$24.7M capital budget gets OK

Traffic signals, playground equipment and a new Market Square roof will be paid for through a 2016 infrastructure levy OK’d by city council Monday.

Councillors approved the 2016 capital budget of $23.9 million, along with a four-year forecast and an infrastructure levy policy recommended by the budget standing committee.

Council applied a one per cent levy for the first time last year to help deal with an estimated infrastructure deficit of $140 million.

A report to council Monday said the city’s infrastructure deficit continues to grow every year because investment is $14 million less than necessary just to maintain assets.

“An infrastructure levy is an operating tool to help address the city’s existing infrastructure deficit and demonstrates accountability and transparency to taxpayers in how funds are allocated and for what purpose,” Kristine Douglas, director of financial management services, told councillors in a presentation of the 2016 operating budget.

The infrastructure levy will fund improvements to roads, walkways, buildings and sidewalks and fund traffic signal replacements, playground equipment, tree planting and park amenities.

The levy is one per cent of the city’s portion of the current year tax levy and will be established for five years.

Projects from the 2016 infrastructure levy identified include $70,000 for the East Port Park basketball court, $100,000 for West Park playground equipment and $150,000 for the Market Square roof replacement.

Another $315,000 will be spent on tree planting, $50,000 on sidewalk improvements and $200,000 for traffic signal replacement. Rotary Park will get $12,500 in improvements.

Douglas said unspent funds of $42,500 will remain in the reserve for allocation in the following year’s capital budget.

Douglas also asked council to endorse the city’s debt management strategy, which sees debt charges capped at 10 per cent of the city’s total own expenditures.

When compared to 10 other municipalities, she said St. Catharines’ average debt in 2014 was below average and in 2015 was below three and close to two others.

“The city is in a relatively stable condition with its current level of debt,” Douglas said.

Mayor Walter Sendzik pointed out the debt comparisons and said the city built Meridian Centre and FirstOntario Performing Arts Centre and incurred a lot of debt.

He said the previous council and the current council have been committed to keeping the debt at a certain level and is managing to keep it at that 10 per cent.

In addition to passing the budget, Merritton Coun. Dave Haywood asked that staff come back for the 2017 budget cycle with a five-year plan to address the condition of parks in the city.

“The parks are in crisis,” he said, referring to an appendix which reported 60 per cent of tennis courts, 50 per cent of basketball courts and a third of playgrounds in the city are in poor condition.