staff. There are differences in the
retainer fee as well, with Fabian, Holliday charging $1, and Nimegeers,
Schuck charging $300. Council approved the change in solicitors
unanimously.
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