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Asset
Management
Plan
Municipality of Hastings Highlands
June 2025
This Asset Management Program was prepared by:
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asset management, budgeting & GIS solutions
Municipality of Hastings Highlands
2025 Asset Management Plan
i
Table of Contents
Table of Contents ......................................................................................... i
List of Figures ............................................................................................. ii
List of Tables .............................................................................................. iii
1.
Executive Summary ............................................................................. 4
2.
Introduction and Context ...................................................................... 8
3.
State of the Infrastructure .................................................................. 25
4.
Proposed Levels of Service.................................................................. 34
5.
Road Network ................................................................................... 46
6.
Bridges & Culverts ............................................................................. 60
7.
Buildings .......................................................................................... 71
8.
Land Improvements .......................................................................... 82
9.
Machinery & Equipment ...................................................................... 93
10.
Vehicles .......................................................................................... 103
11.
Financial Strategy ............................................................................ 113
12.
Impacts of Growth............................................................................ 124
Appendix A: Levels of Service Maps & Images ............................................... 127
Appendix B: 10-Year Capital Requirements ................................................... 135
Appendix C: Condition Assessment Guidelines ............................................... 136
Appendix D: Risk Rating Criteria ................................................................. 138
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List of Figures
Figure 1: Core and Non-core Asset Categories ................................................. 4
Figure 2: Total Cost of Asset Ownership ........................................................ 11
Figure 3: Foundational Asset Management Documents .................................... 12
Figure 4: Lifecycle Management Typical Lifecycle Interventions ......................... 15
Figure 5: Risk Equations ............................................................................. 16
Figure 6: Service Life Remaining Calculation .................................................. 20
Figure 7: Target Reinvestment Rate Calculation ............................................. 20
Figure 8: Actual Reinvestment Rate Calculation .............................................. 20
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List of Tables
Table 1: Hastings Highlands & Ontario Census Information ................................ 9
Table 2: Risk Analysis - Types of Consequences of Failure ................................ 17
Table 3: Tax-Funded Assets ........................................................................ 19
Table 4: Scenario 1 Available Capital Funding Over Next 10 Years ..................... 39
Table 5: Scenario 2 Available Capital Funding Over Next 10 Years ..................... 41
Table 6: Scenario 3 Available Capital Funding Over Next 10 Years ..................... 43
Table 28: Phasing in Annual Tax Changes .................................................... 118
Table 29: Scenarios Annual Impact on Taxation ............................................ 118
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2025 Asset Management Plan
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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 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 Municipality of Hastings Highlands 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
Core
Assets
Road Network
Bridges &
Culverts
Non-Core
Assets
Buildings
Land
Improvements
Machinery &
Equipment
Vehicles
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1.2. Compliance
With the development of this AMP the Municipality of Hastings Highlands 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.
1.3. Findings
The overall replacement cost of the asset categories included in this AMP totals
$160.3 million. 63% of all assets analyzed in this AMP are in fair or better condition
and assessed condition data was available for 85% of assets. For the remaining
15% 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
(paved roads, bridges and culverts and buildings) and replacement only strategies
(all other assets) 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, and achieve long-term sustainability, the
Municipality's average annual capital requirement totals $6.6 million. Based on a
historical analysis of sustainable capital funding sources, the Municipality is
committing approximately $2.2 million towards capital projects or reserves per
year. As a result, there is currently an annual funding gap of $4.4 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 Municipality. Strategic
asset management planning is an ongoing and dynamic process that requires
continuous improvement and dedicated resources.
Hastings Highlands' previous Plan included the total closure and post-closure
liability costs for the landfill sites. However, this plan excludes these landfill-related
costs for the following reasons:
1. Nature of Landfill Assets: The AMP primarily addresses assets that involve
capital costs and replacement, such as buildings and machinery. Landfills,
being land-based and lacking physical structures that require replacement,
do not align with the typical scope of capital asset management.
2. Specialized Management Needs: The management of landfills involves
distinct operational, environmental, and regulatory requirements that are not
focused on capital replacement. Instead, they are centered on long-term
environmental management, compliance, and monitoring.
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3. Lifecycle and Cost Structure: The lifecycle costs of landfills, including
closure and post-closure liability, are managed through separate financial
structures and regulatory frameworks, distinct from the capital costs and
replacement planning covered in this AMP.
The current AMP therefore excludes the costs associated with the total closure and
post-closure liabilities for the 9 landfill sites, comprising 6 landfills and 3 transfer
stations. These costs are addressed through separate financial plans and
environmental management strategies.
Annual Reports for each waste location are submitted to the Ministry of the
Environment, Conservation and Parks each year to meet the reporting requirements
of the Environmental Compliance Approval (ECA). These reports are prepared in
accordance with the Groundwater and Surface Water: Technical Guidance
Document, also known as the 'WDS Technical Guidance.'
For detailed information on Hastings Highlands' waste disposal sites, please refer to
these annual reports.
1.4. Limitations and Constraints
The asset management program development required substantial effort by staff, it
was developed based on best-available data, and is subject to the following broad
limitations, constrains, and assumptions:
-
The analysis is highly sensitive to several critical data fields, including an
asset's estimated useful life, replacement cost, quantity, and in-service
date. Inaccuracies or imprecisions in any of these fields can have
substantial and cascading impacts on all reporting and analytics.
-
User-defined and unit cost estimates, based typically on staff judgment,
recent projects, or established through completion of technical studies,
offer the most precise approximations of current replacement costs. When
this isn't possible, historical costs incurred at the time of asset acquisition
or construction can be inflated to present day. This approach, while
sometimes necessary, can produce inaccurate estimates.
-
In the absence of condition assessment data, age was used to estimate
asset condition ratings. This approach can result in an over- or
understatement of asset needs. As a result, financial requirements
generated through this approach can differ from those produced by in-
field assessments.
-
The risk models are designed to support objective project prioritization
and selection. However, in addition to the inherent limitations that all
models face, they also require availability of important asset attribute
data to ensure that asset risk ratings are valid, and assets are properly
stratified within the risk matrix. Missing attribute data can misclassify
assets.
These limitations have a direct impact on most of the analysis presented, including
condition summaries, age profiles, long-term replacement and rehabilitation
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forecasts, and shorter term, 10-year forecasts that are generated from Citywide,
the Municipality's primary asset management system.
The Municipality has taken important steps in building its asset management
program, including developing a more complete and accurate asset register--a
substantial initiative. Continuous improvement to this inventory will be essential in
maintaining momentum, supporting long-term financial planning, and delivering
affordable service levels to the community
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2. Introduction and Context
2.1. Community Profile
Hastings Highlands is located East of Algonquin Park and West of the City of
Ottawa, in Hastings County. The Municipality consists predominantly of rural areas,
along with several semi-urban settlements scattered throughout its territory.
The natural landscapes of forests, lakes, and rivers in Hastings Highlands provide
plentiful opportunities for outdoor activities like hiking, fishing, camping, and
boating. Various communities and hamlets across the county boast unique
character and a strong sense of community. Local festivals and events throughout
the year celebrate the area's rich cultural heritage. Economically, Hastings
Highlands thrives as a lake-based economy and relies on industries such as
forestry, tourism, agriculture, and small businesses, which play a vital role in
preserving the area's local character and supporting a lively community life.
The current municipality of Hastings Highlands was incorporated on January 1,
2001, by amalgamating the former Municipalities of Bangor, Wicklow and McClure,
Herschel and Monteagle.
Located in the northernmost portion of Hastings County, the Municipality comprises
the communities of Baptiste, Bell Rapids, Birds Creek, Centreview, Graphite,
Greenview, Hickey Settlement, Hughes, Hybla, Lake St. Peter, Maple Leaf,
Maynooth Station, McAlpine Corners, McGarry Flats, Monteagle Valley, Musclow,
Purdy, Scotch Bush, Scott Settlement and York River.
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In the 2021 Census of Population conducted by Statistics Canada, the
demographics for Hastings Highlands are as follows:
Census Characteristic
Hastings
Highlands
Hastings
County
Ontario
Population 2021
4,385
145,746
14,223,942
Population Change 2016-
2021
+7.5%
+6.8%
5.8%
Total Private Dwellings
3,529
68,518
5,929,250
Population Density
4.5/ km2
24.2/ km2
15.9/km2
Land Area
966.58 km2
6,013.35 km2
892,411.76 km2
Table 1: Hastings Highlands & Ontario Census Information
2.2. Climate Change
Climate change can cause severe impacts on human and natural systems around
the world. The effects of climate change include increasing temperatures, higher
levels of precipitation, droughts, and extreme weather events. In 2019, Canada's
Changing Climate Report (CCCR 2019) was released by Environment and Climate
Change Canada (ECCC).
The report revealed that between 1948 and 2016, the average temperature
increase across Canada was 1.7°C; moreover, during this time period, Northern
Canada experienced a 2.3°C increase. The temperature increase in Canada has
doubled that of the global average. If emissions are not significantly reduced, the
temperature could increase by 6.3°C in Canada by the year 2100 compared to 2005
levels. Observed precipitation changes in Canada include an increase of
approximately 20% between 1948 and 2012. By the late 21st century, the
projected increase could reach an additional 24%. During the summer months,
some regions in Southern Canada are expected to experience periods of drought at
a higher rate. Extreme weather events and climate conditions are more common
across Canada. Recorded events include droughts, flooding, cold extremes, warm
extremes, wildfires, and record minimum arctic sea ice extent.
The changing climate poses a significant risk to the Canadian economy, society,
environment, and infrastructure. The impacts on infrastructure are often a result of
climate-related extremes such as droughts, floods, higher frequency of freeze-thaw
cycles, extended periods of high temperatures, high winds, and wildfires. Physical
infrastructure is vulnerable to damage and increased wear when exposed to these
extreme events and climate variabilities. Canadian Municipalities are faced with the
responsibility to protect their local economy, citizens, environment, and physical
assets.
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2.2.1. Hastings Highlands Climate Profile
The Municipality is expected to experience notable effects of climate change which
include higher average annual temperatures, and an increase in total annual
precipitation. According to Climatedata.ca, a collaboration supported by
Environment and Climate Change Canada (ECCC), the Municipality may experience
the following trends:
Higher Average Annual Temperature:
-
Between the years 1971 and 2000 the annual average temperature was
4.2ºC
-
Under a high emissions scenario, the annual average temperatures are
projected to be 6.9ºC by the year 2050, 8.9ºC for the 2051-2080 period, and
10.7ºC by the end of this century.
Increase in Total Annual Precipitation:
-
Under a high emissions scenario, Hastings Highlands is projected to
experience a 13% increase in precipitation by the year 2080 and a 18%
increase by the end of the century.
Increase in Frequency of Extreme Weather Events:
-
It is expected that the frequency and severity of extreme weather events will
increase.
2.2.2. Consideration of Climate Change with Asset
Management Strategies
Asset management practices aim to deliver sustainable service delivery - providing
services to residents today without compromising the services and well-being of
future residents. Climate change threatens sustainable service delivery by reducing
the useful life of assets and increasing the risk of asset failure. Achieving desired
levels of service can become more challenging due to climate change impacts such
as flooding, high heat, drought, and more frequent and intense storms.
To achieve sustainable service delivery, climate change considerations should be
incorporated into asset management practices. Integrating asset management and
climate change adaptation adheres to industry best practices and enables the
development of a holistic approach to risk management.
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.
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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 2: 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.
2.3.1. Foundational Documents
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.
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2025 Asset Management Plan
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Figure 3: Foundational Asset Management Documents
Strategic Plan
The strategic plan has a direct, and cascading impact on asset management
planning and reporting, making it a foundational element. At the beginning of each
term, Council holds strategic planning exercises and discussions to identify major
initiatives and administrative improvements it wishes to achieve during its tenure.
Staff then identify the scope, resources, timing & other logistical matters associated
with proposed initiatives.
As part of the Strategic Plan, Council is committed to regularly updating and
implementing its Asset Management Plan. Council plans to achieve this by
maintaining long-term capital and asset management strategies, future operating
and capital budgets will be effectively planned and managed.
Asset Management Policy
An asset management policy represents a statement of the principles guiding the
municipality'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.
Hastings Highlands approved policy FIN-09 "Finance Policy - Strategic Asset
Management Policy" on June 26th, 2019, in accordance with Ontario Regulation
588/17.
The stated objectives of the policy are to:
Strategic
Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
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2025 Asset Management Plan
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-
Develop and maintain inventories of its Municipal Infrastructure;
-
Maintain and manage Municipal Infrastructure to support public safety,
community well-being and community goals;
-
Monitor standards and service levels to ensure that they meet and support
the Municipality's goals, plans and policies;
-
Establish asset replacement strategies using full-life cycle costing principles;
-
Plan financially for the appropriate level of maintenance of assets to deliver
service levels and extend the useful life of assets while meeting all statutory
requirements; and
-
Plan for and provide stable long term funding to replace and/or renew and/or
decommission Municipal Infrastructure.
The policy provides a foundation for the development of an asset management
program within the Municipality. It covers key components that define a
comprehensive asset management policy:
-
The policy's objectives dictate the use of asset management and data
management practices to ensure all assets meet the expected levels and
provide the desired levels of service in the most efficient and effective
manner;
-
The policy commits to, where appropriate, incorporating asset management
in the Municipality's other plans;
-
There are formally defined roles and responsibilities of internal staff;
-
The key principles include the use of a cost/benefit analysis in the
management of risk; and
-
The policy statements are well defined.
-
An asset management policy represents a statement of the principles guiding
the Municipality's approach to asset management activities as well as their
commitment. It aligns with the organization and provides clear direction to
municipal staff on their roles and responsibilities.
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 Municipality plans to achieve asset management objectives
through planned activities and decision-making criteria.
The Municipality of Hastings Highlands'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 presents the outcomes of the Municipality of Hastings
Highlands's asset management program and identifies the resource requirements
needed to achieve a defined level of service. The AMP typically includes the
following content:
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-
State of Infrastructure
-
Asset Management Strategies
-
Levels of Service
-
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 Municipality of Hastings
Highlands 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 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. 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. Figure 4 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.
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Figure 4: Lifecycle Management Typical Lifecycle Interventions
The Municipality's approach to lifecycle management is described within each asset
category. Developing and implementing a proactive lifecycle strategy will help staff
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 and 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,
- General level of cost is $
- All actions necessary for retaining an asset as near as practicable to
its original condition, but excluding rehabilitation or renewal.
Maintenance does not increase the service potential of the asset
- It slows down deterioration and delays when rehabilitation or
replacement is necessary.
Maintenance
- General level of cost is $$$
- Works to rebuild or replace parts or components of an asset, to
restore it to a required functional condition and extend its life, which
may incorporate some modification.
- Generally involves repairing the asset to deliver its original level of
service (i.e. milling and paving of roads) without resorting to
significant upgrading or replacement, using available techniques and
standards.
Rehabilitation / Renewal
- General level of cost is $$$$$
- The complete replacement of an asset that has reached the end of
its life, so as to provide a similar, or agreed alternative, level of
service.
- Existing asset disposal is generally included.
Replacement
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(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.
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. See Appendix D: Risk Rating Criteria for
definitions and the developed risk models.
Table 2 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.
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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.
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 2: 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 Hastings Highlands is
providing to the community and the nature and quality of that service. Within each
asset category, technical metrics and qualitative descriptions that measure both
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technical and community levels of service have been established and measured as
data is available.
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, the Province,
through O. Reg. 588/17, has provided qualitative descriptions that are required. For
non-core asset categories, the Municipality has determined the qualitative
descriptions that will be used. The metrics can be found in the levels of service
subsection within each asset category.
