“Local governments across the globe are becoming aware that
they have been making short-term decisions about investments, maintenance, and
the renewal of public assets and that it is not sustainable over the longer
term” Mayor Christina Benty wrote in the Golden Star on August 27th
2014. Golden is no different.
For a town of less than 4000 we have a significant and
diverse number of facilities. Now we must find a way to pay for them all.
The town of Golden is a corporation with over $60 million of
assets. The town’s assets comprise of infrastructure (water, sewer and roads),
land and buildings and equipment (furniture and vehicles). The services that
the town provides and the economic prosperity of our community are based on the
use of these assets.
Roads represent the town’s largest asset class reported at
over $27 million, almost half of the total assets. You may be surprised to
learn that the town has no money in a reserve fund for the maintenance of
roads. None!
Water and Sewer infrastructure is the second largest asset
class reported at over $15 million. Water and Sewer appear to be adequately
funded due in large part to the New Building Canada Fund (NBCF), a senior
government grant program for water and sewer infrastructure renewal projects.
However the NBCF will not support roads or buildings.
The town owns several buildings with an asset value of over
$6 million. Without prudent and sustainable financial management, these buildings
are at risk. There is insufficient money set aside in building reserve funds to
make major repairs or to replace them.
The existing financial model is not working and without
sufficient money in the reserve funds our roads will deteriorate slowly but
surely and our building will fall into disrepair. To maintain the assets that
everyone in the town and surrounding area enjoy, we need a new financial model,
a model that requires full and fair partnership on shared services with Area A.
Going forward, the challenge for Golden is to find the money
to support this infrastructure without reducing the services that make Golden
such a great place to live and without astronomical increases in property
taxes.
I believe I can help meet that challenge and build a sustainable future
for our children and grandchildren.
The opinions expressed in this blog are my personal opinions and may not represent the opinions of other Councillors nor the opinions of council.
