Chatham-Kent administration is recommending council adopt proposed levels of service and consolidated detailed asset management plans as the municipality works to address an estimated $2.663-billion infrastructure funding gap over the next 30 years.
A report heading to council on July 13 states the municipality owns approximately $13.33 billion in infrastructure assets but faces an average annual funding shortfall of about $266.3 million over the next decade.
The report says Chatham-Kent has adopted a 30-year planning horizon, exceeding the province’s minimum 10-year requirement, to better address long-term sustainability and infrastructure renewal needs. Staff say the municipality’s asset management system is designed to help council make informed decisions about infrastructure investment, service delivery and long-term financial obligations.
According to the report, the largest funding gaps exist in non-core assets, stormwater infrastructure, roads, wastewater, bridges and culverts, and water systems. Staff note improved asset data collection has increased confidence in the municipality’s estimates and identified additional unfunded assets, particularly through the Parks and Recreation Master Plan.
The report warns current service levels are not financially sustainable and says council will need to consider a combination of approaches, including adjusting service levels, increasing or reallocating funding, using debt, disposing of assets, relocating services for shared facilities and deferring projects. Staff say failing to address the gap could lead to deteriorating infrastructure, reduced service levels, increased maintenance costs and a greater risk of fines, legal action and lost grant opportunities.
Administration says completion of the detailed asset management plans is also essential to maintaining eligibility for provincial and federal infrastructure funding programs, including the Ontario Community Infrastructure Fund and the Canada Community Infrastructure Fund.
If approved, the proposed levels of service would be incorporated into the municipality’s 2028-2031 multi-year budget process, while staff would continue refining the plans through the development of a long-term financial plan and annual updates.