Technical Levels of Service
Technical LOS 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 Municipality's asset management strategies on the
physical condition of assets or the quality/capacity of the services they provide.
For core asset categories, the Province, through O. Reg. 588/17, has provided
technical metrics that are required. For non-core asset categories, the Municipality
determined the technical metrics that will be used. The metrics can be found in the
levels of service subsection within each asset category.
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 and Methodology
2.4.1. Asset Categories for this AMP
This asset management plan for the Municipality of Hastings Highlands is produced
in compliance with O. Reg. 588/17. The AMP summarizes the state of the
infrastructure for Hastings Highlands'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.
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Table 3: Tax-Funded Assets
2.4.2. Data Effective Date
It is important to note that this plan is based on data as of December 31, 2023;
therefore, it represents a snapshot in time using the best available processes, data,
and information at the Municipality. Strategic asset management planning is an
ongoing and dynamic process that requires continuous data updates and dedicated
data management resources.
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. The two methodologies are:
-
User-Defined Cost and Cost/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 cost of the asset is 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 Municipality incurred. As assets age, and new products and
technologies become available, cost inflation becomes a less reliable method.
Estimated Useful Life and Service Life Remaining
The estimated useful life (EUL) of an asset is the period over which the Municipality
expects the asset to be available for use and remain in service before requiring
replacement or disposal. The EUL for each asset 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 date and its EUL, the Municipality can determine the
service life remaining (SLR) for each asset. Using condition data and the asset's
-Road Network
-Bridges & Culverts
-Buildings
-Land Improvements
-Vehicles
-Machinery & Equipment
Tax Funded Assets
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SLR, the Municipality can more accurately forecast when it will require replacement.
The SLR is calculated as follows:
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
Municipality can determine the extent of any existing funding gap.
Figure 7: Target Reinvestment Rate Calculation
Figure 8: Actual Reinvestment Rate Calculation
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 rehabilitation or replacement and ensures that lifecycle
activities occur at the right time to maximize asset value and useful life.
A condition assessment rating system provides a standardized descriptive
framework that allows comparative benchmarking across the Municipality'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.
Figure 6: Service Life Remaining Calculation
Municipality of Hastings Highlands
2025 Asset Management Plan
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Figure 9: Standard Condition Rating Scale
The analysis 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. Appendix C: Condition Assessment Guidelines includes additional
information on the role of asset condition data and provides basic guidelines for the
development of a condition assessment program.
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
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
Municipality of Hastings Highlands
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Municipal Infrastructure (O. Reg 588/17)1. Along with creating better performing
organizations, more liveable and sustainable communities, the 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: O. Reg. 588/17 Requirements and Reporting Deadlines
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 - 10.1
Complete
1 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure
https://www.ontario.ca/laws/regulation/170588
Municipality of Hastings Highlands
2025 Asset Management Plan
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Requirement
O. Reg.
588/17
Section
AMP Section
Reference
Status
Replacement cost of assets in each
category
S.5(2), 3(ii)
5.1 - 10.1
Complete
Average age of assets in each category S.5(2), 3(iii)
5.3 - 10.3
Complete
Condition of core assets in each
category
S.5(2), 3(iv)
5.3 - 10.3
Complete
Description of municipality's approach
to assessing the condition of assets in
each category
S.5(2), 3(v)
5.3.1 -
10.3.1
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
5.7 - 10.7
Complete
Current performance measures in each
category
S.5(2), 2
5.7 - 10.7
Complete
Lifecycle activities needed to maintain
current levels of service for 10 years
S.5(2), 4
5.4 - 10.4
Complete
Costs of providing lifecycle activities
for 10 years
S.5(2), 4
5.5 - 10.5
Complete
Growth considerations
S.6(1), 5
12.2
Complete
Proposed levels of service for each
category for next 10 years
S.6(1), 1(i-ii)
5.8 - 10.8
Complete
Explanation of appropriateness of
proposed levels of service
S.6(1), 2(i-iv)
4.2.1
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
Figure 11: O. Reg. 588/17 Compliance Review
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2025 Asset Management Plan
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Portfolio Overview
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2025 Asset Management Plan
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3. State of the Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition, age
profiles, and other key performance indicators for the Municipality's infrastructure
portfolio. These details are presented for all core and non-core asset categories.
3.1. Asset Hierarchy/Data Classification
Asset hierarchy illustrates 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. Key category
details are summarized at the asset segment level.
Figure 12: Asset Hierarchy and Data Classification
-Gravel Roads
-HCB Roads
-LCB Roads
-Maynooth Downtown
-Sidewalks
-Streetlights
Road Network
-Bridges
-Culverts
Bridges &
Culverts
-Protection
-Public Works
-Recreation
Buildings
-Fields, Courts & Rinks
-Outdoor Structures
-Play Structures
Land
Improvements
-Operations
-Protection
Vehicles
-Administration
-Communication Towers
-Environmental
-Protection
-Public Works
Machinery &
Equipment
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2025 Asset Management Plan
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3.2. Portfolio Overview
3.2.1. Replacement Cost
All Hastings Highlands's asset categories have a total replacement cost of $160.3
million based on available inventory data. This total was determined based on a
combination of user-defined costs and historical cost inflation. This estimate
reflects the replacement of historical assets with similar, not necessarily identical,
assets available for procurement today.
Figure 13: Current Replacement Cost by Asset Category
3.2.2. Target vs. Actual Reinvestment Rate
The graph below depicts funding gaps or surpluses by comparing target vs actual
reinvestment rate. To meet the long-term replacement needs, the Municipality is
recommended to be allocating approximately $6.6 million annually, for a target
reinvestment rate of 4.1%. Actual annual spending on infrastructure totals
approximately $2.2 million, for an actual reinvestment rate of 1.4%.
$95.8m
$24.6m
$21.4m
$11.5m
$5.9m
$1.1m
$0
$20.0m
$40.0m
$60.0m
$80.0m
$100.0m
Road Network
Bridges & Culverts
Buildings
Vehicles
Machinery & Equipment
Land Improvements
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2025 Asset Management Plan
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Figure 14: Target vs Actual Reinvestment Rates
3.2.3. Condition of Asset Portfolio
The current condition of the assets is central to all asset management planning.
Collectively, 63% of assets in Hastings Highlands are in fair or better condition.
This estimate relies on both age-based and field condition data.
Assessed condition data is available for bridges and culverts, road network,
buildings, land improvements, and machinery and equipment. For the remaining
portfolio, 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.
1.2%
1.2%
0.1%
0.0%
4.7%
3.8%
3.2%
1.3%
3.0%
5.0%
5.8%
6.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Road Network
Bridges &
Culverts
Buildings
Land
Improvements
Machinery &
Equipment
Vehicles
Target Reinvestment Rate & Actual Reinvestment Rate
Actual Reinvestment Rate
Target Reinvestment Rate
Municipality of Hastings Highlands
2025 Asset Management Plan
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Figure 15: Asset Condition by Asset Category
Source of Condition Data
This AMP relies on assessed condition for 85% 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.
Figure 16 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
HCB roads
LCB roads
96%
2021-2022 RNS
Bridges &
Culverts
All
91%
OSIM 2023
Buildings
All
96%
BCA 2024
Land
Improvements
Fields, Courts &
Rinks
33%
Staff Assessment
$6.9m
$6.1m
$400k
$1.0m
$690k
$13.6m
$11.8m
$9.8m
$165k
$2.7m
$32.7m
$6.6m
$6.0m
$975k
$2.0m
$6.6m
$4.0m
$190k
$440k
$1.1m
$1.6m
$1.5m
$370k
$3.4m
$5.0m
0%
25%
50%
75%
100%
Road Network
Bridges &
Culverts
Buildings
Land
Improvements
Machinery &
Equipment
Vehicles
Value and Percentage of Assets by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
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2025 Asset Management Plan
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Machinery &
Equipment
Communication
Towers
Public Works
13%
Staff Assessment
Vehicles
All
0%
Figure 16: Source of Condition Data
3.2.4. Service Life Remaining
Based on asset age, available assessed condition data and estimated useful life,
38% of the Municipality's assets will require replacement within the next 10 years.
Figure 17: Service Life Remaining by Asset Category
$1.1M
$1.6M
$370K
$2.4M
$24.9M
$4.7M
$190K
$1.0M
$7.2M
$2.9M
$24.6M
$21.4M
$565K
$1.4M
$28.5M
$2.3M
0%
20%
40%
60%
80%
100%
Bridges & Culverts
Buildings
Land Improvements
Machinery & Equipment
Road Network
Vehicles
Service Life Expired
0 - 5 Years Remaining
6 - 10 Years Remaining
Over 10 Years Remaining
Municipality of Hastings Highlands
2025 Asset Management Plan
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3.2.5. Risk Matrix
Using the risk equation and preliminary risk models, the overall asset risk
breakdown for Hastings Highlands's asset inventory is portrayed in the figure
below.
Figure 18: Risk Matrix: All assets
Reviewing the list of very high-risk assets to evaluate how best to mitigate the
level of risk the Municipality is experiencing will help advance Hastings Highlands's
asset management program.
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2025 Asset Management Plan
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3.2.6. Forecasted Capital Requirements
Aging assets require maintenance, rehabilitation, and replacement. Figure 19 below illustrates the cyclical short-,
medium- and long-term infrastructure replacement requirements for all asset categories analyzed in this AMP over a
98-year time horizon. On average, $6.6 million is required each year to remain current with capital replacement
needs for the Municipality's asset portfolio (red dotted line). 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.
Figure 19: Forecasted Capital Replacement Requirements
The chart also illustrates a backlog of $6.8 million, 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
$6.6m
$6.8m
$37.7m
$25.0m
$29.8m
$34.8m
$24.8m
$39.1m
$23.8m
$38.1m
$36.8m$36.0m
$26.5m$29.5m
$48.6m
$24.1m
$27.9m$26.2m
$30.4m
$39.1m
$26.8m
$57.3m
$0
$10m
$20m
$30m
$40m
$50m
$60m
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
2064-
2068
2069-
2073
2074-
2078
2079-
2083
2084-
2088
2089-
2093
2094-
2098
2099-
2103
2104-
2108
2109-
2113
2114-
2118
2119-
2123
Road Network
Bridges & Culverts
Buildings
Land Improvements
Machinery & Equipment
Vehicles
Annual Capital Requirement
Municipality of Hastings Highlands
2025 Asset Management Plan
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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.
Municipality of Hastings Highlands
2025 Asset Management Plan
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Proposed Levels of
Service
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2025 Asset Management Plan
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4. Proposed Levels of Service
4.1. Scope
4.1.1. Ontario Regulation 588/17 Proposed Levels of
Service
The 2025 deadline requires that proposed Levels of Service (LOS) are
demonstrated to be appropriate based on an assessment of:
1. Proposed LOS options and the risks associated with these options (i.e.,
asset reliability, safety, affordability) when considering the long-term
sustainability of the municipality.
2. How proposed LOS may differ from current LOS.
3. Whether proposed LOS are achievable.
4. The municipality's ability to afford proposed LOS.
Additionally, a lifecycle management and financial strategy to support these LOS
must be identified, covering a 10-year period and including:
1. Identification of lifecycle activities needed to provide the proposed LOS with
consideration for:
-
Full lifecycle of assets.
-
Lifecycle activities options available to meet proposed LOS.
-
Risks associated with the options identified.
-
Identification of which lifecycle activities identified carry the lowest
cost.
2. An estimate of the annual cost of meeting proposed LOS for a period of 10
years, separated by capital and operating expense.
4.1.2. Methodology
Target levels of service for the Municipality have been developed through
comprehensive engagement with Municipality staff and referencing resident
satisfaction surveys. To achieve a target level of service goal, careful
consideration of the following should be considered.
Financial Impact Assessment
-
Assess historical expenditures/budget patterns to gauge feasibility of
increasing budgets to achieve LOS targets
-
Consider implications of LOS adjustments on other services, and
other infrastructure programs (trade-offs)
Infrastructure Condition Assessment
-
Regularly assess the condition of critical infrastructure components.
Municipality of Hastings Highlands
2025 Asset Management Plan
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-
Use standardized condition indices or metrics to quantify the state of
infrastructure.
-
Identify non-critical components where maintenance can be deferred
without causing severe degradation.
-
Adjust condition indices or metrics to reflect the reduced
maintenance budget.
Service Metrics
-
Measure user satisfaction, response times, and other relevant
indicators for the specific service.
Service Impact Assessment
-
Evaluate potential impacts on user satisfaction and service delivery
due to decreased infrastructure condition.
Risk Management
-
Identify potential risks to infrastructure and service quality.
-
Develop contingency plans to address unforeseen challenges without
compromising service quality.
-
Monitor performance closely to ensure that the target investment
translates into achieving the desired infrastructure condition.
Service Improvement Metrics
-
Analyze the performance of target levels of service regularly and
incorporate more ambitious targets based on user satisfaction if
required.
Timelines
-
Although O. Reg 588/17 requires identification of expenditures for a
10-year period in pursuit of LOS targets, it does not require
municipalities to identify the timeframe to achieve them.
-
Careful consideration should be given to setting realistic targets for
when LOS targets are to be achieved.
4.1.3. General Considerations for All Scenarios
-
Stakeholder Engagement:
-
Regularly engage with stakeholders to gather feedback and
communicate changes transparently.
-
Data-Driven Decision Making:
-
Use data analytics to inform decision-making processes and identify
areas for improvement.
-
Flexibility and Adaptability:
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2025 Asset Management Plan
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-
Design the methodology to be flexible, allowing for adjustments
based on evolving conditions and priorities.
-
Continuous Improvement:
-
Establish a process for continuous review and improvement of the
LOS methodology itself.
4.1.4. Community Engagement Survey
As part of the development of the 2025 Asset Management Plan, Hastings
Highlands conducted a community engagement survey to gather feedback on
current service levels. Community input has been crucial in ensuring that the
proposed Levels of Service align with both community expectations and municipal
goals. The results of the survey indicate that most respondents feel municipal
services generally meet expectations across all asset categories, with some areas
identified for potential improvement.
Community engagement efforts provided valuable insight into resident priorities,
ensuring that asset management strategies align with public expectations.
Environmental protection emerged as the highest priority, followed by limiting
cost increases for residents, supporting the local economy, attracting new
businesses, and assisting the aging population. In terms of infrastructure services,
roads and bridges were identified as the most important, followed by outdoor
open spaces such as parks and trails, and then recreational facilities. When asked
about tax rates, 75% of respondents indicated that maintaining moderate tax
levels was important, while 21% considered it somewhat important, and only 2%
did not prioritize it. These findings highlight the community's desire for balanced
investment, maintaining essential services while managing costs effectively.
The community engagement survey has provided valuable insights into public
satisfaction with municipal services, highlighting areas of strength and
opportunities for improvement. The feedback highlights a strong preference for
balancing service levels with moderate tax rates, as most respondents prioritized
cost management while still valuing essential infrastructure investments. While
limiting tax increases is important, strategic investments may still be necessary to
support key community priorities, such as environmental protection, economic
growth, and infrastructure maintenance. These insights will help shape the Asset
Management Plan, ensuring future decisions align with both financial sustainability
and community needs.
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2025 Asset Management Plan
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4.2. Proposed Levels of Service Analysis
The following three scenarios have been considered for establishing target levels
of service for all asset categories included in this Asset Management Plan.
Scenario 1: Achieving Full Funding in 15 Years
Approach: This scenario assumes a phased tax increase of approximately 2.7%
annually, reaching full funding within 15 years.
