Hawkesbury Faces a $6.36-Million Annual Infrastructure Funding Challenge

Roads, water and sewer systems, municipal buildings, vehicles, bridges, culverts and equipment: the Town of Hawkesbury owns a significant amount of infrastructure that must be maintained, repaired and eventually replaced.

The first draft of Hawkesbury’s 2025 Asset Management Plan helps put that responsibility into perspective. The estimated replacement value of the Town’s municipal assets is approximately $434.5 million, or nearly $81,800 per household.

But perhaps the most important figure in the plan is the funding challenge. The report estimates an annual infrastructure funding gap of approximately $6.36 million between Hawkesbury’s long-term needs and its current sustainable funding.

The draft was received by Council for discussion and was expected to return at a future meeting for adoption. The figures are therefore part of a long-term planning strategy — not an adopted budget or an automatic tax increase.

What Condition Is Hawkesbury’s Infrastructure In?

The plan covers roads, bridges and culverts, drinking water, sanitary and storm sewer systems, municipal buildings, vehicles, machinery, equipment and other municipal assets.

According to the assessment, approximately 66% of the Town’s assets are considered to be in fair condition or better.

There is an important limitation, however. Hawkesbury has actual condition assessment data for approximately 74% of its assets. For the remainder, age is used to help estimate condition.

The plan therefore highlights the importance of continuing inspections and improving available data so the Town can better determine which infrastructure should receive priority.

“When we’re talking about more than $434 million in infrastructure, we can’t only think about the next budget. We need to plan today for the investments Hawkesbury will need 10, 20 and even 30 years from now.” — Simon Guindon

An Estimated $6.36-Million Annual Gap

According to the plan, Hawkesbury would need to invest an average of approximately $9.93 million per year in the rehabilitation and replacement of existing infrastructure to avoid building up a significant backlog.

Historically, approximately $3.57 million per year in sustainable funding has been directed toward capital projects or reserves.

The difference creates an estimated annual funding gap of $6.36 million.

That does not mean the Town suddenly needs to find an additional $6.36 million in its next budget. Instead, the plan proposes gradually closing the gap over a period of 15 to 20 years.

Could Taxes and Utility Rates Increase?

Potentially. The draft financial strategy includes long-term increases as one possible way to address the infrastructure gap.

The plan recommends considering average annual increases of 1.5% for tax-supported assets over 20 years, 3.4% for water rates over 15 years, and 2.9% for sanitary sewer rates over 15 years.

It is important to distinguish these recommendations from decisions already made by Council. These are proposed strategies in the Asset Management Plan, not approved tax or utility rate increases.

Future councils will have to determine the appropriate balance between taxation, water and sewer rates, reserves, government grants, debt and other funding sources.

“The answer shouldn’t simply be to ask taxpayers for more money. We need clear priorities, we need to maximize available grants, and residents should be able to see the results being achieved with every dollar invested.” — Simon Guindon

More Than $101 Million in Water Infrastructure Alone

Hawkesbury’s drinking water system demonstrates the scale of the Town’s infrastructure responsibilities.

Its estimated replacement value is approximately $101.2 million, including about $64.2 million for water treatment infrastructure and $36.2 million for approximately 62.7 kilometres of watermains.

The plan also reports that 100% of properties are connected to the municipal water system and have fire-flow availability. No boil-water advisories were reported in 2024.

Maintaining that level of service, however, requires continued long-term investment.

Maintaining Today to Avoid Bigger Costs Tomorrow

One of the key principles behind asset management is that preventive maintenance can extend the useful life of infrastructure.

Repairing a road or pipe at the right time can be considerably less expensive than waiting until its condition deteriorates to the point where complete reconstruction or replacement is required.

That is one of the main purposes of an Asset Management Plan: determining what needs attention, when the work should happen and where municipal dollars can have the greatest long-term impact.

“Good asset management is about avoiding a situation where we only react when infrastructure reaches the end of its life. The earlier we understand our needs, the better we can plan and avoid leaving an even larger bill for future generations.” — Simon Guindon

Growth Must Be Part of the Equation

The plan also raises an important issue for Hawkesbury’s future: growth.

New development can bring additional residents, businesses and taxpayers to the community. At the same time, growth can add roads, pipes and other infrastructure that the Town will eventually have to maintain and replace.

Planning for growth and planning for infrastructure therefore need to happen together.

What You Need to Know

• Hawkesbury’s municipal infrastructure has an estimated replacement value of $434.5 million.
• Approximately 66% of assessed assets are in fair condition or better.
• Sustainable capital needs are estimated at approximately $9.93 million per year.
• Current sustainable funding is approximately $3.57 million, leaving an estimated $6.36-million annual gap.
• The plan proposes gradually addressing that gap over 15 to 20 years.

Planning Before Problems Become Urgent

The Asset Management Plan does not mean Hawkesbury needs to replace $434 million worth of infrastructure tomorrow.

Instead, it provides a clearer picture of what the Town owns, what future investments may be required and how Hawkesbury can avoid making infrastructure decisions only when a road, pipe or municipal building reaches a critical condition.

For residents, the important next step will be watching how Council incorporates these recommendations into future budgets and Hawkesbury’s long-term infrastructure priorities.