THUNDER BAY – A report presented to council shows the city's core assets are facing an annual infrastructure deficit of $13 million - with an overall deficit of more than $30 million.
On Tuesday night administration laid out the city's asset management plan, which looks at core infrastructure such as roads, bridges and culverts.
Budget chair Mark Bentz said the municipality is making progress as it tries to close the gap, but noted the province needs to do its share.
“We are increasing the funds into that file at five per cent per year and rolling retired debt into it as well. We are doing what we can to increase the annual spend on capital projects for maintenance and replacement purposes. Could we do more? Yes, but it would cost money,” Bentz said.
City treasurer Keri Greaves noted the $13 million figure was presented to council as part of phase 1 of the plan.
“The reality is we don't know what the actual number is. It's probably a fairly good representation, but until we actually complete the work, we won't know for sure.
“The work is being undertaken by a committee of administrative individuals who spend countless hours documenting what assets we have, tracking that and trying to determine estimates for use of life. It's a very complex process," Greaves said.
City manager Norm Gale maintained there are positives to have debt when it comes to buildings, infrastructure and capital projects.
"The use of debt to finance those things enables us to spread the cost over years and generations. This way the actual users of those facilities that are benefiting are the ones that pay for it," he said.
Phase 2 of the asset management plan is set to go until July and then phase 3, which will include developing a financial strategy to achieve proposed levels of service in July 2025, will start.
The public has a chance to weigh in during an informal question and answer session in the Embassy Suite at the Victoria Inn this afternoon.
Council will review the budget on Jan. 30, Feb. 1, Feb. 5 and Feb. 7.
The budget is scheduled to be ratified on Monday, Feb. 12.