Scenario 2: Achieving 75% Funding in 15 Years
Approach: This scenario assumes a phased tax increase of approximately 1.8%
annually, reaching 75% of full funding within 15 years.
Scenario 3: Achieving 50% Funding in 15 Years
Approach: This scenario assumes a phased tax increase of approximately 0.7%
annually, reaching 50% of full funding within 15 years.
This methodology provides a structured approach for managing infrastructure
conditions and levels of service under different budget scenarios, emphasizing
adaptability and stakeholder communication.
4.2.1. Preferred Level of Service Approach and Rationale
While all three scenarios were reviewed, the Municipality of Hastings Highlands
selected Scenario 1 as their preferred path forward regarding proposed levels of
service, which is reflected in the financial strategy and 10-year capital
replacement forecasts. This decision was informed by a combination of strategic
direction, community and stakeholder input, and data-driven analysis. Hastings
Highlands' Strategic Plan prioritizes financial stability and outlines a commitment
to a "pay-as-you-go" principle, with actions to preserve and grow reserves and
refresh key financial policies such as the Reserves Policy. Adopting a full funding
approach aligns with these objectives by ensuring that lifecycle costs are
proactively planned and funded, reducing long-term financial risk and supporting
sustainable service delivery.
Community input has further supported this direction. The recent survey results
indicate that most residents feel current service levels generally meet
Municipality of Hastings Highlands
2025 Asset Management Plan
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expectations, with roads and bridges ranked as the highest infrastructure priority.
Importantly, 75% of respondents emphasized the importance of maintaining
moderate tax levels, suggesting a clear desire for cost-conscious yet reliable
municipal services. A full funding model enables the municipality to maintain
essential services and infrastructure without resorting to reactive or emergency
spending, helping to balance financial responsibility with long-term investment in
community priorities such as environmental protection, infrastructure
maintenance, and economic resilience.
The following sections provide a detailed analysis of all Level of Service options
that were considered by the municipality. Each scenario was evaluated based on
alignment with community priorities, financial feasibility, long-term sustainability,
and the municipality's strategic goals. This analysis outlines the potential
implications, benefits, and risks associated with each option, offering a
transparent overview of the decision-making process that led to the selection of
the full funding scenario.
4.3. Scenario 1: Achieving Full Funding in 15 Years
This scenario involves a phased tax increase of approximately 2.7% annually,
aimed at reaching full funding within 15 years. The approach focuses on ensuring
the municipality can fully fund its infrastructure needs over a set period. The
following analysis considers the affordability, achievability, and associated risks of
this scenario, evaluating how the proposed funding strategy aligns with both
community expectations and long-term infrastructure sustainability.
4.3.1. Lifecycle Changes Required
Increasing capital investment to achieve full funding over 15 years would
significantly improve the municipality's ability to manage its infrastructure assets.
This phased approach would allow for incremental funding increases, enabling
proactive maintenance, timely upgrades, and early replacements, which would
reduce the need for emergency repairs and extend asset lifecycles. The following
lifecycle activities would be undertaken:
-
Paved Roads
♦ Accelerate the conversion of Low-Class Bituminous (LCB) roads to
High-Class Bituminous (HCB) by completing more conversions
annually.
♦ Reduce reliance on converting roads to gravel once they deteriorate,
shortening the current 15-year conversion timeframe.
-
Bridges & Culverts:
♦ Reduce loading restrictions on the bridge from 8% to 0%, improving
accessibility and safety.
-
Buildings:
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2025 Asset Management Plan
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♦ Capacity to implement all recommendations from Building Condition
Assessments promptly, ensuring critical infrastructure components
are preserved and avoiding costly deferrals.
-
Land Improvements
♦ Reduce reliance on grant funding by enabling timely replacements
and upgrades of recreational assets.
-
Addressing the Backlog
♦ Begin addressing the backlog, reducing it gradually over the 15-year
period.
4.3.2. Sustainability and Feasibility of Proposed Service
Levels
Of the three scenarios analyzed, Scenario 1 requires the highest tax increase.
Reaching full funding immediately would require an increase of 50.9% in tax
revenue. This is not reasonable or realistic to achieve in a short period of time.
With the recommended implementation timeframe of 15 years, tax revenue would
be increased gradually from $8.1 million to $12.1 million.
Based on these gradual proposed increases, while maintaining existing sustainable
grant funding, the available capital funding over the next 10 years for Scenario 1
is indicated in the table below:
Table 4: Scenario 1 Available Capital Funding Over Next 10 Years
Source
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax
Revenue
$1.9m
$2.1m
$2.4m
$2.6m
$2.9m
$3.1m
$3.4m
$3.7m
$4.0m
$4.3m
The above table accounts for both current and future expenditures in order to
achieve and maintain the service level option. This requires a combination of
capital spending and saving (i.e. reserves) to ensure future large expenditures
can be financed.
4.3.3. Risk Analysis
Evaluating the risks associated with each service level option is essential for
balancing infrastructure needs, financial sustainability, and community
expectations. By identifying and assessing these risks, the municipality can make
informed decisions that support long-term service reliability.
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2025 Asset Management Plan
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4.4. Scenario 2: Achieving 75% Funding in 15 Years
This scenario involves a phased tax increase of approximately 1.8% annually, with
the goal of achieving 75% funding within 15 years. The approach represents a
more moderate level of funding while still addressing infrastructure needs. The
following analysis considers the affordability, achievability, and associated risks of
this scenario, evaluating how the proposed funding strategy aligns with both
community expectations and long-term infrastructure sustainability.
4.4.1. Lifecycle Changes Required
Increasing capital investment to achieve 75% funding would improve the
municipality's ability to manage infrastructure, extending asset lifecycles and
reducing the need for major repairs. For all asset categories, more funding would
enable proactive maintenance, timely upgrades, and early replacements. This
scenario would contribute to gradual improvements in infrastructure conditions
and help reduce the existing backlog. Increased funding could also support
reducing loading restrictions on bridges, helping ensure transportation networks
remain accessible and functional. These improvements would support the
municipality's goal of enhancing infrastructure reliability and service delivery over
the long term.
-
Paved Roads
♦ Accelerate the conversion of LCB roads to HCB by completing more
conversions annually. However, some conversions may still be
deferred or postponed due to budget constraints.
-
Bridges & Culverts
-Delayed Improvement: The municipality will not see significant
improvements in asset conditions or service levels until full funding is
reached after 15 years. However, gradual improvements will be made
over time as funding increases.
-Infrastructure Backlog: Without immediate funding, there is a risk that
the existing infrastructure backlog could continue to grow, potentially
leading to higher long-term costs and service disruptions.
-Resource Constraints: Implementing and maintaining this service level
option may stretch the municipality's operational capacity, particularly if
there are limited resources or capacity to handle the expanded scope of
work over the long term.
-Taxation Increase: While a 2.7% annual tax increase is technically
achievable, there's a possibility that residents may not fully support
sustained increases over the long term, especially given the preference
for moderate tax rates and the general satisfaction with current services.
Scenario 1 Risks
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2025 Asset Management Plan
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♦ Implement most OSIM report recommendations in a timely manner,
potentially deferring some lower-priority repairs and upgrades.
-
Buildings
♦ Complete annual BCAs, with slightly slower implementation of the
recommendations, with some deferred actions due to funding
limitations.
-
Land Improvements
♦ Reduce reliance on grant funding but potentially face delays in
replacing or upgrading recreational assets depending on available
resources, with some projects deferred until funding allows.
-
Addressing the Backlog
♦ Begin addressing the backlog but at a slower pace compared to the
full funding scenario, reducing it gradually over the 15-year period.
4.4.2. Sustainability and Feasibility of Proposed Service
Levels
Of the three scenarios analyzed, Scenario 2 requires a moderate tax increase.
Reaching 75% of full funding immediately would require an increase of 31.8% in
tax revenue. This is not reasonable or realistic to achieve in a short period of time.
With the recommended implementation timeframe of 15 years, tax revenue would
be increased gradually from $8.1 million to $10.7 million.
Based on these gradual proposed increases, while maintaining existing sustainable
grant funding, the available capital funding over the next 10 years for Scenario 2
is indicated in the table below:
Table 5: Scenario 2 Available Capital Funding Over Next 10 Years
Source
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax
Revenue
$1.8m
$2.0m
$2.3m
$2.5m
$2.6m
$2.8m
$3.0m
$3.2m
$3.3m
$3.5m
The above table accounts for both current and future expenditures in order to
achieve and maintain the service level option. This requires a combination of
capital spending and saving (i.e. reserves) to ensure future large expenditures
can be financed.
4.4.3. Risk Analysis
Evaluating the risks associated with each service level option is essential for
balancing infrastructure needs, financial sustainability, and community
expectations. By identifying and assessing these risks, the municipality can make
informed decisions that support long-term service reliability.
Municipality of Hastings Highlands
2025 Asset Management Plan
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4.5. Scenario 3: Achieving 50% Funding in 15 Years
This scenario involves a phased tax increase of approximately 0.7% annually, with
the goal of achieving 50% funding within 15 years. The goal is to provide a lower
tax burden while making incremental progress toward meeting the municipality's
infrastructure funding needs. The following analysis considers the affordability,
achievability, and associated risks of this scenario, evaluating how the proposed
funding strategy aligns with both community expectations and long-term
infrastructure sustainability.
4.5.1. Lifecycle Changes Required
Increasing capital investment to achieve 50% funding would lead to gradual
improvements in managing infrastructure assets. This level of investment would
support some proactive maintenance and early replacements but may not fully
address aging infrastructure or reduce the backlog as effectively as higher funding
scenarios. While asset lifecycles would extend, repairs and replacements may
remain suboptimal. Reducing loading restrictions on bridges may take longer to
accomplish. Overall, this scenario would maintain infrastructure reliability, but
service delivery improvements would be less significant.
-
Paved Roads
♦ Accelerate the conversion of LCB roads to HCB by completing more
conversions annually. However, some conversions may still be
deferred or postponed due to budget constraints.
-
Bridges & Culverts
♦ Implement some OSIM report recommendations, potentially
deferring some lower-priority repairs and upgrades.
-
Buildings
-Delayed Improvement: The municipality will not see significant
improvements in asset conditions or service levels until 75% funding is
reached after 15 years. While some improvements will occur, they may
not be as rapid as those seen with a higher funding approach.
-Infrastructure Backlog: This scenario would help address the
infrastructure backlog but will leave some backlog unresolved. The
growing demand for infrastructure, particularly aging assets, poses a risk
that may lead to higher long-term costs and operational challenges.
-Resource Constraints: Implementing and maintaining this service level
option may stretch the municipality's operational capacity, particularly if
there are limited resources or capacity to handle the expanded scope of
work over the long term.
Scenario 2 Risks
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♦ Complete annual BCAs, with slightly slower implementation of the
recommendations, with some deferred actions due to funding
limitations.
-
Land Improvements
♦ Reduce reliance on grant funding but potentially face delays in
replacing or upgrading recreational assets depending on available
resources, with some projects deferred until funding allows.
4.5.2. Sustainability and Feasibility of Proposed Service
Levels
Scenario 3 requires a conservative tax increase, requiring the lowest tax increase
of the three scenarios. The 15-year phased approach requires annual tax
increases of approximately 0.7% to achieve the target.
Scenario 1 requires a conservative tax increase, requiring the lowest increase of
the three scenarios analyzed. Reaching 50% of full funding immediately would
require an increase of 13.0% in tax revenue. This is not reasonable or realistic to
achieve in a short period of time. With the recommended implementation
timeframe of 15 years, tax revenue would be increased gradually from $8.1
million to $9.0 million.
Based on these gradual proposed increases, while maintaining existing sustainable
grant funding, the available capital funding over the next 10 years for Scenario 3
is indicated in the table below:
Table 6: Scenario 3 Available Capital Funding Over Next 10 Years
Source
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax
Revenue
$1.7m
$1.8m
$2.0m
$2.1m
$2.1m
$2.2m
$2.2m
$2.3m
$2.4m
$2.4m
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.
4.5.3. Risk Analysis
Evaluating the risks associated with each service level option is essential for
balancing infrastructure needs, financial sustainability, and community
expectations. By identifying and assessing these risks, the municipality can make
informed decisions that support long-term service reliability.
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-Slow Improvement: While this investment level will address some
maintenance needs, progress may be limited, leading to ongoing
challenges in infrastructure management.
-Infrastructure Backlog: This investment level will likely leave a
considerable backlog in infrastructure repairs and replacements. While it
helps maintain some asset lifecycles, the backlog will continue to grow,
leading to increased risks of service disruptions and higher costs over time.
-Taxation Increase: While a 0.7% annual increase is the most manageable,
it may not provide enough funding to meet future service demands. This
scenario may be more acceptable in the short term, but could become
unsustainable in the long run if infrastructure needs continue to rise.
Scenario 3 Risks
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Categorical Analysis
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5. Road Network
5.1. State of the Infrastructure
Hastings Highland's Road Network comprises the largest share of its infrastructure
portfolio, with a current replacement cost of $95.8 million, distributed among
Asphalt (HCB), Surface-Treated (LCB), Gravel roads, and the Maynooth Downtown
revitalization. The Municipality also owns and manages other supporting
infrastructure and capital assets, including streetlights and sidewalks.
The state of the infrastructure for the road network is summarized below.
Replacement Cost
Condition
Financial Capacity
$95,840,000
Good (68%)
Annual Requirement:
$4,333,788
Funding Available:
$1,134,096
Annual Deficit:
$3,199,904
5.2. Inventory & Valuation
The figure below displays the replacement cost of each asset segment in the
Municipality's Road inventory.
$200k
$281k
$3.0m
$25.9m
$32.2m
$34.3m
$0
$10m
$20m
$30m
$40m
Sidewalks
Streetlights
Maynooth Downtown
HCB Roads
LCB Roads
Gravel Roads
Figure 20: Road Network Replacement Value
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Each asset's replacement cost should be reviewed periodically to determine
whether adjustments are needed to more accurate represent realistic capital
requirements.
5.3. Asset Condition & Age
The graph below identifies the average age, and the estimated useful life for each
asset segment2. The values are weighted based on replacement cost.
Figure 21: Road Network Average Age vs Average EUL
The analysis shows that, based on in-service dates, roads continue to remain in
operation beyond their expected useful life. This is due to the life cycle
management strategies currently being utilized.
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
Figure 22: Road Network Condition Breakdown
2 Gravel roads undergo perpetual operating and maintenance activities. If maintained properly, they
can theoretically have a limitless service life
83.8
68.1
81.0
3.0
3.0
22.7
20
25
15
50
50
25
0
10
20
30
40
50
60
70
80
90
Gravel Roads
HCB Roads
LCB Roads Maynooth Downtown Sidewalks
Streetlights
Weighted Average Age
Weighted Average EUL
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Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
5.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining
service life of assets and identify the most cost-effective approach to managing
assets. The Municipality conducts comprehensive road needs assessments every 5-
10 years that serve to evaluate the current condition of road infrastructure,
identify areas requiring maintenance or rehabilitation, and inform future
investment decisions. The last roads needs assessment was completed in 2022 by
D.M. Wills Associates Limited. Roads needs assessments aid the Municipality in
efficiently allocating resources, optimizing maintenance schedules, developing a 5-
year plan for rehabilitation/replacement, and ensuring the continued safety and
functionality of the transportation network.
5.4. Lifecycle Management Strategy
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 shown in Figure 23 have been developed as a
proactive approach to managing the lifecycle of municipally owned 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.
