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Asset
Management
Plan 2025
TOWNSHIP OF HORTON
2025
Horton Township
Asset Management Plan 2025
i
This Asset Management Plan was prepared by:
Empowering your organization through advanced
asset management, budgeting & GIS solutions
Horton Township
Asset Management Plan 2025
ii
Key Statistics
$41.5m
2024 Replacement Cost of Asset Portfolio
$27.9k
Replacement Cost of Infrastructure Per
Household
93%
Percentage of Assets in Fair or Better
Condition
100%
Percentage of Assets with Assessed
Condition Data
$164K
Annual Capital Infrastructure Deficit
10
Years
Recommended Timeframe for Eliminating
Annual Infrastructure Deficit
2.04%
Target Reinvestment Rate
1.64%
Actual Reinvestment Rate
Horton Township
Asset Management Plan 2025
iii
Table of Contents
1.
Executive Summary ...................................................................... 1
2.
Introduction & Context .................................................................. 4
3.
Portfolio Overview - State of the Infrastructure ............................. 22
Core Assets ................................................................................ 29
4.
Road Network ............................................................................ 30
5.
Pedestrian Bridges ..................................................................... 40
6.
Stormwater Network .................................................................. 49
Non-Core Assets ......................................................................... 58
7.
Buildings ................................................................................... 59
8.
Vehicles .................................................................................... 68
9.
Machinery & Equipment .............................................................. 77
10. Land Improvements ................................................................... 86
Strategies ................................................................................... 95
11. Growth ..................................................................................... 96
12. Financial Strategy ...................................................................... 98
Appendices ............................................................................... 108
Appendix A - Infrastructure Report Card ........................................... 109
Appendix B - Level of Service Maps & Photos .................................... 110
Township of Horton
Asset Management Plan 2025
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1. Executive Summary
Municipal infrastructure delivers critical services that are foundational to the
economic, social, and environmental health and growth of a community. The
goal of asset management is to enable infrastructure to deliver an adequate
level of service in the most cost-effective manner. This involves the ongoing
review and update of infrastructure information and data alongside the
development and implementation of asset management strategies and long-
term financial planning.
1.1 Scope
This Asset Management Plan (AMP) identifies the 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 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
-Road Network
-Pedestrian Bridges
-Stormwater Network
Core Assets
-Buildings
-Vehicles
-Machinery & Equipment
-Land Improvements
Non-Core Assets
Township of Horton
Asset Management Plan 2025
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1.2 O. Reg. 588/17 Compliance
With the development of this AMP the Municipality has achieved compliance
with July 1, 2025, requirements under O. Reg. 588/17. This includes
requirements for levels of service and inventory reporting for all asset
categories. More detail on compliance can be found in section 2.5.1 O. Reg.
588/17 Compliance Review.
1.3 Findings
The overall replacement cost of the asset categories included in this AMP
totals $41.5 million. 93% of all assets analyzed in this AMP are in fair or
better condition and assessed condition data was available for 100% of
assets.
The development of a long-term, sustainable financial plan requires an
analysis of whole lifecycle costs. This AMP utilizes proactive lifecycle
strategies to determine the lowest cost option to achieve the proposed (10-
year) 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
$844 thousand. Based on a historical analysis of sustainable capital funding
sources, the Municipality is committing approximately $680 thousand
towards capital projects or reserves per year. As a result, there is currently
an annual funding gap of $164 thousand.
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.
Township of Horton
Asset Management Plan 2025
3
1.4 Recommendations
A financial strategy was developed to address the annual capital funding
gap. The following graphic shows the annual tax change required to
eliminate the Municipality's infrastructure deficit, while achieving the target
level of service.1
Figure 2 Proposed Tax/Rate Changes
1 This is the recommended baseline increase over the next 10 years (annual increase). It assumes that all
additional revenue from this increase will be allocated exclusively to capital expenditure, while simultaneously
reallocating funds which have been historically used for debt obligations. See section 12. for a comprehensive
breakdown.
Tax-Funded
ASSETS
Average
Annual Tax
Change
10 Year
Phase-In
0.4%
Township of Horton
Asset Management Plan 2025
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2. Introduction & Context
2.1 Community Profile
Census Characteristic
Township of Horton
Ontario
Population 2021
3,182
14,223,942
Population Change 2016-2021
10.2%
5.8%
Total Private Dwellings
1,486
5,929,250
Population Density
20.1/km2
15.9/km2
Land Area
158.02 km2
892,411.76 km2
Table 1 Township of Horton Community Profile
The Township of Horton, located in Renfrew County, Ontario, surrounds the
neighbouring Town of Renfrew, which was originally part of Horton Township
before its incorporation as a separate municipality. The area was first settled
in the mid-1820s and officially incorporated as a township in 1850.
One of the region's earliest transportation routes, the Opeongo Line, served
as a vital link for settlers and traders, enabling cargo and passengers to
move inland from the Ottawa River. Today, the Township's natural
landscape--featuring the Ottawa River, Bonnechere River, and several large
lakes--continues to attract tourists, cottagers, and day-trippers from nearby
Ottawa.
With the expansion of Highway 17 to a four-lane route connecting to
Arnprior, Horton is well-positioned for continued growth as an appealing
rural destination that offers the benefits of both countryside living and urban
employment opportunities.
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Asset Management Plan 2025
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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 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.
2.2.1
Horton Township Climate Profile
The Township of Horton is situated in Eastern Ontario along the Ottawa
River. The Township is expected to experience notable effects of climate
change which include higher average annual temperatures, an increase in
total annual precipitation, and an increase in the frequency and severity of
extreme events. According to Climatedata.ca - a collaboration supported by
Environment and Climate Change Canada (ECCC) - the Township of Horton
may experience the following trends:
Higher Average Annual Temperature:
-
Between the years 1971 and 2000 the annual average temperature
was 5.4 ºC
Township of Horton
Asset Management Plan 2025
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-
Under a high emissions scenario, the annual average temperatures
are projected to increase by 8.3 ºC by the year 2050 and over 12.2
ºC by the end of the century.
Increase in Total Annual Precipitation:
-
Under a high emissions scenario, Horton Township is projected to
experience a 12% increase in precipitation by the year 2051 and a
17% 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 change.
2.2.2
Integration of Climate Change and Asset Management
Asset management practices aim to deliver sustainable service delivery - the
delivery of 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 an asset and increasing the risk
of asset failure. Desired levels of service can be more difficult to achieve due
to climate change impacts such as flooding, high heat, drought, and more
frequent and intense storms.
To achieve the sustainable delivery of services, climate change
considerations should be incorporated into asset management practices. The
integration of asset management and climate change adaptation observes
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.
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.
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Asset Management Plan 2025
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Figure 3 Total Cost of Asset Ownership
These costs can span decades, requiring planning and foresight to ensure
financial responsibility is spread equitably across generations. An asset
management plan is critical to this planning, and an essential element of
broader asset management program. The industry-standard approach and
sequence to developing a practical asset management program begins with
a Strategic Plan, followed by an Asset Management Policy and an Asset
Management Strategy, concluding with an Asset Management Plan.
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan and various
asset management documents. The strategic plan has a direct, and
cascading impact on asset management planning and reporting.
2.3.1
Foundational Asset Management Documentation
The industry-standard approach and sequence to developing a practical
asset management program begins with a Strategic Plan/Priorities, followed
by an Asset Management Policy and an Asset Management Strategy,
concluding with an Asset Management Plan.
Township of Horton
Asset Management Plan 2025
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Figure 4 Foundational Asset Management Documents
This industry standard, defined by the Institute of Asset Management (IAM),
emphasizes the alignment between the corporate strategic plan/priorities
and various asset management documents. The strategic plan has a direct,
and cascading impact on asset management planning and reporting.
Asset Management Policy
An asset management policy represents a statement of the principles
guiding the 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.
The Township adopted By-law No. 2019-26 "A By-law to Adopt an Asset
Management Strategy Policy" on April 2019 in accordance with Ontario
Regulation 588/17. The objectives of the policy include:
- To provide leadership and commitment to the development and
implementation of the Township's asset management program.
- To guide the Township by using a consistent framework across the
organization, to facilitate logical and evidence-based decision-making for the
management of assets and to support the delivery of services now and in
the future.
Strategic
Plan/Priorities
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
Township of Horton
Asset Management Plan 2025
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- To demonstrate to all stakeholder's transparency and accountability of the
decision-making processes of strategic plans, budget, service levels and
risks.
- To meet legislative requirements
- To endeavour to align with the Township's Strategic Policy.
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 Township's Asset Management Policy contains many of the key
components of an asset management strategy and may be expanded on in
future revisions or as part of a separate strategic document.
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the
Municipality's asset management program and identifies the resource
requirements needed to achieve a defined level of service. The AMP typically
includes the following content:
- State of Infrastructure
- Asset Management Strategies
- Levels of Service
- Financial Strategies
The AMP is a dynamic document that should be updated regularly as
additional asset and financial data becomes available. This will allow the
Municipality to reevaluate 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.
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Asset Management Plan 2025
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Lifecycle Management Strategies
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. Asset
deterioration has a negative effect on the ability of an asset to fulfill its
intended function, and may be characterized by increased cost, risk and
even service disruption.
To ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
There are several field intervention activities that are available to extend the
life of an asset. These activities can be generally placed into one of three
categories: maintenance, rehabilitation, and replacement. The following
table provides a description of each type of activity and the general
difference in cost.
Depending on initial lifecycle management strategies, asset performance can
be sustained through a combination of maintenance and rehabilitation, but
at some point, replacement is required. Understanding what effect these
activities will have on the lifecycle of an asset, and their cost, will enable
staff to make better recommendations.
