Thorold Council Reveals $23 Million Annual Investment Needed for Assets

Thorold is in a stable position regarding its assets, but maintaining that status will necessitate a substantial financial commitment. During a recent council meeting, city officials discussed the findings of an asset management update, revealing that approximately $23 million per year is required to uphold existing infrastructure, avoid backlogs, and ensure long-term sustainability.

To sustain this level of investment, the municipality would need to implement an annual property tax increase of 3.3 percent over the next decade. Additionally, adjustments to water bills are anticipated. Alexa Wylde, a senior management advisor with PSD Citywide Inc., emphasized the magnitude of Thorold’s asset portfolio, which has a total replacement cost of nearly $1 billion. She noted the challenges involved in managing such a diverse array of assets.

Maintaining fiscal health over the long term will also require specific increases in utility rates. According to Maria Mauro, Thorold’s director of finance, the city would need to see an average annual increase of 1.2 percent for the water network and 0.8 percent for the sanitary sewer network, alongside the aforementioned tax increase for overall infrastructure.

Current Asset Conditions and Future Implications

Wylde reported that approximately 78 percent of Thorold’s assets are classified as being in “fair or better condition,” while the remaining 22 percent are deemed to be in “poor or very poor condition.” She explained that this distribution is reasonable, as municipalities should avoid unnecessary expenditures before an asset reaches the end of its life cycle.

“If everything were executed perfectly in terms of timing, the city would need to allocate about $23 million annually for capital infrastructure to prevent the accumulation of what we term as backlog,” she stated. The backlog represents the number of infrastructure projects that have been postponed due to prior deferral, which can lead to significant long-term challenges.

While the council members posed numerous questions regarding the asset management report, many were particularly interested in how Thorold compares to other municipalities of similar size. Wylde noted that Thorold is performing better than many small- and medium-sized municipalities, placing it in the upper quartile of asset management.

“From my experience, I can confidently say that I do not have another client with such a high percentage of assets in fair or better condition,” she added.

Taxpayer Concerns and Future Planning

Councillor Henry D’Angela expressed optimism about Thorold’s financial standing, commenting on the city’s ability to manage its resources effectively without resorting to amalgamation. “We understand our needs, we understand what we have to do, and we are in a good position,” he stated. “This demonstrates how smaller municipalities can adopt innovative solutions while remaining accountable to taxpayers.”

In response to inquiries about minimizing the financial impact on residents, Mayor Terry Ugulini sought insights from Mauro. She clarified that the projected 3.3 percent tax increase does not account for potential grants that the city expects to receive, which are on the rise year after year. “We would be pleased to secure additional grants that would alleviate the funding burden for lifecycle renewals from the tax levy,” Mauro explained.

As Thorold navigates its financial future, the proposed investments and tax adjustments underscore the city’s commitment to maintaining a sustainable infrastructure while balancing the needs of its residents. The discussion reflects a broader trend among municipalities to prioritize long-term asset management in the face of growing fiscal challenges.