Asset Management Plan (Revised October 2017)

Emo, Ontario

This is the exact embedded text of the captured official document. Snapshot 6b453b4618c0 · verified 2026-06-10 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

1 Township of Emo Asset Management Plan Prepared By: June 14, 2017 2 Saulteaux Consulting and Engineering would like to thank Crupi Consulting Group for their assistance in the preparation of this Asset Management Plan: 3 Contents 1.0 Executive Summary .......................................................................................................................... 4 2.0 Introduction ...................................................................................................................................... 5 2.1 Asset Listing .................................................................................................................................. 5 3.0 State of Local Infrastructure ............................................................................................................ 9 3.1 Asset Types ................................................................................................................................... 9 3.2 Total Maintenance, Remediation, Rehabilitation, and Replacement Costs ............................... 11 3.3 Asset Condition, Asset Age Distribution ..................................................................................... 13 4.0 Desired Levels of Service ................................................................................................................ 18 4.1 Assumptions & Performance Measures ..................................................................................... 18 5.0 Asset Management Strategy ......................................................................................................... 21 5.1 Non-Infrastructure Solutions ...................................................................................................... 21 5.2 Maintenance Activities ............................................................................................................... 22 5.3 Renewal / Rehabilitation Activities ............................................................................................. 23 5.4 Replacement Activities................................................................................................................ 23 5.5 Disposal Activities ....................................................................................................................... 24 5.6 Expansion Activities .................................................................................................................... 24 6.0 Financial Strategy ........................................................................................................................... 25 6.1 General overview of financial plan requirements ............................................................................ 25 6.2 Financial information relating to the Township of Emo's AMP ........................................................ 27 6.2.1 Funding objective ...................................................................................................................... 27 6.3 Tax funded assets ............................................................................................................................. 27 6.3.1 Current funding position ........................................................................................................... 27 6.3.2. Recommendations for full funding .......................................................................................... 29 6.4 Use of Grant Funding ........................................................................................................................ 30 6.4.1 Grant funding ............................................................................................................................ 30 6.4.2 Recommendation ...................................................................................................................... 31 6.5 Use of debt ....................................................................................................................................... 32 6.5.1 Use of debt ................................................................................................................................ 32 6.5.2 Recommendation ...................................................................................................................... 34 6.6 Use of Reserves ................................................................................................................................ 34 6.6.1 Available reserves ..................................................................................................................... 34 6.6.4 Recommendation ...................................................................................................................... 35 6.7 Summary of Financial Plan ............................................................................................................... 36 4 1.0 Executive Summary Saulteaux Consulting and Engineering (SCE) has prepared this Asset Management Plan (AMP) for the Township of Emo. In preparing the plan, SCE worked with Crupi Consulting Group (CCG). SCE undertook the inspections of Municipal Buildings, Recreation, Water, Waste Water, Electrical, Roads, and Vehicle inspections. CCG undertook the financial analysis, and life cycle costing process. This AMP provides an overview of the estimated future expenditures related to municipal assets over the period of the next ten (10) years. This document will help the Township to undertake an ongoing process to budget for the expenditures necessary to maintain the service levels that have been outlined in the Township's Official Plan. Additionally, the plan identifies assets which require urgent attention in order to bring them to standard, and further identifies a recommended timeframe to undertake necessary maintenance, rehabilitation, and in some cases replacement of assets. The financial plan (Section 6.0) of this plan, outlines a recommended strategy for the Township to finance the necessary work while limiting the tax burden, and maintaining a fiscally responsible, sustainable approach to asset management. Included in the plan are recommendations regarding the maintenance of each asset. If identified maintenance is completed, and ongoing maintenance is undertaken, this will extend the lifecycle of assets, giving the Township a much more manageable budgeting process. All assumptions regarding levels of service are listed within the plan, the financial plan is developed with the understanding that the Township intends to maintain existing levels of service, and that any future development would be undertaken as per the Official Plan. 5 2.0 Introduction This asset management plan has been developed for the Township of Emo to assist the Township in making informed choices regarding future investment. This plan helps to define priorities for future spending, identifies estimated maintenance costs for existing assets, and defines a financing strategy. The goal of this process is to provide the Township with the information required to ensure that it can develop a financing strategy to maintain satisfactory levels of service, and undertake required investments in the future. Additionally, this process reviews the lifecycle cost of each asset including construction, ongoing maintenance, and disposal. Consideration has been given to ensuring that services are maintained in an environmentally sustainable manner, as per the Township's Official Plan. A key feature of this plan is that it will provide the Township with a prioritized listing of infrastructure needs. This listing of priorities will help the Township to identify projects to undertake in the coming years, with a clear focus on the most urgent priorities, projects that will require investment within the next three years. This plan is designed to cover the lifecycle of each asset, and is intended as a living document to be amended, as required, or when new tangible assets are added to the Asset Listing. For the purposes of completing this project, Saulteaux Consulting and Engineering (SCE) has worked with Crupi Consulting Group (CCG). SCE undertook the inspections of Municipal Buildings, Recreation, Water, Waste Water, Electrical, Roads, and Vehicle inspections. CCG undertook the financial analysis, and life cycle costing process. 