Report: 3% tax increases required over 20 years to manage Erin assets

ERIN – Residents of Erin could be looking at potential three per cent tax increases for the next 20 years to cover a projected $1.2-million annual funding gap for town assets and services. 

Staff shared this year’s updated asset management plan with council on June 25.

It outlines the condition of all town assets by category:

• vehicles make up 9% of all town assets classified as very good, 4% of good assets, 1% of fair, 1% of poor and of 10% very poor);
• machinery and equipment (4% very good, 2% good, 1% fair, 1% poor, 4% very poor);
• land improvements (3% very good, 0% good, 0% fair, 1% poor, 8% very poor);
• buildings (4% very good, 5% good, 7% fair, 24% poor, 34% very poor);
• water network (7% very good, 21% good, 10% fair, 1% poor, 24% very poor);
• road network (7% very good, 23% good, 71% fair, 73% poor, 20% very poor); and
• bridges and culverts (66% very good, 44% good, 9% fair, 0% poor, 0%very poor).

The report also outlines the level of service the town wishes to reach over the next five to 10 years.

According to the report, the town wishes to increase the percentage of “fair” or better roads from 67% to 70%, the percentage of parks meeting maintenance standards from 75 to 90% and the percentage of assets in satisfactory condition in corporate services from 32 to 85%.

Town treasurer Wendy Parr told council the current required annual investment to maintain the proposed levels of service is $8.4 million with a current capital budget allocation of $7.2 million.

This leaves a $1.2-million annual funding gap that  staff proposed could be funded through property taxes, grants, development charges and debt.

Councillors offered suggestions on the report, such as different graph structures and including the town logo on the cover.

Councillor Jamie Cheyne questioned why the percentages in each asset category did not add up to 100%.

His question was not answered during the meeting, but treasurer Wendy Parr told the Advertiser, “The condition ratings ... are calculated vertically by category for all assets, rather than horizontally across the table, to assess the assets within certain conditions.”

“In some cases, columns totalled 99% or 101% because individual percentages were rounded. 

“This rounding variance has been corrected in the updated version, which will be published on the town’s website.”

Council approved the asset management plan in a unanimous vote (the mayor was absent).

The asset management plan can be viewed at erin.ca.