Woolwich would need to hike taxes an additional 4.33 per cent in each of the next 15 years in order to make up ground on its infrastructure deficit, according to a new study of the townships roads, bridges and sewers.
The asset management plan (AMP) required by the province sees a shortfall of $54 million over the next decade, meaning Woolwich needs to raise an extra $5.4 million each year. Given the size of the tax hit, which would come above and beyond other increases, there’s no way the township can go it alone in coming up with the money, township officials say.
“Obvious, it’s not realistic,” director of finance Richard Petherick said in discussing the report at the November 18 council meeting.
Rather, the report prepared by London, Ont.-based Public Sector Digest provides a guide to the financial needs, he explained, noting the township will need contributions from the federal and provincial governments if it hopes to tackle its infrastructure deficit.
“Municipalities cannot tackle the mounting infrastructure deficit alone as the infrastructure costs are beyond the ability for municipalities to pay by itself. Municipalities own the majority of assets yet we take in the least amount of tax revenue in order to maintain and replace our assets. We need the support of both the Provincial and Federal governments in order to jointly undertake such a massive endeavor,” he says in his report to council.
The AMP is a tool for evaluating and prioritizing the township’s infrastructure needs, Petherick added, noting having plans in place should help when applying for grants from senior levels of government.
In addition to the funding requirements, the study graded the township on the state of its infrastructure and readiness to tackle those assets in poor condition.
According to the report, Woolwich performed reasonably well on the ‘condition versus performance’ dimension for all of the asset classes addressed. The municipality received a ‘B’ in the road, unpaved road, water, and sanitary sewer and storm sewer assets. Its lowest rating of ‘D+’ was assigned in the bridges and culverts network. Although this rating indicates that 65 per cent of the bridges and culverts network is in fair to excellent condition, the 35 per cent of the network that is in poor to critical condition (based on assessed condition data).
Woolwich’s performance on the ‘funding versus need’ dimension varied significantly across the asset classes. Unpaved roads, water sanitary sewer, and storm sewer networks received an ‘A’ rating however the municipality received an ‘F’ for paved roads and bridges and culverts categories.
Overall, the total infrastructure replacement cost has been estimated at $51,245 per household.
Looking at the dollars involved, chief administrative officer David Brenneman said much of the shortfall will require senior government support.
Next Article
Joy Finney lauded for health promotion work
