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Asset
Management
Plan 2025
TOWNSHIP OF BILLINGS
SEPTEMBER 2025
Township of Billings
Asset Management Plan 2025
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced asset management,
budgeting & GIS solutions
Township of Billings
Asset Management Plan 2025
ii
Key Statistics
$103m
2024 Replacement Cost of Asset
Portfolio
$153k
Replacement Cost of Infrastructure Per
Household
62%
Percentage of Assets in Fair or Better
Condition
53%
Percentage of Assets with Assessed
Condition Data
$1.7m
Annual Capital Infrastructure Deficit
20
Years
Recommended Timeframe for meeting
Proposed Levels of Service
1.79%
Target Reinvestment Rate to meet the
Proposed Level of Service
0.69%
Actual Reinvestment Rate
Township of Billings
Asset Management Plan 2025
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Table of Contents
1.
Executive Summary ............................................................................ 4
2.
Introduction & Context ........................................................................ 6
Portfolio Overview ................................................................................ 21
3.
State of the Infrastructure ................................................................. 22
Proposed Levels of Service ................................................................... 29
4.
Proposed Levels of Service Analysis ..................................................... 30
Core Assets ........................................................................................... 38
5.
Road Network .................................................................................. 39
6.
Bridges & Culverts ............................................................................ 52
7.
Water Network ................................................................................. 63
8.
Stormwater Network ......................................................................... 73
Non-Core Assets ................................................................................... 84
9.
Buildings & Facilities ......................................................................... 85
10. Land Improvements .......................................................................... 95
11. Fleet ............................................................................................. 105
12. Machinery & Equipment .................................................................... 115
Strategies ........................................................................................... 124
13. Growth .......................................................................................... 125
14. Financial Strategy ........................................................................... 127
15. Recommendations & Key Considerations ............................................. 141
Appendices ......................................................................................... 143
Appendix A - Infrastructure Report Card ................................................... 144
Appendix B - 10-Year Capital Requirements ............................................... 145
Appendix C - Risk Rating Criteria ............................................................. 150
Township of Billings
Asset Management Plan 2025
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1. Executive Summary
Municipal infrastructure delivers critical services that are foundational to the economic, social, and
environmental health and growth of a community. The goal of asset management is to enable
infrastructure to deliver an adequate level of service in the most cost-effective manner. This
involves the ongoing review and update of infrastructure information and data alongside the
development and implementation of asset management strategies and long-term financial
planning.
1.1 Scope
This Asset Management Plan (AMP) identifies the current practices and strategies that are in place
to manage public infrastructure and makes recommendations where they can be further refined.
Through the implementation of sound asset management strategies, the Township can ensure that
public infrastructure is managed to support the sustainable delivery of municipal services.
This AMP includes the following asset categories:
Figure 1 Core and Non-Core Asset Categories
1.2 O. Reg. 588/17 Compliance
With the development of this AMP the Township of Billings has achieved compliance with July 1,
2025, requirements under O. Reg. 588/17. This includes requirements for proposed levels of
service and inventory reporting for all asset categories. More details on compliance can be found
in section 2.5.1 O. Reg. 588/17 Compliance Review.
-Road Network
-Bridges & Culverts
-Water Network
-Stormwater Network
Core Assets
-Buildings & Facilities
-Land Improvements
-Fleet
-Machinery & Equipment
Non-Core Assets
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Asset Management Plan 2025
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1.3 Findings
The overall replacement cost of the asset categories included in this AMP totals $102.9 million.
62% of all assets analyzed in this AMP are in fair or better condition and assessed condition data
was available for 53% of assets. For the remaining 47% of assets, assessed condition data was
unavailable, and asset age was used to approximate condition - a data gap that persists in most
municipalities. Generally, age misstates the true condition of assets, making assessments
essential to accurate asset management planning, and a recurring recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of whole lifecycle
costs. This AMP uses a combination of proactive lifecycle strategies and replacement only
strategies to determine the lowest cost option to maintain the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure, prevent
infrastructure backlogs, achieve long-term sustainability, and reach the proposed levels of
service, the Township's average annual capital requirement totals $2.45 million. Based on a
historical analysis of sustainable capital funding sources, the Township is committing
approximately $700,000 towards capital projects or reserves per year. As a result, there is
currently an annual funding gap of $1.75 million.
It is important to note that this AMP represents a snapshot in time and is based on the best
available processes, data, and information at the Township. Strategic asset management
planning is an ongoing and dynamic process that requires continuous improvement and
dedicated resources.
1.4 Recommendations
A financial strategy was developed to address the annual capital funding gap and to meet the
Township's desired proposed levels of service. The following graphic shows annual tax/rate
change required to meet the proposed levels of service based on a 20-year plan:
Figure 2 Proposed Tax/Rate Changes
Tax-Funded
ASSETS
Average
Annual Tax
Change
1.5%
Rate-
Funded
WATER
Average
Annual Rate
Change
3.5%
Township of Billings
Asset Management Plan 2025
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2. Introduction & Context
2.1 Community Profile
Census Characteristic
Township of Billings
Ontario
Population 2021
753
14,223,942
Population Change 2016-2021
24.9%
5.8%
Total Private Dwellings
675
5,929,250
Population Density
3.6/km2
15.9/km2
Land Area
208.81 km2
892,411.76 km2
Table 1 Township of Billings Community Profile
The Township of Billings is located on the northern shore of Manitoulin Island in Ontario's
Manitoulin District, with its main community, Kagawong, situated along Mudge Bay on Lake
Huron. Covering approximately 208.81 km², the township is known for its stunning natural
features including Bridal Veil Falls, forests, and waterfronts, as well as access to the nearby
Benjamin Islands and the North Channel. According to the 2021 Census by Statistics Canada,
Billings has a growing population of 753, showing a 24.9% increase since 2016. The local
economy is driven largely by tourism, seasonal recreation, small-scale agriculture, and service-
based businesses that benefit from the township's natural beauty and rural lifestyle.
Billings is committed to preserving its rural character, protecting the natural environment, and
fostering a strong sense of community, as outlined in the 2024 to 2028 Strategic Plan. The plan
emphasizes service excellence, community well-being, environmental stewardship, and
sustainable infrastructure. To support these priorities, the Township aims to manage its
infrastructure assets through sustainable asset management practices that focus on ongoing
maintenance, condition assessments, and proactive capital planning. This integrated framework
ensures reliable, cost-effective services, and strengthens long-term resilience to guide well-
coordinated community growth.
2.2 Climate Profile
The changing climate poses a significant risk to the Canadian economy, society, environment, and
infrastructure. Between 1948 and 2016, the average temperature across Canada increased by
1.7°C, which is double the global average. Similarly, observed precipitation has increased by
approximately 20% between 1948 and 2012.
The Township of Billings is expected to experience notable effects of climate change that align
with these national trends. According to data from Climatedata.ca, the Township may experience
the following:
Township of Billings
Asset Management Plan 2025
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Higher Average Annual Temperature:
Between 1971 and 2000, the average annual temperature was 5.1°C. Under a high emissions
scenario, this is projected to rise to 8.0°C by 2050 and over 10.1°C by the end of the century.
Increased Precipitation:
Billings is projected to experience a 13% increase in precipitation by 2050 and a 17% increase by
the end of the century. According to the Township's Community Energy and Emissions Plan (CEEP),
heavy precipitation events (+20mm) are expected to increase by 20% by 2030, and freezing rain
events by 60% before 2050.
Declining Water Levels in Lake Huron:
A key challenge for Billings is the contrast between increasing local precipitation and the
fluctuating water levels of Lake Huron. While it seems paradoxical, higher temperatures can lead
to less ice cover on the Great Lakes during winter. This exposes more of the lake's surface to
dry, cold air, which significantly increases evaporation. This water loss can offset the gains from
increased local rainfall, impacting marina operations, shoreline property, and the local
ecosystem. The declining water levels pose direct impacts on Billings, including challenges to
marina operations, shoreline erosion, and pressures on local water resources and economic
activities like tourism and fishing.
Extreme Weather:
Longer droughts, increased flood risks, and more severe storms are anticipated, driven by the
island's unique location within the Great Lakes and the Northern Hemisphere's faster warming
trend. Wildfire risk is predicted to increase by nearly 30% by 2050.
2.2.1
Integration with Asset Management
Asset management practices are designed to provide sustainable service delivery, ensuring that
the needs of current residents are met without compromising the wellbeing of future generations.
This goal is threatened by climate change, which can shorten the useful life of community assets
and heighten the risk of failure due to impacts like flooding, high heat, drought, and increasingly
frequent and severe storms. To achieve sustainable service delivery, it is essential to incorporate
climate change considerations into asset management. Integrating climate adaptation with asset
management aligns with industry best practices and fosters a more holistic approach to risk
management.
To address these challenges, the Township of Billings launched its Community Energy and
Emissions Plan (CEEP) initiative in 2019. The plan outlines a strategy to integrate climate risk into
all operational and planning processes with the goal of creating a resilient, net-zero community
by 2050.
Key initiatives from the CEEP include:
-
Shared Natural Spaces: The plan aims to protect, restore, and enhance the Township's
natural systems, which currently absorb more carbon than the community emits (22,069
tCO2e per year). This involves promoting sustainability in agriculture, forestry, and tourism.
-
Buildings: The CEEP targets a 50% reduction in GHG emissions from buildings by 2030,
as they account for 43% of the community's total emissions. Actions include increasing
energy efficiency and promoting renewable energy to combat high rates of energy poverty
on Manitoulin Island.
Township of Billings
Asset Management Plan 2025
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-
Transportation: The plan seeks to reduce vehicle trips and accelerate the adoption of low-
carbon transportation options. To meet GHG reduction goals, it is estimated that 14 internal
combustion vehicles will need to be replaced by electric vehicles in the Township each year.
-
Waste Reduction: The strategy focuses on reducing overall consumption and increasing
waste diversion through better recycling and composting programs. A significant target for
reduction is food waste, which constitutes approximately 40% of the material in the Billings
landfill.
2.3 Asset Management Overview
Municipalities are responsible for managing and maintaining a broad portfolio of infrastructure
assets to deliver services to the community. The goal of asset management is to minimize the
lifecycle costs of delivering infrastructure services, manage the associated risks, while maximizing
the value ratepayers receive from the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of ownership. The
remaining 80-90% comes from operations and maintenance. This AMP focuses its analysis on the
capital costs to maintain, rehabilitate and replace existing municipal infrastructure assets.
Figure 3 Total Cost of Asset Ownership
These costs can span decades, requiring planning and foresight to ensure financial responsibility
is spread equitably across generations. An asset management plan is critical to this planning, and
an essential element of broader asset management program. The industry-standard approach and
sequence to developing a practical asset management program begins with a Strategic Plan,
followed by an Asset Management Policy and an Asset Management Strategy, concluding with an
Asset Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM), emphasizes the
alignment between the corporate strategic plan and various asset management documents. The
strategic plan has a direct, and cascading impact on asset management planning and reporting.
Township of Billings
Asset Management Plan 2025
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2.3.1
Foundational Asset Management Documentation
The industry-standard approach and sequence to developing a practical asset management
program begins with a Strategic Plan, followed by an Asset Management Policy and an Asset
Management Strategy, concluding with an Asset Management Plan.
Figure 4 Foundational Asset Management Documents
This industry standard, defined by the Institute of Asset Management (IAM), emphasizes the
alignment between the corporate strategic plan and various asset management documents. The
strategic plan has a direct, and cascading impact on asset management planning and reporting.
Asset Management Policy
An asset management policy represents a statement of the principles guiding the Township's
approach to asset management activities. It aligns with the organizational strategic plan and
provides clear direction to municipal staff on their roles and responsibilities as part of the asset
management program.
The Township of Billings adopted By-law No. 2019-24 "Asset Management Policy" on May 7th,
2019, in accordance with accordance with Ontario Regulation 588/17. The objectives of the
policy include:
-
Continue to develop and implement long-term roads maintenance and improvement.
-
Continue to pursue rational, cost-effective, and efficient use of municipal property.
-
Continue to improve/increase public use washroom facilities.
Strategic
Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
Township of Billings
Asset Management Plan 2025
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-
Continue with the waterfront development as outlined in the Waterfront Master Plan Study
and the project intent.
-
Continue to improve municipal waste site efficiency including waste diversion and
recycling.
-
Continue to ensure the most efficient and effective operations of the municipal water
treatment and distribution system for the hamlet of Kagawong.
-
Engage in joint municipal energy planning initiatives.
-
Update our Asset management program with supporting long-term financial plan of major
assets to guide the Township's future growth.
The policy provides a foundation for the development of an asset management program within
the Township. It covers the key components that define a comprehensive asset management
policy:
-
The policy's principles dictate the use of asset management practices to ensure all assets
meet the agreed levels of service in the most efficient and effective manner.
-
The policy commits to, where appropriate, incorporating asset management in the
Township's other plans.
-
There are formally defined roles and responsibilities of internal staff and stakeholders.
-
The policy includes the use of a cost/benefit analysis as well as the acknowledgement of
climate change in the management of risk; and
-
The policy principles are well defined.
Asset Management Strategy
An asset management strategy outlines the translation of organizational objectives into asset
management objectives and provides a strategic overview of the activities required to meet these
objectives. It provides greater detail than the policy on how the Township plans to achieve asset
management objectives through planned activities and decision-making criteria.
The Township's Asset Management Policy contains many of the key components of an asset
management strategy and may be expanded in future revisions or as part of a separate strategic
document.
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Township's asset management
program and identifies the resource requirements needed to achieve a defined level of service.
The AMP typically includes the following content:
State of Infrastructure
Asset Management Strategies
Levels of Service
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Asset Management Plan 2025
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Financial Strategies
The AMP is a living document that should be updated regularly as additional asset and financial
data becomes available. This will allow the Township to re-evaluate the state of infrastructure
and identify how the organization's asset management and financial strategies are progressing.
2.3.2
Key Concepts in Asset Management
Effective asset management integrates several key components, including lifecycle
management, risk & criticality, and levels of service. These concepts are applied throughout this
asset management plan and are described below in greater detail.
Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process is affected by
a range of factors including asset's characteristics, location, utilization, maintenance history and
environment. Asset deterioration has a negative effect on the ability of an asset to fulfill its
intended function, and may be characterized by increased cost, risk and even service disruption.
To ensure that municipal assets are performing as expected and meeting the needs of customers,
it is important to establish a lifecycle management strategy to proactively manage asset
deterioration.
There are several field intervention activities that are available to extend the life of an asset. These
activities can be generally placed into one of three categories: maintenance, rehabilitation, and
replacement. The following table provides a description of each type of activity and the general
difference in cost.
Depending on initial lifecycle management strategies, asset performance can be sustained through
a combination of maintenance and rehabilitation, but at some point, replacement is required.
Understanding what effect these activities will have on the lifecycle of an asset, and their cost, will
enable staff to make better recommendations.
Lifecycle Activity
Cost
Typical Associated Risks
Maintenance
Activities that prevent
defects or
deteriorations from
occurring
$
Balancing limited resources between planned
maintenance and reactive, emergency repairs and
interventions;
Diminishing returns associated with excessive
maintenance activities, despite added costs;
Intervention selected may not be optimal and may not
extend the useful life as expected, leading to lower
payoff and potential premature asset failure;
Township of Billings
Asset Management Plan 2025
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Lifecycle Activity
Cost
Typical Associated Risks
Rehabilitation/
Renewal
Activities that rectify
defects or deficiencies
that are already
present and may be
affecting asset
performance
$$$
Useful life may not be extended as expected;
May be costlier in the long run when assessed against
full reconstruction or replacement;
Loss or disruption of service, particularly for
underground assets;
Replacement/
Reconstruction
Asset end-of-life
activities that often
involve the complete
replacement of assets
$$$$$
Incorrect or unsafe disposal of existing asset;
Costs associated with asset retirement obligations;
Substantial exposure to high inflation and cost
overruns;
Replacements may not meet capacity needs for a larger
population;
Loss or disruption of service, particularly for
underground assets;
Table 2 Lifecycle Management: Typical Lifecycle Interventions
The Township's approach to lifecycle management is described within each asset category outlined
in this AMP. Staff will continue to evolve and innovate current practices for developing and
implementing proactive lifecycle strategies to determine which activities to perform on an asset
and when they should be performed to maximize useful life at the lowest total cost of ownership.
Risk & Criticality
Asset risk and criticality are essential building blocks of asset management, integral in prioritizing
projects and distributing funds where they are needed most based on a variety of factors. Assets
in disrepair may fail to perform their intended function, pose substantial risk to the community,
lead to unplanned expenditures, and create liability for the municipality. In addition, some assets
are simply more important to the community than others, based on their financial significance,
their role in delivering essential services, the impact of their failure on public health and safety,
and the extent to which they support a high quality of life for community stakeholders.
Risk is a product of two variables: the probability that an asset will fail, and the resulting
consequences of that failure event. It can be a qualitative measurement, (i.e. low, medium, high)
or quantitative measurement (i.e. 1-5), that can be used to rank assets and projects, identify
appropriate lifecycle strategies, optimize short- and long-term budgets, minimize service
disruptions, and maintain public health and safety.
Township of Billings
Asset Management Plan 2025
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Figure 5 Risk Equations
The approach used in this AMP relies on a quantitative measurement of risk associated with each
asset. The probability and consequence of failure are each scored from 1 to 5, producing a
minimum risk index of 1 for the lowest risk assets, and a maximum risk index of 25 for the
highest risk assets.
Probability of Failure
Several factors can help decision-makers estimate the probability or likelihood of an asset's
failure, including its condition, age, previous performance history, and exposure to extreme
weather events, such as flooding and ice jams--both a growing concern for municipalities in
Canada.
Consequence of Failure
Estimating criticality also requires identifying the types of consequences that the organization
and community may face from an asset's failure, and the magnitude of those consequences.
Consequences of asset failure will vary across the infrastructure portfolio; the failure of some
assets may result primarily in high direct financial cost but may pose limited risk to the
community. Other assets may have a relatively minor financial value, but any downtime may
pose significant health and safety hazards to residents.
Table 3 illustrates the various types of consequences that can be integrated in developing risk
and criticality models for each asset category and segments within. We note that these
consequences are common, but not exhaustive.
Type of Consequence
Description
Direct Financial
Direct financial consequences are typically measured as the
replacement costs of the asset(s) affected by the failure event,
including interdependent infrastructure.
Township of Billings
Asset Management Plan 2025
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Type of Consequence
Description
Economic
Economic impacts of asset failure may include disruption to local
economic activity and commerce, business closures, service
disruptions, etc. Whereas direct financial impacts can be seen
immediately or estimated within hours or days, economic
impacts can take weeks, months and years to emerge, and may
persist for even longer.
Socio-political
Socio-political impacts are more difficult to quantify and may
include inconvenience to the public and key community
stakeholders, adverse media coverage, and reputational damage
to the community and the Municipality.
Environmental
Environmental consequences can include pollution, erosion,
sedimentation, habitat damage, etc.
Public Health and
Safety
Adverse health and safety impacts may include injury or death,
or impeded access to critical services.
Strategic
These include the effects of an asset's failure on the community's
long-term strategic objectives, including economic development,
business attraction, etc.
