Niagara Falls delays 17 capital projects to 2021
Niagara Falls was expected to make an historic investment in its capital budget in 2020, but the COVID-19 pandemic has changed that story.
At its most recent council meeting on June 23, the City of Niagara Falls voted to delay a number of capital projects from this year to next. As a result, $71.89 million of the $77.65 million the city had planned to spend on works will proceed, while $5.76 million will be delayed to 2021. Put in other terms, of the 125 projects approved to proceed in 2020, 108 will start this year, and the remainder will be moved to next.
The three largest-valued projects pushed out to 2021 include $2.64 million for the replacement of a 32-metre bridge on Beck Road, $1.4 million for construction of a roundabout at the intersection of Whirlpool Road and Niagara River Parkway, and $880,000 for upgrades to radio systems on Niagara Transit busses.
Other projects delayed into next year include improvements to the Community Resource Centre building on Victoria Avenue, improvements to six fire stations, seat repairs at the Gale Centre rink, and renovations to the community centre at the Niagara Falls Public Library.
In their report to council, staff advised that the city’s 2021 capital budget may be as low as $24 million—with more than $18.8 million of that spending already committed to projects. The problem for the city is that expected revenue from sources such as Ontario Lottery and Gaming has been severely compromised by the COVID-19 pandemic. The city collects money from the provincial agency for hosting the Niagara Fallsview Casino Resort and Casino Niagara. Its payments are based on a percentage of gaming revenues.
As a result, say city staff, prepare for 2021 to be a catch-up year in which the city completes and closes out many active projects.
The city remains hopeful that it will receive capital funding from the Ontario Community Infrastructure Fund and provincial gas tax. It has also applied for funding for two projects— the Willoughby Arena and Library project and sewer, watermain and road reconstruction work on Drummond Road—through the Investing in Canada infrastructure plan. Should funding for both be approved, the city will be expected to fund approximately $7.8 million of the combined project values—and nearly $2.4 million in funding specifically in 2021.