Windsor $2.6B short in expected infrastructure repairs over next decade

Windsor will need to spend significantly more money to keep roads, sewers and publicly owned buildings in good shape over the next decade.

There's a $2.6-billion gap between the amount of money the city needs to keep assets — like roads, sewers and facilities — in generally good condition and what council has budgeted to spend over the next 10 years.

That balloons to $5 billion by 2034, if nothing changes.

As an immediate measure, staff is asking council to extend the previously approved asset management and road rehabilitation tax through 2026 at a rate of 1.41 per cent.

But the costs of maintaining and replacing infrastructure has outpaced that combined tax because of inflation and market pressures, write city staff in a report to council.

The report suggests council consider "incremental financial strategies" like going into debt and raising taxes to make up part of the $114 million annual shortfall.

While these reports are required by the provincial government, actually covering the funding gap is not.

Council deferred the city's corporate asset management plan on Monday.

54% of city assets in 'poor' or 'very poor' condition 

The plan sets service level targets to determine what condition everything from city streets to community centres and stop lights should be in.

That's $16.4 billion in assets which city staff generally want to be in "good" condition.

A 2024 analysis puts just over half of what Windsor owns by value is in good condition with nearly 19 percent – or $2.7 billion – in poor or very poor condition.

However, council is urged to update building condition assessments for all city owned buildings which could change those valuations. 

Ottawa is facing a $10.8-billion funding gap over 10 years with plans to increase water rates while taking on new debt. 

Toronto is looking at an $18-billion shortfall that it hopes to address by unlocking money through its new deal with the provincial government. 

Windsor's shortfall comes "despite record levels of capital investment in recent years" according to a report to council prepared by Natasha Gabbana, a senior manager in asset planning.

But it also points to data that suggests the city has underfunded certain categories of assets. 

Report suggest underfunding of Transit Windsor, parks department

The biggest chunk of the annual gap is between what the city currently spends on sewers, wastewater treatment plants, roads and publicly owned buildings. 

But while those amounts are higher dollar figures, they're a small percentage of the overall gap. 

Some categories that make up smaller portions of city's $16.4 billion in assets require a relatively larger increase to the annual budget compared to their value.

Overall, the city's annual funding gap is 0.7 per cent of the actual value of the assets.

But for Transit Windsor, it's 3.4 per cent. Information technology, which includes things like software and hardware, is 7.9 per cent, while parks is 2.5 per cent.

"This suggests that, relative to their replacement value, these asset groups have a higher funding shortfall than others, indicating they have likely experienced greater underfunding over time," according to the city' asset management plan. 

Transit Windsor is generally in fair condition and getting those assets into "good" condition will cost an additional $6.8 million annually.

Staff say keeping information technology assets in "fair" condition, which is the stated goal, will cost an additional $4.6 million each year.

There's policy and staffing changes that will help address the city's overall gap, according to the report. 

That includes creating three permanent positions and extending a temporary job in asset planning, which the report said is covered by existing budgets. 

The report also suggests asking for more money from upper levels of government or entering into partnership agreements with neighbouring communities to share resources and costs.