Addington Highlands assets need $104 million over 30 years, says report

Craig Bakay | Jun 15, 2022

Addington Highlands Township needs about $104 million in cost spending over the next 30 years for tax-supported assets, Andrew Mirabella of Hemson Consulting told Council at its regular meeting June 7 in Flinton. Hemson was contracted to identify the current state of the Township’s infrastructure and make recommendations so that service levels are maintained (also considering growth related infrastructure).

An Asset Management Plan is required by Ontario Regulation 588/17 to be in place by July 1 of this year.

“The Township has applied sound asset management principles and processes to date,” he said.

According to the study, the Township has assets of $146.2 million currently, of which 67 per cent or $97,668,000 is roads, 19 per cent or $28,216,046 is buildings, 9 per cent or $13,046,616 is bridges, 4 per cent or $5,821,510 is vehicles and 1 per cent or $1,435,073 is equipment.

“Overall, assets are in ‘fair condition,’” he said.

However, while about 55 per cent or $81.1 million of the assets are rated ‘Good’ to ‘Very Good,’ about 8 per cent or $11.4 million are considered to be in ‘Fair’ condition and about 37 per cent (mostly roads and vehicle assets) are considered to be in ‘Poor’ or ‘Very Poor’ condition.

He said that while Canada Community Building Fund (the former gas tax) funding could be expected of about $77,000 per year, that would still leave about a $70 million funding gap over 30 years.

“We realize that $70 million is probably unrealistic,” he said.

Mirabella presented two strategies for potentially closing the gap — an increase in capital funding of $88,000 per year (2.69 per cent of the Township’s estimated 2022 tax levy revenue) to meet the requirement by 2041 or an increase in capital funding by $57,000 (1.74 per cent of the Township’s estimated 2022 tax levy revenue) per year to mee the requirement by 2051.

“Over such a long period, we’ll go through many Councils and governments,” said Dep. Reeve Tony Fritsch. “Infrastructure costs are going up right across the country.

“Are you getting any feedback as to government funding increases?”

“These numbers are based on 2022 dollars,” Mirabella said. “It’s difficult to predict the next 10 years.”

In a parallel report by Dep. Treasurer Natalie Tryon, which she said covered much the same ground as the Hemson report, Tryon recommended the Township “consider increasing annual capital contributions.”

“Yes,” said Fritsch. “It’s not an actual funding commitment.

“We are committing only to a plan.”

“I see the plan as more of being aware of the condition of our assets rather than the dollar value it’s going to take to upgrade them,” said Coun. David Miles.

No need to exercise, when life happens already

As Council voted to support a motion from the District Municipality of Muskoka for an exemption to the annual exercise requiring municipalities to activate their emergency response plans, Reeve Henry Hogg had this to say: “I was asked how many times we’ve actually declared an emergency.”

The latest one was May 23 in response to the wind storm and it was ended June 7.

“The Fire Department had 24 calls the first day,” said Hogg.

Other recent declared emergencies include a response to Covid-19 and this past winter’s snow storms.

Trail debacle continues

After a meeting with representatives of the Eastern Ontario Trails Alliance, Addington Highlands decided that the Verona ATV Club will have to work out a deal with the EOTA in order to use the part of the Tay-Havelock Trail that runs through Addington Highlands.

“(EOTA director) Cindy Cassidy told us they’ve been trying to work out a deal with them for four years,” said Reeve Henry Hogg. “It’s our understanding that the Verona ATV Club doesn’t do trails maintenance.

“There doesn’t appear to be an easy solution.”

CAO Clerk-Treasurer Christine Reed said that there isn’t anything preventing anyone from using the trail, providing they buy a pass from the EOTA.

“We have an agreement with the EOTA,” said Dep. Reeve Tony Fritsch. “It’s not appropriate to make an agreement with another organization.”

Hazardous waste day too pricey

In response to a request for a household hazardous waste day, Council decided it was too expensive at a perceived cost of $40,000 per day. Also, where to hold such a day presented a problem in such a spread-out municipality.

“We have arrangements with North Frontenac and Renfrew,” said Dep. Reeve Tony Fritsch. “I realize that doesn’t work for everybody but the financially responsible thing to do is just keep on as we have been doing.”