(file photo/battlefordsNOW Staff)

By Tyler Marr

WHICH WAY TO PAY

Town council tables talk on asset management plan to weigh fund collection method

Aug 21, 2019 | 5:00 PM

How does town council want to invest in its infrastructure: a local improvement plan or by way of an infrastructure levy.

This question caused lawmakers in Battleford to table talks on an overall asset management plan as councillors were not ready to decide on which option they prefer.

The topic was brought up for discussion by administration as municipalities are required to have an asset management plan to be eligible for gas tax funding.

But there are two fundamental policy questions in front of council on how they want to raise funds to tackle the town’s $61 million infrastructure deficit and to what level of service they wish to provide.

Currently, the town finances infrastructure work via a local improvement program (LIP). This works by charging all or part of the cost to all the land that benefits from the work. Residents have seven years to pay for the project and can petition to prevent it from going ahead. This happened in Battleford in 2014-15.

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The LIP process, according to agenda documents, is extensive, as it requires several steps, including the approval of the Saskatchewan Municipal Board, before it can begin. This can be expensive and exhaustive, according to an agenda report on the topic, without achieving the desired outcome of sustainable infrastructure.

A list outlining the Town of Battleford’s infrastructure deficit. (Town of Battleford)

Alternatively, an infrastructure levy can be used. This method sees a levy applied to everyone to cover the maintenance and replacement of infrastructure. This is similar to the City of North Battleford’s UPAR program.

“Given the condition of the town’s assets across the whole of the community, and with the Asset Management Plan, using the Capital/Municipal Works or Infrastructure Levy program is more efficient and effective,” agenda documents say. “This program ensures there is sustainable and predictable funding.”

The amount of money required is predicted through a formula provided in the asset management plan. The recommended rate is two per cent for maintenance and capital of total replacement costs, which is estimated to be $2,400,000 per year, according to the report.

In speaking to lawmakers, CAO John Enns-Wind said the infrastructure levy would provide greater flexibility as it can be tweaked.

“What we are looking at doing is we are not saying here is what the levy is, we are saying what is affordable and what can be done this year and how much should be raised,” he said. “We still want to be cognitive and sensitive to our ratepayers’ needs, but at the same time, we are $61 million in the hole. We need to get some work done.”

Councillors were uncomfortable with deciding on the dollar collection method there and then and opted to bring the topic back for further debate this fall.

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tyler.marr@jpbg.ca

On Twitter: @JounroMarr