2018-2022 Financial Plan
FINANCIAL PLAN OVERVIEW
Infrastructure Sustainability Beginning in 2008, Council directed an annual tax increase of 1% to go toward infrastructure sustainability. This helps with major rehabilitation and replacement of the City’s assets which currently have a replacement value estimated in excess of $1.6 billion. For the years 2018 through 2022, the amount of the increase is 0.70%. The table below illustrates the inflows generated from general taxation and how it has been allocated. Inflows from the Core Reserve are allocated to maintaining those facilities related to the Town Centre project. If we look only at the roads component of our infrastructure, the historic annual amount spent on repaving roads is a fraction of what is required to maintain their condition. Over the past number of years we have been able to increase the annual amount dedicated to road maintenance and, as a result, we are seeing positive results in the condition of our roads, though further funding is needed to close the gap between current and recommended funding levels. This funding gap results in deferred maintenance which translates into larger future expenditures to resurface or perhaps even reconstruct roads. As we are several years into this funding model, the amounts dedicated to infrastructure are making an impact; however, we are still a very long way away from dedicating the estimated $30 million needed each year to fund the replacement of our infrastructure. Depending on the scope of projects required, one year’s allocation may not meet the funding requirements. In these cases, funding may be held over until enough has accumulated to allow the works to proceed, or borrowing may be considered. The charts highlight the impact that the property tax increases have had on the infrastructure deficit.
Infrastructure Sustainability Allocation of Funding
$ in thousands
2018
2019
2020
2021
2022
Inflows Property Taxes Prior Year
4,159
4,159
4,159
4,159
4,159
Property Tax Increase
545
1,121
1,728
2,370
3,048
Gaming Funds
550
550
550
550
550
Town Centre Incentive
584
584
584
584
584
Total Inflows
5,839
6,414
7,022
7,664
8,341
Allocations Building Infrastructure Planned
1,090
1,140
1,215
1,290
1,365
Fire Dept - Equipment Replacement
325
375
450
525
600
Highways ISR Capital Planned
3,474
3,828
4,170
4,539
4,944
Drainage Capital Planned
875
990
1,100
1,215
1,330
Major Equipment/Systems Reserve
75
81
87
94
102
Total Allocations
5,839
6,414
7,022
7,664
8,341
Estimated Ending Balance
-
-
-
-
-
We are making progress on the path to bridging our infrastructure deficit.
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