2.1 Asset Listing The following assets are included in the plan: Table 2.1 - Asset Listing Asset Name Asset No. Ext. No. Asset Code Quantity Units Municipal Office 100000 01 A1A 194.43 SQ. M Curling Club Building 100100 01 A6A 1065.95 SQ. M Public Library 100200 01 A3E 164.73 SQ. M Toy Library 100200 02 A3E 141.93 SQ. M Library Storage 100300 01 A2C 9.86 SQ. M Pavilion 100400 01 A6H 80.63 SQ. M Splash Pad Building 100500 01 A5A 27.55 SQ. M 6 Asset Name Asset No. Ext. No. Asset Code Quantity Units Washrooms 100600 01 A6H 45.33 SQ. M Deck #1 100700 01 A6Z 36.86 SQ. M Deck #2 100800 01 A6Z 36.86 SQ. M Deck #3 100900 01 A6Z 107.99 SQ. M Sportsfield Building 101000 01 A6H 121.57 SQ. M Sportsfield Canopy 101100 01 A6H 127.58 SQ. M Mortuary 101200 01 A3I 22.76 SQ. M Snowmobile Club Building 101300 01 A6E 130.43 SQ. M Storage and Recycling Building 101400 01 B4Z 235.26 SQ. M Maintenance Garage/Fire Hall 101500 01 A2B/A3H 877.26 SQ. M OPP Generator Building 101600 01 A5C 19.5 SQ. M OPP Residence #21 101700 01 A4A 192.72 SQ. M OPP Residence #25 101800 01 A4A 192.72 SQ. M OPP Residence #31 101900 01 A4A 192.72 SQ. M Arena 102000 01 A6B 3089.24 SQ. M Emo OPP Building 102100 01 A1A 333.78 SQ. M RR Futures Development Corporation 102200 01 A1A 197.37 SQ. M Water Treatment Plant 102300 01 A5A 353.25 SQ. M Water Treatment Storage Garage 102400 01 A2B 59.2 SQ. M Little House 102500 01 A6H 7.87 SQ. M Playground 200000 01 C5D 434 SQ. M Tennis Court 200100 01 C5D 1247.8 SQ. M Sportfield Area 200200 01 C5D 94700 SQ. M Splash Park 200300 01 C5D 85 SQ. M Water Treatment System 400000 01 B1C 1 EA 150mmø Watermain PVC 400100 01 B1B 7050 M 200mmø Watermain PVC 400200 01 B1B 930.5 M 300mmø Watermain PVC 400300 01 B1B 1445.22 M 150mmø Watermain DI 400400 01 B1B 3949.25 M 200mmø Watermain HDPE 400500 01 B1B 63.68 M 300mmø Watermain HDPE 400600 01 B1B 70.41 M 450mmø Watermain HDPE 400700 01 B1B 343.49 M Sewage Lagoon 450000 01 B2E 1 EA 200mmø Sanitary Main 450100 01 B2A 5827.98 M 250mmø Sanitary Main 450200 01 B2A 3658.96 M 300mmø Sanitary Main 450300 01 B2A 498.64 M 100mmø Sanitary Forcemain 450400 01 B2J 1350.21 M 150mmø Sanitary Forcemain 450500 01 B2J 1413.89 M Unknown ø Sanitary Main 450600 01 B2A 659.69 M Roy Street Lift Station 450800 01 B2H 1 EA Kaemingh Lift Station 450900 01 B2H 1 EA HWY 11/71 Lift Station 451000 01 B2H 1 EA Street Lights 500000 01 B3C 35 EA Meadow Street 600000 01 D1D 0.42 KM Maple Place 600100 01 D1D 0.1 KM Birch Place 600200 01 D1D 0.1 KM Turrell Street 600300 01 D1B 0.22 KM Colonization Road 600400 01 D1C 0.7 KM Kitchener Street 600500 01 D1C 0.2 KM Byng Street - Surface Treated 600600 01 D1C 0.15 KM Byng Street - Gravel 600700 01 D1B 0.3 KM Adelaide Street 600800 01 D1C 0.38 KM Mitchell Street 600900 01 D1B 0.1 KM Union Street 601000 01 D1B 0.2 KM 7 Judson Street 601100 01 D1B 0.3 KM Maple Crescent 601200 01 D1B 0.4 KM Marion Street 601300 01 D1B 0.2 KM Canning Lane - Paved 601400 01 D1D 0.7 KM Canning Lane - Gravel 601500 01 D1B 0.3 KM Jessie Street West 601600 01 D1C 0.12 KM Queen Street 601700 01 D1D 0.38 KM Florence Street - Surface Treated 601800 01 D1C 0.1 KM Florence Street - Paved 601800 02 D1D 0.3 KM Roy Street - Surface Treated 601900 01 D1C 0.15 KM Roy Street - Paved 601900 02 D1D 0.2 KM Young Lane 602000 01 D1B 0.28 KM Robert Street - Surface Treated 602100 01 D1C 0.05 KM Robert Street - Paved 602100 02 D1D 0.1 KM Station Street 602200 01 D1D 0.15 KM Strachan Drive 602300 01 D1C 0.3 KM Front Street 602400 01 D1D 1.6 KM Walker Street - Surface Treated 602500 01 D1C 0.2 KM Walker Street - Gravel 602500 02 D1B 0.1 KM Hannah Street 602600 01 D1C 0.28 KM River Street 602700 01 D1C 0.2 KM King Street 602800 01 D1C 0.4 KM Jessie Street East 602900 01 D1C 0.15 KM Charles Street East 603000 01 D1C 0.15 KM Charles Street West 603100 01 D1B 0.2 KM Hornal Road 603200 01 D1B 2.6 KM Emo Road - Gravel 603300 01 D1B 6.3 KM Emo Road - Paved 603400 01 D1D 0.3 KM Allan Road 603500 01 D1B 4.8 KM Reid Road 603600 01 D1B 5 KM Cooper Road South 603700 01 D1B 1.6 KM Cooper Road North 603800 01 D1B 1.7 KM Meyers Road 603900 01 D1B 4.7 KM Everett Road 604000 01 D1B 1.8 KM Howse Road 604100 01 D1B 3.3 KM Dunbar Road 604200 01 D1B 1 KM Mather Road 604300 01 D1B 0.1 KM Off Lake Road 604400 01 D1B 5.6 KM Vandrunen Road South 604500 01 D1B 4.8 KM Carpenter Road 604700 01 D1B 8.1 KM McDiarmid Road 604800 01 D1B 4.4 KM Stewart Road 604900 01 D1B 4.8 KM Alexander Road 605000 01 D1B 1.6 KM Barnhardt Road 605100 01 D1B 6.6 KM Carlson Road 605200 01 D1B 3.4 KM George Road 605300 01 D1B 4 KM Redford Road 605400 01 D1B 5.7 KM Plaskett Road 605500 01 D1B 0.8 KM Ellis Road 605600 01 D1B 0.8 KM Locking Creek Road 605700 01 D1B 1.6 KM Fisher Road 605800 01 D1B 9.5 KM Alysworth Road 605900 01 D1B 6 KM O'Neil Road 606000 01 D1A 0.9 KM Jewell Road 606100 01 D1B 0.8 KM McDonald Road 606200 01 D1A 1 KM Ogden Road 606300 01 D1B 1.1 KM 8 Peterson Road 606400 01 D1B 0.4 KM Larson Road 606500 01 D1B 0.5 KM Cherlen Bay 606600 01 D1C 0.15 KM Fire Tanker 901000 01 E1B 1 EA Superior Unit #1 Fire Truck 901100 01 E1A 1 EA Rescue 1 902000 01 E6C 1 EA Truck 107 902100 01 E8L 1 EA Chevy Silverado 4X4 902200 01 E6C 1 EA Street Sweeper 902300 01 E8L 1 EA Dump Truck 902400 01 E7U 1 EA Zamboni 902500 01 E8L 1 EA John Deere Tractor 902600 01 E8L 1 EA Dodge Ram 2004 902700 01 E6C 1 EA GMC Sierra Extended Cab 902800 01 E6C 1 EA John Deere Loader 902900 01 E8L 1 EA Dodge Ram 2001 903000 01 E6C 1 EA Handicapped Van 903100 01 E6C 1 EA Volvo Excavator 903200 01 E6C 1 EA GMC Sierra Extended Cab 903300 01 E6C 1 EA Volvo Grader 903400 01 E8K 1 EA 9 3.0 State of Local Infrastructure This section outlines the following:  Asset types (Roads, Buildings, Equipment, Water, Waste Water, and Vehicles).  Identification of maintenance, repair, remediation, and replacement costs for assets.  Age of assets, including age of assets as a portion of expected life.  Condition of assets, as per standard engineering practices. Roads, vehicles, buildings, and recreation equipment were inspected for this process. As the asset management planning process is intended to be ongoing, and the condition of assets, especially those requiring immediate repair, can impact the budget process, it is recommended that the tables included herein be updated with current information, as it becomes available. Data will be updated as identified in Municipal policy which complies with Provincial requirements (i.e. as required inspections are undertaken, at regular intervals). 3.1 Asset Types Table 3.1 - Listing of Asset Codes in Township of Emo MUNICIPAL ASSET MANAGEMENT PLAN ASSET CODES Category Class Subclass Asset Code Units Building Administrative Office A1A SQ. M Building Operative Garage (Municipal) A2B SQ. M Building Operative Warehouse A2C SQ. M Building Institutional Library A3E SQ. M Building Institutional Church/Chapel A3I SQ. M Building Residential Single Family House A4A SQ. M Building Utility Water Supply/Treatment A5A SQ. M Building Utility Electric Power Generation A5C SQ. M Building Recreational City Rec Center/Hall/Cultural Center A6A SQ. M Building Recreational Arena A6B SQ. M Building Recreational Club HS/Youth Center/SR CIT/Drop-in A6E SQ. M Building Recreational Shelter/Hut/Skate/Ball/Play A6H SQ. M Building Recreational Other A6Z SQ. M Utility Water supply and distribution system Water mains B1B M Utility Water supply and distribution system Water Treatment System B1C EA Utility Waste Collection and Disposal System Sanitary Main B2A M 10 MUNICIPAL ASSET MANAGEMENT PLAN ASSET CODES Category Class Subclass Asset Code Units Utility Waste Collection and Disposal System Lagoon B2E EA Utility Waste Collection and Disposal System Lift Station B2H EA Utility Waste Collection and Disposal System Forcemain B2J M Utility Electrical Power and Dist. Sys. Street Lights B3C EA Utility Solid Waste Collection and Disposal Sys. Other B4Z - Grounds Playgrounds Outdoor Hockey C5D EA Transportation Roads Earth Road D1A KM Transportation Roads Gravel Road D1B KM Transportation Roads Surface Treated Roads D1C KM Transportation Roads Paved Roads D1D KM Vehicles Fire Mini-Pumper E1A EA Vehicles Fire Triple Combination Pumper E1B EA Vehicles Administrative Truck 1/2 Ton E6C EA Vehicles Construction Truck, dump other E7U EA Vehicles Commercial Grader E8K EA Vehicles Commercial Miscellaneous E8L EA Note: Quantity and extent of assets are identified in Table 2.1. 