Lifecycle
Activity
Cost
Typical Associated Risks
Maintenance
Activities that
prevent defects or
deteriorations
from occurring
$
- Balancing limited resources between
planned maintenance and reactive,
emergency repairs and interventions
- Diminishing returns associated with
excessive maintenance activities, despite
added costs
- Intervention selected may not be optimal
and may not extend the useful life as
expected, leading to lower payoff and
potential premature asset failure;
Township of Horton
Asset Management Plan 2025
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Lifecycle
Activity
Cost
Typical Associated Risks
Rehabilitation/
Renewal
Activities that
rectify defects or
deficiencies that
are already
present and may
be affecting asset
performance
$$$
- Useful life may not be extended as
expected
- May be costlier in the long run when
assessed against full reconstruction or
replacement
- Loss or disruption of service, particularly for
underground assets;
Replacement/
Reconstruction
Asset end-of-life
activities that
often involve the
complete
replacement of
assets
$$$$
$
- Incorrect or unsafe disposal of existing
asset
- Costs associated with asset retirement
obligations
- Substantial exposure to high inflation and
cost overruns
- Replacements may not meet capacity needs
for a larger population
- Loss or disruption of service, particularly for
underground assets
Table 2 Lifecycle Management: Typical Lifecycle Interventions
The Municipality's approach to lifecycle management is described within each
asset category outlined in this AMP. Staff will continue to evolve and
innovate current practices for developing and implementing proactive
lifecycle strategies to determine which activities to perform on an asset and
when they should be performed to maximize useful life at the lowest total
cost of ownership.
Risk & Criticality
Asset risk and criticality are essential building blocks of asset management,
integral in prioritizing projects and distributing funds where they are needed
most based on a variety of factors. Assets in disrepair may fail to perform
their intended function, pose substantial risk to the community, lead to
unplanned expenditures, and create liability for the municipality. In addition,
some assets are simply more important to the community than others,
based on their financial significance, their role in delivering essential
services, the impact of their failure on public health and safety, and the
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Asset Management Plan 2025
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extent to which they support a high quality of life for community
stakeholders.
Risk is a product of two variables: the probability that an asset will fail, and
the resulting consequences of that failure event. It can be a qualitative
measurement, (i.e. low, medium, high) or quantitative measurement (i.e. 1-
5), that can be used to rank assets and projects, identify appropriate
lifecycle strategies, optimize short- and long-term budgets, minimize service
disruptions, and maintain public health and safety.
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.
Township of Horton
Asset Management Plan 2025
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Table 3 illustrates the various types of consequences that can be integrated
in developing risk and criticality models for each asset category and
segments within. We note that these consequences are common, but not
exhaustive.
Type of
Consequence
Description
Direct Financial
Direct financial consequences are typically
measured as the replacement costs of the asset(s)
affected by the failure event, including
interdependent infrastructure.
Economic
Economic impacts of asset failure may include
disruption to local economic activity and commerce,
business closures, service disruptions, etc. Whereas
direct financial impacts can be seen immediately or
estimated within hours or days, economic impacts
can take weeks, months and years to emerge, and
may persist for even longer.
Socio-political
Socio-political impacts are more difficult to quantify
and may include inconvenience to the public and
key community stakeholders, adverse media
coverage, and reputational damage to the
community and the Municipality.
Environmental Environmental consequences can include pollution,
erosion, sedimentation, habitat damage, etc.
Public Health and
Safety
Adverse health and safety impacts may include
injury or death, or impeded access to critical
services.
Strategic
These include the effects of an asset's failure on the
community's long-term strategic objectives,
including economic development, business
attraction, etc.
Table 3 Risk Analysis: Types of Consequences of Failure
This AMP includes a preliminary evaluation of asset risk and criticality. Each
asset has been assigned a probability of failure score and consequence of
Township of Horton
Asset Management Plan 2025
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failure score based on available asset data. These risk scores can be used to
prioritize maintenance, rehabilitation, and replacement strategies for critical
assets.
These models have been built in Citywide for continued review, updates, and
refinements.
Levels of Service
A level of service (LOS) is a measure of the services that the Municipality is
providing to the community and the nature and quality of those services.
Within each asset category in this AMP, technical metrics and qualitative
descriptions that measure both technical and community levels of service
have been established and measured as data is available.
The Municipality measures the level of service provided at two levels:
Community Levels of Service, and Technical Levels of Service. This AMP
includes those LOS that are required under O. Reg. 588/17 as well as any
additional metrics the Municipality wishes to track.
Community Levels of Service
Community levels of service are a simple, plain language description or
measure of the service that the community receives. For core asset
categories as applicable (Roads, Pedestrian Bridges, Storm Water, Water,
and Sanitary) the province, through O. Reg. 588/17, has provided
qualitative descriptions that are required to be included in this AMP.
Technical Levels of Service
Technical levels of service are a measure of key technical attributes of the
service being provided to the community. These include mostly quantitative
measures and tend to reflect the impact of the Municipality's asset
management strategies on the physical condition of assets or the
quality/capacity of the services they provide.
For core asset categories as applicable (Roads, Pedestrian Bridges, Storm
Water, Water, and Sanitary) the province, through O. Reg. 588/17, has also
provided technical metrics that are required to be included in this AMP.
Current and Proposed Levels of Service
Proposed levels of service should be realistic and achievable within the
timeframe outlined by the Municipality. They should also be determined with
consideration of a variety of community expectations, fiscal capacity,
regulatory requirements, corporate goals and long-term sustainability. Once
proposed levels of service have been established, the Municipality must
Township of Horton
Asset Management Plan 2025
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identify a lifecycle management and financial strategy which allows these
targets to be achieved.
Core Values
The core values behind levels of service reflect the Municipality's
commitment to delivering services that meet community needs in a fair,
responsible, and sustainable way. These values help guide how
infrastructure is managed and how service expectations are set. By aligning
asset management decisions with these values, the Municipality can provide
services that people trust.
Table 4 Levels of Service: Core Values
2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for the Township of Horton is produced in
compliance with O. Reg. 588/17. The July 2025 deadline under the
regulation--the last of three AMPs--requires analysis of core and non-core
asset categories, along with the proposed levels of service for the following
ten years
The AMP summarizes the state of the infrastructure for the Municipality's
asset portfolio, establishes levels of service and the associated technical and
customer-oriented key metrics, outlines lifecycle strategies for optimal asset
Value
Description
Accessible
Services are available and accessible for customers who require
them
Reliable
Services are provided with minimal service disruption and are
available to customers in line with needs and expectations
Safe
Services are delivered such that they minimize health, safety,
and security risks
Affordable
Services are delivered at an affordable cost for both the
organization and customer
Sustainable
Services are designed to be used efficiently. Long-term plans are
in place to ensure that they are available to all customers into
the future
Township of Horton
Asset Management Plan 2025
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management and performance, and provides financial strategies to reach
sustainability for the asset categories listed below.
Figure 6 Tax Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on data as of 2024 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.
2.4.3
Deriving Replacement Costs
There are a range of methods to determine the replacement cost of an
asset, and some are more accurate and reliable than others. This AMP relies
on two methodologies:
User-Defined Cost and Cost Per Unit
Based on costs provided by municipal staff which could include
average costs from recent contracts; data from engineering reports
and assessments; staff estimates based on knowledge and experience.
Cost Inflation / CPI Tables
Historical costs of the assets are inflated based on Consumer Price
Index or Non-Residential Building Construction Price Index.
- Road Network
- Pedestrian Bridges
- Stormwater Network
- Buildings
- Vehicles
- Machinery & Equipment
- Land Improvements
Tax Funded Assets
Township of Horton
Asset Management Plan 2025
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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.
2.4.4
Estimated Service Life & 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 in this AMP
was assigned according to the knowledge and expertise of municipal staff
and supplemented by existing industry standards when necessary.
By using an asset's in-service data and its EUL, the Municipality can
determine the service life remaining (SLR) for each asset. Using condition
data and the asset's SLR, the Municipality can more accurately forecast
when it will require replacement. The SLR is calculated as follows:
Figure 7 Service Life Remaining Calculation
2.4.5
Reinvestment Rate
As assets age and deteriorate, they require additional investment to
maintain a state of good repair. The reinvestment of capital funds, through
asset renewal or replacement, is necessary to sustain an adequate level of
service. The reinvestment rate is a measurement of available or required
funding relative to the total replacement cost.
By comparing the actual vs. target reinvestment rate the Municipality can
determine the extent of any existing funding gap. The reinvestment rate is
calculated as follows:
Figure 8 Target Reinvestment Rate Calculation
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Asset Management Plan 2025
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Figure 9 Actual Reinvestment Rate Calculation
2.4.6
Deriving Asset Condition
An incomplete or limited understanding of asset condition can mislead long-
term planning and decision-making. Accurate and reliable condition data
helps to prevent premature and costly 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.
Township of Horton
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Condition Description
Criteria
Service
Life
Remaining
(%)
Very
Good
Fit for the
future
Well maintained, good condition,
new or recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally
approaching mid-stage of
expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some
elements exhibit significant
deficiencies
40-60
Poor
Increasing
potential of
affecting
service
Approaching end of service life,
condition below standard, large
portion of system exhibits
significant deterioration
20-40
Very
Poor
Unfit for
sustained
service
Near or beyond expected service
life, widespread signs of
advanced deterioration, some
assets may be unusable
0-20
Table 5 Standard Condition Rating Scale
The analysis in this AMP is based on assessed condition data only as
available. In the absence of assessed condition data, asset age is used as a
proxy to determine asset condition.
The table above summarizes the standard methodology for determining
asset condition within this AMP. For those categories in which there is a
different rating scale for condition assessment, they will be outlined within
that category's Asset Condition subsection. For instances where the scale is
the same, only the approach for condition assessment will be outlined.
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
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Municipal Infrastructure (O. Reg 588/17)2. 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 below outlines key reporting requirements under O. Reg 588/17
and the associated timelines.
Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines
2 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure
https://www.ontario.ca/laws/regulation/170588
Township of Horton
Asset Management Plan 2025
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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)
4.1 - 10.1
Complete
Replacement cost of assets
in each category
S.5(2), 3(ii)
4.1 - 10.1
Complete
Average age of assets in
each category
S.5(2), 3(iii)
4.3 - 10.3
Complete
Condition of core assets in
each category
S.5(2), 3(iv)
4.2 - 10.2
Complete
Description of municipality's
approach to assessing the
condition of assets in each
category
S.5(2), 3(v)
4.4 - 10.4
Complete
Current/proposed levels of
service in each category
S.5(2), 1(i-ii)
S.6 (1)
4.6 - 10.6
Complete
Performance measures in
each category
S.5(2), 2
S. 6 (1), 2
4.6 - 10.6
Complete
Lifecycle activities needed for
proposed levels of service for
10 years
S.5(2), 4
S. 6 (1), 4
4.4, 4.6 -
10.4, 10.6
Complete
Costs of providing lifecycle
activities for 10 years
S.5(2), 4
S. 6 (1), 4
4.6.4 -
10.6.4
Complete
Growth assumptions
S.5(2), 5(i-ii)
S.5(2), 6(i-vi)
11.1 - 11.2
Complete
Table 6 O. Reg. 588/17 Compliance Review
Township of Horton
Asset Management Plan 2025
22
3. Portfolio Overview - 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 hierarchies explain the relationship between individual assets and their
components, and a wider, more expansive network and system. How assets
are grouped in a hierarchy structure can impact how data is interpreted.
Assets were structured to support meaningful, efficient reporting and
analysis. Key category details are summarized at asset segment level.
Figure 11 Asset Hierarchy and Data Classification
-Culverts
-HCB Roads
-LCB Roads
-Street Signs
-Streetlights
-Unpaved Roads
Road Network
-Pedestrian Bridges
Pedestrian
Bridges
-Storm Mains
-Structures
Stormwater
Network
-Administration
-Fire Hall
-Public Works Garage
-Recreation
Buildings
-Fire Protection
-Public Works
Vehicles
-Administration
-Fire Protection
-Public Works
-Recreation
Machinery &
Equipment
-Public Works
-Recreation
Land
Improve-
ments
Township of Horton
Asset Management Plan 2025
23
3.2 Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The seven asset categories analyzed in this Asset Management Plan have a
total current replacement cost of $41.5 million. This estimate was calculated
using user-defined costing, cost per unit, as well as inflation of historical or
original costs to current date. This estimate reflects replacement of historical
assets with similar, not necessarily identical, assets available for
procurement today. Figure 12 illustrates the replacement cost of each asset
category.
Figure 12 Current Replacement Cost by Asset Category
3.2.2
Target vs. Actual Reinvestment Rate
The graph below depicts funding gaps by comparing the target to the current
reinvestment rate. To meet the existing long-term capital requirements, the
Municipality requires an annual capital investment of $844 thousand, for a
target portfolio reinvestment rate of 2.04%. Currently, the annual
investment from sustainable revenue sources is $680 thousand, for a
current portfolio reinvestment rate of 1.64%. Target and current re-
investment rates by asset category are detailed below.
$81k
$610k
$1.5m
$2.2m
$3.5m
$6.3m
$27.3m
$10m
$20m
$30m
Pedestrian Bridges
Land Improvements
Stormwater Network
Machinery & Equipment
Vehicles
Buildings
Road Network
Replacement Cost by Category
Township of Horton
Asset Management Plan 2025
24
Figure 13 Current Vs. Target Reinvestment Rate
3.2.3
Condition of Asset Portfolio
Figure 14 and Figure 15 summarize asset condition at the portfolio and
category levels, respectively. Based on both assessed condition, 93% of the
Municipality's infrastructure portfolio is in fair or better condition, with the
remaining 7% in poor or worse condition. Typically, assets in poor or worse
condition may require replacement or major rehabilitation in the immediate
or short-term. Targeted condition assessments may help further refine the
list of assets that may be candidates for immediate intervention, including
potential replacement or reconstruction.
Similarly, assets in fair condition should be monitored for disrepair over the
medium term. Keeping assets in fair or better condition is typically more
cost-effective than addressing assets needs when they enter the latter
stages of their lifecycle or decline to a lower condition rating, e.g., poor or
worse.
Condition data was available for all assets included in the AMP.
2.27%
0.91%
1.78%
5.54%
1.77%
0.85%
4.56%
1.24%
0.40%
0.82%
2.41%
1.91%
0.39%
1.99%
0%
1%
2%
3%
4%
5%
6%
Target Reinvestment Rate
Actual Reinvestment Rate
Township of Horton
Asset Management Plan 2025
25
Figure 14 Asset Condition: Portfolio Overview
As further illustrated in Figure 15 at the category level, the majority of
major, core infrastructure are in fair or better condition. These findings are
based on in-field condition assessment data. See Table 7 for details on how
condition data was derived for each asset segment.
Very Poor,
$762,000 (2%)
Poor,
$2,278,000
(5%)
Fair, $2,541,000
(6%)
Good,
$16,827,000
(41%)
Very Good,
$19,046,000
(46%)
Overall Portfolio Condition
Township of Horton
Asset Management Plan 2025
26
Figure 15 Asset Condition by Asset Category
Source of Condition Data
This AMP relies on assessed condition for 100% of assets, based on and
weighted by replacement cost. Assessed condition data is invaluable in asset
management planning as it better reflects the true condition of the asset and
its ability to perform its functions. The table below identifies the source of
condition data used throughout this AMP.
$1.9m
$1.5m
$9.6m
$1.4m
$598k
$4.0m
$81k
$13.9m
$637k
$12k
$2.3m
$80k
$2.3m
$120k
$57k
$766k
$1.5m
$17k
$748k
$6k
$8k
0%
20%
40%
60%
80%
100%
Vehicles
Stormwater
Network
Road Network
Machinery &
Equipment
Land
Improvements
Buildings
Pedestrian
Bridges
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
27
Asset
Category
Asset
Segment(s)
% of
Assets
with
Assessed
Conditions
Primary Source of
Condition Data
Road Network
All Segments
100%
Internal Assessments
Pedestrian
Bridges3
All Segments
100%
Internal Assessments
Storm
Network
All Segments
100%
Engineering Assessments
Buildings
All Segments
100%
Building Condition
Assessments
Vehicles
All Segments
100%
Internal Assessments
CVOR Annual
Assessments
Machinery &
Equipment
All Segments
100%
Internal Assessments
Land
Improvements
All Segments
100%
Internal Assessments
Table 7 Source of Condition Data
3.2.4
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful
life, 17% of the Municipality's assets will require replacement within the next
10 years (not accounting for asset replacement backlog).
3.2.5
Risk Matrix
Using the risk equation and preliminary risk models, Figure 16 shows how
the municipality's assets across the different asset categories are stratified
within a risk matrix.
3 The Township owns and manages two pedestrian bridges, which are scheduled to receive an external assessment
in 2025, in accordance with O.Reg. 472.10
Township of Horton
Asset Management Plan 2025
28
Figure 16 Risk Matrix: All Assets
The analysis shows that based on current risk models, approximately 7% of
the Municipality's assets, with a current replacement cost of approximately
$2.876 million, carry a risk rating of 15 or higher (red) out of 25. Assets in
this group may have a high probability of failure based on available condition
data and age-based estimates.
As new asset attribute information and condition assessment data are
integrated with the asset register, asset risk ratings will evolve, resulting in
a redistribution of assets within the risk matrix. Staff should also continue to
calibrate risk models.
We caution that since risk ratings rely on many factors beyond an asset's
physical condition or age; assets in a state of disrepair can sometimes be
classified as low risk, despite their poor condition rating. In such cases,
although the probability of failure for these assets may be high, their
consequence of failure ratings was determined to be low based on the
attributes used and the data available.
Similarly, assets with very high condition ratings can receive a moderate to
high-risk rating despite a low probability of failure. These assets may be
deemed as highly critical to the Municipality based on their costs, economic
importance, social significance, and other factors. Continued calibration of an
asset's criticality and regular data updates are needed to ensure these
models more accurately reflect an asset's actual risk profile.
Township of Horton
Asset Management Plan 2025
29
Core Assets
Township of Horton
Asset Management Plan 2025
30
4. Road Network
4.1 Inventory & Valuation
Table 8 summarizes the quantity, unit of measure, total replacement cost,
and primary replacement cost method of each asset segment in the
Municipality's road network inventory.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Culverts
905
Length (m)
$2,927,738
Cost per Unit
HCB Roads
32,608
Length (m)
$15,061,530
Cost per Unit
LCB Roads
5,570
Length (m)
$1,359,300
Cost per Unit
Street Signs
478
Assets
$60,706
CPI
Streetlights
18
Assets
$69,283
CPI
Unpaved Roads
51,909
Length (m)
$7,800,995
Cost per Unit
Total
$27,279,552
Table 8 Detailed Asset Inventory: Road Network
Figure 17 Portfolio Valuation: Road Network
$61k
$69k
$1.4m
$2.9m
$7.8m
$15.1m
$5m
$10m
$15m
$20m
Street Signs
Streetlights
LCB Roads
Culverts
Unpaved
Roads
HCB Roads
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
31
4.2 Asset Condition
Figure 18 summarizes the replacement cost-weighted condition of the
Municipality's road network. Based on a combination of field inspection data,
94% of assets are in fair or better condition; the remaining 6% of assets are
in poor to very poor condition. Condition assessments were available for
100% of assets in the Road Network, based on replacement cost. This
condition data was projected from inspection date to current year to
estimate their condition today.
Assets in poor or worse condition may be candidates for replacement in the
short term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further
degradation in condition. As illustrated in Figure 18, the majority of the
Municipality's road network assets are in fair or better condition.
Figure 18 Asset Condition: Road Network Overall
As illustrated in Figure 19, based on condition assessments, the majority of
the Municipality's road network is in fair or better condition.
