Interest, legal fees add up to $360,000
Reserves tapped; water and sewer rates unaffected, town officials say
By Tim Ruhnke, Journal Editor
PRESCOTT – The municipality will not appeal the Prescott Finishing ruling, it was
announced on Monday night.
Town officials came to that conclusion during a closed-door session held prior
to the regular council meeting. A judge ruled in favour of the company and
ordered the town to repay more than $470,000 that had been collected because of
a water billing error that continued for several years until 2005. The
municipality was also ordered to pay interest on that amount as well as cover
Prescott Finishing’s legal costs. When the town’s legal fees associated with the case are added, the total exceeds $800,000.
The municipality has until today to file an appeal. Mayor Suzanne Dodge noted
Monday’s in-camera discussion was good. Dodge added the decision not to appeal the
ruling was unanimous, although some her council colleagues were quick to point
out there was no formal motion put to council members at the in-camera session
on Monday.
Acting CAO Laurie Kirkby reported that council made the decision to accept the
judgement. Legal advice received by the town indicated the judge did not appear
to have made any errors of law; an overriding error on the judge would have had
to be shown in order to succeed with an appeal, Kirkby noted.
In accepting the billing error of more than $476,000, the town must also pay
interest of 4.5 per cent imposed by the court.
Kirkby, who is the town’s treasurer, said council had already set aside $300,000 in reserves to be
applied to the Prescott Finishing case. Other town reserve funds will be used
to cover the remaining money owed to the company. Kirkby said the municipality
still has healthy reserves even after the Prescott Finishing liability is
addressed.
The interest charge plus legal fees will total in the range of $360,000, Kirkby
told the Journal.
The ruling will not impact water and sewer rates or taxes, town officials noted.
The mayor said council is happy ratepayers will not have to pay any of the
Prescott Finishing bill. However, in response to a question posed by the
Journal at the end of the council meeting, Dodge indicated it might have been
more appropriate to have used past tense because, in effect, ratepayers have
already covered the bill for the error and subsequent court ruling.
The mayor also noted steps would be taken to ensure something like this will
never happen again. The water meter in question was installed by the former PUC
in the late 1990s; the PUC became part of Rideau St. Lawrence Distribution
(RSL) following the deregulation of the electricity sector in Ontario nearly a
decade ago. RSL continues to handle water/sewer billing on behalf of the town.
Prescott is the largest shareholder in RSL.
The mayor asked for the Prescott Finishing case to be added to the agenda of a
town finance meeting early last week. Some councillors were reluctant to
discuss the matter in open session, and one councillor was absent. As a result,
they agreed to defer the discussion to an in-camera session the following
Monday.
This Week
Chamber at 12
PRESCOTT – Directors of the Prescott and District Chamber of Commerce are reminded to
attend this month’s lunch meeting at the Red George Public House today (Wednesday) at noon.
Chamber members and guests are also welcome to attend.
Last mill concert set for Thursday
SPENCERVILLE – The final Music at the Mill event of the season will be held this Thursday
night.
Shady Blue’s charismatic mountain music and bluegrass will fill the historic Spencerville
Mill beginning at 7:30 pm. Bring a lawn chair and enjoy the finale of the 2010
concert series.
Tickets can be purchased at the door.
Sunday concert series continues
PRESCOTT – The country music sound of the Marlboreens can be heard at the Kinsmen
Amphitheatre on Sunday night.
This will be the fourth concert of the 2010 summer season; the show starts at 7
pm. If the weather is bad, the concert will be held at the Leo Boivin Community
Centre.
Kids enjoy full day at the fort
PRESCOTT – Participants in next Tuesday’s Fort Kids program will get a taste of the daily routine in the 1840s.
Fort Wellington’s weekly adventures for children between the ages of seven and 12 combine
history fun. The daily life theme next week includes period costume, snacks and
activities.
Each Tuesday session runs from 10:30 am to 3:30 pm. There is a registration fee
for each weekly adventure day. Call the fort at 613-925-4746 or go to the
visitor centre for more information.
er to succeed with an appeal, Kirkby noted.
In accepting the billing error of more than $476,000, the town must also pay
interest of 4.5 per cent imposed by the court.
No summer holiday for the food bank
By Tim Ruhnke, Journal Editor
PRESCOTT – A seasonal slowdown in donations is once again affecting Food For All Food Bank’s ability to serve its clients.
Demand for food bank services does not decrease during warm-weather months, but
the non-profit organization usually receives fewer contributions at this time
of year. “Summer is a very difficult time for us,” said Food For All Executive Director Bonnie Pidgeon Gommert. “The shelves are getting depleted.”
The not-for-profit food bank assists hundreds of residents of Edwardsburgh/
Cardinal, Prescott and Augusta each month. In addition to distributing
non-perishable food items, Food For All also welcomes donations of fresh
produce from local gardens that can be given to individuals and families in
need.
Food For All’s main office and food depot on Henry Street West across from the Prescott
branch of the Royal Canadian Legion is open Tuesdays, and Thursdays from 10 am
to 2 pm and on Wednesdays from 10 to 2 and 5 to 7.
The Cardinal location in the public library building at County Road 2 and Dishaw
Street is open Mondays from noon to 4 pm; extended hours from 5 to 7 are
offered on the first Monday of each month. The office is closed on holiday
Mondays.
Opening the food bank for an extra couple of hours late in the afternoon has
been very successful, according to Pidgeon Gommert. The move was aimed at
making Food For All more accessible to low-income earners who are at work
earlier in the day.
Spencerville United Church is the food bank’s other location; it is open on the last Tuesday of the month.
Special arrangements can be made to arrange for after-hour food bank donation
pick-ups; Food For All is a registered charity. Pidgeon Gommert reiterated her
appreciation to the South Grenville community for its continuing support of the
food bank.
For more information on Food For All services or how to pitch in, call
613-925-2444.