11 3.2 Total Maintenance, Remediation, Rehabilitation, and Replacement Costs Asset Name Asset Number Asset Ext. Year of Construction Totals ($) Municipal Office 100000 01 1978 10,450.00 Curling Club Building 100100 01 1964 29,775.00 Public Library 100200 01 1986 425.00 Toy Library 100200 02 1986 1,600.00 Library Storage 100300 01 2012 150.00 Pavilion 100400 01 1988 12,850.00 Splash Pad Building 100500 01 2010 5,050.00 Washrooms 100600 01 1988 1,925.00 Deck #1 100700 01 1988 1,500.00 Deck #2 100800 01 1988 1,250.00 Deck #3 100900 01 1988 550.00 Sportsfield Building 101000 01 2008 1,100.00 Sportsfield Canopy 101100 01 2007 500.00 Mortuary 101200 01 1984 600.00 Snowmobile Club Building 101300 01 1992 4,700.00 Storage and Recycling Building 101400 01 1992 650.00 Maintenance Garage/Fire Hall 101500 01 1992 11,750.00 OPP Generator Building 101600 01 2003 1,200.00 OPP Residence #21 101700 01 2003 3,410.00 OPP Residence #25 101800 01 2003 3,525.00 OPP Residence #31 101900 01 2003 4,680.00 Arena 102000 01 1979 43,950.00 Emo OPP Building 102100 01 2003 25,950.00 RR Futures Development Corporation 102200 01 2003 2,350.00 Water Treatment Plant 102300 01 1969 39,400.00 Water Treatment Storage Garage 102400 01 1969 150.00 Little House 102500 01 1999 900.00 Playground 200000 01 2006 1,000.00 Tennis Court 200100 01 1988 23,250.00 Sportfield Area 200200 01 2007 14,100.00 Splash Park 200300 01 2010 - Water Treatment System 400000 01 1969 628,100.00 150mmø Watermain PVC 400100 01 1969 - 200mmø Watermain PVC 400200 01 1969 2,500 300mmø Watermain PVC 400300 01 1969 - 150mmø Watermain DI 400400 01 1969 802,500 200mmø Watermain HDPE 400500 01 1969 - 300mmø Watermain HDPE 400600 01 1969 - 450mmø Watermain HDPE 400700 01 2015 - Sewage Lagoon 450000 01 2014 18,000.00 200mmø Sanitary Main 450100 01 1969 - 250mmø Sanitary Main 450200 01 1969 - 300mmø Sanitary Main 450300 01 1969 - 100mmø Sanitary Forcemain 450400 01 1987 - 150mmø Sanitary Forcemain 450500 01 1987 - Unknown ø Sanitary Main 450600 01 1969 - Roy Street Lift Station 450800 01 1969 56,500.00 Kaemingh Lift Station 450900 01 1995 5,700.00 HWY 11/71 Lift Station 451000 01 1969 18,500.00 Street Lights 500000 01 2008 - Meadow Street 600000 01 Township to advise 103,000.00 12 Maple Place 600100 01 Township to advise 21,000.00 Asset Name Asset Number Asset Ext. Year of Construction Totals ($) Birch Place 600200 01 Township to advise 103,000 Turrell Street 600300 01 Township to advise 21,000 Colonization Road 600400 01 Township to advise 23,000 Kitchener Street 600500 01 Township to advise 1,000 Byng Street - Surface Treated 600600 01 Township to advise 5,000 Byng Street - Gravel 600700 01 Township to advise 3,000 Adelaide Street 600800 01 Township to advise 0 Mitchell Street 600900 01 Township to advise 0 Union Street 601000 01 Township to advise 3,000 Judson Street 601100 01 Township to advise 1,000 Maple Crescent 601200 01 Township to advise 0 Marion Street 601300 01 Township to advise 0 Canning Lane - Paved 601400 01 Township to advise 0 Canning Lane - Gravel 601500 01 Township to advise 0 Jessie Street West 601600 01 Township to advise 67,000 Queen Street 601700 01 Township to advise 1,000 Florence Street - Surface Treated 601800 01 Township to advise 0 Florence Street - Paved 601800 02 Township to advise 8,000 Roy Street - Surface Treated 601900 01 Township to advise 5,000 Roy Street - Paved 601900 02 Township to advise 52,000 Young Lane 602000 01 Township to advise 0 Robert Street - Surface Treated 602100 01 Township to advise 37,000 Robert Street - Paved 602100 02 Township to advise 2,000 Station Street 602200 01 Township to advise 0 Strachan Drive 602300 01 Township to advise 13,000 Front Street 602400 01 Township to advise 25,000 Walker Street - Surface Treated 602500 01 Township to advise 16,000 Walker Street - Gravel 602500 02 Township to advise 10,000 Hannah Street 602600 01 Township to advise 1,000 River Street 602700 01 Township to advise 1,000 King Street 602800 01 Township to advise 0 Jessie Street East 602900 01 Township to advise 2,000 Charles Street East 603000 01 Township to advise 4,000 Charles Street West 603100 01 Township to advise 0 Hornal Road 603200 01 Township to advise 2,000 Emo Road - Gravel 603300 01 Township to advise 1,000 Emo Road - Paved 603400 01 Township to advise 2,000 Allan Road 603500 01 Township to advise 13,000 Reid Road 603600 01 Township to advise 4,000 Cooper Road South 603700 01 Township to advise 8,000 Cooper Road North 603800 01 Township to advise 2,000 Meyers Road 603900 01 Township to advise 16,000 Everett Road 604000 01 Township to advise 4,000 Howse Road 604100 01 Township to advise 25,000 Dunbar Road 604200 01 Township to advise 3,000 Mather Road 604300 01 Township to advise 1,000 Off Lake Road 604400 01 Township to advise 3,000 Vandrunen Road South 604500 01 Township to advise 24,000.00 Carpenter Road 604700 01 Township to advise 19,000 McDiarmid Road 604800 01 Township to advise 12,000 Stewart Road 604900 01 Township to advise 6,000 Alexander Road 605000 01 Township to advise 2,000 13 Asset Name Asset Number Asset Ext. Year of Construction Totals ($) Barnhardt Road 605100 01 Township to advise 10,000 Carlson Road 605200 01 Township to advise 4,000 George Road 605300 01 Township to advise 2,000 Redford Road 605400 01 Township to advise 8,000 Plaskett Road 605500 01 Township to advise 1,000 Ellis Road 605600 01 Township to advise 6,000 Locking Creek Road 605700 01 Township to advise 3,000 Fisher Road 605800 01 Township to advise 12,000 Alysworth Road 605900 01 Township to advise 12,000 O'Neil Road 606000 01 Township to advise 1,000 Jewell Road 606100 01 Township to advise 2,000 McDonald Road 606200 01 Township to advise 1,000 Ogden Road 606300 01 Township to advise 2,000 Peterson Road 606400 01 Township to advise 1,000 Larson Road 606500 01 Township to advise 1,000 Cherlen Bay 606600 01 Township to advise 1,000 Fire Tanker 901000 01 1992 - Superior Unit #1 Fire Truck 901100 01 2004 - Rescue 1 902000 01 2010 - Truck 107 902100 01 1982 - Chevy Silverado 4X4 902200 01 2009 - Street Sweeper 902300 01 1973 1,500.00 Dump Truck 902400 01 2015 - Zamboni 902500 01 2012 - John Deere Tractor 902600 01 1995 500.00 Dodge Ram 2004 902700 01 2004 500.00 GMC Sierra Extended Cab 902800 01 2011 - John Deere Loader 902900 01 2005 - Dodge Ram 2001 903000 01 2001 2,700.00 Handicapped Van 903100 01 2005 2,500.00 Volvo Excavator 903200 01 2015 150.00 GMC Sierra Extended Cab 903300 01 2011 350.00 Volvo Grader 903400 01 2005 850.00 Totals: 2,531,540.00 The above table reflects maintenance, remediation, rehabilitation, and replacement costs. Ongoing maintenance items are not reflected beyond their initial occurrence; however they are listed in the financial plan, under Section 6.0 of the Asset Management Plan. 3.3 Asset Condition, Asset Age Distribution Table 3.3.1 Buildings, Grounds Asset Name General Year Estimated Remaining Condition Constructed Life (Years) Municipal Office 7 1978 30 Curling Club Building 7 1964 22 Public Library 8 1986 25 Toy Library 8 1986 25 Library Storage 7 2012 22 Pavilion 8 1988 25 14 Asset Name General Year Estimated Remaining Condition Constructed Life (Years) Splash Pad Building 7 2010 30 Washrooms 8 1988 25 Deck #1 9 1988 25 Deck #2 8 1988 25 Deck #3 8 1988 25 Sportsfield Building 8 2008 30 Sportsfield Canopy 9 2007 25 Mortuary 7 1984 20 Snowmobile Club Building 7 1992 30 Storage and Recycling Building 8 1992 22 Maintenance Garage/Fire Hall 8 