Very Poor,
$6,000 (<1%)
Poor,
$1,495,000
(5%)
Fair, $2,284,000
(8%)
Good,
$13,928,000
(51%)
Very Good,
$9,566,000
(35%)
Township of Horton
Asset Management Plan 2025
32
Figure 19 Asset Condition: Road Network by Segment
4.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Annual internal assessments of road segments.
- Utilize the Road Surface Optimization, Preservation and Developmental
Policy to ensure adequate levels of service and life cycle objectives are
maintained.
- Roadside appurtenances, such as street signs receive external
assessments for condition and reflectivity
$768k
$69k
$892k
$7.8m
$25k
$6.3m
$54k
$5.4m
$2.2m
$766k
$122k
$741k
$655k
$345k
$1.1m
$67k
$6k
0%
20%
40%
60%
80%
100%
Unpaved Roads
Streetlights
Street Signs
LCB Roads
HCB Roads
Culverts
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
33
4.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential long-term replacement spikes.
Figure 20 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 20 Estimated Useful Life vs. Asset Age: Road Network
Age analysis shows that most asset segments have plenty of life left and are
in a healthy state.
Although asset age is an important measurement for long-term planning,
condition assessments provide a more accurate indication of actual asset
needs. Further, useful life estimates established as part of the PSAB 3150
implementation may not be accurate and may not reflect in-field asset
performance.
4
10.3
9
2
6
8.6
75
29.9
20
10
20
48
0
10
20
30
40
50
60
70
80
Culverts
HCB Roads
LCB Roads
Street Signs
Streetlights
Unpaved
Roads
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
34
4.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. This
process is affected by a range of factors including an asset's characteristics,
location, utilization, maintenance history and environment.
The following lifecycle strategies have been developed as a proactive
approach to managing the lifecycle of LCB and HCB 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.
For HCB (Asphalt) roads the profiles were separated to incorporate different
interventions based on traffic counts, see below:
HCB <400 AADT
Event Name
Event Class
Event Trigger
Crack Sealing
Maintenance
5 Years
(Repeated)
Cape Seal
Rehabilitation
60 Condition
Single Lift Re-surfacing
Rehabilitation
40 - 50 Condition
Full Reconstruction
Replacement
0 - 40 Condition
Table 9 Lifecycle Management Strategy: Road Network (HCB Roads)
Township of Horton
Asset Management Plan 2025
35
HCB >= 400 AADT
Event Name
Event Class
Event Trigger
Fog Sealing
Maintenance
75 - 85 Condition
Micro Surfacing
Rehabilitation
70 - 80 Condition
Scratch Coat / Asphalt Overlay
Rehabilitation
65 - 70 Condition
Shave and Pave
Rehabilitation
40 - 50 Condition
Full Reconstruction
Replacement
0 - 40 Condition
Table 10 Lifecycle Management Strategy: Road Network (HCB Roads)
LCB
Event Name
Event Class
Event Trigger
Single Surface Treatment
Rehabilitation
40 - 50 Years
Double Surface Treatment
Rehabilitation
20 - 30 Condition
Full Reconstruction
Replacement
0 - 40 Condition
Table 11 Lifecycle Management Strategy: Road Network (LCB Roads)
Township of Horton
Asset Management Plan 2025
36
4.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, service life remaining, replacement costs, and road class. The risk
ratings for assets without useful attribute data were calculated using only
condition, service life remaining, and their replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 21 Risk Matrix: Road Network
Township of Horton
Asset Management Plan 2025
37
4.6 Levels of Service
The table that follows summarize the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17, as well as any additional performance measures that the
Municipality selected for this AMP.
4.6.1
Levels of Service - Current
Metric
Type
KPI Metric
Service
Attribute
Current LOS
Community
Description, which may
include maps, of the road
network in
the Municipality and its
level of connectivity
Scope
See Appendix B
Description or images that
illustrate the different
levels of
road class pavement
condition
Quality
The Township staff provide
surface condition with a
rating as follows:
0 - 20 Very Poor
20 - 40 Poor
40 - 60 Fair
60 - 80 Good
80 - 100 Very Good
Technical
Lane-km of arterial roads
(MMS classes 1 and 2) per
land area (km/km2)
Scope
0
Lane-km of collector roads
(MMS classes 3 and 4) per
land area (km/km2)
0.42
Lane-km of local roads
(MMS classes 5 and 6) per
land area (km/km2)
0.68
Technical
Average pavement
condition index for paved
roads in the Municipality
Quality
HCB: 78
LCB: 69
Average surface condition
for unpaved roads in the
Municipality (e.g. excellent,
good, fair, poor)
Good
Township of Horton
Asset Management Plan 2025
38
Table 12: Road Network - Current Levels of Service
4.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2103, to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
The table below outlines the results for each scenario for the road network.
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$27,280,000
58.16%
$558,000
Scenario 2 - Current
Funding Rate
$27,280,000
58.16%
$515,000
Scenario 3 - Target
Condition 60% (selected)
$27,280,000
57.75%
$482,000
Table 13: Road Network - Proposed Levels of Service Scenarios
4.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Township of Horton
Asset Management Plan 2025
39
Metric
Type
KPI Metric
Proposed LOS Metric (2034)
Technical
Adherence to the
Municipality's road lifecycle
strategy, as indicated in
the TCA policy
Yes -To be tracked annually, over a 10-year
period
Average quantitative risk
rating (0-25)4
9.9
Table 14: Road Network - Additional Metrics
4.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Culverts
-
-
-
-
-
-
-
-
-
-
HCB Roads
-
-
-
-
-
$70k
$5k
-
-
-
LCB Roads
-
-
-
-
-
-
$1k
-
$41k
-
Street Signs
-
-
-
-
-
-
-
-
-
-
Streetlights
-
-
-
-
-
-
-
-
-
-
Unpaved
Roads
-
-
-
-
-
-
$78k
$123k
$120k
$145k
Total
-
-
-
-
-
$70k
$85k
$123k
$161k
$145k
Table 15: Road Network - 10-Year Capital Forecast
4 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
40
5. Pedestrian Bridges
5.1 Inventory & Valuation
Table 16 summarizes the quantity and current replacement cost of the
Municipality's pedestrian bridges.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC Method
Pedestrian Bridges
2
Assets
$81,000
CPI
TOTAL
$81,000
Table 16 Detailed Asset Inventory: Pedestrian Bridges
Figure 22 Portfolio Valuation: Pedestrian Bridges
$81k
$20k
$40k
$60k
$80k
$100k
Pedestrian Bridges
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
41
5.2 Asset Condition
Figure 23 and 25 summarize the replacement cost-weighted condition of the
Municipality's pedestrian bridges. Both pedestrian bridges are in very good
condition.
Figure 23 Asset Condition: Pedestrian Bridges Overall
Figure 24 Asset Condition: Pedestrian Bridges by Segment
Very Good,
$81,000
(100%)
$81k
0%
20%
40%
60%
80%
100%
Pedestrian Bridges
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
42
5.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Condition assessments for both pedestrian within the Township are
conducted biennially, following the guidelines of the Ontario Structure
Inspection Manual (OSIM). The next scheduled assessment will occur
later this year, in partnership with the County of Renfrew in 2026.
- In this AMP, the following rating criteria is used to determine the
current condition of Pedestrian Bridges and forecast future capital
requirements:
Condition
Rating
Very Good
80-100
Good
60-80
Fair
40-60
Poor
20-40
Very Poor
0-20
Township of Horton
Asset Management Plan 2025
43
5.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 25 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets. As seen below, pedestrian bridges have used up just over
half of their estimated useful life.
Figure 25 Estimated Useful Life vs. Asset Age: Pedestrian Bridges
55
100
0
20
40
60
80
100
120
Pedestrian Bridges
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
44
5.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance,
Rehabilitation
and
Replacement
Lifecycle activities are driven by the results of staff
inspections and aligned with the roadway condition needs
Inspection
The Municipality, in accordance with Ontario Regulation
472/10, will be conducting biennial inspections on its
pedestrian bridges.
Table 17 Lifecycle Management Strategy: Pedestrian Bridges
Township of Horton
Asset Management Plan 2025
45
5.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition and replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 26 Risk Matrix: Pedestrian Bridges
Township of Horton
Asset Management Plan 2025
46
5.6 Levels of Service
The table that follows summarize the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
5.6.1
Levels of Service - Current
Metric Type
KPI Metric
Service
Attribute
Current LOS
Community
Description of the
traffic that is
supported by
municipal bridges
(e.g. heavy transport
vehicles, motor
vehicles, emergency
vehicles, pedestrians,
cyclists)
Scope
The Township owns and maintains
two pedestrian bridges. Both
structures are designed to support
non-motorized traffic, including
pedestrians and cyclists.
Community
Description or images
of the condition of
pedestrian bridges
and how this would
affect use of the
pedestrian bridges
Quality
See 5.2.1
Technical
% of bridges in the
Municipality with
loading or
dimensional
restrictions
Scope
0%
Technical
Average bridge
condition index value
for bridges in the
Municipality
Quality
83
Table 18: Pedestrian Bridges - Current Levels of Service
5.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2068 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Township of Horton
Asset Management Plan 2025
47
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
The table below outlines the results for each scenario for the Municipality's
pedestrian bridges.
