Chatham-Kent faces an estimated $2.663-billion infrastructure funding gap, council heard Monday, as staff warned current service levels are not financially sustainable.
Chatham-Kent Manager of Asset and Quality Management Sean Hilderley presented two reports to council outlining the municipality’s estimated $2.663-billion infrastructure funding gap and a proposed 30-year strategy to address it.
Staff said addressing the gap will require council to consider a combination of reducing service levels to what is affordable, increasing or reallocating funding, effectively using debt, advocating for more provincial and federal funding, disposing of or closing underused assets, relocating services to shared facilities, and deferring lower-priority projects.
Hilderley explained to council there is a disconnect between the expectation of maintaining or improving current service levels while keeping property tax increases to a minimum. Council approved staff’s recommendation of the proposed levels of service for the Consolidated Detailed Asset Management plan, with the funding levels of those services being referred into the 2028-2031 Multi-Year Budget process.
“We are not going to solve it in one year or two years,” said Hilderley. “What we are trying to do is get us to get us to that window inside of 30 years. So It won’t be this council, it won’t just be the next council. As long as everyone takes their appropriate bite of the pie so to speak then we can get ourselves to that spot.”
The estimated $2.663-billion gap represents the difference between the funding the municipality is expected to have available and the amount staff say is needed over to maintain, repair and replace aging infrastructure while sustaining current service levels.
Chief Financial Officer Gord Quinton’s presentation on the municipality’s long-term financial plan has been deferred to a newly scheduled council meeting on July 27.
