Thorold Council Discusses $23 Million Annual Infrastructure Needs

Thorold is in a strong position regarding its asset management, but maintaining this status will require substantial financial investment. During a recent council meeting, officials revealed that the city must allocate approximately $23 million annually to sustain its existing infrastructure, prevent backlogs, and ensure long-term viability. To achieve this, the city could face an annual property tax increase of 3.3 percent over the next decade.

The update on asset management was presented by Alexa Wylde, a senior management advisor at PSD Citywide Inc. She noted that Thorold’s total replacement cost of assets is just under $1 billion, highlighting the significant responsibility the municipality has. Wylde indicated that making decisions regarding such a vast portfolio can be complex.

According to Maria Mauro, Thorold’s director of finance, the city must implement consistent tax increases to maintain its infrastructure effectively. She specified that an average annual increase of 1.2 percent for the water network, 0.8 percent for the sanitary sewer network, and 3.3 percent for all other infrastructure will be necessary over the next twelve years.

Current Asset Conditions and Long-term Planning

From a balanced replacement perspective, Wylde reported that 78 percent of Thorold’s assets are in “fair or better condition,” while the remaining assets fall into “poor or very poor condition.” This assessment is deemed acceptable, as the city should avoid unnecessary spending before the end of an asset’s lifecycle. “If you were to do absolutely everything in perfect time, the city would be spending about $23 million per year on capital infrastructure,” Wylde stated, emphasizing the need to avoid increasing the backlog of projects.

The term “backlog” refers to infrastructure projects that remain pending due to previous deferments. Wylde explained that the asset management plan selected was based on a fully funded scenario, which means that while there are trade-offs in spending, reducing financial burdens on residents could lead to a growing backlog and potential asset failures.

Council members expressed curiosity about how Thorold compares to other municipalities of similar size. Wylde assured them that Thorold is performing better than many, especially when considering small- and medium-sized municipalities. “From my experience, you are in probably the upper quartile (25th percentile). We see that small municipalities are really struggling, medium-sized ones are doing okay, and larger centers are not necessarily keeping up,” she remarked.

Councillor Henry D’Angela expressed optimism regarding the city’s prospects, stating that Thorold’s situation demonstrates the capabilities of smaller municipalities. “We understand our needs, we know what we have to do, and we put ourselves in a good position,” he said. “This shows how small municipalities can think outside the box, be responsible to the taxpayer, and that amalgamation isn’t always the best option.”

Financial Strategies and Future Considerations

During the meeting, Mayor Terry Ugulini asked Mauro for potential strategies to ease the tax burden on residents. Mauro clarified that the projected 3.3 percent tax increase does not account for grants the city receives, which have been increasing year over year. “We would love to receive more in the way of grants that would reduce the life-cycle renewal portion we have to fund from the levy,” she noted.

This ongoing discussion surrounding infrastructure funding and management reflects the city’s commitment to maintaining its assets in good condition, while balancing financial responsibilities to its residents. As Thorold prepares for the future, the council’s approach emphasizes careful planning and sustainability to ensure the city’s enduring success.