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$81,000
59.36%
$2,000
Scenario 2 - Current
Funding Rate
$81,000
58.23%
$1,000
Scenario 3 - Target
Condition 60% (selected)
$81,000
59.36%
$2,000
Table 19: Pedestrian Bridges - Proposed Levels of Service Scenarios
Township of Horton
Asset Management Plan 2025
48
5.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric
Type
KPI Metric
Proposed LOS Metric (2034)
Average quantitative risk
rating (0-25)5
5.4
Table 20: Pedestrian Bridges - Additional Metrics
5.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Pedestrian
Bridges
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
-
-
Table 21: Pedestrian Bridges - 10-Year Capital Forecast
5 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
49
6. Stormwater Network
6.1 Inventory & Valuation
Table 22 summarizes the quantity and current replacement cost of all
stormwater management assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC Method
Storm Mains
1,423
Length
(m)
$1,133,865
CPI
Structures6
90
Assets
$411,975
CPI
TOTAL
$1,545,840
Table 22 Detailed Asset Inventory: Storm Network
Figure 27 Portfolio Valuation: Storm Network
6 Structures consist of catch basins, ditch inlets and outlets
$412k
$1.1m
$500k
$1m
$2m
Structures
Storm Mains
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
50
6.2 Asset Condition
Figure 28 summarizes the replacement cost-weighted condition of the
Municipality's stormwater network assets. Based on assessment data,
approximately 100% of assets are very good condition.
Figure 28 Asset Condition: Stormwater Network Overall
Figure 29 summarizes the condition of stormwater network assets. The
analysis illustrates that all stormwater mains are in very good condition.
Figure 29 Asset Condition: Storm Network by Segment
Very Good,
$1,546,000
(100%)
$412k
$1.1m
0%
20%
40%
60%
80%
100%
Structures
Storm Mains
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
51
6.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Visual inspections are conducted by staff
- CCTV inspections are conducted by contractor once a road
reconstruction is identified prior to the design phase
Township of Horton
Asset Management Plan 2025
52
6.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 30 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets. Most assets within the category have only used a small
portion of their estimated lifespan.
Figure 30 Estimated Useful Life vs. Asset Age: Stormwater Network
3
3
75
75
0
10
20
30
40
50
60
70
80
Storm Mains
Structures
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
53
6.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity
Type
Description of Current Strategy
Maintenance
Primary activities include a yearly flush and clean of the
entire system network.
CCTV inspections and cleaning is completed as budget
becomes available, and this information will be used to
drive forward rehabilitation and replacement plans
Rehabilitation Grate replacements are conducted on an as needed basis.
Replacement
Aligned with Road Reconstruction
Table 23 Lifecycle Management Strategy: Stormwater Network
Township of Horton
Asset Management Plan 2025
54
6.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, service life remaining, and replacement costs. As no attribute data
was available for storm assets, the risk ratings for assets were calculated
using only these required, minimum asset fields.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 31 Risk Matrix: Stormwater Network
Township of Horton
Asset Management Plan 2025
55
6.6 Levels of Service
The table that follows summarizes the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
6.6.1
Levels of Service - Current
Metric
Type
KPI Metric
Service
Attribute
Current LOS
Community
Description, which may
include map, of the
user groups or areas of
the Municipality that
are protected from
flooding, including the
extent of protection
provided by the
municipal Storm Sewer
system
Scope
Appendix B
Technical
% of properties in
Municipality resilient to
a 100-year storm
Scope
100%
% of the municipal
storm sewer
management system
resilient to a 5-year
storm
100%
Table 24: Stormwater Network - Current Levels of Service
6.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2098 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Township of Horton
Asset Management Plan 2025
56
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
The table below outlines the results for each scenario for the Municipality's
stormwater network assets.
Scenarios
Replacement
Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 -
Lifecycle
$1,546,000
80.45%
$21,000
Scenario 2 -
Current Funding
Rate
$1,546,000
76.85%
$6,000
Scenario 3 -
Target Condition
60% (selected)
$1,546,000
78.41%
$13,000
Table 25: Storm Network - Proposed Levels of Service Scenarios
6.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric Type
KPI Metric
Proposed LOS Metric
Technical
% of Stormwater
Network Assessed per
year
100
Catch Basin Cleaning
(Total # flushed per
year)
100
Township of Horton
Asset Management Plan 2025
57
Metric Type
KPI Metric
Proposed LOS Metric
Conduct floodplain
mapping
Yes7
Average quantitative risk
rating (0-25)8
2.24
Table 26: Storm Network - Additional Metrics
6.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Storm
Mains
-
-
-
-
-
-
-
-
-
-
Structures
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
-
-
Table 27: Storm Network - 10-Year Capital Forecast
7 By 2034, the Municipality plans on conducting external floodplain mapping. Doing so will help the Municipality
improve infrastructure planning, design, and identify specific maintenance and upgrade needs
8 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
58
Non-Core Assets
Township of Horton
Asset Management Plan 2025
59
7. Buildings
7.1 Inventory & Valuation
Table 28 summarizes the quantity and current replacement cost of all
Buildings assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC
Method
Administration
1
Assets
$631,977
CPI
Fire Hall
1
Assets
$1,719,443
CPI
Public Works
Garage
1
Assets
$1,438,695
CPI
Recreation
1
Assets
$2,490,911
CPI
TOTAL
$6,281,026
Table 28 Detailed Asset Inventory: Buildings
Figure 32 Portfolio Valuation: Buildings
$632k
$1.4m
$1.7m
$2.5m
$500k
$1m
$2m
$2m
$3m
$3m
Administration
Public Works
Garage
Fire Hall
Recreation
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
60
7.2 Asset Condition
Figure 33 summarizes the replacement cost-weighted condition of the
Municipality's Buildings portfolio. Based wholly on assessment data, 99% of
Buildings assets are in fair or better condition.
Figure 33 Asset Condition: Buildings Overall
Figure 34 summarizes the condition of buildings by each department. Most
buildings assets are in very good condition with some components of the
Public Works garage assets dipping to a poor condition. Overall, based on
the information available, this asset category is in a very healthy state.
Very Poor,
$8,000
(<1%)
Fair, $57,000
(<1%)
Good,
$2,250,000
(36%)
Very Good,
$3,966,000
(63%)
Township of Horton
Asset Management Plan 2025
61
Figure 34 Asset Condition: Buildings by Segment
Buildings assets are unique in that they rarely require the need for
replacement based solely on condition. It is typical that, in addition to
condition, other factors, such as capacity, will impact the asset's ability to
serve the purpose originally intended.
7.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Buildings Inspections are conducted monthly by the Joint Health &
Safety Committee
- A building assessment was conducted by third-party in 2014.9
9 It is recommended that the Municipality conduct a third-party condition assessment in the coming years. Doing so
yields many benefits including: better capital planning, risk management and mitigation, ensuring that regulatory
compliance standards are met, and potential cost savings by identifying areas for proactive
maintenance/rehabilitation
$2.4m
$232k
$772k
$595k
$79k
$1.2m
$940k
$37k
$46k
$5k
$6k
$8k
0%
20%
40%
60%
80%
100%
Recreation
Public Works
Garage
Fire Hall
Administration
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
62
7.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 35 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 35 Estimated Useful Life vs. Asset Age: Buildings
19.8
37.3
42.2
18.6
45.3
94.9
96.5
92.2
0
20
40
60
80
100
120
Administration
Fire Hall
Public Works
Garage
Recreation
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
63
7.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
Table 29 outlines the Municipality's current lifecycle management strategy.
Activity Type
Description of Current Strategy
Inspection,
Maintenance
&
Rehabilitation
Municipal buildings are subject to regular inspections to
identify health & safety requirements and any visual
defects.
Depends on Grant and Upper Tier Funding opportunities
for major rehabilitation
Replacement
Assessments are completed reactively based on
compliance with regulations such as TSSA. The building
audit is used to prioritize.
Table 29 Lifecycle Management Strategy: Buildings
Township of Horton
Asset Management Plan 2025
64
7.5 Risk Analysis
The risk matrix below is generated using available asset data, including
service life remaining, replacement costs, and building department. The risk
ratings for assets without useful attribute data were calculated using only
age, service life remaining, and their replacement costs.
The matrix classifies assets based on their individual probability and
consequence of failure; each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 36 Risk Matrix: Buildings
Township of Horton
Asset Management Plan 2025
65
7.6 Levels of Service
The table that follows summarizes the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
7.6.1
Levels of Service - Current
Metric
Type
KPI Metric
Service
Attribute
Current LOS
Community
Description, which may
include maps, of the
types of buildings that
the Municipality operates
and maintains
Scope
See Section 7.1
Technical
Average condition rating
Quality
Very Good - 89
AODA compliance target
(%)
2/3
Table 30: Buildings - Current Levels of Service
7.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2113 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
Township of Horton
Asset Management Plan 2025
66
The condition value was held, and the annual investment was then
determined.
The table below outlines the results for each scenario for the Municipality's
buildings.
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$6,281,000
77.82%
$81,000
Scenario 2 - Current
Funding Rate
$6,281,000
48.36%
$21,000
Scenario 3 - Target
Condition 60% (selected)
$6,281,000
68.45%
$57,000
Table 31: Buildings - Proposed Levels of Service Scenarios
7.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric Type
KPI Metric
Proposed LOS Metric
Technical
Implementation of
maintenance manager
software10
Y
AODA compliance
3/311
Average quantitative risk
rating (0-25)12
6.34
Table 32: Buildings - Additional Metrics
10 Improves data tracking for better asset management. Projected to be implemented in 2026
11 Three facilities include: boat launch, community centre, and outdoor park on Elliot Crescent
12 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
67
7.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Administration
-
-
-
-
-
-
-
-
-
-
Fire Hall
-
-
-
-
-
-
-
-
-
-
Public Works
Garage
-
-
-
-
-
-
-
-
-
-
Recreation
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
-
-
Table 33: Buildings - 10-Year Capital Forecast
Township of Horton
Asset Management Plan 2025
68
8. Vehicles
8.1 Inventory & Valuation
Table 34 summarizes the quantity and current replacement cost of all
vehicle assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC Method
Fire Protection
4
Assets
$2,212,583
CPI
Public Works
5
Assets
$1,246,795
CPI
TOTAL
$3,459,378
Table 34 Detailed Asset Inventory: Vehicles
Figure 37 Portfolio Valuation: Vehicles
$1.2m
$2.2m
$500k
$1m
$2m
$2m
$3m
Public Works
Fire
Protection
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
69
8.2 Asset Condition
Figure 38 summarizes the replacement cost-weighted condition of the
Municipality's vehicles portfolio. Based on assessment data, 56% of vehicles
are in fair or better condition, with the remaining 44% are in poor or worse
condition. These assets may be candidates for replacement in the short
term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further
degradation in condition. Condition data was available for 100% of vehicles,
based on replacement costs.
