MINTO 鈥� Council here has formally adopted its 2025 asset management plan, which calls for annual capital tax levy increases of 3% over 20 years to ensure town infrastructure remains in good condition.
However, approval of the plan does not tie the municipality to tax increases for the next two decades.
“The 3% capital levy is recommended … but nothing is approved until after the budget process is completed,” Minto treasurer Gordon Duff stated in an email to the Advertiser.
At a June 17 meeting, Sarah Craig of London-based software company PSD Citywide presented the plan, which notes Minto鈥檚 infrastructure is worth $525.7 million.
The total was determined based on a combination of user-defined costs and historical cost inflation.
According to Craig, 76 per cent of the assets in Minto are in fair or better condition.
鈥淭he asset management plan includes core assets which are roads, bridges and culverts, storm and sanitary systems as well as the water network,鈥� she told council.
Non-core assets include vehicles, buildings, machinery and equipment, and land improvements (parks, general landscape items).
Roads and roadside assets make up the largest portion at $183 million, while the smallest is land improvements at $4.7 million.
Craig noted her analysis includes only existing assets, but it does consider 鈥渨hat the impact of growth would be in terms of maintaining your current levels of service as well as your proposed level of service.鈥�
Of the nine asset categories, six are showing an overall downward trend, reflecting current funding levels and a decline in asset condition, compared to last year.
Craig presented three scenarios to council regarding what the next 30 years can look like.
鈥淭he approach is very focused on the condition of your infrastructure,鈥� Craig said.
Scenario one would maintain an average condition rating of 72%, which is in the middle range of the “good” rating band.
Scenario two shows what the average condition rating will be at the current level of capital spending.
鈥淯nfortunately, the forecast shows that we are on track to have a poor or 35% condition rating in 20 years,鈥� states the financial report.
It notes this condition rating will fail to support the delivery of adequate services to the community.
Scenario three adopts a goal of a long-term condition rating of 60%, which is at the low end of the good condition rating band.
鈥淚t is a balanced approach that maintains infrastructure in a state of good repair at a lower financial burden than that of scenario one,鈥� the report continues.
It suggests scenario one is not affordable and scenario two will reduce the levels of service provided to residents.
That leaves scenario three, which provides the 鈥渂est balance of adequate condition ratings over the next 20 years with consistent funding levels.鈥�
听Scenario three will ultimately maintain the good condition at 61% with the funding required for a $10.3 million average annual investment, Craig said.
鈥淭o reach that average annual requirement in five years [it] would be 12.7% per year for five years,鈥� she explained.
“We are recommending … 20 years with a 3% annual tax levy increase completely allocated to capital funding.”
Councillor Geoff Gunson said he is concerned about replacement costs rising each year.
鈥淭hree per cent for 20 years might not cover a whole lot, it might not cover playground equipment,鈥� he said.
Duff replied, 鈥淯nfortunately the municipal inflation rate seem to be much higher than the CPI (Consumer Price Index), so that 3% builds.鈥�
He added, 鈥淚t partly will offset, but let鈥檚 be honest, even in 2024 dollars … the figures we have here are probably still even a bit low.”
Mayor Dave Turton said town officials 鈥渢hought we were doing a pretty good job of managing our infrastructure in Minto.
鈥淲hen you hear stuff like 61% of our infrastructure is good, I mean it鈥檚 hardly a passing grade.鈥�
Duff responded, 鈥淚 know and we had to spend this much money just to stay where we are 鈥� it is a bit sobering.
鈥淔or the last 20 years we鈥檝e been doing what we can.
“We鈥檝e been purchasing [and] our debt-to-reserve ratio, we try to keep it at a certain level and that鈥檚 not good enough.”
鈥淚t鈥檚 pretty scary,鈥� Turton said.
Duff added, 鈥淚t鈥檚 a tough balance 鈥� we don鈥檛 want huge tax increases. but yet our taxpayers are looking for a [certain] level of service.”
Craig explained she hasn鈥檛 come across a municipality that is fully funded or can pull off full funding in five years.
鈥淓verybody is struggling to find the right balance,鈥� she said.
Deputy Mayor Jean Anderson stated it is a real challenge and a 鈥減retty grim picture.鈥�
鈥淲e need our provincial and federal governments to come with their purses and open up,” said councillor Paul Zimmerman.
“We absolutely cannot do this on our own.”
After a lengthy discussion, council unanimously passed a resolution to receive the report for information and to formally adopt the 2025 asset management plan.
Actual changes to Minto’s tax levy will be approved each year in town budgets.
