The tariff of $87 per dwelling deducted by the City of Chateauguay in 2020 for the Beau-Chateau Board brings it more than its due to the board. The surplus of close to $500,000 is reserved to soften the impact of a raise of its share next year, Chateauguay Mayor Pierre-Paul Routhier indicated to Le Soleil de Châteauguay.
Translation Dan Rosenburg
At $87, Chateauguay is going to obtain $1.8 million in revenues from the 20,623 households on its territory when its share to the Beau-Chateau Board is $1.3 million for 2020.* In an interview with Le Soleil Wednesday, the Mayor explained how the City came to collect more revenues from the tariff than the contribution required by the Board.
At first, before Chateauguay adopted its own budget, the Beau-Chateau Board foresaw a contribution of $2.2 M from the cities, including $1.8 M from Chateauguay, Routhier explains. Chateauguay, he says, prepared its budget with this given and consequently set the tariff at $87 a household.
Later, he affirmed, Chateauguay noticed that there were some corrections to bring to the calculations of the Board. The latter had assumed that its loan involved the reimbursement of capital and interest while it issued some obligations of which the financial impact was different, according to the Mayor. This had the effect of lowering the shares to $1.3 M for Chateauguay, he said.
In reserve for 2021
This new amount would have represented $63 per household. It was decided to maintain the $87 tariff to constitute a reserve of $487,878, Routhier emphasized. He explained that the Board had a $27 M debt and that it had received financing of only $10 M long-term to this day. The long-term financing of the remaining $17 M will be done this year. ‘’In 2021, Chateauguay’s share is going to increase to nearly $2 M with the new financing. The tariff would surely have been $120 per household next year. With the reserve funds, it will be $95,’’ maintained the first magistrate.
He assured that the amount of nearly $500,000 will not serve for other means. With the City having the obligation to make certain placements, the sum will bring 1% or 1.5% in 2020, the Mayor noted.
*Of that amount, $293,000 is a contribution from 2018.