Table 3 Risk Analysis: Types of Consequences of Failure
This AMP includes a preliminary evaluation of asset risk and criticality. Each asset has been
assigned a probability of failure score and consequence of failure score based on available asset
data. These risk scores can be used to prioritize maintenance, rehabilitation, and replacement
strategies for critical assets.
These models have been built in Citywide for continued review, updates, and refinements.
Levels of Service
A level of service (LOS) is a measure of the services that the Township is providing to the
community and the nature and quality of those services. Within each asset category in this AMP,
technical metrics and qualitative descriptions that measure both technical and community levels
of service have been established and measured as data is available.
The Township measures the level of service provided at two levels: Community Levels of Service
and Technical Levels of Service. This AMP includes those LOS that are required under O. Reg.
588/17 as well as any additional metrics the Township wishes to track.
Community Levels of Service
Community levels of service are a simple, plain language description or measure of the service
that the community receives. For core asset categories as applicable (Roads, Bridges & Culverts,
Stormwater, Water, and Sanitary) the province, through O. Reg. 588/17, has provided qualitative
descriptions that are required to be included in this AMP.
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Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the service being provided
to the community. These include mostly quantitative measures and tend to reflect the impact of
the Township's asset management strategies on the physical condition of assets or the
quality/capacity of the services they provide.
For core asset categories as applicable (Roads, Bridges & Culverts, Stormwater, Water, and
Sanitary) the province, through O. Reg. 588/17, has also provided technical metrics that are
required to be included in this AMP.
Current and Proposed Levels of Service
Current LOS are the past performance metrics of an asset category up until present day. In
contrast, Proposed LOS looks toward the municipality's goal for asset performance by a defined
future date.
It is important to note that O. Reg 588/17 does not dictate which proposed LOS metrics
municipality's need to strive for. A proposed LOS will be very specific to each community's resident
desires, political goals, and financial capacity. This can range from increasing service levels and
costs, to maintaining or even reducing current performance in order to mitigate future cost
increases. Regardless of the proposed LOS chosen, O. Reg 588/17 requires municipalities to
demonstrate the achievability of their selected metrics.
2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for the Township of Billings is produced in compliance with O. Reg.
588/17. The July 2025 deadline under the regulation--the third of three AMPs--requires analysis
of core and non-core asset categories, as well as proposed service levels and how to fund them.
The AMP summarizes the state of the infrastructure for the Township's asset portfolio, establishes
current levels of service and the associated technical and customer-oriented key metrics, outlines
lifecycle strategies for optimal asset management and performance, and provides financial
strategies to reach sustainability for the asset categories listed below.
Township of Billings
Asset Management Plan 2025
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Figure 6 Tax Funded and Rate Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on data as of December 2024; therefore, it
represents a snapshot in time using the best available processes, data, and information at the
Township. Strategic asset management planning is an ongoing and dynamic process that requires
continuous data updates and dedicated data management resources.
2.4.3
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an asset, and some are
more accurate and reliable than others. This AMP relies on two methodologies:
User-Defined Cost and Cost Per Unit
Based on costs provided by municipal staff which could include average costs from recent
contracts; data from engineering reports and assessments; staff estimates based on
knowledge and experience.
Cost Inflation / CPI Tables
Historical costs of the assets are inflated based on Consumer Price Index or Non-
Residential Building Construction Price Index.
User-defined costs based on reliable sources are a reasonably accurate and reliable way to
determine asset replacement costs. Cost inflation is typically used in the absence of reliable
replacement cost data. It is a reliable method for recently purchased and/or constructed assets
where the total cost is reflective of the actual costs that the Township incurred. As assets age,
-Road Network
-Bridges & Culverts
-Stormwater Network
-Buildings & Facilities
-Land Improvements
-Fleet
-Machinery & Equipment
Tax Funded Assets
-Water Network
Rate Funded Assets
Township of Billings
Asset Management Plan 2025
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and new products and technologies become available, cost inflation becomes a less reliable
method.
2.4.4
Estimated Service Life & Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Township expects the asset
to be available for use and remain in service before requiring replacement or disposal. The EUL
for each asset in this AMP was assigned according to the knowledge and expertise of municipal
staff and supplemented by existing industry standards when necessary.
By using an asset's in-service data and its EUL, the Township can determine the service life
remaining (SLR) for each asset. Using condition data and the asset's SLR, the Township can more
accurately forecast when it will require replacement. The SLR is calculated as follows:
Figure 7 Service Life Remaining Calculation
2.4.5
Reinvestment Rate
As assets age and deteriorate, they require additional investment to maintain a state of good
repair. The reinvestment of capital funds, through asset renewal or replacement, is necessary to
sustain an adequate level of service. The reinvestment rate is a measurement of available or
required funding relative to the total replacement cost.
By comparing the actual vs. target reinvestment rate the Township can determine the extent of
any existing funding gap. The reinvestment rate is calculated as follows:
Figure 8 Target Reinvestment Rate Calculation
Figure 9 Actual Reinvestment Rate Calculation
2.4.6
Deriving Asset Condition
An incomplete or limited understanding of asset condition can mislead long-term planning and
decision-making. Accurate and reliable condition data helps to prevent premature and costly
Township of Billings
Asset Management Plan 2025
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rehabilitation or replacement and ensures that lifecycle activities occur at the right time to
maximize asset value and useful life.
Condition
Description
Criteria
Service Life
Remaining
(%)
Very Good
Fit for the future
Well maintained, good condition, new or
recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching mid-
stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some elements
exhibit significant deficiencies
40-60
Poor
Increasing
potential of
affecting service
Approaching end of service life, condition
below standard, large portion of system
exhibits significant deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service life,
widespread signs of advanced
deterioration, some assets may be
unusable
0-20
Table 4 Standard Condition Rating Scale
A condition assessment rating system provides a standardized descriptive framework that allows
comparative benchmarking across the Township's asset portfolio. The table below outlines the
condition rating system used in this AMP to determine asset condition. This rating system is
aligned with the Canadian Core Public Infrastructure Survey which is used to develop the
Canadian Infrastructure Report Card. When assessed condition data is not available, service life
remaining is used to approximate asset condition.
The analysis in this AMP is based on assessed condition data only as available. In the absence of
assessed condition data, asset age is used as a proxy to determine asset condition.
Condition vs. Suitability
It is important to note that condition is only one aspect of determining an asset's suitability to
providing the service intended. Other factors, such as capacity, should be considered on a category
level.
For example, a Town Hall Office Facility may be in good condition with sufficient service life
remaining, but only has office space for 10 employees. If the municipality requires office space for
30 employees, solutions should be considered which may include replacement amongst other
alternatives such as secondary office space, remote work options, etc. As these considerations are
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Asset Management Plan 2025
19
nuanced for the specific asset, suitability factors may not be directly addressed as part of this
Asset Management Plan.
2.5 Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario government
introduced Regulation 588/17 - Asset Management Planning for Municipal Infrastructure (O. Reg
588/17)1. Along with creating better performing organizations, more liveable and sustainable
communities, regulation is a key, mandated driver of asset management planning and reporting.
It places substantial emphasis on current and proposed levels of service and the lifecycle costs
incurred in delivering them.
Figure 10 below outlines key reporting requirements under O. Reg 588/17 and the associated
timelines.
Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
1 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure https://www.ontario.ca/laws/regulation/170588
Township of Billings
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20
2.5.1
O. Reg. 588/17 Compliance Review
Requirement
O. Reg.
588/17
Section
AMP
Section
Reference
Status
Summary of assets in each category
S.5(2), 3(i)
5.1 - 13.1
Complete
Replacement cost of assets in each
category
S.5(2), 3(ii)
5.1 - 13.1
Complete
Average age of assets in each category S.5(2), 3(iii)
5.3 - 13.3
Complete
Condition of core assets in each
category
S.5(2), 3(iv)
5.2 - 13.2
Complete
Description of municipality's approach
to assessing the condition of assets in
each category
S.5(2), 3(v)
5.4 - 13.4
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
5.7 - 13.7
Complete
Current performance measures in each
category
S.5(2), 2
5.7 - 13.7
Complete
Lifecycle activities needed to maintain
current levels of service for 10 years
S.5(2), 4
5.4 - 13.4
Complete
Costs of providing lifecycle activities
for 10 years
S.5(2), 4
5.5 - 13.5
Complete
Growth considerations
S.6(1), 5
14.1 - 14.2
Complete
Proposed levels of service for each
category for next 10 years
S.6(1), 1(i-ii)
5.8 - 13.8
Complete
Explanation of appropriateness of
proposed levels of service
S.6(1), 2(i-iv)
4.2
Complete
Lifecycle management activities for
proposed levels of service
S.6(1), 4(i)
4.2
Complete
10-year capital costs for proposed
levels of service
S.6(1), 4(ii)
Appendix B
Complete
Annual funding availability projections
S.6(1), 4(iii)
4.2
Complete
Table 5 O. Reg. 588/17 Compliance Review
Township of Billings
Asset Management Plan 2025
21
Portfolio Overview
Township of Billings
Asset Management Plan 2025
22
3. State of the Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition, age profiles, and
other key performance indicators for the Township's infrastructure portfolio. These details are
presented for all core and non-core asset categories.
3.1 Asset Hierarchy & Data Classification
Asset hierarchy explains the relationship between individual assets and their components, and a
wider, more expansive network and system. How assets are grouped in a hierarchy structure
can impact how data is interpreted. Assets were structured to support meaningful, efficient
reporting and analysis. Key category details are summarized at asset segment level.
Figure 11 Asset Hierarchy and Data Classification2
2 Segment classifications may share similar naming conventions. For consistency and transparency,
detailed definitions and descriptions of each classification are outlined in the relevant sections of this Asset
Management Plan.
-Gravel Roads
-Paved Roads
-Streetlights
-Surface Treated Roads
Road Network
-Bridges
-Structural Culverts
Bridges &
Culverts
-Hydrants
-Service Lead
-Treatment Plant
-Water Tower
-Watermains
Water
Network
-Storm Constructed
Drainage
-Storm Culverts
Stormwater
Network
-Environmental Services
-Fire & Emergency
-General Government
-Recreational & Cultural
Services
-Transportation Services
Buildings &
Facilities
-Environmental Services
-Transportation Services
Land
Improve-
ments
-Environmental Services
-Fire & Emergency
-Transportation Services
Fleet
-Environmental Services
-Fire & Emergency
-General Government
-Recreational & Cultural
Services
-Transportation Services
Machinery &
Equipment
Township of Billings
Asset Management Plan 2025
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3.2 Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The eight asset categories analyzed in this Asset Management Plan have a total current
replacement cost of $103 million. This estimate was calculated using user-defined costing, as
well as inflation of historical or original costs to current date. This estimate reflects replacement
of historical assets with similar, not necessarily identical, assets available for procurement today.
Figure 12 illustrates the replacement cost of each asset category; at 49% of the total portfolio,
the road network forms the largest share of the Township's asset portfolio, followed by the water
network at 24%.
Figure 12 Current Replacement Cost by Asset Category
3.2.2
Target vs. Actual Reinvestment Rate
The graph below depicts funding gaps by comparing the target to the current reinvestment rate.
Note: The target reinvestment rate in this section is based on current lifecycle management
approaches and does not consider proposed changes to service levels. For analysis of proposed
levels of service, refer to Section 4.
To meet the proposed long-term capital requirements (at current service levels), the Township
requires an annual capital investment of $2.45 million, for a target portfolio reinvestment rate of
2.38%. Currently, the annual investment from sustainable revenue sources is $706 thousand,
for a current portfolio reinvestment rate of 0.69%. Target and current re-investment rates by
asset category are detailed below.
$146k
$330k
$1.3m
$2.0m
$3.3m
$20.8m
$25.2m
$50.0m
$20m
$40m
$60m
Land Improvements
Machinery & Equipment
Stormwater Network
Fleet
Bridges and Culverts
Buildings & Facilities
Water Network
Road Network
Replacement Cost by Category
Township of Billings
Asset Management Plan 2025
24
Figure 13 Current Vs. Target Reinvestment Rate
3.2.3
Condition of Asset Portfolio
Figure 14 and Figure 15 summarize asset condition at the portfolio and category levels,
respectively. Based on both assessed condition and age-based analysis, 62% of the Township's
infrastructure portfolio is in fair or better condition, with the remaining 38% in poor or worse
condition. Typically, assets in poor or worse conditions may require replacement or major
rehabilitation in the immediate or short-term. Targeted condition assessments may help further
refine the list of assets that may be candidates for immediate intervention, including potential
replacement or reconstruction.
Similarly, assets in fair condition should be monitored for disrepair over the medium term. Keeping
assets in fair or better condition is typically more cost-effective than addressing assets needs when
they enter the latter stages of their lifecycle or decline to a lower condition rating, e.g., poor or
worse.
Condition data was available for majority of the road network, bridges & culverts, and buildings &
facilities. For all remaining assets, including major infrastructure such as storm mains, age was
used as an approximation of condition for most of these assets. Age-based condition estimations
can skew data and lead to potential under- or overstatement of asset needs.
Further, when assessed condition data was available, it was projected to current year (2025). This
'projected condition' can generate lower condition ratings than those established at the time of
the condition assessment. The rate of this deterioration will also depend on lifecycle curves used
to project conditions over time.
2.25%
3.33%
2.56%
2.36%
2.99%
7.52%
6.35%
2.15%
0.31%
9.64%
0.27%
4.09%
0.40%
0%
2%
4%
6%
8%
10%
12%
Target Reinvestment Rate
Actual Reinvestment Rate
Township of Billings
Asset Management Plan 2025
25
Figure 14 Asset Condition: Portfolio Overview
As further illustrated in Figure 15 at the category level, the majority of major, core infrastructure
including roads, bridges, and structural culverts are in fair or better condition, based on in-field
condition assessment data and age-based condition projections. See Table 6 for details on how
condition data was derived for each asset segment.
Figure 15 Asset Condition by Asset Category
Very Poor,
$15,591,000
(15%)
Poor,
$23,021,000
(22%)
Fair,
$34,050,000
(33%)
Good,
$15,480,000
(15%)
Very Good,
$14,822,000
(14%)
Overall Portfolio Condition
$7.7m
$513k
$130k
$878k
$1.3m
$1.3m
$3.0m
$8.9m
$933k
$250k
$16k
$4.6m
$774k
$6.8m
$318k
$45k
$11.4m
$15.5m
$1.2m
$46k
$19k
$2.1m
$19.7m
$651k
$146k
$16k
$1.8m
$1.2m
$11.8m
0%
20%
40%
60%
80%
100%
Water Network
Fleet
Machinery &
Equipment
Land Improvements
Buildings & Facilities
Stormwater Network
Bridges and Culverts
Road Network
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
26
Source of Condition Data
This AMP relies on assessed condition for 61% of assets, based on and weighted by replacement
cost. For the remaining assets, age is used as an approximation of condition. Assessed condition
data is invaluable in asset management planning as it reflects the true condition of the asset and
its ability to perform its functions. The table below identifies the source of condition data used
throughout this AMP.
Asset Category
Asset
Segment(s)
% of Assets
with Assessed
Conditions
Source of Condition Data
Road Network
Gravel Roads
99%
Staff assessments (2021)
Surface Treated
Roads
50%
Staff assessments (2021)
Paved Roads
0%
Age-based
Streetlights
14
Staff assessments (2021)
Bridges & Culverts
Bridges
Structural Culverts
100%
2024 OSIM Report
Water Network
Water Treatment
Plant
64%
ABSI (2024)
Watermains
10%
Staff Assessments (2020)
All Other
0%
Age-based
Stormwater Network
All
0%
Age-based
Buildings & Facilities
All Other
0%
Age-based
General
Government
100%
ABSI (2024)
Recreational and
Cultural Services
92%
ABSI (2024)
Transportation
Services
100%
ABSI (2024)
Land Improvements
All
0%
Age-based
Fleet
All
0%
Age-based
Machinery &
Equipment
All
0%
Age-based
Table 6 Source of Condition Data
Township of Billings
Asset Management Plan 2025
27
3.2.4
Risk Matrix
Using the risk equation and preliminary risk models, Figure 16 shows how assets across the
different asset categories are stratified within a risk matrix.
Figure 16 Risk Matrix: All Assets
The analysis shows that based on current risk models, approximately 4% of the Township's assets,
with a current replacement cost of approximately $3.7 million, carry a risk rating of 15 or higher
(red) out of 25. Assets in this group may have a high probability of failure based on available
condition data and age-based estimates and were considered to be most essential to the Township.
As new asset attribute information and condition assessment data are integrated with the asset
register, asset risk ratings will evolve, resulting in a redistribution of assets within the risk matrix.
Staff should also continue to calibrate risk models.
We caution that since risk ratings rely on many factors beyond an asset's physical condition or
age, assets in a state of disrepair can sometimes be classified as low risk, despite their poor
condition rating. In such cases, although the probability of failure for these assets may be high,
their consequences of failure ratings were determined to be low based on the attributes used and
the data available.
Similarly, assets with very high condition ratings can receive a moderate to high-risk rating despite
a low probability of failure. These assets may be deemed as highly critical to the Township based
on their costs, economic importance, social significance, and other factors. Continued calibration
of an asset's criticality and regular data updates are needed to ensure these models more
accurately reflect an asset's actual risk profile.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$57,709,000
$28,651,000
$5,767,000
$7,156,000
$3,681,000
(56%)
(28%)
(6%)
(7%)
(4%)
Township of Billings
Asset Management Plan 2025
28
3.2.5
Forecasted Capital Requirements
Aging assets require maintenance, rehabilitation, and replacement. Figure 17 below illustrates
the cyclical short-, medium- and long-term infrastructure replacement requirements for all asset
categories analyzed in this AMP over a 150-year time horizon. On average, $2.5 million is
required each year to remain current with capital replacement needs for the Township's current
lifecycle approach for the asset portfolio, represented by the red dotted line.
These projections do not consider any changes from current service
levels to proposed service levels.
Although actual spending may fluctuate substantially from year to year, this figure is a useful
benchmark for annual capital expenditure targets (or allocations to reserves) to ensure projects
are not deferred and replacement needs are met as they arise. This figure relies on age and
available condition data.
The chart also illustrates a backlog of more than $688,000, comprising assets that remain in
service beyond their estimated useful life. It is unlikely that all such assets are in a state of
disrepair, requiring immediate replacements. This makes continued and expanded targeted and
consistent condition assessments integral.
Risk frameworks, proactive lifecycle strategies, and levels of service targets can then be used to
prioritize projects, continuously refine estimates for both backlogs and ongoing capital needs and
help select the right treatment for each asset. In addition, more effective componentization of
buildings will improve these projections, including backlog estimates.
Figure 17 Capital Replacement Needs: Portfolio Overview 2025-2099
$2.5m
$0
$5m
$10m
$15m
$20m
$25m
$30m
$35m
Forecasted Capital Requirements
Total
Annual Requirement
Township of Billings
Asset Management Plan 2025
29
Proposed Levels of Service
Township of Billings
Asset Management Plan 2025
30
4. Proposed Levels of Service Analysis
4.1 Overview
4.1.1
O. Reg. 588/17 Proposed Levels of Service Requirements
The third iteration of municipal Asset Management Plans required under O. Reg. 588/17 requires
the evaluation of levels of service (LOS) that includes:
Proposed LOS options (i.e. increase, decrease, or maintain current LOS) and the risks
associated with these options;
How the proposed LOS may differ from current LOS;
Whether the proposed LOS are achievable; and
The municipality's ability to afford proposed LOS.
