Tax hike and fines looming as St. John's water treatment plant faces deadline

Communities in the St. John's area are warning there's no way they'll be able to meet new federal requirements to further treat waste water being pumped into the harbour.

The mayors of St. John's, Paradise and Mount Pearl say there just isn't enough time meet a 2020 deadline set by the federal government to reduce the amount of waste in the water coming out of the plant on South Side Road in St. John's.

Officials estimate it will take fiveyears to plan and build the new facility, and in the meantime the municipalities will be breaking federal law, opening them up to big fines.

But the project hasn't started because various governments can't agree on who should pay what.

• Water taxes could jump by $100, warns St. John's mayor who wants time to fix infrastructure

The new rules require secondary treatment, which would remove more solid material out of the wastewater before it's pumped into the ocean. The cost of that system keeps rising it's now $255 million, up$32 million from earlier estimates.

But even as the costs rise, the amount paid for by the federal and provincial governments has stayed the same, meaning the municipalities have gone from paying 25 per cent of the cost to a third.

"I don't think it's fair that the municipality should have to pay a higher percentage of the total cost than the provincial government," said St. John's Mayor Danny Breen.

"If the federal government's got money to help with the provincial share then they certainly have the money to to help with the municipal share."

He's upset the federal government has agreed to pay more so the province pays less, a deal that wasn't offered to the city.

Meanwhile Seamus O'Regan, Liberal MP for St.John's South-Mount Pearl, reminded the mayors that the federal government is covering the largest portion of the cost.

"Our commitment is there, we're willing to take up a significant portion of the cost, and it requires all parties to come to an agreement," he said."These things do take time, they're never as quick as you hope, but we are committed to getting it done."

Big tax increase could be coming

The three communities will have to pay an extra $12 million a year for the operation and building costs of the plant.

They're warning that could lead to a big increases in taxes.

The City of St. John's will likely raise the water and sewer portion of the tax bill by about $150 from the current $603 that each household pays, said Breen.

Election issue

The reason the mayors are raising this now is because they want it to be an election issue.

"We intend to make sure that during this federal election that the residents are fully informed on what's at stake here," said Breen.

Read more from CBC Newfoundland and Labrador