Kawartha Lakes approves historic capital budget amid inflation concerns

DARRYL KNIGHT The Standard

KAWARTHA LAKES: At a special council meeting on Tuesday, November 26th, the City of Kawartha Lakes approved its largest-ever Capital Budget, totaling $128 million.

This capital budget is one component of the city’s broader four-part financial plan, which also includes operating, special projects, and water-wastewater budgets.

Mayor Doug Elmslie emphasized the significance of the investment for both maintaining and expanding city infrastructure. “This capital budget is about keeping current facilities in good repair while investing in new facilities to support our growing community,” said Mr. Elmslie. “We’re investing $51 million on roads and bridges, higher than ever before.”

Approximately $60 million, nearly half the budget, is dedicated to “state of good repair” projects aimed at maintaining the city’s existing infrastructure. Key projects include: $2.9 million for the Emily-Omemee Arena Ice Pad System, approximately $700,000 to resurface City of Kawartha Lakes (CKL) Road 41 and $5.2 million for CKL Road 38, $4.8 million to replace the Lake Dalrymple Bridge, and $3 million for updated runways at the municipal airport,

The budget also allocates $68 million to expansion projects which address the needs of Kawartha Lakes' growing population. Highlights include: $6.2 million to widen Colborne Street in Lindsay, $21.5 million for a new Paramedics Headquarters, $1.8 million for the Somerville Landfill expansion, $15 million for affordable housing developments in Fenelon Falls and Minden, as well as $500,000 to improve parking, traffic flow, and add an outdoor ceremony space at City Hall.

Adam Found, Manager of Corporate Assets, highlighted the importance of addressing the city’s backlog of deferred capital projects. “This year’s Capital Budget makes a reduction to deferred capital projects. It will maintain service levels, ensuring we have the financial capacity to deal with new capital needs as they arise.”

However, Mr. Found also addressed a significant challenge: capital cost inflation. The city has seen sharp increases in project costs since the pandemic. For instance, the replacement of the Lake Dalrymple Bridge has more than doubled in cost since 2019, while the new Paramedics Headquarters has skyrocketed from an estimated $16 million pre-pandemic to $50 million today.

“We’re seeing the trend across the board, and all other municipalities are in the same boat,” said Mr. Found. “We don’t consume the same bundle of goods which the CPI (Consumer Price Index) is based on, such as food, housing, and fuel. Instead, we purchase goods for water treatment plants, roads, and airports. These purchases have seen much higher inflation than the CPI, and thus are a great source of pressure on our budget.”

Despite the challenges, members of council and city staff expressed confidence the historic investment in local infrastructure through the capital budget will meet the city’s current and future needs.