Town of Laurentian Hills Asset Management Plan 2025
Laurentian Hills, Ontario
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Asset Management
Plan 2025
Town of Laurentian Hills
October 2025
Laurentian Hills
Asset Management Plan 2025
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This Asset Management Plan was prepared by:
Empowering your organization through advanced asset management,
budgeting & GIS solutions
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Asset Management Plan 2025
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Key Statistics
$81.0 m
2024 Replacement Cost of Asset Portfolio
$58.1 k
Replacement Cost of Infrastructure Per
Household
48%
Percentage of Assets in Fair or Better Condition
35%
Percentage of Assets with Assessed Condition
Data
$2.24 m
Annual Capital Infrastructure Deficit
0.82%
Actual Investment Rate
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Table of Contents
1.
Executive Summary............................................................................ 1
2.
Introduction & Context........................................................................ 3
Portfolio Overview................................................................................17
3.
State of the Infrastructure ................................................................. 18
Proposed Levels of Service ...................................................................26
4.
Proposed Levels of Service Analysis..................................................... 27
Category Analysis: Core Assets.............................................................36
5.
Road Network.................................................................................. 37
6.
Water Network................................................................................. 49
7.
Wastewater Network......................................................................... 60
8.
Buildings & Facilities ......................................................................... 71
9.
Vehicles.......................................................................................... 81
10. Machinery & Equipment..................................................................... 91
Strategies...........................................................................................101
11. Growth ..........................................................................................102
12. Financial Strategy ...........................................................................104
13. Recommendations & Key Considerations .............................................115
Appendices .........................................................................................117
Appendix A
Infrastructure Report Card ...................................................118
Appendix B
10-Year Capital Requirements...............................................119
Appendix C
Level of Service Maps & Photos.............................................125
Appendix D
Risk Rating Criteria .............................................................129
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1.
Executive Summary
Municipal infrastructure delivers critical services that are foundational to the economic, social,
and environmental health and growth of a community. The goal of asset management is to
enable infrastructure to deliver an adequate level of service in the most cost-effective manner.
This involves the ongoing review and update of infrastructure information and data alongside the
development and implementation of asset management strategies and long-term financial
planning.
1.1 Scope
This Asset Management Plan (AMP) identifies the current practices and strategies that are in
place to manage public infrastructure and makes recommendations where they can be further
refined. Through the implementation of sound asset management strategies, the Town of
Laurentian Hills can ensure that public infrastructure is managed to support the sustainable
delivery of municipal services.
This AMP includes the following asset categories:
Figure 1 Core and Non-Core Asset Categories
1.2 Compliance
With the development of this AMP, the Town of Laurentian Hills has achieved compliance with
2025 requirements under O. Reg. 588/17. This includes requirements for proposed levels of
service and inventory reporting for all asset categories.
Road Network
Water Network
Wastewater Network
Core Assets
Buildings & Facilities
Vehicles
Machinery & Equipment
Non-Core Assets
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1.3 Findings
The overall replacement cost of the asset categories included in this AMP totals $81.0 million.
48% of all assets analyzed in this AMP are in fair or better condition and assessed condition data
was available for 35% of assets. For the remaining 65% of assets, assessed condition data was
unavailable, and asset age was used to approximate condition
a data gap that persists in most
municipalities. Generally, age misstates the true condition of assets, making assessments
essential to accurate asset management planning, and a recurring recommendation in this AMP.
The development of a long-term, sustainable financial plan requires an analysis of whole lifecycle
costs. This AMP uses a combination of proactive lifecycle strategies (paved roads) and
replacement only strategies (all other assets) to determine the lowest cost option to maintain
the current level of service.
To meet capital replacement and rehabilitation needs for existing infrastructure, prevent
infrastructure backlogs, and achieve long-term sustainability, the Town
requirement totals $2.91 million. Based on a historical analysis of sustainable capital funding
sources, the Town is committing approximately $666,000 towards capital projects or reserves
per year. As a result, there is currently an annual funding gap of $2.24 million.
It is important to note that this AMP represents a snapshot in time and is based on the best
available processes, data, and information at the Town. Strategic asset management planning is
an ongoing and dynamic process that requires continuous improvement and dedicated
resources.
1.4 Recommendations
To meet the proposed level of service selected for this asset management plan, no financial
strategy was needed as the Town is currently meeting the proposed level of service. Therefore,
there are no funding increases recommended or required to meet the proposed level of service
selected for this asset management plan. This is further detailed throughout the asset
management plan within Section 4 and Section 12.
Recommendations to guide continuous refinement of the Town
These include:
Re-evaluate the current level of investment and current infrastructure needs and consider
the Towns risk tolerance, specifically as it relates to critical infrastructure assets
Review data to update and maintain a complete and accurate dataset
Develop a condition assessment strategy with a regular schedule
Review and update lifecycle management strategies
Development and regularly review short- and long-term plans to meet capital
requirements
Measure current levels of service and identify sustainable proposed levels of service
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2.
Introduction & Context
2.1 Community Profile
Census Characteristic
Laurentian Hills
Ontario
Population 2021
2,885
14,223,942
Population Change 2016-2021
-2.6%
5.8%
Total Private Dwellings
1,393
5,929,250
Population Density
4.5/km2
15.9/km2
Land Area
634.31 km2
892,411.76 km2
Table 1 Laurentian Hills Community Profile1
The Town of Laurentian Hills, located in Renfrew County in the northwestern part of the Ottawa
Valley, was incorporated on January 1, 2000, through the amalgamation of the former
Townships of Rolph, Buchanan, Wylie & McKay and the Village of Chalk River. Nestled along the
Ottawa River, the municipality surrounds the Town of Deep River to the north, west, and south,
and lies approximately 200 kilometres northwest of Ottawa and 147 kilometres south of North
Bay.
Covering a land area of 634.3 square kilometres, Laurentian Hills includes the communities of
Chalk River, Point Alexander, Rolphton, Meilleurs Bay, Moor Lake, and Wylie. A significant
portion of the municipality
approximately 51.8%
consists of Crown or federally owned land,
which is primarily used for military purposes and forestry research, including areas adjacent to
the Chalk River Laboratories.
The local economy is supported by a combination of forestry, tourism, recreation, and nuclear
research. Historically, Laurentian Hills was home to the Nuclear Power Demonstration (NPD)
reactor, and the nearby Chalk River Laboratories continue to play a significant role in the
seasonal tourism and outdoor activities.
provide access to local lakes, while multiple playgrounds in subdivisions like Point Alexander,
McKee, Glenfiddich, and Mountain View offer family-friendly spaces for children. Outdoor skating
rinks are maintained by community volunteers in several subdivisions during the winter months.
The town also features parks such as Tenna-Brise Park, Anne Crosson Park, and the Chalk River
Ball Park, which serve as gathering spaces for events, sports, and recreation throughout the
year.
1 Information obtained from Statistics Canada- 2021 census of population
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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,
eport (CCCR
2019) was released by Environment and Climate Change Canada (ECCC).
The report revealed that between 1948 and 2016, the average temperature increase across
Canada was 1.7°C; moreover, during this time, 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
Laurentian Hills Climate Profile
Laurentian Hills is expected to experience notable effects of climate change which include higher
average annual temperatures, and an increase in total annual precipitation. According to
Climatedata.ca, a collaboration supported by Environment and Climate Change Canada (ECCC),
the Municipality may experience the following trends:
Higher Average Annual Temperature
Between the years 1971 and 2000 the annual average temperature was 4.6ºC
Under a high emissions scenario, the annual average temperatures are projected to be
7.5ºC by the year 2050, 9.6ºC for the 2051-2080 period, and 11.4ºC by the end of this
century.
Increase in Total Annual Precipitation
Under a high emissions scenario, Laurentian Hills is projected to experience a 12%
increase in precipitation by the year 2080 and an 18% increase by the end of the century.
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2.2.2
Consideration of Climate Change with Asset Management Strategies
Asset management practices aim to deliver sustainable service delivery - providing services to
residents today without compromising the services and well-being of future residents. Climate
change threatens sustainable service delivery by reducing the useful life of assets and increasing
the risk of asset failure. Achieving desired levels of service can become more challenging due to
climate change impacts such as flooding, high heat, drought, and more frequent and intense
storms.
To achieve sustainable service delivery, climate change considerations should be incorporated
into asset management practices. Integrating asset management and climate change adaptation
adheres to industry best practices and enables the development of a holistic approach to risk
management.
2.3 Asset Management Overview
Municipalities are responsible for managing and maintaining a broad portfolio of infrastructure
assets to deliver services to the community. The goal of asset management is to minimize the
lifecycle costs of delivering infrastructure services, manage the associated risks, while
maximizing the value ratepayers receive from the asset portfolio.
The acquisition of capital assets accounts for only 10-20% of their total cost of ownership. The
remaining 80-90% comes from operations and maintenance. This AMP focuses its analysis on
the capital costs to maintain, rehabilitate and replace existing municipal infrastructure assets.
Figure 2 Total Cost of Asset Ownership
These costs can span decades, requiring planning and foresight to ensure financial responsibility
is spread equitably across generations. An asset management plan is critical to this planning,
and an essential element of broader asset management program. The industry-standard
approach and sequence to developing a practical asset management program begins with a
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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, followed by an Asset Management Policy and an Asset
Management Strategy, concluding with an Asset Management Plan.
Figure 3 Foundational Asset Management Documents
This industry standard, defined by the Institute of Asset Management (IAM), emphasizes the
alignment between the corporate strategic plan and various asset management documents. The
strategic plan has a direct, and cascading impact on asset management planning and reporting.
Asset Management Policy
An asset management policy represents a statement of the principles guiding the Town
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 Town of Laurentian Hills adopted the Strategic Asset Management Policy (Bylaw 30-19) on
October 16, 2019, in accordance with Ontario Regulation 588/17. The policy outlines the
Strategic
Plan
Asset
Management
Policy
Asset
Management
Strategy
Asset
Management
Plan
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commitment to providing services to residents in a fiscally responsible manger that supports and
healthy and vibrant community and is built upon the following principles:
Forward Looking: The Town will take a long term view while considering demographic
and economic trends.
Budgeting and Planning: The Town shall take into account any applicable budgets or
fiscal plans.
Prioritizing: The Town will clearly identify infrastructure priorities which will drive
investment decisions.
Transparency: The Town shall be evidence-based and transparent.
Consistency: The Town shall ensure the continued provision of core public services.
Environmentally Consciousness: The Town shall minimize the impact of infrastructure
on the environment.
Health and Safety: The Town shall ensure that the health and safety of workers in the
construction and maintenance of infrastructure assets is protected.
Community Focused: The Town shall promote community benefits, being the
supplementary social and economic benefits arising from and infrastructure project.
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 Town plans to achieve
asset management objectives through planned activities and decision-making criteria.
The Town
management strategy and may be expanded in future revisions or as part of a separate strategic
document.
Asset Management Plan
The asset management plan (AMP) presents the outcomes of the Town
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 living document that should be updated regularly as additional asset and financial
data becomes available. This will allow the Town to re-evaluate the state of infrastructure and
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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Lifecycle Management Strategies
The condition or performance of most assets will deteriorate over time. This process is affected
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;
Rehabilitation/
Renewal
Activities that
rectify defects or
deficiencies that
are already present
and may be
affecting asset
performance
$$$
Useful life may not be extended as expected;
May be costlier in the long run when assessed against full
reconstruction or replacement;
Loss or disruption of service, particularly for underground
assets;
Replacement/
Reconstruction
Asset end-of-life
activities that often
involve the
$$$$$
Incorrect or unsafe disposal of existing asset;
Costs associated with asset retirement obligations;
Substantial exposure to high inflation and cost overruns;
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complete
replacement of
assets
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 Town
this AMP. Staff will continue to evolve and innovate current practices for developing and
implementing proactive lifecycle strategies to determine which activities to perform on an asset
and when they should be performed to maximize useful life at the lowest total cost of ownership.
Risk & Criticality
Asset risk and criticality are essential building blocks of asset management, integral in
prioritizing projects and distributing funds where they are needed most based on a variety of
factors. Assets in disrepair may fail to perform their intended function, pose substantial risk to
the community, lead to unplanned expenditures, and create liability for the municipality. In
addition, some assets are simply more important to the community than others, based on their
financial significance, their role in delivering essential services, the impact of their failure on
public health and safety, and the extent to which they support a high quality of life for
community stakeholders.
Risk is a product of two variables: the probability that an asset will fail, and the resulting
consequences of that failure event. It can be a qualitative measurement, (i.e. low, medium,
high) or quantitative measurement (i.e. 1-5), that can be used to rank assets and projects,
identify appropriate lifecycle strategies, optimize short- and long-term budgets, minimize service
disruptions, and maintain public health and safety.
Figure 4 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.
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Probability of Failure
Several factors can help decision-
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
Consequences of asset failure will vary across the infrastructure portfolio; the failure of some
assets may result primarily in high direct financial cost but may pose limited risk to the
community. Other assets may have a relatively minor financial value, but any downtime may
pose significant health and safety hazards to residents.
Table 3 illustrates the various types of consequences that can be integrated in developing risk
and criticality models for each asset category and segments within. We note that these
consequences are common, but not exhaustive.
Type of Consequence
Description
Direct Financial
Direct financial consequences are typically measured as the
replacement costs of the asset(s) affected by the failure event,
including interdependent infrastructure.
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
long-term strategic objectives, including economic development,
business attraction, etc.
Table 3 Risk Analysis: Types of Consequences of Failure
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This AMP includes a preliminary evaluation of asset risk and criticality. Each asset has been
assigned a probability of failure score and consequence of failure score based on available asset
data. These risk scores can be used to prioritize maintenance, rehabilitation, and replacement
strategies for critical assets.
