Some apparent non-action by the previous South Bruce Peninsula council is coming back to haunt the current council in their budget sessions.
Mayor John Close was surprised to learn that the town owes 254 thousand dollars under the Ontario Small Town and Rural Development (OSTAR) infrastructure program.
He says he can’t believe that money was not set up in reserves.
Close says it shows a complete lack of foresight and bad financial planning and he hopes it doesn’t happen under his leadership.
He says they’ll likely take the money out of general reserves to pay the bill off and get out from under the interest payments.
Close says their general reserves are in good shape at almost two million dollars but once this unexpected bill is paid off, the balance is about the same as the tax arrears in the town and that’s walking a fine line.
Through OSTAR the town did some water and sewer infrastructure work and the municipality owns many vacant lots and facilities such as fire halls.
When water and sewer lines are put in the municipality is expected to pay its fair share in order to hook up to the service.
This is what has created the unexpected bill that will be paid this year.
