2025 Asset Management Plan

Mulmur, Ontario

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Asset Management Plan Township of Mulmur APRIL 2025 Township of Mulmur Asset Management Plan 2025 i This Asset Management Plan was prepared by: Empowering your organization through advanced asset management, budgeting & GIS solutions Township of Mulmur Asset Management Plan 2025 ii Key Statistics $98.6 m 2024 Replacement Cost of Asset Portfolio 87% Percentage of Assets in Fair or Better Condition 76% Percentage of Assets with Assessed Condition Data $755,000 Annual Capital Infrastructure Deficit 2.12% Target Investment Rate 1.36% Actual Investment Rate +0.8% Annually Tax Increase for 15 Years to Fully Fund Proposed Levels of Service +4.0% Annually Water Rate Increase for 20 Years to Fully Fund Proposed Levels of Service Township of Mulmur Asset Management Plan 2025 iii Table of Contents 1 Executive Summary ............................................................................ 1 2 Introduction & Context ........................................................................ 4 Portfolio Overview ................................................................................ 24 3 State of the Infrastructure ................................................................. 25 4 Proposed Levels of Service Analysis ..................................................... 34 Category Analysis: Core Assets ............................................................ 47 5 Road Network .................................................................................. 48 6 Bridges & Structural Culverts .............................................................. 63 7 Water Network ................................................................................. 76 Category Analysis: Non-Core Assets ..................................................... 92 8 Facilities ......................................................................................... 93 9 Land Improvements ......................................................................... 108 10 Machinery & Equipment .................................................................... 124 11 Vehicles ......................................................................................... 138 Strategies ........................................................................................... 150 12 Growth .......................................................................................... 151 13 Financial Strategy ............................................................................ 153 14 Recommendations & Key Considerations ............................................. 165 Township of Mulmur Asset Management Plan 2025 iv Appendices ......................................................................................... 169 Appendix A Infrastructure Report Card ...................................................... 170 Appendix B 10-Year Capital Requirements ................................................. 171 Appendix C Level of Service Maps ............................................................. 176 Appendix D Risk Rating Criteria ................................................................ 177 Appendix E Community Engagement ......................................................... 181 Appendix F Data Quality Dimensions ......................................................... 191 Appendix G Condition Assessment Guidelines ............................................. 192 Township of Mulmur Asset Management Plan 2025 1 Executive Summary 1 Executive Summary Municipal infrastructure delivers critical services that are foundational to the economic, social, and environmental health and growth of a community. The goal of asset management is to enable infrastructure to deliver an adequate level of service in the most cost-effective manner. This involves the ongoing review and update of infrastructure information and data alongside the development and implementation of asset management strategies and long-term financial planning. 1.1 Scope This Asset Management Plan (AMP) identifies the current practices and strategies that are in place to manage public infrastructure and makes recommendations where they can be further refined. Through the implementation of sound asset management strategies, the Township of Mulmur can ensure that public infrastructure is managed to support the sustainable delivery of municipal services. Figure 1 outlines the asset categories included in this AMP: Figure 1 Core and Non-Core Asset Categories 1.2 Compliance With the development of this AMP, the Township of Mulmur has achieved compliance with July 1, 2025, requirements under O. Reg. 588/17. This includes requirements for levels of service and inventory reporting for all asset categories. - Facilities - Land Improvements - Vehicles - Machinery & Equipment Non-Core Assets - Road Network - Bridges & Structural Culverts - Water Network Core Assets Township of Mulmur Asset Management Plan 2025 2 Executive Summary 1.3 Findings The overall replacement cost of the asset categories included in this AMP totals $98.6 million. Weighted by replacement cost, 87% of all assets analyzed in this AMP are in fair or better condition and assessed condition data was available for 76% of assets. For the remaining 24% 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 replacement only strategies to determine the lowest cost option to maintain the current level of service. To meet capital replacement and rehabilitation needs for existing infrastructure, prevent infrastructure backlogs, and achieve long-term sustainability, the Township's average annual capital requirement totals $2,095,000. Based on a historical analysis of sustainable capital funding sources, the Township is committing approximately $1,340,000 towards capital projects or reserves per year. As a result, there is currently an annual funding gap of $755,000. It is important to note that this AMP represents a snapshot in time and is based on the best available processes, data, and information at the Township. Strategic asset management planning is an ongoing and dynamic process that requires continuous improvement and dedicated resources. 1.4 Recommendations A financial strategy was developed to address the annual capital funding gap. The following graphic shows annual tax change required to eliminate the Township's infrastructure deficit based on a 20-year plan: Township of Mulmur Asset Management Plan 2025 3 Executive Summary Figure 2 Proposed Tax/Rate Changes Average Annual Tax Change 0.8% Years to Full Sustainability 15 Years Average Annual Rate Change 4.0% Years to Full Sustainability 20 Years Recommendations to guide continuous refinement of the Township's asset management program. These include:  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  Develop and regularly review short- and long-term plans to meet capital requirements  Continue to measure current levels of service and verify sustainability of proposed levels of service Tax-Funded ASSETS Rate-Funded WATER Township of Mulmur Asset Management Plan 2025 4 Introduction & Context 2 Introduction & Context 2.1 Community Profile Table 1 Township of Mulmur Community Profile The Township of Mulmur is a lower-tier municipality, part of Dufferin County, which is located within southern Ontario. It is situated south of Georgian Bay and west of Lake Simcoe. Mulmur is comprised of various communities such as Mansfield, Honeywood, Terra Nova, Whitfield, Primrose, and more. Each contributes unique elements to the Township, ranging from outdoor recreation to agricultural heritage, creating a diverse and scenic rural area. The area has a long history of settlement and development, with agriculture playing a central role in its community and economy over the years. The region is characterized for its natural landscapes, featuring rolling hills, agricultural fields, and parts of the Niagara Escarpment. The presence of the Bruce Trail, one of Canada's oldest and longest footpaths, highlights the area's commitment to preserving natural beauty and providing public access to outdoor activities. This rural setting is also known for its agricultural heritage, with numerous farms and local markets contributing to a strong sense of community and sustainability. 1 As per 2021 Census from Statistics Canada. Census Characteristic Township of Mulmur1 Ontario Population 2021 3,571 14,223,942 Population Change 2016-2021 2.7% 5.8% Total Private Dwellings 1,682 5,929,250 Population Density 12.5 / km2 15.9 / km2 Land Area 5,286.17 km2 892,411.76 km2 Township of Mulmur Asset Management Plan 2025 5 Introduction & Context The region's demand is driven by those looking for a quiet escape from city life, with its scenic beauty and outdoor opportunities attracting residents and tourists alike. People are drawn to Mulmur for its rural lifestyle, opportunities for country living, and its growing reputation as a destination for sustainable living and local farming. This interest supports the local real estate market, boosts agriculture- based tourism, and sustains the community's vibrant local economy. The Township of Mulmur's infrastructure priorities include enhancing essential services and infrastructure to support growth, focusing on water preservation, safety, and environmental sustainability. Key efforts will aim at balancing residential and commercial development while ensuring the preservation of natural and agricultural lands. 2.2 Asset Management Overview Municipalities are responsible for managing and maintaining a broad portfolio of infrastructure assets to deliver services to the community. The goal of asset management is to minimize the lifecycle costs of delivering infrastructure services, manage the associated risks, while maximizing the value ratepayers receive from the asset portfolio. The acquisition of capital assets accounts for only 10-20% of their total cost of ownership. The remaining 80-90% comes from operations and maintenance. This AMP focuses its analysis on the capital costs to maintain, rehabilitate and replace existing municipal infrastructure assets. Figure 3 Total Cost of Asset Ownership These costs can span decades, requiring planning and foresight to ensure financial responsibility is spread equitably across generations. An asset management plan is Township of Mulmur Asset Management Plan 2025 6 Introduction & Context critical to this planning, and an essential element of broader asset management program. 2.2.1 Foundational Asset Management Documentation The industry-standard approach and sequence to developing a practical asset management program begins with a Strategic Plan, followed by an Asset Management Policy and an Asset Management Strategy, concluding with an Asset Management Plan. Figure 4 Foundational Asset Management Documents This industry standard, defined by the Institute of Asset Management (IAM), emphasizes the alignment between the corporate strategic plan and various asset management documents. The strategic plan has a direct, and cascading impact on asset management planning and reporting. Asset Management Policy An asset management policy represents a statement of the principles guiding the Township's approach to asset management activities. It aligns with the organizational strategic plan and provides clear direction to municipal staff on their roles and responsibilities as part of the asset management program. The Township adopted a Strategic Asset Management Policy on June 5th, 2019, in accordance with Ontario Regulation 588/17. The objectives of the policy include: Strategic Plan Asset Management Policy Asset Management Strategy Asset Management Plan Township of Mulmur Asset Management Plan 2025 7 Introduction & Context  Fiscal responsibilities  Infrastructure priorities that are forward-looking  Environmental consciousness that minimizes infrastructure impact on the environment  Community-focused, aiming to enhance job opportunities, public spaces, and accessibility Asset Management Strategy An asset management strategy outlines the translation of organizational objectives into asset management objectives and provides a strategic overview of the activities required to meet these objectives. It provides greater detail than the policy on how the Township plans to achieve asset management objectives through planned activities and decision-making criteria. The Township's Asset Management Policy contains many of the key components of an asset management strategy and may be expanded on in future revisions or as part of a separate strategic document. Asset Management Plan The asset management plan (AMP) presents the outcomes of the Township's asset management program and identifies the resource requirements needed to achieve a defined level of service. The AMP typically includes the following content:  State of Infrastructure  Asset Management Strategies  Levels of Service  Financial Strategies The AMP is a living document that should be updated regularly as additional asset and financial data becomes available. This will allow the Township to re-evaluate the state of infrastructure and identify how the organization's asset management and financial strategies are progressing. 