These models have been built in Citywide for continued review, updates, and refinements.
Levels of Service
A level of service (LOS) is a measure of the services that the Town 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 Town measures the level of service provided at two levels: Community Levels of Service,
and Technical Levels of Service.
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, Water and
Wastewater) 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 Town
the physical condition of assets or the
quality/capacity of the services they provide.
For core asset categories as applicable, the province, through O. Reg. 588/17, has also provided
technical metrics that are required to be included in this AMP.
Current and Proposed Levels of Service
Current LOS are the past performance metrics of an asset category up until present day. In
future date.
It is important to note that O. Reg 588/17 does not dictate which proposed LOS metrics
resident desires, political goals, and financial capacity. This can range from increasing service
levels and costs, to maintaining or even reducing current performance in order to mitigate future
cost increases. Regardless of the proposed LOS chosen, O. Reg 588/17 requires municipalities to
demonstrate the achievability of their selected metrics.
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2.4 Scope & Methodology
2.4.1
Asset Categories for this AMP
This asset management plan for the Town of Laurentian Hills is produced in compliance with O.
Reg. 588/17. The July 2025 deadline under the regulation, the third of three AMPs
requires
analysis of core and non-core asset categories, as well as proposed service levels and how to
fund them.
The AMP summarizes the state of the infrastructure for the Town
current levels of service and the associated technical and customer oriented key metrics,
outlines lifecycle strategies for optimal asset management and performance, and provides
financial strategies to reach sustainability for the asset categories listed below.
Figure 5 Tax Funded and Rate Funded Asset Categories
2.4.2
Data Effective Date
It is important to note that this plan is based on data as of December 2024; therefore, it
represents a snapshot in time using the best available processes, data, and information at the
Town. 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.
Road Network
Buildings & Facilities
Vehicles
Machinery & Equipment
Tax Funded Assets
Water Network
Wastewater Network
Rate Funded Assets
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Cost Inflation / CPI Tables
Historical costs of the assets are inflated based on Consumer Price Index or Non-
Residential Building Construction Price Index.
User-defined costs based on reliable sources are a reasonably accurate and reliable way to
determine asset replacement costs. Cost inflation is typically used in the absence of reliable
replacement cost data. It is a reliable method for recently purchased and/or constructed assets
where the total cost is reflective of the actual costs that the Town 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 Town 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.
-service data and its EUL, the Town can determine the service life
Town can more
accurately forecast when it will require replacement. The SLR is calculated as follows:
Figure 6 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 Town can determine the extent of any
existing funding gap. The reinvestment rate is calculated as follows:
Figure 7 Target Reinvestment Rate Calculation
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Figure 8 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 Town
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.
Condition
Description
Criteria
Service Life
Remaining (%)
Very Good
Fit for the
future
Well maintained, good condition, new or
recently rehabilitated
80-100
Good
Adequate for
now
Acceptable, generally approaching mid-
stage of expected service life
60-80
Fair
Requires
attention
Signs of deterioration, some elements
exhibit significant deficiencies
40-60
Poor
Increasing
potential of
affecting
service
Approaching end of service life, condition
below standard, large portion of system
exhibits significant deterioration
20-40
Very Poor
Unfit for
sustained
service
Near or beyond expected service life,
widespread signs of advanced
deterioration, some assets may be
unusable
0-20
Table 4 Standard Condition Rating Scale
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.
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2.5 Ontario Regulation 588/17
As part of the Infrastructure for Jobs and Prosperity Act, 2015, the Ontario government
introduced Regulation 588/17 - Asset Management Planning for Municipal Infrastructure (O. Reg
588/17)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 9 below outlines key reporting requirements under O. Reg 588/17 and the associated
timelines.
Figure 9 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
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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)
5.1
10.1
Complete
Replacement cost of assets in each
category
S.5(2), 3(ii)
5.1
10.1
Complete
Average age of assets in each category
S.5(2), 3(iii)
5.3
10.3
Complete
Condition of core assets in each
category
S.5(2), 3(iv)
5.2
10.2
Complete
to assessing the condition of assets in
each category
S.5(2), 3(v)
5.4
10.4
Complete
Current levels of service in each
category
S.5(2), 1(i-ii)
5.7
10.7
Complete
Current performance measures in each
category
S.5(2), 2
5.7
10.7
Complete
Lifecycle activities needed to maintain
current levels of service for 10 years
S.5(2), 4
5.4
10.4
Complete
Costs of providing lifecycle activities
for 10 years
S.5(2), 4
5.5
10.5
Complete
Growth considerations
S.6(1), 5
11.1
11.2
Complete
Proposed levels of service for each
category for next 10 years
S.6(1), 1(i-ii)
5.8
10.8
Complete
Explanation of appropriateness of
proposed levels of service
S.6(1), 2(i-iv)
4.2
Complete
Lifecycle management activities for
proposed levels of service
S.6(1), 4(i)
4.2
Complete
10-year capital costs for proposed
levels of service
S.6(1), 4(ii)
Appendix B
Complete
Annual funding availability projections
S.6(1), 4(iii)
4.2
Complete
Table 5 O. Reg. 588/17 Compliance Review
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Portfolio Overview
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3.
State of the Infrastructure
The state of the infrastructure (SOTI) summarizes the inventory, condition, age profiles, and
other key performance indicators for the Town
presented for all core and non-core asset categories.
3.1 Asset Hierarchy & Data Classification
Asset hierarchy explains the relationship between individual assets and their components, and a
wider, more expansive network and system. How assets are grouped in a hierarchy structure
can impact how data is interpreted. Assets were structured to support meaningful, efficient
reporting and analysis. Key category details are summarized at asset segment level.
Figure 10 Asset Hierarchy and Data Classification
Culverts
Paved Surface (HCB)
Paved Surface (LCB)
Pedestrian Bridges
Streetlighting
Road Network
Equipment
Pumping Stations
Water Mains
Water Tower
Water Treatment Plant
Water Network
Pumping Stations
Sewage Treatment Plant
Sewer Mains
Wastewater
Network
Fire
Land Improvements
Landfill
Libraries
Municipal
Public Works
Recreation
Buildings &
Facilities
Fire Vehicles
Public Works Vehicles
Vehicles
Fire
Municipal
Public Works
Recreation
Machinery &
Equipment
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3.2 Portfolio Overview
3.2.1
Total Replacement Cost of Asset Portfolio
The six asset categories analyzed in this Asset Management Plan have a total current
replacement cost of $81.0 million. This estimate was calculated using user-defined costing, as
well as inflation of historical or original costs to current date. This estimate reflects replacement
of historical assets with similar, not necessarily identical, assets available for procurement today.
Figure 11 illustrates the replacement cost of each asset category; at 34% of the total portfolio,
wastewater network forms the largest share of the Town
water
network at 30%.
Figure 11 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 Town requires an annual capital
investment of $2.91 million, for a target portfolio reinvestment rate of 3.59%. Currently, annual
investment from sustainable revenue sources is $666 thousand, for a current portfolio
reinvestment rate of 0.82%. Target and current re-investment rates by asset category are
detailed below.
$3.4m
$4.2m
$7.0m
$14.6m
$24.2m
$27.6m
$10m
$20m
$30m
Vehicles
Machinery & Equipment
Road Network
Buildings & Facilities
Water Network
Wastewater Network
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Figure 12 Current Vs. Target Reinvestment Rate
3.2.3
Condition of Asset Portfolio
Figure 13 and Figure 14 summarize asset condition at the portfolio and category levels,
respectively. Based on both assessed condition and age-based analysis, 48% of the Town
infrastructure portfolio is in fair or better condition, with the remaining 52% 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 all the asset categories including for the majority of the road
network and vehicles. For all remaining assets, age was used as an approximation of condition
for these assets. Age-based condition estimations can skew data and lead to potential under- or
overstatement of asset needs.
Further, when past assessed condition data was available, it was projected to the current year-
end (2024
established at the time of the original condition assessment. The rate of this deterioration will
also depend on lifecycle curves used to project condition over time.
4.84%
2.23%
6.83%
7.78%
3.05%
3.48%
2.29%
1.37%
3.97%
0.48%
0.27%
0.32%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Target Reinvestment Rate
Actual Reinvestment Rate
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Figure 13 Asset Condition: Portfolio Overview
As further illustrated in Figure 14 at the category level, the majority of major, core infrastructure
including road, water and wastewater are in poor or worse condition, based on in-field condition
assessment data and aged-based condition data. The majority of vehicles are in fair or better
condition, based on recent condition assessments. See Table 6 for details on how condition data
was derived for each asset segment.
Figure 14 Asset Condition by Asset Category
Very Poor,
$27,086,000
(33%)
Poor,
$14,792,000
(18%)
Fair,
$28,906,000
(36%)
Good,
$2,457,000
(3%)
Very Good,
$7,725,000
(10%)
Overall Portfolio Condition
$673k
$297k
$752k
$3.1m
$2.8m
$808k
$1.0m
$540k
$10.0m
$9.3m
$484k
$7.0m
$2.0m
$1.3m
$8.1m
$1.3m
$526k
$3.5m
$12.2m
$9.9m
$889k
$3.2m
$882k
0%
20%
40%
60%
80%
100%
Water Network
Wastewater
Network
Machinery &
Equipment
Vehicles
Buildings &
Facilities
Road Network
Very Good
Good
Fair
Poor
Very Poor
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As outlined previously, buildings and facilities are not componentized into their individual major
elements and components. This limits the validity of current condition estimates as they are
Hall
Building
Source of Condition Data
This AMP relies on assessed condition for 35% of assets, based on and weighted by replacement
cost. For the remaining assets, age is used as an approximation of condition. Assessed condition
data is invaluable in asset management planning as it reflects the true condition of the asset and
its ability to perform its functions. Table 6 below identifies the source of condition data used
throughout this AMP.
Asset
Category
Asset Segment(s)
% of Assets
with
Assessed
Conditions
Source of Condition Data
Road Network
Paved Roads (HCB)
Paved Roads (LCB)
97%
100%
2017 McIntosh Perry
& 2024 Staff Assessments
Water Network
Water Mains
100%
Staff Assessments
Wastewater
Network
Sewer Mains
100%
Staff Assessments
Buildings &
Facilities
Fire
Land Improvements
Public Works
Recreation
38%
26%
6%
27%
Staff Assessments
Vehicles
Fire Vehicles
Public Works Vehicles
79%
67%
Staff Assessments
Machinery &
Equipment
Fire
Public Works
Recreation
17%
64%
67%
Staff Assessments
Table 6 Source of Condition Data
3.2.4
Service Life Remaining
Based on asset age, available assessed condition data and estimated useful life, 44% of the
Town
Refer to Appendix B
10-Year
Capital Requirements.
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Figure 15 Service Life Remaining by Asset Category
3.2.5
Risk Matrix
Using the risk equation and preliminary risk models, Figure 16 shows how assets across the
different asset categories are stratified within a risk matrix.
Figure 16 Risk Matrix: All Assets
$11.3m
$9.3m
$647k
$767k
$1.5m
$150k
$747k
$1.5m
$1.7m
$902k
$3.3m
$1.5m
$12.0m
$16.2m
$330k
$2.3m
$10.8m
$4.0m
0%
25%
50%
75%
100%
Water Network
Wastewater
Network
Machinery &
Equipment
Vehicles
Buildings &
Facilities
Road Network
Service Life Expired
0 - 5 Years Remaining
6 - 10 Years Remaining
Over 10 Years Remaining
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The analysis shows that based on current risk models, approximately 51% of the Town
with a current replacement cost of approximately $41.0 million, carry a risk rating of 15 or
higher (red) out of 25. Assets in this group may have a high probability of failure based on
available condition data and age-based estimates and were considered to be most essential to
the Town.
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.
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 were determined to be low based on the attributes used and
the data available.
Similarly, assets with very high condition ratings can receive a moderate to high-risk rating
despite a low probability of failure. These assets may be deemed as highly critical to the Town
based on their costs, economic importance, social significance, and other factors. Continued
3.2.6
Forecasted Capital Requirements
Aging assets require maintenance, rehabilitation, and replacement. Figure 17 below illustrates
the cyclical short-, medium- and long-term infrastructure replacement requirements for all asset
categories analyzed in this AMP over a 50-year time horizon. On average, $2.9 million is
required each year to remain current with capital replacement needs for the Town
portfolio (red dotted line). Although actual spending may fluctuate substantially from year to
year, this figure is a useful benchmark for annual capital expenditure targets (or allocations to
reserves) to ensure projects are not deferred and replacement needs are met as they arise. This
figure relies on age and available condition data.
The chart also illustrates a backlog of $22.1 million, comprised of assets that remain in service
beyond their estimated useful life. It is unlikely that all such assets are in a state of disrepair,
requiring immediate replacements. This makes continued and expanded targeted and consistent
condition assessments integral. Risk frameworks, proactive lifecycle strategies, and levels of
service targets can then be used to prioritize projects, continuously refine estimates for both
backlogs and ongoing capital needs, and help select the right treatment for each asset. In
addition, more effective componentization of buildings will improve these projections, including
backlog estimates.
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Figure 17 Capital Replacement Needs: Portfolio Overview 2025-2074
$2.9m
$22.1m
$5.7m
$9.2m
$4.0m
$8.9m
$35.8m
$25.9m
$5.5m
$9.6m
$26.4m
$6.4m
$0
$5m
$10m
$15m
$20m
$25m
$30m
$35m
$40m
Road Network
Buildings & Facilities
Vehicles
Machinery & Equipment
Wastewater Network
Water Network
Annual Requirement
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Proposed Levels of Service
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4.