Figure 38 Asset Condition: Vehicles Overall
Figure 39 summarizes the condition of vehicles by use case. All Public Works
vehicles are in fair or better condition but attention may be needed to
address the condition of Fire Protection vehicles in which 68% of those
assets are in poor or worse condition.
Very Poor,
$748,000
(22%)
Poor,
$766,000
(22%)
Fair, $80,000
(2%)
Very Good,
$1,864,000
(54%)
Township of Horton
Asset Management Plan 2025
70
Figure 39 Asset Condition: Vehicles by Segment
8.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Staff complete annual safety inspections on all CVOR vehicles
- A condition assessment of all vehicles was conducted in 2024
$1.2m
$698k
$80k
$766k
$748k
0%
20%
40%
60%
80%
100%
Public Works
Fire Protection
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
71
8.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 40 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets. As seen in the figure below, Fire Protection vehicles have
exceeded their estimated useful life and may be due for replacement in the
coming years.
Figure 40 Estimated Useful Life vs. Asset Age: Vehicles
23.2
5.2
23.3
15
0
5
10
15
20
25
Fire Protection
Public Works
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
72
8.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity Type
Description of Current Strategy
Maintenance/
Rehabilitation
Visual inspections completed and documented daily; fluids
inspected at every fuel stop; tires inspected monthly
Annual preventative maintenance activities include
system components check and additional detailed
inspections
Replacement
Vehicle age, kilometres and annual repair costs are taken
into consideration when determining appropriate
treatment options
Table 35 Lifecycle Management Strategy: Vehicles
Township of Horton
Asset Management Plan 2025
73
8.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, service life remaining, replacement costs, and department or
service area. The risk ratings for assets without useful attribute data were
calculated using only condition, service life remaining, and their replacement
costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 41 Risk Matrix: Vehicles
Township of Horton
Asset Management Plan 2025
74
8.6 Levels of Service
The table that follows summarizes the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
8.6.1
Levels of Service - Current
Metric Type
KPI Metric
Service
Attribute
Current LOS
Community
Description the types of
vehicles that the Municipality
operates and the services that
they help to provide to the
community
Scope
Refer to section 8.1
Technical
Average condition of vehicles
in the municipality
Quality
Fair - 57
Table 36: Vehicles - Current Levels of Service
8.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2053 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
The table below outlines the results for each scenario for vehicles assets.
Township of Horton
Asset Management Plan 2025
75
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$3,459,000
78.56%
$215,000
Scenario 2 - Current
Funding Rate
$3,459,000
34.00%
$73,000
Scenario 3 - Target
Condition 60% (selected)
$3,459,000
68.00%
$158,000
Table 37: Vehicles - Proposed Levels of Service Scenarios
8.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric Type
KPI Metric
Proposed LOS Metric
Technical
% of vehicles following a
scheduled maintenance &
replacement program13
100%
% of Vehicles Meeting
Annual Safety
Certification14
100%
Average quantitative risk
rating (0-25)15
9.02
Table 38: Vehicles - Additional Metrics
13 Strategic alignment between AMP and TCA policy
14 As required by MTO, compliance check. Critical to winter control and emergency services
15 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
76
8.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Fire
Protection
$748k
-
-
-
$766k
-
-
-
-
-
Public
Works
-
-
-
-
-
-
-
-
$155k
$470k
Total
$748k
-
-
-
$766k
-
-
-
$155k
$470k
Table 39: Vehicles - 10-Year Capital Forecast
Township of Horton
Asset Management Plan 2025
77
9. Machinery & Equipment
9.1 Inventory & Valuation
Table 40 summarizes the quantity and current replacement cost of all
equipment assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC Method
Administration
2
Assets
$82,446
CPI
Fire Protection
108
Assets
$214,668
CPI
Public Works
44
Assets
$1,667,411
CPI
Recreation
9
Assets
$234,018
CPI
TOTAL
$2,198,543
Table 40 Detailed Asset Inventory: Machinery & Equipment
Figure 42 Portfolio Valuation: Machinery & Equipment
$82k
$215k
$234k
$1.7m
$500k
$1m
$2m
$2m
Administration
Fire Protection
Recreation
Public Works
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
78
9.2 Asset Condition
Figure 43 summarizes the replacement cost-weighted condition of the
Municipality's equipment portfolio. Based on assessed conditions, 99% of
assets are in fair or better condition; the remaining 1% are in poor or worse
condition. These assets may be candidates for replacement in the short
term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further
degradation in condition.
Figure 43 Asset Condition: Machinery & Equipment Overall
Figure 44 summarizes the condition of machinery and equipment by each
department. The small number of assets in poor or worse condition are
concentrated in the public works segment.
Poor, $17,000
(<1%)
Fair, $120,000
(5%)
Good,
$637,000
(29%)
Very Good,
$1,425,000
(65%)
Township of Horton
Asset Management Plan 2025
79
Figure 44 Asset Condition: Machinery & Equipment by Segment
9.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Staff complete annual safety inspections of fire machinery &
equipment to ensure they are in state of adequate repair according to
NFPA standards
- Internal maintenance and inspection are conducted for equipment
assets
$146k
$994k
$202k
$82k
$637k
$88k
$19k
$13k
$17k
0%
20%
40%
60%
80%
100%
Recreation
Public Works
Fire Protection
Administration
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
80
9.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 45 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets. Although Recreation assets have surpassed their estimated
useful life, they remain in an adequate condition as noted above.
Figure 45 Estimated Useful Life vs. Asset Age: Machinery & Equipment
1.4
3.8
8.7
16.2
8.1
12.3
17.2
15
0
5
10
15
20
Administration
Fire Protection
Public Works
Recreation
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
81
9.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity
Type
Description of Current Strategy
Maintenance/
Rehabilitation
Maintenance program varies by department
Fire Protection Services equipment is subject to a much
more rigorous inspection and maintenance program
compared to most other departments
Machinery & equipment is maintained according to
manufacturer recommended actions and supplemented by
the expertise of municipal staff
Replacement
The replacement of machinery & equipment depends on
deficiencies identified by operators that may impact their
ability to complete required tasks
Table 41 Lifecycle Management Strategy: Machinery & Equipment
Township of Horton
Asset Management Plan 2025
82
9.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, service life remaining, and replacement costs. The risk ratings for
assets without useful attribute data were calculated using only condition,
service life remaining, and their replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure, each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 46 Risk Matrix: Machinery & Equipment
Township of Horton
Asset Management Plan 2025
83
9.6 Levels of Service
The table that follows summarizes the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
9.6.1
Levels of Service - Current
Metric Type
KPI Metric
Service
Attribute
Current LOS
Community
Description or images of
the types of equipment
that the Municipality
operates and the services
that they help to provide
to the community
Scope
Refer to section 9.1
Technical
Average condition of
equipment (e.g. very
good, good, fair, poor,
very poor)
Quality
Very Good - 83
Table 42: Machinery & Equipment - Current Levels of Service
9.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2058 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
Township of Horton
Asset Management Plan 2025
84
The table below outlines the results for each scenario for machinery &
equipment assets.
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$2,199,000
77.81%
$162,000
Scenario 2 - Current
Funding Rate
$2,199,000
36.15%
$52,00
Scenario 3 - Target
Condition 60% (selected)
$2,199,000
66.97%
$122,000
Table 43: Machinery & Equipment - Proposed Levels of Service Scenarios
9.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric Type
KPI Metric
Proposed LOS Metric
Technical
% of equipment following
a scheduled maintenance
& replacement program16
100%
Average quantitative risk
rating (0-25)17
8.37
Table 44: Machinery & Equipment - Additional Metrics
16 Strategic alignment between AMP and TCA policy
17 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
85
9.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Admini-
stration
-
-
-
$31k
-
-
$9k
-
-
-
Fire
Protection
-
-
-
$13k
$42k
$82k
$18k
-
-
-
Public
Works
-
-
-
$57k
$55k
$22k
$523k
-
-
-
Recreation
-
-
-
$88k
-
-
-
-
-
-
Total
-
-
- $188k
$98k $103k
$550k
-
-
-
Table 45: Machinery & Equipment - 10-Year Capital Forecast
Township of Horton
Asset Management Plan 2025
86
10. Land Improvements
10.1 Inventory & Valuation
Table 46 summarizes the quantity and current replacement cost of all land
improvements assets available in the Municipality's asset register.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary
RC
Method
Public Works
41
Assets
$95,891
CPI
Recreation
10
Assets
$514,389
CPI
TOTAL
$610,280
Table 46 Detailed Asset Inventory: Land Improvements
Figure 47 Portfolio Valuation: Land Improvements
$96k
$514k
$100k
$200k
$300k
$400k
$500k
$600k
Public Works
Recreation
Replacement Cost by Segment
Township of Horton
Asset Management Plan 2025
87
10.2 Asset Condition
Figure 48 summarizes the replacement cost-weighted condition of the
Municipality's land improvements portfolio. Based on assessed conditions,
100% of assets are in fair or better condition.
Figure 48 Asset Condition: Land Improvements Overall
Figure 49 summarizes the condition of land improvements by each
department.
