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V11Town councillors vote to retain Milton Hydro Bv IRENI G8NTLE 77,. Champion Town council has voted to retain the newly-privatized Milton Hydro. But fine-tuning may be required to ease the mis- gs'vings of some couniciliors and residents. A plan to assume a $14 million delit through recapitalizatioti of the hydre company's equi aa W. move for ratepayers, resident Pat Kelly told couocîl Monday. Rsidem stsould not bc asked to shoulder a debt ~istt forced to assume, lie argued. -0 1 XTiCO Marie Belvedere argued that ackng dt is a solid business pratice that will lower thec conspany's tax rate in the ed. And that lie aaid, benefits everyone, partiçulaaly if thelhydroe ornpany borrows frointhe Town. In that acenanio, interes payments wostld pass back into Town cofférs. "Courncil will have the extra funds te do Wliat tlly wish wflli," said Mr. Belvèdere. '"Counicil will decideliow to spend tliem." But Mr. Kelly remained unconvinced that tlie stirategy was a soumd onc for ratepayera. "I understand thaï. there are difficulties and the new Milton Hydro will have to pay taxes," said Mr. Kelly. 'But you arc asking Milton "esdents te pay a dcbt while M".to council ge.tsmny." Assuming a dcbt will lower annual profits, Con- sequently lowering taxation, said consultant Marvin Stemeroif, director of Deloitte sud Touche. "often dcbt is cflpr tha equity. A company that bas vesy lîttle debt sud lias profit is going to be taxed, lie raid. 'lThe impact on user rates is aignif- -ieantly higier if acompany is dcbt-foee." But running the hydro company as a not-for- profit or not-for-ful1- profit business would also decreas the takinga while providing a bigger bang for the ratepayer's budc. counitered Mr. Kelly. "flic other suggestion is ta lower profits by not choosing a fti-proflt,*" le said. "1tiat would aisa decrease profits sud tliusly taxes." Resident will have to swallow litge hydreohikea o maste whicli model counicil selects. reniinde.d Mayor Gord Krantz. A debt estiratcd at $39 billion left over from Ontafia Hydro mneans tliat average buis are llkely te increase by 8 ta 1l per cent - or $7 te $9 per month-_undcr any profit model. 0f that, about $23 billion is expected ta be passd down ta the ratepayer tliiougli-Bill 35, or the Energy Competilio Act Tliat bill aima to inject competition inta every aspect of the cectricity industry. That is expected te eventually lower hydaresm by cutting out excess fat. *s COUNCILLORS on pffl i i Got a hot scoop? We'd love to hear Workii'g your W - Harder to story ý>Sa ideas. CPutrPitMthn Please cal our RisBes rfnsigs vcs news- room at 15 N*isn dM1o 878-2341. (95 878-272 Like a good neighbor State Farm is there.® DnMacRue I*LJAnite Cutata 878-8.8109 IA cL!J 878-8871 485 Main St. E. Milton, Ontario L9T 1 Rl Lie godnîgbo.,Sat Frmi te . '-'