Proposed Levels of Service Analysis
4.1 Overview
4.1.1
O. Reg. 588/17 Proposed Levels of Service Requirements
The third iteration of municipal Asset Management Plans required under O. Reg. 588/17 requires
the evaluation of levels of service (LOS) that includes:
Proposed LOS options (i.e. increase, decrease, or maintain current LOS) and the risks
associated with these options.
How the proposed LOS may differ from current LOS.
Whether the proposed LOS are achievable; and
Additionally, a lifecycle management and financial strategy to support the proposed LOS must be
identified for a period of 10 years with specific reporting on:
Identification of lifecycle activities needed to provide the proposed LOS.
Annual costs over the next 10 years to achieve the proposed LOS; and
Identification of proposed funding projected to be available.
4.1.2
Considerations
Proposed LOS for the Town have been developed through comprehensive engagement with
Town staff. In order to achieve any target LOS goal, careful consideration of the following should
be given to the following:
Financial Impact Assessments
Assess historical expenditures/budget patterns to gauge feasibility of increasing budgets
to achieve increased service levels
Consider implications of LOS adjustments on other services and other infrastructure
programs (i.e. trade-offs)
Infrastructure Condition Assessments
Regularly assess the condition of critical infrastructure components
Use standardized condition assessment protocols (where possible) to quantify the state of
the infrastructure
Identify non-critical components where maintenance could potentially be deferred without
causing severe degradation
Use current condition metrics as benchmarks to gauge feasibility of large adjustments to
LOS
Service Metrics
Measure user satisfaction, response times, and other relevant indicators for specific
services
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Service Impact Assessments
Evaluate potential impacts on user satisfaction and service delivery due to changes in
infrastructure condition
Key Lifecycle Activities
Implement routine maintenance and inspections to ensure infrastructure reaches its
optimal useful life
Monitor and optimize operational processes for efficiency
Regularly review and update preventive maintenance schedules
Prioritize critical infrastructure components for maintenance
Implement cost-saving measures without compromising safety or compliance
Develop strategies for managing and communicating service impacts to stakeholders
Invest in technology and process improvements to enhance maintenance efficiency
Upgrade critical infrastructure components to improve overall reliability
Explore opportunities for innovation and efficiency gains
Risk Management
Identify potential risks to infrastructure and service quality resulting from adjusted service
levels
Develop contingency plans to address unforeseen challenges without compromising
service quality
Monitor performance closely to ensure that the target investment translates to the desired
infrastructure condition
Infrastructure Condition Enhancements
Identify areas for improvement and increased maintenance to enhance overall
infrastructure condition
Timelines
Although O. Reg. 588/17 requires evaluation of expenditures for a 10-year period in
pursuit of proposed LOS, it does not require municipalities to achieve the LOS within this
10-year timeframe (ex. a municipality may have a goal to reach X% condition by 2050,
the AMP is required to review the first 10 years of the strategy to reach this goal)
Careful consideration should be given to setting realistic targets for when proposed
service levels can be achieved.
Stakeholder Engagement
It is recommended to ensure adjustments to LOS are not made in isolation and without
consultation of various stakeholders. This could include, but is not limited to:
Department Heads/Infrastructure Managers
Residents
Service Users
Council
Efforts should be made to communicate changes to LOS transparently to all affected
stakeholders
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Flexibility
Priorities may change over time due to a variety of factors, such as:
Financial state of the municipality
Availability of grants
Significant increases or decreases in population
Changes in political priorities
Changes in resident priorities
New technologies
Changes in legislation
Any proposed changes to LOS should be flexible and able to adapt to changes listed
above, and other unforeseen circumstances
4.2 Proposed Levels of Service Scenarios
The three scenarios outlined in the following section were analyzed as options for proposed
service levels for all categories included in this Asset Management Plan.
While all three scenarios were reviewed, the Town of Laurentian Hills selected
Scenario 1 as their preferred path forward regarding proposed levels of
service, which is reflected in the financial strategy and 10-year capital replacement
forecasts.
4.2.1
Scenario 1: Maintain Current Investment (Preferred Scenario)
This scenario utilizes the current capital reinvestment within each asset category. The current
annual investment was held, and the projected condition and risk was determined. This scenario
assumes no tax or rate increases.
Lifecycle Changes Required for Scenario 1
For all asset categories, no changes to lifecycle strategies are required in order to achieve
Scenario 1. For the Town
refer to
the lifecycle management approach section for each asset category
In future iterations of the AMP, it is recommended to more closely analyze changes to lifecycle
management strategies to find long-term cost savings and efficiencies.
Affordability/Achievability of Scenario 1
Of the three scenarios analyzed, Scenario 1 is the least expensive option as maintaining existing
funding levels would require no tax or rate increases. The available capital funding over the next
10 years would remain consistent as indicated in the table below:
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Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-Funded
$515k
$515k
$515k
$515k
$515k
$515k
$515k
$515k
$515k
$515k
Rate-Funded
(Water)
$73k
$73k
$73k
$73k
$73k
$73k
$73k
$73k
$73k
$73k
Rate-Funded
(Waste-
water)
$78k
$78k
$78k
$78k
$78k
$78k
$78k
$78k
$78k
$78k
Total
$666k
$666k
$666k
$666k
$666k
$666k
$666k
$666k
$666k
$666k
Table 7 Scenario 1 Available Capital Funding Over Next 10 Years
As the Town of Laurentian Hills selected Scenario 1 as their preferred proposed level of service,
a further breakdown of projected capital expenditures by asset category can be found in
Appendix B
10-Year Capital Requirements.
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Changes to Community and Technical Levels of Service for Scenario 1
The Town of Laurentian Hills does not anticipate any changes to qualitative community levels of
services for any of the asset categories included within this AMP. All asset categories will see
adjustments to their technical levels of service over time, particularly relating to capital
reinvestment rate and average condition of assets. Refer to each asset category for more
details.
Risks Associated with Scenario 1
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 1, the following risks have been identified:
Increased infrastructure backlog
While modeling scenarios without financial increases may appear favorable for the
short-term financial well-being of residents and businesses, proceeding with
insufficient infrastructure funding compels the Municipality to adopt sub-optimal
lifecycle management practices. The inability to implement timely and strategic
interventions and asset replacements may lead to increased asset failures, reduced
service reliability, a rise in resident complaints, and a greater likelihood of costly,
unplanned repairs to sustain service levels.
Reliance on Grants
Scenario 1 maintains funding at approximately 43% of the recommended levels,
increasing the Municipality's reliance on conditional grants as they become
available. While such grants help alleviate the tax and rate burden on residents,
they are not a sustainable or guaranteed source of revenue. As a result, the
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Asset Management Plan 2025
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Municipality remains vulnerable to changes in provincial and federal policies and
funding programs.
Missed opportunities for efficiencies
While analyzing Scenario 1, no alternative lifecycle strategies were proposed. Mid-
lifecycle interventions, such as asphalt overlays and sewer lining, can result in
extended lifespans of assets and reduced costs over the lifetime of the assets. By
relying on existing lifecycle strategies, the Municipality risks paying more than
necessary to maintain their asset inventory.
Appropriateness of Scenario 1 to Meet the Town
Town staff recommended maintaining the current level of infrastructure investment as outlined
in Scenario 1, until further direction is received from Council. While full funding remains the ideal
long-term objective, achieving it would require substantial increases in annual investment, which
may not be financially feasible for residents in the short term. Town staff recognize the need for
increased investment, however, they also recognize the need to balance affordability and service
delivery.
4.2.2
Scenario 2: Achieving 100% Funding
This scenario assumes gradual tax and rate increases, stabilizing at 100% of recommended
funding in 10 years for tax funded assets and 20 years for rate funded assets.
Annual Tax Increase ~1.9%
Annual Water Rate Increase ~6.5%
Annual Wastewater Rate Increase ~6.7%
While this scenario was modelled for consideration, the Town did not elect to move forward with
this scenario.
Lifecycle Changes Required for Scenario 2
For all asset categories, no changes to lifecycle strategies are required in order to achieve
Scenario 2. In future iterations of the AMP, it is recommended to more closely analyze changes
to lifecycle management strategies to find long-term cost savings and efficiencies.
Affordability/Achievability of Scenario 2
Of the three scenarios analyzed, Scenario 2 is the most expensive option. Reaching full funding
immediately would require an increase of 19.5% in tax revenue. This is not reasonable or
realistic to achieve in a short period of time. With the recommended implementation timeframe
of 10 years for tax funded assets, tax revenue would be increased gradually from $3.6 million to
$4.2 million. For rate funding assets, over a 20 year recommended period, water revenue would
increase from $309 thousand to $648 thousand, and wastewater revenue from $291 thousand to
$636 thousand. Based on these gradual proposed increases, while maintaining existing
sustainable grant funding, the available capital funding over the next 10 years for Scenario 1 is
indicated in the table below:
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Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-Funded
$588k
$660k
$727k
$795k
$864k
$934k
$1.0m
$1.1m
$1.2m
$1.2m
Rate-Funded
(Water)
$93k
$115k
$137k
$162k
$187k
$215k
$244k
$275k
$309k
$344k
Rate-Funded
(Waste-
water)
$98k
$118k
$141k
$164k
$189k
$216k
$245k
$276k
$309k
$344k
Total
$778k
$893k
$1.0m
$1.1m
$1.2m
$1.4m
$1.5m
$1.6m
$1.8m
$1.9m
Table 8 Scenario 2 Available Capital Funding Over Next 10 Years
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Changes to Community and Technical Levels of Service for Scenario 2
The Town of Laurentian Hills does not anticipate any changes to qualitative community levels of
services for any of the asset categories included within this AMP. All asset categories will see
adjustments to their technical levels of service over time, particularly relating to capital
reinvestment rate and average condition of assets. Refer to each asset category for more
details.
Risks Associated with Scenario 2
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 2, the following risks have been identified:
Increased infrastructure backlog
While mitigating the impact of financial increases on residents and businesses,
taking 10 years for tax funded assets and 20 years for rate funded, to reach the
targeted funding levels means years of sub-optimal lifecycle management of assets.
Being unable to complete strategic lifecycle interventions and replacements may
result in increased asset failures, reduced reliability, and the potential for costly
unbudgeted repairs to maintain services.
Financial Impact
While reaching a full funding scenario supports long-term asset sustainability and
reduces infrastructure risk, it can also introduce short- and medium-term
challenges. The primary risk lies in the financial impact on residents and
businesses, as rapidly increasing tax rates, utility fees, or other revenue sources to
close the funding gap may cause affordability concerns.
Missed opportunities for efficiencies
While analyzing Scenario 2, no alternative lifecycle strategies were proposed. This
creates a potential risk of overcommitting financial resources without the
administrative or operational capacity to effectively deliver infrastructure projects.
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Accelerated funding, if not guided by a clear understanding of asset lifecycle events
implement capital works efficiently. Without a strategic approach that identifies the
right interventions at the right time
such as maintenance, renewal, and
replacement
funding may be used inefficiently, leading to delays, cost overruns, or
underutilized budgets.
4.2.3
Scenario 3: Achieving 75% Funding
This scenario assumes gradual tax and rate increases, stabilizing at 75% of recommended
funding in 10 years for tax funded assets and 20 years for rate funded assets.
Annual Tax Increase ~1.1%
Annual Water Rate Increase ~5.4%
Annual Wastewater Rate Increase ~5.5%
While this scenario was modelled for consideration, the Town did not elect to move forward with
this scenario.
Lifecycle Changes Required for Scenario 3
For all asset categories, no changes to lifecycle strategies are required in order to achieve
Scenario 3. In future iterations of the AMP, it is recommended to more closely analyze changes
to lifecycle management strategies to find long-term cost savings and efficiencies.
Affordability/Achievability of Scenario 3
Of the three scenarios analyzed, Scenario 3 represents a potential compromise between
maintaining the current investment level and achieving 100% funding. Achieving 75% full
funding would require an 11.0% increase in tax revenue if implemented immediately. However,
under the recommended 10-year phased approach for tax funded assets, tax revenue would
gradually increase from $3.6 million to $3.9 million.
For rate funded assets, water revenue would gradually increase from $309 thousand to $884
thousand and wastewater revenue from $291 thousand to $849 thousand.
This scenario provides a practical path forward
improving funding levels significantly without
the greater financial impact of full funding. With these gradual increases and continued reliance
on sustainable grant funding, the total projected capital funding that would be available over the
next 10 years for Scenario 3 is summarized in the table below:
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Categories
Available Capital Funding
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Tax-Funded
$556k
$595k
$628k
$661k
$69k
$728k
$762k
$796k
$830k
$881k
Rate-Funded
(Water)
$90k
$107k
$126k
$145k
$166k
$188k
$211k
$235k
$260k
$287k
Rate-Funded
(Waste-
water)
$94k
$111k
$129k
$148k
$167k
$188k
$210k
$234k
$258k
$284k
Total
$739k
$814k
$883k
$954k
$403k
$1.1m
$1.2m
$1.3m
$1.3m
$1.5m
Table 9 Scenario 3 Available Capital Funding Over Next 10 Years
It is important to note that an AMP is a dynamic document which should be reviewed regularly to
ensure up-to-date information is incorporated including accurate replacement costs, changes in
inventory, changes in available funding sources, and reflection on progress made on previous
recommendations.
Changes to Community and Technical Levels of Service for Scenario 3
The Town of Laurentian Hills does not anticipate any changes to qualitative community levels of
services for any of the asset categories included within this AMP. All asset categories will see
adjustments to their technical levels of service over time, particularly relating to capital
reinvestment rate and average condition of assets. Refer to each asset category for more
details.