In addition to these strategies, the municipality is conducting gravel crushing,
ditching, brushing, and culvert installations in-house to further reduce total costs
of maintenance and rehabilitation activities.
Figure 23: Road Network Current Lifecycle Strategy
$3.7m
$3.0m
$200k
$6.6m
$6.9m
$14.9m
$17.8m
$8k
$6.1m
$50k
$1.3m
$269k
0%
25%
50%
75%
100%
HCB Roads
LCB Roads
Maynooth
Downtown
Sidewalks
Streetlights
Very Good
Good
Fair
Poor
Very Poor
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Pavement Condition Index scores, staff judgment, traffic loads, and opportunity to
bundle projects help inform the optimal lifecycle intervention, ranging from pothole
repairs to overlays and potential replacements. Lifecycle models used to estimate
the savings to annual capital requirement are shown below in Figure 24 for Paved
(LCB) roads, and Figure 25 for Asphalt (HCB) Roads.
- Deficiency repairs as required from patrols for minimum maintenance
standards such as patching, shoulder grading, etc.
- Winter control activities such as 24 hrs monitoring on highways, salt
and sand, and snowplow
Maintenance
- Road rehabilitation projects are planned and executed in alignment
with the Roads Needs Study
- Gradual convert all LCB roads to HCB surfaces over time, contingent
upon available funding, to improve durability and reduce long-term
maintenance costs.
- Council-approved five-year road plans are formulated using the
Roads Needs Study, available traffic count data, current road surface
conditions, maintenance program costs for preserving surface quality,
and considerations of risk and liability.
Rehabilitation / Renewal / Replacement
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Figure 24: Paved Roads (LCB) Road Lifecycle Model
LCB Roads
Event Name
Event Class
Event Trigger
Patching
Maintenance
Annual event
Full Reconstruction
Replacement
Condition at 0%
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Figure 25: Asphalt Roads (HCB) Road Lifecycle Model
HCB Roads
Event Name
Event Class
Event Trigger
Patching
Maintenance
Annual event
Hot mix resurfacing
Rehabilitation
Condition at 40%
Full Reconstruction
Replacement
Condition at 0%
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5.5. Forecasted Capital Requirements
Figure 26 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and replacement
requirements for the Municipality's road network. Based on the lifecycle strategies identified previously for HCB and
LCB roads, and assuming the end-of-life replacement of all other assets in this category, the following graph
forecasts capital requirements for the road network. This analysis was run until 2083 to capture at least one iteration
of replacement for the longest-lived asset in the asset register.
Hastings Highlands's average annual requirements (red dotted line) total $4.3 million 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. The chart illustrates capital needs through the forecast period in 5-year
intervals.
The projections 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. They are based on asset replacement costs, age analysis,
and condition data when available, as well as lifecycle modeling (roads only identified above).
Figure 26: Road Network Forecasted Capital Replacement Requirements
$4.3m
$1.8m
$22.3m
$16.0m
$20.4m $20.7m
$16.4m
$32.9m
$13.7m
$17.6m
$31.1m
$22.9m
$14.6m
$21.0m
$0
$10m
$20m
$30m
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
2064-
2068
2069-
2073
2074-
2078
2079-
2083
HCB Roads
LCB Roads
Maynooth Downtown
Sidewalks
Streetlights
Annual Capital Requirement
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Table 7 below summarizes the projected cost of lifecycle activities (rehabilitation and replacement) that may need to
be undertaken over the next 10 years to support current levels of service. These projections are generated in
Citywide and rely on the data available in the asset register.
These projections can be different from actual capital forecasts. Consistent data updates, especially condition, will
improve the alignment between the system-generated expenditure requirements, and the Municipality's capital
expenditure forecasts.
Table 7 Road Network System-generated 10-Year Capital Costs
5.6. Risk & Criticality
The following risk matrix provides a visual representation of the relationship between the probability of failure and
the consequence of failure for the assets within this asset category based on available inventory data. See Appendix
D: Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 27: Road Network Risk Matrix
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
HCB Roads
$323k
$0
$0
$0
$1.5m
$39k
$3.1m
$1.2m
$1.4m
$4.8m
LCB Roads
$4.2m
$4.2m
$8.9m
$750k
$2.1m
$3.8m
$0
$614k
$686k
$2.6m
Maynooth Downtown
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sidewalks
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Streetlights
$0
$244k
$0
$0
$0
$0
$0
$0
$4k
$0
Total
$4.5m
$4.4m
$8.9m
$750k
$3.6m
$3.9m
$3.1m
$1.8m
$2.1m
$7.4m
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This is a high-level model developed by Municipality staff and it should be reviewed and adjusted to reflect an
evolving understanding of both the probability and consequences of asset failure.
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5.6.1. Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service delivery
that the Municipality is currently facing:
Asset Data Confidence
There is a lack of confidence in the available inventory data, specifically
in the accuracy of the Average Annual Daily Traffic (AADT) data
captured in the Roads Needs Study. To mitigate these risks, the
municipality should regularly review and update AADT data. Staff plan
to prioritize data refinement efforts to increase the accuracy and
reliability of asset data and information. Once completed, staff can
confidently develop data-driven strategies to address infrastructure
needs.
Climate Change & Extreme Weather Events
Climate change introduces significant impacts through rising
temperatures, which can further accelerate the deterioration of road
surfaces and weaken their foundations. Flooding and extreme weather
events, including increased freeze and thaw cycles, can cause
substantial damage to the municipality's roads. For instance, freezing
rain followed by rapid freezing can cause ice to expand within cracks
and potholes in the pavement, worsening existing pavement issues and
increasing the need for repairs or resurfacing. This ongoing cycle of
damage and repair can ultimately strain municipal resources and
elevate maintenance costs.
Hastings Highlands HH Road 62
The Municipality has assumed approximately 30 kilometers of HH Road
62, previously known as Provincial Highway 62. According to Ministry of
Transportation specifications, the cost to fully rehabilitate this road is
estimated at $25.5 million as of 2025. Currently, this estimated cost far
exceeds the municipality's funding capacity. The substantial funding
gap affects the road's condition and its ability to serve its intended
purpose effectively. Despite exploring various financial resources, the
municipality has determined that it cannot secure the necessary funds
for this project on its own. As a result, the Municipality is actively
seeking external financial support to bridge this funding gap and
achieve the required road rehabilitation.
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5.7. Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for the Road Network. By comparing the cost, performance (average
condition) and risk year-over-year, Hastings Highlands will be able to evaluate how
their services/assets are trending.
5.7.1. Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by the road network.
Table 8 Road Network Community Levels of Service
Values
Qualitative Description
Current LOS
(2023)
Scope
Description, which may include maps, of
the road network in the Municipality and its
level of connectivity
See Appendix A.
Quality
Description or images that illustrate the
different levels of road class pavement
condition
See Figure 9 for the
description of road
condition.
5.7.2. Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the road network.
Table 9 Road Network Technical Levels of Service
Service
Attribute
Technical Metric
Curent LOS
(2023)
Scope
Lane-km of arterial roads (MMS classes 1 and
2) per land area in the municipality (km/km2)
0 lane km/km2
Lane-km of collector roads (MMS classes 3 and
4) per land area in the municipality (km/km2)
0.44 lane
km/km2
Lane-km of local roads (MMS classes 5 and 6)
per land area in the municipality (km/km2)
0.57 lane
km/km2
Quality
Average pavement condition index for paved
roads in the municipality
67
Average surface condition for unpaved roads in
the municipality
54
Performance
Actual Capital Reinvestment Rate (Annual) -
Target Reinvestment Rate (Annual)
1.2% - 4.5%
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2025 Asset Management Plan
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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 Municipality's ability to afford
the PLOS.
The tables and graphs below 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 Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
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PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 10: Road Network pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
47.37%
37.32%
68.39%
57.36%
Average Asset Risk
12.47
12.66
9.49
10.48
Average Annual Investment
$4,333,788
Capital re-investment rate
4.5%
Scenario
2
Average Condition
47.37%
33.51%
52.08%
45.66%
Average Asset Risk
12.47
13.23
11.08
11.92
Average Annual Investment
$3,279,578
Capital re-investment rate
3.4%
Scenario
3
Average Condition
47.37%
29.66%
36.92%
34.06%
Average Asset Risk
12.47
13.65
13.05
13.52
Average Annual Investment
$2,065,646
Capital re-investment rate
2.2%
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Figure 28: Road Network Scenario Comparison
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6. Bridges & Culverts
6.1. State of the Infrastructure
Bridges and culverts (B&C) represent a critical portion of the transportation services
provided to the community. The state of the infrastructure for bridges and culverts
is summarized in the following table.
Replacement
Cost
Condition
Financial Capacity
$24,566,000
Fair (71%)
Annual Requirement:
$610,063
Funding Available:
$300,000
Annual Deficit:
$ 310,063
6.2. Inventory & Valuation
Figure 29 below displays the replacement cost of each asset segment in the
Municipality's bridges and culverts inventory.
Figure 29 Bridges & Culverts Replacement Cost
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed. This can be included in the Ontario Structures Inspection
Manual (OSIM) inspections as the replacement cost is part of the calculation for the
bridge condition index (BCI).
Culverts,
$7,944,727,
(32%)
Bridges,
$16,621,477
(68%)
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6.3. Asset Condition & Age
The graph below identifies the average age and the estimated useful life for each
asset segment. The values are weighted based on replacement cost.
Figure 30: B&C Average Age vs Average EUL
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
Figure 31: B&C Condition Breakdown
To ensure that the Municipality's bridges and culverts continue to provide an
acceptable level of service, the staff should monitor the average condition of all
assets. Each asset's estimated useful life should also be reviewed periodically to
determine whether adjustments need to be made to better align with the observed
length of service life for each asset type.
6.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets. In
Hastings Highlands, the current practice involves inspecting the 12 bridges and 11
40.3
17.3
80
65
0
20
40
60
80
100
Bridges
Culverts
Weighted Average Age
Weighted Average EUL
$1.2m
$4.9m
$11.1m
$715k
$4.3m
$2.3m
0%
25%
50%
75%
100%
Bridges
Culverts
Very Good
Good
Fair
Poor
Very Poor
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culverts every two years, following the Ontario Structure Inspection Manual (OSIM).
The latest inspection was carried out in 2023 by Ainley Group, with the next round
scheduled for fall 2025.
6.4. Lifecycle Management Strategy
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. Figure 32 outlines Hastings Highlands'
current lifecycle management strategy.
Figure 32: B&C Current Lifecycle Strategy
6.5. Forecasted Capital Requirements
Figure 33 illustrates the cyclical short-, medium- and long-term infrastructure
rehabilitation and replacement requirements for the Municipality's bridges and
culverts. These projections 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.
The following analysis was run until 2103, and the resulting graph identifies capital
requirements over the next 79 years. Hastings Highlands's average annual
requirements (red dotted line) for bridges and culverts total $610 thousand.
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.
- All maintenance and repair activities are driven by the results of
inspections competed according to the Ontario Structure Inspection
Manual (OSIM)
- OSIM recommendations are taken into consideration during the
development of the 5-year plan, and are dependent on available
funding
Maintenance
- Replacement activities are incorporated into 5-year plan occurs upon
OSIM recommendation, and are subjected to the availability of funding
Rehabilitation / Renewal / Replacement
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OSIM condition assessments and a robust risk framework will ensure that high-
criticality assets receive proper and timely lifecycle intervention, including
rehabilitation and replacement activities.
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Figure 33: B&C Forecasted Capital Replacement Requirements
Table 11 below summarizes the projected cost of lifecycle activities (as previously described) that may need to be
undertaken over the next 10 years to support current levels of service. These projections, outlined in the
municipality's 5-year plan, are derived from the OSIM recommendations and are represented at the major asset
level.
Table 11 B&C System-generated 10-Year Capital Costs
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Bridges
$0
$550k
$425k
$550k
$0
$0
$0
$0
$0
$0
Structural Culverts
$150k
$0
$200k
$0
$0
$0
$0
$0
$0
$0
Total
$150k
$550k
$625k
$550k
$0
$0
$0
$0
$0
$0
$610k
$989k
$1.6m
$1.0m
$1.8m $1.8m
$750k
$250k $400k
$2.8m
$500k
$2.2m
$150k $150k
$1.1m
$3.3m
$250k
$667k
$0
$1m
$2m
$3m
$4m
$5m
Backlog 2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
2064-
2068
2069-
2073
2074-
2078
2079-
2083
2084-
2088
2089-
2093
2094-
2098
2099-
2103
Bridges
Culverts
Annual Capital Requirement
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6.6. Risk & Criticality
The risk matrix provides a visual representation of the relationship between the probability of failure and the
consequence of failure for the assets within this asset category based on available inventory data. See Appendix D:
Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 34: B&C Risk Matrix
This is a high-level model developed by municipal staff and should be reviewed and adjusted to reflect an evolving
understanding of both the probability and consequences of asset failure.
The identification of critical assets allows the Municipality to determine appropriate risk mitigation strategies and
treatment options. Risk mitigation may include asset-specific lifecycle strategies, condition assessment strategies,
or simply the need to collect better asset data.
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Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to service
delivery that the Municipality is currently facing:
Climate Change & Extreme Weather Events
Various bridges and Culverts were severely damaged during the major
flooding in 2019. Following that, the municipality was partially
reimbursed for the restoration of bridges and culverts impacted by the
flood by the Municipal Disaster Recovery Assistance Program. Flooding
and extreme weather causes damage to multiple components of the
Municipality's bridges including the deck, superstructure, substructure,
and approaches. The rising levels of freshwater and the increased
frequency and intensity of precipitation events are likely to increase the
deterioration of bridge components. Staff should identify and monitor
effected bridges and culverts. The Municipality also should prioritize
infrastructure maintenance, rehabilitation, and replacement based on
susceptibility to climate impacts.
Municipality of Hastings Highlands
2025 Asset Management Plan
67
6.7. Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for the Bridges & Culverts.
6.7.1. Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by bridges and culverts.
Table 12 B&C Community Levels of Service
Service
Attribute
Qualitative
Description
Current LOS (2023)
Scope
Description of the
traffic that is
supported by
municipal bridges
(e.g. heavy transport,
motor, emergency
vehicles, pedestrians,
cyclists)
The bridges within the Municipality
accomodate a variety of traffic, acting as
essential connections both within Hastings
Highlands and for travel between other
municipalities. They support a broad
spectrum of vehicles, including large
agricultural machinery, heavy transport
trucks, motor vehicles, emergency vehicles,
as well as cyclists and pedestrians.
Quality
Description or images
of the condition of
bridges and culverts
and how this would
affect use of the
bridges and culverts
See Appendix A.
6.7.2. Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by bridges and culverts.
Table 13 B&C Technical Levels of Service
Service Attribute Technical Metric
Current LOS
(2023)
Scope
% of bridges in the municipality with loading
or dimensional restrictions
8%
Quality
Average bridge condition index value for
bridges in the municipality
68%
Average bridge condition index value for
structural culverts in the municipality
73%
Performance
Actual Capital Reinvestment Rate (Annual) -
Target Reinvestment Rate (Annual)
2.5% - 1.2%
Municipality of Hastings Highlands
2025 Asset Management Plan
68
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 Municipality's ability to afford
the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that
were analyzed for Bridges & Culverts. Further PLOS analysis at the portfolio level
can be found in Section 4 Proposed Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
Municipality of Hastings Highlands
2025 Asset Management Plan
69
PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 14: Bridges & Culverts pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
72.92%
71.49%
65.14%
66.97%
Average Asset Risk
5.66
5.59
5.34
6.71
Average Annual Investment
$610,063
Capital re-investment rate
2.5%
Scenario
2
Average Condition
72.92%
70.18%
65.44%
63.64%
Average Asset Risk
5.66
5.79
5.28
7.29
Average Annual Investment
$478,120
Capital re-investment rate
2.0%
Scenario
3
Average Condition
72.92%
70.54%
65.31%
66.42%
Average Asset Risk
5.66
5.71
5.34
6.84
Average Annual Investment
$377,338
Capital re-investment rate
1.5%
Municipality of Hastings Highlands
2025 Asset Management Plan
70
Figure 35: B&C Scenario Comparison
Municipality of Hastings Highlands
2025 Asset Management Plan
71
7. Buildings
7.1. State of the Infrastructure
Hastings Highlands owns and maintains several facilities that provide key services
to the community. These include:
-
Protection buildings such as 3 fire stations throughout Hastings Highlands,
strategically located in Birds Creek, Monteagle Valley and Maynooth.
