Tuesday, January 25, 2011

Town Encouraged to Put more in Reserves


The town of Fort Frances is being advised to raise more tax revenue to help cover the cost of replacing aging infrastructure.

An asset management plan outlined to councillors last night says the town hasn't been putting enough money into reserves in the past.

Jim Bruzezze of BMA Management Consulting says a 5 per cent hike in tax revenues for the next five years would help.

"By doing that, you would have an additional $2.5 million," says Bruzezzes. "So that $2.5 million would be available to increase the reserves or decrease the amount of debt incurred over the next five years."

Bruzezze says about $33.5 million in town assets needed to be replaced now.
He also suggests similar hikes to water and sewer rates to help cover capital in those areas.