Additionally, a lifecycle management and financial strategy to support the proposed LOS must be
identified for a period of 10 years with specific reporting on:
Identification of lifecycle activities needed to provide the proposed LOS;
Annual costs over the next 10 years to achieve the proposed LOS; and
Identification of proposed funding projected to be available.
4.1.2
Considerations
Proposed LOS for the Township of Billings have been developed through comprehensive
engagement with Township staff. In order to achieve any target LOS goal, careful consideration
of the following should be given:
Financial Impact Assessments
Assess historical expenditures/budget patterns to gauge feasibility of increasing budgets
to achieve increased service levels
Consider implications of LOS adjustments on other services and other infrastructure
programs (i.e. trade-offs)
Infrastructure Condition Assessments
Regularly assess the condition of critical infrastructure components
Use standardized condition assessment protocols (where possible) to quantify the state of
the infrastructure
Identify non-critical components where maintenance could potentially be deferred without
causing severe degradation
Use current condition metrics as benchmarks to gauge feasibility of large adjustments to
LOS
Service Metrics
Measure user satisfaction, response times, and other relevant indicators for specific
services
Service Impact Assessments
Evaluate potential impacts on user satisfaction and service delivery due to changes in
infrastructure condition
Township of Billings
Asset Management Plan 2025
31
Key Lifecycle Activities
Implement routine maintenance and inspections to ensure infrastructure reaches its
optimal useful life
Monitor and optimize operational processes for efficiency
Regularly review and update preventive maintenance schedules
Prioritize critical infrastructure components for maintenance
Implement cost-saving measures without compromising safety or compliance
Develop strategies for managing and communicating service impacts to stakeholders
Invest in technology and process improvements to enhance maintenance efficiency
Upgrade critical infrastructure components to improve overall reliability
Explore opportunities for innovation and efficiency gains
Risk Management
Identify potential risks to infrastructure and service quality resulting from adjusted service
levels
Develop contingency plans to address unforeseen challenges without compromising
service quality
Monitor performance closely to ensure that the target investment translates to the desired
infrastructure condition
Infrastructure Condition Enhancements
Identify areas for improvement and increased maintenance to enhance overall
infrastructure condition
Timelines
Although O. Reg. 588/17 requires evaluation of expenditures for a 10-year period in
pursuit of proposed LOS, it does not require municipalities to achieve the LOS within this
10-year timeframe (ex. a municipality may have a goal to reach X% condition by 2050,
the AMP is required to review the first 10 years of the strategy to reach this goal)
Careful consideration should be given to setting realistic targets for when proposed
service levels can be achieved.
Stakeholder Engagement
It is recommended to ensure adjustments to LOS are not made in isolation and without
consultation of various stakeholders. This could include, but is not limited to:
Department Heads/Infrastructure Managers
Residents
Service Users
Council
Efforts should be made to communicate changes to LOS transparently to all affected
stakeholders
Flexibility
Priorities may change over time due to a variety of factors, such as:
Financial state of the municipality
Availability of grants
Significant increases or decreases in population
Changes in political priorities
Township of Billings
Asset Management Plan 2025
32
Changes in resident priorities
New technologies
Changes in legislation
Any proposed changes to LOS should be flexible and able to adapt to changes listed
above, and other unforeseen circumstances
4.2 Proposed Levels of Service Scenarios
The three scenarios outlined in the following section were analyzed as options for proposed
service levels for all categories included in this Asset Management Plan.
While all three scenarios were reviewed, the Township of Billings selected
Scenario 2 as their preferred path forward regarding proposed levels of
service, which is reflected in the financial strategy and 10-year capital replacement
forecasts.
4.2.1
Scenario 1: Achieving Full Funding in 20 Years
This scenario assumes gradual tax and rate increases, stabilizing at 100% of recommended
funding in 20 years.
Annual Tax Increase ~2.4%
Annual Water Rate Increase ~4.5%
Note: any asset categories currently classified as 'over-funded' were reduced to the
recommended target funding levels.
While this scenario was modelled for consideration, the Township of Billings did not elect to
move forward with this scenario.
Lifecycle Changes Required for Scenario 1
To achieve scenario 1 for all asset classes, no changes to lifecycle strategies are required, only
an annual increase in funding is required.
Affordability/Achievability of Scenario 1
Of the three scenarios analyzed, Scenario 1 is the most expensive option. Achieving 100% of the
recommended funding immediately would require a 59.9% increase in tax revenue, and a
140.5% increase in water rates, an approach that is neither reasonable nor feasible in the short
term. Instead, a phased implementation over 20 years is recommended for both tax-funded and
rate-funded assets. A phased implementation would see tax revenue increasing gradually from
$2.1 million to $3.5 million and water rates increasing from $314 thousand to $754 thousand.
The projected available capital funding over the next 20 years for Scenario 1 is presented in the
table below. The values in the table represent the proportional increase to capital funding from
the overall recommended increase to both taxes and rates.
Township of Billings
Asset Management Plan 2025
33
Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-
Funded
$657k
$711k
$766k
$899k
$957k
$1.0m
$1.1m
$1.1m
$1.2m
$1.3m
Rate-
Funded
(Water)
$115k
$130k
$145k
$162k
$178k
$196k
$214k
$233k
$253k
$274k
Total $773k
$841k
$911k
$1.1m $1.1m $1.2m $1.3m $1.4m $1.5m $1.5m
Table 7 Scenario 1 Available Capital Funding Over Next 10 Years
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Risks Associated with Scenario 1
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 1, the following risks have been identified:
Increased infrastructure backlog
While mitigating the impact of financial increases on residents and businesses,
taking 20 years to reach the targeted funding levels means 20 years of sub-optimal
lifecycle management of assets. Being unable to complete strategic lifecycle
interventions and replacements may result in increased asset failures, reduced
reliability, and the potential for costly unbudgeted repairs to maintain services.
Financial Impact
While reaching a full funding scenario supports long-term asset sustainability and
reduces infrastructure risk, it can also introduce short- and medium-term
challenges. The primary risk lies in the financial impact on residents and
businesses, as rapidly increasing tax rates, utility fees, or other revenue sources to
close the funding gap may cause affordability concerns
Missed opportunities for efficiencies
While analyzing Scenario 1, no alternative lifecycle strategies were proposed. This
creates a potential risk of overcommitting financial resources without the
administrative or operational capacity to effectively deliver infrastructure projects.
Accelerated funding, if not guided by a clear understanding of asset lifecycle events
and priority activities, may outpace the township's ability to plan, design, and
implement capital works efficiently. Without a strategic approach that identifies the
right interventions at the right time--such as maintenance, renewal, and
replacement--funding may be used inefficiently, leading to delays, cost overruns, or
underutilized budgets.
Township of Billings
Asset Management Plan 2025
34
4.2.2
Scenario 2: Achieving 75% of Target Funding in 20 Years
This scenario assumes gradual tax and rate increases, stabilizing at 100% funding in 15 years.
Annual Tax Increase ~1.7%
Annual Water Rate Increase ~3.5%
Lifecycle Changes Required for Scenario 2
For all asset classes, no changes to lifecycle strategies are required in order to achieve Scenario
2, only increases to current funding levels. In future iterations of the AMP, it is recommended to
more closely analyze changes to lifecycle management strategies to find long-term cost savings
and efficiencies.
Affordability/Achievability of Scenario 2
Of the three scenarios analyzed, Scenario 2 represents a middle ground between the minimal
investment of the 50% funding level and the full funding target. Achieving 75% of full funding
would require a 38.9% increase in tax revenue and 97.3% increase in water rates if
implemented immediately. However, under the recommended 20-year phased approach, tax
revenue would gradually increase from $2.1 million to $3.0 million, and water revenue from
$314 thousand to $622 thousand. This scenario provides a practical path forward--improving
funding levels significantly without the greater financial impact of full funding. With these
gradual increases and continued reliance on sustainable grant funding, the total projected capital
funding available over the next 10 years for Scenario 2 is summarized in the table below:
Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-
Funded
$642k
$680k
$718k
$834k
$874k
$914k
$955k
$997k
$1.0m
$1.1m
Rate-
Funded
(Water)
$112k
$124k
$135k
$147k
$160k
$173k
$186k
$200k
$215k
$230k
Total
$754k
$803k
$853k
$982k
$1.0m
$1.1m
$1.1m
$1.2m
$1.3m
$1.3m
Table 8 Scenario 2 Available Capital Funding Over Next 10 Years
The above table accounts for both current and future expenditures in order to achieve and
maintain the proposed levels of service. This requires a combination of capital spending and
saving (i.e. reserves) to ensure future large expenditures can be financed. It is likely that there
will be years with less or no capital expenditures, however, this does not mean that the
Township should ignore the funding requirements in these years. Instead, annual funding should
be set aside in the form of reserves to ensure funding for upcoming lifecycle events is available
when required.
As the Township has selected Scenario 2 as their preferred proposed level of service, a further
breakdown of projected capital expenditures by asset category can be found in Appendix B.
Township of Billings
Asset Management Plan 2025
35
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Risks Associated with Scenario 2
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 2, the following risks have been identified:
Increased infrastructure backlog
Although the gradual 20-year approach helps ease the financial burden on residents
and businesses, it also extends the period of sub-optimal lifecycle management.
Delays in strategic interventions and asset replacements may lead to increased
asset failures, reduced reliability, and costly unplanned repairs.
In addition to the risks of reaching the desired funding levels gradually, Scenario 2
only targets 75% funding. By intentionally underfunding the Township's asset
portfolio, there is an increased risk of services being impacted by deteriorating
asset conditions.
Impact of Intentional Underfunding
By targeting only 75% of the recommended funding levels, Scenario 2 inherently
accepts some level of underfunding. This increases the risk that deteriorating asset
conditions will negatively affect service delivery over time. In some cases where
assets have been receiving sufficient funding, they may be unintentionally
underfunded, which will potentially defer lifecycle events, and a backlog may
develop.
Reliance on Conditional Grants
With partial funding, the Township becomes more dependent on conditional grants
to bridge the gap. While grants help alleviate tax and rate pressures, they are
inherently unpredictable and considered an unsustainable revenue source. This
reliance exposes the Township to vulnerabilities stemming from changes in
provincial and federal policies or funding programs.
Missed Opportunities for Cost Efficiencies
In Scenario 2, all asset categories rely solely on existing strategies. Mid-lifecycle
interventions such as pipe relining can significantly extend asset lifespans and lower
long term costs. Continuing to rely solely on current strategies may result in higher
expenditures over the life of the assets and a less efficient use of available funds.
Appropriateness of Scenario 2 to Meet the Township's Needs
Township staff emphasized the need to balance financial impacts on residents with the reality of
the current state of infrastructure within the municipality. Upon review of all three scenarios,
Scenario 2 was selected as the most appropriate option as an annual tax increase of 1.7%, and
rate increase of 3.5% over the modelled period, was determined to be subjectively manageable
to implement, while still increasing investment in infrastructure, working towards and creating a
sustainable future for the Township's infrastructure.
Township of Billings
Asset Management Plan 2025
36
4.2.3
Scenario 3: Achieving 50% Funding in 20 Years
This scenario assumes gradual tax and rate increases, stabilizing at 50% of recommended
funding in 20 years.
Annual Tax Increase ~0.8%
Annual Water Rate Increase ~2.2%
While this scenario was modelled for consideration, the Township did not elect to move forward
with this scenario.
Lifecycle Changes Required for Scenario 3
For all asset categories, no changes to lifecycle strategies are required to achieve Scenario 3,
only increases to annual funding. In future iterations of the AMP, it is recommended to more
closely analyze changes to lifecycle management strategies to find long-term cost savings and
efficiencies.
Affordability/Achievability of Scenario 3
Among the three scenarios analyzed, Scenario 3 represents the least costly option. The
Township is currently funding 31.6% of the annual tax-supported asset requirements and 18.7%
for rate funded assets. Achieving 50% funding would require only a 16.2% increase in tax
revenue and a 54.1% increase in water revenue. Under the recommended 20-year
implementation period, tax revenue would gradually increase from $2.1 million to $2.6 million.
For rate-supported assets, revenue would gradually increase from $314 thousand to $483
thousand. Based on these gradual increases and the assumption of continued sustainable grant
funding, the projected capital funding available over the next 10 years for Scenario 3 is
summarized in the table below.
Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-
Funded
$622k
$640k
$658k
$753k
$771k
$789k
$807k
$826k
$844k
$863k
Rate-
Funded
(Water)
$108k
$115k
$122k
$130k
$137k
$145k
$153k
$161k
$169k
$177k
Total $730k
$755k
$780k
$882k
$908k
$934k
$960k
$986k
$1.0m $1.0m
Table 9 Scenario 3 Available Capital Funding Over Next 10 Years
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Township of Billings
Asset Management Plan 2025
37
Risks Associated with Scenario 3
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 3, the following risks have been identified:
Increased infrastructure backlog
While mitigating the impact of financial increases on residents and businesses,
taking 20 years to reach the targeted funding levels means 20 years of sub-optimal
lifecycle management of assets. Being unable to complete strategic lifecycle
interventions and replacements may result in increased asset failures, reduced
reliability, and the potential for costly unbudgeted repairs to maintain services.
In addition to the risks of reaching the desired funding levels gradually, Scenario 3
only targets 50% funding. By intentionally underfunding the Townships asset
portfolio, there is increased risk of services being impacted by deteriorating asset
conditions.
Reliance on Grants
As Scenario 3 targets 50% of recommended funding levels, the Township will be
more reliant on conditional grants, as they become available. While these are
beneficial to all municipalities to secure to reduce their tax/rate burden on
residents, they are considered an unsustainable revenue source. The Township will
be more vulnerable to changes in provincial and federal policy and funding
programs.
Missed opportunities for efficiencies
While analyzing Scenario 3, no alternative lifecycle strategies were proposed. Mid-
lifecycle interventions, such as asphalt overlays and sewer lining, can result in
extended lifespans of assets and reduced costs over the lifetime of the assets. By
relying on existing lifecycle strategies, the Township risks paying more than
necessary to maintain their asset inventory.
Township of Billings
Asset Management Plan 2025
38
Core Assets
Township of Billings
Asset Management Plan 2025
39
5. Road Network
The Township's road network comprises the largest share of its infrastructure portfolio, with a
current replacement cost of almost $50 million. The Township also owns and manages other
supporting infrastructure and capital assets such as streetlights.
5.1 Inventory & Valuation
Table 10 summarizes the quantity and current replacement cost of the Township's various road
network assets as managed in its primary asset management register, Citywide.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Gravel Roads
34,200
Meters
$8,453,165
CPI
Paved Roads (HCB)
1
Assets
$2,996,115
CPI
Streetlights
29
Assets
$35,525
CPI
Surface Treated Roads
61,240
Meters
$38,503,047
CPI
TOTAL
$49,987,852
Table 10 Detailed Asset Inventory: Road Network
Figure 18 Portfolio Valuation: Road Network
5.2 Asset Condition
Figure 19 summarizes the replacement cost-weighted condition of the Township's road network.
Based on a combination of field inspection data and age, 37% of assets are in fair or better
condition; the remaining 63% of assets are in poor to very poor condition. Condition
assessments were available for 99% of gravel roads, and 50% of surface-treated roads, based
$36k
$3.0m
$8.5m
$38.5m
$10m
$20m
$30m
$40m
$50m
Streetlights
Paved Roads
Gravel Roads
Surface Treated Roads
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
40
on replacement cost. This condition data was projected from inspection date to current year to
estimate their condition today.
Assets in poor or worse condition may be candidates for replacement in the short term;
similarly, assets in fair condition may require rehabilitation or replacement in the medium term
and should be monitored for further degradation in condition. As illustrated in Figure 19, the
majority of the Township's road network assets are in poor or worse condition based on the
weighted replacement costs and current assessment data available.
Figure 19 Asset Condition: Road Network Overall
As illustrated in Figure 20, based on condition assessments, all of the Township's paved road
network is in very good condition; however, a majority of gravel, and surface treated roads are
in poor or worse condition3.
3 The reported condition of gravel and surface-treated roads is based on the current Citywide inventory;
however, actual conditions are expected to be better than reflected in the data. The Township resurfaces
approximately 4 km of gravel roads each year, invests $105,000 annually in gravel road maintenance, and
allocates $200,000 annually for the resurfacing and maintenance of surface-treated roads.
Very Poor,
$11,798,000
(24%)
Poor,
$19,679,000
(39%)
Fair,
$15,484,000
(31%)
Very Good,
$3,027,000
(6%)
$31k
$3.0m
$15.2m
$294k
$18.7m
$980k
$4.6m
$5k
$7.2m
0%
20%
40%
60%
80%
100%
Surface Treated
Roads
Streetlights
Paved Roads
Gravel Roads
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
41
Figure 20 Asset Condition: Road Network by Segment
5.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 21 illustrates that the majority of paved roads and streetlights are in the early stages of
their expected useful lives. On the other hand, gravel and surface treated roads have surpassed
their expected useful lives, with an average age of 62.4 years against a design life of 39.7 years
(gravel) and 21.2 years against a design life of 20.3 years (LCB).
Figure 21 Estimated Useful Life vs. Asset Age: Road Network
Although asset age is an important measurement for long-term planning, condition assessments
provide a more accurate indication of actual asset needs. Further, useful life estimates
established as part of the PSAB 3150 implementation may not be accurate and may not reflect
in-field asset performance.
62.4
4
5
21.2
39.7
25
25
20.3
0
10
20
30
40
50
60
70
Gravel Roads
Paved Roads
Streetlights
Surface Treated
Roads
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
42
5.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. This process is affected
by a range of factors including an asset's characteristics, location, utilization, maintenance
history and environment.
The following lifecycle strategies have been developed as a proactive approach to managing the
lifecycle of HCB and LCB roads. Instead of allowing the roads to deteriorate until replacement is
required, strategic rehabilitation is expected to extend the service life of roads at a lower total
cost.
Table 11 Lifecycle Management Strategy: Paved Roads
Paved Roads
Event Name
Event Class
Event Trigger
Crack Sealing & Asphalt Patching
Preventative
Maintenance
Condition: 75 - 85
Cold Mix & Single Surface
Treatment
Rehabilitation
Condition: 70 - 85
Base Repairs & 40mm asphalt
overlay
Rehabilitation
Condition: 20 - 70
Full Reconstruction
Replacement
Condition: 20
Township of Billings
Asset Management Plan 2025
43
Surface Treated Roads
Event Name
Event Class
Event Trigger
Single Surface Treatment
Rehabilitation
Condition: 65 - 85
Double Surface Treatment
Rehabilitation
Condition: 35 - 65
G/ST Rehabilitation
Rehabilitation
Condition: 20 - 35
Full Reconstruction
Replacement
Condition: 20
Table 12 Lifecycle Management Strategy: Surface Treated Roads
Gravel Roads
Event Name
Event Class
Event Trigger
Annual Grading (2 Treatments)
Maintenance
Condition: 85 - 95
G/ST Rehabilitation
Rehabilitation
Condition: 35 - 85
Full Reconstruction
Replacement
Condition: 20
Table 13: Lifecycle Management Strategy: Gravel Roads
Township of Billings
Asset Management Plan 2025
44
The following table expands on maintenance and inspection activities for road network assets.
