Thorold Council Discusses $23 Million Annual Infrastructure Need

The city of Thorold faces the challenge of maintaining its infrastructure, with a significant annual expenditure of approximately $23 million identified as necessary to keep its assets in good condition. During a recent council meeting, officials presented an asset management update, highlighting the need for substantial investment to prevent backlogs and ensure long-term sustainability.

To meet the required maintenance levels, the municipality may need to implement a property tax increase of 3.3 percent annually over the next decade. This would also extend to water bills, as the city aims to uphold its standards while managing a total asset replacement cost of nearly $1 billion. Alexa Wylde, a senior management advisor at PSD Citywide Inc., explained the complexities involved in managing such a diverse portfolio.

“It can be difficult to make decisions for such a wide array of assets,” Wylde noted. She reported that 78 percent of Thorold’s assets are currently in “fair or better condition,” while the remainder is categorized as being in “poor or very poor condition.” This assessment is crucial as the city endeavors to avoid unnecessary spending before the end of an asset’s lifecycle.

Maria Mauro, Thorold’s director of finance, emphasized the importance of regular investment. “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 and assets would be required over the next 12 years,” she stated.

Wylde elaborated on the implications of maintaining current funding levels. “If you were to do absolutely everything in perfect time, the city would be spending about $23 million per year on capital infrastructure. This amount is necessary to avoid increasing what we refer to as the backlog.” The backlog represents infrastructure projects that have been deferred due to previous budget constraints.

The council expressed curiosity about how Thorold’s asset management compares to other municipalities of similar size. Wylde reassured them that Thorold is performing well, stating, “You are in probably the upper quartile (25 percentile). Small municipalities are really struggling, while medium-sized ones are doing okay, and larger centers are not necessarily keeping up.”

Councillor Henry D’Angela highlighted the positive implications of Thorold’s asset management for taxpayers. “It shows what a smaller municipality can do without being amalgamated. We understand our needs and put ourselves in a good position,” he said. D’Angela underscored the uniqueness of Thorold’s approach to local governance, suggesting that smaller municipalities can effectively meet their challenges without merging with larger entities.

Mayor Terry Ugulini requested strategies to mitigate the financial burden on residents. Mauro responded that the projected 3.3 percent annual tax increase does not account for potential grants, which are expected to rise in the future. “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 stated.

As Thorold navigates the complexities of asset maintenance and infrastructure funding, the council remains focused on balancing the needs of the community with the financial realities of maintaining a robust infrastructure system. The discussions at the recent council meeting reflect a proactive approach to ensuring the sustainability of the city’s assets while considering the impact on taxpayers.