Blake Ellis/The Independent

Oil Springs may have to increase taxes by 1.5 per cent a year for the next decade to take care of the village’s infrastructure.

That’s one of the recommendations from a new asset management plan presented to council July 8.

The document states the 2023 replacement cost of the municipality’s entire asset portfolio is $14 million. This would be just over $49,000 per household in the village. That includes everything from the road network, bridges and water network to buildings, parks and equipment. 

The report recommends the village should allocate $311,000 annually to address capital requirements to keep current. 

Historically the Village of Oil Springs has spent approximately $203,000 annually to capital costs, leaving a $108,000 funding gap, creating the need to increase tax revenue.

“It’s scary when you read it,” said Oil Springs Clerk Martha Gawley, as she presented council with its draft asset management plan. 

“There is no way you will ever reach that,” said Mayor Ian Veen, at the July 8 meeting, referring to some of the numbers within the 117 page document. 

Gawley agreed, but an asset management plan has to be in place in order to apply for funding from the provincial government. 

Council passed the draft asset management report prepared by PSD Citywide. The consultants unpack the study at council’s August meeting.

There was some good news in the plan; 90 per cent of the village’s assets are listed as in fair or good condition.