Municipal Service Corporation

The Township of Mapleton is proposing the establishment of a Municipal Services Corporation to manage the Township’s water and wastewater services.

The Township will now be opening a public consultation period, allowing the public to provide questions and comments on the Township’s proposed Municipal Services Corporation. Questions and comments can be directed to the email provided on this page. Additional information regarding this MSC can be found below, and in the attached Presentations and Reports. This public consultation period will be open until February 28, 2025, at which point the Township will consider the public feedback in their decision to establish the proposed MSC.

Municipal Services Corporation - Processes Completed to Date

  • November 30, 2023 – Mapleton Issues Request for Proposal (RFP) for Water and Wastewater System Upgrades
  • May 14, 2024 – Mapleton signs Letter of Intent (LOI) with Graham Capital to develop a project delivery strategy for the Water and Wastewater System Upgrades
  • October 8, 2024 – Project delivery and finance solution for the Water and Wastewater Project Validation Phase Completed
  • November 12, 2024 – Mapleton enters Early Works Agreement with Graham Capital for the establishment of a Municipal Service Corporation (MSC)
  • January 28, 2025 – MSC Business Case Study Presented and Public Consultation Period Commences

Municipal Services Corporation (MSC) - FAQs


What is a Municipal Services Corporation (MSC)?

An MSC is a corporation whose shares and voting rights are owned by a municipality or by a municipality and one or more other public sector entities. The proposed MSC will be fully owned by the Township of Mapleton.
An MSC provides a system, service or thing that the municipality itself could provide. MSCs can only operate within the geographic boundaries of a municipality with the permission of the municipality in question. The proposed MSC will operate within the boundaries of the Township of Mapleton.


What are the benefits of an MSC for the Township?

Establishment of the proposed MSC will allow the Township to continue to own and manage their water and wastewater assets efficiently and effectively with long-term sustainability in mind.

  • The MSC is a self-sustaining entity where ‘utilities pay for utilities’ which is in line with how the Township currently operates its water and wastewater assets. The key difference is that liabilities and revenues associated with the water and wastewater assets will be separated from the township's other assets, providing additional transparency to the ratepayers, and clearly showing how the MSC's assets are managed and paid for. This also provides a structure that allows for the timely delivery of planned and future capital projects, allowing the required funds to be brought into the MSC to deliver these projects. 
  • The MSC is governed by a skills-based Board of Directors. This will help the MSC’s assets remain sustainable and well managed in the long-term.
  • The MSC allows for financial flexibility, allowing debt financing to be brought in to support upcoming capital investments for the water and wastewater infrastructure.

Did the Township explore other approaches to their utility requirements outside of the proposed MSC?

Yes, the Township has been exploring various delivery options for over a year. Significant due diligence has been performed by the Township, vetting various approaches. Utilizing an MSC to deliver water and wastewater services to the Township aligned the closest with the Townships goals and objectives which included:

  • Retaining public ownership and governance over the water and wastewater services,
  • Establishing a structure that would allow the water and wastewater services to be well governed and sustainable in the long-term, and
  • Establishing a structure which allowed for additional debt to be secured to deliver capital projects for the water and wastewater infrastructure.

What is the expected timeline for implementing the MSC?

After the 30-day public consultation period. The council will review all submitted feedback, address any comments as needed, then vote on whether to proceed with establishing the MSC. If approved, the MSC will be established approximately one to two months after the vote.

What control will the Township have over the MSC and its decisions?

The Township will maintain full and exclusive ownership of the corporation and hold all voting shares.
The MSC will be governed by a Board of Directors appointed by the Township, consisting of members including elected officials, key Township staff, and optional private-sector representatives or independent community members. The Township will maintain full ownership and majority representation on the Board, ensuring the MSC remains a publicly controlled entity.

What gives the Township the authority to create an MSC?

The Township can create an MSC under the provisions of the Municipal Act, section 203 and Ontario Regulation 559/06 Municipal Services Corporations.

Why is an MSC being proposed now?

As the Township’s community grows and its water and wastewater infrastructure ages, improved performance and expanded capacity from existing systems is necessary. The establishment of the MSC will provide the financial resources and technical expertise needed to successfully expand these services. Beyond the immediate capital projects required for the system, the MSC will ensure sustainability of these assets and future capital upgrades for years to come.

What services would the MSC be responsible for?

The MSC will be responsible for all water and wastewater systems currently operated by the Township. This includes operations, renewal and capital upgrades associated with the systems.

What happens if the Council does not approve the creation of the MSC?

The Township will continue to deliver the same services it has always provided. Without the MSC, the Council will face difficult decisions regarding capital priorities required for development within the community due to the municipality’s limited access to funding.

Are there other municipalities who have established MSCs?

Yes, other municipalities have created MSCs to deliver various utility services, however each MSC has its own approach to the management and delivery of its services. Some examples include: The Township of Oro-Medonte, City of Guelph, City of North Bay, Town of Welland, Town of Innisfil, and the Town of Midland.

Municipal Services Corporation – Presentation and Reports
 

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