Activity Type
Description of Current Strategy
Maintenance
Pothole repairs are completed annually based on deficiencies identified
through routine route patrols and feedback from the public
Roads are graded twice annually.
Seasonal maintenance activities include asphalt patching, graveling, and
tree cutting.
Summer maintenance activities include asphalt patching, sidewalk repairs,
grading, re-graveling, vegetation management, road sign
installation/maintenance, and line painting
Winter maintenance activities include snow plowing and snow removal
Rehabilitation
On an annual basis, Staff aim to hard surface about 5 km of roads
Rehabilitation activities include cold mix & single surface treatment, base
repairs & 40mm asphalt overlay, single surface treatment, double surface
treatment, and G/ST rehabilitation.
Road replacement prioritization is determined by consideration of growth,
risk, condition, health and safety, and social impact.
Replacement
Road reconstruction projects (base & surface) are identified based on road
condition, risk, and sub-surface asset requirements (water/storm)
Table 14 Lifecycle Management Strategy: Road Network
5.5 Forecasted Long-Term Replacement Needs
Figure 22 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Township's road network. This analysis was run until 2089 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Township's primary asset management system and asset register. The Township's average
annual requirements (red dotted line) total $1.1 million per year for all assets in the road
network. Although actual spending may fluctuate substantially from year to year, this figure is a
useful benchmark value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they arise.
Township of Billings
Asset Management Plan 2025
45
The chart illustrates substantial capital needs from 2050-2054. It also shows a backlog $5,000. These projections are based on
asset replacement costs, age analysis, and condition data when available, as well as lifecycle modeling (roads only). They are
designed to provide a long-term, portfolio-level overview of capital needs and should be used to support improved financial
planning over several decades.
Figure 22: Forecasted Capital Replacement Needs: Road Network 2025-2089
$1.1m
$5k
$6.2m
$1.9m
$62k
$5.5m
$36k
$22.5m
$9.6m
$0
$935k
$3.0m
$62k
$7.1m
$294k
$0
$5.0m
$10.0m
$15.0m
$20.0m
$25.0m
Forecasted Capital Requirements
Gravel Roads
Paved Roads
Streetlights
Surface Treated Roads
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
46
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. Regular pavement condition assessments and a robust risk framework will
ensure that high-criticality assets receive proper and timely lifecycle intervention, including
replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
5.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, and Historical Costs. The risk ratings for assets without useful attribute data were
calculated using only condition, service life remaining, and their replacement costs.
The matrix stratifies assets based on their individual probability and consequence of failure; each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Critera, for further details on approach used to determine
asset risk ratings and classifications.
Figure 23 Risk Matrix: Road Network
5.7 Current Levels of Service
The tables that follow summarize the Municipality's current levels of service with respect to
prescribed KPIs under Ontario Regulation 588/17, as well as any additional performance
measures that the Township selected for this AMP.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$37,381,000
$12,420,000
-
-
$187,000
(75%)
(25%)
(0%)
(0%)
(<1%)
Township of Billings
Asset Management Plan 2025
47
5.7.1
Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2024)
Scope
Description, which
may include maps, of
the road network in
the municipality and
its level of
connectivity
The road network is comprised of gravel, surface-
treated, and HCB roads. The network mostly consists
of roads with MMS classes of 3,4, and 6. In addition,
the network is supported by streetlights, and other
roadside appurtenances.
Quality
Description or images
that illustrate the
different levels of road
class pavement
condition
The Condition Rating number is a visual assessment of
the structural condition or integrity of the road. The
rating numbers were assigned on a scale of 1 to 10
with the lower numbers describing those roads with the
most structural distress or poorest shaped road cross
section.
-
(1-5) Road surface exhibits moderate to
significant deterioration and requires
improvement.
-
(6-10) Road surface is in generally good
condition, with localized deficiencies.
Table 15 O. Reg. 588/17 Community Levels of Service: Road Network
5.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
Lane-km of arterial roads (MMS classes 1 and 2) per
land area (km/km2)
0 km/km2
Lane-km of collector roads (MMS classes 3 and 4) per
land area (km/km2)
0.36 km/km2
Lane-km of local roads (MMS classes 5 and 6) per land
area (km/km2)4
0.33 km/km2
Quality
Average pavement condition index for paved roads in
the municipality
Paved: 91%%
Surface Treated:
49%
Average surface condition for unpaved roads in the
Township (e.g. excellent, good, fair, poor)
29%
Affordable
Capital Reinvestment Rate - The measure of funding
allocated towards saving for future capital
investments.
0.31%
4 Includes both paved and gravel roads.
Township of Billings
Asset Management Plan 2025
48
Service
Attribute
Technical Metric
Current LOS
(2024)
(Higher is typically better)
Table 16 O. Reg. 588/17 Technical Levels of Service: Road Network
5.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for the road network. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Level of Service Analysis.
5.8.1
PLOS Scenarios Analyzed
The analysis for the road network was ran with a 75-year outlook. Using a longer time period
and accounting for a full lifecycle of assets provides a better average.
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Average
Annual
Investment
Capital
Reinvestment
Rate
Scenario 1
(100%
Funded)
$49,988,000
56%
4.12
$1,011,000
2.25%
Scenario 2
(75%
Funded)
$49,988,000
49%
4.41
$779,000
1.56%
Scenario 3
(50%
Funded)
$49,988,000
41%
4.86
$542,000
1.08%
Table 17 Road Network PLOS Scenario Descriptions
Township of Billings
Asset Management Plan 2025
49
5.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 24 Road Network PLOS Scenarios: Condition Results
Township of Billings
Asset Management Plan 2025
50
5.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 25 Road Network PLOS Scenarios: Risk Results
Township of Billings
Asset Management Plan 2025
51
5.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 20, for the road network if the financial strategy for Scenario 2 is implemented. The table
clearly shows the direct correlation between target spending and reducing the infrastructure deficit over time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$845k
$845k
$845k
$845k
$845k
$845k
$845k
$845k
$845k
$845k
$845k
Projected
Capital
Spending
$330k
$354k
$379k
$454k
$480k
$506k
$533k
$560k
$588k
$616k
$845k
Funding
Deficit
$515k
$490k
$466k
$390k
$364k
$338k
$312k
$284k
$257k
$229k
-
Target
Reinvestment
Rate
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
Projected
Reinvestment
Rate
0.7%
0.7%
0.8%
0.9%
1.0%
1.0%
1.1%
1.1%
1.2%
1.2%
1.7%
Table 18 Road Network 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
52
6. Bridges & Culverts
The Township's transportation network also includes bridges and structural culverts, with a
current replacement cost of approximately $3.2 million.
6.1 Inventory & Valuation
Table 19 summarizes the quantity and current replacement cost of bridges and culverts. The
Township owns and manages 2 bridges and 1 structural culvert.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Bridges
2
Assets
$2,500,000
CPI
Structural Culverts
1
Assets
$774,280
CPI
TOTAL
$3,274,280
Table 19 Detailed Asset Inventory: Bridges & Culverts
Figure 26 Portfolio Valuation: Bridges & Culverts
$774k
$2.5m
$1m
$2m
$3m
Structural
Culverts
Bridges
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
53
6.2 Asset Condition
Figure 27 summarizes the replacement cost-weighted condition of the Township's bridges and
culverts. Based on the Township's recent Ontario Structures Inspection Manual (OSIM)
assessments, 63% of bridges and culverts are in fair or better condition. Some elements or
components of these structures may be candidates for replacement or rehabilitation in the
medium term and should be monitored for further degradation in condition. At 37% of the total
bridges and culverts portfolio, assets in poor or worse condition may require replacement in the
immediate or short term.
Figure 27 Asset Condition: Bridges & Culverts Overall
As further detailed in Figure 28, based on in-field condition assessments, 50% of bridge assets
were identified in very poor condition. As bridges and structures reach a poor or worse rating
(i.e., a bridge condition index of less than 40), they are not necessarily unsafe for regular use,
individual circumstances must be considered. The OSIM ratings are designed to identify repairs
needed to elevate condition ratings to a fair or higher.
Figure 28 Asset Condition: Bridges & Culverts by Segment
Very Poor,
$1,200,000
(37%)
Good,
$774,000
(24%)
Very Good,
$1,300,000
(40%)
$1.3m
$774k
$1.2m
0%
20%
40%
60%
80%
100%
Structural
Culverts
Bridges
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
54
6.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 29 Estimated Useful Life vs. Asset Age: Bridges & Culverts
Figure 29 illustrates that on average, bridge assets are in early stages of their lifecycle, whereas
the culvert has virtually all of its estimated useful life. OSIM assessments should continue to be
used in conjunction with age and asset criticality to prioritize capital and maintenance
expenditures.
8.4
45
30
30
0
10
20
30
40
50
Bridges
Structural Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
55
6.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
The following table outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Typical maintenance includes:
Obstruction removal
Cleaning/sweeping
Erosion control
Brush/tree removal
Biennial OSIM inspection reports include a list of recommended
maintenance activities that the Township considers and completes
according to cost and urgency.
Rehabilitation /
Replacement
Biennial OSIM inspection reports include a Capital Needs List identifying
recommended rehabilitation and replacement activities with estimated
costs.
Table 20 Lifecycle Management Strategy: Bridges & Culverts
6.5 Forecasted Long-Term Replacement Needs
Figure 30 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Township's bridges and culverts. This analysis was run until
2039 to capture at least one iteration of replacement for the longest-lived asset in Citywide
Assets, the Township's primary asset management system and asset register. The Township's
average annual requirements (red dotted line) for bridges and culverts total $109,000 per year.
Although actual spending may fluctuate substantially from year to year, this figure is a useful
benchmark value for annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
The chart illustrates that the capital needs are expected to peak from 2025-2029 at $1.2 million
and significantly rise again from 2035-2039 at $774,000 as assets reach the end of their useful
life. These projections and estimates are based on asset replacement costs, age analysis, and
condition data. They are designed to provide a long-term, portfolio-level overview of capital
needs and should be used to support improved financial planning over several decades.
Township of Billings
Asset Management Plan 2025
56
Figure 30 Forecasted Capital Replacement Needs: Bridges & Culverts 2025-2039
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. OSIM condition assessments and a robust risk framework will ensure that
high-criticality assets receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
6.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, detour length and replacement costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Criteria, for further details on approach used to determine
asset risk ratings and classifications.
$109k
$0
$1.2m
$0
$774k
$0
$200k
$400k
$600k
$800k
$1m
$1m
$1m
Backlog
2025 - 2029
2030 - 2034
2035 - 2039
Forecasted Capital Requirements
Bridges
Structural Culverts
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
57
Figure 31 Risk Matrix: Bridges & Culverts
6.7 Levels of Service
The tables that follow summarize the Township's current levels of service with respect to
prescribed KPIs under Ontario Regulation 588/17 as well as any additional performance
measures that the Township has selected for this AMP.
6.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description of the traffic that is
supported by municipal bridges
(e.g., heavy transport Fleet,
motor Fleet, emergency Fleet,
pedestrians, cyclists)
Bridges and structural culverts are a key
component of the municipal transportation
network. The 2024 OSIM report has no
recommendations for load restrictions
Quality
Description or images of the
condition of bridges & culverts
and how this would affect use
of the bridges & culverts
-
Good (BCI 70-100): Generally
considered to be in good-excellent
condition, and repair or rehabilitation
work is not usually required within
the next 5 years. Routine
maintenance, such as sweeping,
cleaning, and washing are still
recommended.
-
Fair (BCI 50-70): Generally
considered to be in good-fair
condition. Repair or rehabilitation
work recommended is ideally
scheduled to be completed within the
next 5 years.
-
Poor (BCI Less than 50): Generally
considered poor with lower numbers
representing structures nearing the
end of their service life.
-
The repair or rehabilitation of these
structures is ideally best scheduled to
be completed within approximately 1
year. However, if it is determined that
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
-
$1,300,000
-
$774,000
$1,200,000
(0%)
(40%)
(0%)
(24%)
(37%)
Township of Billings
Asset Management Plan 2025
58
Service
Attribute
Qualitative Description
Current LOS (2024)
the replacement of the structure
would be a more viable, the structure
can be identified for continued
monitoring and scheduled for
replacement within the short term.
Table 21 O. Reg. 588/17 Community Levels of Service: Bridges & Culverts
6.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of bridges in the Township with loading or dimensional
restrictions
0%
Quality
Average bridge condition index value for bridges in the
Township
53%
Average bridge condition index value for structural culverts
in the Township
82%
Performance
Capital Reinvestment Rate
9.64%
Table 22 O. Reg. 588/17 Technical Levels of Service: Bridges & Culverts
6.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The tables and graphs below explain the proposed levels of service scenarios that were analyzed
for bridges and culverts. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Level of Service Analysis.
Township of Billings
Asset Management Plan 2025
59
6.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$3,274,000
73%
10.06
3.3%
$102,000
Scenario 2
(75%
Funded)
$3,274,000
57%
12.98
2.1%
$69,000
Scenario 3
(50%
Funded)
$3,274,000
73%
16.02
1.6%
$52,000
Table 23 Bridges & Culverts PLOS Scenarios
Township of Billings
Asset Management Plan 2025
60
6.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 32 Bridges & Culverts PLOS Scenario Condition Results
Township of Billings
Asset Management Plan 2025
61
6.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 33: Projected Risk Comparison: All Scenarios
Township of Billings
Asset Management Plan 2025
62
6.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 20, for bridges and culverts if the financial strategy for Scenario 2 is implemented. The
table clearly shows the direct correlation between target spending and reducing the infrastructure deficit over time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
Projected
Capital
Spending
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
$82k
Funding
Deficit
-
-
-
-
-
-
-
-
-
-
-
Target
Reinvestment
Rate
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Projected
Reinvestment
Rate
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Table 24 Bridges & Culverts 10-Year PLOS Financial Projections
In this analysis, the current funding for bridges and culverts was considered to be 'over funded', meaning that the municipality
has budgeted more than the annual requirement. This is normal, as some years will see larger capital investment than others.
For this financial projection, the values remain constant as the category was meeting or exceeding the average annual
requirement, the value was adjusted down to the target level and the analysis carried out. In this case, there is not currently a
funding deficit in place for this asset category, given the proactive replacement strategy in place by the Township.
Township of Billings
Asset Management Plan 2025
63
7. Water Network
The Township's Water Network inventory is valued at approximately $25 million, and is
comprised of mains, hydrants and service leads, as well as several water facilities like the
treatment plant, and water tower.
7.1 Inventory & Valuation
Table 25 summarizes the quantity and current replacement cost of the Township's various water
network assets as managed in its primary asset management register, Citywide.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Hydrants
8
Assets
$90,832
CPI
Service Lead
273
Assets
$2,336,700
CPI
Treatment Plant
153
Assets
$6,878,600
CPI
Water Tower
2
Assets
$1,741,195
CPI
Watermains
213
Assets
$14,147,990
CPI
TOTAL
$25,195,317
Table 25 Detailed Asset Inventory: Water Network
Figure 34 Portfolio Valuation: Water Network
$91k
$1.7m
$2.3m
$6.9m
$14.1m
$5m
$10m
$15m
Hydrants
Water Tower
Service Lead
Treatment Plant
Watermains
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
64
7.2 Asset Condition
Figure 35 summarizes the replacement cost-weighted condition of the Township's water
network. Based on a combination of field inspection data and age, 93% of assets are in fair or
better condition; the remaining 7% of assets are in poor to very poor condition.
Assets in poor or worse condition may be candidates for replacement in the short term;
similarly, assets in fair condition may require rehabilitation or replacement in the medium term
and should be monitored for further degradation in condition.
Figure 35 Asset Condition: Water Network Overall
As illustrated in Figure 36, based on condition assessments and age-based conditions, the
majority of the Township's water network assets are in fair or better conditions.
Figure 36 Asset Condition: Water Network by Segment
Very Poor,
$651,000
(3%)
Poor,
$1,153,000
(5%)
Fair,
$6,812,000
(27%)
Good,
$8,879,000
(35%)
Very Good,
$7,700,000
(31%)
$3.1m
$1.7m
$1.9m
$865k
$34k
$4.5m
$3.7m
$611k
$57k
$5.1m
$874k
$861k
$895k
$258k
$521k
$131k
0%
20%
40%
60%
80%
100%
Watermains
Water Tower
Treatment Plant
Service Lead
Hydrants
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
65
7.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 37 illustrates that all Water Network assets are well within their estimated useful lives.
Figure 37 Estimated Useful Life vs. Asset Age: Water Network
7.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
Accurate and reliable condition data allows staff to more confidently determine the remaining
service life of assets and identify the most cost-effective approach to managing assets. The
following describes the municipality's current approach:
-
OCWA provides the Township with multi-year forecasts and inspections as required under
O. Reg. 170/3 are conducted
-
Staff primarily rely on the age and material of water mains to determine the projected
condition of water mains
34.6
38.7
18.3
16.8
36.3
50
60
41.8
47.2
66.9
0
10
20
30
40
50
60
70
80
Hydrants
Service Lead
Treatment
Plant
Water Tower
Watermains
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
66
The following table outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Valves undergo annual maintenance
Periodic pressure testing to identify deficiencies and potential leaks
Mains are flushed annually, and hydrants are flushed biannually
Rehabilitation /
Replacement
In the absence of mid-lifecycle rehabilitative events, most mains are
simply maintained with the goal of full replacement once it reaches its
end-of-life
The Water System Financial Plan (2021 - 2027) provides capital
projections that include replacement and rehabilitative activities for
specific assets and components
Other replacement activities are identified based on an analysis of the
main break rate as well as any issues identified during regular
maintenance activities
Table 26 Lifecycle Management Strategy: Water Network
7.5 Forecasted Long-Term Replacement Needs
Figure 38 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Township's water network. This analysis was run until 2099 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Township's primary asset management system and asset register. The Township's average
annual requirements (red dotted line) total $541,000 per year for all assets in the water
network. Although actual spending may fluctuate substantially from year to year, this figure is a
useful benchmark value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period. It also shows a
backlog $521,000, dominated by water mains. These projections are based on asset
replacement costs, age analysis, and condition data when available. They are designed to
provide a long-term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. Regular condition assessments and a robust risk framework will ensure that
highly critical assets receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
Township of Billings
Asset Management Plan 2025
67
Figure 38 Forecasted Capital Replacement Needs: Water Network 2025-2099
7.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, and pipe diameter. The risk ratings for assets without useful
attribute data were calculated using only condition, service life remaining, and their replacement
costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Criteria section for further details on approach used to
determine asset risk ratings and classifications.
$541k
$521k
$1.2m
$3.4m
$2.2m
$264k
$6.4m
$4.4m
$515k
$1.4m
$3.5m
$3.0m
$2.4m
$2.8m
$2.7m
$5.1m
$925k
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
Forecasted Capital Requirements
Hydrants
Service Lead
Treatment Plant
Water Tower
Watermains
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
68
Figure 39 Risk Matrix: Water Network
7.7 Levels of Service
The tables that follow summarize the Township's current levels of service with respect to
prescribed KPIs under Ontario Regulation 588/17 as well as any additional performance
measures that the Township has selected for this AMP.
7.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may
include maps, of the user
groups or areas of the
municipality that are
connected to the municipal
water system
The utility has over 9,594 meters of pipeline of
various sizes constructed solely from PVC,
approximately 11 hydrants and 32 valves. The
Kagawong Water Treatment Facility's
distribution system includes various chlorine
residual check points, which are sampled for
chlorine residual weekly.
