Ma-Me-O Beach holds town hall to discuss $5.5M debt

Alberta village in debt over sewer Ma-Me-O Beach held a community hall Saturday to discuss the failed wastewater system. Jessica Robb has more.

Ma-Me-O Beach residents gathered for a community hall Saturday, to discuss the community's options as it faces millions in debt over a failed wastewater system.

The village is $5.5 million in debt after years of expensive repairs, investigation and legal costs related to an unsuccessful project replacing the community's septic tanks with a sewer system.

Despite the rising price tag, just 26 of more than 270 homes in Ma-Me-O Beach are connected to the sewer line.

Saturday, around 150 village residents gathered for a town hall to discuss what's next for the community.

“We’re trying to work for you guys and we hope the community is behind us to work at this and try to come out of this so we’re not all poor and in debt,” said Al Hilgartner, Ma-Me-O Beach deputy mayor.

The village previously tried recouping some of the costs for the failed system through arbitration with the original contractor, but it was unsuccessful. In May, the arbitrator ruled "the system was doomed to fail because of the faulty design."

Ma-Me-O Village councillors said one possible solution to the debt would be a 75 per cent increase of ratepayer's taxes for the next three decades.

“If we’re not able to get grant money to help us with our financial difficulties, I really, really, really want to consider bankruptcy because I’m not going to accept a 75 per cent increase on property tax," said one resident at the meeting.

The village council said it is in communication with the provincial government about other options or funding the village could secure to help offset the debt, and it hopes to meet with ministers in the coming weeks.

"The failed wastewater system brought us to this point. But it will not define us. It is a complex issue far from being over, but we will get through it," said Ma-Me-O Beach Mayor Christine Holmes. "Our actions moving forward will be cautious, thoughtful and with intent.”

With files from CTV News Edmonton's Jessica Robb and Karyn Mulcahy