-
Public Works buildings such as the Operations yard and attached
administration building
-
Recreation facilities such as the Lake St. Peter Community Centre, Herschel
Community Centre, Birds Creek Community Centre, Maynooth Rink Building
and Bangor Community Centre
The state of the infrastructure for the buildings and facilities is summarized in the
following table.
Replacement Cost
Condition
Financial Capacity
$21,350,000
Fair (67%)
Annual Requirement:
$428,300
Funding Available:
$18,200
Annual Deficit:
$410,100
7.2. Inventory & Valuation
The graph below displays the total replacement cost of each asset segment in
Hastings Highlands's buildings inventory. As the Municipality has not had a
complete componentization of their buildings their inventory tracks buildings as a
main asset with some small as replaced componentization.
Municipality of Hastings Highlands
2025 Asset Management Plan
72
Figure 36: Buildings Replacement Cost
7.3. Asset Condition & Age
The graph below identifies the average age, and the estimated useful life for each
asset segment. The values are weighted based on replacement cost.
Figure 37: Buildings Average Age vs Average EUL
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor.
Figure 38: Buildings Condition Breakdown
$2.2m
$8.7m
$10.5m
$0
$2m
$4m
$6m
$8m
$10m
$12m
Protection
Public Works
Recreation
41.6
36.8
25.4
100
100
100
0
20
40
60
80
100
120
Protection
Public Works
Recreation
Weighted Average Age
Weighted Average EUL
Municipality of Hastings Highlands
2025 Asset Management Plan
73
To ensure that the municipal buildings continue to provide an acceptable level of
service, the Municipality should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the buildings.
Each asset's estimated useful life should also be reviewed to determine whether
adjustments need to be made to better align with the observed service life.
7.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets. The
municipality had 15 of their key facilities assessed in 2024. Based on the results, the
municipality is planning to conduct these Building Condition Assessments every 5-10
years. These condition assessment strategies will also be included in the
municipality's 5-year planning horizon.
Fire Halls are subject to mandated inspections to ensure compliance with safety
regulations and standards, as well as for ensuring that the facilities are equipped to
effectively respond to emergencies.
Other facilities are subjected to regular inspections of health & safety requirements
as well as structural deficiencies that require additional attention.
7.4. Lifecycle Management Strategy
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
Municipality's current lifecycle management strategy.
$2.2m
$7.6m
$2.2m
$2.5m
$1.3m
$4.0m
$1.5m
0%
25%
50%
75%
100%
Protection
Public Works
Recreation
Very Good
Good
Fair
Poor
Very Poor
Municipality of Hastings Highlands
2025 Asset Management Plan
74
Figure 39: Buildings Current Lifecycle Strategy
7.5. Forecasted Capital Requirements
The annual capital requirement represents the average amount per year that
Hastings Highlands should allocate towards funding rehabilitation and replacement
needs. The following graph identifies capital requirements over the next 90 years.
This projection is used as it ensures that every asset has gone through one full
iteration of replacement. The forecasted requirements are aggregated into 5-year
bins and the trend line represents the average capital requirements at $428
thousand.
- Buildings are repaired as needed, addressing deficiencies identified by
experts, staff, or residents, contingent on available funding. Immediate
attention is given to urgent issues. The Municipality will also be
reviewing BCA data to help develop a plan for strategically investing in
building repairs and maintenance.
- Heating systems and other component systems are repaired or
replaced promptly on an as-needed basis
- Building rehabilitation and replacement is facilitated through grant
funding
Maintenance / Rehabilitation / Replacement
Municipality of Hastings Highlands
2025 Asset Management Plan
75
Figure 40: Buildings Forecasted Capital Replacement Requirements
Table 15 below summarizes the projected cost of lifecycle activities (capital activities only) that may need to be
undertaken over the next 10 years to support current levels of service.
Table 15 Buildings System-Generated 10-Year Capital Costs
$428k
$1.3m
$4.5m
$1.2m
$3.8m
$510k
$20k
$0
$600k
$9.2m
$20k
$0
$6.0m
$1.2m
$3.8m
$500k
$0
$10k
$0
$2m
$4m
$6m
$8m
$10m
Backlog 2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
2049-
2053
2054-
2058
2059-
2063
2064-
2068
2069-
2073
2074-
2078
2079-
2083
2084-
2088
2089-
2093
2094-
2098
2099-
2103
Protection
Public Works
Recreation
Annual Capital Requirement
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Protection
$42k
$80k
$188k
$71k
$158k
$221k
$185k
$70k
$129k
$201k
Public Works
$67k
$265k
$346k
$468k
$242k
$226k
$187k
$231k
$172k
$319k
Recreation
$33k
$411k
$392k
$321k
$861k
$174k
$581k
$311k
$335k
$437k
Total
$142k $757k $926k $859k $1.3m $621k $953k $612k $636k
$957k
Municipality of Hastings Highlands
2025 Asset Management Plan
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These projections are generated in Citywide and rely on the data available in the asset register, which was limited
to asset age, replacement cost, and useful life.
Municipality of Hastings Highlands
2025 Asset Management Plan
77
7.6. Risk & Criticality
The risk matrix provides a visual representation of the relationship between the probability of failure and the
consequence of failure for the assets within this asset category based on available inventory data. See Appendix D:
Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 41: Buildings Risk Matrix
This is a high-level model that has been developed based on information currently available and should be reviewed
and adjusted to reflect an evolving understanding of both the probability and consequences of asset failure.
The identification of critical assets allows the Municipality to determine risk mitigation strategies and treatment
options. Risk mitigation may include asset-specific lifecycle strategies, condition assessment strategies, or simply
the need to collect better asset data.
Municipality of Hastings Highlands
2025 Asset Management Plan
78
7.7. Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to municipal building service delivery that the
Municipality is currently facing:
Lifecycle Management Strategies
The lack of condition assessments poses a challenge in planning the
lifecycle activities. Therefore, the nature of lifecycle activities is reactive.
However, to address that, the municipality is in the process of getting
their facilities assessed in 2024 and plan to incorporate periodic condition
assessments into their asset management practice.
Municipality of Hastings Highlands
2025 Asset Management Plan
79
7.8. Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for municipal Buildings. By comparing the cost, performance (average
condition) and risk year-over-year, Hastings Highlands will be able to evaluate how
their services/assets are trending.
7.8.1. Community Levels of Service
The following table outlines the qualitative descriptions that determine the
community levels of service provided by municipal buildings.
Values
Technical Metric
Current LOS (2023)
Scope
Description of the current
condition of municipal
buildings and the plans that
are in place to maintain or
improve the provided level
of service
The overall condition of the
buildings in the Municipality are
good. Municipality staff have had
formal building condition
assessments done to identify
required maintenance and
rehabilitation activities to ensure
the state of the buildings remains
in adequate condition
7.8.2. Technical Levels of Service
The quantitative metrics that determine the technical level of service provided by
the buildings in Hastings Highlands are going to be the analysis of reinvestment
rates, asset performance (condition breakdown) and asset risk levels.
Table 16 Buildings Technical Levels of Service
Values
Technical Metric
Current LOS (2023)
Scope
Average Condition Rating
Good (67%)
Average Risk Rating
High (12.66)
Performance
Actual Capital Reinvestment Rate (Annual)
- Target Reinvestment Rate (Annual)
0.1% - 2.0%
Municipality of Hastings Highlands
2025 Asset Management Plan
80
7.9. 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 Municipality's ability to afford
the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that
were analyzed for municipal Buildings. Further PLOS analysis at the portfolio level
can be found in Section 4 Proposed Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
Municipality of Hastings Highlands
2025 Asset Management Plan
81
PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 17: Buildings & Facilities pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
50.15%
43.16%
49.32%
55.16%
Average Asset Risk
17.68
17
16.47
14.33
Average Annual Investment
$428,300
Capital re-investment rate
2.0%
Scenario
2
Average Condition
50.15%
43.20%
41.22%
45.00%
Average Asset Risk
17.68
17
18.31
16.09
Average Annual Investment
$321,225
Capital re-investment rate
1.5%
Scenario
3
Average Condition
50.15%
39.56%
33.18%
28.74%
Average Asset Risk
17.68
17.68
20.47
18.95
Average Annual Investment
$214,150
Capital re-investment rate
1.0%
Municipality of Hastings Highlands
2025 Asset Management Plan
82
Figure 42: Buildings Scenario Comparison
8. Land Improvements
8.1. State of the Infrastructure
Hastings Highlands's land improvement infrastructure is made up of playground
equipment, outdoor ice rinks in Birds Creek, Maynooth and Lake St Peter, a ball
diamond in Birds Creek including lighting, pergolas and picnic shelters, as well as
general improvements such as fencing.
The state of the infrastructure for the land improvements is summarized in the
following table.
Replacement Cost
Condition
Financial Capacity
$1,125,000
Fair (50%)
Annual Requirement:
$56,250
Funding Available:
$0
Annual Deficit:
$56,250
8.2. Asset Inventory & Valuation
The graph below displays the replacement cost of each asset segment in the
Municipality's land improvement inventory.
Figure 43: Land Improvements Replacement Cost
Municipality of Hastings Highlands
2025 Asset Management Plan
83
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to represent capital requirements more accurately.
8.3. Asset Condition & Age
The graph below identifies the average age, and the estimated useful life for each
asset segment. The values are weighted based on replacement cost.
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
$155k
$220k
$750k
$0
$100k $200k $300k $400k $500k $600k $700k $800k
Play Structures
Outdoor Structures
Fields, Courts & Rinks
11.6
2.1
12.2
20
20
20
0
5
10
15
20
25
Fields, Courts & Rinks
Outdoor Structures
Play Structures
Weighted Average Age
Weighted Average EUL
Figure 44: Land Improvements Average Age vs Average EUL
Municipality of Hastings Highlands
2025 Asset Management Plan
84
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
Figure 45: Land Improvement Condition Breakdown
To ensure that the Municipality's land improvements continue to provide an
acceptable level of service, the Municipality should monitor the average condition of
all assets. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination activities is required to
increase the overall condition of the land improvements.
8.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets. Due
to the varied nature of the asset category the assets are managed individually. The
Municipality employs an external contractor to conduct thorough inspections for its
playground structures in accordance with CAN/CSA Z614 standards. Internal staff
conducts visual inspections and routine maintenance based on resident complaints.
This approach ensures the safety, functionality, and accessibility of Municipality
playgrounds and parks, promoting enjoyable recreational experiences for residents
and visitors alike.
8.4. Lifecycle Management Strategy
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 figures outline Hastings
Highlands's current lifecycle management strategy.
$200k
$200k
$125k
$40k
$55k
$20k
$115k
$370k
0%
25%
50%
75%
100%
Fields, Courts &
Rinks
Outdoor
Structures
Play Structures
Very Good
Good
Fair
Poor
Very Poor
Municipality of Hastings Highlands
2025 Asset Management Plan
85
Figure 46: Land Improvements Current Lifecycle Strategy
8.5. Forecasted Capital Requirements
Figure 47 illustrates the cyclical short-, medium- and long-term infrastructure
replacement requirements for the Municipality's land improvement infrastructure.
This analysis was run until 2043 to capture at least one iteration of replacement for
the longest-lived asset in the asset register. Hastings Highlands's average annual
requirements (red dotted line) total $56 thousand for all land improvement assets.
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.
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.
- This asset category's lifecycle requirements are dealt with on a case-by-
case basis.
- Rehabilitation and replacement of land improvement assets are
facilitated through grant funding
Maintenance / Rehabilitation / Replacement
Municipality of Hastings Highlands
2025 Asset Management Plan
86
Figure 47: Land Improvements Forecasted Capital Replacement Requirements
It is unlikely that all land improvement assets need to be replaced as forecasted. Coordinated projects may help
drive replacements and rehabilitations.
Table 18 below summarizes the projected cost of lifecycle activities (capital replacement only) that will need to be
undertaken over the next 10 years to support current levels of service. These projections are generated in Citywide
and rely on the data available in the asset register, which was limited to asset age, replacement cost, and useful
life.
$0
$560k
$165k
$200k
$760k
$0
$100k
$200k
$300k
$400k
$500k
$600k
$700k
$800k
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
Fields, Courts & Rinks
Outdoor Structures
Play Structures
Annual Capital Requirement
Municipality of Hastings Highlands
2025 Asset Management Plan
87
Table 18 Land Improvements System-Generated 10-Year Capital Costs
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Fields, Courts & Rinks
$0
$425k
$0
$0
$0
$0
$0
$125k
$0
$0
Outdoor Structures
$0
$20k
$0
$0
$0
$0
$0
$0
$0
$0
Play Structures
$115k
$0
$0
$0
$0
$0
$0
$40k
$0
$0
Total
$115k
$445k
$0
$0
$0
$0
$0
$165k
$0
$0
Consistent data updates, especially condition, will improve the alignment between the system-generated
expenditure requirements, and the Municipality's capital expenditure forecasts.
8.6. Risk & Criticality
The following risk matrix provides a visual representation of the relationship between the probability of failure and
the consequence of failure for the assets within this asset category based on available inventory data. See Appendix
D: Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 48: Land Improvement Risk Matrix
This is a high-level model that has been developed based on information currently available and should be reviewed
and adjusted to reflect an evolving understanding of both the probability and consequences of asset failure.
The identification of critical assets allows the Municipality to determine risk mitigation strategies and treatment
options. Risk mitigation may include asset-specific lifecycle strategies, condition assessment strategies, or simply
the need to collect better asset data.
Municipality of Hastings Highlands
2025 Asset Management Plan
88
8.7. Risks to Current Asset Management Strategies
The following section summarizes key trends, challenges, and risks to land
improvements service delivery that the Municipality is currently facing:
Organizational Capacity
Both short- and long-term planning requires the regular collection of
infrastructure data to support asset management decision-making. Staff
find it a continuous challenge to dedicate resources and time towards
conducting condition assessments to ensure that asset attribute data is
regularly reviewed and updated. A standardized approach to data
gathering and condition assessments with achievable goals may help to
enable the Municipality to regularly update their asset data and
information.
Municipality of Hastings Highlands
2025 Asset Management Plan
89
8.8. Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for Land Improvement assets. By comparing the cost, performance
(average condition) and risk year-over-year, Hastings Highlands will be able to
evaluate how their services/assets are trending.
8.8.1. Community Levels of Service
The following table outlines the quantitative metrics that determine the community
level of service provided by the municipal Land Improvements.
Values
Technical Metric
Current LOS (2023)
Scope
Description of the
current condition of
land improvement
assets and the plans
that are in place to
maintain or improve
the provided level of
service
The overall condition of the asset
category is Fair. The Municipality is
focused on maintaining its land
improvement assets with a clear plan for
future development. Staff are preparing
to integrate these assets into their 5-year
planning strategy. Efforts will also
continue to secure grant funding for
upgrades to amenities including
playgrounds, fields, and rinks, to ensure
these community assets remain high-
quality and beneficial for residents.
