City of Thunder Bay Unveils Multi-Billion Dollar Asset Management Plan to Tackle Infrastructure Deficit
THUNDER BAY – The City of Thunder Bay is seeking Council approval for Phase Three of its Asset Management Plan (AMP), a comprehensive strategy aimed at addressing a significant infrastructure deficit and ensuring sustainable services for its residents. The plan, outlined in Corporate Report 171-2025-Infrastructure & Operations-Engineering, is scheduled for a Council meeting on 2 June 2025 and is required to be approved by 1 July 2025. It details how the city intends to manage its $4.9 billion asset portfolio and close a projected $307 million funding shortfall over the next decade.
Thunder Bay faces a growing infrastructure deficit, primarily driven by aging assets, underinvestment in renewal, and increasing demands on municipal services. To maintain current levels of service, an additional $30.6 million is required annually, which, if not funded, will result in a cumulative $307 million shortfall over the next 10 years. Should the city pursue proposed service enhancements, such as improved accessibility and climate resilience, this shortfall is projected to increase to $373 million over the same period. Currently, the city has $1.3 billion worth of assets at high or very high risk of failure, necessitating $215 million in lifecycle investments. The city presently funds only 71% of its annual renewal needs.
The new plan proposes a comprehensive, data-driven financial and asset investment strategy built around four key pillars to achieve long-term sustainability:
- Strengthen Financial Foundations: This involves prioritising renewal over expansion with an 80/20 capital funding split and gradually increasing capital investment through phased increases to the Municipal Tax Levy (Capital out of Revenue). The strategy includes a 2% increase in 2028, 3% in 2029, and 4% annually from 2030 onwards.
- Optimise Asset Use and Investment: Projects will be prioritised based on risk and lifecycle costing, maintaining current service levels where feasible, and regularly reviewing and rationalising assets.
- Align with Climate and Growth Goals: New assets are to be designed to be net-zero ready, and urban sprawl will be limited by focusing growth within existing serviced areas. This directly supports the city’s Climate Adaptation Strategy and Net-Zero Strategy.
- Enhance Revenue Diversity and Resilience: This pillar focuses on applying risk-based capital planning, ensuring full cost recovery for rate-supported services, and diversifying revenue streams through partnerships and grants.
This comprehensive strategy aims to eliminate the infrastructure deficit by 2064 based on current assets, or by 2066 for proposed levels of service. The plan covers all assets owned by the City of Thunder Bay that comply with the Tangible Capital Asset Policy, encompassing various asset classes such as Transportation, Drinking Water, and Wastewater.
The plan’s development involved an Executive Lead, Project Manager, a Steering Committee, and subject matter experts. Extensive engagement and consultation with both staff and the public were crucial, particularly in defining community levels of service. Engagement activities included educational videos, public events, town hall presentations, and crowdsourcing via public surveys, which received 1,760 responses.
The City is committed to continuous improvement through the development of an Enterprise-Wide Asset Management (EAM) Program, focusing on enhancing data quality, streamlining processes, and improving monitoring and reporting. The accompanying Strategic Asset Management Policy, also recommended for Council approval, will be reviewed and updated at least every five years. While there are no immediate financial implications associated with this report, significant financial resources will be required in future years, and the specific tax levy increases outlined are subject to future annual budget processes and Council direction.
