City closer to approving $216M budget for infrastructure in 2027

Water infrastructure and related upgrades make up more than half of the City of Iqaluit’s proposed $216-million capital budget for 2027.

Wastewater system upgrades soak up more than $80 million of the budget. Water infrastructure accounts for another $75 million, which includes $38 million for raw water intake, supply and storage.

Peter Tumilty, the city’s chief financial officer, introduced the proposed budget to councillors during Tuesday’s governance and priorities committee meeting. He began his presentation with an explanation as to why this year’s proposed budget is more than double last year’s $90-million capital plan.

“We have elected this year to show the entire cost of the project in the current year rather than spreading it out over the life of the project based on expected annual spending,” Tumilty said.

In the past, the city has spread project costs over multiple years to minimize the impact on the city’s finances, he said. This year, projects that are fully or substantially funded by third parties, such as the federal government, are fully costed into the budget.

For example, the city is planning to spend $60 million on wastewater system upgrades next year with money from the federal Building Canada Strong Fund.

This improves the city’s ability to plan multi-year projects and to optimize sealift scheduling, Tumilty said.

Other projects include $16 million toward drainage and roadway improvements and $12 million for city facility improvements, including the fire hall, shooting range relocation, and increasing equipment garage storage capacity.

The budget proposes $4.5 million for vehicle and equipment purchases, with a $750,000 grader being among the most costly.

Three playground replacements and outfield turf for the city’s softball diamond will share $750,000 in funding. Absent are arena upgrades and a long sought after community hall.

“It’s very much a practical budget, fixing the foundations and the infrastructure deficit that we have,” said deputy Mayor Kim Smith in a phone interview on Wednesday.

Councillors have not forsaken new recreational infrastructure and upgrades, she added.

“Once we get our feet back under us as far as critical infrastructure goes, we’ll be able to offer our residents a bit more of a fun budget where we can focus a bit more on recreation,” she said.

The improvements to water and wastewater systems will open up opportunities for much-needed housing in the community, she added.

Following Tumilty’s presentation, committee members unanimously moved to present the plan to city council.