Figure 49 Asset Condition: Land Improvements by Segment
Good,
$12,000
(2%)
Very Good,
$598,000
(98%)
$502k
$96k
$12k
96%
97%
98%
99%
100%
Recreation
Public Works
Value and Percentage of Asset Segments by Replacement Cost
Very Good
Good
Fair
Poor
Very Poor
Township of Horton
Asset Management Plan 2025
88
10.2.1
Current Approach to Condition Assessment
Accurate and reliable condition data allows staff to more confidently
determine the remaining service life of assets and identify the most cost-
effective approach to managing assets. The following describes the
Municipality's current approach:
- Joint Health & Safety Committee staff complete monthly visual
inspections of land improvements assets to ensure they are in state of
adequate repair
- There are no formal condition assessment programs in place for land
improvements
Township of Horton
Asset Management Plan 2025
89
10.3 Age Profile
An asset's age profile comprises two key values: estimated useful life (EUL),
or design life; and the percentage of EUL consumed. The EUL is the
serviceable lifespan of an asset during which it can continue to fulfil its
intended purpose and provide value to users, safely and efficiently. As assets
age, their performance diminishes, often more rapidly as they approach the
end of their design life.
In conjunction with condition data, an asset's age profile provides a more
complete summary of the state of infrastructure. It can help identify assets
that may be candidates for further review through condition assessment
programs; inform the selection of optimal lifecycle strategies; and improve
planning for potential replacement spikes.
Figure 50 illustrates the average current age of each asset type and its
estimated useful life. Both values are weighted by the replacement cost of
individual assets.
Figure 50 Estimated Useful Life vs. Asset Age: Land Improvements
7.3
14.4
27
46.4
0
10
20
30
40
50
Public Works
Recreation
Number of Years
Weighted Average Age
Weighted Average EUL
Township of Horton
Asset Management Plan 2025
90
10.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To
ensure that municipal assets are performing as expected and meeting the
needs of customers, it is important to establish a lifecycle management
strategy to proactively manage asset deterioration.
The following table outlines the Municipality's current lifecycle management
strategy.
Activity
Type
Description of Current Strategy
Maintenance,
Rehabilitation
&
Replacement
Land improvement assets include several unique asset
types and lifecycle requirements are dealt with on a case-
by-case basis
Scheduled maintenance including lawn care, dock
inspections and septic pumping are conducted seasonally.
Table 47 Lifecycle Management Strategy: Land Improvements
Township of Horton
Asset Management Plan 2025
91
10.5 Risk Analysis
The risk matrix below is generated using available asset data, including
condition, service life remaining, and replacement costs. The risk ratings for
assets without useful attribute data were calculated using only condition,
service life remaining, and their replacement costs.
The matrix stratifies assets based on their individual probability and
consequence of failure; each scored from 1 to 5. Their product generates a
risk index ranging from 1-25. Assets with the highest criticality and
likelihood of failure receive a risk rating of 25; those with lowest probability
of failure and lowest criticality carry a risk rating of 1. As new data and
information is gathered, the Municipality may consider integrating relevant
information that improves confidence in the criteria used to assess asset risk
and criticality.
These risk models have been built into the Municipality's Asset Management
Database (Citywide Assets). See Risk & Criticality section for further details
on approach used to determine asset risk ratings and classifications.
Figure 51 Risk Matrix: Land Improvements
Township of Horton
Asset Management Plan 2025
92
10.6 Levels of Service
The table that follows summarizes the Municipality's current and proposed
levels of service with respect to prescribed KPIs under Ontario Regulation
588/17 as well as any additional performance measures that the Municipality
has selected for this AMP.
10.6.1
Levels of Service - Current
Metric Type
KPI Metric
Service Attribute
Current LOS
Community
Description, which may
include maps, of the land
improvements that the
Municipality operates and
maintains
Scope
Refer to section 10.1
Technical
Average condition of land
improvements in the
municipality
Scope
Very Good - 95
Table 48: Land Improvements - Current Levels of Service
10.6.2
Levels of Service - Proposed
The scenarios that were used to analyse Horton Township's inventory were
run until 2073 to ensure all the lifecycles were included at least once. They
are also all based on the data available in the asset management system
which outlines estimated useful life and condition as well as replacement
costs which all the results are based on.
Scenario 1: Current Lifecycle Activities - this scenario utilizes the
current lifecycle activities outlined as current practice within each asset
category. The condition and annual investment were then determined.
Scenario 2: Current Funding Rate - this scenario utilizes the current
capital reinvestment within each asset category. The current annual
investment was held, and the condition was determined.
Scenario 3: Target Condition Good - this scenario utilizes a target
average condition of 60% of the infrastructure within each asset category.
The condition value was held, and the annual investment was then
determined.
Township of Horton
Asset Management Plan 2025
93
The table below outlines the results for each scenario for land improvements
assets.
Scenarios
Replacement Cost
Average
Condition
Annual Capital
Reinvestment
Scenario 1 - Lifecycle
$610,000
78.68%
$16,000
Scenario 2 - Current
Funding Rate
$610,000
54.10%
$5,000
Scenario 3 - Target
Condition 60% (selected)
$610,000
71.64%
$11,000
Table 49: Land Improvements - Proposed Levels of Service Scenarios
10.6.3
Additional Metrics
The table that follows summarize the Municipality's additional performance
measures to be tracked after the conclusion of this AMP under Ontario
Regulation 588/17.
Metric Type
KPI Metric
Proposed LOS Metric
Technical
Alignment of inspections
with best practices18
Y
AODA Compliance19
100%
Average quantitative risk
rating (0-25)20
4.73
Table 50: Land Improvements - Additional Metrics
18 Annual inspections on existing parks aligned with CSA Z614 / ASTM F1487 standards
19 Improve accessibility by achieving AODA compliance across public land improvements, ensuring inclusive
community spaces (ex. park on Elliot Crescent)
20 See Risk & Criticality in section 2.3.2
Township of Horton
Asset Management Plan 2025
94
10.6.4
10-Year Capital Forecast
Below is the projected ten-year capital forecast (scenario 3) for the
Municipality, within a 10-year timeframe.
Segment
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Public
Works
-
-
-
-
-
-
-
-
-
-
Recreation
-
-
-
-
-
-
-
-
-
-
Total
-
-
-
-
-
-
-
-
-
-
Table 51: Land Improvements - 10-Year Capital Forecast
Township of Horton
Asset Management Plan 2025
95
Strategies
Growth
Financial Strategy
Township of Horton
Asset Management Plan 2025
96
11. Growth
The demand for infrastructure and services will change over time based on a
combination of internal and external factors. Understanding the key drivers
of growth and demand will allow the Municipality to plan for new
infrastructure more effectively, and the upgrade or disposal of existing
infrastructure. Increases or decreases in demand can affect what assets are
needed and what level of service meets the needs of the community.
11.1 Renfrew County Official Plan (2022)
The Official Plan for the County of Renfrew provides the overarching land use
policy framework for all lower-tier municipalities, including Horton Township.
It establishes a vision for sustainable development, infrastructure
coordination, and natural resource management that aligns with provincial
planning directives. Within this framework, Horton is primarily designated as
Rural and Waterfront, reflecting its agricultural base, dispersed settlement
patterns, and riverfront assets. The Official Plan directs growth to existing
rural clusters where development can be supported by appropriate private
servicing, such as wells and septic systems, given the absence of full
municipal infrastructure. Development is to proceed at a scale that is
compatible with Horton's rural character, with servicing policies requiring
that site conditions demonstrate suitability to avoid negative environmental
or financial impacts. These policies support asset management principles by
ensuring that infrastructure investments are aligned with long-term lifecycle
costs and that land use decisions do not create servicing burdens beyond
municipal capacity.
The Official Plan places strong emphasis on preserving Horton's agricultural
lands and rural landscapes. It reinforces the use of Minimum Distance
Separation (MDS) to manage the interface between agricultural operations
and non-farm development, while discouraging the fragmentation of
productive farmland. In addition, Horton's environmental features--including
significant woodlands, wildlife habitat, valley lands, and riparian areas along
the Ottawa and Bonnechere Rivers--are protected through environmental
impact assessment policies that apply to development within or adjacent to
these sensitive areas. The Waterfront designation permits low-density
seasonal or permanent residential development, recreational uses, and
limited commercial activity, provided, that shoreline protection, natural
buffers, and public access are maintained. These provisions recognize the
recreational and ecological value of Horton's River corridors and ensure that
new development enhances, rather than diminishes, these assets.
Township of Horton
Asset Management Plan 2025
97
To support a vibrant and resilient rural economy, the Official Plan
encourages the establishment of home-based businesses, limited
commercial development, and tourism-related activities that are compatible
with the Township's scale and context. Economic development efforts are
supported by policies that promote reliable year-round access through the
maintenance and improvement of local transportation networks.
Infrastructure planning also supports the extension or enhancement of
broadband and telecommunications infrastructure, where feasible, to
improve service access and attract new opportunities. Collectively, the
policies set out for Horton aim to manage growth in a way that preserves its
distinct rural identity, protects vital natural and agricultural resources, and
contributes to the broader County goals of fostering healthy, livable, and
economically sustainable communities.
Township of Horton
Asset Management Plan 2025
98
12. Financial Strategy
For an asset management plan to be effective and meaningful, it must be
integrated with financial planning and long-term budgeting. The
development of a comprehensive financial plan will allow the Municipality of
Horton Township to identify the financial resources required for sustainable
asset management based on existing asset inventories, desired levels of
service, and projected growth requirements.
This report develops such a financial plan by presenting several scenarios for
consideration and culminating with final recommendations. As outlined
below, the scenarios presented model different combinations of the following
components:
1. The financial requirements for:
a. Existing assets
b. Existing/proposed service levels
c. Requirements of contemplated changes in service
d. Requirements of anticipated growth
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. Canada Community-Building Fund (CCBF)
b. Annual grants
Note: Periodic grants are normally not included due to Provincial
requirements for firm commitments. However, if moving a specific project
forward is wholly dependent on receiving a one-time grant, the replacement
cost included in the financial strategy is the net of such grant being received.
