The town could spend as much as $189.3 million on new and replacement projects over the next five years, except at this rate, there won’t be enough money to pay for it all.
Treasurer Marjory Leonard suggested increasing the funds set aside annually for the next five years to help cover the cost. Specifically, Leonard said the town should be saving one per cent of the money collected through taxation for the waterfront master plan. Additionally, she said the money put into savings for capital projects over the next five years should be increased cumulatively year-over-year and the town should add one per cent of the overall tax levy to the total saved each year.
Leonard presented the capital plan and her recommendations at the July 9 strategic initiatives committee meeting, and her report will be before council this afternoon (July 12).
She explained the current projected needs are underfunded based on the taxes and development charges that will come in over the next five years. Thus, she recommended a total annual increase in taxes of two per cent to be put aside for capital needs.
Half of the increase in savings proposed is for phase one of the waterfront master plan – a projected cost of about $22.3 million. Leonard said $15.4 million of that remains unfunded.
The other projects proposed in the five-year capital plan are mostly growth-related projects, with some of the costs allocated to replacing existing infrastructure.
More than 50 per cent of the $189.3 million is forecasted for water and wastewater investments. It represents the cost of major upgrades and expansions to the treatment facilities to accommodate for growth in Collingwood.
About 64 per cent of the $189.3 million will be spent on growth-related projects, 22 per cent on replacing current infrastructure and 12 per cent is allocated to discretionary projects (almost exclusively the waterfront master plan phase one).
“The next five years will see unprecedented growth for Collingwood,” states Leonard in her report. “The average number of new dwelling units forecast for the next five years is 411 annually, which is a 43 per cent increase compared to the five‐year average between 2013 and 2017.”
Big ticket growth projects include a water treatment plant expansion at $36 million, a wastewater treatment plant expansion at $34.7 million and about $14 million for Mountain Road and Tenth Line upgrades.
Renewal or replacement projects include rehabilitation or demolition of the Collingwood Terminals building ($8 million), replacing sanitary sewer systems ($5.2 million), and refurbishing a pumping station ($4.2 million).
The strategic initiatives committee received Leonard’s report, but made no decision on the recommendation. The report and recommendations go to council this afternoon. The meeting begins at 2 p.m. in the town hall council chambers.
