Thursday, January 13, 2011

more roadwork: more tax increases

City wants more roadwork

City council wants to put more money towards updating Hamilton’s battered roads — and councillors are open to reallocating money from other departments to help pay for it.
Road and traffic infrastructure was top of mind for councillors yesterday as they discussed the city’s capital budget.
Staff are recommending a yearly hike of 1.5 per cent for three years and 1 per cent for another seven years to help cover the costs of updating infrastructure. That would add $42 to the tax bill of the average home in Hamilton in 2011 and $9.75 million to the total budget.
Councillors were on board with dedicating extra money to infrastructure, but weren’t prepared to add the 1.5 per cent on top of increases to the city’s operating budget — currently sitting at 3.6 per cent, not including any wage hikes for staff.
“I’m prepared to spend this money, but I’m also prepared to eliminate other expenditures,” said Councillor Sam Merulla.
Council voted yesterday to ask staff for a report detailing “options and alternatives to free up funds” to put towards improving the city’s infrastructure. Councillors will debate that plan on Jan. 21.
Rob Rossini, the city’s general manager of finance, told councillors that his department has already allocated $2.7 million out of the waste management budget to put towards road repair. If council votes for the 1.5 per cent infrastructure surcharge, that revenue will be over and above the $2.7 million from waste management.
The city’s roads are measured on a scale, called the overall condition index, from 1 to 100 — 100 being a perfect road and 0 being a road at the absolute end of its lifespan. The city’s average is 55.8, which is estimated to fall to 46.9 over 10 years. It would cost $640 million over the next decade to maintain the status quo and avoid that decline.
“We’re in a slide. We’re getting to a point where rehabilitation won’t be effective,” said Gerry Davis, the city’s general manager of public works. “Spending a dollar today on the rehabilitation … saves us spending the equivalent of $4 for a full reconstruction.”
Last year’s budget included a 0.5 per cent increase for capital projects, while 2009 contributed no hike to infrastructure.
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