SECTION 7:  NEW INFRASTRUCTURE NEEDS

The category of new infrastructure includes all infrastructure that needs to be expanded or built to meet the changing needs of a community for demographic, socio-economic, environmental and other related reasons. Capital investments required to provide an enhanced level of service or meet new regulations would also be included. The needs for new infrastructure are distinct from the needs for upgrading existing deteriorated infrastructure. However, works undertaken to replace existing assets, or restore/repair existing infrastructure capacity, would not be considered "new".

In general, previous infrastructure surveys, both in Canada and the United States, have not generated specific estimates for new infrastructure needs-the 2007 FCM-McGill survey is one of the first to do so. As a consequence, there is relatively little previous data to use as a basis for comparison.

The 2007 FCM-McGill survey requested information from all participating municipalities about their new infrastructure needs. Based on the responses received, the projected need for new infrastructure is $115 billion.

Unlike the $123-billion municipal infrastructure deficit, the estimate of new infrastructure needs does not necessarily represent a funding shortfall. It is simply a projection of overall investments required to meet growing or changing needs in our communities.

However, there are inherent links between investments required for new and existing infrastructure. First, because new infrastructure projects inevitably compete with existing assets for funding and put added pressure on municipal capital budgets. Second, because, by definition, investments in new infrastructure expand a municipality's overall capital stock, and therefore create additional funding requirements for maintenance and repair in the future. Given this, it is important that new assets be designed for optimal life-cycle performance. It is worthwhile to consider a few options initially and adopt the option offering the lowest life-cycle cost. A similar philosophy should also be extended to rehabilitation projects involving existing deteriorated infrastructure. In short, we must not allow our infrastructure- old or new-to deteriorate.

Figure 11
New Municipal Infrastructure Needs
(Billions of Dollars)