2.2.2 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. Township of Mulmur Asset Management Plan 2025 8 Introduction & Context Lifecycle Management Strategies The condition or performance of most assets will deteriorate over time. This process is affected by a range of factors including asset characteristics, location, utilization, maintenance history and environment. Asset deterioration has a negative effect on the ability of an asset to fulfill its intended function, and may be characterized by increased cost, risk and even service disruption. To ensure that municipal assets are performing as expected and meeting the needs of customers, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. There are several field intervention activities that are available to extend the life of an asset. These activities can be generally placed into one of three categories: maintenance, rehabilitation, and replacement. The following table provides a description of each type of activity and the general difference in cost. Depending on initial lifecycle management strategies, asset performance can be sustained through a combination of maintenance and rehabilitation, but at some point, replacement is required. Understanding what effect these activities will have on the lifecycle of an asset, and their cost, will enable staff to make better recommendations. Table 2 Lifecycle Management: Typical Lifecycle Interventions Lifecycle Activity Cost Typical Associated Risks Maintenance Activities that prevent defects or deteriorations from occurring $  Balancing limited resources between planned maintenance and reactive, emergency repairs and interventions;  Diminishing returns associated with excessive maintenance activities, despite added costs;  Intervention selected may not be optimal and may not extend the useful life as expected, leading to lower payoff and potential premature asset failure; Township of Mulmur Asset Management Plan 2025 9 Introduction & Context The Township's approach to lifecycle management is described within each asset category outlined in this AMP. Staff will continue to evolve and innovate current practices for developing and implementing proactive lifecycle strategies to determine which activities to perform on an asset and when they should be performed to maximize useful life at the lowest total cost of ownership. Risk & Criticality Quantitative Risk 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 Township. 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, Lifecycle Activity Cost Typical Associated Risks Rehabilitation/ Renewal Activities that rectify defects or deficiencies that are already present and may be affecting asset performance $$$  Useful life may not be extended as expected;  May be costlier in the long run when assessed against full reconstruction or replacement;  Loss or disruption of service, particularly for underground assets; Replacement/ Reconstruction Asset end-of-life activities that often involve the complete replacement of assets $$$$$  Incorrect or unsafe disposal of existing asset;  Costs associated with asset retirement obligations;  Substantial exposure to high inflation and cost overruns;  Replacements may not meet capacity needs for a larger population;  Loss or disruption of service, particularly for underground assets; Township of Mulmur Asset Management Plan 2025 10 Introduction & Context 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 5 Risk Equations The approach for quantitative risk used in this AMP relies on a calculable measurement of risk associated with each asset. The probability and consequence of failure are each scored from one to five, producing a minimum risk index of one for the lowest risk assets, and a maximum risk index of 25 for the highest risk assets. Probability of Failure Several factors can help decision-makers estimate the probability or likelihood of an asset's failure, including its condition, age, previous performance history, and exposure to extreme weather events, such as flooding and ice jams--both a growing concern for municipalities in Canada. Typically, a model is selected for a group of similar assets (e.g. all roads, water distribution system etc.). Often, parameters for estimating probability of failure include asset condition, service life remaining, and/or asset material. For each risk model, probability of failure (PoF) is determined through the following steps: Township of Mulmur Asset Management Plan 2025 11 Introduction & Context 1. Identification of available attribute data suitable for determining the probability of failure for selected assets. In some instances, available asset data may be limited requiring a more simplified PoF model, at least initially. 2. Determination of the type of risk that applies to the selected attribute. - Condition, Design Capacity, Economic, Environmental, Health and Safety, Operational, Social, Strategic 3. Where there are multiple parameters included in the PoF model, determine suitable weighting of each parameter. - Weighting allows the model to recognize that each factor may impact the probability of failure to a different degree. Where the weight is higher, the impact that factor has on the model increases too. Consequence of Failure Estimating criticality also requires identifying the types of consequences that the organization and community may face from an asset's failure, and the magnitude of those consequences. Consequences of asset failure will vary across the infrastructure portfolio; the failure of some assets may result primarily in high direct financial cost, but may pose limited risk to the community. Other assets may have a relatively minor financial value, but any downtime may pose significant health and safety hazards to residents. Table 3 illustrates the various types of consequences that can be integrated in developing risk and criticality models for each asset category and segments within. We note that these consequences are common, but not exhaustive. Table 3 Risk Analysis: Types of Consequences of Failure 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 Township of Mulmur Asset Management Plan 2025 12 Introduction & Context 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. Qualitative Risk Qualitative risk assessments in municipal asset management go beyond numbers and statistics to capture the broader picture of potential vulnerabilities. This approach recognizes that not all risks can be easily quantified, especially when dealing with factors that involve human judgment, institutional knowledge, and unpredictable external conditions. Here's a deeper look at how and why qualitative risk is vital: Type of Consequence Description 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 Township. Environmental Environmental consequences can include pollution, erosion, sedimentation, habitat damage, etc. Public Health and Safety Adverse health and safety impacts may include injury or death, or impeded access to critical services. Strategic These include the effects of asset failure on the community's long-term strategic objectives, including economic development, business attraction, etc. Township of Mulmur Asset Management Plan 2025 13 Introduction & Context Understanding the Nuances  Human Expertise and Experience: Rather than solely relying on historical data or mathematical models, qualitative risk assessments tap into the insights of experienced staff and stakeholders. Their first-hand knowledge can highlight emerging issues--such as gaps in asset data or unanticipated maintenance challenges--that might be overlooked in quantitative reviews.  Contextual Factors: Municipalities face a range of unique challenges including aging infrastructure, rapid growth, and climate change impacts. Qualitative assessments take into account the specific context of the community, such as local environmental conditions, regulatory landscapes, and historical performance of assets. Methodological Approach  Workshops and Interviews: Facilitated risk workshops and structured interviews are key methods used in qualitative assessments. These sessions encourage open dialogue among staff from various departments, ensuring that diverse perspectives are considered. Through guided questions-- covering topics from asset data confidence to lifecycle management strategies--municipalities can identify risks that are not immediately obvious from a numerical analysis.  Identifying Hidden Vulnerabilities: The qualitative process allows teams to explore risks that are dynamic and interrelated. For instance, while data might show a certain asset has reached the end of its useful life, qualitative insights might reveal that a lack of proactive maintenance, compounded by extreme weather conditions, poses a more immediate risk to service delivery. Strategic Benefits  Informed Decision-Making: By combining qualitative insights with quantitative data, municipal planners can develop more holistic asset management strategies. This integrated approach enables better prioritization of capital investments, ensuring that both the immediate and long-term needs of the community are addressed.  Proactive Risk Management: Qualitative risk assessments foster a forward-looking mindset. Rather than simply reacting to failures after they occur, this methodology encourages the development of proactive measures--such as enhanced maintenance programs and updated lifecycle strategies--that can mitigate risks before they escalate.  Adaptability to Change: As external conditions evolve, qualitative assessments provide the flexibility needed to capture new risks. Whether it's Township of Mulmur Asset Management Plan 2025 14 Introduction & Context the onset of climate change-related events or shifts in funding availability, qualitative methods allow municipal asset managers to continuously refine their strategies in response to real-world developments. By grounding the assessment process in real-world expertise and contextual analysis, qualitative risk evaluation becomes an essential tool for developing resilient, adaptive, and well-informed asset management strategies. This ensures that municipalities are not only prepared to handle current challenges but are also equipped to navigate the uncertainties of the future. Levels of Service A level of service (LOS) is a measure of the services that the Township is providing to the community and the nature and quality of those services. Within each asset category in this AMP, technical metrics and qualitative descriptions that measure both technical and community levels of service have been established and measured as data is available. The Township measures the level of service provided at two levels: Community Levels of Service, and Technical Levels of Service. 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 (Road Network, Bridges & Structural Culverts, Water Network) 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 Township's asset management strategies on the physical condition of assets or the quality/capacity of the services they provide. For core asset categories as applicable the province, through O. Reg. 588/17, has also provided technical metrics that are required to be included in this AMP. For all categories where not already prescribed by the province, the Township has opted to include the average condition, percentage of the category in fair or better condition, percentage of the category in poor or lower condition, and a ratio of the average annual requirement (AAR) against the amount budgeted towards each category. Township of Mulmur Asset Management Plan 2025 15 Introduction & Context Current and Proposed Levels of Service Current levels of service are the past performance metrics of an asset category up until present day. In contrast, proposed levels of service look toward the Township's goal for asset performance by a defined future date. Once current levels of service have been measured, proposed levels of service over a 10-year period should be established, in accordance with O. Reg. 588/17. Proposed levels of service should be realistic and achievable within the timeframe outlined by the Township. They should also be determined by consideration of a variety of community expectations, fiscal capacity, regulatory requirements, corporate goals and long-term sustainability. Once proposed levels of service have been established, and prior to July 2025, the Township must identify a lifecycle management and financial strategy which allows these targets to be achieved. It is important to note that O. Reg 588/17 does not dictate which proposed LOS metrics municipalities need to strive for. A proposed level of service will be very specific to each community's resident desires, political goals, and financial capacity. This can range from increasing service levels and costs, to maintaining or even reducing current performance 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 Both current and proposed levels of service for all included asset categories are outlined in this AMP. 2.3 Scope & Methodology 2.3.1 Asset Categories for this AMP This asset management plan for the Township 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 the financial strategy to fund them. The AMP summarizes the state of the infrastructure for the Township's asset portfolio, establishes current levels of service and the associated technical and customer oriented key metrics, outlines lifecycle strategies for optimal asset management and performance, and provides financial strategies to reach sustainability for the asset categories listed below. Township of Mulmur Asset Management Plan 2025 16 Introduction & Context Figure 6 Tax-Funded Asset Categories - Road Network - Bridges & Structural Culverts - Facilities - Land Improvements - Vehicles - Machinery & Equipment - Water Network 2.3.2 Data Effective Date It is important to note that this plan is based on data as of December 2024; therefore, it represents a snapshot in time using the best available processes, data, and information at the Township. Strategic asset management planning is an ongoing and dynamic process that requires continuous data updates and dedicated data management resources. 2.3.3 Defining 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. Tax-Funded Assets Rate-Funded Assets Township of Mulmur Asset Management Plan 2025 17 Introduction & Context Cost Inflation / CPI Tables Historical costs of the assets are inflated based on Consumer Price Index or Non-Residential Building Construction Price Index. User-defined costs based on reliable sources are a reasonably accurate and reliable way to determine asset replacement costs. Cost inflation is typically used in the absence of reliable replacement cost data. It is a reliable method for recently purchased and/or constructed assets where the total cost is reflective of the actual costs that the Township incurred. As assets age, and new products and technologies become available, cost inflation becomes a less reliable method. 