8.8.2. Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by the municipal Land Improvements.
Table 19 Land Improvements Technical Levels of Service
Values
Technical Metric
Current LOS
(2023)
Scope
Average Condition Rating
Fair (50%)
Average Risk Rating
High (13.13)
Performance
Actual Capital Reinvestment Rate (Annual)
- Target Reinvestment Rate (Annual)
0% - 5.0%
Municipality of Hastings Highlands
2025 Asset Management Plan
90
8.9. 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 Municipality's ability to afford
the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that
were analyzed for Land Improvement assets. Further PLOS analysis at the portfolio
level can be found in Section 4 Proposed Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
Municipality of Hastings Highlands
2025 Asset Management Plan
91
PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 20: Land Improvements pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
41.58%
17.25%
27.41%
24.99%
Average Asset Risk
17.2
21.14
18.3
19.1
Average Annual Investment
$64,250
Capital re-investment rate
5.0%
Scenario
2
Average Condition
41.58%
15.08%
18.72%
17.79%
Average Asset Risk
17.2
21.47
20.11
20.58
Average Annual Investment
$36,773
Capital re-investment rate
2.9%
Scenario
3
Average Condition
41.58%
13.69%
5.36%
10.96%
Average Asset Risk
17.2
21.72
22.85
21.86
Average Annual Investment
$15,967
Capital re-investment rate
1.2%
Municipality of Hastings Highlands
2025 Asset Management Plan
92
Figure 49: Land Improvements Scenario Comparison
Municipality of Hastings Highlands
2025 Asset Management Plan
93
9. Machinery & Equipment
9.1. State of the Infrastructure
To maintain the quality stewardship of Hastings Highlands's infrastructure and
support the delivery of services, municipal staff own and employ various types of
equipment. This includes:
-
Computers, servers, and phone systems to support municipal services
-
Loaders, graders and steamers to support roadway maintenance
-
Equipment for the fire department to effectively respond to emergencies,
such as SCBA equipment, radios, harnesses, and fire hoses
-
Landfill compactor and other equipment for solid waste disposal
-
Communication Towers for wireless communication within the Municipality
The state of the infrastructure for equipment is summarized in the following table.
Replacement Cost
Condition
Financial Capacity
$5,853,000
Poor (28%)
Annual Requirement:
$338,350
Funding Available:
$275,000
Annual Deficit:
$63,350
9.2. Inventory & Valuation
The graph below displays the total replacement cost of each asset segment in the
Hastings Highlands's equipment inventory.
Municipality of Hastings Highlands
2025 Asset Management Plan
94
Figure 50: Machinery & Equipment Replacement Costs
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to more accurate represent capital requirements.
9.3. Asset Condition & Age
The graph below identifies the average age and the estimated useful life for each
asset segment. The values are weighted based on replacement cost.
Figure 51: Machinery & Equipment Average Age vs Average EUL
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
$290k
$363k
$590k
$845k
$3.8m
$0
$1m
$2m
$3m
$4m
Administration
Protection
Environmental
Communication Towers
Public Works
7.9
27.0
15.5
10.8
18.0
16
20
19
13
20
0
5
10
15
20
25
30
Administration
Communication
Towers
Environmental
Protection
Public Works
Weighted Average Age
Weighted Average EUL
Municipality of Hastings Highlands
2025 Asset Management Plan
95
Figure 52: Machinery & Equipment Condition Breakdown
To ensure that the Municipality's equipment continues to provide an acceptable
level of service, Hastings Highlands should continue to monitor the average
condition. If the average condition declines, staff should re-evaluate their lifecycle
management strategy to determine what combination of maintenance,
rehabilitation and replacement activities is required to increase the overall
condition.
9.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets. The
current approach is varied because of the broad range of types of equipment
included in this category. Assets are evaluated on a case-by-case basis, with
inspections tailored to each asset type and conducted in accordance with OEM
recommendations as necessary. Additionally, SCBA equipment is subject to monthly
testing.
9.4. Lifecycle Management Strategy
The condition or performance of most assets will deteriorate over time. To ensure
that municipal assets are performing as expected and meet the needs of customers,
it is important to establish a lifecycle management strategy to proactively manage
asset deterioration. Council endorses the municipality staff's cost-effective strategy
of acquiring pre-owned graders and other equipment for rehabilitation by in-house
mechanics. This initiative will enable the municipality to procure equipment that is
otherwise challenging and costly to obtain.
$45k
$165k
$40k
$750k
$65k
$150k
$825k
$90k
$350k
$95k
$680k
$500k
$323k
$1.8m
0%
25%
50%
75%
100%
Administration
Communication
Towers
Environmental
Protection
Public Works
Very Good
Good
Fair
Poor
Very Poor
Municipality of Hastings Highlands
2025 Asset Management Plan
96
Figure 53: Machinery & Equipment Current Lifecycle Strategy
- Equipment maintenance adheres to manufacturer recommendations and
is supplemented by staff expertise when necessary.
- Fire station equipment undergoes regular maintenance as per
manufacturer guidelines.
-SCBA equipment is replaced either at the end of its useful life as mandated
by standards, or earlier based on staff recommendations following monthly
inspections.
Maintenance / Rehabilitation / Replacement
Municipality of Hastings Highlands
2025 Asset Management Plan
97
9.5. Forecasted Capital Requirements
The following graph identifies capital requirements over the next 25 years. This projection is used as it ensures that
every asset has gone through one full iteration of replacement. The forecasted requirements are aggregated into 5-
year bins and the trend line represents the average annual capital requirements at $338 thousand.
Figure 54: Machinery & Equipment Forecasted Capital Replacement Requirements
Table 21 below summarizes the projected cost of lifecycle activities (capital replacement only) that may need to be
undertaken over the next 10 years to support current levels of service. These projections are generated in Citywide
and rely on the data available in the asset register.
$1.1m
$2.6m
$1.5m
$390k
$4.6m
$2.5m
$0
$1m
$2m
$3m
$4m
$5m
$6m
Backlog
2024-
2028
2029-
2033
2034-
2038
2039-
2043
2044-
2048
Administration
Communication Towers
Environmental
Protection
Public Works
Annual Capital Requirement
Municipality of Hastings Highlands
2025 Asset Management Plan
98
Table 21 Machinery & Equipment System-Generated 10-Year Capital Costs
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Administration
$0
$0
$131k
$0
$0
$326k
$0
$0
$131k
$0
Communication Towers
$0
$330k
$0
$0
$350k
$0
$0
$0
$0
$0
Environmental
$90k
$0
$0
$0
$0
$0
$0
$0
$0
$0
Protection
$0
$0
$0
$0
$0
$0
$40k
$215k
$0
$0
Public Works
$0
$0
$220k
$630k
$125k
$0
$225k
$50k
$65k
$0
Total
$90k
$330k
$351k $630k
$475k
$326k $265k
$265k $196k
$0
Consistent data updates, especially condition, will improve the alignment between the system-generated
expenditure requirements, and the Municipality's capital expenditure forecasts.
9.6. Risk & Criticality
The risk matrix provides a visual representation of the relationship between the probability of failure and the
consequence of failure for the assets within this asset category based on available inventory data. See Appendix D:
Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 55: Machinery & Equipment Risk Matrix
This is a high-level model that has been developed based on information currently available and should be reviewed
and adjusted to reflect an evolving understanding of both the probability and consequences of asset failure.
Municipality of Hastings Highlands
2025 Asset Management Plan
99
9.7. Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for Machinery & Equipment. By comparing the cost, performance
(average condition) and risk year-over-year, Hastings Highlands will be able to
evaluate how their services/assets are trending.
9.7.1. Community Levels of Service
The following table outlines the qualitative metrics that determine the community
level of service provided by equipment.
Values
Technical Metric
Current LOS (2023)
Scope
Description of the
lifecycle activities
(maintenance,
rehabilitation and
replacement)
performed on municipal
equipment and
machinery
The Municipality employs a cost-
effective strategy for managing its
equipment and machinery lifecycle,
focusing on maintenance, rehabilitation,
and replacement. A key aspect of this
strategy involves purchasing used
graders and other equipment, which are
then rehabilitated by in-house
mechanics. This approach not only
conserves capital funds but also
addresses the challenges of procuring
new equipment.
9.7.2. Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by equipment.
Table 22 Machinery & Equipment Technical Levels of Service
Values
Technical Metric
Current LOS
(2023)
Scope
Average Condition Rating
Poor (28%)
Average Risk Rating
Very High (18.3)
Performance
Actual Capital Reinvestment Rate (Annual) -
Target Reinvestment Rate (Annual)
4.7% - 5.8%
Municipality of Hastings Highlands
2025 Asset Management Plan
100
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 Municipality's ability to afford
the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that
were analyzed for Machinery & Equipment. Further PLOS analysis at the portfolio
level can be found in Section 4 Proposed Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
Municipality of Hastings Highlands
2025 Asset Management Plan
101
PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 23: Machinery & Equipment pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
49.18%
43.93%
42.79%
45.73%
Average Asset Risk
13.45
14.8
15.47
14.6
Average Annual Investment
$338,350
Capital re-investment rate
5.8%
Scenario
2
Average Condition
49.18%
44.02%
42.21%
42.69%
Average Asset Risk
13.45
14.79
15.34
15.22
Average Annual Investment
$253,763
Capital re-investment rate
5.0%
Scenario
3
Average Condition
49.18%
45.59%
38.19%
39.98%
Average Asset Risk
13.45
14.4
16.56
15.82
Average Annual Investment
$169,175
Capital re-investment rate
4.6%
Municipality of Hastings Highlands
2025 Asset Management Plan
102
Figure 56: Machinery & Equipment Scenario Comparison
Municipality of Hastings Highlands
2025 Asset Management Plan
103
10. Vehicles
10.1. State of the Infrastructure
Vehicles allow staff to efficiently deliver municipal services and personnel. Municipal
vehicles are used to support several service areas, including:
-
Public Works vehicles for road maintenance and winter control activities
-
Protection vehicles for emergency fire services
The state of the infrastructure for the vehicles is summarized in the following table.
Replacement Cost
Condition
Financial Capacity
$11,545,000
Poor (35%)
Annual Requirement:
$787,317
Funding Available:
$440,000
Annual Deficit:
$347,317
10.2. Inventory & Valuation
The graph below displays the total replacement cost of each asset segment in the
vehicle inventory.
Figure 57: Vehicle Replacement Costs
Each asset's replacement cost should be reviewed periodically to determine whether
adjustments are needed to represent capital requirements more accurately.
Protection,
$5,410,000
(47%)
Operations,
$6,135,000
(53%)
Municipality of Hastings Highlands
2025 Asset Management Plan
104
10.3.
Asset Condition & Age
The graph below identifies the average age and the estimated useful life for each
asset segment. The values are weighted based on replacement cost.
Figure 58: Vehicles Average Age vs Average EUL
Each asset's estimated useful life should also be reviewed periodically to determine
whether adjustments need to be made to better align with the observed length of
service life for each asset type.
The graph below visually illustrates the average condition for each asset segment
on a very good to very poor scale.
Figure 59: Vehicles Condition Breakdown
To ensure that the Municipality's vehicles continue to provide an acceptable level of
service, the Municipality should monitor the average condition of all assets. If the
average condition declines, staff should re-evaluate their lifecycle management
strategy to determine what combination of maintenance, rehabilitation and
replacement activities is required to increase the overall condition of the vehicles.
7.2
15.7
12
21
0
5
10
15
20
25
Operations
Protection
Weighted Average Age
Weighted Average EUL
$690k
$1.5m
$1.3m
$850k
$1.2m
$850k
$250k
$2.3m
$2.7m
0%
25%
50%
75%
100%
Operations
Protection
Very Good
Good
Fair
Poor
Very Poor
Municipality of Hastings Highlands
2025 Asset Management Plan
105
10.3.1. Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to determine the remaining service
life of assets and identify the most cost-effective approach to managing assets. An
example of the municipality's current approach is to conduct daily circle checks
prior to each use.
10.4. Lifecycle Management Strategy
The condition or performance of assets will deteriorate over time. To ensure
vehicles are performing as expected, it is important to establish a lifecycle
management strategy to proactively manage asset deterioration.
Figure 60: Vehicles Current Lifecycle Strategy
10.5. Forecasted Capital Requirements
The annual capital requirement represents the average amount per year that the
Municipality should allocate towards funding rehabilitation and replacement needs.
The following graph identifies capital requirements over the next 15 years. This
projection is used as it ensures that every asset has gone through one full iteration
of replacement. The forecasted requirements are aggregated into 5-year bins and
the trend line represents the average annual capital requirements at $787
thousand.
- Licensed mechanics conduct servicing in-house and major repairs are
undertaken by a third party subcontractor
-The maintenance of fire vehicles, including Fire Station pumpers and
tankers, adheres to regulatory requirements and best practices. These
essential vehicles are replaced every 20 years and are serviced
annually to ensure they meet performance standards.
- Vehicles are replaced according to age, condition, and staff
recommendations, subject to Council approval.
Maintenance / Rehabilitation / Replacement
Municipality of Hastings Highlands
2025 Asset Management Plan
106
Figure 61: Vehicle Forecasted Capital Replacement Requirements
Table 24 below summarizes the projected cost of lifecycle activities (capital replacement only) that may need to be
undertaken over the next 10 years to support current levels of service. These projections are generated in Citywide
and rely on the data available in the asset register.
Table 24 Vehicles System-Generated 10-Year Capital Costs
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Operations
$575k
$425k
$425k
$220k
$425k
$515k
$575k
$0
$2.3m
$850k
Protection
$365k
$665k
$625k
$365k
$500k
$0
$625k
$150k
$0
$675k
Total
$940k
$1.1m
$1.1m
$585k
$925k
$515k
$1.2m
$150k
$2.3m
$1.5m
As no assessed condition data was available for the vehicles, only age was used to determine forthcoming
replacement needs. These projections can be different from actual capital forecasts. Consistent data updates,
especially condition, will improve the alignment between the system-generated expenditure requirements, and the
Municipality's capital expenditure forecasts.
$1.6m
$6.2m
$5.1m
$3.1m
$0
$1m
$2m
$3m
$4m
$5m
$6m
$7m
Backlog
2024-
2028
2029-
2033
2034-
2038
Operations
Protection
Annual Capital Requirement
Municipality of Hastings Highlands
2025 Asset Management Plan
107
10.6.
Risk & Criticality
The risk matrix provides a visual representation of the relationship between the probability of failure and the
consequence of failure for the assets within this asset category based on available inventory data. See Appendix D:
Risk Rating Criteria for the criteria used to determine the risk rating of each asset.
Figure 62: Vehicles Risk Matrix
This is a high-level model that has been developed based on information currently available and should be reviewed
and adjusted to reflect an evolving understanding of both the probability and consequences of asset failure.
The identification of critical assets allows the Municipality to determine risk mitigation strategies and treatment
options. Risk mitigation may include asset-specific lifecycle strategies, condition assessment strategies, or simply
the need to collect better asset data.
Municipality of Hastings Highlands
2025 Asset Management Plan
108
10.7.
Levels of Service
The following tables identify the Municipality's metrics to identify their current level
of service for municipal Vehicles. By comparing the cost, performance (average
condition) and risk year-over-year, Hastings Highlands will be able to evaluate how
their services/assets are trending.