Risks Associated with Scenario 3
There are pros and cons associated with each scenario analyzed, and each benefit is counter-
balanced with consequences. For Scenario 3, the following risks have been identified:
Increased infrastructure backlog
Although the gradual 10-year approach helps ease the financial burden on residents
and businesses, it also extends the period of sub-optimal lifecycle management.
Delays in strategic interventions and asset replacements may lead to increased
asset failures, reduced reliability, and costly unplanned repairs.
In addition to the risks of reaching the desired funding levels gradually, Scenario 3
portfolio, there is an increased risk of services being impacted by deteriorating
asset conditions.
Impact of Intentional Underfunding
By targeting only 75% of the recommended funding levels, Scenario 3 inherently
accepts some level of underfunding. This increases the risk that deteriorating asset
conditions will negatively affect service delivery over time.
Reliance on Conditional Grants
With partial funding, the Municipality becomes more dependent on conditional
grants to bridge the gap. While grants help alleviate tax and rate pressures, they
are inherently unpredictable and considered an unsustainable revenue source. This
reliance exposes the Municipality to vulnerabilities stemming from changes in
provincial and federal policies or funding programs.
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Missed opportunities for Cost Efficiencies
While analyzing Scenario 3, no alternative lifecycle strategies were proposed. Mid-
lifecycle interventions, such as asphalt overlays and sewer lining, can result in
extended lifespans of assets and reduced costs over the lifetime of the assets. By
relying on existing lifecycle strategies, the Town risks paying more than necessary
to maintain their asset inventory.
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Category Analysis: Core Assets
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5.
Road Network
The Town
road network forms an important component of its overall infrastructure portfolio,
with a present replacement cost valued at $7.0 million. The road network consists of paved
roads, culverts, a pedestrian bridge and supporting infrastructure such as streetlighting
contributing to community safety and accessibility.
5.1 Inventory & Valuation
Table 10 summarizes the quantity and current replacement cost of the Town
road
network assets as managed in its primary asset management register, Citywide.
Segment
Quantity
Unit of
Measure
Replacement
Cost
Primary RC
Method
Culverts
40
Assets
$504,068
CPI
Paved Surface
(HCB)
21
Length (km)
$3,374,275
Cost per Unit
Paved Surface
(LCB)
26
Length (km)
$2,434,950
Cost per Unit
Pedestrian Bridges
1
Quantity
$32,881
CPI
Streetlighting
490
Quantity
$685,470
CPI
TOTAL
$7,031,644
Table 10 Detailed Asset Inventory: Road Network
Figure 18 Portfolio Valuation: Road Network
$33k
$504k
$685k
$2.4m
$3.4m
$1m
$2m
$3m
$4m
Pedestrian
Bridges
Culverts
Streetlighting
Paved Surface
(LCB)
Paved Surface
(HCB)
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5.2 Asset Condition
Figure 19 summarizes the replacement cost-weighted condition of the Town
road network.
Based on a combination of field inspection data and age, 38% of assets are in fair or better
condition; the remaining 62% of assets are in poor to very poor condition. Condition
assessments were available for 81% of road assets, 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 19, the
majority of the Town
road network assets are in poor or worse condition.
Figure 19 Asset Condition: Road Network Overall
As illustrated in Figure 20, based on condition assessments, the majority of the Town
pedestrian bridges and culverts are in fair or better condition; however, 93% of paved roads
(LCB) are in poor or worse condition.
Figure 20 Asset Condition: Road Network by Segment
Very Poor,
$882,000
(13%)
Poor,
$3,508,000
(50%)
Fair,
$2,007,000
(29%)
Good,
$540,000 (8%)
Very Good,
$96,000 (1%)
$33k
$63k
$164k
$251k
$124k
$173k
$1.7m
$155k
$2.2m
$1.3m
$10k
$521k
$101k
$107k
$152k
0%
20%
40%
60%
80%
100%
Streetlighting
Pedestrian Bridges
Paved Surface (LCB)
Paved Surface
(HCB)
Culverts
Very Good
Good
Fair
Poor
Very Poor
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5.3 Age Profile
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.
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 21 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 21 Estimated Useful Life vs. Asset Age: Road Network
Age analysis shows that the majority of paved roads have exceeded their expected useful life.
Pedestrian bridges and culverts are operating within their expected useful life.
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.
15.8
20.7
36.3
6
25.2
25
20
15
50
25
0
10
20
30
40
50
60
Culverts
Paved Surface
(HCB)
Paved Surface
(LCB)
Pedestrian
Bridges
Streetlighting
Weighted Average Age
Weighted Average EUL
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5.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. This process is affected
history and environment.
The following lifecycle strategies have been developed as a proactive approach to managing the
lifecycle of HCB and LCB roads. Instead of allowing the roads to deteriorate until replacement is
required, strategic rehabilitation is expected to extend the service life of roads at a lower total
cost.
Paved Roads (HCB)
Event Name
Event Class
Event Trigger
Mill & Pave- Spot treatment
Rehabilitation
Repeated every 5 years
Pulverize and Pave
Rehabilitation
At condition of 2.0
Full Reconstruction
Replacement
At condition of 0.0
Table 11 Lifecycle Management Strategy: Road Network (HCB Roads)
Paved Roads (LCB)
Event Name
Event Class
Event Trigger
Single Surface Treatment
Rehabilitation
At condition of 2.0
Full Reconstruction
Replacement
At condition of 0.0
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Table 12 Lifecycle Management Strategy: Road Network (LCB Roads)
The following table outlines the Town
Activity
Type
Description of Current Strategy
Maintenance
Maintenance activities for roads include winter maintenance such as snow
removal and salt/sand for ice removal as needed. Gravel roads are graded and
new gravel is added as needed. Most gravel roads are treated with calcium
chloride on an annual basis. Road culverts and the pedestrian bridge are
cleaned as needed.
Replacement
Replacement activities are prioritized based on asset condition and health and
safety risks.
Inspection
Culverts, road appurtenances, and the pedestrian bridge are visually inspected
on an ad-hoc basis. Deficiencies are noted to inform rehabilitation and
replacement activities.
Table 13 Lifecycle Management Strategy: Road Network
5.5 Forecasted Long-Term Replacement Needs
Figure 13 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Town
road network. This analysis was run until 2069 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Town
The Town
requirements (red dotted line) total $341 thousand for all assets in the road network. Although
actual spending may fluctuate substantially from year to year, this figure is a useful benchmark
value for annual capital expenditure targets (or allocations to reserves) to ensure projects are
not deferred and replacement needs are met as they arise.
The chart illustrates substantial capital needs through the forecast period. It also shows a
backlog $767 thousand, dominated by streetlighting. However, as streetlights are pooled and no
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Asset Management Plan 2025
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condition data was available, this estimate may not be accurate. These projections are based on
asset replacement costs, age analysis, and condition data when available, as well as lifecycle
modeling (paved roads only). They are designed to provide a long-term, portfolio-level overview
of capital needs and should be used to support improved financial planning over several
decades.
Figure 22 Forecasted Capital Replacement Needs: Road Network 2025-2069
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. Regular pavement condition assessments and a robust risk framework will
ensure that high-criticality assets receive proper and timely lifecycle intervention, including
replacements.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
5.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, drainage and replacement costs. The risk ratings for assets without useful attribute
data were calculated using only condition, service life remaining, and their replacement costs.
$341k
$767k
$3.1m
$703k
$1.9m
$851k
$1.4m
$3.5m
$814k
$1.7m
$1.5m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
$3.0m
$3.5m
$4.0m
Backlog 2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
Culverts
Paved Surface (HCB)
Paved Surface (LCB)
Pedestrian Bridges
Streetlighting
Annual Requirement
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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 Town 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 Town
wide
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$384,422
$1,173,188
$998,953
$2,643,916
$1,831,165
(5%)
(17%)
(14%)
(38%)
(26%)
Figure 23 Risk Matrix: Road Network
5.7 Levels of Service
The tables that follow summarize the Town
KPIs under Ontario Regulation 588/17, as well as any additional performance measures that the
Town selected for this AMP.
5.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include maps of
the road network in the municipality
and its level of connectivity
See Appendix C
Level of Service
Maps & Photos
Quality
Description or images that illustrate the
different levels of road class pavement
condition
The pavement conditions are described
as follows:
Very Poor: Widespread signs of
deterioration. Requires remedial work
to bring road up to standard. Service is
affected
Poor: Large portions of road exhibiting
deterioration with rutting, potholes,
distortions, longitude and lateral
cracking. Road is mostly below
standard.
Fair: Some sections of road starting to
deteriorate. Requires some remedial
work and surface upgrade in near
future.
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Good: Road is in overall good
condition. Few sections are starting to
show signs of minimal deterioration.
Very Good: Road is well maintained
and in excellent condition. Surface was
newly or recently upgraded. No signs
of deterioration or remedial work
required.
Table 14 O. Reg. 588/17 Community Levels of Service: Road Network
5.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS (2024)
Scope
Lane-km of arterial roads (MMS classes 1 and 2) per
land area (km/km2)
0 km/ 634 km2
Lane-km of collector roads (MMS classes 3 and 4) per
land area (km/km2)
0 km/ 634 km2
Lane-km of local roads (MMS classes 5 and 6) per land
area (km/km2)
0.27 km/ 634 km2
Quality
Average pavement condition index for paved roads in
the Town
HCB Roads: 53%
LCB Roads: 22%
Average condition of unpaved roads in the Town
Fair to good condition
Performance
Capital reinvestment rate
2.29%
Table 15 O. Reg. 588/17 Technical Levels of Service: Road Network
5.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for the road network. Further PLOS analysis at the portfolio level can be found in Section 4.
Proposed Levels of Service Analysis.
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5.8.1
PLOS Scenarios Analyzed and Results
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$7,032,000
32%
12.1
$161,000
Scenario 2
(100% Funded)
$7,032,000
52%
10.1
$341,000
Scenario 3
(75% Funded)
$7,032,000
46%
10.8
$255,750
Table 16 Road Network PLOS Scenarios: Analysis Result
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6.
Water Network
The Town
water network is operated and maintained by Veolia Water Canada Inc. The network
consists of 12 km of water mains, a water treatment plant and pump stations.
6.1 Inventory & Valuation
Table 18 summarizes the quantity and current replacement cost of the Town
water
network assets as managed in its primary asset management register, Citywide Assets.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Equipment
3
Quantity
$970,139
CPI
Pumping Stations
2
Quantity
$772,512
CPI
Water Mains
12
Kilometers
$7,740,000
Cost per Unit
Water Tower
1
Quantity
$1,340,461
CPI
Water Treatment
Plant
8
Quantity
$13,398,678
CPI
TOTAL
$24,221,790
Table 18 Detailed Asset Inventory: Water Network
Figure 26 Portfolio Valuation: Water Network
$773k
$970k
$1.3m
$7.7m
$13.4m
$5m
$10m
$15m
Pumping Stations
Equipment
Water Tower
Water Mains
Water Treatment
Plant
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6.2 Asset Condition
Figure 27 summarizes the replacement cost-weighted condition of the Town
water network.
Based on a combination of field inspection data and age, 44% of assets are in fair or better
condition; the remaining 56% of assets are in poor to very poor condition. Condition
assessments were available for 100% of water mains. This condition data was projected from
inspection date to current year to estimate their condition today. No condition data was available
for the other water assets.
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 27, the
majority of the Town
water network assets are in fair or better condition.
Figure 27 Asset Condition: Water Network Overall
As illustrated in Figure 28, based on condition assessments and age-based conditions, the
Town
are in fair condition; however, except for equipment, the remaining assets
are in poor or worse condition.
Very Poor,
$12,220,000
(50%)
Poor,
$1,340,000
(6%)
Fair, $9,989,000
(41%)
Very Good,
$673,000
(3%)
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Figure 28 Asset Condition: Water Network by Segment
6.3 Age Profile
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.
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 29 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.
$673k
$2.1m
$7.7m
$129k
$41k
$1.3m
$11.3m
$644k
$257k
0%
20%
40%
60%
80%
100%
Water Treatment
Plant
Water Tower
Water Mains
Pumping Stations
Equipment
Very Good
Good
Fair
Poor
Very Poor
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Figure 29 Estimated Useful Life vs. Asset Age: Water Network
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 Town
Activity Type
Description of Current Strategy
Maintenance
Main flushing and valve turning exercises are completed on the network on
an annual or biannual basis using in-house resources.
Periodic pressure testing is conducted to identify deficiencies and potential
leaks.
Inspection
Staff primarily rely on the age, material, pipe size, and breaks per segment
of water mains to determine the projected condition of water mains.
Fire hydrants are assessed in accordance with NFPA guidelines.
The water treatment plant, water tower, and pumping stations are
inspected by Veolia staff on a regular basis and includes a comprehensive
annual assessment.
Rehabilitation
Trenchless re-lining of water mains presents significant challenges and is
not always a viable option.
Replacement
In the absence of mid-lifecycle rehabilitative events, most mains are simply
maintained with the goal of full replacement once it reaches its end-of-life.
5.5
40
10
41
35.1
17.3
30
50
60
30.5
0
10
20
30
40
50
60
70
Equipment
Pumping
Stations
Water Mains
Water Tower
Water
Treatment
Plant
Weighted Average Age
Weighted Average EUL
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Activity Type
Description of Current Strategy
Replacement activities are identified based on an analysis of the main
break rate as well as any issues identified during regular maintenance
activities.
