The capital asset management plan is now passed, with the expected annual tax hit to catch up on infrastructure a bit lower than originally expected.
By updating the pricing of paved roads, Adelaide Metcalfe's annual lifecycle funding gap changed from $534,000 to $332,000. The overall impact on the annual tax rate for the next nine years is now 2.6 percent, a change of 0.5 percent from the 3.1 percent originally presented on June 6.
“I’m happy to hear the good news. Half a percent of a big amount is good for everybody,” said Deputy Mayor Mary Ann Hendrikx, who was chairing the June 20 meeting.
Adelaide Metcalfe passed the plan at that meeting ahead of the provincially mandated deadline of July 1. The next elected council will have to make a similar report for all its other assets, namely operations costs like salaries, by July 1, 2024.
There is an infrastructure deficit in municipalities across Canada. Several provinces including Ontario have mandated municipalities from tiny townships to mega metropolises to set up plans that maintain what they have in roads, bridges, sewers, buildings and more, and to save for future construction and hiring.
In 2022, the Township’s annual capital funding gap of $534,000 is 12 percent of the Township’s tax levy of $4.36 million.
“We are not putting enough in reserves to meet the future capital needs of the Township,” explained treasurer Johnny Pereira at the meeting.
Asset management plans are meant to change that going forward.
Chris Gareau, Local Journalism Initiative Reporter, The Middlesex Banner