10.7.1. Community Levels of Service
The qualitative descriptions that determine the community levels of service
provided by municipal vehicles are based on the service usage outlined below:
Values
Technical Metric
Current LOS (2023)
Scope
Description of the
lifecycle activities
(maintenance,
rehabilitation and
replacement)
performed on
municipal vehicles
The Municipality's vehicle replacement
strategy has shifted from replacing the
oldest asset first to prioritizing the oldest
asset in the worst condition, ensuring
timely replacements to maintain
reliability and safety. Efforts are made to
budget for annual replacements to
sustain vehicle performance.
For specialized vehicles, such as fire
trucks, the Municipality endeavors
regulatory requirements and best
practices, replacing them every 20 years
and performing annual servicing to
uphold performance and safety
standards.
10.7.2. Technical Levels of Service
The following table outlines the quantitative metrics that determine the technical
level of service provided by vehicles.
Table 25 Vehicles Technical Levels of Service
Values
Technical Metric
Current LOS
(2023)
Scope
Average Condition Rating
Poor (35%)
Average Risk Rating
Very High (17.7)
Performance
Actual Capital Reinvestment Rate (Annual)
- Target Reinvestment Rate (Annual)
3.8% - 6.8%
Municipality of Hastings Highlands
2025 Asset Management Plan
109
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 Municipality's ability to afford
the PLOS.
The below tables and graphs explain the proposed levels of service scenarios that
were analyzed for municipal vehicles. Further PLOS analysis at the portfolio level
can be found in Section 4 Proposed Levels of Service.
PLOS Scenarios Analyzed
Scenario
Description
Scenario 1: Achieving Full
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 2.7% annually, reaching full funding
within 15 years
Scenario 2: Achieving 75%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 1.8% annually, reaching 75% funding
within 15 years
Scenario 3: Achieving 50%
Funding in 15 Years
This scenario assumes a phased tax increase of
approximately 0.7% annually, reaching 50% funding
within 15 years
Municipality of Hastings Highlands
2025 Asset Management Plan
110
PLOS Analysis Results
The following table presents the outcomes for three investment scenarios,
illustrating how varying levels of capital investment influence asset condition, risk,
and required investment over time.
Table 26: Vehicles pLOS Scenario Analysis
Scenario Technical LOS Outcomes
Initial
Value
(2025)
10 Year
Projection
(2035)
25 Year
Projection
(2050)
Scenario
Average
Scenario
1
Average Condition
30.06%
35.43%
43.18%
42.07%
Average Asset Risk
18.82
17.17
16.27
16.15
Average Annual Investment
$787,317
Capital re-investment rate
6.8%
Scenario
2
Average Condition
30.06%
33.45%
38.93%
37.45%
Average Asset Risk
18.82
17.65
16.98
17.11
Average Annual Investment
$590,488
Capital re-investment rate
5.1%
Scenario
3
Average Condition
30.06%
30.98%
27.49%
31.29%
Average Asset Risk
18.82
18.22
19.47
18.4
Average Annual Investment
$393,658
Capital re-investment rate
3.4%
Municipality of Hastings Highlands
2025 Asset Management Plan
111
Figure 63: Vehicles Scenario Comparison
Municipality of Hastings Highlands
2025 Asset Management Plan
112
Strategies
Municipality of Hastings Highlands
2025 Asset Management Plan
113
11. Financial Strategy
11.1.
Financial Strategy Overview
Each year, the Municipality of Hastings Highlands makes important investments in
its infrastructure's maintenance, renewal, rehabilitation, and replacement to ensure
assets remain in a state of good repair. However, spending needs typically exceed
fiscal capacity. In fact, most municipalities continue to struggle with annual
infrastructure deficits. Achieving full-funding for infrastructure programs will take
many years and should be phased-in gradually to reduce burden on the community.
This plan identifies the financial requirements necessary to meet the identified
proposed levels of service. These requirements are based on the financial
requirements for existing assets as of December 31, 2024. However, the required
funding is based on meeting the proposed levels of service, with consideration for
any additional financial impacts from economic and population growth. The financial
plan considers and accounts for traditional and non-traditional sources of municipal
funding.
This financial strategy is designed around two key elements: the average annual
capital requirement, and the average annual capital funding currently available. The
annual requirement is calculated based on the replacement cost and service life of
each asset, and, where possible, includes lifecycle modeling. These values are then
aggregated to determine category-level funding needs.
Available capital funding is based on an average of historical capital expenditure,
including contributions to capital reserves. For Hastings Highlands, spending from
2023 was used to establish a baseline projection of available capital funding.
Only reliable and predictable sources of capital funding are used to benchmark
funds that may be available on any given year. The funding sources include:
-
Revenue from taxation allocated to reserves for capital purposes
-
The Canada Community Benefits Fund (CCBF), formerly the Federal Gas Tax
Fund
-
The Ontario Community Infrastructure Fund (OCIF)
Although provincial and federal infrastructure programs can change with evolving
policy, CCBF, and OCIF are considered as permanent and predictable.
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.
Municipality of Hastings Highlands
2025 Asset Management Plan
114
11.2.
Annual Capital Requirements
The annual requirements represent the amount the Municipality should allocate
annually to each asset category to meet replacement needs as they arise, prevent
infrastructure backlogs, and achieve long-term sustainability. 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. 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.
Asset Category
Annual
Requirements
(Replacement Only)
Annual Requirements
(Lifecycle Strategy)
Difference
Road Network
$5,016,000
$4,334,000
$682,063
Table 27: Road Network Annual Capital Requirement Comparison
The implementation of a proactive lifecycle strategy for roads leads to a potential
annual cost avoidance of $682,063 for the Road Network. This represents an overall
reduction of the annual requirements for the category by 14%. As the lifecycle
strategy scenario represents the lowest cost option available to the Municipality, we
have used these annual requirements in the development of the financial strategy.
The table also illustrates the system-generated, equivalent target reinvestment rate
(TRR), calculated by dividing the annual capital requirements by the total
replacement cost of each category. The cumulative target reinvestment for these
categories is estimated at 4.1%.
Asset Category
Replacement
Cost
Annual
Capital
Requirements
Target
Reinvestment
Rate
Current
Reinvestment
Rate
Road Network
$95,840,173
$4,333,788
4.5%
1.2%
Bridges & Culverts
$24,566,204
$610,063
2.5%
1.2%
Buildings
$21,370,000
$428,300
2.0%
0.1%
Land Improvements
$1,285,000
$56,250
5.0%
0%
Municipality of Hastings Highlands
2025 Asset Management Plan
115
Machinery &
Equipment
$5,853,000
$338,350
5.8%
4.7%
Vehicles
$11,545,000
$787,317
6.8%
3.8%
Total
$160,279,377 $6,554,280
4.1%
1.4%
Although there is no industry standard guide on optimal annual investment in
infrastructure, the TRRs above provide a useful benchmark for organizations. In
2016, the Canadian Infrastructure Report Card (CIRC) produced an assessment of
the health of municipal infrastructure as reported by cities and communities across
Canada. The CIRC remains a joint project produced by several organizations,
including the Federation of Canadian Municipalities (FCM), the Canadian Society of
Civil Engineers (CSCE), the Canadian Network of Asset Managers (CNAM), and the
Canadian Public Works Association (CPWA).
The 2016 version of the report card also contained recommended reinvestment
rates that can also serve as benchmarks for municipalities. The CIRC suggest that,
if increased, these reinvestment rates can "stop the deterioration of municipal
infrastructure." The report card contains both a range for reinvestment rates that
outlines the lower and upper recommended levels, as well as current municipal
averages.
11.3.
Financial Profile: Tax Funded Assets
11.3.1. Current Funding Position
The table below summarizes how current funding levels compare with funding
required for each asset category. At existing levels, the Municipality is funding
33.1% of its annual capital requirements for all infrastructure analyzed. This
creates a total annual funding deficit of almost $4.4 million.
Asset Category
Annual Capital
Requirements
Annual
Funding
Available
Annual
Infrastructure
Deficit
Funding
Level
Road Network
$4,333,788
$1,134,096
$3,199,904
26.2%
Bridges & Culverts
$610,063
$300,000
$310,063
49.2%
Buildings &
Facilities
$428,300
$18,200
$410,100
4.2%
Land
Improvements
$56,250
$0
$56,250
0.0%
Machinery &
Equipment
$338,350
$275,000
$63,350
81.3%
Vehicles
$787,317
$440,000
$347,317
55.9%
Total
$6,554,280
$2,167,296
$4,386,984
33.1%
Municipality of Hastings Highlands
2025 Asset Management Plan
116
The average annual investment requirement for the above categories is $6,554,280. Annual revenue currently
allocated to these assets for capital purposes is $2,167,296 leaving an annual deficit of $4,386,984. Put differently,
these infrastructure categories are currently funded at 33.1% of their long-term requirements.
11.3.2. Closing the Gap
Eliminating annual infrastructure funding shortfalls is a difficult and long-term endeavor for municipalities. Achieving
full funding to support the proposed levels of service, while maintaining affordability for residents, will require time
and deliberate financial planning.
This section outlines how Hastings Highlands can gradually work toward closing the annual capital funding shortfall
using its own-source revenues, such as property taxes. This approach avoids the use of additional debt for existing
assets and supports the Municipality's goal of sustainably increasing investment to maintain and improve service
delivery. By phasing in additional funding as financial capacity allows, the Municipality can begin to align
infrastructure spending with service level expectations and the priorities identified through community and
stakeholder engagement.
Asset Category
Avg. Annual
Requirement
Annual Funding Available
Annual Deficit
Taxes
CCBF
OCIF
Reserve
Allocation
Total
Available
Road Network
$4,333,788
$300,000
$268,120
$265,975
$300,000
$1,134,096
$3,199,904
Bridges & Culverts
$610,063
$300,000
$300,000
$310,063
Buildings
$428,300
$18,200
$18,200
$410,100
Land Improvements
$56,250
$56,250
Machinery &
Equipment
$338,350
$275,000
$275,000
$63,350
Vehicles
$787,317
$440,000
$440,000
$347,317
$6,554,280
$300,000
$268,120
$265,975
$440,000
$2,167,296
$4,386,984
Municipality of Hastings Highlands
2025 Asset Management Plan
117
Full Funding Requirements
In 2024, the Municipality of Hastings Highlands had annual tax revenues of
$8,625,296. As illustrated in the following table, without consideration of any other
sources of revenue or cost containment strategies, full funding would require the
following tax change over time:
Asset Category
Tax Change Required for
Full Funding
Road Network
37.1%
Bridges & Culverts
3.6%
Buildings
4.8%
Land Improvements
0.7%
Machinery & Equipment
0.7%
Vehicles
4.0%
50.9%
Table 28: Tax Change Required for Full Funding
Funding 100% of annual capital requirements ensures that major capital events,
including replacements, are completed as required. Under this scenario, projects
are unlikely to be deferred to future years. This delivers the highest asset
performance and customer 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:
-
Hastings Highlands's formula-based Ontario Community Infrastructure Fund
(OCIF) grant is scheduled to decrease by $39,980 in 2024.3
-
Hastings Highlands's debt payments for these asset categories will be
decreasing by $209,996 by 2027.
Phase-in Period for full funding
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
4,386,984
4,386,984
4,386,984
4,386,984
Change in Debt Costs
-209,996
-209,996
-209,996
-209,996
OCIF Grant changes
39,980
39,980
39,980
39,980
3 Hastings Highlands formula-based OCIF grant is scheduled to decrease further by $33,899 in 2025.
Municipality of Hastings Highlands
2025 Asset Management Plan
118
Resulting Infrastructure
Deficit:
4,216,968
4,216,968
4,216,968
4,216,968
Tax Increase Required
52.6%
52.6%
52.6%
52.6%
Annually:
8.3%
4.1%
2.7%
2.1%
Table 29: Phasing in Annual Tax Changes
Proposed levels of service play a role in the development of the Annual Average
Requirement discussed above. For comparison, the tax rate impact for achieving
full funding, 75% funding and 50% funding are provided below:
Annual Impact on Taxation
Change in Levels of Service
5 Year
10 Year
15 Year
20 Year
Fully Funded
8.3%
4.1%
2.7%
2.1%
75% Funded
5.4%
2.7%
1.8%
1.4%
50% Funded
2.1%
1.1%
0.7%
0.6%
Recommended
8.3%
4.1%
2.7%
2.1%
Table 30: Scenarios Annual Impact on Taxation
Financial Strategy Recommendations
Considering all the above information, we recommend the 15-year option that
includes capturing changes from reallocating debt costs to the infrastructure deficit.
This involves full funding being achieved over 15 years by:
a) when realized, reallocating the debt cost reductions of $209,996 to the
infrastructure deficit as outlined above.
b) increasing tax revenues by 2.7% each year for the next 15 years solely for
the purpose of phasing in full funding to the asset categories covered in this
section of the AMP.
c) allocating the current Canada Community-Building Fund (Formerly known as
Gas Tax Fund) and OCIF revenue as outlined previously.
d) increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Municipality of Hastings Highlands
2025 Asset Management Plan
119
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 commitment4.
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.
Although this option achieves full funding on an annual basis in 20 years and
provides 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 $140,000 for the Road
Network, $26,000 for the Storm Water Network, $6,400,000 for Buildings,
$557,000 for Machinery & Equipment, and $6,200,000 for Vehicles.
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.
4 The Municipality 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.
Municipality of Hastings Highlands
2025 Asset Management Plan
120
11.4.
Use of Debt
Debt can be strategically utilized as a funding source with in 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 Hastings Highlands has historically used debt for
investing in the asset categories as listed. As of December 31, 2024, there is
currently $306,567 of debt outstanding for the assets covered by this AMP with
corresponding principal and interest payments of $209,996, well within its
provincially prescribed maximum of $2,151,906.
Asset Category
Current Debt
Outstanding
Use of Debt in the Last Five Years
2019
2020
2021
2022
2023
Road Network
$98,226
Bridges & Culverts
Buildings
$208,341
Machinery &
Equipment
Land Improvements
Vehicles
Total Tax Funded:
$306,567
0
0
0
0
0
Municipality of Hastings Highlands
2025 Asset Management Plan
121
Asset Category
Principal & Interest Payments in the Next Ten Years
2024
2025
2026
2027
2028
2029
2030
2034
Road Network
$100,672
$100,672
Bridges & Culverts
Buildings & Facilities
$109,324
$109,324
$109,324
Machinery & Equipment
Land Improvements
Vehicles
Total Tax Funded:
$209,996 $209,996 $109,324
0
0
0
0
The revenue options outlined in this plan allow Hastings Highlands to fully fund its
long-term infrastructure requirements without further use of debt.
Municipality of Hastings Highlands
2025 Asset Management Plan
122
11.5.
Use of Reserves
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having
reserves available for infrastructure planning include:
e) the ability to stabilize tax rates when dealing with variable and sometimes
uncontrollable factors
f) financing one-time or short-term investments
g) accumulating the funding for significant future infrastructure investments
h) managing the use of debt
i) normalizing infrastructure funding requirement
By asset category, the table below outlines the details of the reserves currently
available to Hastings Highlands.
Asset Category
Balance at
December 31, 2023
Road Network
$462,870
Bridges & Culverts
$812,617
Buildings
$441,935
Land Improvements
$372,638
Machinery & Equipment
$1,520,379
Vehicles
$30,902
Total Tax Funded:
$3,641,340
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:
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 Hastings Highlands's judicious use
Municipality of Hastings Highlands
2025 Asset Management Plan
123
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.