An elevated water storage tank with a capacity
of 600 m3 is located on the southwest corner
of Beach Road and Rainbow Road. Located
inside the base of the storage tank is a valve
and control room, inlet pipe from the water
treatment plant, discharge pipe, overflow pipe,
ladder, electric power supply, access road,
controls, provisions for residual chlorine
measurements and all other items necessary to
have a complete and operable system.
Description, which may
include maps, of the user
groups or areas of the
municipality that have fire
flow
There are hydrants within the Township that
provide flow, however, they are not rated for
fire flow capacity. Fire services utilize pumpers
and natural water sources for firefighting.
Reliability
Description of boil water
advisories and service
interruptions
The Township did not experience any boil water
advisories or service interruptions in 2024
Table 27 O. Reg. 588/17 Community Levels of Service: Water Network
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$11,136,000
$9,086,000
$2,209,000
$2,764,000
-
(44%)
(36%)
(9%)
(11%)
(0%)
Township of Billings
Asset Management Plan 2025
69
7.7.2
Technical Levels of Service
Service Attribute
Technical Metric
Current
LOS (2024)
Scope
% of properties connected to the municipal water system
13%5
% of properties where fire flow is available
0%6
Reliability
# of connection-days per year where a boil water advisory notice
is in place compared to the total number of properties connected
to the municipal water system
0
# of connection-days per year where water is not available due to
water main breaks compared to the total number of properties
connected to the municipal water system
0
Performance
Capital Reinvestment Rate
0.40%
Table 28 O. Reg. 588/17 Technical Levels of Service: Water Network
7.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that were analyzed
for the water network. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Level of Service Analysis.
7.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average
Condition
Average Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$25,195,000
61%
7.27
1.8%
$456,000
Scenario 2
(75% Funded)
$25,195,000
52%
8.83
1.4%
$356,000
Scenario 3
(50% Funded)
$25,195,000
41%
10.02
0.97%
$246,000
Table 29 Water Network PLOS Scenarios
5 Although the Township has experience growth, the new developments have not connected to the municipal water system.
6 Although the Township has hydrants in place, they do not meet fire flow capacity requirements. Due to geographic positioning the
Township utilizes pumper trucks and natural water sources to meet firefighting demand.
Township of Billings
Asset Management Plan 2025
70
7.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 40 Water Network PLOS Scenario Condition Results
Township of Billings
Asset Management Plan 2025
71
7.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 41: Projected Risk Comparison
Township of Billings
Asset Management Plan 2025
72
7.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 20, for the water network assets if the financial strategy for Scenario 2 is implemented.
The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit over time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$406k $406k $406k
$406k
$406k
$406k
$406k
$406k
$406k
$406k
$406k
Projected
Capital
Spending
$112k
$124k
$135k
$147k
$160k
$173k
$186k
$200k
$215k
$230k
$406k
Funding
Deficit
$293k
$282k
$270k
$258k
$246k
$233k
$219k
$205k
$191k
$176k
-
Target
Reinvestment
Rate
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
Projected
Reinvestment
Rate
0.4%
0.5%
0.5%
0.6%
0.6%
0.7%
0.7%
0.8%
0.9%
0.9%
1.6%
Table 30 Water Network 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
73
8. Stormwater Network
The Township is responsible for maintaining a small stormwater network of storm line, culverts
and ditches valued at approximately $1.27 million.
8.1 Inventory & Valuation
Table 31 summarizes the quantity and current replacement cost of all stormwater management
assets available in the Township's asset register.
Segment
Quantity Unit of
Measure
Replacement
Cost
Primary RC
Method
Storm Constructed Drainage
1
Assets
$1,224,712
CPI
Storm Culverts
1
Assets
$49,396
CPI
TOTAL
2
$1,274,108
Table 31 Detailed Asset Inventory: Stormwater Network
Figure 42 Portfolio Valuation: Stormwater Network
$49k
$1.2m
$500k
$1m
$2m
Storm
Culverts
Storm
Constructed
Drainage
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
74
8.2 Asset Condition
Figure 43 summarizes the replacement cost-weighted condition of the Township's stormwater
management assets. Based on age data only, all of the stormwater network assets are in very
good condition.
Figure 43 Asset Condition: Stormwater Network Overall
Figure 44 provides a further breakdown by asset segment.
Figure 44 Asset Condition: Stormwater Network by Segment
Very Good,
$1,274,000
(100%)
$49k
$1.2m
0%
20%
40%
60%
80%
100%
Storm Culverts
Storm
Constructed
Drainage
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
75
8.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 45 illustrates that stormwater network assets are well within their estimated useful lives.
Figure 45 Estimated Useful Life vs. Asset Age: Stormwater Network
4
13
40
25
0
5
10
15
20
25
30
35
40
45
Storm Constructed Drainage
Storm Culverts
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
76
8.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
The following table outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Catch basins are cleaned annually and outlets are inspected regularly to
ensure unobstructed flow
With the installation of new stormwater infrastructure in 2021, Staff have
indicated that there will be a flushing and cleaning program implemented in
the near future.
All other maintenance activities are completed on a reactive basis when
operational issues are identified (e.g., blockages, backups)
Rehabilitation
Trenchless re-lining has the potential to reduce total lifecycle costs but
would require a formal condition assessment program to determine viability
Replacement
Without the availability of up-to-date condition assessment information
replacement activities are purely reactive in nature
Table 32 Lifecycle Management Strategy: Stormwater Network
It is worth noting that the Township is considering increasing their inspections to include ditch
assessments to ensure comprehensive infrastructure management.
8.5 Forecasted Long-Term Replacement Needs
Figure 46 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Township's stormwater network assets. This analysis was run until 2064 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Township's primary asset management system and asset register. The Township's average
annual requirements (red dotted line) total $33,000 per year for all assets in the stormwater
network. Although actual spending may fluctuate substantially from year to year, this figure is a
useful benchmark value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they arise.
The chart illustrates no backlog for stormwater assets. The largest replacement spike is
forecasted in 2060-2064 as drainage assets are anticipated to reach the end of their expected
design life. These projections and estimates are based on asset replacement costs and age
analysis. They are designed to provide a long-term, portfolio-level overview of capital needs and
should be used to support improved financial planning over several decades.
Township of Billings
Asset Management Plan 2025
77
Figure 46 Forecasted Capital Replacement Needs Stormwater Network 2025-2064
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
8.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, pipe material, pipe diameter and replacement costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Criteria, for further details on approach used to determine
asset risk ratings and classifications.
$33k
$0
$0
$0
$49k
$0
$0
$0
$0
$1.3m
$0
$200k
$400k
$600k
$800k
$1.0m
$1.2m
$1.4m
Backlog
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
Forecasted Capital Requirements
Storm Constructed Drainage
Storm Culverts
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
78
Figure 47 Risk Matrix: Stormwater Network
8.7 Levels of Service
The tables that follow summarize the Township's current levels of service with respect to
prescribed KPIs under Ontario Regulation 588/17 as well as any additional performance
measures that the Township has selected for this AMP.
8.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may
include map, of the user
groups or areas of the
municipality that are
protected from flooding,
including the extent of
protection provided by
the municipal storm
water network
The Main Street Stormwater Management (SWM)
System serving the in-hamlet portion of Main
Street (approx. 1 Km) in the Hamlet of Kagawong,
within the Township of Billings. It is a stormwater
system only (i.e., designed not to convey sanitary
sewage, combined sewage) within the Lower
Kagawong River and Mudge Bay (Lake Huron)
watersheds. The Municipal SWM System consists of
storm sewers, culverts, ditches, Stormwater
Management Facilities and outlets. This Approval
covers the entire Municipal Stormwater
Management System owned and operated by the
Township of Billings. This Approval does not cover
municipally, or Privately Owned Stormwater Works
on industrial, commercial, or institutional land.
Table 33 O. Reg. 588/17 Community Levels of Service: Stormwater Network
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$1,274,000
-
-
-
-
(100%)
(0%)
(0%)
(0%)
(0%)
Township of Billings
Asset Management Plan 2025
79
8.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of properties in municipality designed to be resilient to
a 100-year storm
0%7
% of the municipal stormwater management system
designed to be resilient to a 5-year storm
0%8
Affordable
Capital Reinvestment Rate
0%
Table 34 O. Reg. 588/17 Technical Levels of Service: Stormwater Network
7 Currently, the Township lacks studies or data to assess infrastructure resiliency. The township may
explore the feasibility of commissioning a study to obtain this information
8 Currently, the Township lacks studies or data to assess infrastructure resiliency. The township may
explore the feasibility of commissioning a study to obtain this information. Further staff knowledge
indicate that the 2021 stormwater infrastructure installation located on the Main Street in Kagawong has
been designed to be resilient to a 25-year storm.
Township of Billings
Asset Management Plan 2025
80
8.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for the stormwater network. Further PLOS analysis at the portfolio level can be found in section
4. Proposed Level of Service Analysis.
8.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$1,274,000
84%
5.89
2.56%
$18,000
Scenario 2
75%
Funded)
$1,274,000
79%
6.71
2.56%
$18,000
Scenario 3
(50%
Funded)
$1,274,000
58%
10.14
0.15%
$1,900
Table 35 Stormwater Network PLOS Scenarios
Note: This category includes only two individual assets, which limits the available data and may
result in a skewed analysis. The primary difference between the scenarios lies in the
municipality's ability to fund replacement events as they arise. At a 50% funding level, the
municipality would be unable to afford end-of-life replacements when needed, leading to
potential deferrals or reliance on debt financing or alternative external funding sources
In this analysis, Scenarios 1 and 2 results in the same capital reinvestment rate and average
annual investment. However, Scenario 2 shows a slight decline in average condition and a
marginal increase in risk. This outcome is attributed to the reallocation of surplus funds in
Scenario 2, which provides a higher initial budget. Despite this advantage, under the 75%
funding model, Scenario 2 takes slightly longer to reach a fully funded position for the required
investment. While the reinvestment rate remains the same, the extended timeline leads to a
modest deterioration in asset condition.
Township of Billings
Asset Management Plan 2025
81
8.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 48 Stormwater Network PLOS Scenario Condition Results
Township of Billings
Asset Management Plan 2025
82
8.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 49: Projected Risk Comparison
Township of Billings
Asset Management Plan 2025
83
8.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 20, for the stormwater network assets if the financial strategy for Scenario 2 is
implemented. The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit over
time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$25k
$25k
$25k
$25k
$25k
$25k
$25k
$25k
$25k
$25k
$25k
Projected
Capital
Spending
$6k
$7k
$8k
$11k
$12k
$13k
$14k
$15k
$16k
$17k
$25k
Funding
Deficit
$18k
$18k
$17k
$14k
$13k
$12k
$11k
$10k
$9k
$8k
-
Target
Reinvestment
Rate
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
Projected
Reinvestment
Rate
0.5%
0.6%
0.6%
0.8%
0.9%
1.0%
1.1%
1.1%
1.2%
1.3%
1.9%
Table 36 Stormwater Network 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
84
Non-Core Assets
Township of Billings
Asset Management Plan 2025
85
9. Buildings & Facilities
The Township's buildings portfolio includes a fire station, various administrative and public works
facilities, as well as a public library and recreational assets. The total current replacement of
buildings is estimated at approximately $20.8 million.
9.1 Inventory & Valuation
Table 37 summarizes the quantity and current replacement cost of all building and facility assets
available in the Municipality's asset register. The majority of the buildings and facilities assets
have been componentized through a recent assessment study. The quantity listed represents the
number of asset records currently available for each department.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Environmental
Services
1
Assets
$23,102
CPI
Fire & Emergency
1
Assets
$1,433,918
CPI
General Government
77
Assets
$2,802,115
User-Defined
Recreational and
Cultural Services
495
Assets
$13,756,474
User-Defined
Transportation
Services
71
Assets
$2,783,970
User-Defined
TOTAL
$20,799,579
Table 37 Detailed Asset Inventory: Buildings & Facilities
Figure 50 Portfolio Valuation: Buildings & Facilities
$23k
$1.4m
$2.8m
$2.8m
$13.8m
$5m
$10m
$15m
Environmental Services
Fire & Emergency
Transportation Services
General Government
Recreational and Cultural Services
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
86
9.2 Asset Condition
Figure 51 summarizes the replacement cost-weighted condition of the Township's buildings
portfolio. 81% of buildings assets are in fair or better condition; however, 19%, with a current
replacement cost of more than $3 million are in poor or worse condition. These assets may be
candidates for replacement in the short term; similarly, assets in fair condition may require
rehabilitation or replacement in the medium term and should be monitored for further
degradation in condition.
Figure 51 Asset Condition: Buildings & Facilities Overall
Figure 52 summarizes the condition of buildings by each department. Assets that belong to the
Environmental Services are in poor condition. Majority of assets across all other segments are in
fair or better condition.
Figure 52 Asset Condition: Buildings & Facilities by Segment
Very Poor,
$1,779,000
(9%)
Poor,
$2,124,000
(10%)
Fair,
$11,391,000
(55%)
Good,
$4,627,000
(22%)
Very Good,
$878,000
(4%)
$37k
$814k
$28k
$384k
$2.5m
$274k
$1.4m
$2.2m
$7.6m
$1.6m
$101k
$1.3m
$716k
$23k
$111k
$1.5m
$168k
0%
20%
40%
60%
80%
100%
Transportation
Services
Recreational and
Cultural Services
General
Government
Fire & Emergency
Environmental
Services
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
87
Buildings and facilities are unique in that they rarely require the need for replacement based
solely on condition. It is typical that, in addition to condition, other factors, such as capacity, will
impact on the asset's ability to serve the purpose originally intended.
9.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 53 Estimated Useful Life vs. Asset Age: Buildings & Facilities
Figure 53 illustrates that, on average, buildings assets are approaching their serviceable life
except for Fire & Emergency asset. This analysis presented primarily at the at the individual
element or component level based on a recent study. The fire hall and the landfill buildings were
not included within the study. Useful and meaningful age analysis for buildings is entirely
predicated on effective componentization.
26
2
54.7
37.5
38.5
40
40
57.6
49
60.3
0
10
20
30
40
50
60
70
Environmental
Services
Fire &
Emergency
General
Government
Recreational
and Cultural
Services
Transportation
Services
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
88
9.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
Table 38 outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Municipal buildings are subject to regular inspections to identify health &
safety requirements as well as structural deficiencies that require
additional attention.
Critical buildings have a detailed maintenance and rehabilitation schedule,
while the maintenance of other facilities are dealt with on a case-by-case
basis
Replacement
Assessments are completed strategically as buildings approach their end-
of-life to determine whether replacement or rehabilitation is appropriate
Table 38 Lifecycle Management Strategy: Buildings & Facilities
9.5 Forecasted Long-Term Replacement Needs
Figure 54 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Township's buildings portfolio. This analysis was run until 2064 to capture
at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Township's primary asset management system and asset register. The Township's average
annual requirements (red dotted line) total $492,000 per year for all buildings. Although actual
spending may fluctuate substantially from year to year, this figure is a useful benchmark value
for annual capital expenditure targets (or allocations to reserves) to ensure projects are not
deferred and replacement needs are met as they arise.
Replacement needs are forecasted to rise consistently over the next 40 years, reaching $4.8
million between 2060 and 2064. These projections and estimates are based on current asset
records, their replacement costs, and age analysis. They are designed to provide a long-term,
portfolio-level overview of capital needs and should be used to support improved financial
planning over several decades.
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements. In the case of buildings
and facilities, detailed componentization is necessary to develop more reliable lifecycle forecasts
that reflect the needs of individual elements and components.
Township of Billings
Asset Management Plan 2025
89
Figure 54:Forecasted Capital Replacement Needs: Buildings & Facilities 2025-2064
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
9.6 Risk Analysis
The risk matrix below is generated using available asset data, including service life remaining,
replacement costs, and building department. The risk ratings for assets without useful attribute
data were calculated using only age, service life remaining, and their replacement costs.
The matrix classifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Raing Criteria, for further details on approach used to determine
asset risk ratings and classifications.
$492k
$0
$1.3m
$2.2m
$690k
$1.9m
$3.9m
$1.7m
$823k
$4.8m
$0
$1.0m
$2.0m
$3.0m
$4.0m
$5.0m
$6.0m
Backlog
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
Forecasted Capital Requirements
Environmental Services
Fire & Emergency
General Government
Recreational and Cultural Services
Township of Billings
Asset Management Plan 2025
90
Figure 55 Risk Matrix: Buildings & Facilities
9.7 Levels of Service
The tables that follow summarize the Township's current levels of service. There are no
specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Township has selected for this AMP.
9.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Accessible and
Reliable
List of Facilities that meet
accessibility standards and
any work that has been
undertaken to achieve
alignment
The Township currently has projects
underway to improve accessibility standards.
Current projects include:
-The Old Mill and Heritage Centre:
automated doors and replacement of upper
deck
-Kagawong Park Centre: Automated doors,
upper and lower.
Safe &
Regulatory
Description of monthly and
annual facilities inspection
process
The Township conducts regular inspections of
all facilities in accordance with internal
policies through the Joint Health and Safety
Committee and in alignment with the Health
and Safety Act
Affordable
Description of the lifecycle
activities (maintenance,
rehabilitation, and
replacement) performed on
municipal facilities
Facility asset rehabilitation and replacement
decisions are predominantly based on
opportunities for accessibility improvement,
risk to occupant health and safety, legislative
compliance, and cost and construction
feasibility.
Sustainable
Description of the current
condition of municipal facilities
and the plans that are in place
to maintain or improve the
levels of service provided
The Township conducted a Building Condition
Assessment study in 2024. Currently 80% of
the facilities are considered in fair or better
condition. The Township acknowledges that
there are facilities that require significant
attention and are identifying and prioritizing
rehabilitations using these assessments as a
reference point.
Table 39 Community Levels of Service: Buildings & Facilities
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$7,233,000
$5,559,000
$3,381,000
$2,771,000
$1,856,000
(35%)
(27%)
(16%)
(13%)
(9%)
Township of Billings
Asset Management Plan 2025
91
9.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Sustainable
% of facilities that are in fair or better
condition
81%
% of facilities that are in poor or very poor
condition
19%
Affordable
Capital Reinvestment Rate - The measure of
funding allocated towards saving for future
capital investments. (Higher is typically better)
2.36% vs. 0.27%
Table 40 Technical Levels of Service: Buildings & Facilities
9.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that were analyzed
for buildings and facilities. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Level of Service Analysis.
9.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Capital
Reinvestment
Rate
Average Annual
Investment
Scenario 1
(100% Funded)
$20,800,000
48%
6.94
2.05%
$428,000
Scenario 2
(75% Funded)
$20,800,000
39%
9.22
1.63%
$340,000
Scenario 3
(50% Funded)
$20,800,000
31%
9.96
1.14%
$237,000
Table 41 Buildings & Facilities PLOS Scenarios
Note: These scenarios include all current Buildings & Facilities assets. It has been noted the
named facility "91 Main St (The Gym) is in poor condition. Indications are that this building may
be considered for decommissioning. If the current replacement cost and average annual
requirement for this specific asset were removed, it would decrease the overall average annual
requirement of this asset category by $21,000 and the replacement cost reduced by $775,000.
