Report finds Waterloo infrastructure funding gap is $54 million annually
A report from staff finds that the City of Waterloo is under-funding its annual infrastructure asset-management program.
Staff warn in the report that if this trend continues, some assets will deteriorate to “very poor” condition in the next 25 years.
Each year, the city spends $31.5 million on the upkeep of assets such as bridges and culverts, roads, stormwater and water distribution infrastructure. The 2023 Asset Management report recommends that figure be as high as $86 million. That leaves a funding gap of more than $54 million.
“The average annual funding gap has accumulated over many years,” said Cassandra Pacey, the Manager of Asset Management for the City of Waterloo. “It continues to be influenced by escalating construction costs, continued deterioration, rehabilitation or replaced improvements and improved asset data.”
The update warns that several asset classes, such as roads, parks, facilities, and bridges and culverts, will deteriorate to “very poor” condition in the next 25 years without a new funding strategy.
The average annual funding set aside for transportation infrastructure, for example is $7 million. The city report calls for closer to $30 million. The city currently estimates that 31% of its transportation assets are already reporting poor or very poor performance.
The report finds that bridges and culverts are underfunded by as much as $300,000 annually, while facilities require an extra $16.7 million annually, with 45% reporting poor or very poor performance.
The city owns $3.9 billion in infrastructure assets including roads, transportation, pipes, and bridges.