CBRM mayor welcomes money for wastewater projects, but says there's a catch - Action News
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Nova Scotia

CBRM mayor welcomes money for wastewater projects, but says there's a catch

Mayor Cecil Clarke says federal and provincial capital funding for wastewater infrastructure will create jobs and improve the environment, but it will also add to the operating costs in a municipality that is already struggling financially.

Mayor Cecil Clarke says new wastewater infrastructure needed, but will increase CBRM's operating costs

Mayor Cecil Clarke says federal and provincial infrastructure funding is welcome, but it comes with extra costs that Cape Breton Regional Municipality can't afford. (Tom Ayers/CBC)

The mayor of the Cape Breton Regional Municipality says federal and provincial capital funding for infrastructure is welcome, but it comes with a catch.

The federal and Nova Scotia governments announced Thursday they are contributing to $98 million in wastewater treatment projects in CBRM.

Mayor Cecil Clarke said the infrastructure works have several benefits, including job creation and environmental improvements, but they add to the operating costs in a municipality that is already struggling financially.

CBRM plans to use the money to build new sewage treatment plants in Glace Bay and Port Morien, and to upgrade five existing facilities elsewhere.

"The other aspect that we have to deal with and we're talking to the department about is the operating impact at the other end," Clarkesaid.

Nova Scotia's Department of Municipal Affairs recently paid for a viability study that found CBRM's declining population is one of the biggest challenges the municipality has to face when it comes to tax and service levels.

Keeping the lights on

Clarke said the capital works highlight the need for an improved operating funding deal from the province.

"These projects result in millions of dollars of operating costs, and knowing that we're going to have less ratepayers, that is part of the discussion that will be ongoing with the province following up on the viability study," he said.

"I'm looking at this as a positive next step in a process for us to identify how we meet our federal regulatory wastewater compliance obligations, while at the same time provide the economic stimulus within our local economy, and as wellhave the discussion about where the dollars flow in the future for us to keep the lights on literally."

Clarke said CBRM is in talks with the province on ways to help cover the increased operating costs.

Glace Bay MLA Geoff MacLellan said the Liberal government understands the impact that capital projects can have on struggling municipalities.

"It's great to do new, shiny capital projects that are necessary, but if they can't afford to run them, there's not much point in doing it," he said.

Business Minister Geoff MacLellan says the new subsidy agreement will cost the province less and there will be less administrative burden because receipts are no longer required. (Tom Ayers/CBC)

There are ways the province can help the municipality without actually providing operating funds, MacLellan said.

"I don't know if it would be in the line of direct operating support. It may be, but if it wasn't, it's alleviating other costs so they can free up some money."

Funding for the new wastewater projects was announced Thursday at the Savoy Theatre in Glace Bay.

The federal government is paying $39.1 million, the province is kicking in $32.6 million and the CBRM is covering the remaining $26.2 million in costs.

Wayne MacDonald, CBRM director of engineering and public works, says once the work gets underway, all of the municipality's high-risk infrastructure will be close to meeting strict new federal wastewater regulations. (Tom Ayers/CBC)

Wayne MacDonald, CBRM's director of engineering and public works, said in addition to new sewage treatment plants in Glace Bay and Port Morien, the money will also cover a new ultraviolet disinfection system at the Battery Point wastewater treatment plant in Sydney, and upgrades at four sewage lagoons.

He said once the work gets underway, all of the municipality's high-risk infrastructure will be close to meeting next year's deadline for complying withstrict new federal wastewater regulations.

Medium-risk infrastructure has to be upgraded by 2031 and the rest have to be done by 2041.

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