If the financial plan component results in a funding shortfall, the province
requires the inclusion of a specific plan as to how the impact of the shortfall
will be managed. In determining the legitimacy of a funding shortfall, the
province may evaluate a Municipality's approach to the following:
Township of Horton
Asset Management Plan 2025
99
1. To reduce financial requirements, consideration has been given to
revising service levels downward.
2. All asset management and financial strategies have been considered.
For example:
a. If a zero-debt policy is in place, is it warranted? If not the use of
debt should be considered.
b. Do user fees reflect the cost of the applicable service? If not,
increased user fees should be considered.
12.1 Annual Requirements & Capital Funding
12.1.1
Annual 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. In total, the
Municipality must allocate approximately $844 thousand annually to address
capital requirements for the assets included in this AMP.
Figure 52 Annual Capital Funding Requirements by Asset Category
$2k
$11k
$13k
$57k
$122k
$158k
$482k
$100k
$200k
$300k
$400k
$500k
$600k
Pedestrian Bridges
Land Improvements
Stormwater Network
Buildings
Machinery & Equipment
Vehicles
Road Network
Average Annual Capital Requirements by Category
Township of Horton
Asset Management Plan 2025
100
Where applicable, lifecycle management strategies have been developed to
identify capital costs that are realized through strategic rehabilitation and
renewal of some of the main assets in these categories. The development of
these strategies allows for a comparison of potential cost avoidance if the
strategies were to be implemented. The following compares the two different
strategies:
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.
The implementation of a proactive lifecycle strategy leads to potential annual
cost avoidance and better overall performance. 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.
12.1.2
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the
Municipality is committing approximately $680 thousand towards capital
projects per year. Given the annual capital requirement of $844 thousand,
there is currently a funding gap of $164 thousand annually.
Township of Horton
Asset Management Plan 2025
101
Figure 53 Annual Requirements vs. Capital Funding Available
12.2 Funding Objective
We have developed a scenario that would enable Horton Township to
achieve full funding within 1 to 20 years for the following assets:
Tax Funded Assets: road network, pedestrian bridges, stormwater
network, buildings, vehicles, machinery & equipment, and land
improvements
$1k
$5k
$6k
$25k
$53k
$69k
$521k
$2k
$11k
$13k
$57k
$122k
$158k
$482k
$100k
$200k
$300k
$400k
$500k
$600k
Pedestrian Bridges
Land Improvements
Stormwater Network
Buildings
Machinery & Equipment
Vehicles
Road Network
Average Annual Capital Requirements vs. Actual Capital
Reinvestment by Category
Average Annual Requirements
Actual Reinvestment Rate
Township of Horton
Asset Management Plan 2025
102
12.3 Financial Profile: Tax Funded Assets
12.3.1
Current Funding Position
The following tables show, by asset category, Horton Township's average
annual asset investment requirements, current funding positions, and
funding increases required to achieve full funding on assets funded by taxes.
Asset
Category
Avg.
Annual
Require-
ment
Annual Funding Available
Annual
Deficit
Property
Taxation
&
Reserves
21
CCBF
OCIF
Total
Available
Pedestrian
Bridges
2,000
1,000
1,000
1,000
Buildings
57,000
25,000
25,000
32,000
Land
Improvements
11,000
5,000
5,000
6,000
Machinery &
Equipment
122,000
53,000
53,000
69,000
Road Network
482,000
211,000
123,000
187,000
521,000
-39,000
Stormwater
Network
13,000
6,000
6,000
7,000
Vehicles
158,000
69,000
69,000
89,000
Total
844,000
370,000
123,000
187,000
680,000
164,000
Table 52 Annual Available Funding for Tax Funded Assets
The average annual investment requirement for the above categories is
approximately $844 thousand. Annual revenue currently allocated to these
assets for capital purposes is approximately $680 thousand leaving an
annual deficit of about $164 thousand. Put differently, these infrastructure
categories are currently funded at 80.5% of their long-term requirements.
12.3.2 Full Funding Requirements
In 2024, Horton Township had annual tax revenues of $2.9 million. 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:
21 Three year rolling average: 2022-2024
Township of Horton
Asset Management Plan 2025
103
Asset Category
Tax Change Required
for Full Funding
Pedestrian Bridges
0%
Buildings
1.1%
Land Improvements
0.2%
Machinery &
Equipment
2.4%
Road Network
-1.4%
Stormwater Network
0.2%
Vehicles
3.1%
Total
5.6%22
Table 53 Tax Increase Requirements for Full Funding
Our recommendations include capturing the above changes and allocating
them to the infrastructure deficit outlined above. The table below outlines
this concept and presents several options:
5 Years
10 Years
15 Years
20 Years
Infrastructure
Deficit
165,000
165,000
165,000
165,000
Change in Debt
Costs
-46,000
-64,000
-82,000
-100,000
Resulting
Infrastructure
Deficit:
119,000
101,000
83,000
65,000
Tax Increase
Required
4.1%
3.5%
2.9%
2.3%
Annually:
0.8%
0.4%
0.2%
0.1%
Table 54 Tax Increase Options 5-20 Years
12.3.3
Financial Strategy Recommendations
Considering all the above information, we recommend the 10-year option.
This involves full funding being achieved over 10 years by:
22 A negative funding figure (road network) for an asset category does not inherently mean it is overfunded;
rather, it reflects a reallocation of resources within a shared property tax pool to better align with overall asset
management priorities in any given year.
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a) when realized, reallocating the debt cost reductions to the infrastructure
deficit as outlined above
b) increasing tax revenues by 0.4% each year for the next 10 years solely
for the purpose of phasing in the proposed levels of service for asset
categories covered in this section of the AMP
c) adjusting tax revenue increases in future year(s) when allocations to
capital expenditure exceed or fail to meet budgeted amounts
d) allocating the current CCBF and OCIF revenue as outlined previously.
e) reallocating appropriate revenue from categories in a surplus position to
those in a deficit position.
f) reallocating appropriate revenue from categories in a surplus position to
those in a deficit position, when applicable
g) increasing existing and future infrastructure budgets by the applicable
inflation index on an annual basis in addition to the deficit phase-in.
Notes:
1. As in the past, periodic senior government infrastructure funding will
most likely be available during the phase-in period. By Provincial AMP
rules, this periodic funding cannot be incorporated into an AMP unless
there are firm commitments in place. We have included OCIF formula-
based funding, if applicable, since this funding is a multi-year
commitment23.
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.
This option achieves full funding within 10 years by achieving the
Municipality's proposed level of service while prioritizing financial
sustainability over the period modeled.
23 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.
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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.
12.4 Use of Debt
The following tables outline how Horton Township has historically used debt
for investing in the asset categories as listed. There is currently $2.5 million
of debt outstanding for the assets covered by this AMP with corresponding
principal and interest payments of $214,000 (2024), well within its
provincially prescribed maximum of $632,613.24
Asset Category
Current
Debt
Outstanding
Use of Debt in the Last Five Years
2019
2020
2021
2022
2023
Pedestrian Bridges
Buildings
Land Improvements
Machinery &
Equipment
Road Network
2,493,000
2,452,000
Stormwater Network
Vehicles
Total
2,493,000
2,452,000
Table 55: Current Debt Overview
24 Schedule 81
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Asset
Category
Principal & Interest Payments in the Next Ten Years
2024
2025
2026
2027
2028
2029
2034
Pedestrian
Bridges
Buildings
Land
Improvements
Machinery &
Equipment
Road Network
214,000
210,000
205,000
201,000
198,000
168,000
150,000
Stormwater
Network
Vehicles
Total
214,000
210,000
205,000
201,000
198,000
168,000
150,000
Table 56: Principal Interest
The revenue options outlined in this plan allow Horton Township to fully fund
its long-term infrastructure requirements without further use of debt.
12.5 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:
a) the ability to stabilize tax rates when dealing with variable and
sometimes uncontrollable factors
b) financing one-time or short-term investments
c) accumulating the funding for significant future infrastructure
investments
d) managing the use of debt
e) normalizing infrastructure funding requirement
By asset category, the table below outlines the details of the reserves
currently available to Horton Township:
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Asset Category
Reserve Balance
Pedestrian Bridges
3,000
Buildings
629,000
Land Improvements
3,000
Machinery & Equipment
589,000
Road Network
5,000
Stormwater Network
3,000
Vehicles
95,000
Total
1,327,000
Table 57: Use of Reserves
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
consider 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 Horton Township's
judicious use of debt in the past, allows the scenarios to assume that, if
required, available reserves and debt capacity can be used for high priority
and emergency infrastructure investments in the short- to medium-term.
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Appendices
Appendix A - Infrastructure Report Card
Appendix B - Level of Service Maps
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Appendix A - Infrastructure Report Card
Asset
Category
Replacement
Cost
Average
Condition
Financial Capacity
Road Network
$ 27.3m
Good
Annual
Requirement:
$482,000
Funding Available:
$521,000
Annual Surplus:
$39,000
Pedestrian
Bridges
$ 81,000
Very Good
Annual
Requirement:
$2,000
Funding Available:
$1,000
Annual Deficit:
1,000
Stormwater
Network
$ 1.5m
Very Good
Annual
Requirement:
$13,000
Funding Available:
$6,000
Annual Deficit:
$7,000
Buildings
$ 6.3m
Very Good
Annual
Requirement:
$57,000
Funding Available:
$25,000
Annual Deficit:
$32,000
Vehicles
$ 3.5m
Fair
Annual
Requirement:
$158,000
Funding Available:
$69,000
Annual Deficit:
$89,000
Machinery &
Equipment
$ 2.2m
Very Good
Annual
Requirement:
$122,000
Funding Available:
$5,000
Annual Deficit:
$69,000
Land
Improvements
$ 610,000
Very Good
Annual
Requirement:
$11,000
Funding Available:
$5,000
Annual Deficit:
$6,000
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Appendix B - Level of Service Maps & Photos
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