After reviewing the District of Muskoka’s 2008 rate-supported budget, it is clear the municipality is in over its head when it comes to maintaining affordable municipal services for residents.

For the third year in a row, water and sewer rates have jumped substantially, leaving urban service area homeowners using both services with a combined monthly bill of almost $160.

The costs are becoming too much for many homeowners to bear, and Muskoka must act fast to address the situation.

We couldn’t agree more with Bracebridge councillor Scott Young’s suggestion that the district hold its nose and “take its medicine.”

Young has aptly pointed out that many Muskoka district councillors have known about the municipality’s financial situation in the water and sewer department for years, but have taken no action.

Indeed, though water and sewer rates rose a combined 32 per cent over the past two years, little has been done to offset skyrocketing forecasts, including potential $200 monthly bills for residents by 2013.

Muskoka has yet to increase its development charges, while local improvement charges have risen only minimally to keep up with inflation. All the while, however, council has continued to spend millions on new water and sewer treatment plant upgrades and expansions.

We believe councillors need to take another look at the hard and fast rules of getting out of debt: spend less than you earn.

Muskoka, while blessed with a high assessment base, cannot continue to spend tens of millions of dollars for water and sewer infrastructure upgrades or local improvement projects.

As it stands now, the municipality is already almost $100 million in debt. The $3 million in interest payments on this figure is tough enough to manage, meaning councillors, in consultation with staff, must halt all spending that is not absolutely necessary to maintain adequate service levels.

While not the preferred way to manage services, maintaining the status quo is, as evidenced by the budget, what Muskoka can afford. Sadly, it is the financial reality for many rural municipalities faced with aging infrastructure, unrealistic regulatory guidelines for water and sewer operations and little financial help from the province.

Perhaps this is the dose of reality councillors must swallow.

Because something, somewhere, has to give, and residents have already done their fair share of shelling out.

JL