Table 19 Lifecycle Management Strategy: Water Network
6.5 Forecasted Long-Term Replacement Needs
Figure 30 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Town
water network. This analysis was run until 2069 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Town
Town
requirements (red dotted line) total $844 thousand for all assets in the water network. Although
actual spending may fluctuate substantially from year to year, this figure is a useful benchmark
value for annual capital expenditure targets (or allocations to reserves) to ensure projects are
not deferred and replacement needs are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period. It also shows a
backlog $11.3 million, dominated by the water treatment plant. These projections are based on
asset replacement costs, age analysis, and condition data when available. They are designed to
provide a long-term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
Figure 30 Forecasted Capital Replacement Needs: Water Network 2025-2069
$844k
$11.3m
$12k
$938k
$500k
$2.0m
$11.3m
$7.7m
$500k
$2.5m
$11.4m
$0
$2m
$4m
$6m
$8m
$10m
$12m
Backlog 2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
2055 -
2059
2060 -
2064
2065 -
2069
Equipment
Pumping Stations
Water Mains
Water Tower
Water Treatment Plant
Annual Requirement
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Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. Regular condition assessments and a robust risk framework will ensure that
high-criticality assets receive proper and timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
6.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, traffic data, 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 Town 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 Town
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
-
$725,139
$128,752
$7,942,586
$15,425,313
(0%)
(3%)
(<1%)
(33%)
(64%)
Figure 31 Risk Matrix: Water Network
6.7 Levels of Service
The tables that follow summarize the Town
KPIs under Ontario Regulation 588/17 as well as any additional performance measures that the
Town has selected for this AMP.
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6.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include maps,
of the user groups or areas of the
municipality that are connected to the
municipal water system
All water users are located in the
Village of Chalk River. However, not all
properties located in Chalk River are
connected to the network. See
Appendix C for a map of Chalk River.
Description, which may include maps,
of the user groups or areas of the
municipality that have fire flow
Access to fire flow is limited to the
Village of Chalk River. However, not all
properties located in Chalk River are
connected to the network. See
Appendix C for a map of Chalk River.
Reliability
Description of boil water advisories and
service interruptions
The Town has not experienced any
service interruptions in 2024. The
Town follows Ontario's Drinking Water
Quality Management Standard
(DWQMS). The Town delivers boil
water advisories to affected
households.
Table 20 O. Reg. 588/17 Community Levels of Service: Water Network
6.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of properties connected to the municipal water system
24.1%
% of properties where fire flow is available
24.1%
Reliability
# of connection-days per year where a boil water advisory
notice is in place compared to the total number of
properties connected to the municipal water system
0
# of connection-days per year where water is not available
due to water main breaks compared to the total number of
properties connected to the municipal water system
0
Performance
Capital reinvestment rate
0.32%
Table 21 O. Reg. 588/17 Technical Levels of Service: Water Network
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6.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The tables and graphs below explain the proposed levels of service scenarios that were analyzed
for the water network. Further PLOS analysis at the portfolio level can be found in section 4.
Proposed Levels of Service Analysis.
6.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$24,222,000
8%
23.4
$73,000
Scenario 2
(100% Funded)
$24,222,000
36%
17.5
$844,000
Scenario 3
(75% Funded)
$24,222,000
27%
19.4
$633,000
Table 22 Water Network PLOS Scenario Analysis Result
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7.
Wastewater Network
The sanitary services provided by the Town are managed and operated by Veolia and municipal
staff. Veolia manages the sewage treatment plant and pumping station, and municipal staff are
responsible for 12 km of sewer mains.
7.1 Inventory & Valuation
Table 24 summarizes the quantity and current replacement cost of the Town
wastewater network assets as managed in its primary asset management register, Citywide
Assets.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Pumping Stations
5
Quantity
$515,425
CPI
Sewage Treatment
Plant
11
Quantity
$19,245,137
User-Defined
Sewer Mains
12
Kilometers
$7,800,000
Cost per Unit
TOTAL
$27,560,562
Table 24 Detailed Asset Inventory: Wastewater Network
Figure 34 Portfolio Valuation: Wastewater Network
$515k
$7.8m
$19.2m
$5m
$10m
$15m
$20m
Pumping Stations
Sewer Mains
Sewage Treatment
Plant
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7.2 Asset Condition
Figure 35 summarizes the replacement cost-weighted condition of the Town
wastewater
network. Based on a combination of field inspection data and age, 35% of assets are in fair or
better condition; the remaining 65% of assets are in poor to very poor condition. Condition
assessments were available for 100% of sanitary mains. This condition data was projected from
inspection date to current year to estimate their condition today. No condition data was available
for pumping stations and sewage treatment plant.
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 35 the
majority of the Town
wastewater network assets are in poor or worse condition.
Figure 35 Asset Condition: Wastewater Network Overall
Very Poor,
$9,868,000
(36%)
Poor,
$8,085,000
(29%)
Fair,
$9,311,000
(34%)
Very Good,
$297,000 (1%)
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As illustrated in Figure 36, based on condition assessments and age-based conditions, the
Town
fair condition however, 91% of Sewage treatment plant are
in poor or worse condition.
Figure 36 Asset Condition: Wastewater Network by Segment
7.3 Age Profile
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.
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 37 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.
$7.8m
$1.5m
$8.1m
$16k
$9.4m
$499k
0%
20%
40%
60%
80%
100%
Sewer Mains
Sewage
Treatment Plant
Pumping Stations
Very Good
Good
Fair
Poor
Very Poor
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Figure 37 Estimated Useful Life vs. Asset Age: Wastewater Network
7.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
The following table outlines the Town
Activity Type
Description of Current Strategy
Maintenance
Main flushing is completed on 100% of the wastewater network annually
using in-house resources.
Periodic pressure testing may be employed to identify deficiencies and
potential leaks.
Inspection
CCTV inspections are completed for wastewater mains on a regular cycle
(100% of the network is inspected every 3 years). The Town receives video
footage, but the consultant does not provide a detailed report with
condition ratings.
The wastewater treatment plant and pumping stations are inspected by
Veolia staff on a regular basis which includes a comprehensive annual
assessment.
Rehabilitation
Trenchless re-lining of wastewater mains is considered for viable pipe
candidates as budget and resources allow.
Replacement
In the absence of mid-lifecycle rehabilitative events, most assets are
simply maintained with the goal of full replacement once they reach their
end-of-life.
Table 25 Lifecycle Management Strategy: Wastewater Network
40
48.9
10
22.5
45.7
50
0
10
20
30
40
50
60
Pumping Stations
Sewage Treatment Plant
Sewer Mains
Weighted Average Age
Weighted Average EUL
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7.5 Forecasted Long-Term Replacement Needs
Figure 38 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and
replacement requirements for the Town
wastewater network. This analysis was run until 2054
to capture at least one iteration of replacement for the longest-lived asset in Citywide Assets,
the Town
Town
requirements (red dotted line) total $842 thousand for all assets in the sanitary sewer network.
Although actual spending may fluctuate substantially from year to year, this figure is a useful
benchmark value for annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
The chart illustrates substantial capital needs throughout the forecast period. It also shows a
backlog of $9.3 million primarily for sanitary treatment plant. These projections are based on
asset replacement costs, age analysis, and condition data when available. They are designed to
provide a long-term, portfolio-level overview of capital needs and should be used to support
improved financial planning over several decades.
Figure 38 Forecasted Capital Replacement Needs: Wastewater Network 2025-2054
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. Regular condition assessments and a robust risk framework will ensure that
high-criticality assets receive proper and timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
$842k
$9.3m
$551k
$1.5m
$337k
$297k
$17.4m
$9.3m
$0
$2m
$4m
$6m
$8m
$10m
$12m
$14m
$16m
$18m
$20m
Backlog
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
Pumping Stations
Sewage Treatment Plant
Sewer Mains
Annual Requirement
Laurentian Hills
Asset Management Plan 2025
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7.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, traffic data, 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 Town 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 Town
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$312,849
$16,511
-
$8,095,095
$19,136,108
(1%)
(<1%)
(0%)
(29%)
(69%)
Figure 39 Risk Matrix: Wastewater Network
7.7 Levels of Service
The tables that follow summarize the Town
KPIs under Ontario Regulation 588/17 as well as any additional performance measures that the
Town has selected for this AMP.
7.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include
maps, of the user groups or areas of
the municipality that are connected
to the municipal wastewater system
All wastewater users are located in the
Village of Chalk River. However, not all
properties located in Chalk River are
connected to the network. See Appendix C
for a map of Chalk River.
Reliability
Description of how combined sewers
in the municipal wastewater system
are designed with overflow
structures in place which allow
The Town does not own any combined
sewers
Laurentian Hills
Asset Management Plan 2025
66
Service
Attribute
Qualitative Description
Current LOS (2024)
overflow during storm events to
prevent backups into homes
Description of the frequency and
volume of overflows in combined
sewers in the municipal wastewater
system that occur in habitable areas
or beaches
The Town does not own any combined
sewers
Description of how stormwater can
get into sanitary sewers in the
municipal wastewater system,
causing sewage to overflow into
streets or backup into homes
Stormwater can enter into wastewater
sewers due to cracks in wastewater mains
or through indirect connections (e.g.
weeping tiles). In the case of heavy
rainfall events, wastewater sewers may
experience a volume of water and sewage
that exceeds its designed capacity. In
some cases, this can cause water and/or
sewage to overflow backup into homes.
the disconnection of weeping tiles from
wastewater mains and the use of sump
pumps and pits directing storm water to
the storm drain system can help to reduce
the chance of this occurring.
Description of how sanitary sewers
in the municipal wastewater system
are designed to be resilient to
stormwater infiltration
The Town follows a series of design
standards that integrate servicing
requirements and land use considerations
when constructing or replacing
wastewater sewers. These standards have
been determined with consideration of the
minimization of sewage overflows and
backups.
Description of the effluent that is
discharged from sewage treatment
plants in the municipal wastewater
system
Effluent refers to water pollution that is
discharged from a wastewater treatment
plant, and may include suspended solids,
total phosphorous and biological oxygen
demand. The Environmental Compliance
Approval (ECA) identifies the effluent
criteria for municipal wastewater
treatment plants.
Table 26 O. Reg. 588/17 Community Levels of Service: Wastewater Network
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7.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Scope
% of properties connected to the municipal wastewater
system
22.4%
Reliability
# of events per year where combined sewer flow in the
municipal wastewater system exceeds system capacity
compared to the total number of properties connected to the
municipal wastewater system
0
# of connection-days per year having wastewater backups
compared to the total number of properties connected to the
municipal wastewater system
0
# of effluent violations per year due to wastewater discharge
compared to the total number of properties connected to the
municipal wastewater system
0
Performance
Capital reinvestment rate
0.27%
Table 27 O. Reg. 588/17 Technical Levels of Service: Wastewater Network
7.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The below tables and graphs explain the proposed levels of service scenarios that were analyzed
for the wastewater network. Further PLOS analysis at the portfolio level can be found in Section
4. Proposed Levels of Service Analysis.
7.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$27,561,000
7%
23.4
$78,000
Scenario 2
(100% Funded)
$27,561,000
32%
18.1
$842,000
Scenario 3
(75% Funded)
$27,561,000
19%
20.8
$631,500
Table 28 Wastewater Network PLOS Scenario Analysis Results
Laurentian Hills
Asset Management Plan 2025
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8.
Buildings & Facilities
The Town of Laurentian Hills owns and maintains several facilities and recreation centres that
provide key services to the community. These include:
Administrative offices
Public libraries
Fire stations and associated offices and facilities
Public works garages and storage sheds
Arenas
8.1 Inventory & Valuation
Table 30 summarizes the quantity and current replacement cost of all buildings & facility assets
available in the Town
buildings and facilities are not componentized. The
quantity listed represents the number of asset records currently available for each department.
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Fire
6
Quantity
$5,289,759
User-Defined
Land
Improvements
16
Quantity
$1,117,472
CPI
Landfill
2
Quantity
$24,226
User-Defined
Libraries
4
Quantity
$621,520
CPI
Municipal
5
Quantity
$1,647,973
User-Defined
Public Works
4
Quantity
$5,341,335
User-Defined
Recreation
3
Quantity
$561,742
CPI
TOTAL
$14,604,027
Table 30 Detailed Asset Inventory: Buildings & Facilities
Laurentian Hills
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Figure 42 Portfolio Valuation: Buildings & Facilities
8.2 Asset Condition
Figure 43 summarizes the replacement cost-weighted condition of the Town
buildings and
facilities portfolio. Based on assessed condition and age data, 74% of buildings and facilities
assets are in fair or better condition; however, 26%, with a current replacement cost of more
than $3.8 million are in poor or worse condition. These assets may be candidates for
replacement in the short term; similarly, assets in fair condition may require rehabilitation or
replacement in the medium term and should be monitored for further degradation in condition.
As buildings and facilities are not componentized, condition data is presented only at the site
level, rather than at the individual element or component level within each building.
Figure 43 Asset Condition: Buildings & Facilities Overall
$24k
$562k
$622k
$1.1m
$1.6m
$5.3m
$5.3m
$1m
$2m
$3m
$4m
$5m
$6m
Landfill
Recreation
Libraries
Land Improvements
Municipal
Fire
Public Works
Very Poor,
$3,226,000
(22%)
Poor, $526,000
(4%)
Fair, $7,041,000
(48%)
Good,
$1,034,000
(7%)
Very Good,
$2,777,000
(19%)
Laurentian Hills
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Figure 44 summarizes the age-based condition of buildings and facilities by each department. A
substantial portion of recreation assets and the majority of library assets are in poor to worse
condition. However, in the absence of componentization, this data has limited value.
Componentization of assets and integration of condition assessments will provide a more
accurate and reliable estimation of the condition of various facilities.
Figure 44 Asset Condition: Buildings & Facilities by Segment
8.3 Age Profile
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.
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.