1992 25 OPP Generator Building 8 2003 25 OPP Residence #21 8 2003 25 OPP Residence #25 8 2003 25 OPP Residence #31 8 2003 25 Arena 7 1979 22 Emo OPP Building 7 2003 25 RR Futures Development Corporation 8 2003 25 Water Treatment Plant 7 1969 20 Water Treatment Storage Garage 9 1969 30 Little House 7 1999 20 Playground 8 2006 20 Tennis Court 6 1988 20 Sportfield Area 7 2007 22 Splash Park 9 2010 20 Table 3.3.2 Roads Asset Name Pavement Condition Rating Estimated Surface Age Possible Remedial Treatments Meadow Street 67 10 N/A Maple Place 73 10 crack routing and sealing Birch Place 80 10 crack routing and sealing/ 3 lm curb and gutter replacement Turrell Street 72 10 Grade and shape shoulder Colonization Road 73 10 Complete spot repairs for potholes and shoulder deterioration Kitchener Street 81 10 Complete spot repairs for potholes and around manhole. Byng Street - Surface Treated 85 10 None Required Byng Street - Gravel 83 10 None Required Adelaide Street 80 10 Complete surface patching to mitigate deterioration Mitchell Street 86 10 None required for road and drainage - need a street name sign Union Street 84 10 None required Judson Street 85 10 None required Maple Crescent 83 10 None required Marion Street 86 10 None required Canning Lane - Paved 59 10 1-5 years - design followed by upgrades and resurfacing Canning Lane - Gravel 76 10 None required for road and drainage - need brushing and 3 X stop signs 15 Jessie Street West 78 10 None required Asset Name Pavement Condition Rating Estimated Surface Age Possible Remedial Treatments Queen Street 92 4 Minor sidewalk paving and ashalt pavement edge granular filling req'd Florence Street - Surface Treated 66 10 Complete spot repairs Florence Street - Paved 76 10 Minor sidewalk and pvmt spot repairs Roy Street - Surface Treated 78 10 None required Roy Street - Paved 73 10 Minor sidealk and pvmt spot repairs Young Lane 72 10 Require 50 mm Gran 'A' west of Robert St. Robert Street - Surface Treated 73 10 None required Robert Street - Paved 68 10 None required Station Street 64 10 Complete spot repairs Strachan Drive 63 10 4 patches and last 50 meters repave + signage Front Street 80 10 Crack routing/sealing and shoulder repairs Walker Street - Surface Treated 77 10 None required for road and drainage - curve signs recommended Walker Street - Gravel 75 10 Grade and shape shoulder to permit good water shedding. Hannah Street 84 10 None required for road and drainage. River Street 79 10 Repair potholes King Street 81 10 Minor sidewalk and pvmt spot repairs Jessie Street East 82 10 N/A Charles Street East 78 10 Minor pvmt edge/shoulder repairs Charles Street West 80 10 Grade the road to take out and fill low areas. Hornal Road 70 to 20 10 grade and shape shoulder first 0.1 km of road, install speed limit signs, install "enter at own risk sign" at km 1.7 Emo Road - Gravel 80 10 Install speed limit and stop signs, as well as complete minor brushing Emo Road - Paved 57 10 Surface patching and shoulder graveling. Allan Road 78 10 Grade surface, crown & pull shoulders, install speed & stop signs, brushing Reid Road 77 10 Grade & shape shoulders (1000m total), Install speed limit sign, mild brushing (1000m) Cooper Road South 73 10 Grade & shape shoulders, Install speed limit sign, minor brushing Cooper Road North 63 10 Install stop & curve signs, brushing in ditch, addition granular over culvert Meyers Road 65 10 Grade, shaping, ditching signage, & brushing. Everett Road 85 10 Install stop & speed limit signs, mild brushing Howse Road 88 10 Install curve & railway crossing signs Dunbar Road 55 10 Install speed limit and stop signs, reshape embankment, remove beaver dam Mather Road 84 10 Install stop & dead end signs. Off Lake Road 90 10 Install speed limit signs & minor brushing Vandrunen Road South 67 10 Grade road, major spot repairs requiring fill, shoulders, signage, crown road, ditching/brushing Carpenter Road 82 10 Grade & shape shoulders, install speed limit signs, brushing, spot improvement. 16 Asset Name Pavement Condition Rating Estimated Surface Age Possible Remedial Treatments McDiarmid Road 62 10 Apply granular, grade and shape shoulder, signage, ditching, brushing, drainage, major spot repair. Stewart Road 63 10 Grade & shape road/shoulders, install stop, speed limit and curve signs, install rip rap on culvert. Alexander Road 70 10 Grade & Shape shoulders, install speed limit and bend signs, minor brushing Barnhardt Road 79 10 Grade road & Shoulders, Install stop, speed limit, and keep right signs, brushing and drainage. Carlson Road 72 10 grading, stop, signage, brusing George Road 76 10 Install speed limit, corner & stop signs, cut brush in ditch. Redford Road 73 10 Install stop signs, speed limit signs, keep right signs & cut brush in ditch Plaskett Road 68 10 Grading, Install speed limit and stop sign. Ellis Road 55 10 Grading, signage, shape embankment, allowance for spot improvement Locking Creek Road 60 10 Spot improvement, Stop & speed limit signs. Fisher Road 86 10 Install speed limit signs X6, cut brush in ditches Alysworth Road 82 10 Install Speed limit signs x6, stop sign, Keep right at outcrop x2, brush cutting. O'Neil Road N/A 10 Install "Enter at own risk" sign Jewell Road 50 10 spot repair, signage McDonald Road N/A N/A "Enter at own risk" sign Ogden Road 53 10 Grading, speed limit, dead end & brushing required. Peterson Road 80 10 Grading, Speed limit & dead end sign Larson Road N/A N/A Install Enter at own risk Cherlen Bay 75 10 Patch around manholes, shoulders and misc. spots Table 3.3.3 Utility Asset Name General Year Estimated Remaining Condition Constructed Life (Years) Water Treatment System 7 1969 20 150mmø Watermain PVC 7 1969 30 200mmø Watermain PVC 7 1969 30 300mmø Watermain PVC 7 1969 30 150mmø Watermain DI 7 1969 10 200mmø Watermain HDPE 7 1969 30 300mmø Watermain HDPE 7 1969 30 450mmø Watermain HDPE 8 2015 40 Sewage Lagoon 8 2014 20 200mmø Sanitary Main 7 1969 40 250mmø Sanitary Main 7 1969 40 300mmø Sanitary Main 7 1969 60 100mmø Sanitary Forcemain 7 1987 40 150mmø Sanitary Forcemain 7 1987 40 Unknown ø Sanitary Main 7 1969 40 Roy Street Lift Station 5 1969 10 Kaemingh Lift Station 7 1995 15 HWY 11/71 Lift Station 7 1969 15 Street Lights 9 2008 22 17 Table 3.3.4 Vehicles Asset Name General Year Estimated Remaining Condition Constructed Life (Years) Fire Tanker 7 1992 17 Superior Unit #1 Fire Truck 8 2004 20 Rescue 1 8 2010 20 Truck 107 8 1982 10 Chevy Silverado 4X4 8 2009 8 Street Sweeper 7 1973 8 Dump Truck 8 2015 20 Zamboni 8 2012 10 John Deere Tractor 7 1995 8 Dodge Ram 2004 7 2004 7 GMC Sierra Extended Cab 8 2011 15 John Deere Loader 7 2005 15 Dodge Ram 2001 6 2001 5 Handicapped Van 8 2005 15 Volvo Excavator 9 2015 20 GMC Sierra Extended Cab 8 2011 15 Volvo Grader 8 2005 15 Notes and Assumptions: 1. Estimated life value assumes that identified maintenance is completed, and regular ongoing maintenance is performed. Estimated remaining life for vehicles in good condition is assumed to be ten (10) years. 2. Building Condition rating scale is as follows: 0 = Closed 1 - 3 = Poor 4 - 6 = Fair 7 - 9 = Good 10 = New 3. Roads use Pavement Condition Rating value from 0-100. 