Debt financing, raising taxes floated to address Sudbury's $1.4B infrastructure gap

Sudbury city councillors started talking about how to address the city's $1.4 billion infrastructure deficit on Tuesday, but a clear plan has not yet been developed on how to tackle the maintenance backlog.

"If this was a diagnosis given to us from a doctor, and we're going to continue doing what we've been doing, this is an end of life trajectory we're talking about," councillor Robert Kirwan said.

"We have to change."

Millions of dollars are needed to upgrades buildings, fleet and other assets, according to a recent report by the city's auditor general Ron Foster.

At least $700 million is needed to fix roads, and $345 million for the water and wastewater system.

"We are lucky in some ways," CAO Ed Archer said.

"We have fiscal capacity to address some of these challenges through the use of either debt financing tools or taxation."

City 'lucky in some ways,' CAO says

Mayor Brian Bigger insisted the city is trying to address the infrastructure gap. 

For example, Bigger noted council increased the water rate by 7.4 per cent, and summer roads maintenance by $2 million this year. 

"I think this is a good news story," Bigger said.

"That we, as a council, are looking at this, we're asking for the right reports, we're asking for the right information to make those decisions moving forward and make the investments that need to be made in our infrastructure."

Councillor Mike Jakubo also tried to put a positive spin on the story.

"We're not going to dig ourselves out of this hole in any short period of time," councillor Mike Jakubo said.

"But as far as I'm concerned, as long as I can see progress and as long as I can see further investments being made — and I do — than I know we're on the right track." 

An external consultant is revising the city's 10 year long term financial plan. 

The findings are expected to be presented to city council early next year. 

Councillors have also decided to hold a half day meeting to explore the possibilities of debt financing in the near future.