As Regina faces infrastructure funding shortfall, council committee wants policy to manage city assets
Regina City Council’s Executive Committee has created a policy that will help manage the city’s infrastructure, after learning about the condition of many of its assets.
A pair of interconnected motions were on the agenda for Wednesday’s committee meeting.
According to a report presented to the executive committee, the city has assets with a total replacement value of $12.9 billion, as of December 31, 2020.
This list includes thousands of miles of roads, 153 ball diamonds, 84 bridges, 158 transit and paratransit buses, seven fire stations and one landfill.
The multi-billion dollar total replacement value represents the cost of replacing an asset with a new asset of similar standard and function at present value.
However, the total replacement value does not include the cost of day-to-day operations or the impacts on other nearby resources that could be disrupted if the original asset is replaced.
For example, the total replacement cost of a water pipe under a roadway does not include the cost of the resulting repairs to the road above the pipe.
Total Replacement Value is used by the City of Regina to understand the scale and magnitude of an asset’s value.
According to the report, 75% of the city’s assets are in very good to fair condition, while 17% are in poor to very poor condition, meaning they need action in the form of investment. or reassignment.
Service areas with assets in the worst condition include stormwater and wastewater, according to the report.
The amount of assets that potentially need to be replaced or reallocated means there will be a funding gap if funding levels remain as planned, the report says.
It indicates that over the next 20 years approximately $4.5 billion in funding will be required to replace assets, compared to projected funding of approximately $3.9 billion, a gap of approximately $655 million. dollars.
“It’s not unique for Regina to have an infrastructure deficit that’s a problem across the country,” Coun said. Cheryl Stadnichuk from Ward 1.
“I think what’s unique to Regina is that someone recommended that we build a city on okra. So that creates a lot of problems for our assets and the management of our assets.
Asset management strategy
However, a second motion before the committee would see city staff create a policy that will oversee how the city manages its assets going forward.
The creation of the asset management strategy is necessary to “confirm [city council’s] commitment to sound and prudent management of the city’s assets,” according to the motion.
This would allow the city manager, the recently selected Niki Anderson, to create more programs that will help deal with the deterioration of its assets.
Ward 9 County. Jason Mancinelli said the creation of the policy as well as the disclosure of the state of Regina’s assets will benefit the city.
“[It will] clean up the balance sheet. Give people a really good clear path so they can figure out how things balance out in a short time so they can start participating more willingly,” he said.
The infrastructure report has been accepted and filed, while the asset management policy still needs to be approved at a city council meeting.
The board could still decide not to create an asset management policy. However, the report warns that this would mean a lack of overarching policy to drive a coherent approach.
It would also create “a lack of clarity” around expectations between the city council and the city administration, the report said.