18 4.0 Desired Levels of Service For the purposes of this AMP, it is assumed that all assets owned by the municipality will continue to be used for their existing purpose, at the existing level of service. All defined maintenance items are indicated based upon this assumption. This assumption was developed based upon the following from the Township's Official Plan document, adopted September 2013: "The Township is committed to actively seeking and encouraging new development that maintains and improves the quality of life, the health of existing businesses and diversifies the economy. " Furthermore, The Township of Emo Official Plan document has outlined levels of service regarding roads in Section 6.1: "Safe and efficient movement of people and goods within the Township and to and from adjacent municipalities is encouraged by this Plan. The road system should safely serve the Township but should not be developed to a standard or extended beyond which would result in a burden to the residents and taxpayers of the Township. The roads in the Township as shown on all schedules to this Plan include provincial highways and Township roads." Regarding reported speed limits. Please note the speed limits reported on our inspection sheets is the speed limit either posted or specified by the Township staff. It is not an endorsement of the limit as this would involve geometric, sight line, road width, etc. considerations which are beyond the scope of the AMP. 4.1 Assumptions & Performance Measures 1. It is assumed that all roads will be maintained, and rehabilitated as required to continue to offer the existing level of service. It is further assumed that the Official Plan will apply when an increase to a level of service is warranted, and that any increase in level of service will be offset by a corresponding increase in tax revenue. Our inspections include some deferred estimated cost such as road widening for roads which are only currently used as agricultural access which have been termed as a "deferred improvement" only justifiable should additional residential development occur to warrant the works. Our inspections also include recommendations to post signs on roads, or in some cases trails, advising "road is un- maintained and to be used at own risk". Estimated annual daily traffic ranges are appended 19 to this report. It is important to note that the surface age is unknown and is assumed to be 10 years, this is used to calculate the estimated surface value of roads. While the Township can control development within its boundaries, activities occurring in surrounding areas can impact levels of use. If an increase in traffic volume creates increased maintenance costs that cannot be offset by tax revenue, the Township should re-visit its financial plan to:  Determine the best means to cover the cost to maintain the existing level of service during the period of increased use, using the options outlined in the financial plan. Or  If it is not feasible to cover the cost to maintain the existing level of service, the Township could consider reducing the level of service. By reducing the level of service, the Township may deter the factors leading to increased use of the asset. 2. It is assumed that all buildings will continue to be used for their current purpose for the duration of the plan. If a change in service is required, it is assumed that any increase in level of service, or operating requirements will be offset by a corresponding increase in tax revenue. It is recommended that the Township follow up on all maintenance items identified in the inspection reports appended to the plan to ensure that all buildings can operate at their present level of service, and conform to code requirements. See the asset reports for a detailed listing of maintenance needs, and a description of the building. If new buildings are required, it is assumed that the costs to construct new structures would be offset by a corresponding increase in tax revenue, or by using a debt financing solution, as outlined in the Financial Plan. 3. Given the relatively static population trends in the Township, it is assumed that all recreation equipment will continue to be used for its current purpose, at a similar level of use, for the duration of the plan. If a change in service is required, it is assumed that any increase in level of service, or operating requirements will be offset by a corresponding increase in tax revenue. It is recommended that the Township continue to undertake regular maintenance to ensure that the equipment remains in good working order, and is safe to use. 20 4. It is assumed that all vehicles will continue to be used for their current purpose for the duration of the plan. It is recommended that the Township follow up on all maintenance items identified in the inspection reports appended to the plan to ensure that all vehicles can operate at their present level of service. It should be noted that while many of the vehicles are older, they are in good condition, and it is anticipated that with proper maintenance, the vehicles should last for the duration of the plan. Unless vehicles are identified for replacement in our estimates. Note: Detailed inspection reports regarding each asset are appended to this report. Descriptions of each asset are available under the General Description heading contained within each asset report. 21 5.0 Asset Management Strategy The asset management strategy is a set of planned actions that will allow the Township of Emo to ensure that its assets offer the desired levels of service, for a sustainable cost, while managing risk. This section summarizes the following:  Non-infrastructure solutions.  Maintenance activities.  Renewal / Rehabilitation activities.  Replacement activities.  Disposal activities.  Expansion activities. 5.1 Non-Infrastructure Solutions Non-infrastructure solutions are actions or policies that can lower costs or extend asset life. The Township of Emo has identified many of these solutions in their official plan which was approved in 2013, and is intended to last for a period of 20 years. Included in the Basis for the plan is the following:  The Township of Emo is characterized primarily by rural residential development and agriculturally based activities. The rural character of the Township will be maintained over the lifetime of this Plan.  Private water and sewage will continue to be the primary source of lot servicing in areas beyond the Village of Emo Settlement Area. As a result, developments that require communal or full municipal services will be only be considered only if the lands are within the Village of Emo Settlement Area and meet the criteria laid out in the official plan. Any application to extend services from an adjacent municipality will be considered only with an amendment to the Official Plan.  Much of the Township's existing non-residential development occurs in The Village of Emo Settlement Area. This Plan recognizes The Village of Emo Settlement Area as the continued focus of primary economic development in the Township.  It is assumed that if a development proceeds requiring affected services to be upgraded/improved that needs and associated costs will be included in the approvals required to advance the project and are beyond the scope of this plan. 22 Additionally, Section 5.1 of the plan indicates a mechanism for demand management, and a mechanism for directing development to limit the burden on existing road assets. It is recommended that the Township of Emo continue to undertake land use planning, undertake development in accordance with the Official Plan, and continue with the fiscally sound methodology outlined in the Official Plan. Doing so will help manage demand, and ensure that the Township develops in such a way that has a sustainable plan to cover the costs needed to maintain levels of service. 5.2 Maintenance Activities A detailed list of maintenance activities for each asset is appended to this report. It is recommended that the Township undertake the identified maintenance within the timeframe identified in each asset report. Some significant maintenance activities that were identified during the inspection process include (these include critical health and safety issues and building code issues): 1. Install rated door and closer in mechanical room, remove stored material in mechanical room & replace battery for emergency lighting in Municipal Office. 2. Install additional guard on entrance stair rail, Provide 1hr f.r.r. at mech. Room, Upgrade door to compressor room, Install handrails on stairs, and remove stored materials from mechanical room at the Curling Club Building. 3. Install rated door & closer for furnace room, Drywall at underside of stairs in storage room & Install smoke/CO detector in furnace /HRV room (Toy Library). 4. Install grab bars in Sports field Building. 5. Install carbon monoxide detector in OPP Residence #21. 6. Install emergency exit signs & carbon monoxide detector in OPP Residence #25. 7. Mount fire extinguisher, install exit and carbon monoxide detector in OPP Residence #31 8. Lower concrete curb at main entrance of Arena. 