
Make wise investment in vital infrastructure
Published Thursday December 4th, 2008


Council faces an additional challenge this year: how to pay for major investments in new public infrastructure.
The federal and provincial governments have promised to make matching funding available more quickly. If council wants to take advantage of it, Saint John will need to come up with millions in capital investment. Council needs to map out its priorities and plan an ambitious capital budget.
Saint John is Canada's oldest incorporated city. It has a lot of infrastructure in need of repair, from water treatment and the Harbour Bridge to sidewalks and roads. But water treatment is the clear priority. At the very least, council must start budgeting funds for a new water plant.
Matching funds are usually allocated in thirds - one third federal, one third provincial, one third local. Saint John might need $50 million to $70 million to get its water plant started. Council needs to decide whether to bank the city's $8.2 million tax windfall against that expense. It also must figure out where the rest of the money will come from.
To councillors, it may not seem to matter how the city gets its third of the funding. But to taxpayers, it does. Every million the city borrows must be paid back, with interest. That puts the onus on council to budget wisely.
Saint Johners know what the pattern has been in the past - tax deeply, spend foolishly, then borrow and tax more. They want this council to ensure tax dollars are spent responsibly. That means managing services more efficiently, planning for capital expenses, and keeping up with routine maintenance.
Saint John's water crisis is a product of mismanagement. Officials aren't likely to admit this, but residents know the truth. They've seen major infrastructure decline more rapidly because councils refused to meet the expense head-on. This time, the city must approach infrastructure differently.
After 40 years of postponed investment, residents expect council to strike a federal-provincial funding partnership and fix the water problem. Saint Johners are prepared to pay their share for clean water. They just don't want to get hosed.


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