Municipality of Hastings Highlands
2025 Asset Management Plan
124
12. Impacts of Growth
12.1. Description of Growth Assumptions
Hastings Highlands' goals and objectives for future growth are informed by Hastings
County's Official Plan.
Understanding the key drivers of growth and demand will allow the Municipality to
more effectively plan for new infrastructure, as well as the upgrade or disposal of
existing infrastructure. The costs of growth should be considered in long-term
funding strategies designed to maintain the current level of service.
The 2018 Official Plan - Hastings County
The county's most recent plan, adopted in December 2017, implements the
provincial policy statement by considering and balancing numerous factors and
interests in the management of land uses, infrastructure, and natural resources
within the county. This approach aims to provide economic opportunities and
prosperity for its residents.
Under a medium growth scenario, the 2011-2036 forecasts for Hastings Highlands
as outlined in Hastings County's official plan are as follows:
2011
2036
Permanent Population
4450
4690
Permanent Households
1830
2080
Seasonal Population
5675
6490
Seasonal Dwellings
1550
1775
Employment
385
465
Employment Activity Rate
8.7%
9.9%
The recent growth within the Municipality does not align with the forecasts from the
Official Plan or the most recent 2021 census data. There has been a significant
increase in new building activity since the Covid-19 pandemic. During this period,
many seasonal residents opted to extend their stays or transitioned to becoming
permanent year-round residents. Consequently, there has been an increased
demand for municipal services supported by the municipality's infrastructure assets.
The 2024 - 2027 Strategic Plan - the Municipality of
Hastings Highlands
The Municipality's 2024 - 2027 strategic plan outlines the following strategic
priorities to guide their development over the next several years.
-
Ensure Financial Stability
-
Rationalize Infrastructure
♦ Goal: Safeguard the Municipality's Assets
Municipality of Hastings Highlands
2025 Asset Management Plan
125
♦ Action: Regularly update and implement the municipal asset
management plan
-
Build Our Community, and
-
Cultivate Exceptional Service and Governance
To achieve these goals, the municipality will leverage asset management practices,
enabling data-driven decisions to prioritize infrastructure planning and
maintenance.
Hastings County Strategic Plan (2024-2026)
On November 30, 2023, Hastings County Council adopted a new Strategic Plan for
2024-2026. This plan establishes a regional vision to foster vibrant, economically
resilient, and environmentally responsible communities across the 14 member
municipalities, including Hastings Highlands. Two growth-related goals indicated
within the Plan include:
-
Goal 2: Foster Vibrant Communities
♦ Support the growth of local municipalities, businesses, and tourism.
♦ Streamline the development process via the SPARC (Streamlined
Planning Approach & Resource Centralization) initiative.
♦ Improve employment opportunities by supporting business retention
and transformation of Ontario Works into a Life Stabilization model.
-
Goal 4: Promote Sustainable Communities
♦ Expand the County-wide asset management plan to support long-term
capital planning.
♦ Encourage sustainable infrastructure and financial resilience through
updated policies and funding opportunities.
Additionally, a SMART goal for 2024-2027 includes the development of a Regional
Incentives Program to support economic growth by revitalizing vacant properties,
encouraging commercial investment, and aligning with Community Improvement
Plan (CIP) policies under the Planning Act.
12.2. Impact of Growth on Lifecycle Activities
Hastings Highlands' asset management practices have been shaped by a
combination of historical low growth, recent post-pandemic demographic shifts, and
broader regional planning objectives. While long-term population and economic
growth projections remain modest, the municipality has experienced a recent
increase in building activity and a notable trend of seasonal residents converting to
year-round occupancy. These changes have led to increased demand on key
municipal services, including roads, waste management, winter control, fire
services, and other core infrastructure.
Municipality of Hastings Highlands
2025 Asset Management Plan
126
In response, the Municipality has incorporated growth considerations into its
lifecycle management strategy by evaluating short- to medium-term service
pressures and adjusting rehabilitation timelines for assets in areas experiencing
more intensive use. These considerations are directly tied to the Municipality's
financial strategy, which emphasizes long-term fiscal stability through capital
forecasting and reserve planning. This ensures that infrastructure remains
sustainable and responsive, particularly in zones impacted by population shifts.
Although overall service levels are expected to remain consistent, localized growth
may necessitate incremental service enhancements in higher-demand areas.
Ongoing asset performance monitoring will support timely and data-driven
adjustments to levels of service where needed. Recognizing the unpredictability of
recent demographic changes, the Municipality will continue to monitor development
trends, integrate new census and permitting data, and revise lifecycle and financial
strategies accordingly in future updates to the Asset Management Plan.
In accordance with O. Reg. 588/17, Section 5(2)(iv), this Plan acknowledges that
sustained, system-wide growth is not anticipated; however, localized and emerging
growth patterns are already shaping infrastructure needs. As such, asset
management and financial planning are informed by both historical data and
current indicators to ensure the Municipality can continue to meet evolving service
demands effectively and sustainably.
Appendix A: Levels of Service Maps
127
Appendix A: Levels of Service Maps & Images
Road Network Maps
Appendix A: Levels of Service Maps
128
Appendix A: Levels of Service Maps
129
Appendix A: Levels of Service Maps
130
Appendix A: Levels of Service Maps
131
Appendix A: Levels of Service Maps & Images
132
Bridges & Culverts Images
The condition scale for bridges & culverts utilized is from 0 to 100 from Very Poor to Very Good. See the following images as
examples of a bridge and structural culvert in Good condition, as well as a bridge and structural culvert in Fair condition.
Siberia Road Bridge (BCI = 73.5 Good)
Appendix A: Levels of Service Maps & Images
133
William Lake Road Culvert (BCI = 94.6 Very Good)
Papineau Lake Road Bridge (BCI = 43.8 Fair)
Appendix A: Levels of Service Maps & Images
134
South Papineau Lake Road Culvert (BCI = 45.3 Fair)
Appendix B: Proposed LOS 10-Year Capital Requirements
135
Appendix B: 10-Year Capital Requirements
Capital Requirements for Proposed Levels of Service
The following table identifies the capital cost requirements of recommended lifecycle events, as generated by the Municipality's
asset management software, while considering annuals budgets beginning at current funding levels and gradually increasing over
15 years to reach full recommended funding (Scenario 1 of the analyzed levels of service options). Refer to the Financial
Strategy for more details.
Asset Category
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Road Network
$932k
$273k
$1.0m
$1.1m
$427k
$1.7m
$1.0m
$2.6m
$1.9m
$2.6m
Bridges &
Culverts
$250k
$250k
$150k
$500k
$500k
$400k
$150k
$650k
$450k
$400k
Buildings
$18k
$10k
$54k
$62k
$92k
$103k
$78k
$158k
$0
$250k
Land
Improvements
$0
$0
$0
$20k
$0
$0
$55k
$0
$50k
$40k
Machinery &
Equipment
$240k
$313k
$261k
$310k
$285k
$305k
$261k
$275k
$145k
$551k
Vehicles
$425k
$455k
$490k
$440k
$590k
$470k
$625k
$550k
$560k
$515k
TOTAL
$1.9m
$1.3m
$2.0m
$2.4m
$1.9m
$3.0m
$2.2m
$4.2m
$3.1m
$4.4m
Appendix C: Condition Assessment Guidelines
136
Appendix C: Condition Assessment Guidelines
The foundation of good asset management practice is accurate and reliable data on
the current condition of infrastructure. Assessing the condition of an asset at a
single point in time allows staff to have a better understanding of the probability of
asset failure due to deteriorating condition.
Condition data is vital to the development of data-driven asset management
strategies. Without accurate and reliable asset data, there may be little confidence
in asset management decision-making which can lead to premature asset failure,
service disruption and suboptimal investment strategies. To prevent these
outcomes, the Municipality's condition assessment strategy should outline several
key considerations, including:
-
The role of asset condition data in decision-making
-
Guidelines for the collection of asset condition data
-
A schedule for how regularly asset condition data should be collected
Role of Asset Condition Data
The goal of collecting asset condition data is to ensure that data is available to
inform maintenance and renewal programs required to meet the desired level of
service. Accurate and reliable condition data allows municipal staff to determine the
remaining service life of assets, and identify the most cost-effective approach to
deterioration, whether it involves extending the life of the asset through remedial
efforts or determining that replacement is required to avoid asset failure.
In addition to the optimization of lifecycle management strategies, asset condition
data also impacts the Municipality's risk management and financial strategies.
Assessed condition is a key variable in the determination of an asset's probability of
failure. With a strong understanding of the probability of failure across the entire
asset portfolio, the Municipality can develop strategies to mitigate both the
probability and consequences of asset failure and service disruption. Furthermore,
with condition-based determinations of future capital expenditures, the Municipality
can develop long-term financial strategies with higher accuracy and reliability.
Guidelines for Condition Assessment
Whether completed by external consultants or internal staff, condition assessments
should be completed in a structured and repeatable fashion, according to consistent
and objective assessment criteria. Without proper guidelines for the completion of
condition assessments there can be little confidence in the validity of condition data
and asset management strategies based on this data.
Condition assessments must include a quantitative or qualitative assessment of the
current condition of the asset, collected according to specified condition rating
criteria, in a format that can be used for asset management decision-making. As a
Appendix C: Condition Assessment Guidelines
137
result, it is important that staff adequately define the condition rating criteria that
should be used and the assets that require a discrete condition rating. When
engaging with external consultants to complete condition assessments, it is critical
that these details are communicated as part of the contractual terms of the project.
There are many options available to the Municipality to complete condition
assessments. In some cases, external consultants may need to be engaged to
complete detailed technical assessments of infrastructure. In other cases, internal
staff may have sufficient expertise or training to complete condition assessments.
Developing a Condition Assessment Schedule
Condition assessments and general data collection can be both time-consuming and
resource intensive. It is not necessarily an effective strategy to collect assessed
condition data across the entire asset inventory. Instead, the Municipality should
prioritize the collection of assessed condition data based on the anticipated value of
this data in decision-making. The International Infrastructure Management Manual
(IIMM) identifies four key criteria to consider when making this determination:
-
Relevance: every data item must have a direct influence on the output
that is required
-
Appropriateness: the volume of data and the frequency of updating
should align with the stage in the assets life and the service being
provided
-
Reliability: the data should be sufficiently accurate, have sufficient spatial
coverage and be appropriately complete and current
-
Affordability: the data should be affordable to collect and maintain
Appendix D: Risk Rating Criteria
138
Appendix D: Risk Rating Criteria
Risk Definitions
Risk
Integrating a risk management framework into your asset
management program requires the translation of risk potential
into a quantifiable format. This will allow you to compare and
analyze individual assets across your entire asset portfolio.
Asset risk is typically defined using the following formula:
Risk = Probability of Failure (POF) x Consequence of
Failure (COF)
Probability of
Failure (POF)
The probability of failure relates to the likelihood that an asset
will fail at a given time. The current physical condition and
service life remaining are two commonly used risk parameters
in determining this likelihood.
POF -
Structural
The likelihood of asset failure due to aspects of an asset such
as load carrying capacity, condition or breaks
POF -
Functional
The likelihood of asset failure due to its performance
POF - Range
1 - Rare 2 - Unlikely 3 - Possible 4 - Likely 5 - Almost
Certain
Consequences
of Failure
(COF)
The consequence of failure describes the overall effect that an
asset's failure will have on an organization's asset management
goals. Consequences of failure can range from non-eventful to
impactful: a small diameter water main break in a subdivision
may cause several rate payers to be without water service for a
short time. However, a larger trunk water main may break
outside a hospital, leading to significantly higher consequences.
COF - Financial
The monetary consequences of asset failure for the
organization and its customers
COF - Social
The consequences of asset failure on the social dimensions of
the community
COF -
Environmental
The consequence of asset failure on an asset's surrounding
environment
COF -
Operational
The consequence of asset failure on the Municipality's day-to-
day operations
COF - Health &
safety
The consequence of asset failure on the health and well-being
of the community
COF - Economic The consequence of asset failure on strategic planning
COF - Range
1 - Insignificant 2 - Minor 3 - Moderate 4 - Major 5 -
Severe
Appendix D: Risk Rating Criteria
139
Risk Frameworks
Road Network - Paved (HCB/LCB) Roads
Probability of Failure
Criteria
Sub-Criteria
Value/ Range
Score
Performance
Asset Condition
0-29
5 - Almost Certain
30-49
4 - Likely
50-74
3 - Possible
75-84
2 - Unlikely
85-100
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
(60%)
Replacement
Cost
>$5,000,000
5 - Severe
$1,000,000
4 - Major
$500,000
3 - Moderate
$250,000
2 - Minor
<$50,000
1 - Insignificant
Social
(20%)
AADT -
50%
>2000
5 - Severe
600
4 - Major
400
3 - Moderate
200
2 - Minor
<50
1 - Insignificant
Road Class -
50%
Arterial
5 - Severe
Collector
3 - Moderate
Local
2 - Minor
Health & Safety
(20%)
Speed Limit
>80
5 - Severe
70
4 - Major
60
3 - Moderate
50
2 - Minor
<40
1 - Insignificant
Appendix D: Risk Rating Criteria
140
Bridges & Culverts
Probability of Failure
Criteria
Sub-Criteria
Value/Range
Score
Performance
Asset Condition
0
5 - Almost Certain
20
4 - Likely
40
3 - Possible
60
2 - Unlikely
80
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
Replacement
Cost
>$4,500,000
5 - Severe
$1,000,000
4 - Major
$500,000
3 - Moderate
$250,000
2 - Minor
<$100,000
1 - Insignificant
Buildings
Probability of Failure
Criteria
Sub-Criteria
Value/Range
Score
Performance
Asset Condition
0
5 - Almost Certain
1.6
4 - Likely
2.6
3 - Possible
3.5
2 - Unlikely
4.6 to 5
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
80%
Replacement
Cost
>$1,000,000
5 - Severe
$750,000
4 - Major
$500,000
3 - Moderate
$250,000
2 - Minor
<$100,000
1 - Insignificant
Social
20%
Asset Segment
Operations
5 - Severe
Fire Halls
4 - Major
Appendix D: Risk Rating Criteria
141
Halls & Community
Centers
3 - Moderate
Storage
2 - Minor
Land Improvements
Probability of Failure
Criteria
Sub-Criteria
Value/Range
Score
Performance
Asset Condition
0
5 - Almost Certain
20
4 - Likely
40
3 - Possible
60
2 - Unlikely
80
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
Replacement
Cost
$1,000,000
5 - Severe
$150,000
4 - Major
$50,000
3 - Moderate
$25,000
2 - Minor
$10,000
1 - Insignificant
Machinery & Equipment
Probability of Failure
Criteria
Sub-Criteria
Value/Range
Score
Performance
Asset Condition
0
5 - Almost Certain
20
4 - Likely
40
3 - Possible
60
2 - Unlikely
80
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
Replacement Cost
$500,000
5 - Severe
$125,000
4 - Major
$75,000
3 - Moderate
$25,000
2 - Minor
$0
1 - Insignificant
Appendix D: Risk Rating Criteria
142
Vehicles
Probability of Failure
Criteria
Sub-Criteria
Value/Range
Score
Performance
Asset Condition
0
5 - Almost Certain
20
4 - Likely
40
3 - Possible
60
2 - Unlikely
80
1 - Rare
Consequence of Failure
Criteria
Sub-Criteria
Value/Range
Score
Financial
80%
Replacement Cost
$750,000
5 - Severe
$125,000
4 - Major
$75,000
3 - Moderate
$25,000
2 - Minor
$0
1 - Insignificant
Social
20%
Department
Operations
5 - Severe
Protection
3 - Possible