9. Install door closer on mechanical room door, label electrical panel in hallway near washrooms and install smoke/CO detector in mech. room in OPP building. 10. Install handrails on stairs in Little House. 11. Replace ladder & tighten hand grab at Water Treatment System lift station. 23 5.3 Renewal / Rehabilitation Activities A detailed list of maintenance activities for each asset is appended to this report. It is recommended that the Township undertake the identified maintenance within the timeframe identified in each asset report. Renewal / Rehabilitation costs are identified within each asset report. It should be noted that it is recommended that all roads be rehabilitated as described in the individual asset reports within a period of ten (10) years, as identified. It is recommended that the following roads should be rehabilitated in the present year. 1. George Road 2. O'Neil Road 3. Jewell Road 4. Larson Road In addition to the above recommendations roads requiring signage such as stop signs, speed limit signs, approaching curve signs, dead end signs etc. should be installed in the present year. 5.4 Replacement Activities A detailed list of maintenance activities for each asset is appended to this report. It is recommended that the Township undertake the identified maintenance within the timeframe identified in each asset report. When required, replacement costs are identified within each asset report. It is recommended that the Township replace the following assets as identified in the asset reports. 1. Replace wood siding at curling club. 2. Replace wood shakes on pavilion roof. 3. Replace loading dock doors with rollup door at water treatment plant. 4. Replace asphalt surface of tennis court. 5. Replace various fencing posts at sewage lagoon. 6. Replace magnesium meter, pipes and valves, and guide rails at Roy Street Lift Station. 7. Replace switch on pump #1 control panel. 8. Re surface portions of Meadow Street. 9. Replace curb and gutters on Birch Place road. 10. Resurface Canning Lane - Paved. 11. Resurface Jessie Street West. 24 12. Resurface road on Florence Street - Surface Treated. 13. Replace various sections of sidewalk located on Roy Street - Paved. 14. Re-pave asphalt on Robert Street - Paved. 15. Re-pave Station Street. 16. Re-surface Strachan Drive. 17. Replace 150mmø Watermain DI with new PVC watermain. 5.5 Disposal Activities It is recommended that the Township dispose of assets in accordance with their procurement policy, if the asset has potential value (e.g. used vehicle, building). Otherwise, the Township should dispose of assets in accordance with environmental regulations as required. Disposal of assets should occur in accordance with the Official Plan. 5.6 Expansion Activities Expansion activities should occur in accordance with the Official Plan, which utilizes a fiscally responsible approach to development focussed on The Village of Emo Settlement Area, which limits financial exposure. 25 6.0 Financial Strategy 6.1 General overview of financial plan requirements In order for an AMP to be effectively put into action, it must be integrated with financial planning and long-term budgeting. The development of a comprehensive financial plan will allow the Township of Emo to identify the financial resources required for sustainable asset management based on existing asset inventories, desired levels of service and projected growth requirements. The following pyramid depicts the various cost elements and resulting funding levels that should be incorporated into AMP's that are based on best practices. 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: a) The financial requirements for:  existing assets  existing service levels  requirements of contemplated changes in service levels (none identified for this plan) 26  requirements of anticipated growth (none identified for this plan) b) Use of traditional sources of municipal funds:  tax levies  user fees  reserves  debt  development charges (not applicable) c) Use of non-traditional sources of municipal funds:  reallocated budgets (not required for this AMP)  partnerships (not applicable)  procurement methods (no changes recommended) d) Use of other orders of government funds:  Federal gas tax  grants If the financial plan component of an AMP 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 municipality's approach to the following: a) In order to reduce financial requirements, consideration has been given to revising service levels downward. b) All asset management and financial strategies have been considered. For example:  If a zero debt policy is in place, is it warranted? If not, the use of debt should be considered.  Do user fees reflect the cost of the applicable service? If not, increased user fees should be considered.  Our organization recently attended the Ontario Good Roads Association meeting in which both the Premier and Minister of Infrastructure encouraged the carrying of a maximum of 11% debt load by municipalities. This is now considered prudent as it multi-generations. Thus a 10-year plan to finance a bridge would be viewed quite favourably by both Provincial and Federal funding agencies. This AMP includes recommendations that avoid long-term funding deficits. 27 6.2 Financial information relating to the Township of Emo's AMP 6.2.1 Funding objective We have developed scenarios that would enable the Township of Emo to achieve full funding within 10 years for the following assets: a) Tax funded assets - Road network; Water and Wastewater; Facilities; Equipment and Other For each scenario developed we have included strategies, where applicable, regarding the use of tax revenues, grant revenues, reserves and debt financing. It should be noted that in developing these scenarios it was projected that the percentage of total taxation revenue allocated to capital projects will remain consistent with prior year's allocations. In years prior to 2016 approximately 28% of total taxation revenue was allocated to capital projects and this was the percentage that was used for all projected taxation revenue dedicated to capital throughout this financial plan. It should be noted that the level of taxation revenue that the Township is able to dedicate to capital is quite exceptional as, for example, the City of Thunder Bay is only able to allocate approximately 10% of its budget to capital. 6.3 Tax funded assets 6.3.1 Current funding position Tables 1 and 2 outline, by asset category, the Township of Emo's annual asset investment requirements, projected funding positions and funding changes projected and required to achieve full funding on assets funded by taxes. 28 Table 1: Summaries of Projected Annual Infrastructure Requirements and Projected Annual Funding 2016 Summary of Projected Annual Infrastructure Requirements and Projected Annual Funding 2016 Projected Annual Funding Available Asset Category Projected 2016 Investment Required Taxes Gas Tax Other Total 2016 Projected Annual Surplus Roads $579,517 $132,926 $72,504 $ - $209,430 $(370,087) Water & Wastewater $126,100 $126,100 $ - $ - $126,100 $ - Facilities $89,905 $89,905 $ - $ - $89,905 $ - Equipment $34,250 $34,250 $ - $ - $34,250 $ - Other $15,000 $15,000 $ - $ - $15,000 $ - Total $844,772 $402,181 $72,504 $ - $474,685 $(370,087) Years 1 to 5 Summary of Projected Annual Infrastructure Requirements and Projected Annual Funding Year 1 to 5 Projected Annual Funding Available Asset Category Projected Year 1 - 5 Investment Required Taxes Gas Tax Other Total Year 1 - 5 Projected Annual Deficit Roads $107,387 $144,727 $72,504 $ - $217,231 $109,844 Water & Wastewater $250,000 $130,000 $ - $ 60,000 $190,000 $ (60,000) Facilities $118,998 $118,998 $ - $ - $118,998 $ - Equipment $25,000 $25,000 $ - $ - $25,000 $ - Other $15,000 $15,000 $ - $ - $15,000 $ - Total $516,385 $433,725 $72,504 $ 60,000 $566,229 $49,844 29 Years 6 to 10 Summary of Projected Annual Infrastructure Requirements and Projected Annual Funding Year 6 to 10 Projected Annual Funding Available Asset Category Projected Year 6 - 10 Investment Required Taxes Gas