Thorold’s Asset Management Report Highlights Need for Increased Spending

The municipality of Thorold is in a strong position regarding its asset management, but maintaining this status will require substantial financial investment. During a recent council meeting, officials highlighted the necessity for approximately $23 million annually to sustain existing infrastructure, prevent backlogs, and ensure long-term viability. To achieve this financial target, council members discussed the potential for a 3.3 percent annual increase in property taxes over the next decade, along with increases in water bills.

In her presentation, Alexa Wylde, senior management advisor at PSD Citywide Inc., provided a comprehensive overview of the city’s assets. She noted that the current total replacement cost of Thorold’s asset portfolio is just under $1 billion. “That is a large portfolio of assets to be responsible for, and sometimes it can be difficult to make decisions for such a wide array of assets,” Wylde explained.

Thorold’s Director of Finance, Maria Mauro, emphasized the need for tax increases to ensure the city’s financial health in the long run. She outlined that 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 would be necessary over the next twelve years.

Current Asset Condition and Future Challenges

Wylde provided insights into the condition of the city’s assets, revealing that 78 percent are in “fair or better condition.” Despite this positive statistic, the remaining assets are categorized as being in “poor or very poor condition.” Wylde explained that this situation is reasonable, as municipalities should avoid unnecessary spending before the end of an asset’s lifespan.

“If you were to do everything perfectly on time, the city would be spending about $23 million per year on capital infrastructure. This is the amount required to prevent an increase in what we refer to as the backlog,” she stated. The backlog refers to the number of infrastructure projects that have been deferred due to insufficient funding.

Wylde further elaborated on the trade-offs associated with funding decisions. “The less money you spend, the less financial burden there is on residents. However, you are increasing the infrastructure backlog and exposing yourself to asset failures,” she noted.

Council members posed numerous questions about the report, particularly inquiring how Thorold compares to other municipalities of similar size. Wylde reassured them that Thorold is performing better than many of its peers, especially among small and medium-sized municipalities. “From my experience, you are in probably the upper quartile (25 percentile). Small municipalities are really struggling, medium-sized ones are doing okay, and larger centres are not necessarily keeping up,” Wylde remarked.

Optimism for Taxpayers and Future Funding Avenues

Councillor Henry D’Angela expressed optimism about the implications of the report for taxpayers. He remarked that Thorold’s performance demonstrates how smaller municipalities can effectively manage their resources without the need for amalgamation. “We understand our needs, we understand what we have to do, and we put ourselves in a good position,” he stated. “It shows how small municipalities can think outside of the box and be responsible to the taxpayer.”

During the meeting, Mayor Terry Ugulini inquired about potential measures to alleviate the financial burden on taxpayers. Mauro explained that the projected 3.3 percent annual increase does not account for grants the city receives, which have been increasing year after year. “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 concluded.

As Thorold prepares to navigate its asset management challenges, the city’s leaders remain focused on balancing fiscal responsibility with infrastructure needs, ensuring the long-term sustainability of the municipality for its residents.