Township of Billings
Asset Management Plan 2025
92
9.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 56: PLOS Condition Comparison
Township of Billings
Asset Management Plan 2025
93
9.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 57: Projection Risk Comparison
Township of Billings
Asset Management Plan 2025
94
9.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 20, for the buildings and facilities assets if the financial strategy for Scenario 2 is
implemented. The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit over
time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$369k $369k $369k
$369k
$369k
$369k
$369k
$369k
$369k
$369k
$369k
Projected
Capital
Spending
$135k
$146k
$158k
$192k
$204k
$216k
$228k
$240k
$252k
$265k
$369k
Funding
Deficit
$234k
$223k
$211k
$177k
$165k
$153k
$141k
$129k
$117k
$104k
-
Target
Reinvestment
Rate
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
1.8%
Projected
Reinvestment
Rate
0.7%
0.7%
0.8%
0.9%
1.0%
1.0%
1.1%
1.2%
1.2%
1.3%
1.8%
Table 42 Buildings 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
95
10. Land Improvements
The current Land Improvements inventory is comprised of 4 assets that include parking lots and
hard surface assets.
10.1 Inventory & Valuation
Table 43 summarizes the quantity and current replacement cost of all land improvement assets
available in the Township's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Environmental Services
2
Assets
$116,154
CPI
Transportation Services
2
Assets
$30,233
CPI
TOTAL
$146,387
Table 43 Detailed Asset Inventory: Land Improvements
Figure 58 Portfolio Valuation: Land Improvements
10.2 Asset Condition
Figure 59 summarizes the replacement cost-weighted condition of the Municipality's land
improvement portfolio. Based entirely on age data, all assets are in good or better condition.
$30k
$116k
$20k
$40k
$60k
$80k
$100k
$120k
$140k
Transportation Services
Environmental Services
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
96
Figure 59 Asset Condition: Land Improvements Overall
Figure 60 summarizes the age-based condition of land improvements by each department.
Figure 60 Asset Condition: Land Improvements by Segment
10.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
Good, $16,000
(11%)
Very Good,
$130,000
(89%)
$20k
$110k
$10k
$7k
0%
20%
40%
60%
80%
100%
Transportation
Services
Environmental
Services
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
97
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 61 Estimated Useful Life vs. Asset Age: Land Improvements
Figure 61 illustrates that, on average, most land improvement assets are in the moderate stages
of their expected life.
10.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
Table 44 outlines the Township's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Maintenance
Maintenance activities are completed on a reactive basis when
operational issues are identified, through complaints, service requests,
or ad-hoc inspections
Rehabilitation /
Replacement
Without the availability of up-to-date condition assessment information
replacement activities are purely reactive in nature
Inspections
Inspections are conducted on an ad-hoc basis
Table 44 Lifecycle Management Strategy: Land Improvements
21.6
11
38.9
23.4
0
10
20
30
40
50
Environmental Services
Transportation Services
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
98
10.5 Forecasted Long-Term Replacement Needs
Figure 62 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Township's land improvements portfolio. This analysis was run until 2044
to capture at least one iteration of replacement for the longest-lived asset in Citywide Assets,
the Municipality's primary asset management system and asset register. The Township's average
annual requirements (red dotted line) total $4,000 per year for all land improvements. Although
actual spending may fluctuate substantially from year to year, this figure is a useful benchmark
value for annual capital expenditure targets (or allocations to reserves) to ensure projects are
not deferred and replacement needs are met as they arise.
Replacement needs are forecasted to remain relatively minimal over the next 20-year time
horizon, rising at $130,000 between 2040 and 2044 as assets reach the end of their useful life.
These projections and estimates are based on asset replacement costs and age analysis. They
are designed to provide a long-term, portfolio-level overview of capital needs and should be
used to support improved financial planning over several decades.
Figure 62 Forecasted Capital Replacement Needs: Land Improvements 2024-2053
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
$4k
$0
$0
$16k
$0
$130k
$0
$20k
$40k
$60k
$80k
$100k
$120k
$140k
Backlog
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2044
Forecasted Capital
Requirements
Environmental Services
Transportation Services
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
99
10.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, department and replacement costs. The risk ratings for assets without useful
attribute data were calculated using only condition, service life remaining, and their replacement
costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
Figure 63 Risk Matrix: Land Improvements
10.7 Levels of Service
The tables that follow summarize the Township's current levels of service. There are no
specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Township has selected for this AMP.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$130,000
$16,000
-
-
-
(89%)
(11%)
(0%)
(0%)
(0%)
Township of Billings
Asset Management Plan 2025
100
10.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Accessible &
Reliable
Description, which may include
maps, of the outdoor recreational
facilities that the municipality
operates and maintains
Municipal trails are not maintained on a
structured schedule and do not meet
accessibility standards
Safe &
Regulatory
Description of the park inspection
process and timelines for
inspection
Parks are inspected on receipt of a
complaint. There is an annual inspection,
and garbage pickup two or three times
per week during summer that provides
cursory inspections
Affordable
Description of the lifecycle
activities (maintenance,
rehabilitation and replacement)
performed on parks and recreation
assets
As required, no regular schedule,
upgrades are usually funding based
Sustainable
Description of the current condition
of parks and the plans that are in
place to maintain or improved the
provided level of service
-
Fair Condition
-
Walking bridge was replaced in
2023
Table 45 Community Levels of Service: Land Improvements
10.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Accessible &
Reliable
Square meters of park area per resident
56.87%
% park area in the Township
0.02%
Affordable
Capital Reinvestment Rate - The measure of funding
allocated towards saving for future capital investments.
(Higher is typically better)
0%
Table 46 Technical Levels of Service: Land Improvements
The levels of service metrics listed in the above tables refer to park areas and trails that are
present and maintained within the Township. However these assets are not currently reflected
within the asset listing and therefore not captured within the overall analysis of this asset
management plan. These assets will be reviewed, captured and included within future
improvements and revisions of the asset management plan.
Township of Billings
Asset Management Plan 2025
101
10.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for land improvements. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Level of Service Analysis.
10.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average Condition
Average
Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$146,000
44%
10.19
2.0%
$3,000
Scenario 2
(75%
Funded)
$146,000
35%
11.35
0.47%
$700
Scenario 3
(50%
Funded)
Same as Scenario 2
Table 47 Land Improvements PLOS Scenarios
Township of Billings
Asset Management Plan 2025
102
10.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 64 Land Improvements PLOS Scenario Condition
Township of Billings
Asset Management Plan 2025
103
10.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 65: Projected Risk Comparison
Township of Billings
Asset Management Plan 2025
104
10.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years
and shows the target reached in year 10 for the buildings and facilities assets if the financial strategy for Scenario 2 is
implemented. The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit over
time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$3k
$3k
$3k
$3k
$3k
$3k
$3k
$3k
$3k
$3k
$3k
Projected
Capital
Spending
-
-
-
$1k
$1k
$2k
$2k
$2k
$2k
$2k
$3k
Funding
Deficit
$2k
$2k
$2k
$2k
$2k
$1k
$1k
$1k
$1k
-
-
Target
Reinvestment
Rate
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
Projected
Reinvestment
Rate
0.2%
0.3%
0.3%
0.4%
0.4%
0.5%
0.5%
0.5%
0.6%
0.6%
0.6%
Table 48 Land Improvements 10-Year PLOS Financial Projections
The land improvement assets carry a relatively small value, and so in this scenario analysis, the target funding level is achieved
in year 10. As there is currently no budget allocated to these assets, the first 3 years of increased spending are less than $1
thousand dollars and therefore do not display a value until year 4.
Township of Billings
Asset Management Plan 2025
105
11. Fleet
The Township's Fleet inventory is comprised of 15 assets. Fleet assets allow staff to efficiently
deliver municipal services and personnel. Municipal fleet assets are used to support several
service areas, some of which include the use of:
-
Fire rescue and emergency vehicles to support emergency services, and
-
Light-duty and heavy-duty vehicles to support the maintenance of municipal infrastructure
and address service requests.
11.1 Inventory & Valuation
Table 49 summarizes the quantity and current replacement cost of all vehicle assets available in
the Township's asset register. Public works and the fire department account for the largest share
of the Fleet portfolio.
Segment
Quantity
Unit of Measure
Replacement Cost
Primary RC
Method
Environmental
Services
1
Assets
$8,097
CPI
Fire &
Emergency
2
Assets
$364,524
CPI
Transportation
Services
12
Assets
$1,584,064
CPI
TOTAL
15
$1,956,685
Table 49 Detailed Asset Inventory: Fleet
$8k
$365k
$1.6m
$500k
$1m
$2m
$2m
Environmental Services
Fire & Emergency
Transportation Services
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
106
Figure 66 Portfolio Valuation: Fleet
11.2 Asset Condition
Figure 67 summarizes the replacement cost-weighted condition of the Township's Fleet portfolio.
Based primarily on age-based data, 90% of Fleet are in fair or better condition, with the remaining
10% are in poor or worse condition. These assets may be candidates for replacement in the short
term; similarly, assets in fair condition may require rehabilitation or replacement in the medium
term and should be monitored for further degradation in condition.
Figure 67 Asset Condition: Fleet Overall
Figure 68 summarizes the condition of Fleet by each department. The majority of Fleet assets
across all segments are in fair or better condition.
Figure 68 Asset Condition: Fleet by Segment
Very Poor,
$146,000
(7%)
Poor, $46,000
(2%)
Fair,
$318,000
(16%)
Good,
$933,000
(48%)
Very Good,
$513,000
(26%)
$505k
$8k
$933k
$318k
$46k
$146k
0%
20%
40%
60%
80%
100%
Transportation
Services
Fire &
Emergency
Environmental
Services
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
107
11.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 69 Estimated Useful Life vs. Asset Age: Fleet
Figure 69 illustrates that, on average, most Fleet are in moderate stages of their expected life.
11.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
The following describes the municipality's current approach:
-
Staff complete regular visual inspections of fleet assets to ensure they are in state of
adequate repair prior to operation
-
The mileage of vehicles is used as a proxy to determine remaining useful life and relative
vehicle condition
7
13.3
10.7
15
15
16.2
0
2
4
6
8
10
12
14
16
18
Environmental Services
Fire & Emergency
Transportation Services
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
108
-
Condition assessments are conducted on Fire & Emergency fleet assets in accordance with
regulations for health and safety regulations including National Fire Protection Association
(NFPA) codes and standards for fire service-related fleet assets
11.5 Forecasted Long-Term Replacement Needs
Figure 70 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Township's Fleet portfolio. This analysis was run until 2049 to capture at
least one iteration of replacement for the longest-lived asset in Citywide Assets, the Township's
primary asset management system and asset register. The Township's average annual
requirements (red dotted line) total $124,000 per year for all Fleet. Although actual spending
may fluctuate substantially from year to year, this figure is a useful benchmark value for annual
capital expenditure targets (or allocations to reserves) to ensure projects are not deferred and
replacement needs are met as they arise.
Replacement needs are forecasted to peak within the next 5 years, and consistent throughout
the rest of the forecast period before spiking again from 2045-2049. These projections and
estimates are based on asset replacement costs and age analysis. They are designed to provide
a long-term, portfolio-level overview of capital needs and should be used to support improved
financial planning over several decades.
Figure 70 Forecasted Capital Replacement Needs: Fleet 2025-2049
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
$124k
$891k
$510k
$410k
$661k
$886k
$0
$100k
$200k
$300k
$400k
$500k
$600k
$700k
$800k
$900k
$1m
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2044
2045 - 2049
Forecasted Capital Requirements
Environmental Services
Fire & Emergency
Transportation Services
Annual Requirement
Total
Township of Billings
Asset Management Plan 2025
109
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
11.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, and department or service area. The risk ratings for assets
without useful attribute data were calculated using only condition, service life remaining, and
their replacement costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the municipality may consider integrating relevant information that improves
confidence in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Criteria, for further details on approach used to determine
asset risk ratings and classifications.
Figure 71 Risk Matrix: Fleet
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$513,000
$61,000
$150,000
$794,000
$438,000
(26%)
(3%)
(8%)
(41%)
(22%)
Township of Billings
Asset Management Plan 2025
110
11.7 Levels of Service
The tables that follow summarize the Township's current levels of service. There are no
specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Township has selected for this AMP.
11.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description of the routine
maintenance and checkup
procedures
Routine and regulated inspections are carried out
as required. Where deficiencies are identified,
repair activities are planned and completed
Sustainable
List of day-to-day vehicles
in operation and the
replacement values of
those assets
-
3/4 GMC Truck 2015
-
1/2 Ton 2020 Chevrolet Silverado
-
2021 International Plow Truck
-
2016 Western Star Plow Truck
-
2021 International Plow truck
Table 50 Community Levels of Service: Fleet
11.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Sustainable
% of fleet that are in good or very good condition
74%
% of facilities that are in poor or very poor condition
10%
% of fleet utilization
100%
% of fleet that is idle
0%
Affordable
Capital Reinvestment Rate
4.09%
Table 51 Technical Levels of Service: Fleet
Township of Billings
Asset Management Plan 2025
111
11.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that were analyzed
for Fleet. Further PLOS analysis at the portfolio level can be found in section 4. Proposed Level
of Service Analysis.
11.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$1,957,000
77%
6.4
7%
$136,000
Scenario 2
(75%
Funded)
$1,957,000
52%
10.22
4.5%
$88,000
Scenario 3
(50%
Funded)
$1,957,000
36%
13.11
3.0%
$60,000
Table 52 Fleet PLOS Scenario Descriptions
Township of Billings
Asset Management Plan 2025
112
11.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 72 Fleet PLOS Scenario Condition Results
Township of Billings
Asset Management Plan 2025
113
11.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 73: Projected Risk Comparison
Township of Billings
Asset Management Plan 2025
114
11.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years. In
year 16 the target spending level and investment rate will be reached for the fleet assets if the financial strategy for Scenario 2
is implemented. The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit
over time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$93k
$93k
$93k
$93k
$93k
$93k
$93k
$93k
$93k
$93k
$93k
Projected
Capital
Spending
$83k
$84k
$84k
$86k
$86k
$87k
$87k
$88k
$88k
$89k
$93k
Funding
Deficit
$10k
$9k
$9k
$7k
$7k
$6k
$6k
$5k
$5k
$4k
-
Target
Reinvestment
Rate
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
4.8%
Projected
Reinvestment
Rate
4.3%
4.3%
4.3%
4.4%
4.4%
4.4%
4.5%
4.5%
4.5%
4.5%
4.8%
Table 53 Fleet 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
115
12. Machinery & Equipment
The Township's Machinery & Equipment inventory is comprised of 8 unique assets. In order to
maintain the high quality of public infrastructure and support the delivery of core and non-core
services, Municipal staff own and employ machinery and equipment assets which include:
-
emergency services equipment to support first responders
-
public works equipment
-
parks and playground equipment
12.1 Inventory & Valuation
Table 54 summarizes the quantity and current replacement cost of all machinery & equipment
assets available in the Township's asset register.
Segment
Quantity
Unit of
Measure
Replacement Cost Primary RC
Method
Fire & Emergency
2
Assets
$34,634
CPI
General Government
1
Assets
$32,040
CPI
Recreational and
Cultural Services
3
Assets
$234,540
CPI
Transportation Services
2
Assets
$28,574
CPI
TOTAL
8
$329,788
Table 54 Detailed Asset Inventory: Machinery & Equipment
Figure 74 Portfolio Valuation: Machinery & Equipment
$29k
$32k
$35k
$235k
$50k
$100k
$150k
$200k
$250k
Transportation
Services
General
Government
Fire & Emergency
Recreational and
Cultural Services
Replacement Cost by Segment
Township of Billings
Asset Management Plan 2025
116
12.2 Asset Condition
Figure 75 summarizes the replacement cost-weighted condition of the Township's machinery and
equipment portfolio. Based on a combination of assessed conditions and age data, 89% of assets
are in fair or better condition; the remaining 11% are in poor or worse condition. These assets
may be candidates for replacement in the short term; similarly, assets in fair condition may
require rehabilitation or replacement in the medium term and should be monitored for further
degradation in condition.
Figure 75 Asset Condition: Machinery & Equipment Overall
Figure 76 summarizes the age-based condition of machinery & equipment by each department.
The majority of assets that are in poor or worse condition are concentrated primarily
transportation, and the fire & emergency.
Figure 76 Asset Condition: Machinery & Equipment by Segment
Very Poor,
$16,000
(5%)
Poor,
$19,000
(6%)
Fair,
$45,000
(14%)
Good,
$250,000
(76%)
$10k
$208k
$32k
$27k
$18k
$19k
$16k
0%
20%
40%
60%
80%
100%
Transportation
Services
Recreational and
Cultural Services
General
Government
Fire &
Emergency
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Billings
Asset Management Plan 2025
117
12.3 Age Profile
An asset's age profile compares two values: its weighted average age and its weighted average
estimated useful life (EUL). Both measures are weighted by replacement cost to better reflect
the overall investment at risk rather than treating all assets equally. The EUL represents the
period during which an asset can reliably perform its intended function and provide value to
users. As assets near the end of their design life, performance typically declines, often at an
accelerating rate.
When combined with condition data, age profiles provide a more complete picture of
infrastructure health. They help identify candidates for more detailed condition assessments,
support the selection of effective lifecycle strategies, and improve long-term replacement
planning.
Figure 77 illustrates that Fire & Emergency services assets are beyond their expected lives, and
rest of the assets are at a moderate stage of their estimated useful lives.
Figure 77 Estimated Useful Life vs. Asset Age: Machinery & Equipment
12.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to establish
a lifecycle management strategy to proactively manage asset deterioration. The following
describes the municipality's current approach:
-
Staff complete regular visual inspections of machinery & equipment to ensure they are in a
state of adequate repair
-
Condition assessments are conducted on Fire & Emergency assets in accordance with health
and safety regulations including National Fire Protection Association (NFPA) codes and
standards for fire service-related assets
10.9
13.0
10.9
11.7
10.0
20.0
15.2
13.5
0
5
10
15
20
25
Fire & Emergency
General
Government
Recreational and
Cultural Services
Transportation
Services
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Billings
Asset Management Plan 2025
118
-
Staff conduct formal inspections of outdoor play space, fixed play structures and surfacing
in accordance with CAN/CSA-Z614 and required as per O. Reg. 137/15
12.5 Forecasted Long-Term Replacement Needs
Figure 78 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Township's machinery and equipment portfolio. This analysis was run until
2034 to capture at least one iteration of replacement for the longest-lived asset in Citywide
Assets, the Township's primary asset management system and asset register. The Township's
average annual requirements (red dotted line) total $25,000 per year for all machinery and
equipment. Although actual spending may fluctuate substantially from year to year, this figure is
a useful benchmark value for annual capital expenditure targets (or allocations to reserves) to
ensure projects are not deferred and replacement needs are met as they arise.
Figure 78 Forecasted Capital Replacement Needs: Machinery & Equipment 2025-2034
Replacement needs are forecasted to remain consistent over the next 10-year horizon. These
projections and estimates are based on asset replacement costs and age analysis. They are
designed to provide a long-term, portfolio-level overview of capital needs and should be used to
support improved financial planning over several decades.
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A detailed 10-year capital replacement forecast can be found in Appendix B - 10-Year Capital
Requirements.