$242k
$2.0m
$14k
$495k
$171k
$278k
$114k
$10k
$205k
$255k
$1.4m
$508k
$33k
$5.0m
$218k
$308k
$149k
$3.0m
$77k
0%
20%
40%
60%
80%
100%
Recreation
Public Works
Municipal
Libraries
Landfill
Land
Improvements
Fire
Very Good
Good
Fair
Poor
Very Poor
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Figure 45 Estimated Useful Life vs. Asset Age: Buildings & Facilities
Age analysis reveals that, on average, buildings and facilities assets are in the earlier stages of
their serviceable life. Once again, this analysis presented only at the site level, rather than at the
individual element or component level. Useful and meaningful age analysis for buildings is
entirely predicated on effective componentization.
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.
Table 31 outlines the Town
Activity Type
Description of Current Strategy
Maintenance
Municipal buildings are subject to regular inspections to identify health &
safety requirements as well as structural deficiencies that require additional
attention.
Critical buildings, including the Fire Stations, have a detailed maintenance
and rehabilitation schedule, while the maintenance of other facilities are
dealt with on a case-by-case basis.
Replacement
As a supplement to the knowledge and expertise of municipal staff the Town
occasionally works with contractors to complete Facility Needs Assessment
Studies.
Assessments are completed strategically as buildings approach their end-of-
life to determine whether replacement or rehabilitation is appropriate
Table 31 Lifecycle Management Strategy: Buildings & Facilities
28.2
12.2
12.6
26.3
27.5
27.5
19.7
49.3
23.4
54.2
58.5
48.2
49.8
50.4
0
10
20
30
40
50
60
70
Weighted Average Age
Weighted Average EUL
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8.5 Forecasted Long-Term Replacement Needs
Figure 46 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Town
buildings and facilities portfolio. This analysis was run until 2074 to
capture at least one iteration of replacement for the longest-lived asset in Citywide Assets, the
Town
Town
requirements (red dotted line) total $326 thousand for all buildings and facilities. Although
actual spending may fluctuate substantially from year to year, this figure is a useful benchmark
value for annual capital expenditure targets (or allocations to reserves) to ensure projects are
not deferred and replacement needs are met as they arise.
Replacement needs are forecasted to fluctuate over the next 50 years, with frequent
requirements of around $3 million. The chart also illustrates a backlog of $77 thousand,
dominated by land improvements, and comprising assets that have reached the end of their
useful life but still remain in operation. These projections and estimates are based on current
asset records, their replacement costs, and age analysis. They are designed to provide a long-
term, portfolio-level overview of capital needs and should be used to support improved financial
planning over several decades.
Figure 46 Forecasted Capital Replacement Needs Buildings & Facilities 2025-2074
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
$326k
$77k
$439k
$3.3m
$128k $280k
$3.9m
$3.3m
$1.5m
$113k
$2.7m
$838k
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
$3.0m
$3.5m
$4.0m
$4.5m
Fire
Land Improvements
Landfill
Libraries
Municipal
Public Works
Recreation
Annual Requirement
Laurentian Hills
Asset Management Plan 2025
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receive proper and timely lifecycle intervention, including replacements. In the case of buildings
and facilities, detailed componentization is necessary to develop more reliable lifecycle forecasts
that reflect the needs of individual elements and components.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
8.6 Risk Analysis
The risk matrix below is generated using available asset data, including service life remaining,
replacement costs, and building department. The risk ratings for assets without useful attribute
data were calculated using only age, service life remaining, and their replacement costs.
The matrix classifies assets based on their individual probability and consequence of failure, each
scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the
highest criticality and likelihood of failure receive a risk rating of 25; those with lowest
probability of failure and lowest criticality carry a risk rating of 1. As new data and information is
gathered, the Town 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 Town
wide
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$3,281,857
$1,551,910
$1,389,206
$5,381,054
$3,000,000
(22%)
(11%)
(10%)
(37%)
(21%)
Figure 47 Risk Matrix: Buildings & Facilities
8.7 Levels of Service
The tables that follow summarize the Town
prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below
represent performance measures that the Town has selected for this AMP.
8.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include maps,
of the types of facilities that the
municipality operates and maintains
See Appendix C
Table 32 Community Levels of Service: Buildings & Facilities
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8.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Quality
Average facility condition index value for facilities in the
municipality
51%
Performance
Capital reinvestment rate
1.37%
Table 33 Technical Levels of Service: Buildings & Facilities
8.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for buildings and facilities. Further PLOS analysis at the portfolio level can be found in Section 4.
Proposed Levels of Service Analysis.
8.8.1
PLOS Scenarios Analyzed
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$14,604,000
30%
15.7
$200,000
Scenario 2
(100% Funded)
$14,604,000
45%
12.9
$326,000
Scenario 3
(75% Funded)
$14,604,000
35%
14.8
$244,500
Table 34 Buildings & Facilities PLOS Scenario Analysis Results
Laurentian Hills
Asset Management Plan 2025
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9.
Vehicles
The Town of Laurentian Hills maintains a fleet of municipal vehicles that enable staff to deliver
essential services effectively and respond promptly to community needs. These assets support a
range of operations, including fire protection, snow removal and other public works activities.
9.1 Inventory & Valuation
Table 36 summarizes the quantity and current replacement cost of all vehicles assets available in
the Town
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Fire Vehicles
6
Quantity
$2,303,284
User-Defined
Public Works
Vehicles
6
Quantity
$1,052,395
User-Defined
TOTAL
12
$3,355,679
Table 36 Detailed Asset Inventory: Vehicles
Figure 50 Portfolio Valuation: Vehicles
Fire Vehicles,
$2,303,000,
(69%)
Public Works
Vehicles,
$1,052,000,
(31%)
Laurentian Hills
Asset Management Plan 2025
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9.2 Asset Condition
Figure 51 summarizes the replacement cost-weighted condition of the Town
vehicles portfolio.
Based primarily on assessed condition data, 98% of vehicles are in fair or better condition, with
the remaining 2% 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 75% of vehicles, based on replacement costs; age was used to
estimate condition for the remaining 25% of assets.
Figure 51 Asset Condition: Vehicles Overall
Figure 52 summarizes the condition of vehicles by each department. 100% of fire vehicles and
93% of public works vehicles are in fair or better condition.
Figure 52 Asset Condition: Vehicles by Segment
Poor, $75,000
(2%)
Fair, $75,000
(2%)
Good, $75,000
(2%)
Very Good,
$3,131,000
(93%)
$902k
$2.2m
$75k
$75k
$75k
75%
80%
85%
90%
95%
100%
Public Works
Vehicles
Fire Vehicles
Very Good
Good
Fair
Poor
Very Poor
Laurentian Hills
Asset Management Plan 2025
83
9.3 Age Profile
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.
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 53 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 53 Estimated Useful Life vs. Asset Age: Vehicles
Age analysis reveals that, on average, most vehicles are in the early to middle stages of their
expected life.
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 Town
5
5.7
19.8
9.6
0
5
10
15
20
25
Fire Vehicles
Public Works Vehicles
Weighted Average Age
Weighted Average EUL
Laurentian Hills
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Activity Type
Description of Current Strategy
Maintenance
Tire, fluid, and minor component changes are completed when required in
accordance with the vehicle manuals inspections.
Fire vehicles are maintained in reference to vehicle manuals and in
accordance with the guidelines set by the National Fire Protection
Association (NFPA).
Replacement
Vehicle age, mileage and annual repair costs are taken into consideration
when determining appropriate lifecycle activities. Most vehicles have a
replacement schedule of 10 years, but Staff try to maximize the service life
of the assets, where possible, based on performance and function.
Inspections
Staff complete regular visual inspections of vehicles to ensure they are in
state of adequate repair prior to operation.
and maintained by an external, certified mechanic.
Fire vehicles are inspected in reference to vehicle manuals and in
accordance with the guidelines set by the National Fire Protection
Association (NFPA).
Table 37 Lifecycle Management Strategy: Vehicles
9.5 Forecasted Long-Term Replacement Needs
Figure 54 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Town
vehicles portfolio. This analysis was run until 2044 to capture at
least one iteration of replacement for the longest-lived asset in Citywide Assets, the Town
primary asset management system and asset register. The Town
(red dotted line) total $229 thousand for all vehicles. Although actual spending may fluctuate
substantially from year to year, this figure is a useful benchmark value for annual capital
expenditure targets (or allocations to reserves) to ensure projects are not deferred and
replacement needs are met as they arise.
Replacement needs are forecasted to rise considerably, peaking at $3.2 million by 2044 as
vehicles reach the end of their useful life. These projections and estimates are based on asset
replacement costs and age analysis. They are designed to provide a long-term, portfolio-level
overview of capital needs and should be used to support improved financial planning over
several decades.
Laurentian Hills
Asset Management Plan 2025
85
Figure 54 Forecasted Capital Replacement Needs: Vehicles 2025-2044
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
9.6 Risk Analysis
The risk matrix below is generated using available asset data, including 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 Town may consider integrating relevant information that improves confidence in
the criteria used to assess asset risk and criticality.
$229k
$0
$150k
$977k
$225k
$3.2m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
$3.0m
$3.5m
Backlog
2025 - 2029
2030 - 2034
2035 - 2039
2040 - 2044
Fire Vehicles
Public Works Vehicles
Annual Requirement
Laurentian Hills
Asset Management Plan 2025
86
These risk models have been built into the Town
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$1,205,679
$2,075,000
$75,000
-
-
(36%)
(62%)
(2%)
(0%)
(0%)
Figure 55 Risk Matrix: Vehicles
9.7 Levels of Service
The tables that follow summarize the Town
prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below
represent performance measures that the Town has selected for this AMP.
9.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include
images, of the types of vehicles (i.e.
light, medium, and heavy duty) that
the municipality operates and the
services that they help to provide to
the community
The Town owns 12 vehicles which have an
average condition of 89% (Very good) for
fire and public works services.
Table 38 Community Levels of Service: Vehicles
9.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Reliability
Percentage of volunteer fire fighters with required licenses
for fire trucks/pumpers/tankers
46%
Quality
Average condition of vehicles
Very Good
Performance
Capital reinvestment rate
3.97%
Table 39 Technical Levels of Service: Vehicles
Laurentian Hills
Asset Management Plan 2025
87
9.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The tables below and graphs explain the proposed levels of service scenarios that were analyzed
for vehicles. Further PLOS analysis at the portfolio level can be found in section 4. Proposed
Levels of Service Analysis.
9.8.1
PLOS Scenarios Analyzed
The scenarios and analysis for the Vehicles asset portfolio was modelled over a 50 year time
period to reflect the short lifecycle or estimated useful life of this category.
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$3,356,000
35%
15.5
$133,000
Scenario 2
(100% Funded)
$3,356,000
51%
12.4
$229,000
Scenario 3
(75% Funded)
$3,356,000
42%
14.2
$171,750
Table 40 Vehicles PLOS Scenario Descriptions
Laurentian Hills
Asset Management Plan 2025
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10. Machinery & Equipment
To maintain the high quality of public infrastructure and ensure the effective delivery of core
municipal services, the Town utilizes a range of specialized machinery and equipment across its
departments. These assets enable staff to perform essential functions efficiently and safely, from
road maintenance and snow removal to facility servicing and emergency response.
Regular maintenance and timely repairs are essential to keeping machinery and equipment in
optimal condition, ensuring reliability, extending service life, and sustaining a consistent level of
service for the community.
10.1 Inventory & Valuation
Figure 58 summarizes the quantity and current replacement cost of all machinery and
equipment assets available in the Town
Segment
Quantity
Unit of
Measure
Replacement Cost
Primary RC
Method
Fire
210
Quantity
$916,483
CPI
Municipal
2
Quantity
$129,277
CPI
Public Works
13
Quantity
$2,360,496
User-Defined
Recreation
20
Quantity
$785,222
CPI
TOTAL
$4,191,478
Table 42 Detailed Asset Inventory: Machinery & Equipment
Figure 58 Portfolio Valuation: Machinery & Equipment
$129k
$785k
$916k
$2.4m
$500k
$1m
$2m
$2m
$3m
Municipal
Recreation
Fire
Public Works
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10.2 Asset Condition
Figure 59 summarizes the replacement cost-weighted condition of the Town
machinery and
equipment portfolio. Based on assessed condition and age data, 49% of assets are in fair or
better condition; the remaining 51% 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 59 Asset Condition: Machinery & Equipment Overall
Figure 60 summarizes the age-based condition of machinery and equipment by each
department. The majority of assets that support recreation services are in fair or better
condition. Assets in poor or worse condition are concentrated primarily in fire services.
Figure 60 Asset Condition: Machinery & Equipment by Segment
Very Poor,
$889,000
(21%)
Poor,
$1,258,000
(30%)
Fair, $484,000
(12%)
Good,
$808,000
(19%)
Very Good,
$752,000
(18%)
$129k
$510k
$28k
$85k
$46k
$712k
$36k
$398k
$43k
$43k
$118k
$1.0m
$126k
$95k
$82k
$66k
$648k
0%
20%
40%
60%
80%
100%
Recreation
Public Works
Municipal
Fire
Very Good
Good
Fair
Poor
Very Poor
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10.3 Age Profile
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.
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 61 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 61 Estimated Useful Life vs. Asset Age: Machinery & Equipment
Age analysis reveals that, on average, fire and recreation assets are still in operation even
though they have exceeded their useful life.
10.4 Current Approach to Lifecycle Management
The condition or performance of most assets will deteriorate over time. To ensure that municipal
assets are performing as expected and meeting the needs of customers, it is important to
establish a lifecycle management strategy to proactively manage asset deterioration.