2.3.4 Estimated Service Life & Service Life Remaining The estimated useful life (EUL) of an asset is the period over which the Township expects the asset to be available for use and remain in service before requiring replacement or disposal. The EUL for each asset in this AMP was assigned according to the knowledge and expertise of municipal staff and supplemented by existing industry standards when necessary. By using an asset's in-service data and its EUL, the Township can determine the service life remaining (SLR) for each asset. Using condition data and the asset's SLR, the Township can more accurately forecast when it will require replacement. The SLR is calculated as follows: Figure 7 Service Life Remaining Calculation 2.3.5 Average Annual Requirement The Average Annual Requirement (AAR) is the estimated amount of money the Township would need to set aside each year to ensure sufficient funds are available to carry out major rehabilitation or replacement work when it is due. It is a long- term financial planning tool used to support sustainable asset management and service delivery. Township of Mulmur Asset Management Plan 2025 18 Introduction & Context In essence, it treats infrastructure investment like a savings plan: "If we spread the total lifecycle cost of this asset over its useful life, how much do we need to reserve each year to be ready when major costs arise?" Why the AAR matters:  Long-Term Planning: Encourages proactive financial planning rather than reactive crisis spending.  Sustainability: Ensures assets are properly maintained and replaced without burdening future budgets.  Transparency: Helps identify whether current funding levels are sufficient-- or if there is a funding gap.  Optimized Investment: Supports lifecycle strategies that lower total costs and extend asset life. Lifecycle interventions (e.g., resurfacing a road, relining a pipe) may require upfront investment, but they can extend the life of the asset, which means the cost is spread out over a longer period. This often results in a lower AAR, because the asset is delivering value for a longer time before needing full replacement. Table 4 Average Annual Requirement Example In the example outlined in Table 4, the life of the road would be extended by 15 years if a $500K mid-life rehabilitation was performed, thus reducing the annual amount that must be reserved. The $25,000 that would have been put aside for the road can now be reallocated to another project. 2.3.6 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 Scenario Total Lifecycle Cost Useful Life AAR No Rehab $2.5M (replace at Year 25) 25 years $100,000/year With Rehab $2.5M + $500K rehab at Year 15 40 years $75,000/year Township of Mulmur Asset Management Plan 2025 19 Introduction & Context rate is a measurement of available or required funding relative to the total replacement cost. By comparing the actual vs. target reinvestment rate the Township can determine the extent of any existing funding gap. The reinvestment rate is calculated as follows: Figure 8 Target Reinvestment Rate Calculation Figure 9 Actual Reinvestment Rate Calculation 2.3.7 Establishing 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 Township's asset portfolio. The table below outlines the condition rating system used in this AMP to determine asset condition. This rating system is aligned with the Canadian Core Public Infrastructure Survey which is used to develop the Canadian Infrastructure Report Card. When assessed condition data is not available, service life remaining is used to approximate asset condition. Township of Mulmur Asset Management Plan 2025 20 Introduction & Context Table 5 Standard Condition Rating Scale The analysis in this AMP is based on assessed condition data only as available. In the absence of assessed condition data, asset age is used as a proxy to determine asset condition. 2.3.8 Evaluating Quantitative Risk As outlined in Risk & Criticality, risk ratings are derived from the total probability of failure multiplied by the total consequence of failure. In this model, risk ratings may range from 0-25. The table below provides ranges of Very Low, Low, Moderate, High, and Very High dependent on the risk rating value. 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 Township of Mulmur Asset Management Plan 2025 21 Introduction & Context Table 6 Probability of Failure, Consequence of Failure, and Overall Risk Ratings Additionally, risk ratings can be displayed as a matrix with the probability of failure from 1-5 along the bottom and the consequence of failure from 1-5 along the side. Table 7 Example of Risk Matrix Consequence of Failure 5 # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost 4 # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost 3 # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost 2 # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost 1 # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost # Assets Quantity Cost 1 2 3 4 5 Probability of Failure Probability of Failure Consequence of Failure Risk Rating 1 - Rare 1 - Insignificant 1 - 4 - Very Low 2 - Unlikely 2 - Minor 5 - 7 - Low 3 - Possible 3 - Moderate 8 - 9 - Moderate 4 - Likely 4 - Major 10 - 14 - High 5 - Almost Certain 5 - Severe 15 - 25 - Very High Township of Mulmur Asset Management Plan 2025 22 Introduction & Context 2.4 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 livable and sustainable communities, the regulation is a key, mandated driver of asset management planning and reporting. It places substantial emphasis on current and proposed levels of service and the lifecycle costs incurred in delivering them. Figure 10 below outlines key reporting requirements under O. Reg 588/17 and the associated timelines. Figure 10 O. Reg. 588/17 Requirements and Reporting Deadlines 2 O. Reg. 588/17: Asset Management Planning for Municipal Infrastructure https://www.ontario.ca/laws/regulation/170588 Township of Mulmur Asset Management Plan 2025 23 Introduction & Context 2.4.1 O. Reg. 588/17 Compliance Review Requirement O. Reg. 588/17 Section AMP Section Reference Status Summary of assets in each category S.5(2), 3(i) 5.1 - 13.1 Complete Replacement cost of assets in each category S.5(2), 3(ii) 5.1 - 13.1 Complete Average age of assets in each category S.5(2), 3(iii) 5.3 - 13.3 Complete Condition of core assets in each category S.5(2), 3(iv) 5.2 - 13.2 Complete Description of municipality's approach to assessing the condition of assets in each category S.5(2), 3(v) 5.2 - 13.2 Complete Current levels of service in each category S.5(2), 1(i-ii) 5.7 - 13.7 Complete Current performance measures in each category S.5(2), 2 5.7 - 13.7 Complete Lifecycle activities needed to maintain current levels of service for 10 years S.5(2), 4 5.4 - 13.4 Complete Costs of providing lifecycle activities for 10 years S.5(2), 4 Appendix B Complete Growth assumptions S.5(2), 5(i-ii) S.5(2), 6(i-vi) 12.1 Complete Township of Mulmur Asset Management Plan 2025 24 Introduction & Context Portfolio Overview Township of Mulmur Asset Management Plan 2025 25 State of the Infrastructure 3 State of the Infrastructure The state of the infrastructure (SOTI) summarizes the inventory, condition, age profiles, and other key performance indicators for the Township's infrastructure portfolio. These details are presented for all core and non-core asset categories. 3.1 Asset Hierarchy & Data Classification Figure 11 Asset Hierarchy and Data Classification -Barriers -Paved Roads -Road Signs -Small Culverts -Storm Drains -Streetlights Road Network -Bridges -Structural Culverts Bridges & Culverts -Hydrants -Municipal Wells -Valves & Fittings -Water Buildings -Water Equipment -Water Mains -Water Meters Water Network -Administration Building -Arena -Fire Hall -Gravel Pit Scale House -Mansfield Public Washroom -Public Works Building -Sand Dome -Utility Storage Facilities -Ball Diamond -Fencing -Multipurpose Pad -Outdoor Furnishings -Parking Lot -Play Structure -Trail -Wells Land Improvements -Attachments -Fueling Station -Heavy Equipment -Medium Equipment -Small Equipment -Solar Panels Machinery & Equipment -Heavy Duty -Light Duty Vehicles Township of Mulmur Asset Management Plan 2025 26 State of the Infrastructure Asset hierarchy shows how individual assets, and their components, relate to the broader system. The structure influences how data is interpreted. Assets are organized to support clear, efficient reporting, with key details summarized at the segment level. 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 $98.6 million. This estimate was calculated using user- defined costing, as well as inflation of historical or original costs to current date. This estimate reflects the replacement of historical assets with similar, not necessarily identical, assets available for procurement today. Table 8 provides a detailed breakdown of replacement cost and average annual requirement3 by asset category. Figure 12 illustrates the replacement cost of each asset category; at 46% of the total portfolio, bridges and structural culverts form the largest share of the Township's asset portfolio, followed by the facilities at 22%. Table 8 Detailed Asset Inventory Valuation: Portfolio Overview` 3 For further clarification on Average Annual Requirement (AAR), see section 2.3.5 Average Annual Requirement. 4 Weighted by replacement cost. Category Replacement Cost Replacement Cost Method % of Total4 AAR3 Road Network $13,584,462 Cost per Unit 14% $505,598 Bridges & Culverts $45,118,373 User-Defined 46% $573,107 Facilities $22,036,581 User-Defined 22% $354,293 Land Improvements $1,644,272 User-Defined 2% $75,668 Machinery & Equipment $3,660,700 CPI 4% $312,131 Vehicles $1,713,410 User-Defined 2% $148,815 Water Network $10,820,882 Cost per Unit 11% $124,960 TOTAL $98,578,680 User-Defined 100% $2,094,572 Township of Mulmur Asset Management Plan 2025 27 State of the Infrastructure Figure 12 Current Replacement Cost: Portfolio Overview 3.2.2 Target vs. Actual Reinvestment Rate Figure 13 Current Vs. Target Reinvestment Rate: Portfolio Overview The chart above depicts funding gaps by comparing the target to the current reinvestment rate. To meet the existing long-term capital requirements, the Township requires an annual capital investment of $2,095,000, for a target portfolio reinvestment rate of 2.12%. Currently, annual investment from sustainable $1.6m $1.7m $3.7m $10.8m $13.6m $22.0m $45.1m Land Improvements Vehicles Machinery & Equipment Water Network Road Network Facilities Bridges & Culverts 3.72% 1.27% 1.61% 4.60% 8.53% 8.69% 1.15% 2.53% 1.13% 0.75% 7.68% 0.36% 0% 2% 4% 6% 8% 10% Target Reinvestment Rate Actual Reinvestment Rate Township of Mulmur Asset Management Plan 2025 28 State of the Infrastructure revenue source is $1,340,000, for a current portfolio reinvestment rate of 1.36%. This leads to an annual infrastructure budget deficit of $755,000. Target and current re-investment rates by asset category are detailed below. 3.2.3 Condition of Asset Portfolio Figure 14 Asset Condition: Portfolio Overview Figure 14 and Figure 15 summarize asset condition at the portfolio and category levels, respectively. Based on both assessed condition and age-based analysis, 87%5 of the Township's infrastructure portfolio is in fair or better condition, with the remaining 13%5 in poor or lower condition, and an overall condition rating of 66%5. Typically, assets in poor or lower 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 lower. Condition data was available for 76% of the overall asset portfolio. Further breakdown by category is outlined in Table 10. Age-based condition estimations can skew data and lead to potential under- or overstatement of asset needs. Further, when assessed condition data was available, it was projected to current year-end (2024). This 'projected condition' can generate lower condition ratings 5 Average weighted by replacement cost. Very Poor, $4,395,000 (4%) Poor, $8,135,000 (8%) Fair, $25,116,000 (25%) Good, $34,464,000 (35%) Very Good, $26,469,000 (27%) Township of Mulmur Asset Management Plan 2025 29 State of the Infrastructure than those established at the time of the condition assessment. The rate of this deterioration will also depend on lifecycle curves used to project condition over time. Figure 15 Asset Condition: Portfolio Overview by Category As further illustrated in Figure 15 at the category level, the majority of infrastructure categories are in fair or better condition, based primarily on assessed condition. See Table 10 for details on how condition data was derived for each asset segment. Table 9 Detailed Asset Condition: Portfolio Overview Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition Road Network $3,955,690 29% $9,628,772 71% Fair (55%) Bridges & Culverts $3,424,404 8% $41,693,969 92% Good (69%) Facilities $1,368,094 6% $20,668,487 94% Good (66%) $8.3m $431k $675k $487k $2.9m $11.8m $1.8m $1.8m $378k $836k $62k $4.7m $21.5m $5.1m $279k $526k $229k $13.0m $8.4m $2.7m $329k $468k $942k $764k $1.3m $1.6m $2.8m $59k $436k $681k $102k $104k $1.9m $1.1m 0% 20% 40% 60% 80% 100% Water Network Vehicles Machinery & Equipment Land Improvements Facilities Bridges & Culverts Road Network Very Good Good Fair Poor Very Poor Township of Mulmur Asset Management Plan 2025 30 State of the Infrastructure Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition Land Improvements $866,104 53% $778,168 47% Fair (52%) Machinery & Equipment $1,623,184 44% $2,037,516 56% Fair (50%) Vehicles $904,272 53% $809,138 47% Fair (52%) Water Network $388,747 4% $10,432,135 96% Good (78%) TOTAL $12,530,495 13% $86,048,185 87% Good (66%) Source of Condition Data This AMP relies on assessed condition for 76% 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 10 below identifies the source of condition data used throughout this AMP. Table 10 Source of Condition Data: Portfolio Overview Asset Category % Assessed6 Source of Condition Data Road Network 59% Township Staff Bridges & Culverts 100% 2024 OSIMs Report Facilities 83% Keller Engineering Land Improvements 51% Keller Engineering/ Township Staff Machinery & Equipment 24% Township Staff Vehicles 0% N/A Water Network 13% Keller Engineering/ Township Staff 6 Percentage of the assets within the category with condition assessment data, weighted by replacement cost. Township of Mulmur Asset Management Plan 2025 31 State of the Infrastructure 3.2.4 Risk & Criticality Using the risk equation and preliminary risk models, Figure 16 shows how assets across the different asset categories are stratified within the 1-25 risk rating ranges while Table 11 provides a breakdown of the probability of failure, consequence of failure, and risk ratings by asset category. Figure 16 Risk Ratings: Portfolio Overview 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $39,303,805 $18,189,418 $7,840,149 $14,476,482 $18,768,826 (40%) (18%) (8%) (15%) (19%) The analysis shows that based on current risk models, approximately 19% of the Township's assets, with a current replacement cost of roughly $18.8 million, carry a risk rating of 15 or higher (red) out of 25. Assets in this group may have a high probability of failure based on available condition data and age-based estimates and were considered to be most essential to the Township. Table 11 Probability of Failure, Consequence of Failure, and Risk Rating: Portfolio Overview by Category Asset Category Probability of Failure Consequence of Failure Risk Rating Road Network 2.73 / 5 4.27 / 5 11.82 / 25 Bridges & Culverts 2.0 / 5 2.4 / 5 4.5 / 25 Facilities 2.59 / 5 4.49 / 5 11.63 / 25 Land Improvements 2.96 / 5 3.35 / 5 10.39 / 25 Machinery & Equipment 3.03 / 5 4.01 / 5 11.59 / 25 Vehicles 3.05 / 5 4.68 / 5 14.09 / 25 Water Network 1.33 / 5 3.75 / 5 5.16 / 25 TOTAL 2.25 / 5 3.41 / 5 7.7 / 25 Township of Mulmur Asset Management Plan 2025 32 State of the Infrastructure Overall, the average risk rating for the entire portfolio is 7.7, which is considered Low. 