MUNICIEAT

April 10, 1974,

The Honourable James &. Lorimer, the Minister of Municipal
Affairs, has introduced in the House Bill No. 83, the Sewerage Facilities
Assistance Act. The Purpose of this Bill is to grant significant financial
assistance to the municipalicies and Regional Districts to help meet the
tapidly rising costs and increasing demands for more sophisticated severage
facilities. Unlike the present Municipal Treatment Plant Assistance Act
enacted under the previous administration, which this Bill teplseces,
significant amounts of money will be granted. For example in 1973 less
than $8,000 was paid while under the new Bill it is expected that payments
will be in the order of $4,000,000,

While it is not possible at this tine to forecest the total
demand for seweraga facilities in the future, the grant formula in this

Bill will result in an increasing Provincial contribution as new facilities
are constructed. :

This Bill provides for an annual grant calculated ag 75% of
the amount by which the annual debt charges for sewer facilities exceed
the product that could be produced by an annual Property tax levy of
three mills. while the three mill formula is used to calculate the grant
the municipalities will net necessarily levy a mill rate but will continue
to raise all or part of their Sewer requirements by frontage taxes and
user charges,

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The debz to be included for the determination of the grant ;
will be the debt related to provision of Sewage treatnent and disposal
facilities and such gathering facilities as sre certified by the
Taspector of Municipalities. The intention is thar the treatment
facilities, main trunks and gathering works be included in each case
whereas the internal lateral systems of 2 subdivigion or area would
not be included. The Inspector of Municipalities ig given discretion
to determing in each individual case which facilities are included in
the githering System for purposes of calculating the grant.

Unlike the previous Bill debt charges on existing as well
a3 future debt are included for Purposes of the formula. The Ace
becomes effective as of January 1, 1974.

To ee temas ane