The following table outlines the Town
17.3
3.9
9.8
21.1
12.5
6.7
14
15.7
0
5
10
15
20
25
Fire
Municipal
Public Works
Recreation
Weighted Average Age
Weighted Average EUL
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Activity Type
Description of Current Strategy
Maintenance
Maintenance program varies by department and asset type.
Bunker gear and other machinery and equipment belonging to the fire
department is inspected routinely by staff, and every 6 months by the
manufacturer, as per NFPA standards. Monthly night maintenance is
performed as issues are identified.
Public works machinery and equipment is maintained according to
manufacturer recommended actions and supplemented by the expertise of
municipal staff.
Inspection
Staff complete regular visual inspections of machinery and equipment to
ensure they are in state of adequate repair.
Replacement
The replacement of machinery and equipment depends on deficiencies
identified by operators that may impact their ability to complete required
tasks.
Table 43 Lifecycle Management Strategy: Machinery & Equipment
10.5 Forecasted Long-Term Replacement Needs
Figure 62 illustrates the cyclical short-, medium- and long-term infrastructure replacement
requirements for the Town
machinery and equipment portfolio. This analysis was run until
2054 to capture at least one iteration of replacement for the longest-lived asset in Citywide
Assets, the Town
Town
annual requirements (red dotted line) total $326 thousand for all machinery and equipment.
Although actual spending may fluctuate substantially from year to year, this figure is a useful
benchmark value for annual capital expenditure targets (or allocations to reserves) to ensure
projects are not deferred and replacement needs are met as they arise.
Replacement needs are forecasted to increase slightly over the next 10 year period, peaking at
$2.3 million in the next 20 years. These projections and estimates are based on asset
replacement costs and age analysis. They are designed to provide a long-term, portfolio-level
overview of capital needs and should be used to support improved financial planning over
several decades.
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Figure 62 Forecasted Capital Replacement Needs: Machinery & Equipment 2025-2054
Often, the magnitude of replacement needs is substantially higher than most municipalities can
afford to fund. In addition, most assets may not need to be replaced. However, quantifying and
monitoring these spikes is essential for long-term financial planning, including establishing
dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets
receive proper and timely lifecycle intervention, including replacements.
A summary of the 10-year replacement forecast can be found in Appendix B
10-Year Capital
Requirements.
10.6 Risk Analysis
The risk matrix below is generated using available asset data, including condition, service life
remaining, replacement costs, and service criticality. 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 Town may consider integrating relevant information that improves confidence in
the criteria used to assess asset risk and criticality.
$326k
$647k
$1.5m
$1.8m
$890k
$2.3m
$1.7m
$1.0m
$0
$500k
$1.0m
$1.5m
$2.0m
$2.5m
Backlog
2025 -
2029
2030 -
2034
2035 -
2039
2040 -
2044
2045 -
2049
2050 -
2054
Fire
Municipal
Public Works
Recreation
Annual Requirement
Total
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These risk models have been built into the Town
Asset Management Database (Citywide
Assets). See Risk & Criticality section for further details on approach used to determine asset
risk ratings and classifications.
1 - 4
5 - 7
8 - 9
10 - 14
15 - 25
Very Low
Low
Moderate
High
Very High
$852,491
$189,087
$676,757
$908,185
$1,564,958
(20%)
(5%)
(16%)
(22%)
(37%)
Figure 63 Risk Matrix: Machinery & Equipment
10.7 Levels of Service
The tables that follow summarize the Town
prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below
represent performance measures that the Town has selected for this AMP.
10.7.1
Community Levels of Service
Service
Attribute
Qualitative Description
Current LOS (2024)
Scope
Description, which may include
images, of the types of equipment
that the municipality operates and
the services that they help to
provide to the community
Fire services is supported by equipment
such as thermal imaging cameras, bunker
gear, fire hose, nozzles, cutter and
hydraulic ram.
Municipal services is supported by
equipment such as computers, phones
and livestream equipment.
The public works services is supported by
brusher, sander, loaders, edger, graders,
steamer, roller, compactor, spreader and
trailer.
Recreation is supported by benches, picnic
tables, tractors and playground
equipment.
Table 44 Community Levels of Service: Machinery & Equipment
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10.7.2
Technical Levels of Service
Service
Attribute
Technical Metric
Current LOS
(2024)
Quality
Average condition of equipment
41% (Fair)
Performance
Capital reinvestment rate
0.48%
Table 45 Technical Levels of Service: Machinery & Equipment
10.8 Proposed Levels of Service
As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels
of service (PLOS), discuss the associated risks and long-term sustainability of these service
levels, and explain the Town
The tables and graphs below explain the proposed levels of service scenarios that were analyzed
for machinery and equipment. Further PLOS analysis at the portfolio level can be found in
Section 4. Proposed Levels of Service Analysis.
10.8.1
PLOS Scenarios Analyzed
The scenario for Machinery & Equipment were modelled over a 50 year time period to reflect the
typically short lifecycle of this asset category
Scenario
Replacement
Cost
Projected
Average
Condition
Projected
Average
Risk
Average Annual
Investment
Scenario 1
(Maintain)
$4,190,000
5%
18.5
$20,000
Scenario 2
(100% Funded)
$4,190,000
41%
12.8
$326,000
Scenario 3
(75% Funded)
$4,190,000
31%
14.6
$244,500
Table 46 Machinery & Equipment PLOS Scenario Descriptions
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Strategies
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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
Town 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 Growth Assumptions
County of Renfrew Official Plan (March 2020)
The County of Renfrew adopted an Official Plan in 2002 to provide a policy framework for growth
and development. Updates to the Official Plan were adopted in 2020. Several municipalities in
the county, including Laurentian Hills, have decided to utilize the County Official Plan as their
detailed Official Plan.
A key objective defined in the plan includes the promotion of efficient and cost-effective
development to sustain long-term financial well-being and ensure the financial viability of
infrastructure and public services. The Plan also states that infrastructure and public services
shall be provided in a coordinated, efficient, and cost-effective manner through asset
management planning.
Efficient and cost-effective development are important in the management of residential,
commercial, and industrial growth. The County plans to foster efficient growth through a number
of initiatives, including improved telecommunication infrastructure, the development of
brownfields, the development of the tourism sector, and the development of new transportation
infrastructure to enhance highway access to the county and local municipalities.
Significant population growth is projected in the County of Renfrew. The County is projected to
grow by 24% between 2011 and 2036, increasing the population from 86,534 to 107,245, under
a high growth scenario. The Town of Laurentian Hills only accounts for 0.6% of the growth in the
County. The following table shows the population growth projections for the Town of Laurentian
Hills based on the 2011 population of 2,811.
Scenario
2016
2021
2026
2031
2036
Low Growth
2825
2839
2853
2868
2882
High Growth
2853
2896
2940
2985
3030
According to the most recent census data from 2016 and 2021, the growth assumptions in the
Official Plan are relatively accurate. The actual population in the Town of Laurentian Hills was
recorded as 2,961 in 2016 and 2,885 in 2021.
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11.2 Impact of Growth on Lifecycle Activities
For the near- to mid-term, the Town of Laurentian Hills had a population of approximately 2,885
residents in 2021, representing a slight decline from 2,961 in 2016. This indicates a stable or
modestly decreasing population without significant growth pressures. The demographic profile
shows an aging population, with about 18.9% of residents aged 65 or older as of 2021, implying
that future infrastructure planning must increasingly account for the needs of older adults rather
than rapid expansion to accommodate new residents.
While current trends suggest limited population growth, planning for potential future increases
may still require expanding infrastructure and services. Any growth-related assets constructed or
Plan (AMP). Although
additional residential units can broaden the assessment base and help offset some costs of
growth, the Town will need to evaluate the lifecycle costs of such infrastructure and incorporate
them into long-term funding strategies aimed at, at minimum, maintaining current service
levels. To support this, the Town imposes development charges under By-law No. 11-12, applied
at the time of building permits to recover costs related to growth-driven infrastructure
expansions across sectors such as water, wastewater, roads, fire protection, and recreation.
These charges ensure that new development pays its proportional share of capital costs,
maintaining fairness for existing taxpayers.
from Corry Lake. Recent quarterly capacity reports indicate the system typically operates at
about 17% to 18% of maximum capacity during average flows, demonstrating that current
water infrastructure sufficiently meets existing demand without strain.
Growth is not a primary driver of infrastructure demand, given a stable or slightly declining
population. Infrastructure asset management in the Town will be largely focused on the
maintenance, rehabilitation, and upgrading of aging assets to sustain reliable service and safety
standards.
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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 Town of Laurentian Hills to identify the financial resources required for sustainable
asset management based on existing asset inventories, desired levels of service, and projected
growth requirements. This report develops such a financial plan by presenting several scenarios
for consideration and culminating with final recommendations. As outlined below, the scenarios
presented model different combinations of the following components:
1. The financial requirements for:
a. Existing assets
b. Existing service levels
c. Requirements of contemplated changes in service levels as in indicated in Sec4.
Proposed Levels of Service Analysis.
d. Requirements of anticipated growth (none identified for this plan)
2. Use of traditional sources of municipal funds:
a. Tax levies
b. User fees
c. Debt
d. Development charges
3. Use of non-traditional sources of municipal funds:
a. Reallocated budgets
b. Partnerships
c. Procurement methods
4. Use of Senior Government Funds:
a. Canada Community-Building Fund (CCBF)
b. Annual grants
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
following:
1. In order to reduce financial requirements, consideration has been given to revising service
levels downward.
2. All asset management and financial strategies have been considered. For example:
a. If a zero-debt policy is in place, is it warranted? If not the use of debt should be
considered.
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b. Do user fees reflect the cost of the applicable service? If not, increased user fees
should be considered.
12.1 Financial Strategy: Proposed Level of Service
The Town of Laurentian Hills has developed and analyzed three scenarios to guide decision-
making on the proposed levels of service. These scenarios are outlined in detail in Section 4:
Proposed Levels of Service Analysis. Following this review, the Town has selected Scenario 1:
Maintain Current Investment as the proposed level of service for the purposes of this report, and
until further direction is provided by Council.
Under this scenario, the Town will continue operating at the current level of investment across
all asset categories without increasing spending at this time. Because the proposed level of
service reflects existing service delivery, there is no immediate requirement to adjust capital
budgets, nor are increases to tax rates or utility rates required. In effect, no new financial
strategy is necessary to sustain the chosen level of service in the short term.
However, this approach comes with inherent risks. At present, the Town is achieving a funding
level of 42% for tax-funded assets and only 9% for rate-funded assets. While this allows the
Town to avoid near-term financial impacts to residents, it also means that the community is
knowingly operating below the level of funding needed to sustain its infrastructure over the long
term. Underfunding increases the likelihood of unexpected failures, accelerated asset
deterioration, and ultimately higher costs when emergency repairs or replacements are required.
In such situations, the Town may face the need or risk of taking on debt, which carries the
added burden of interest payments and may reduce financial flexibility in the future.
At present, the Town has approximately $6.6 million in reserve balances, which could be used to
partially address investment needs as they arise. While this reserve provides a measure of
security, it is not sufficient to fully offset the funding gap over the long term. A prudent step
resilience against unforeseen costs, reduce reliance on debt financing, and provide greater
stability in managing infrastructure renewal.
In summary, maintaining the current investment level provides short-term financial stability and
avoids immediate tax or rate increases. However, it also carries general risks related to deferred
investment, including potential service disruptions, higher long-term costs, and reduced financial
flexibility. These risks should be carefully weighed by Council as part of future deliberations on
funding strategy and service levels.
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12.2 Financial Strategy: Ideal Funding Level
As discussed, the Town has chosen to maintain the current level of investment. Presented in this
section is an alternate financial strategy for consideration that would allow the Town to achieve
the ideal funding levels over a selected period of time based on the current average annual
requirements. This is provided to allow for consideration and comparison of the current level of
investment and the ideal level of investment.
12.2.1
Annual Requirements & Capital Funding
The annual requirements represent the amount the Town 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 Town would need to allocate approximately $2.9 million
annually to address capital requirements for the assets included in this AMP.As discussed in
Section 4. Proposed Levels of Service Analysis, the Town has chosen to maintain the current
level of funding for the proposed level of service and therefore no increase in spending is
required to achieve this level of service. In this case, we have presented a financial strategy that
provides a path to the ideal funding level. In essence this strategy compares the current to the
ideal.
Figure 66 Annual Capital Funding Requirements by Asset Category
$229k
$326k
$326k
$341k
$842k
$844k
$200k
$400k
$600k
$800k
$1m
Vehicles
Buildings & Facilities
Machinery & Equipment
Road Network
Wastewater Network
Water Network
Average Annual Capital Requirements by Category
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each asset.
However, for the Road Network lifecycle management strategies have been developed to identify
capital costs that are realized through strategic rehabilitation and renewal. The development of
these strategies allows for a comparison of potential cost avoidance if the strategies were to be
implemented. The following table shows this comparison.
1. Replacement Only Scenario: Based on the assumption that assets deteriorate and
without regularly scheduled maintenance and rehabilitation
are replaced at the end of
their service life.
2. Lifecycle Strategy Scenario: Based on the assumption that lifecycle activities are
performed at strategic intervals to extend the service life of assets until replacement is
required.
Asset Category
Annual
Requirements
(Replacement
Only)
Annual
Requirements
(Lifecycle
Strategy)
Difference
Road Network
$379,000
$341,000
$38,000
Table 48 Lifecycle Strategies Annual Savings
The implementation of a proactive lifecycle strategy for roads leads to a potential annual cost
avoidance of $38 thousand for the Road Network. This represents an overall reduction of the
annual requirements for each category by 10%. As the lifecycle strategy scenario represents the
lowest cost option available to the Town, we have used these annual requirements in the
development of the financial strategy.
