Breslau, Ont., neighbours hit by a nearly $14,000 per-household bill for sewer and water work done on their street almost a decade ago are getting more time to pay, with the interest waived for those entering a 20-year payment plan.
Woolwich Township council met Tuesday night and heard from impacted neighbours during a lengthy discussion about the bill.
Mayor Sandy Shantz told residents she understands it has caused “worry and frustration.”
“I know it can be really stressful, and I want you to know that we hear that and we understand how upsetting this has been to families,” she said.
“We know this has been difficult. We are committed in walking through this with you. Your concerns matter, your voices matter and we will continue to do what we can to support you.”
Last week, 25 property owners received a letter from the township saying each household had to pay $13,950.19 to cover the cost of the project, which was priced at $348,754.75.
In 2014, 77 per cent of residents in the neighbourhood voted in favour of having water and sewer services extended to their homes. The township went into litigation with the construction company when the work was completed in 2016.
That litigation did not get resolved until 2024, which is why residents were being billed now, the township said.
Residents were initially given until Dec. 12 to pay in full or have the option to add it to their tax bill, paying annual instalments of $1,286.25 for the next 20 years at an interest rate of 6.7 per cent.
The township then informed residents on Nov. 14 they had until Dec. 19 to tell staff how they would be paying, and extended the time to pay it in full to the end of May 2026.
The township said at the time, and during the meeting, it should have done a better job in communicating to residents that the charge was coming.
Residents questioned council
Mark Schmidt spoke to council on behalf of his neighbours who live on Woolwich Street South — one of four streets targeted for the billing earlier this month.
He told council the time period residents were given to decide on a payment method was unreasonable. He also raised concerns over the interest rate attached to the 20-year payment plan, saying the amount they’d end up paying would double.
“That amounts to $25,725. It’s a lot of money,” he said. “Essentially almost double, and a lot of that is driven due to the excessive interest rate of 6.7 per cent that’s been offered.”
Schmidt read out loud multiple questions that the group had to council about the process that led to the bill. The questions surrounded the legitimacy of the bylaw used to levy the costs to residents and a request for council to share the breakdown of how the resident vote was taken in 2014 to have the work done.
Schmidt said the group ultimately wants council to abandon the bylaw and to extend the deadline of payment by six months.
Council discussed the issue with staff answering questions on the process that led to the levy bylaw, the interest rate that was set and why the township entered litigation with the construction company when the work was completed in December 2016.
Township can’t absorb the cost
Coun. Evan Burgess and Coun. Bonnie Bryant tabled a motion to have the township cover 100 per cent of the cost in fairness for not communicating the bill with residents over the last nine years.
Part of the motion also asked staff to draft a policy to prevent an issue like this from happening again.
“This whole process for the cost recovery, from my perspective, has been frustrating and unacceptable on so many levels,” Burgess said.
“This is my first term on council, but I have seen time and time again where mistakes are made by staff, and it’s residents who end up paying for it.”
Burgess said the money to cover the cost could come from the township’s infrastructure reserve fund.
Councillors Nathan Cadeau, Kayla Grant and Eric Schwindt raised concerns around the township absorbing the cost, saying it could mean there wouldn’t be money to fund other much-needed projects and that it could increase property taxes.
“As a township we fell short in communication and service to our residents, and we have to wear that and apologize for it, and see what we can do to help out,” Schwindt said.
“We can’t waive 100 per cent of it because if you look at our budget that we’ll be talking about this week and next week and the coming months, this township doesn’t have the spare $300,000 to spend.”
He added he would support waiving the interest rate for residents who want to enter into the 20-year-payment plan and to extend the time given to residents to pay, which was also supported by other councillors.
Burgess’s and Bryant’s motion was defeated 4-2, but councillors voted in favour of drafting a policy to prevent this issue in the future.
Interest rate waived, more time given to pay
Coun. Schwindt tabled a motion asking staff to waive the interest rate, and to extend the deadline for residents to inform staff of their payment method and the deadline to pay the bill in full.
“That’s the least we can do,” he said.
Schwindt’s motion was passed unanimously.
Breslau neighbours now have until May 1, 2026, to inform staff of their preferred payment method and up to September 2026 to pay the bill in full.
