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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roads sinking Hamilton into debt pothole

Hamilton councillors are taking a wait-and-see view of capital projects

Kevin Werner, News Staff

Published on Dec 11, 2009

Hamilton’s skyrocketing debt has prompted councillors to curtail its 2010 capital budget, despite the city’s deteriorating infrastructure problems that amount to over $60 million every year.

Councillors approved a 0.5 per cent increase, or $2.9 million, in capital spending for 2010, and reserved the right to bump it up to one per cent, or $5.8 million before the budget is approved early next year. The 2009 capital budget was set at $77.5 million. With a one per cent approval, the budget will jump to $83.3 million. The increase to the capital budget will remain until council decides to remove it.

The difference is that for a full one per cent, there will be an additional $4 million for road construction, instead of $40 million that would be allotted under a 0.5 per cent budget. For that extra $4 million, an additional $6 million will be added to this year debt, making it $34.2 million.

The city’s overall consolidated debt is expected to balloon from $590 million in 2010 to $810 million in 2011. The city’s debt is expected to reach a high of $1.26 billion in 2017 before dropping slightly in 2018 and 2019.

“We are caught between a rock and a hard place,” said Robert Rossini, the city’s corporate services general manager.

Despite its high debt and the potential for the city’s credit level to affect how it finances projects, Hamilton still desperately needs to spend on infrastructure projects, Rossini said. Hamilton’s infrastructure deficit for major projects is projected to be about $62 million each year for the next 10 years.

Just under half of Hamilton’s capital budget will be directed to road construction. Money will also be used for park acquisition and development, economic development proposals and waterfront development.

A few of the projects proposed for next year include $21 million for the West Mountain Recreation Centre, $15.4 million for city hall renovations, $13 million for the Stoney Creek recreation centre, $11.7 million for the Trinity Church Arterial Corridor to open up the North Glanbrook Industrial Park, $10.3 million to twin the Morgan Firestone Arena and improvements to Woodward and York roads, and Randle Reef rehabilitation.

Mayor Fred Eisenberger urged councillors to accept the extra 1 per cent funding for infrastructure. He said both the federal and provincial governments are looking at how the city pays its share of infrastructure projects.

“Some time we will have to get our heads around that the federal and provincial governments will not fund our infrastructure,” he said. “We need to keep pace. This signals to other governments we are doing our bit.”

He said there have been complaints made by provincial officials that Hamilton has used provincial and federal monies to cut its taxes rather than direct the money to needed capital projects.

Stoney Creek councillor Maria Pearson, who supported the one per cent, said her greatest fear is the potential for safety problems for residents who are injured due to the city’s crumbling sidewalks and roads.

Ward 1 Councillor Brian McHattie suggested councillors wait early next year when councillors have more information about the city’s financial situation.

Councillors are scheduled to approve the 2010 budget at the end of February.

“I’d like more time to understand our situation,” he said.

http://www.dundasstarnews.com/news/article/196907