$25k
$16k
$150k
$164k
$0
$20k
$40k
$60k
$80k
$100k
$120k
$140k
$160k
$180k
Backlog
2025 - 2029
2030 - 2034
Forecasted Capital Requirements
Fire & Emergency
General Government
Recreational and Cultural Services
Transportation Services
Township of Billings
Asset Management Plan 2025
119
12.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, department, and replacement costs. The risk ratings for assets without useful
attribute data were calculated using only condition, service life remaining, and their replacement
costs.
The matrix stratifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Township may consider integrating relevant information that improves confidence
in the criteria used to assess asset risk and criticality.
These risk models have been built into the Township's Asset Management Database (Citywide
Assets). See Appendix C - Risk Rating Criteria, for further details on approach used to determine
asset risk ratings and classifications.
Figure 79 Risk Matrix: Machinery & Equipment
12.7 Levels of Service
The tables that follow summarize the Township's current levels of service. There are no
specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the
KPIs below represent performance measures that the Township has selected for this AMP.
12.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Safe &
Reliable
Description of the equipment inspection
process and any licensing requirements
for operators
Operators are trained, properly
licensed, inspection processes are in
place for all machinery and
equipment
Sustainable
Description of the current condition of
equipment and the plans that are in
place to maintain or improve the
provided level of service.
Machinery & Equipment assets are in
good to fair condition and the
Township is going to maintain the
current levels of service
Table 55 Community Levels of Service: Machinery & Equipment
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$42,000
$208,000
$27,000
$53,000
-
(13%)
(63%)
(8%)
(16%)
(0%)
Township of Billings
Asset Management Plan 2025
120
12.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Safe &
Reliable
% of machinery & equipment assets that are in good or
very good condition
75%
% of machinery & equipment assets that are in poor or
very poor condition
11%
Affordable
Capital Reinvestment Rate
0.0%
Table 56 Technical Levels of Service: Machinery & Equipment
12.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Township's ability to afford the PLOS.
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for machinery and equipment. Further PLOS analysis at the portfolio level can be found in
section 4. Proposed Level of Service Analysis.
12.8.1
PLOS Scenarios Analyzed
The scenario for Machinery & Equipment was considered over a 50 year time period to reflect
the short lifecycle of these assets.
Scenario
Replacement
Cost
Average
Condition
Average
Risk
Capital
Reinvestment
Rate
Average
Annual
Investment
Scenario 1
(100%
Funded)
$330,000
53%
7.85
6.0%
$20,000
Scenario 2
(75%
Funded)
$330,000
38%
9.70
4.5%
$15,000
Scenario 3
(50%
Funded)
$330,000
30%
10.73
3.3%
$11,000
Table 57 Machinery & Equipment PLOS Scenarios
Township of Billings
Asset Management Plan 2025
121
12.8.2
Projected Condition Comparison
The graph below presents and compares the projected condition for each scenario analyzed.
Figure 80 Machinery & Equipment PLOS Scenario Condition Results
Township of Billings
Asset Management Plan 2025
122
12.8.3
Projected Risk Comparison
The graph below presents and compares the projected risk impact for each scenario analyzed.
Figure 81: Projected Risk Comparison
Township of Billings
Asset Management Plan 2025
123
12.8.4
10-Year PLOS Financial Projections
As outlined in Section 4. Proposed Levels of Service Analysis, the Township of Billings selected Scenario 2 as their preferred
proposed levels of service. The main objective is to increase spending gradually to reach a more sustainable funding level to
manage the Township's current inventory of assets. The following table outlines the funding trajectory over the next 10 years. In
year 17 the target spending level and investment rate will be reached for the fleet assets if the financial strategy for Scenario 2
is implemented. The table clearly shows the direct correlation between target spending and reducing the infrastructure deficit
over time.
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2045
Targeted
Capital
Spending
$19k
$19k
$19k
$19k
$19k
$19k
$19k
$19k
$19k
$19k
$19k
Projected
Capital
Spending
$5k
$5k
$6k
$8k
$9k
$10k
$10k
$11k
$12k
$13k
$19k
Funding
Deficit
$14k
$13k
$13k
$11k
$10k
$9k
$8k
$8k
$7k
$6k
-
Target
Reinvestment
Rate
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
12.8%
Projected
Reinvestment
Rate
3.3%
3.7%
4.2%
5.6%
6.1%
6.6%
7.1%
7.6%
8.1%
8.6%
12.8%
Table 58 Machinery & Equipment 10-Year PLOS Financial Projections
Township of Billings
Asset Management Plan 2025
124
Strategies
Growth
Financial Strategy
Recommendations
Township of Billings
Asset Management Plan 2025
125
13. Growth
The demand for infrastructure and services will change over time based on a combination of
internal and external factors. Understanding the key drivers of growth and demand will allow the
Township to plan for new infrastructure more effectively, and the upgrade or disposal of existing
infrastructure. Increases or decreases in demand can affect what assets are needed and what
level of service meets the needs of the community.
13.1 Township of Billings Strategic Plan (2024 - 2028)
The Township outlines a vision for growth that carefully balances development with preservation.
A key priority is to guide the community's growth while maintaining its special rural character,
rich history, and traditions. The plan commits to preserving the natural environment, including
its lakes, forests, and hills, viewing these assets as crucial to the quality of life and as attractions
for visitors. This approach frames growth not just as expansion, but as sustainable development
that honors the township's heritage and protects its natural beauty for future generations. The
overall goal is to achieve a vibrant, sustainable, and inclusive community.
To facilitate this managed growth, the plan details several strategic actions. It aims to foster
economic growth and development by actively exploring new funding opportunities. The
township plans to support its community by making Billings an employer of choice to attract and
retain talent and by researching options for senior support services, such as independent living
facilities. Essential to this growth is the management of infrastructure to meet long-term needs,
which includes prioritizing projects based on critical needs and proactively planning for future
requirements. Furthermore, the township will embrace modern technology to improve digital
connectivity and enhance services for its citizens.
13.2 District of Manitoulin Official Plan (October 2018)
The District of Manitoulin adopted the Official Plan with modifications in October 2018 and
replaces the last provincially approved Official Plan of 1979.
The Official Plan provides the essential tools to direct future growth, development and change
within the Planning Area and to create more sustainable communities for its residents. It
responds to future uncertainties through clear and resilient principles and policies.
The Plan plays a number of essential roles in the future planning of the District. Specifically, the
Plan:
-
Establishes the basic land use framework for all land within the jurisdiction of the District.
-
Sets out a 20-year growth management regime for the District through to 2036.
-
Provides for the coordination of land use planning and infrastructure deployment to ensure
that the District can accommodate anticipated population levels over the 20-year planning
horizon to 2036.
Township of Billings
Asset Management Plan 2025
126
-
Sets out policies to encourage economic development in the District, including policies for
employment-based land uses, with a view to encourage synergies and collaboration
between compatible businesses.
-
Guides private investment through land use and development policies to ensure efficient
development approvals and administrative processes that strive to achieve the District's
goals through a number of objectives.
-
Provides policies to improve the sustainability of the District, to ensure the quality of life
and to secure the health, safety, convenience and welfare for the present and future
inhabitants of the District.
-
Responds to provincial policies, statements and guidelines that affect the District and
appropriately incorporates them in the Official Plan.
The Plan is intended to guide Councils and the Planning Board in the consideration of their
responsibilities and provides direction and certainty to the citizens and business of the District of
Manitoulin.
The following table outlines the growth projections as indicated in the Plan.
Year
Population
Dwellings
Employment
2011
8,350
3,710
3,370
2016
8,470
3,760
3,350
2021
8,610
3,820
3,290
2026
8,730
3,870
3,220
2031
8,810
3,910
3,050
2036
8,880
3,940
2,950
The Official Plan projects the population of the District to grow at a slow rate and there is an
expected decrease of the working population (ages 15 to 69 years) in 2036.
13.3 Impact of Growth on Lifecycle Activities
Planning for forecasted population growth may require the expansion of existing infrastructure
and services. As growth-related assets are constructed or acquired, they should be integrated
into the Township's AMP. While the addition of residential units will add to the existing
assessment base and offset some of the costs associated with growth, the Town will need to
review the lifecycle costs of growth-related infrastructure. These costs should be considered in
long-term funding strategies that are designed to, at a minimum, maintain the current level of
service.
For the near- to mid-term, the projected population growth in Billings is not expected to
significantly impact the current portfolio of assets required by the Township to maintain
acceptable service levels.
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14. Financial Strategy
For an asset management plan to be effective and meaningful, it must be integrated with
financial planning and long-term budgeting. The development of a comprehensive financial plan
will allow the Township of Billings to identify the financial resources required for sustainable
asset management based on existing asset inventories, desired levels of service, and projected
growth requirements.
This report develops such a financial plan by presenting several scenarios for consideration and
culminating with final recommendations. As outlined below, the scenarios presented model
different combinations of the following components:
1. The financial requirements for:
a. Existing assets
b. Existing service levels
c. Requirements of contemplated changes in service levels (refer to Section 4.
Proposed Levels of Service Analysis)
d. Requirements of anticipated growth (none identified for this plan)
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. Canada Community-Building Fund (CCBF)
b. Annual grants
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Note: Periodic grants are normally not included due to Provincial requirements for firm
commitments. However, if moving a specific project forward is wholly dependent on receiving a
one-time grant, the replacement cost included in the financial strategy is the net of such grant
being received.
If the financial plan component results in a funding shortfall, the Province requires the inclusion
of a specific plan as to how the impact of the shortfall will be managed. In determining the
legitimacy of a funding shortfall, the Province may evaluate a Township's approach to the
following:
1. In order to reduce financial requirements, consideration has been given to revising service
levels downward.
2. All asset management and financial strategies have been considered. For example:
a. If a zero-debt policy is in place, is it warranted? If not the use of debt should be
considered.
b. Do user fees reflect the cost of the applicable service? If not, increased user fees
should be considered.
14.1 Annual Requirements & Capital Funding
14.1.1
Annual Requirements
The annual requirements represent the amount the Township should allocate annually to each
asset category to meet replacement needs as they arise, prevent infrastructure backlogs and
achieve long-term sustainability. In total, the Township would need to allocate approximately
$2.5 million annually to address all capital requirements for the assets included in this AMP. As
discussed in Section 4. Proposed Levels of Service Analysis, the Township of Billings has selected
a funding scenario where the target investment level is 75% of 'full funding', which requires an
Township of Billings
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129
annual capital investment of $1.8 million.
Figure 82 Annual Capital Funding Requirements by Asset Category
For most asset categories the annual requirement has been calculated based on a "replacement
only" scenario, in which capital costs are only incurred at the construction and replacement of
each asset.
However, for the Road Network, lifecycle management strategies have been developed to
identify capital costs that are realized through strategic rehabilitation and renewal of the
Township's roads. The development of these strategies allows for a comparison of potential cost
avoidance if the strategies were to be implemented. The following table compares two scenarios
for the Road Network:
1. Replacement Only Scenario: Based on the assumption that assets deteriorate and -
without regularly scheduled maintenance and rehabilitation - are replaced at the end of
their service life.
2. Lifecycle Strategy Scenario: Based on the assumption that lifecycle activities are
performed at strategic intervals to extend the service life of assets until replacement is
required.
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Annual
Requirements
(Replacement Only)
Annual
Requirements
(Lifecycle Strategy)
Difference
Road Network
Lifecycle - Full
Funding
$2,239,000
$1,126,000
$1,113,000
Road Network
Lifecycle - Proposed
LOS (75% Funding)
$1,679,250
$844,500
$834,750
Table 59 Lifecycle Strategies Annual Savings
The implementation of a proactive lifecycle strategy for roads leads to potential annual cost
avoidance of $1.1 million for the road network in ideal funding circumstances. In the proposed
75% funding modelling, this cost avoidance is reduced to $835 thousand. As the lifecycle
strategy scenario represents the lowest cost option available to the Township, we have used
these annual requirements in the development of the financial strategy.
14.1.2
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the Township is committing
approximately $706 thousand towards capital projects per year. Given the proposed LOS of 75%
funding requiring an annual capital investment of $1.8 million, there is currently a funding gap of
$1.1 million annually.
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131
Figure 83 75% Annual Requirements vs. Capital Funding Available
14.2 Funding Objective
We have developed a scenario that would enable the Township to achieve 75% of full funding
within 20 years for the following assets:
1. Tax Funded Assets: Road Network, Bridges & Culverts, Storm Sewer System, Buildings
& Facilities, Land Improvements, Machinery & Equipment, Fleet
2. Rate-Funded Assets: Water Services
For each scenario developed we have included strategies, where applicable, regarding the use of
cost containment and funding opportunities.
$80k
$316k
$80k
$56k
$101k
$154k
$3k
$19k
$25k
$82k
$93k
$369k
$406k
$845k
$200k
$400k
$600k
$800k
$1m
Land Improvements
Machinery & Equipment
Stormwater Network
Bridges and Culverts
Fleet
Buildings & Facilities
Water Network
Road Network
Average Annual Capital Requirements vs. Actual Capital Reinvestment by
Category
75% Average Annual Requirement
Actual Reinvestment Rate
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14.3 Financial Profile: Tax Funded Assets
14.3.1
Current Funding Position
The following tables show, by asset category, the average annual asset investment requirements
(AAR), current funding positions, and funding increases required to achieve the proposed level of
service of 75% funding for assets funded by taxes.
Asset
Category
100%
AAR
75%
AAR
Annual Funding Available
Annual
Deficit
Taxes
CCBF
OCIF
Total
Available
Road Network
1,126,000
844,500
-
41,836
111,271
153,557
690,943
Stormwater
Network
33,000
24,750
-
-
-
-
24,750
Bridges &
Culverts
109,000
81,750
315,802
-
-
315,802
-234,052
Buildings &
Facilities
492,000
369,000
55,500
-
-
55,500
313,500
Machinery &
Equipment
25,000
18,750
-
-
-
-
18,750
Land
Improvements
4,000
3,000
-
-
-
-
3,000
Fleet
124,000
93,000
80,000
-
-
80,000
13,000
Total
1,913,000
1,434,750
451,302
41,836
111,271
604,859
829,891
Table 60 Annual Available Funding for Tax Funded Assets
The average annual investment requirement for the above categories is $1.4 million to meet the
75% funding target. The annual revenue currently allocated to these assets for capital purposes
is $605 thousand leaving an annual deficit of $830 thousand. Put differently, these infrastructure
categories are currently funded at 32% of their long-term/ideal requirements, while targeting
75% within 20 years (currently 42% funded).
14.3.2 Proposed Levels of Service Funding Requirements
In 2024, the Township had budgeted annual tax revenues of approximately $2.1 million. As
illustrated in the following table, without consideration of any other sources of revenue or cost
containment strategies, increasing funding would require the following tax change over time:
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133
Asset Category
Tax Change Required for
Full Funding
Tax Change Required for
75% Funding
(Proposed LOS)
Road Network
44.6%
31.7%
Stormwater Network
1.5%
1.1%
Bridges & Culverts
No change Required
No change required
Buildings & Facilities
20.0%
14.4%
Machinery & Equipment
1.1%
0.9%
Land Improvements
0.2%
0.1%
Fleet
2.0%
0.6%
Total
59.9%
38.1%
Table 61 Tax Increase Requirements for Proposed Levels of Service
The following changes in costs and/or revenues over the next number of years should also be
considered in the financial strategy:
a) Billings' debt payments for these asset categories will be decreasing by $93,000 over the
next 5 years.
Our scenario modeling includes capturing the above changes and allocating them to the
infrastructure deficit outlined above. The table below outlines this concept and presents several
options:
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
829,891
829,891
829,891
829,891
Change in Debt Costs
-92,641
-92,641
-92,641
-92,641
Resulting Infrastructure
Deficit:
737,250
737,250
737,250
737,250
Tax Increase Required
33.8%
33.8%
33.8%
33.8%
Annually:
6.0%
3.0%
2.0%
1.5%
Table 62 Tax Increase Options 5-20 Years
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14.3.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 20-year option. This involves 75% of
full funding being achieved over 20 years by:
a) increasing tax revenues by 1.5% each year for the next 20 years solely for the purpose of
phasing in the target of 75% of full funding to the asset categories covered in this section
of the AMP.
b) allocating the current CCBF and OCIF revenue as outlined previously.
c) reallocating appropriate revenue from categories in a surplus position to those in a deficit
position.
d) increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will most likely be
available during the phase-in period. By Provincial AMP rules, this periodic funding cannot
be incorporated into an AMP unless there are firm commitments in place. We have
included OCIF formula-based funding, if applicable, since this funding is a multi-year
commitment9.
2. We realize that raising tax revenues by the amounts recommended above for
infrastructure purposes will be very difficult to do. However, considering a longer phase-in
window may have even greater consequences in terms of infrastructure failure.
As the above option achieves 75% of recommended funding on an annual basis in 20 years and
provides improvements to financial sustainability over the period modeled, the recommendations
do require prioritizing capital projects to fit the resulting annual funding available. Current data
shows a pent-up investment demand of $688,000 for all assets, concentrated primarily in the
water network, at $521,000.
Prioritizing future projects will require the current data to be replaced by condition-based data.
Although our recommendations include no further use of debt, the results of the condition-based
analysis may require otherwise.
9 The Township of Billings should take advantage of all available grant funding programs and transfers from other levels of
government. While OCIF has historically been considered a sustainable source of funding, the program is currently undergoing
review by the provincial government. Depending on the outcome of this review, there may be changes that impact its availability.
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14.4 Financial Profile: Rate Funded Assets
14.4.1
Current Funding Position
The following tables show, by asset category, the average annual asset investment requirements
(AAR), current funding positions, and funding increases required to achieve the proposed level of
service of 75% funding for assets funded by rates.
Asset
Category
100%
AAR
75%
AAR
Annual Funding Available
Annual
Deficit
Rates
To
Operating
OCIF
Total
Available
Water
Network
504,918
405,688
312,783
-211,476
0
101,304
304,364
Total
504,918
405,688
312,783
-211,476
0
101,304
-304,364
Table 63 Annual Available Funding for Rate Funded Assets
The average annual investment requirement for the above categories is $406 thousand to meet
the 75% funding target. Annual revenue currently allocated to these assets for capital purposes
is $101 thousand leaving an annual deficit of $304 thousand. Put differently, these infrastructure
categories are currently funded at 19% of their long-term/ideal requirements, while targeting
75% within 20 years (currently 25% funded).
14.4.2
Proposed Levels of Service Funding Requirements
In 2024 Billings had annual water revenues of $313 thousand. As illustrated in the table below,
without consideration of any other sources of revenue, increasing funding would require the
following changes over time:
Asset Category
Rate Change Required for
Full Funding
Rate Change Required for
75% Funding
(Proposed LOS)
Water Network
129%
97.3%
Table 64 Rate Increase Requirements for Full Funding
In the following tables, we have expanded the above scenario to present multiple options. Due
to the significant increases required, we have provided phase-in options for up to 20 years:
Water Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
304,384
304,384
304,384
304,384
Rate Increase Required
97.3%
97.3%
97.3%
97.3%
Annually:
14.6%
7.1%
4.7%
3.5%
Table 65 Water Rate Increase Options 5-20 Years
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14.4.3
Financial Strategy Recommendations
Considering all of the above information, we recommend the 20-year option. This involves 75%
of full funding being achieved over 20 years by:
a) increasing rate revenues by 3.5% for water services each year for the next 20 years
solely for the purpose of phasing in the target of 75% of full funding to the asset
categories covered in this section of the AMP.
b) increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will most likely be
available during the phase-in period. This periodic funding should not be incorporated into
an AMP unless there are firm commitments in place.
