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Councillor wants IBR funding dropped from capital budget

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In Innisfil
Jan 15th, 2011
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Several proposed road projects getting a second glance
By Chris Simon Innisfil Scope January 12 2011
Nearly $7.3 million in proposed funding for Precinct 2A of the Innisfil Beach Road reconstruction should be chopped from the town’s 2011 Capital Budget, according to councillor Ken Simpson.
The stretch of road, which runs from Jans Boulevard to St. John’s Road, already received significant underground utility relocation work in 2010. The remaining plans for the stretch are scheduled to be completed in 2011, and include landscaping, centre medians, bicycle and turning lanes, sidewalks, improved lighting and on-street parking.
With $7.3 million proposed for the project in the capital budget, this is the right time to be reviewing council’s long-term plans for the road, said Simpson.
“I do not support the IBR $7 million expenditure, as it’s laid out before me,” he said, during a special budget meeting at the New Town Hall Wednesday. “We need to make an informed decision on this project, based on information we haven’t got yet.”
In total, about $29.5 million in spending has been proposed in the capital budget, with nearly $24.2 million suggested for growth-related projects, said the town’s director of finance, Lockie Davis.
“Most of the budget is contained within four projects,” he said. “All of these are growth projects. In 2011, we are asking for a significant increase (in capital spending). We’re (also) trying to build reserves and reserve funds, to ensure sustainability, so we don’t have to (seek funding) externally. Sustainability is to make sure we can deliver on the particulars, and replacement of assets, as they age and wear out.”
Among the projects proposed, about $4.5 million may be allocated for the Lefroy water reservoir, with $5.9 million scheduled for the Cookstown trunk watermain. About $3.9 million in funding is also proposed for a new Innisfil Heights reservoir, while $900,000 has been pegged for the Lefroy fire station.
Funding for the Big Bay Point trunkmain and reservoir ($360,000) and pump station, forcemain and sewer ($330,000) has also been allocated. Improvements to the town’s septic receiving station ($550,000), the 9th Line between County Road 4 and the 10th Sideroad ($327,500), and asphalt for the 3rd Line ($327,000) are also proposed.
However, some councillor suggest the 3rd Line, King Street sidewalks ($55,000) and several other scheduled road projects should be re-evaluated.
“On the 3rd Line, there’s one house on a tiny piece of road that goes from the 5th Sideroad to the dead end at (Highway) 400,” said councillor Lynn Dollin. “I know the garbage truck goes out there, but that’s about it. There were seven unpaved roads in Cookstown when we amalgamated, and now there’s six. In Gilford, I couldn’t believe some of the roads I saw there; there were places where you’d swear you were in a Third World country. I understand it was the last council’s decision to aggressively push forward (IBR), but I don’t know if we totally understood how drastically it was going to change our Roads Needs Study. There are places that would be less angry about the urbanization if they had a decent (road) surface, where you could push a stroller without hitting potholes. I’d like (3rd Line and King sidewalks) to be re-looked at.”
Town CAO John Skorobohacz says staff have attempted to make knowledgeable and informed choices when proposing capital projects.
“This is staff’s best professional opinion,” he said, addressing council. “As elected officials, you’re coming at it from a different perspective than administration. If these aren’t the projects you believe the public wants, here’s your opportunity to adjust it. These are political decisions. Come forward with your list … administration will take its marching orders.”
Council is expected to encounter some budgeting difficulties over the next few years. The municipality accumulated nearly $38.8 million in long-term debt during the last term, on projects like the New Town Hall, Innisfil Recreation Complex and South Simcoe Police North Division station. And with growth-related demands expected to increase over the next few decades, the town has nearly reached its debt capacity, meaning there could be problems if council needs to borrow money for other large-scale infrastructure projects like water treatment plant expansions or a GO Transit station.
“There are significant pressures on development charges for roads, water and the Innisfil Heights area,” said Davis. “From an overall affordability standpoint, we do have the cash. (But) there’s a real need for us to develop long-term capital financing policies. Where feasible, we need to work with the development community. If we can have (them) take away some of the risk to fund these projects … (that’s) important. The plan as it currently exists is problematic. We have some major items in the 2013 forecast, for expansions of water and wastewater plants, and those are going to have to be debt financed; we don’t have the debt capacity to do that. We couldn’t proceed with those projects without assistance from the development community.”
The town has also heavily relied on OLG Slots at Georgian Downs revenue over the last few years, a financial strategy that could eventually backfire, said mayor Barb Baguley.
“(Staff) continue to wave the red flag of reliance on it,” she said. “Clearly (Davis) painted a cautionary picture for us, with regard to our decision making. We rely heavily on OLG funds and it would be a poor practice for a business and personal setting to rely on funds that are beyond your control. It’s kind of like grandpa at Christmas. Sometimes grandpa gives you $50, sometimes $500, sometimes he forgets. That idea has been lost on some of the spending practices. We should have the money in our hands prior to spending it.”
The budget will undergo further review at a council meeting on Jan. 19, and public input is being requested. The capital budget, water and wastewater rates, and user fees are expected to be passed in early February. For more information, visit www.innisfil.ca.

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