Lakeshore approves $69M for sewage treatment, debt financing to keep rates down
Lakeshore approves $69M for sewage treatment, debt financing

The Municipality of Lakeshore has approved $69 million to replace sewage lagoons in Stoney Point and $7 million for the Belle River sanitary sewer expansion, bringing total planned spending on sewage and water infrastructure to nearly $175 million. This investment will replace aging infrastructure dating back to 1978 and support approximately 14,000 new homes along with associated commercial development.

Infrastructure Upgrades and Development

Much of the new development will be concentrated along the County 22 corridor in the Wallace Woods area. The projects address major capacity issues that have plagued Lakeshore, particularly in the eastern communities where sewage handling has been a significant challenge.

Interim CAO Justin Rousseau noted that Lakeshore experienced rapid growth, with the 2021 census recording a population of 40,410 — a 10% increase from 2016, making it the fastest-growing municipality in Essex County. The current population is estimated at about 43,000.

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"That type of growth really puts a large strain on infrastructure," Rousseau said. "You're kind of playing catch-up because you saw accelerated growth all at once. It's put a strain on infrastructure."

Development Freeze Lifted

The community had faced a "bit of a development freeze," Rousseau explained, as most sewer capacity had been allocated. "This will now allow us to reopen our sewer capacity and build homes again."

Of the $174.5 million in planned spending, approximately $100 million is funded through federal and provincial grants and existing reserves, while the municipality will take on $74.5 million in long-term debt. This debt level should not strain Lakeshore's borrowing capacity, according to a report by Rousseau and interim CFO Patricia Leblanc Jaeger.

Debt Management and Rate Impact

The province limits municipal debt to 25% of revenues, but Lakeshore's policy caps it at 15%. The report projects the municipality will reach 15% in 2028, with debt remaining relatively stable until 2031 when a slight increase is expected. The debt is spread over 20 years to reduce pressure on water rates.

Improvements to water and wastewater systems are funded through water rates, separate from property taxes. Only residents connected to the municipal water system will pay for these upgrades; those on septic systems are exempt.

Water rate increases will be lower than initially projected. Original forecasts anticipated annual increases of 4% for water and 9% for wastewater, but with $70 million in grant funding, projected increases are now 2.5% until 2028 and 2% thereafter.

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