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 ranges. Staff should also continue to calibrate risk models. We caution that since risk ratings rely on many factors beyond an asset's physical condition or age, assets in a state of disrepair can sometimes be classified as low- risk, despite their poor condition rating. In such cases, although the probability of failure for these assets may be high, their consequence of failure ratings were determined to be low based on the attributes used and the data available. Similarly, assets with very high condition ratings can receive a moderate to high- risk rating despite a low probability of failure. These assets may be deemed as highly critical to the Township based on their costs, economic importance, social significance, and other factors. Continued calibration of an asset's criticality and regular data updates are needed to ensure these models more accurately reflect an asset's actual risk profile. 3.2.5 Forecasted Capital Requirements Aging assets require maintenance, rehabilitation, and replacement. Figure 17 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. To achieve and maintain the capital replacement needs for the proposed levels of service, an average of $1.6 million is required each year (red dotted line). Although actual spending may fluctuate substantially from year to year, this figure is a useful benchmark for annual capital expenditure targets (or allocations to reserves) to ensure projects are not deferred and replacement needs are met as they arise. This figure relies on age and available condition data. Figure 17 illustrates relatively consistent capital requirements for each five-year segment through the forecast period. Additionally, there is currently an approximate $1.5 million backlog comprised of assets that remain in service beyond their estimated useful life. The 10-year capital requirements expanded in Appendix B have accounted for removing this accumulation and continuing to rehabilitate or replace assets in alignment with the proposed levels of service. 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 should continue to be used to Township of Mulmur Asset Management Plan 2025 33 State of the Infrastructure prioritize projects, continuously refining estimates for ongoing capital needs, and helping to select the right treatment for each asset. Figure 17 Capital Replacement Needs: Portfolio Overview 2025-2074 . $2.1m $4.9m $6.6m $7.7m $5.9m $6.6m $9.7m $8.4m $11.0m $9.0m $13.4m $0 $2m $4m $6m $8m $10m $12m $14m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Road Network Bridges & Culverts Facilities Land Improvements Machinery & Equipment Vehicles Water Network Annual Requirement Total Township of Mulmur Asset Management Plan 2025 34 Proposed Levels of Service Analysis 4 Proposed Levels of Service Analysis 4.1 Overview 4.1.1 O. Reg. 588/17 Proposed Levels of Service Requirements The third iteration of municipal Asset Management Plans required under O. Reg. 588/17 requires the evaluation of levels of service (LOS) that includes:  Proposed LOS options (i.e. increase, decrease, or maintain current LOS) and the risks associated with these options  How the proposed LOS may differ from current LOS.  Whether the proposed LOS are achievable; and  The municipality's ability to afford proposed LOS. Additionally, a lifecycle management and financial strategy to support the proposed LOS must be identified for a period of 10 years with specific reporting on:  Identification of lifecycle activities needed to provide the proposed LOS.  Annual costs over the next 10 years to achieve the proposed LOS; and  Identification of proposed funding projected to be available 4.1.2 Considerations Proposed LOS for the Township have been developed through comprehensive engagement with Township staff. In order to achieve any target LOS goal, careful consideration 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) Township of Mulmur Asset Management Plan 2025 35 Proposed Levels of Service Analysis Infrastructure Condition Assessments  Regularly assess the condition of critical infrastructure components  Use standardized condition assessment protocols (where possible) to quantify the state of the infrastructure  Identify non-critical components where maintenance could potentially be deferred without causing severe degradation  Use current condition metrics as benchmarks to gauge feasibility of large adjustments to LOS Service Metrics  Measure user satisfaction, response times, and other relevant indicators for specific services Service Impact Assessments  Evaluate potential impacts on user satisfaction and service delivery due to changes in infrastructure condition 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 Township of Mulmur Asset Management Plan 2025 36 Proposed Levels of Service Analysis Risk Management  Identify potential risks to infrastructure and service quality resulting from adjusted service levels  Develop contingency plans to address unforeseen challenges without compromising service quality  Monitor performance closely to ensure that the target investment translates to the desired infrastructure condition Infrastructure Condition Enhancements  Identify areas for improvement and increased maintenance to enhance overall infrastructure condition Timelines  Although O. Reg. 588/17 requires evaluation of expenditures for a 10-year period in pursuit of proposed LOS, it does not require municipalities to achieve the LOS within this 10-year timeframe (ex. a municipality may have a goal to reach X% condition by 2050, the AMP is required to review the first 10 years of the strategy to reach this goal)  Careful consideration should be given to setting realistic targets for when proposed service levels can be achieved. Stakeholder Engagement  It is recommended to ensure adjustments to LOS are not made in isolation and without consultation of various stakeholders. This could include, but is not limited to: - Department Heads/Infrastructure Managers - Residents - Service Users - Council  Efforts should be made to communicate changes to LOS transparently to all affected stakeholders Flexibility  Priorities may change over time due to a variety of factors, such as: Township of Mulmur Asset Management Plan 2025 37 Proposed Levels of Service Analysis - 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 4.1.3 Community Engagement A key element for developing the Township's proposed levels of service must be the voice of the community. While it should be recognized that many factors, such as available funding, staff capacity, and operational priorities, must be considered to ensure realistic and achievable targets for the proposed LOS. To incorporate the priorities of the public, the Township put forth an online community engagement survey. This survey received 29 responses from the current population of 3,571. The questions and results can be seen in Appendix E. As the Township's asset management approach continues to grow and evolve, and as budget and resource limitations become less restrictive, there may be an opportunity to launch a project focused entirely on engaging with the community and gathering input on infrastructure and service priorities. At that point, community feedback could have an even greater influence on shaping LOS goals. 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. Although all three scenarios were considered, the Township adopted a segment-by-segment approach in determining its path forward. In most cases, the baseline condition was maintained, while a 5% increase from the baseline was applied to select segments. Township of Mulmur Asset Management Plan 2025 38 Proposed Levels of Service Analysis 4.2.1 Scenario Development & Selection The Township adopted a practical and data-informed approach to determine its proposed LOS for each segment within the six asset categories. This process ensures that service delivery remains reliable over the long term while also balancing affordability and infrastructure needs To begin, the Township used the current average condition of each asset group (such as roads, buildings, and other municipal infrastructure) as a reference point to help determine appropriate baseline condition targets. However, these current conditions were used as a guide rather than a fixed rule. In some cases, a more consistent and strategic target was applied--for instance, setting a 60% condition target for all Township buildings rather than creating a separate target for each facility. Once these baseline condition targets were confirmed (see Table 12), the Township used the Decision Support (DS) module within the Citywide Asset Management software to model different asset management scenarios over a 50-year period. These scenarios were built to maintain the selected baseline condition as the service level goal and determine the resulting AAR7. Table 12 Baseline Conditions: PLOS 7 For further clarification on Average Annual Requirement (AAR), see section 2.3.5 Average Annual Requirement. Category Segment Baseline Condition Road Network Barriers 50% Paved Roads 50% Road Signs 50% Small Culverts 50% Storm Drains 50% Streetlights 50% Bridges & Structural Culverts Bridges 60% Structural Culverts 60% Facilities Administration Building 60% Arena 60% Township of Mulmur Asset Management Plan 2025 39 Proposed Levels of Service Analysis Category Segment Baseline Condition Fire Hall 60% Gravel Pit Scale House 60% Mansfield Public Washroom 60% Public Works Building 60% Sand Dome 60% Utility Storage 60% Land Improvements Ball Diamond 50% Fencing 50% Multipurpose Pad 50% Outdoor Furnishings 50% Parking Lot 50% Play Structure 50% Trail 50% Wells 50% Machinery & Equipment Attachments 50% Fueling Station 50% Heavy Equipment 50% Medium Equipment 50% Small Equipment 50% Solar Panels 50% Vehicles Heavy Duty 50% Light Duty 50% Water Network Hydrants 50% Municipal Wells 50% Valves & Fittings 50% Water Buildings 50% Township of Mulmur Asset Management Plan 2025 40 Proposed Levels of Service Analysis The DS tool helps predict when assets will need major rehabilitation or replacement. When an asset reaches the point where work is recommended, the software checks whether deferring that work to the following year would cause the overall average condition of all assets in the scenario to fall below the target. If the target would still be met without immediate action, the work is deferred to the following year and the process is repeated. This method reduces unnecessary spending by allowing the Township to postpone work that is not yet critical--without lowering the overall quality of service. In some instances, the AAR may not change from scenario to scenario. This can happen for two reasons: 1. A low number of assets are included in the scenario and therefore there are fewer opportunities for rehabilitation/replacement deferral 2. There is a very low condition threshold for replacement. - Even if the average condition of all assets in the scenario drops below the set target, an activity cannot be performed until the replacement threshold for an individual asset is met. DS will not plan a replacement early. - For example, if the replacement threshold for all assets in a scenario is 0%, even if the overall average condition continues to drop further and further below the target condition each year, until an asset hits a 0% condition it cannot be replaced. To fully explore options and potential impacts, the Township also modeled three alternative scenarios:  A 5% reduction in the average condition target to see how a lower standard might reduce costs or affect service quality  A 5% increase to explore the cost and benefit of delivering a higher service level Category Segment Baseline Condition Water Equipment 50% Water Mains 50% Water Meters 50% Township of Mulmur Asset Management Plan 2025 41 Proposed Levels of Service Analysis  A no-target scenario, where assets are replaced immediately once they reach their end-of-life, with no consideration for overall system condition or available budget. This approach results in the highest annual cost and is generally considered less sustainable These four scenarios--maintaining, lowering (-5%), raising (+5%), or removing the baseline condition target--were compared side by side. They provided insight into how different strategies would affect long-term costs, asset performance, and service reliability. Following this analysis, and after receiving feedback from both Township staff and the community, the most suitable proposed LOS were selected. These reflect a balance between public expectations, financial responsibility, and long-term sustainability. Table 13 provides the AAR for each of the scenarios outlined above. The final selection for each segment is highlighted in green. Township of Mulmur Asset Management Plan 2025 42 Proposed Levels of Service Analysis Table 13 AAR for Scenarios: PLOS Category Segment Average Annual Requirement -5% Condition Maintain Baseline +5% Condition No Target Road Network Barriers $8,109 $8,260 $8,260 $8,343 Paved Roads $335,590 $373,812 $407,846 $423,964 Road Signs $21,234 $21,753 $21,753 $21,970 Small Culverts $93,330 $93,330 $93,330 $103,166 Storm Drains $2,148 $2,148 $2,148 $2,170 Streetlights $5,946 $6,295 $6,649 $7,661 Total $466,357 $505,598 $539,986 $567,274 Bridges & Structural Culverts Bridges $424,408 $429,615 $429,615 $486,069 Structural Culverts $143,493 $143,493 $143,493 $182,200 Total $567,900 $573,107 $573,107 $668,269 Facilities Administration Building $37,279 $37,684 $37,730 $41,520 Arena $181,325 $195,187 $197,123 $172,622 Fire Hall $16,027 $16,027 $16,027 $16,187 Gravel Pit Scale House $8,360 $8,360 $8,360 $8,443 Township of Mulmur Asset Management Plan 2025 43 Proposed Levels of Service Analysis Category Segment Average Annual Requirement -5% Condition Maintain Baseline +5% Condition No Target Mansfield Public Washroom $13,702 $13,702 $13,702 $13,839 Public Works Building $33,402 $33,437 $34,190 $34,532 Sand Dome $45,287 $45,287 $45,287 $49,250 Utility Storage $2,673 $2,673 $2,673 $2,700 Total $338,056 $352,357 $355,092 $339,093 Land Improvements Ball Diamond $3,465 $3,465 $3,465 $3,333 Fencing $3,194 $3,427 $3,484 $3,384 Multipurpose Pad $10,657 $10,657 $10,900 $11,009 Outdoor Furnishings $4,052 $4,402 $4,745 $5,215 Parking Lot $35,901 $35,901 $35,901 $36,260 Play Structure $11,461 $11,461 $11,461 $12,634 Trail $2,451 $2,451 $2,451 $2,476 Wells $3,903 $3,903 $4,014 $3,613 Total $75,085 $75,668 $76,421 $77,924 Machinery & Equipment Attachments $53,029 $54,776 $55,652 $53,782 Fueling Station $5,629 $5,952 $5,952 $5,228 Heavy Equipment $156,971 $156,971 $156,971 $148,138 Township of Mulmur Asset Management Plan 2025 44 Proposed Levels of Service Analysis Category Segment Average Annual Requirement -5% Condition Maintain Baseline +5% Condition No Target Medium Equipment $41,605 $41,605 $41,756 $42,695 Small Equipment $37,541 $39,920 $41,443 $40,884 Solar Panels $12,906 $12,906 $12,906 $14,484 Total $307,681 $312,131 $314,680 $305,210 Vehicles Heavy Duty $132,987 $133,561 $136,730 $119,197 Light Duty $14,202 $15,254 $15,254 $15,672 Total $147,189 $148,815 $151,984 $134,869 Water Network $1,620 $1,691 $1,798 $2,010 Hydrants $10,508 $11,776 $11,776 $12,581 Municipal Wells $12,727 $14,125 $15,454 $22,451 Valves & Fittings $37,370 $38,122 $38,122 $39,287 Water Buildings $17,860 $17,860 $17,860 $18,039 Water Equipment $34,960 $37,515 $41,122 $61,595 Water Mains $3,871 $3,871 $3,871 $3,910 Total $118,915 $124,960 $130,003 $159,872 TOTAL $2,021,184 $2,092,636 $2,141,273 $2,252,512 Township of Mulmur Asset Management Plan 2025 45 Proposed Levels of Service Analysis 4.2.2 Lifecycle Changes The current lifecycle strategy remains appropriate, as it is based on the overall average condition of the Township's assets. No immediate changes to the strategy are necessary. However, to better align with target condition levels, it is recommended to adjust the timing of specific maintenance and renewal activities to follow the 10-year capital requirements as outlined in Appendix B. By scheduling these interventions during optimal periods--when they are most effective and cost-efficient--the Township can enhance asset performance and extend their service life. This proactive approach will allow the Township to maintain high service standards and fiscal responsibility while following the existing strategy. Regular monitoring will ensure that these timing adjustments continue to meet the Township's evolving infrastructure needs. 4.2.3 Affordability/Achievability As the AAR closely corresponds to the Township's current capital budget, the selected proposed LOS are achievable. For a more in-depth breakdown, see Section 13. 4.2.4 Changes to Community and Technical Levels of Service The Township 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 the average condition of assets. Refer to each asset category for more details 4.2.5 Proposed LOS Risks The majority of the proposed LOS are designed to maintain existing--or baseline-- asset conditions. As a result, the implementation of these scenarios does not introduce any new or additional risks to service delivery. The risk profile associated with each asset category remains unchanged. Previously identified risks--such as those related to aging infrastructure and environmental Township of Mulmur Asset Management Plan 2025 46 Proposed Levels of Service Analysis factors--continue to apply under the proposed approach. These risks have already been evaluated and documented as part of the Township's overall asset management planning. By focusing on maintaining current asset conditions rather than improving or reducing service levels, the Township can continue to deliver consistent service without increasing exposure to unforeseen operational or financial risks. This also allows for more predictable long-term planning and resource allocation. Ongoing monitoring and regular updates to the risk register will ensure that any changes in asset performance or external conditions are promptly addressed. Township of Mulmur Asset Management Plan 2025 47 Proposed Levels of Service Analysis Category Analysis: Core Assets Township of Mulmur Asset Management Plan 2025 48 Road Network 5 Road Network The Township's road network has a current replacement cost of $13.6 million, distributed primarily to paved roads. The Township also owns and manages other supporting infrastructure and capital assets, including barriers, road signs, small culverts, storm drains, and streetlights. 5.1 Inventory & Valuation Table 14 summarizes the quantity and current replacement cost of the Township's various road network assets as managed in its primary asset management register, Citywide. Table 14 Detailed Asset Inventory: Road Network 8 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. 9 Gravel roads undergo perpetual operating and maintenance activities. If maintained properly, they can theoretically have a limitless service life. Segment Quantity Unit of Measure Replacement Cost (RC) Primary RC Method AAR8 Barriers 29 Assets $208,569 CPI $8,260 Paved Roads 65.7 KM $8,538,010 Cost per Unit $373,812 Road Signs 725 Assets $219,701 CPI $21,753 Small Culverts 30 Assets $4,126,641 User-Defined $93,330 Storm Drains 1 Assets $108,489 CPI $2,148 Streetlights 186 Assets $383,052 CPI $6,295 Unpaved Roads 193.2 KM Not Planned for Replacement9 TOTAL $13,584,462 Cost per Unit $505,598 Township of Mulmur Asset Management Plan 2025 49 Road Network Figure 18 Portfolio Valuation: Road Network 5.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  The Township's Public Works Department currently conducts annual condition assessments for asphalt roads.  In the future, the Township may consider having these assessments conducted through a Roads Needs Study by an engineering firm, depending on budgeting constraints.  Condition assessments for gravel roads are completed annually by the Township's Public Works department.  Streetlight conditions are determined based on their age and estimated useful life.  Sign condition assessments are occasionally conducted by the Township's insurance agency. However, similar to the Roads Needs Study, the Township may consider developing an internal condition assessment framework, incorporating signs into other asset assessment projects/studies, or increasing the frequency of evaluation by the insurance agency. In this AMP, the following rating criteria is used to determine the current condition of road network assets and forecast future capital requirements: $108k $209k $220k $383k $4.1m $8.5m $2m $4m $6m $8m $10m Storm Drains Barriers Road Signs Streetlights Small Culverts Paved Roads Township of Mulmur Asset Management Plan 2025 50 Road Network Table 15 Condition Ranges: Paved Roads - Road Network Condition Ranges Description Very Good (80% - 100%)  New or recently rehabilitated pavement, with no significant defects.  Smooth surface with no visible cracks, rutting, or deterioration.  Excellent drainage and stable shoulders.  Minimal maintenance required beyond routine inspections.  Long expected service life with preventive maintenance. Good (60% - 80%)  Minor cracking and minimal surface distress, with good ride quality.  No significant rutting or potholes.  Drainage functioning well, with stable shoulders and ditches.  Periodic crack sealing or surface treatment can maintain condition.  No major rehabilitation required in the near future. Fair (40% - 60%)  Moderate cracking, surface wear, and minor rutting, but road remains serviceable.  Some patched areas and minor potholes, but no immediate safety risks.  Drainage mostly functional, with some minor erosion or edge distress.  Surface treatments or overlays needed to extend pavement life.  Routine maintenance required to slow further deterioration. Township of Mulmur Asset Management Plan 2025 51 Road Network As illustrated in Figure 19, the majority of the Township's road network asset categories are in fair or better condition; however, the majority of the road signs are in poor condition. Condition Ranges Description Poor (20% - 40%)  Major cracking and moderate to severe rutting, affecting ride quality.  Widespread patching and pothole formation, requiring frequent repairs.  Drainage issues and edge failures, leading to erosion and shoulder deterioration.  Structural integrity weakened, with potential load restrictions.  Requires resurfacing or deep rehabilitation to restore function. Very Poor (0% -20%)  Severe pavement failures, including large potholes, deep rutting, and widespread alligator cracking.  Significant surface distortion and heaving, making travel unsafe.  Extensive base failure, with visible pumping, settlement, and subgrade exposure.  Frequent maintenance required, but rehabilitation is no longer cost-effective.  Requires full-depth reconstruction or major rehabilitation. Township of Mulmur Asset Management Plan 2025 52 Road Network Figure 19 Asset Condition: Road Network Table 70 summarizes the replacement cost-weighted condition of the Township's road network portfolio. Based primarily on assessed condition data, 71% of road network portfolio is in fair or better condition, with the remaining 29% in poor or lower 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. Table 16 Asset Condition: Road Network by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition10 Barriers $62,194 30% $146,375 70% Fair (48%) Paved Roads $2,788,385 33% $5,749,625 67% Fair (54%) Road Signs $159,158 72% $60,543 28% Poor (38%) Small Culverts $945,953 23% $3,180,688 77% Fair (56%) Storm Drains - 0% $108,489 100% Good (74%) Streetlights - 0% $383,052 100% Good (77%) TOTAL $3,955,690 29% $9,628,772 71% Fair (55%) 10 Weighted by replacement cost. $198k $4k $14k $1.6m $15k $115k $108k $2.7m $47k $2.1m $19k $70k $446k $2.0m $112k $433k $159k $2.2m $59k $513k $633k $4k 0% 20% 40% 60% 80% 100% Streetlights Storm Drains Small Culverts Road Signs Paved Roads Barriers Very Good Good Fair Poor Very Poor Township of Mulmur Asset Management Plan 2025 53 Road Network Condition data was available for 59% of road network, based on replacement costs; age was used to estimate condition for the remaining 41% of assets. 5.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential long- term replacement spikes. Table 17 summarizes and Figure 20 illustrates the average current age of each asset type and its estimated useful life. Both values are weighted by the replacement cost of individual assets. Table 17 Detailed Asset Age: Road Network Age analysis shows that the majority of paved roads have entered the latter stages of their expected useful life, with an average age of 16.8 years against a design life of approximately 20 years. Barriers are also in the latter stages of their useful lives while road signs continue to remain in service well beyond their design life. Small Segment Weighted Average EUL Weighted Average Age Barriers 25.0 18.5 Paved Roads 19.8 16.8 Road Signs 10.0 15.9 Small Culverts 40.0 17.5 Storm Drains 50.0 13.0 Streetlights 50.0 29.2 Township of Mulmur Asset Management Plan 2025 54 Road Network culverts and streetlights are around the midpoint of their design lives while storm drains are in the earlier stages. Figure 20 Estimated Useful Life vs. Asset Age: Road Network Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. 5.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's road network assets are performing as expected and meeting the needs of residents, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. The following table outlines the Township's current lifecycle management strategy for road network assets. 18.5 16.8 15.9 17.5 13 29.2 25 19.8 10 40 50 50 0 20 40 60 Barriers Paved Roads Road Signs Small Culverts Storm Drains Streetlights Number of Years Weighted Average Age Weighted Average EUL Township of Mulmur Asset Management Plan 2025 55 Road Network Table 18 Lifecycle Management Strategy: Road Network Activity Type Description of Current Strategy Maintenance Cold patching of asphalt roads is carried out as needed, based on visual inspections and Route Patrols conducted by our Public Works Department. Line painting on all asphalt roads within the Township is completed annually in the fall. Asphalt roads are visually inspected and undergo route patrols as per Minimum Maintenance Standards. Based on the findings of these inspections, maintenance activities are performed on an as- needed basis. Maintenance activities for gravel roads include re-stoning each gravel road every four years, applying calcium dust suppressant annually, and performing ditching maintenance on an annual rotation throughout the Township. The Township follows a four-year schedule where each year, a quarter of the Township's gravel roads are re-stoned. This ensures that each gravel road is re-stoned every four years. Maintenance on lights and signs is performed as needed, directed by the Public Works Department, which also handles resident concerns via the service request portal. Pathways are regularly cleared of snow and debris by the Public Works Department and seasonal contractors. Rehabilitation Milling and paving is conducted every 15 years to a depth of 60mm. After three mill and pave events, a complete road surface and road base reconstruction is carried out. Replacement Rehabilitation and replacement of road assets are prioritized based on an analysis of the type of road, remaining service life, condition rating, traffic volume, and location. Streetlights, bulbs, and signs are updated or replaced as needed through route patrols and residents. Signs are purchased annually, and an inventory of replacement signs are stored within the Public Works building. Township of Mulmur Asset Management Plan 2025 56 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 Township's road network. