SMITHS FALLS — Council has directed staff to press the town’s insurer for a cash settlement after a Feb. 21 fire damaged the north end of the Public Works garage, and signalled support for a new operations building on Walker Road.
Director of Public Works and Utilities Paul McMunn presented four options during a Sept. 2 committee of the whole meeting, asking councillors for general direction. The preferred path emerging was to build new on Walker Road while keeping limited operations in the undamaged south end of the current facility until a replacement is ready.
McMunn said Intact Public Entities, the town’s insurance company, has indicated about $1.433 million to restore the structure to its pre-fire condition. Early class-D estimates put the town’s net share for a new build at just over $9 million after applying a cash settlement. He cautioned that those figures carry contingencies and should tighten as the design advances and the project moves toward tender.
Renovating the old Public Works garage, McMunn added, would still leave the town with an aging core. He pointed to a leaking roof and a floor slab he called “about a foot to a foot-and-a-half too low” for proper drainage. The existing building also lacks showers, adequate washrooms, a lunch room and office space.
Coun. Jay Brennan said the Public Works garage project is overdue and should take priority. “This is a core service, right up there with water and wastewater,” he said. “It’s unfortunate we had a fire, but sometimes things happen for a reason. I’d much rather see this move forward than spend money on the Youth Arena study.” He noted that destroyed equipment is already being replaced through insurance and urged staff to outline clear financing paths for the new build.
Treasurer Paul Dowber told council the town will likely rely on debt financing and may need to “revisit its self-imposed debt ceiling” during 2026 budget talks. He said upcoming interest-rate decisions could ease borrowing costs and that any grant opportunities tied to greener building systems should be pursued.
Mayor Shawn Pankow said he supports a new, energy-efficient facility in principle but cautioned about long-term costs. He estimated financing roughly $8 million over 20 years could add about $600,000 annually in payments. Pankow also asked for a business case on a proposed on-site fuelling depot that could serve multiple departments. McMunn said similar card-lock systems operate in nearby municipalities and that suppliers sometimes offset infrastructure costs through long-term fuel contracts.
Coun. Dawn Quinn pressed staff to “push insurance hard” for a better payout. “I know I’ll get raised eyebrows,” she said, but added that council should consider building a facility to house both public works and the fire department. She suggested renting space in the former Hershey plant in the interim.
McMunn said he had discussed the idea of combined facilities with the fire chief but that Air Care Drive is considered too far from the core for fire response. A joint site would likely require new land and added costs, he said. He also noted the town has invested in a salt shed at the current yard.
Earlier that day, McMunn toured Montague Township’s newly built combined public works and fire complex. He described a 22,000-square-foot building with three fire bays and four full-depth public works bays, in-floor radiant heating and on-site stormwater controls. He said Montague’s experience suggests class-D estimates can come down once projects reach tender, and Smiths Falls should expect the same.
Chair Coun. Jennifer Miller summarized council’s direction: staff are to negotiate a cash settlement with Intact Public Entities; continue design work toward a Walker Road build with staging and value-engineering; and fold the decision into 2026 budget deliberations with financing options, grant opportunities for a greener facility and a business case for the fuelling depot.
Staff will now move forward on that basis and report back with refined costs and options.
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