City receives surprise $638,000 bill tied to 50-year-old housing agreement
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Hey there, time traveller!
This article was published 26/11/2015 (3947 days ago), so information in it may no longer be current.
City councillors got a surprise $638,000 bill for the city’s share of costs tied to a decades-old provincial agreement.
Members of the finance committee were told the unexpected bill was the result of an agreement the city signed with the province in 1962 for four subsidized housing projects.
“That agreement was signed the year I was born,” finance chairman Coun. Marty Morantz said. “I want legal to analyze these agreements to see what our obligations really are.”
City officials said the five-decade old agreement requires the city to cover a portion (12.5 per cent) of the ongoing costs of four provincially run subsidized housing projects.
The city had budgeted $180,000 this year for its share, but the province recently gave city hall an invoice for close to $820,000.
Officials said there was no explanation for the cost overruns.
Morantz said he wants to find out if the agreement is still binding and whether the city has the opportunity to get out of the arrangement.
The councillors also had to approve a $220,000 bill to cover a shortfall with the city’s golf services agency.
Officials said the agency is involved in a dispute with a private operator of a facility at a city-owned golf course.
The dispute has gone to arbitration. Officials said it could recoup the expense if the city wins the case.
aldo.santin@freepress.mb.ca