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register. Figure 21 Forecasted Capital Replacement Needs: Road Network 2025-2074 The Township's average annual requirements (red dotted line) total $505,598 for all assets in the road network category. Although actual spending may fluctuate $506k $2.6m $2.1m $2.0m $2.2m $2.7m $4.5m $2.3m $2.0m $2.6m $2.2m $0 $1m $2m $3m $4m $5m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Barriers Paved Roads Road Signs Small Culverts Storm Drains Streetlights Annual Requirement Total Township of Mulmur Asset Management Plan 2025 57 Road Network 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 indicates that capital needs remain relatively stable, with a range from $2.0 million to $2.7 million, for each five-year grouping throughout this timeframe. There is an exception from 2050-2054 with a spike to $4.5 million. These projections are based on asset replacement costs, age analysis, and condition data when available. They are designed to provide a long-term, portfolio- level overview of capital needs and should be used to support improved financial planning over several decades. Often, the magnitude of replacement needs is substantially higher than most municipalities can afford to fund. In addition, most assets may not need to be replaced. However, quantifying and monitoring these spikes is essential for long- term financial planning, including establishing dedicated reserves. Regular 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. 5.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 5.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for the road network assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider Township of Mulmur Asset Management Plan 2025 58 Road Network integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. Figure 22 Risk Matrix: Road Network The following risk ratings are first shown for the overall category and then by segment for the road network assets. Figure 23 Risk Rating Ranges: Road Network 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $2,440,025 $546,672 $656,637 $4,789,693 $5,151,436 (18%) (4%) (5%) (35%) (38%) Township of Mulmur Asset Management Plan 2025 59 Road Network Table 19 Probability of Failure, Consequence of Failure, Risk Ratings: Road Network by Segment Overall, the average risk rating for road network assets is 11.82, which is considered High. The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 5.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Infrastructure Reinvestment The current level of financial reinvestment does not sufficiently address maintenance and capital rehabilitation requirements to ensure roads remain in an adequate state of repair and achieve their intended service life. The financial strategy in this report addresses the extent of this underfunding. Asset Category Probability of Failure Consequence of Failure Risk Rating Barriers 3.08 / 5 1.87 / 5 5.89 / 25 Paved Roads 2.78 / 5 4.55 / 5 13.24 / 25 Road Signs 3.39 / 5 1.21 / 5 3.81 / 25 Small Culverts 2.69 / 5 4.29 / 5 10.65 / 25 Storm Drains 2 / 5 4 / 5 8 / 25 Streetlights 1.66 / 5 1.08 / 5 1.75 / 25 TOTAL 2.73 / 5 4.27 / 5 11.82 / 25 Township of Mulmur Asset Management Plan 2025 60 Road Network Organizational Resources The Township has a large inventory of roads which require regular maintenance and assessment. Staff capacity and expertise are sometimes insufficient to deploy optimal maintenance and assessment strategies. Climate Change & Extreme Weather Events An increase in freeze/thaw cycles has been impacting the Township's roads. This causes the accelerated deterioration of road surfaces leading to a heightened need for maintenance and rehabilitation as well as reducing the useful life of the roads. 5.7 Current Levels of Service The tables that follow summarize the Township's current levels of service with respect to prescribed KPIs under Ontario Regulation 588/17, as well as any additional performance measures that the Township selected for this AMP. 5.7.1 Community Levels of Service Table 20 O. Reg. 588/17 Community Levels of Service: Road Network Service Attribute Qualitative Description Current LOS (2024) Scope Description, which may include maps, of the road network in the Township and its level of connectivity See Appendix C Quality Description or images that illustrate the different levels of road class pavement condition The Township conducts regular visual condition assessment for all Paved and Gravel Roads. Every road receives a condition rating (0-100). Township of Mulmur Asset Management Plan 2025 61 Road Network Service Attribute Qualitative Description Current LOS (2024) 0-20 - Very Poor. Road requires immediate reconstruction within the next 1-2 years. 20-59 - Poor/Fair. Road requires major rehabilitation and/or replacement in the next 3-6 years. 60-100 - Good/Very Good - Roads are functioning as required. Preventative maintenance is recommended. 5.7.2 Technical Levels of Service Table 21 O. Reg. 588/17 Technical Levels of Service: Road Network 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 / 287 km2 Lane-km of collector roads (MMS classes 3 and 4) per land area (km/km2) 443.97 km / 287 km2 Lane-km of local roads (MMS classes 5 and 6) per land area (km/km2) 71.06 km / 287 km2 Quality Average pavement condition index for paved roads in the Township 54% Average surface condition for unpaved roads in the Township (e.g. excellent, good, fair, poor) Good Performance % of road network assets in fair or better condition 71% Township of Mulmur Asset Management Plan 2025 62 Road Network Service Attribute Technical Metric Current LOS (2024) % of road network assets in poor or lower condition 29% Actual annual capital budget : average required annual capital requirements ($343,000 : $506,000) (0.68 : 1) 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 (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 22 outlines the proposed LOS scenarios that were analyzed for the road network. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Table 22 Proposed LOS: Road Network Segment Average Annual Requirement Selection -5% Condition (45%) Maintain Baseline (50%) +5% Condition (55%) No Target Barriers $8,109 $8,260 $8,260 $8,343 Maintain Paved Roads $335,590 $373,812 $407,846 $423,964 Maintain Road Signs $21,234 $21,753 $21,753 $21,970 Maintain Small Culverts $93,330 $93,330 $93,330 $103,166 Maintain Storm Drains $2,148 $2,148 $2,148 $2,170 Maintain Streetlights $5,946 $6,295 $6,649 $7,661 Maintain TOTAL $466,357 $505,598 $539,986 $567,274 $505,598 Township of Mulmur Asset Management Plan 2025 63 Bridges & Structural Culverts 6 Bridges & Structural Culverts The Township's transportation network includes bridges and structural culverts, with a current replacement cost of $45.1 million. 6.1 Inventory & Valuation Table 23 summarizes the quantity and current replacement cost of bridges and structural culverts. The Township owns and manages one bridge and two structural culverts. Table 23 Detailed Asset Inventory: Bridges & Structural Culverts Figure 24 Portfolio Valuation: Bridges & Structural Culverts 11 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. $13.3m $31.8m $10m $20m $30m $40m Structural Culverts Bridges Segment Quantity Unit of Measure Replacement Cost (RC) Primary RC Method AAR11 Bridges 28 Assets $31,795,000 User-Defined $429,615 Structural Culverts 19 Assets $13,323,373 User-Defined $143,493 TOTAL $45,118,373 User-Defined $573,107 Township of Mulmur Asset Management Plan 2025 64 Bridges & Structural Culverts 6.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  Condition assessments for all bridges and structural culverts with a span of over 3 meters within the Township are conducted biennially, following the guidelines of the Ontario Structure Inspection Manual (OSIM)  Bridges and structural culverts spanning less than 3 meters are inspected annually during internal road patrols In this AMP, the following rating criteria is used to determine the current condition of bridge and structural culvert assets and forecast future capital requirements: Table 24 Condition Ranges: Bridges & Structural Culverts Condition Ranges Description Very Good (80% - 100%)  New or recently rehabilitated structure, with no significant defects.  Deck, beams, bearings, and abutments in excellent condition, with no visible wear.  Efficient drainage, minimal surface wear, and no corrosion issues.  Meets or exceeds all safety and design standards.  Minimal maintenance required beyond routine inspections. Good (60% - 80%)  Minor surface wear and some cosmetic deterioration, such as light scaling or superficial cracking.  Deck, joints, and bearings in good working condition, with no major structural concerns.  Minimal corrosion or wear on steel and concrete elements.  Routine inspections and preventive maintenance needed to extend lifespan.  No major rehabilitation required in the near future. Township of Mulmur Asset Management Plan 2025 65 Bridges & Structural Culverts Condition Ranges Description Fair (40% - 60%)  Moderate wear and surface deterioration, including minor cracking, spalling, and some exposed reinforcing steel.  Deck and joints in functional condition, but requiring increased maintenance.  Bearings, beams, and abutments showing early signs of corrosion or wear.  No immediate safety concerns, but planning for future rehabilitation needed.  Regular maintenance and potential repairs required to maintain serviceability. Poor (20% - 40%)  Advanced deterioration of structural components, with noticeable concrete scaling, cracking, or steel corrosion.  Deck, beams, or bearings showing significant wear, affecting bridge performance.  Localized section loss on steel or concrete elements, requiring close monitoring.  Possible minor load restrictions, but structure remains functional.  Major rehabilitation or strengthening required in the near term. Very Poor (0% -20%)  Severe structural deterioration, including major section loss, deep cracking, and exposed or corroded reinforcing steel.  Significant deck and beam damage, with failing expansion joints, delaminated concrete, and spalling.  Major safety concerns, including load restrictions or risk of failure.  Frequent water leakage and erosion, undermining abutments or footings.  Immediate rehabilitation or full replacement required. Township of Mulmur Asset Management Plan 2025 66 Bridges & Structural Culverts Figure 25 summarizes the replacement cost-weighted condition of the Township's bridges and structural culverts based on in-field condition assessments from the most recent Ontario Structures Inspection Manual (OSIM) report. Based on these assessments, 92% of bridges and structural culverts are in fair or better condition with the remaining 8% in poor or lower 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 25 Asset Condition: Bridges & Structural Culverts Table 25 Asset Condition: Bridges & Structural Culverts by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition12 Bridges $2,149,300 7% $29,645,700 93% Good (72%) Structural Culverts $1,275,104 10% $12,048,269 90% Good (62%) TOTAL $3,424,404 8% $41,693,969 92% Good (69%) 6.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. 12 Weighted by replacement cost. $2.2m $9.6m $6.9m $14.6m $2.9m $5.5m $154k $1.4m $1.1m $741k 0% 20% 40% 60% 80% 100% Structural Culverts Bridges Very Good Good Fair Poor Very Poor Township of Mulmur Asset Management Plan 2025 67 Bridges & Structural Culverts In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. Table 26 summarizes and Figure 26 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. Table 26 Detailed Asset Age: Bridges & Structural Culverts Age analysis reveals that on average, bridges have consumed the majority of their estimated useful life, with an average age of 50.9 years against an average EUL of 67.7 years. On average, structural culverts are about halfway through their design life, with an average age of 35.2 years, against an average EUL of 73.7 years. Figure 26 Estimated Useful Life vs. Asset Age: Bridges & Structural Culverts Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in 50.9 35.2 67.7 73.7 0 20 40 60 80 Bridges Structural Culverts Number of Years Weighted Average Age Weighted Average EUL Segment Weighted Average EUL Weighted Average Age Bridges 67.7 50.9 Structural Culverts 73.7 35.2 Township of Mulmur Asset Management Plan 2025 68 Bridges & Structural Culverts good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. OSIM assessments should continue to be used in conjunction with age and asset criticality to prioritize capital and maintenance expenditures. 6.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's bridges and structural culverts assets are performing as expected and meeting the needs of customers, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. The following table outlines the Township's current lifecycle management strategy for bridges and structural culverts assets. Table 27 Lifecycle Management Strategy: Bridges & Structural Culverts Activity Type Description of Current Strategy Maintenance Routine maintenance activities include regular sweeping and washing of bridge decks. Maintenance activities are performed annually, typically in the spring. Rehabilitation / Replacement All lifecycle activities are driven by the results of mandated structural inspections completed according to the Ontario Structure Inspection Manual (OSIM). Minor rehabilitations include concrete repair patchwork, waterproofing, localized repairs, etc. Major rehabilitation and replacement activities include the work on the barrier, deck, bridge widening, and structural beam replacement. Township of Mulmur Asset Management Plan 2025 69 Bridges & Structural Culverts 6.5 Forecasted Long-Term Replacement Needs Figure 27 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and replacement requirements for the Township's bridges and structural culverts. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register The Township's average annual requirements (red dotted line) for bridges and structural culverts total $24,020. Although actual spending may fluctuate substantially from year to year, this figure is a useful benchmark value for annual capital expenditure targets (or allocations to reserves) to ensure projects are not deferred and replacement needs are met as they arise. Figure 27 Forecasted Capital Replacement Needs: Bridges & Structural Culverts 2025-2074 Although no major replacements are anticipated for the next 5 years, capital needs incline to a spike of $2.6 million in 2035-2039 with a subsequent drop. From there, a steady incline occurs until a peak of $6.4 million in 2070-2074. These projections $573k $0 $834k $2.6m $332k $318k $884k $1.6m $3.4m $3.5m $6.4m $0 $2m $4m $6m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Bridges Structural Culverts Annual Requirement Total Township of Mulmur Asset Management Plan 2025 70 Bridges & Structural Culverts and estimates are based on asset replacement costs, age analysis, and condition data. They are designed to provide a long-term, portfolio-level overview of capital needs and should be used to support improved financial planning over several decades. Often, the magnitude of replacement needs is substantially higher than most municipalities can afford to fund. In addition, most assets may not need to be replaced. However, quantifying and monitoring these spikes is essential for long- term financial planning, including establishing dedicated reserves. OSIM condition assessments and a robust risk framework will ensure that high-criticality assets receive proper and timely lifecycle intervention, including replacements. A summary of the 10-year replacement forecast can be found in Appendix B. 6.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 6.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for the bridges and structural culverts assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- Township of Mulmur Asset Management Plan 2025 71 Bridges & Structural Culverts specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. Figure 28 Risk Matrix: Bridges & Structural Culverts The following risk ratings are first shown for the overall category and then by segment for the bridges and structural culverts assets. Figure 29 Risk Rating Ranges: Bridges & Structural Culverts 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $24,638,473 $16,059,300 $3,395,200 $1,025,400 - (55%) (36%) (8%) (2%) (0%) Overall, the average risk rating for bridges and structural culverts is 4.5 as shown in Table 28, which is considered Very Low. Township of Mulmur Asset Management Plan 2025 72 Bridges & Structural Culverts Table 28 Probability of Failure, Consequence of Failure, Risk Ratings: Bridges & Structural Culverts by Segment 6.6.2 Qualitative Risk In addition to asset level risk, the Township may also face risk associated with not executing key lifecycle activities, including repairs, rehabilitation, and replacement of critical assets. These include:  Missed opportunities for cost savings and increases in lifecycle costs  Deferral of vital projects, or further lending and borrowing  Accelerated asset deterioration and premature failure, which may lead to public health and safety hazards, and disruption of services to the Township's residential and commercial base  A decline in public satisfaction with the Township's service standards and the resulting reputational damage  Bridges are inherently vital to the Township's transportation infrastructure, and their failures can disconnect communities, lead to public health and safety incidents, and can impede the efficient flow of residential and commercial traffic An asset's criticality rating, determined by the nature and magnitude of the consequences of its potential failure should be used to prioritize projects, particularly lifecycle management strategies. Using risk in conjunction with levels of service, and the recommended workplans in OSIM inspections, can assist in optimizing limited funds. The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Asset Category Probability of Failure Consequence of Failure Risk Rating Bridges 2.1 / 5 2.4 / 5 4.3 / 25 Structural Culverts 2.0 / 5 2.6 / 5 5.0 / 25 TOTAL 2.0 / 5 2.4 / 5 4.5 / 25 Township of Mulmur Asset Management Plan 2025 73 Bridges & Structural Culverts Climate Change & Extreme Weather Events Washouts, steep slopes, high banks, and flooding cause damage to multiple components of the Township's bridges. The rising levels of freshwater and the increased frequency and intensity of precipitation events are likely to increase the deterioration of bridge components. Future bridge and structural culvert designs may need to consider upsizing in anticipation of handling bigger storm events. Over time, this risk is expected to become more impactful. Existing infrastructure may not be sufficiently sized to manage these conditions and may eventually require replacement. Organizational Resources The Township has a large inventory of bridges that require regular maintenance and assessment. Staff capacity and expertise are sometimes challenged to deploy optimal maintenance and assessment strategies. 6.7 Current Levels of Service The tables that follow summarize the Township's current levels of service with respect to prescribed KPIs under Ontario Regulation 588/17 as well as any additional performance measures that the Township has selected for this AMP. 6.7.1 Community Levels of Service Table 29 O. Reg. 588/17 Community Levels of Service: Bridges & Structural Culverts Service Attribute Qualitative Description Current LOS (2024) Scope Description of the traffic that is supported by Township bridges (e.g., heavy transport vehicles, Bridges and structural culverts are a key component of the municipal transportation network. None of the Township's structures currently have loading or dimensional restrictions meaning that most Township of Mulmur Asset Management Plan 2025 74 Bridges & Structural Culverts Service Attribute Qualitative Description Current LOS (2024) motor vehicles, emergency vehicles, pedestrians, cyclists) types of vehicles, including heavy transport, emergency vehicles, and cyclists can cross them without restriction. Quality Description or images of the condition of bridges & culverts and how this would affect use of the bridges & culverts Bridges and structural culverts receive a bridge condition index (BCI) during OSIM inspections. BCI values range from 0 to 100 and are broken into the following ranges: 70-100 BCI: Considered to be in good/excellent condition and only routine maintenance is recommended. 50-70 BCI: Considered to be in fair condition and rehabilitation is recommended within the next 5 years. <50 BCI: Considered to be in poor/very poor condition with imminent replacement required in the next 1-3 years. 6.7.2 Technical Levels of Service Table 30 O. Reg. 588/17 Technical Levels of Service: Bridges & Structural Culverts Service Attribute Technical Metric Current LOS (2024) Scope % of bridges in the Township with loading or dimensional restrictions 0% Quality Average bridge condition index value for bridges in the Township Good (72%) Average bridge condition index value for structural culverts in the Township Good (62%) Performance % of assets in fair or better condition 92% Township of Mulmur Asset Management Plan 2025 75 Bridges & Structural Culverts Service Attribute Technical Metric Current LOS (2024) % of assets in poor or lower condition 8% Actual annual capital budget : average required annual capital requirements $510,000 : $573,000 (0.89 : 1) 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 (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 31 outlines the proposed LOS scenarios that were analyzed for bridges and structural culverts. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Table 31 Proposed LOS: Bridges & Structural Culverts Segment Average Annual Requirement Selection -5% Condition (55%) Maintain Baseline (60%) +5% Condition (65%) No Target Bridges $424,408 $429,615 $429,615 $486,069 +5% Condition Structural Culverts $143,493 $143,493 $143,493 $182,200 +5% Condition TOTAL $567,900 $573,107 $573,107 $668,269 $573,107 Township of Mulmur Asset Management Plan 2025 76 Water Network 7 Water Network The Township's water network includes hydrants, municipal wells, valves and fittings, water buildings, water equipment, water mains, and water meters with a current replacement cost of $10.8 million. 7.1 Inventory & Valuation Table 32 summarizes the quantity and current replacement cost of the water network. Table 32 Detailed Asset Inventory: Water Network 13 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. Segment Quantity Unit of Measure Replacement Cost (RC) Primary RC Method AAR13 Hydrants 22 Assets $90,526 Cost per Unit $1,691 Municipal Wells 7 Assets $391,618 User-Defined $11,776 Valves & Fittings 385 Assets $2,059,314 CPI $14,125 Water Buildings 7 Assets $1,855,487 User-Defined $38,122 Water Equipment 3 Assets $186,277 CPI $17,860 Water Mains 8.8 KM $6,159,470 Cost per Unit $37,515 Water Meters 307 Assets $78,190 Cost per Unit $3,871 TOTAL $10,820,882 Cost per Unit $124,960 Township of Mulmur Asset Management Plan 2025 77 Water Network Figure 30 Portfolio Valuation: Water Network 7.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  There is currently no program in place for the condition assessment of any water network assets  In the future, the Township may consider performing a study or developing a condition assessment framework to assess all existing water meters to improve condition accuracy  As the Township expands its water system to accommodate new residential developments, it may also develop more comprehensive condition assessment strategies In this AMP, the following rating criteria is used to determine the current condition of water network assets and forecast future capital requirements: $78k $91k $186k $392k $1.9m $2.1m $6.2m $1m $2m $3m $4m $5m $6m Water Meters Hydrants Water Equipment Municipal Wells Water Buildings Valves & Fittings Water Mains Township of Mulmur Asset Management Plan 2025 78 Water Network Table 33 Condition Ranges: Water Network Condition Ranges Description Very Good (90 - 100)  New or recently upgraded infrastructure, with no defects or performance issues.  Highly efficient system, with minimal water loss and strong pressure throughout the network.  Pipes, pumps, and treatment facilities in excellent condition, requiring only routine inspections.  Long-term sustainability and resilience, with no major capital investments needed in the near future. Good (70 - 90)  Reliable water supply with minimal leaks or service disruptions.  Well-maintained infrastructure, with pipes and components in good working condition.  Consistent water pressure and flow, meeting demand efficiently.  Routine maintenance and minor upgrades are sufficient to maintain performance. Fair (60 - 70)  Some leaks or minor breaks, but overall system remains functional.  Aging pipes and components showing signs of wear but still providing acceptable service.  Moderate water pressure and flow, though occasional issues may arise during peak demand.  Regular maintenance required, and planning for future upgrades or replacements is needed. Poor (40 - 60)  Significant leaks or breaks occurring regularly, leading to noticeable water loss. Township of Mulmur Asset Management Plan 2025 79 Water Network As illustrated in Figure 31 below, the majority of the Township's water network is in fair or better condition. Condition Ranges Description  Aging infrastructure with corroded or weakened pipes, increasing the risk of failure.  Reduced water pressure and occasional service interruptions in some areas.  High maintenance costs due to frequent repairs; sections of the network may need replacement soon. Very Poor (0 - 40)  Frequent and severe leaks or breaks, causing major water loss and service disruptions.  High risk of contamination due to corroded pipes, failing joints, or outdated materials.  Inadequate pressure and flow, leading to unreliable service for residents and businesses.  Requires emergency repairs and imminent replacement of major sections to ensure public health and safety. Township of Mulmur Asset Management Plan 2025 80 Water Network Figure 31 Asset Condition: Water Network Table 34 summarizes the replacement cost-weighted condition of the Township's water network portfolio. Based primarily on age, 96% of water network assets are in fair or better condition, with the remaining 4% in poor or lower condition. Condition data was available for 13% of the water network, based on replacement costs; age was used to estimate condition for the remaining 87% of assets. Table 34 Asset Condition: Water Network by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition14 Hydrants - 0% $90,526 100% Good (71%) Municipal Wells $9,364 2% $382,254 98% Good (70%) Valves & Fittings $51,145 2% $2,008,169 98% Very Good (81%) Water Buildings $94,953 5% $1,760,534 95% Good (64%) Water Equipment $179,735 96% $6,542 4% Poor (31%) 14 Weighted by replacement cost. $24k $6.2m $7k $2.0m $150k $15k $1.5m $32k $182k $76k $229k $50k $173k $95k $51k $9k $53k $6k 0% 20% 40% 60% 80% 100% Water Meters Water Mains Water Equipment Water Buildings Valves & Fittings Municipal Wells Hydrants Very Good Good Fair Poor Very Poor Township of Mulmur Asset Management Plan 2025 81 Water Network Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition14 Water Mains - 0% $6,159,470 100% Very Good (83%) Water Meters $53,550 68% $24,640 32% Fair (44%) TOTAL $388,747 4% $10,432,135 96% Good (78%) 7.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. Table 35 summarizes and Figure 32 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. Table 35 Detailed Asset Age: Water Network Segment Weighted Average EUL Weighted Average Age Hydrants 46.7 14.4 Municipal Wells 36.3 15.6 Valves & Fittings 97.4 17.2 Water Buildings 54.0 19.0 Water Equipment 13.2 18.9 Water Mains 100.0 17.5 Township of Mulmur Asset Management Plan 2025 82 Water Network Figure 32 Estimated Useful Life vs. Asset Age: Water Network Age analysis reveals that on average, the majority asset segments have more than half of their estimated useful life remaining. Water equipment, however, has surpassed its average estimated lifespan of 13.2 years with an average age of 18.9 years. Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. 14.4 15.6 17.2 19 18.9 17.5 11.3 46.7 36.3 97.4 54 13.2 100 20 0 20 40 60 80 100 120 Hydrants Municipal Wells Valves & Fittings Water Buildings Water Equipment Water Mains Water Meters Number of Years Weighted Average Age Weighted Average EUL Segment Weighted Average EUL Weighted Average Age Water Meters 20.0 11.3 Township of Mulmur Asset Management Plan 2025 83 Water Network 7.