2. We realize that raising rate revenues for infrastructure purposes will be very difficult to
do. However, considering a longer phase-in window may have even greater consequences
in terms of infrastructure failure.
3. Any increase in rates required for operations would be in addition to the above
recommendations.
As the above option achieves 75% of recommended funding on an annual basis in 20 years and
provides improvements to financial sustainability over the period modeled, the recommendations
do require prioritizing capital projects to fit the resulting annual funding available. Current data
shows a pent-up investment demand of $521,000 for the water network.
Prioritizing future projects will require the current data to be replaced by condition-based data.
Although our recommendations include no further use of debt, the results of the condition-based
analysis may be required otherwise.
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14.5 Use of Debt
Debt can be strategically utilized as a funding source within the long-term financial plan. The
benefits of leveraging debt for infrastructure planning include:
a) the ability to stabilize tax & user rates when dealing with variable and sometimes
uncontrollable factors
b) equitable distribution of the cost/benefits of infrastructure over its useful life
c) a secure source of funding
d) flexibility in cash flow management
Debt management policies and procedures with limitations and monitoring practices should be
considered when reviewing debt as a funding option. In efforts to mitigate increasing commodity
prices and inflation, interest rates have been rising. Sustainable funding models that include
debt need to incorporate the now current realized risk of rising interest rates
The following tables outline how the township has historically used debt for investing in the asset
categories as listed. As of year-end 2024, there is currently $1.3 million of debt outstanding for
the assets covered by this AMP with corresponding principal and interest payments of $147
thousand.
Note: These debt figures exclude any debt used for purposes outside of assets covered by this
AMP (for example, land purchases).
Asset Category
Current
Debt Out-
standing
Dec. '24
Use of Debt in the Last Five Years
2020
2021
2022
2023
2024
Road Network
-
-
-
-
-
-
Stormwater Network
-
-
-
-
-
-
Bridges & Culverts
411,978
-
-
-
-
411,978
Buildings & Facilities
883,084
-
-
-
-
883,084
Machinery &
Equipment
-
-
-
-
-
-
Land Improvements
-
-
-
-
-
-
Fleet
-
-
-
-
-
-
Total Tax funded
1,295,061
1,295,061
Water Network
-
-
-
-
-
-
Total Rate Funded
-
-
-
-
-
-
Table 66 Billings Use of Debt 2019-2023
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Asset
Category
Principal & Interest Payments over the Next Ten Years
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Road Network
-
-
-
-
-
-
-
-
-
-
Stormwater
Network
-
-
-
-
-
-
-
-
-
-
Bridges &
Culverts
92,641
92,641
84.921
100,361
77,201
-
-
-
-
-
Buildings &
Facilities
54,557
54,557
54,557
54,557
54,557
54,557
54,557
54,557
54,557
54,557
Machinery &
Equipment
-
-
-
-
-
-
-
-
-
-
Land
Improvements
-
-
-
-
-
-
-
-
-
-
Fleet
-
-
-
-
-
-
-
-
-
-
Total Tax
Funded
147,198
147,198
139,478
154,918
131,757
54,557
54,557
54,557
54,557
54,557
Water Network
-
-
-
-
-
-
-
-
-
-
Total Rate
Funded
-
-
-
-
-
-
-
-
-
-
Table 67 Billings Principal and Interest Payments
The revenue options outlined in this plan allow the Township of Billings to achieve 75% funding of infrastructure requirements
without further use of debt, however, targeting of less than ideal funding increases uncertainty, which may result in the
necessity of further use of debt.
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14.6 Use of Reserves
14.6.1
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having reserves
available for infrastructure planning include:
a) the ability to stabilize tax rates when dealing with variable and sometimes uncontrollable
factors
b) financing one-time or short-term investments
c) accumulating the funding for significant future infrastructure investments
d) managing the use of debt
e) normalizing infrastructure funding requirement
By asset category, the table below outlines the details of the reserves currently available to
Billings.
Asset Category
Approximate Balance at
December 31, 2024
Road Network
-
Stormwater Network
-
Bridges & Culverts
111,139
Buildings & Facilities
58,125
Machinery & Equipment
58,125
Land Improvements
58,125
Fleet
58,125
Total Tax Funded
343,637
Water Network
366,103
Total Rate Funded
709,741
Table 68 Billings Reserve Balances
By having reserves with broad applications across multiple asset categories the township gains
the flexibility to spend funds on needs as they arise, regardless of asset type, however, risks
losing sight of long-term funding requirements which may require analysis on a more granular
basis.
There is considerable debate in the municipal sector as to the appropriate level of reserves that
a Township should have on hand. There is no clear guideline that has gained wide acceptance.
Factors that municipalities should take into account when determining their capital reserve
requirements include:
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a) breadth of services provided
b) age and condition of infrastructure
c) use and level of debt
d) economic conditions and outlook
e) internal reserve and debt policies.
These reserves are available for use by applicable asset categories during the phase-in period to
full funding. This coupled with Billings's judicious use of debt in the past, allows the scenarios to
assume that, if required, available reserves and debt capacity can be used for high priority and
emergency infrastructure investments in the short- to medium-term.
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15. Recommendations & Key Considerations
15.1 Financial Strategies
1. Review the feasibility of adopting the funding required to meet the proposed levels of
service for the asset categories analyzed. This includes:
a. Increasing taxes by1.7% per year over a period of 20 years;
b. Increasing water rates by 3.5% per year over a period of 20 years; and
2. Continued allocation of OCIF and CCBF funding as previously outlined.
3. Reallocating appropriate revenue from categories in a surplus position to those in a deficit
position.
4. Increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
5. Continue to apply for project specific grant funding to supplement sustainable funding
sources.
15.2 Asset Data
1. Continuously review, refine, and calibrate lifecycle and risk profiles to better reflect actual
practices and improve capital projections. In particular:
a. the timing of various lifecycle events, the triggers for treatment, anticipated
impacts of each treatment, and costs
b. the various attributes used to estimate the likelihood and consequence of asset
failures, and their respective weightings
2. Asset management planning is highly sensitive to replacement costs. Periodically update
replacement costs based on recent projects, invoices, or estimates, as well as condition
assessments, or any other technical reports and studies. Material and labour costs can
fluctuate due to local, regional, and broader market trends, and substantially so during
major world events. Accurately estimating the replacement cost of like-for-like assets can
be challenging. Ideally, several recent projects over multiple years should be used. Staff
judgement and historical data can help attenuate extreme and temporary fluctuations in
cost estimates and keep them realistic.
3. Like replacement costs, an asset's established serviceable life can have dramatic impacts
on all projections and analyses, including condition, long-range forecasting, and financial
recommendations. Periodically reviewing and updating these values to better reflect in-
field performance and staff judgement is recommended.
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4. Assess the feasibility of incorporating and aligning the data supplied by the OCWA reports,
in the asset management system. This alignment will provide clarity and strengthen
confidence in reporting on condition and replacement values.
5. Assess the effort required to improve the land improvements asset listing to include
parks, trails and pathways that exist and are maintained, however are not currently
tracked within the asset management software.
15.3 Risk & Levels of Service
1. Risk models and matrices can play an important role in identifying high-value assets, and
developing an action plan which may include repair, rehabilitation, replacement, or further
evaluation through condition assessments. As a result, project selection and the
development of multi-year capital plans can become more strategic and objective. Initial
models have been built into Citywide for all asset groups. These models reflect current
data, which was limited. As the data evolves and new attribute information is obtained,
these models should also be refined and updated.
2. Available data on current performance should be centralized and tracked to support any
calibration of service levels for long-term tracking of O. Reg. 588's requirements on
proposed levels of service.
3. Staff should monitor evolving local, regional, and environmental trends to identify factors
that may shape the demand and delivery of infrastructure programs. These can include
population growth, and the nature of population growth; climate change and extreme
weather events; and economic conditions and the local tax base. This data can also be
used to review service level targets.
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Appendices
Appendix A - Infrastructure Report Card
Appendix B - 10-Year Capital Requirements
Appendix C - Risk Rating Criteria
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Appendix A - Infrastructure Report Card
Asset
Category
Replacement
Cost
Average
Condition
Financial Capacity
(Based on Proposed LOS -75%)
%
Funded
Road Network
$50m
Fair
(48%)
Annual Requirement:
$844,500
18%
Funding Available:
$154,000
Annual Deficit:
$690,500
Bridges &
Culverts
$3.2m
Fair
(60%)
Annual Requirement:
$82,000
385%
Funding Available:
$316,000
Annual Deficit: ($234,000)
Water
Network
$25.2m
Good
(70%)
Annual Requirement:
$406,000
25%
Funding Available:
$101,000
Annual Deficit:
$305,000
Stormwater
Network
$1.2m
Very
Good
(98%)
Annual Requirement:
$25,000
0%
Funding Available:
$0
Annual Deficit:
$25,000
Buildings &
Facilities
$20.8m
Good
(61%)
Annual Requirement:
$369,000
15%
Funding Available:
$55,500
Annual Deficit:
$313,500
Land
Improvements
$330k
Very
Good
(83%)
Annual Requirement:
$3,000
0%
Funding Available:
$0
Annual Deficit:
$3,000
Fleet
$1.9m
Good
(67%)
Annual Requirement:
$93,000
86%
Funding Available:
$80,000
Annual Deficit:
$13,000
Machinery &
Equipment
$ 146k
Good
(63%)
Annual Requirement:
$18,750
0%
Funding Available:
$0
Annual Deficit:
$18,750
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Appendix B - 10-Year Capital Requirements
Capital Requirements for Current Levels of Service (funding availability not considered)
The tables below summarize the projected cost of lifecycle activities (rehabilitation and replacements) that may be undertaken
over the next 10 years to support current levels of service. They do not consider any proposed levels of service, or available
funding, and are projected based on ideal conditions.
These projections are generated in Citywide and rely on the data available in the asset register. Assessed condition data and
replacement costs were used to assist in forecasting replacement needs for roads. For all remaining assets, only age was used to
determine forthcoming replacement needs.
The projections can be different from actual capital forecasts. Consistent data updates, particularly condition, replacement costs,
and regular upkeep of lifecycle models, will improve the alignment between the system generated expenditure requirements,
and the Township's capital expenditure forecasts.
Road Network
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Gravel Roads
-
$1.8m
$3.1m
$105k
$50k
-
$1.5m
-
-
$392k
-
Paved Roads
-
-
-
-
-
-
-
-
-
-
-
Streetlights
$5k
-
-
-
-
-
-
-
-
-
-
Surface
Treated
Roads
-
$911k
$46k
$79k
$125k
-
-
-
-
-
-
Total
$5k
$2.7
m
$3.1m
$184k
$175k
-
$1.5m
-
-
$392k
$5k
Table 69 System Generated 10-Year Capital Replacement Forecast: Road Network
Township of Billings
Asset Management Plan 2025
146
Bridges & Culverts
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Bridges
-
-
-
$1.2m
-
-
-
-
-
-
-
Structural
Culverts
-
$45k
-
-
-
-
-
-
-
-
-
Total
-
$45k
-
$1.2m
-
-
-
-
-
-
-
Table 70 System Generated 10-Year Capital Replacement Forecast: Bridges & Culverts
Water Network
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Hydrants
-
-
-
-
-
-
-
-
-
-
-
Service Lead
-
-
-
-
-
-
-
$861k
-
-
-
Treatment
Plant
-
$109k
$60k
-
$104k
$25k
$62k
-
$11k
$18k
$130k
Water Tower
$521k
$895k
-
-
-
-
-
$2.3m
-
-
-
Watermains
-
-
-
-
-
-
-
-
-
-
-
Total
$521k
$1.0m
$60k
-
$104k
$25k
$62k
$3.2m
$11k
$18k
$130k
Table 71 System Generated 10-Year Capital Replacement Forecast: Water Network
Township of Billings
Asset Management Plan 2025
147
Buildings & Facilities
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Environmental
Services
-
-
-
-
-
-
-
-
-
-
-
Fire &
Emergency
-
-
-
-
-
-
-
-
-
-
-
General
Government
-
$18k
-
-
$2k
-
$18k
$3k
$147k
$3k
$18k
Recreational
and Cultural
Services
-
$751k
$21k
$113k
$48k
$245k
$170k
$174k
$503k
$1.0m
$61k
Transportation
Services
-
$30k
-
-
$13k
$17k
$45k
-
$22k
-
$14k
Total
-
$799k
$21k
$113k
$62k
$262k
$232k
$176k
$672k
$1.0m
$92k
Table 72 System Generated 10-Year Capital Replacement Forecast: Buildings & Facilities
Land Improvements
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Environmental
Services
-
-
-
-
-
-
$7k
-
-
-
-
Transportation
Services
-
-
-
-
-
-
$10k
-
-
-
-
Total
-
-
-
-
-
-
$17k
-
-
-
-
Table 73 System Generated 10-Year Capital Replacement Forecast: Land Improvements
Township of Billings
Asset Management Plan 2025
148
Fleet
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Environmental
Services
-
-
-
-
-
-
-
-
-
$8k
-
Fire &
Emergency
-
$46k
-
$318k
-
-
-
-
-
-
-
Transportation
Services
$146k
-
-
-
-
$526k
$407k
-
$96k
-
-
Total
$146k
$46k
-
$318k
-
$526k
$407k
-
$96k
$8k
-
Table 74 System Generated 10-Year Capital Replacement Forecast: Fleet
Machinery & Equipment
Segment
Backlog
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Fire &
Emergency
$16k
-
$18k
-
-
-
-
-
-
-
-
General
Government
-
-
-
-
-
-
-
-
$32k
-
-
Recreational
and Cultural
Services
-
-
$27k
-
$86k
-
-
$122k
-
-
-
Transportation
Services
-
$19k
-
-
-
-
$10k
-
-
-
-
Total
$16k
$19k
$45k
-
$86k
-
$10k
$122k
$32k
-
-
Table 75 System Generated 10-Year Capital Replacement Forecast: Machinery & Equipment
Township of Billings
Asset Management Plan 2025
149
Proposed Levels of Service - 10 Year Capital Plan
The following table summarizes the costs of recommended lifecycle events, as generated by the Township's asset management
software, Citywide, while considering annual budgets beginning at current funding levels and gradually increasing over 20 years
for both tax and rate funded assets to reach a targeted 75% funding level. (Scenario 2 of the proposed levels of service
analyzed). These projections consider the availability of funding as increases are implemented.
Category
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Road Network
$127k
$441k
$269k
-
-
$808k
-
$1.5m
$392k
-
Bridges & Culverts
-
-
-
-
-
-
-
-
-
-
Water Network
$77k
$133k
$105k
$157k
$117k
$190k
$172k
$187k
$202k
$215k
Stormwater
Network
-
-
-
-
-
-
-
-
-
-
Building & Facilities
-
$13k
-
$52k
$59k
$835k
$195k
$248k
$239k
$253k
Land
Improvements
-
-
-
-
-
-
-
-
-
-
Fleet
$73k
-
$120k
-
$150k
$61k
-
$96k
$8k
$318k
Machinery &
Equipment
-
-
-
$16k
-
$18k
$10k
-
$19k
-
Total
$276k
$587k
$494k
$225k
$327k
$1.9m
$377k
$2.0m
$860k
$786k
Table 76 Proposed LOS 10-Year Capital Replacement Forecast
Township of Billings
Asset Management Plan 2025
150
Appendix C - Risk Rating Criteria
Probability of Failure (PoF)
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
PoF Score
Road Network (Roads)
Condition
60%
85-100
1
70-84
2
55-69
3
40-54
4
0-39
5
Service Life
Remaining (%)
40%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Bridges & Culverts
Condition
75%
80-100
1
70-79
2
60-69
3
50-59
4
0-49
5
Service Life
Remaining %
25%
80-100
1
60-79
2
40-59
3
20-39
4
Township of Billings
Asset Management Plan 2025
151
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
PoF Score
0-19
5
Buildings & Facilities
Machinery & Equipment
Fleet
Parks & Land Improvements
Condition
75%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Service Life
Remaining %
25%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Road Network (Other)
Stormwater Network (Other)
Water Network (Other)
Condition
75%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Service Life
Remaining %
25%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Water Network (Mains)
Condition
50%
80-100
1
60-79
2
Township of Billings
Asset Management Plan 2025
152
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
PoF Score
40-59
3
20-39
4
0-19
5
Service Life
Remaining %
40%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Pipe Material
10%
HDPE
2
PVC
2
CU
3
CI
3
P
4
Stormwater Network (Mains)
Condition
50%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Service Life
Remaining (%)
40%
80-100
1
60-79
2
40-59
3
20-39
4
0-19
5
Township of Billings
Asset Management Plan 2025
153
Asset Category
Risk Criteria
Criteria
Weighting
Value/Range
PoF Score
Pipe Material
10%
Concrete
4
Ductile Iron
3
PVC
2
Table 77 Probability of Failure Risk Scores
Consequence of Failure (CoF)
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
Road Network (Roads)
Economic
(100%)
Historical Cost
(100%)
$0-$50,000
1
$50,000-$150,000
2
$150,000-$300,000
3
$300,000-$500,000
4
$500,000+
5
Bridges & Culverts
Economic
(90%)
Replacement Cost
(100%)
$0-$100,000
1
$100,000-$250,000
2
$250,000-$500,000
3
$500,000-$1,000,000
4
$1,000,000+
5
Socio-Political
(10%)
Detour Distance
(100%)
2-5
2
6-8
3
9-10
4
11-20
5
Buildings & Facilities
Economic
Replacement Cost
$0-$50,000
1
Township of Billings
Asset Management Plan 2025
154
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
Machinery & Equipment
Fleet
Parks & Land Improvements
(80%)
(100%)
$50,000-$350,000
2
$350,000-$1,000,000
3
$1,000,000-$2,000,000
4
$2,000,000+
5
Strategic
(20%)
Department
(100%)
Recreation & Cultural Services
2
General Government
2
Transportation Services
3
Public Works
3
Environmental Services
4
Health Services
5
Protection Services
5
Stormwater Network (Other)
Water Network (Other)
Economic
(100%)
Replacement Cost
(100%)
$0-$50,000
1
$50,000-$150,000
2
$150,000-$250,000
3
$250,000-$500,000
4
$500,000+
5
Water Network (Mains)
Economic
(80%)
Replacement Cost
(100%)
$0-$50,000
1
$50,000-$100,000
2
$100,000-$150,000
3
$150,000-$250,000
4
$250,000+
5
Operational
(20%)
Pipe Diameter
(100%)
0-50
1
51-150
2
151-250
3
Township of Billings
Asset Management Plan 2025
155
Asset Category
Risk Classification
Risk Criteria
Value/Range
Consequence of
Failure Score
251-450
4
451-1000
5
Severe
5
Stormwater Network (Mains)
Economic
(80%)
Replacement Cost
(100%)
$0-$50,000
1
$50,000-$100,000
2
$100,000-$150,000
3
$150,000-$250,000
4
$250,000+
5
Operational
(20%)
Pipe Diameter
(100%)
0-50
1
51-150
2
151-250
3
251-450
4
451-1000
5
451-1000
5
Table 78 Consequence of Failure Risk Scores