12.2.2
Annual Funding Available
Based on a historical analysis of sustainable capital funding sources, the Town is committing
approximately $666 thousand towards capital projects per year. Given the annual capital
requirement of $2.9 million, there is currently a funding gap of $2.2 million annually.
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Figure 67 Annual Requirements vs. Capital Funding Available
12.2.3
Funding Objective
The Town has chosen to maintain the current investment rate. For comparison purposes have
developed a scenario that would enable the Town of Laurentian Hills to achieve full funding
within 10 years for tax funded assets and 20 years for rate funded assets.
1. Tax Funded Assets: Road Network, Buildings & Facilities, Machinery & Equipment and
Vehicles
2. Rate-Funded Assets: Water Network, Wastewater Network
Note: For the purposes of this AMP, we have excluded gravel roads since they are a perpetual
maintenance asset and end of life replacement calculations do not normally apply. If gravel
roads are maintained properly, they can theoretically have a limitless service life.
For each scenario developed we have included strategies, where applicable, regarding the use of
cost containment and funding opportunities.
$133k
$200k
$20k
$161k
$78k
$73k
$229k
$326k
$326k
$341k
$842k
$844k
$200k
$400k
$600k
$800k
$1m
Vehicles
Buildings & Facilities
Machinery & Equipment
Road Network
Wastewater Network
Water Network
Average Annual Capital Requirements vs. Actual Capital Reinvestment
by Category
Average Annual Requirements
Actual Reinvestment Rate
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12.2.4
Financial Profile: Tax Funded Assets
Current Funding Position
The following tables show, by asset category, the Town of Laurentian Hills
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
Taxes
CCBF
Total Available
(Current
Investment)
Road
Network
341,000
66,667
94,556
161,223
179,777
Buildings &
Facilities
326,000
200,000
0
200,000
126,000
Machinery &
Equipment
326,000
20,000
0
20,000
306,000
Vehicles
229,000
133,333
0
133,333
95,667
Total
1,222,000
420,000
94,556
514,556
707,444
Table 49 Annual Available Funding for Tax Funded Assets
The average annual investment requirement for the above categories is $1.2 million. Annual
revenue currently allocated to these assets for capital purposes is $515 thousand leaving an
annual deficit of $707 thousand. Put differently, these infrastructure categories are currently
funded at 42.1% of their long-term requirements.
Full Funding Requirements
In 2024, the Town of Laurentian Hills had budgeted annual tax revenues of approximately $3.5
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:
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Asset Category
Tax Change Required for
Full Funding
Road Network
5.0%
Buildings & Facilities
3.5%
Machinery & Equipment
8.6%
Vehicles
2.7%
Total
19.8%
Table 50 Tax Increase Requirements for Full Funding
Our scenario modeling includes capturing any values associated with debt payment and
allocating them to the infrastructure deficit outlined above. The table below outlines this concept
and presents several options. In this case the Town of Laurentian Hills does not currently carry
any debt.
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
707,444
707,444
707,444
707,444
Change in Debt Costs
N/A
N/A
N/A
N/A
Resulting
Infrastructure
Deficit:
707,444
707,444
707,444
707,444
Tax Increase
Required
19.8%
19.8%
19.8%
19.8%
Annually:
3.7%
1.9%
1.3%
1.0%
Table 51 Tax Increase Options 5-20 Years
Financial Strategy Recommendations
Considering all the above information, we recommend the 10-year option. This involves full
funding being achieved over 10 years by:
a) increasing tax revenues by 1.9% each year for the next 10 years solely for the purpose of
phasing in full funding to the asset categories covered in this section of the AMP.
b) allocating the current CCBF and OCIF revenue as outlined previously.
c) reallocating appropriate revenue from categories in a surplus position to those in a deficit
position.
d) increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
Notes:
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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
commitment3.
2. We realize that raising tax revenues by the amounts recommended above for
infrastructure purposes will be very difficult to do. However, considering a longer phase-in
window may have even greater consequences in terms of infrastructure failure.
Although this option achieves full funding on an annual basis in 10 years and provides financial
sustainability over the period modeled, the recommendations do require prioritizing capital
projects to fit the resulting annual funding available. Current data shows a pent-up investment
demand of $777 thousand for the Road Network and $647 thousand for Machinery & Equipment
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.
12.2.5
Financial Profile: Rate Funded Assets
Current Funding Position
The following tables show, by asset category, Laurentian Hills
requirements, current funding positions, and funding increases required to achieve full funding
on assets funded by rates.
Asset
Category
Avg.
Annual
Require-
ment
Annual Funding Available
Annual
Deficit
Rates
To
Operations
OCIF
Total
Available
(Current
Investment)
Water
Network
844,000
308,810
-298,318
62,697
73,189
770,811
Wastewater
Network
842,000
290,891
-275,558
62,697
78,030
763,970
Total
1,686,000
599,701
-573,876
125,393
151,219
1,534,781
Table 52 Annual Available Funding for Rate Funded Assets
The average annual investment requirement for the above categories is $1.69 million. Annual
revenue currently allocated to these assets for capital purposes is $151 thousand leaving an
annual deficit of $1.5 million. Put differently, these infrastructure categories are currently funded
at 9% of their long-term requirements.
3 The Town 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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Full Funding Requirements
Averaging from 2022-2024, Laurentian Hills had annual sanitary revenues of $309,000 and
annual water revenues of $291,000. As illustrated in the table below, without consideration of
any other sources of revenue, full funding would require the following changes over time:
Asset Category
Rate Change Required for
Full Funding
Water Network
249.6%
Wastewater Network
262.6%
Table 53 Rate Increase Requirements for Full Funding
In the following tables, we have expanded the above scenario to present multiple options. Due
to the significant increases required, we have provided phase-in options of up to 20 years:
Water Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
770,811
770,811
770,811
770,811
Rate Increase Required
249.6%
249.6%
249.6%
249.6%
Annually:
28.5%
13.4%
8.8%
6.5%
Table 54 Water Rate Increase Options 5-20 Years
Wastewater Network
5 Years
10 Years
15 Years
20 Years
Infrastructure Deficit
763,970
763,970
763,970
763,970
Rate Increase Required
262.6%
262.6%
262.6%
262.6%
Annually:
29.4%
13.8%
9.0%
6.7%
Table 55 Wastewater Rate Increase Options 5-20 Years
Financial Strategy Recommendations
Considering all of the above information, we recommend the 20-year option. This involves full
funding being achieved over 20 years by:
a) increasing rate revenues by 6.5% for water services and 6.7% for wastewater services
each year for the next 20 years solely for the purpose of phasing in full funding to the
asset categories covered in this section of the AMP.
b) increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
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Notes:
1. As in the past, periodic senior government infrastructure funding will most likely be
available during the phase-in period. This periodic funding should not be incorporated into
an AMP unless there are firm commitments in place.
2. We realize that raising rate revenues for infrastructure purposes will be very difficult to
do. However, considering a longer phase-in window may have even greater consequences
in terms of infrastructure failure.
3. Any increase in rates required for operations would be in addition to the above
recommendations.
Although this option achieves full funding on an annual basis in 20 years and provides financial
sustainability over the period modeled, the recommendations do require prioritizing capital
projects to fit the resulting annual funding available. Current data shows a pent-up investment
demand of $11.3 million for the Water Network and $9.3 million for the Wastewater Network.
Prioritizing future projects will require the current data to be replaced by condition-based data.
Although our recommendations include no further use of debt, the results of the condition-based
analysis may require otherwise.
12.3 Use of Debt
Debt can be strategically utilized as a funding source within the long-term financial plan. The
benefits of leveraging debt for infrastructure planning include:
a) the ability to stabilize tax & user rates when dealing with variable and sometimes
uncontrollable factors
b) equitable distribution of the cost/benefits of infrastructure over its useful life
c) a secure source of funding
d) flexibility in cash flow management
Debt management policies and procedures with limitations and monitoring practices should be
considered when reviewing debt as a funding option. In efforts to mitigate increasing commodity
prices and inflation, interest rates have been rising. Sustainable funding models that include
debt need to incorporate the now current realized risk of rising interest rates. The strategies
presented in this report provide a strategy to achieve sustainable funding without the further use
of debt, however we realize the it is likely to be utilized. At the time of this asset management
plan the Town of Laurentian Hills did not report having any current debt.
12.4 Use of Reserves
12.4.1
Available Reserves
Reserves play a critical role in long-term financial planning. The benefits of having reserves
available for infrastructure planning include:
a) the ability to stabilize tax rates when dealing with variable and sometimes uncontrollable
factors
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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
Laurentian Hills.
Asset Category
Balance at December 31,
2024
Road Network
576,796
Buildings
2,090,748
Machinery & Equipment
1,610,103
Vehicles
1,055,512
Total Tax Funded:
5,333,161
Water Network
520,965
Sanitary Sewer Network
740,551
Total Rate Funded:
1,261,571
Table 56 Laurentian Hills Reserve Balances
There is considerable debate in the municipal sector as to the appropriate level of reserves that
a Town should have on hand. There is no clear guideline that has gained wide acceptance.
Factors that municipalities should take into account when determining their capital reserve
requirements include:
a) breadth of services provided
b) age and condition of infrastructure
c) use and level of debt
d) economic conditions and outlook
e) internal reserve and debt policies.
These reserves are available for use by applicable asset categories during the phase-in period to
full funding. This coupled with Laurentian Hills
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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13. Recommendations & Key Considerations
13.1 Financial Strategies
1. To meet the proposed level of service chosen in this report, there is no increase in
investment required as it maintains the current spending levels. However, the Town
should review the feasibility of adopting a full-funding scenario to achieve 100% of
average annual funding requirement for the asset categories analyzed. This includes:
a. Increasing taxes by 1.9% per year over a period of 10 years;
b. Increasing water rates by 6.5% per year over a period of 20 years; and
c. Increasing sanitary rates by 6.7% per year over a period of 20 years.
2. Re-evaluate the current infrastructure requirements and the risk that the Town is willing
to tolerate, especially considering critical infrastructure funding levels.
a. Specific review and consideration should be given to the rate funded assets, and
the Towns ability and willingness to increase funding levels for these assets.
3. Continued allocation of OCIF and CCBF funding as previously outlined.
4. Reallocating appropriate revenue from categories in a surplus position to those in a deficit
position.
5. Increasing existing and future infrastructure budgets by the applicable inflation index on
an annual basis in addition to the deficit phase-in.
6. Continue to apply for project specific grant funding to supplement sustainable funding
sources.
13.2 Asset Data
1. Continuously review, refine, and calibrate lifecycle and risk profiles to better reflect actual
practices and improve capital projections. In particular:
a. the timing of various lifecycle events, the triggers for treatment, anticipated
impacts of each treatment, and costs
b. the various attributes used to estimate the likelihood and consequence of asset
failures, and their respective weightings
2. Asset management planning is highly sensitive to replacement costs. Periodically update
replacement costs based on recent projects, invoices, or estimates, as well as condition
assessments, or any other technical reports and studies. Material and labour costs can
fluctuate due to local, regional, and broader market trends, and substantially so during
major world events. Accurately estimating the replacement cost of like-for-like assets can
be challenging. Ideally, several recent projects over multiple years should be used. Staff
judgement and historical data can help attenuate extreme and temporary fluctuations in
cost estimates and keep them realistic.
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3.
on all projections and analyses, including condition, long-range forecasting, and financial
recommendations. Periodically reviewing and updating these values to better reflect in-
field performance and staff judgement is recommended.
13.3 Risk & Levels of Service
1. Risk models and matrices can play an important role in identifying high-value assets, and
developing an action plan which may include repair, rehabilitation, replacement, or further
evaluation through condition assessments. As a result, project selection and the
development of multi-year capital plans can become more strategic and objective. Initial
models have been built into Citywide for all asset groups. These models reflect current
data, which was limited. As the data evolves and new attribute information is obtained,
these models should also be refined and updated.
2. Available data on current performance should be centralized and tracked to support any
of service.
3. Staff should monitor evolving local, regional, and environmental trends to identify factors
that may shape the demand and delivery of infrastructure programs. These can include
population growth, and the nature of population growth; climate change and extreme
weather events; and economic conditions and the local tax base. This data can also be
used to review service level targets.
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Appendices
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Appendix A
Infrastructure Report Card
Asset
Category
Replacement
Cost
Average
Condition
Financial Capacity (Current
Investment)
%
Funded
Road Network
$7.0 m
Poor
Annual Requirement:
$341,000
47%
Funding Available:
$161,000
Annual Deficit:
$179,000
Water
Network
$24.2 m
Fair
Annual Requirement:
$844,000
9%
Funding Available:
$78,000
Annual Deficit:
$766,000
Wastewater
Network
$27.6 m
Very
Good
Annual Requirement:
$842,000
9%
Funding Available:
$73,000
Annual Deficit:
$769,000
Buildings &
Facilities
$14.6 m
Fair
Annual Requirement:
$326,000
61%
Funding Available:
$200,000
Annual Deficit:
$126,000
Vehicles
$3.4 m
Poor
Annual Requirement:
$229,000
58%
Funding Available:
$133,000
Annual Deficit:
$96,000
Machinery &
Equipment
$4.9 m
Poor
Annual Requirement:
$326,000
6%
Funding Available:
$20,000
Annual Deficit:
$306,000
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Appendix C
Level of Service Maps & Photos
Road Network Map: Town of Laurentian Hills (Part 1)
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Road Network Map: Town of Laurentian Hills (Part 2)
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Road Network Map: Village of Chalk River (Part 1)
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Road Network Map: Village of Chalk River (Part 2)