Tax Other Total Year 6 - 10 Projected Annual Surplus Roads $204,334 $354,671 $72,504 $ - $298,658 $94,324 Water & Wastewater $122,000 $122,000 $ - $ - $122,000 $ - Facilities $85,000 $85,000 $ - $ - $85,000 $ - Equipment $25,000 $25,000 $ - $ - $25,000 $ - Other $15,000 $15,000 $ - $ - $15,000 $ - Total $451,334 $473,154 $72,504 $ - $545,658 $94,324 6.3.2. Recommendations for full funding The annual investment requirement for roads, water/wastewater facilities and equipment and the annual revenue allocated to these assets are: Table 2: Summary of Annual Investment Requirements and Annual Revenue Allocated Annual Investment Requirement Annual Revenue Allocated Annual Surplus (Deficit) 2016 $844,772 $474,685 $(370,087) Years 1 to 5 $516,385 $566,229 $49,844 Years 6 to 10 $451,334 $545,658 $94,324 Therefore, the cumulative annual surplus for capital investments is projected to be $350,753 over the next 10 years. These infrastructure categories are projected to be funded via taxation revenue and Gas Tax funding at 75% of the townships long-term requirements assuming no additional capital spending other than the maintenance costs projected. The Township of Emo budgeted for annual tax revenues of $1,398,403 in 2015. Planned funding would require an increase in tax revenue corresponding to the projected annual inflation rate. We recommend that over the next 10 years an annual tax increase corresponding to the annual inflation rate be implemented in order to achieve the required total tax revenue. This involves full funding being achieved over 10 years by: a) Increasing tax revenues by the annual inflation rate each year for the next 10 years solely for the purpose of full funding to the 5 asset categories covered by this AMP. b) Allocating 100% of the gas tax revenue (currently $72,504) to the roads category. 30 c) Applying for grant funding as required. d) Allocating reserve funds to the five asset categories as outlined below. e) Utilizing debt financing as required as outlined below. It should be noted that several major capital outlays will be required in the next 5 years in order to achieve all of the requirements outlined in the AMP. These major capital items consist of: a) The Water Treatment System requires $628,100 in improvements which include a new line and utility locator. b) Canning Lake Road will require repaving of $66,150 c) Emo Road will require repaving of $125,000 d) Jewell Road will require upgrading of $160,000 e) Meadow Street will require upgrading of $103,000 f) O'Neill Road will require upgrading of $200,900 In performing our projections these expenditures were not assigned to any particular year within the next 5 years. Instead these expenditures were projected in equal annual amounts throughout the next 5 years as it was not possible for us to project specifically which year the Township will perform these major repairs. This method ensures that all of the expenditures are recorded within the projections however it does fail to indicate that these large expenditures will not be incurred in smaller annual amounts but will instead be incurred in larger less reliable expenditure amounts The overall affect by the end of the 5 year and 10 year projections will be the same however the actual expenditures will not be incurred as smoothly as these projections indicate. Although this option achieves full funding on an annual basis in 10 years and provides financial sustainability over the period modeled (to 2050), the recommendations do require prioritizing capital projects to fit the resulting annual funding available. Prioritizing these and future projects will require the age based data to be replaced by condition based data. 6.4 Use of Grant Funding 6.4.1 Grant funding For the purposes of the Township's financial plan we have accounted for three possible scenarios pertaining to possible grant funding for the Water Treatment Plant improvements. As indicated in the report a new line and utility locator is recommended to be installed in the Water Treatment Facility within the next 5 years at an estimated total cost of $600,000. Given the costs projected for rehabilitation of the Township's various other assets over the 1 to 5 year period we project that the township would be able to fund the Water Treatment Plant upgrades through taxation revenue and reserves alone however these costs could cause a strain on the financial wellbeing of the Township in the next 5 to 10 years. Table 3 indicates scenarios regarding grant funding for the improvements to the Water Treatment Plant. 31 Table 3: Years 1 to 5 Grant Funding Scenarios Primarily Grant Funded Scenario Investment Required Grant Funding Debt Financing Taxation Revenue Surplus (Deficit) Water Treatment Plant Upgrades $600,000 $600,000 $ - $ - $ - Primarily Debt Financed Scenario Investment Required Grant Funding Debt Financing Taxation Revenue Surplus (Deficit) Water Treatment Plant Upgrades $600,000 $ - $600,000 $ - $ - Grant Funded and Debt Financed Scenario Investment Required Grant Funding Debt Financing Taxation Revenue Surplus (Deficit) Water Treatment Plant Upgrades $600,000 $300,000 $300,000 $ - $ - It should be noted that if the Township is unable to receive grant funding for 100% of the Water Treatment Plant upgrades debt financing could be required to complete the funding of the project. In the "Use of Debt" section below we outline potential financing costs related to any debt financing required as part of this financial plan. 6.4.2 Recommendation In our opinion, the most beneficial scenario for the Township would be to have the Water Treatment Plant upgrades be 100% grant funded, however we also believe this is the least likely scenario given the provincial and federal government's history of requiring municipalities to participate as partners in major capital projects. In our opinion the most likely scenario would be that the Township is able to find grant funding for a portion of the bridge replacement project sometime within the 1 to 5 year period, in this case we assume the project is 50% grant funded and 50% debt financed obviously the portions grant funded as compared to financed may vary from these estimates. Possible funding sources for the project would be Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) or the Small Rural & Northern Municipal Infrastructure Fund. There is also the possibility that the Township is unable to locate grant funding for the Water Treatment Plant upgrades and is required to 100% finance the project. We believe that the 32 Township would have minimal trouble 100% financing the project given the Township's strong historical financial data and the data included indicating that tax revenues will be earned to repay any debt incurred within the next 10 years. Obviously, the negative consequences of fully financing the project would be that the Township would incur significantly more financing costs than if the project was partially or fully grant funded. 