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Hanover told it needs roughly $190 million to maintain infrastructure; wastewater upgrade could cost about $80 million
Summary
Hanover staff told council the town needs approximately $73 million for tax-funded assets and about $115 million for water and wastewater over the next decade — nearly $190 million total — and recommended investigating alternative financing and service models to avoid unsustainable tax increases.
Hanover’s treasurer warned council on Jan. 12 that the town faces steep infrastructure bills over the next decade that will force council to consider new financing or service models.
“Based on the asset management plan, we need approximately $73 million to support our current tax‑funded assets and an additional $115 million for water and wastewater infrastructure, for a total of almost $190 million over the next 10 years,” Yelina Savic, the town’s director of corporate services and treasurer, told council. She added those costs translate to roughly $19 million a year under current projections.
The presentation identified the wastewater‑treatment plant upgrade as the single largest project, currently projected at approximately $80 million. Savic said the town’s capital plan assumes some borrowing — about $49 million of the tax‑funded total — but that using the full provincial debt limit would still leave a funding gap and push annual tax increases above the town’s internal targets.
“To put that into perspective, our full budget this year was $24 million,” Savic said. “Under current projections … the town portion of the average residential tax bill would increase from about $2,500 today to $3,300 by mid‑2030.” She described the $190 million figure as the cost to maintain existing infrastructure and said it does not include new growth‑driven projects.
Councilors pressed staff on grant assumptions, debt capacity and alternatives. Savic said recent provincial and federal grants help but still require municipal contributions (an estimated 20–30% of a major project), and any debt issued for a major wastewater upgrade would count against the town’s annual repayment limit.
Staff recommended further study of alternative service‑delivery and financing options, including a municipal services corporation model that would keep water and wastewater assets municipally owned but allow large rate‑funded projects to be financed outside the town’s debt‑capacity calculation. Council voted to receive the report and directed staff to continue researching alternative models and financing approaches (motion moved by Councillor Susan Sackle; seconded by Councillor Carol Hudson). The motion carried.