6.5 Use of debt 6.5.1 Use of debt For reference purposes, table 4 outlines the premium paid on a project if financed by debt. For example, a $1M project financed at 3.0% over 15 years would result in a 26% premium or $260,000 of increased costs due to interest payments. For simplicity, the table does not take into account the time value of money or the effect of inflation on delayed projects. Table 4: Total Interest Paid as a % of Project Costs Interest Rate Number of Years Financed 5 10 15 20 25 30 7.0% 22% 42% 65% 89% 115% 142% 6.5% 20% 39% 60% 82% 105% 130% 6.0% 19% 36% 54% 74% 96% 118% 5.5% 17% 33% 49% 67% 86% 106% 5.0% 15% 30% 45% 60% 77% 95% 4.5% 14% 26% 40% 54% 69% 84% 4.0% 12% 23% 35% 47% 60% 73% 3.5% 11% 20% 30% 41% 52% 63% 3.0% 9% 17% 26% 34% 44% 53% 2.5% 8% 14% 21% 28% 36% 43% 2.0% 6% 11% 17% 22% 28% 34% 1.5% 5% 8% 12% 16% 21% 25% 1.0% 3% 6% 8% 11% 14% 16% 0.5% 2% 3% 4% 5% 7% 8% 0.0% 0% 0% 0% 0% 0% 0% It should be noted that current interest rates are near all-time lows. Sustainable funding models that include debt need to incorporate the risk of rising interest rates. The following graph shows where historical lending rates have been: 33 Table 5: Historical Prime Lending Rates As illustrated in table 4, a change in 15 year rates from 3% to 6% would change the premium from 26% to 54%. Such a change would have a significant impact on a financial plan. Historically, the Township of Emo has used debt financing minimally for capital projects and as of the 2015 fiscal year the Township has minimal outstanding debt. As illustrated in this plan Emo could be required to finance a portion of the investment requirements under the asset management plan. Table 6 outlines projected financing costs resulting from various funding scenarios related to financing of the Water Treatment Plant upgrades: Table 6: Planned Debt Financing Principal Term Interest Rate Monthly Payment Financing Costs $300,000 10 years 3% $2,897 $47,619 $300,000 10 years 6% $3,331 $99,674 $300,000 20 years 3% $1,664 $99,310 $300,000 20 years 6% $2,149 $215,830 $600,000 10 years 3% $5,794 $95,237 $600,000 10 years 6% $6,661 $199,349 $600,000 20 years 3% $3,328 $198,621 $600,000 20 years 6% $4,299 $431,661 As indicated above ideally Emo should be able to receive grant funding for at least 50% of the Water Treatment Plant upgrades and could then finance only 50% of the project. If this were the case the financing costs for the project would be kept to a minimum. The financing for the project could be kept to shorter term and the monthly payments would not be overly cumbersome under the Township's budget. 34 6.5.2 Recommendation Our recommendation is that if the project is grant funded approximately 50% that Emo obtain financing for at most a 10 year term in order to minimize the debt financing costs. Should Emo be required to fully finance the project it would be overall most beneficial to the Township to try to keep the term loan at a maximum of 10 years in order to minimize financing costs however given how cumbersome to the annual budget the size of the monthly payment might become we would suggest that the Township review its budget to ensure that the monthly financing payments are not overly cumbersome. By utilizing debt funding for this project the Township will be able to avoid a massive reduction to the Township's reserve funds over the next 10 years and will be able to better manage its cash flows. Given the fact that the other orders or government are supporting the practice of municipalities using debt to finance major capital projects, as outlined earlier, this use of debt by Emo would likely assist with future funding applications. 6.6 Use of Reserves 6.6.1 Available reserves Reserves play a critical role in long-term financial planning. The benefits of having reserves available for infrastructure planning include:  the ability to stabilize tax rates when dealing with variable and sometimes uncontrollable factors  financing one-time or short-term investments  accumulating the funding for significant future infrastructure investments  managing the use of debt  normalizing infrastructure funding requirements By reserve type, table 7 outlines the details of the reserves available to the Township of Emo budgeted for 2015. 35 Table 7: Summary of Reserves Available Reserve Type Balance Reserve Funds Capital $1,014,609 Deferred Revenue Gas Tax $45,479 There is considerable debate in the municipal sector as to the appropriate level of reserves that a municipality 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:  breadth of services provided  age and condition of infrastructure  use and level of debt  economic conditions and outlook  internal reserve and debt policies We are projecting that in order to fund the major capital expenditures in the roads sector the Township will be required to utilize $370,087 of its capital reserves in 2016 in order to ensure that the roads maintenance deficit is properly funded. 6.6.4 Recommendation Under the plan the Township of Emo will be required to use and contribute to reserve funds as necessary in order to implement the financial plan required to fund the AMP outlined. It is possible the Township of Emo could utilize reserves instead of debt to fund the Water Treatment Plant upgrades required by the AMP however this might result in a significant reduction of the Township of Emo's reserves for a 5 to 10 year period a tax revenues are collected to replenish the reserve funds. If possible it would be most beneficial to avoid such a reduction of reserves and to utilize grant funding a debt options to fund the Water Treatment Plant upgrades. 36 6.7 Summary of Financial Plan Table 10 illustrates the expected annual capital investments, revenues, reserve allocations and debt financing required under the recommended financial plan. Table 10: Summary of Annual Capital Transactions Under the Financial Plan Summary of 2016 Capital Transactions Under the Financial Plan Asset Category 2016 Annual Investment Required 2016 Projected Taxation Revenue 2016 Projected Gas Tax 2016 Projected Grant Revenue 2016 Surplus (Deficit) 2016 Projected Reserve Allocations 2016 Debt Financing 2016 Adjusted Surplus (Deficit) Roads $579,517 $136,926 $72,504 $ - $(370,087) $(370,087) $ - $- Water & Wastewater $126,100 $126,100 $ - $ - $ - $- $ - $ - Facilities $89,905 $89,905 $ - $ - $ - $ - $ - $ - Equipment $34,250 $34,250 $ - $ - $ - $ - $ - $ - Other $15,000 $15,000 Total $844,772 $402,181 $72,504 $ - $(370,087) $370,087 $ - $- Summary of Year 1 to 5 Annual Capital Transactions Under the Financial Plan Asset Category Year 1 - 5 Annual Investment Required Year 1 - 5 Projected Annual Taxation Revenue Year 1 - 5 Projected Annual Gas Tax Year 1 - 5 Projected Annual Grant Revenue Year 1 - 5 Annual Surplus (Deficit) Year 1 - 5 Projected Annual Reserve Allocations Year 1 - 5 Annual Debt Financing Year 1 - 5 Adjusted Annual Surplus (Deficit) Roads $107,387 $144,727 $72,504 $ - $109,844 $109,844 $ - $ - Water & Wastewater $250,000 $130,000 $ - $60,000 $(60,000) $ - $60,000 $ - Facilities $118,998 $118,998 $ - $ - $ - $ - $ - $ - Equipment $25,000 $25,000 $ - $ - $ - $ - $ - $ - Other $15,000 $15,000 $ - $ - Total $516,385 $433,725 $72,504 $60,000 $49,844 $109,844 $60,000 $ - 37 Summary of Year 6 to 10 Annual Capital Transactions Under the Financial Plan Asset Category Year 6 - 10 Annual Investment Required Year 6 - 10 Projected Annual Taxation Revenue Year 6 - 10 Projected Annual Gas Tax Year 6 - 10 Projected Annual Grant Revenue Year 6 - 10 Annual Surplus (Deficit) Year 6 - 10 Projected Annual Reserve Allocations Year 6 - 10 Annual Debt Financing Year 6 - 10 Adjusted Annual Surplus (Deficit) Roads $204,334 $226,154 $72,504 $ - $94,324 $94,324 $ - $ - Water & Wastewater $122,000 $122,000 $ - $ - $ - $ - $ - $ - Facilities $85,000 $85,500 $ - $ - $ - $ - $ - $ - Equipment $25,000 $25,000 $ - $ - $ - $ - $ - $ - Other $15,000 $15,000 $ - $ - $ - $ - $ - $ - Total $451,334 $473,154 $72,504 $ - $94,324 $94,324 $ - $ - The financial plan will result in the Township of Emo annually increasing its tax rate at a rate equal to the annual inflation rate. It is assumed that Gas Tax revenue will remain constant at $72,504 over the next 10 years as there is no indication from the information reviewed that these revenues will significantly increase. We are assuming that the Township of Emo will be able to qualify for grant revenue in the amount of $300,000 during the years 1 to 5 periods to assist in financing a Water Treatment Facility upgrade. We are also recommending debt financing be utilized to make up the difference between the grant funding received and the investment required for the recommended Water Treatment Plant upgrade. Finally, we are recommending the usage of reserve funds as necessary and the buildup of reserves where possible. Of course, it is possible that the township could use some of the funds that the plan has designated to increase reserve balances in order to assist in payments of the debt financing's principal. It should be noted that in preparing this financial plan several projections and estimates were required and it is possible that actual future results could differ materially from the projections and estimates that were utilized in preparing the above financial plan.