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's water network assets are performing as expected and meeting the needs of customers, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. The following table outlines the Township's current lifecycle management strategy for water network assets. Table 36 Lifecycle Management Strategy: Water Network Activity Type Description of Current Strategy Maintenance Well casings are inspected in the spring and fall. Flow meters are calibrated every 12 months. Flow control valves are serviced every 60 months or as necessary. Chlorine analyzers are calibrated three times per week. Computers and SCADA systems are checked annually or as needed. Heating and lighting systems are serviced annually or as needed. Generators are serviced every 24 months or as necessary. Generators are tested monthly, and results are recorded. Hydrants are serviced and flushed annually. Watermains are serviced and flushed in the spring and fall. Valves are operated every 36 months. Rehabilitation / Replacement Chemical pumps are re-built every 24 months or as necessary. Chemical tubing is replaced every 12 months or as necessary. Township of Mulmur Asset Management Plan 2025 84 Water Network Activity Type Description of Current Strategy Chemical check valves are replaced every 6 months or as necessary. Rehabilitation and replacement activities are determined by the asset's useful life, the presence of defects identified during an inspection, type of function, and asset failure and are typically proactive in nature due to regular monitoring and inspection schedules. 7.5 Forecasted Long-Term Replacement Needs Figure 33 illustrates the cyclical short-, medium- and long-term infrastructure rehabilitation and replacement requirements for the Township's water network. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register. The Township's average annual requirements (red dotted line) for the water network total $124,960. 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 forecasted capital requirements fluctuate with peaks and valleys. The highest peaks occur in 2055-2059 with $1.3 million and 2060-2064 with just under $1.0 million. These projections and estimates are based on asset replacement costs, age analysis, and condition data. They are designed to provide a long-term, portfolio- level overview of capital needs and should be used to support improved financial planning over several decades. Township of Mulmur Asset Management Plan 2025 85 Water Network Figure 33 Forecasted Capital Replacement Needs: Water Network 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. OSIM 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. $125k $202k $118k $256k $34k $419k $61k $1.3m $938k $207k $130k $0 $200k $400k $600k $800k $1.0m $1.2m $1.4m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Hydrants Municipal Wells Valves & Fittings Water Buildings Water Equipment Water Mains Water Meters Annual Requirement Total Township of Mulmur Asset Management Plan 2025 86 Water Network 7.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 7.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for the water network assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. Figure 34 Risk Matrix: Water Network The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. Township of Mulmur Asset Management Plan 2025 87 Water Network These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. The following risk ratings are first shown for the overall category and then by segment for the water network assets. Figure 35 Risk Rating Ranges: Water Network 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $8,490,842 $61,960 $132,915 $1,665,763 $469,402 (78%) (<1%) (1%) (15%) (4%) Table 37 Probability of Failure, Consequence of Failure, Risk Ratings: Water Network by Segment Overall, the average risk rating for the water network is 5.16, which is considered Low. The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. Asset Category Probability of Failure Consequence of Failure Risk Rating Hydrants 1.84 / 5 1.16 / 5 2 / 25 Municipal Wells 1.79 / 5 3.77 / 5 6.86 / 25 Valves & Fittings 1.09 / 5 1.96 / 5 2.05 / 25 Water Buildings 2.23 / 5 4.91 / 5 10.8 / 25 Water Equipment 3.93 / 5 4.79 / 5 19.03 / 25 Water Mains 1 / 5 4.03 / 5 4.03 / 25 Water Meters 3.74 / 5 1.63 / 5 4.36 / 25 TOTAL 1.33 / 5 3.75 / 5 5.16 / 25 Township of Mulmur Asset Management Plan 2025 88 Water Network 7.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Assessed Condition Data Inspecting watermains presents greater challenges compared to sanitary and storm sewer mains, where CCTV camera inspections are feasible. Currently, staff rely on age-based estimates to project when pipes may require replacement. However, this method introduces some uncertainty regarding its effectiveness in assessing the current condition of watermains. Enhancing the accuracy and reliability of asset data and information will enable staff to develop more precise, data-driven strategies to address infrastructure needs with greater confidence. 7.7 Current Levels of Service The tables that follow summarize the Township's current levels of service with respect to prescribed KPIs under Ontario Regulation 588/17 as well as any additional performance measures that the Township has selected for this AMP. Township of Mulmur Asset Management Plan 2025 89 Water Network 7.7.1 Community Levels of Service Table 38 O. Reg. 588/17 Community Levels of Service: Water Network Service Attribute Qualitative Description Current LOS (2024) Scope Description, which may include maps, of the user groups or areas of the municipality that are connected to the municipal water system The Mansfield Water System currently serves 153 service connections within Mulmur Township and is classified as a large municipal residential water system. The user groups that are connected to the water system have adequate fire flow protection. Description, which may include maps, of the user groups or areas of the municipality that have fire flow Quality Description of boil water advisories and service interruptions The Township experienced no boil water advisories in 2024. However, water service interruptions may occur due to main breaks, maintenance activities or reconstruction projects. Staff attend to these interruptions in a timely manner, when possible. Township of Mulmur Asset Management Plan 2025 90 Water Network 7.7.2 Technical Levels of Service Table 39 O. Reg. 588/17 Technical Levels of Service: Water Network Service Attribute Technical Metric Current LOS (2024) Scope % of properties connected to the municipal water system 9.1% % of properties where fire flow is available 9.1%15 of all properties 100% of properties connected to water network 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 Average condition of water network assets Good (78%) % of assets in fair or better condition 96% % of assets in poor or lower condition 4% Actual annual capital budget : average required annual capital requirements $39,000 : $125,000 (0.31 : 1) 15 Fire flow is currently available only to properties connected to the Township's water distribution network through hydrants. However, pumper trucks are equipped with onboard water storage and the necessary equipment to draw water from nearby sources when required. Township of Mulmur Asset Management Plan 2025 91 Water Network 7.8 Proposed Levels of Service As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels of service (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 40 outlines the proposed LOS scenarios that were analyzed for the water network. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Table 40 Proposed LOS: Water Network Segment Average Annual Requirement Selection -5% Condition (45%) Maintain Baseline (50%) +5% Condition (55%) No Target Hydrants $1,620 $1,691 $1,798 $2,010 Maintain Municipal Wells $10,508 $11,776 $11,776 $12,581 Maintain Valves & Fittings $12,727 $14,125 $15,454 $22,451 Maintain Water Buildings $37,370 $38,122 $38,122 $39,287 Maintain Water Equipment $17,860 $17,860 $17,860 $18,039 Maintain Water Mains $34,960 $37,515 $41,122 $61,595 Maintain Water Meters $3,871 $3,871 $3,871 $3,910 Maintain TOTAL $118,915 $124,960 $130,003 $159,872 $124,960 Township of Mulmur Asset Management Plan 2025 92 Water Network Category Analysis: Non-Core Assets Township of Mulmur Asset Management Plan 2025 93 Facilities 8 Facilities The Township owns and maintains several facilities that provide key services to the community. The total current replacement cost of facilities is $22.0 million. 8.1 Inventory & Valuation Table 41 summarizes the quantity and current replacement cost of all facilities assets available in the Township's asset register. Table 41 Detailed Asset Inventory: Facilities 16 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. Segment Quantity Unit of Measure Replacement Cost Primary RC Method AAR16 Administration Building 1 Assets $3,054,209 User-Defined $37,684 Arena 1 Assets $12,050,336 User-Defined $197,123 Fire Hall 1 Assets $748,897 CPI $16,027 Gravel Pit Scale House 1 Assets $417,059 User-Defined $8,360 Mansfield Public Washroom 1 Assets $676,973 User-Defined $13,702 Public Works Building 1 Assets $2,826,107 User-Defined $33,437 Sand Dome 1 Assets $2,128,000 User-Defined $45,287 Utility Storage 2 Assets $135,000 User-Defined $2,673 TOTAL $22,036,581 User-Defined $354,293 Township of Mulmur Asset Management Plan 2025 94 Facilities Figure 36 Portfolio Valuation: Facilities 8.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  Monthly health and safety inspections are carried out to evaluate building conditions and identify health and safety risks In this AMP, the following rating criteria is used to determine the current condition of facilities assets and forecast future capital requirements: Table 42 Condition Ranges: Facilities $135k $417k $677k $749k $2.1m $2.8m $3.1m $12.1m $5m $10m Utility Storage Gravel Pit Scale House Mansfield Public Washroom Fire Hall Sand Dome Public Works Building Administration Building Arena Condition Ranges Description Very Good (80% - 100%)  Newly built or recently renovated with no visible defects.  Modern, efficient, and fully functional mechanical, electrical, and plumbing systems.  Well-maintained structural elements, finishes, and overall aesthetic.  Minimal maintenance required beyond routine inspections and minor upkeep. Township of Mulmur Asset Management Plan 2025 95 Facilities Condition Ranges Description Good (60% - 80%)  Structurally sound with no major defects; minor wear and tear on finishes.  Functional and well-maintained mechanical, electrical, and plumbing systems.  Up-to-date aesthetics, with only minor improvements needed for modernization.  Requires only regular maintenance to keep in good condition. Fair (40% - 60%)  Some visible signs of aging, such as minor wall cracks, roof wear, or uneven flooring.  Mechanical, electrical, and plumbing systems function but may require repairs or efficiency upgrades.  Cosmetic issues like faded paint, worn flooring, or outdated interior elements.  Routine maintenance and moderate renovations can extend the building's service life. Poor (20% - 40%)  Noticeable structural issues, such as sagging floors, cracked walls, or roof leaks.  Frequent repairs needed for electrical, plumbing, or HVAC systems due to aging components.  Significant cosmetic wear, including peeling paint, damaged finishes, and outdated fixtures.  Requires major repairs or system upgrades to maintain functionality. Very Poor (0% - 20%)  Severe structural deterioration, with major foundation issues, roof failures, or extensive wall cracking.  Significant water damage, mold growth, or rot affecting habitability. Township of Mulmur Asset Management Plan 2025 96 Facilities As illustrated in Figure 37 below, the majority of the Township's facilities are in fair or better condition. Figure 37 Asset Condition: Facilities Table 43 summarizes the replacement cost-weighted condition of the Township's facilities portfolio. Based primarily on assessed condition data, 94% of facilities are in fair or better condition, with the remaining 6% in poor or lower condition. Condition data was available for 83% of facilities, based on replacement costs; age was used to estimate condition for the remaining 17% of assets. $128k $454k $650k $1.7m $5k $1.9m $53k $12k $20k $2.7m $95k $2.3m $15k $417k $688k $9.2m $275k $135k $3k $1.1m $31k $60k $44k 0% 20% 40% 60% 80% 100% Utility Storage Sand Dome Public Works Building Mansfield Public Washroom Gravel Pit Scale House Fire Hall Arena Administration Building Very Good Good Fair Poor Very Poor Condition Ranges Description  Outdated or failing mechanical, electrical, and plumbing (MEP) systems, posing safety risks.  Building is unsafe for occupancy without extensive rehabilitation or potential demolition. Township of Mulmur Asset Management Plan 2025 97 Facilities Table 43 Asset Condition: Facilities by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition17 Administration Building $31,481 1% $3,022,728 99% Good (76%) Arena $1,137,675 9% $10,912,661 91% Good (62%) Fire Hall $60,468 8% $688,429 92% Fair (55%) Gravel Pit Scale House - 0% $417,059 100% Fair (46%) Mansfield Public Washroom - 0% $676,973 100% Very Good (87%) Public Works Building $3,470 0% $2,822,637 100% Good (65%) Sand Dome - 0% $2,128,000 100% Good (77%) Utility Storage $135,000 100% - 0% Poor (39%) TOTAL $1,368,094 6% $20,668,487 94% Good (66%) 8.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. Table 44 summarizes and Figure 38 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. 17 Weighted by replacement cost. Township of Mulmur Asset Management Plan 2025 98 Facilities Table 44 Detailed Asset Age: Facilities Figure 38 Estimated Useful Life vs. Asset Age: Facilities Age analysis reveals that, on average, facilities assets are in the mid-stages of their serviceable life. It is important to note that meaningful and accurate age analysis of building assets relies heavily on effective componentization. Buildings are complex structures made up of many parts (e.g., roofs, HVAC systems, windows, and foundations), each with its own expected lifespan and maintenance needs. 33.2 49.1 21 29.8 15 45.7 34.7 65 91.7 81.3 48 49.7 49.4 91.1 46.9 50 0 25 50 75 100 Administration Building Arena Fire Hall Gravel Pit Scale House Mansfield Public Washroom Public Works Building Sand Dome Utility Storage Number of Years Weighted Average Age Weighted Average EUL Segment Weighted Average EUL Weighted Average Age Administration Building 91.7 33.2 Arena 81.3 49.1 Fire Hall 48.0 21.0 Gravel Pit Scale House 49.7 29.8 Mansfield Public Washroom 49.4 15.0 Public Works Building 91.1 45.7 Sand Dome 46.9 34.7 Utility Storage 50.0 65.0 Township of Mulmur Asset Management Plan 2025 99 Facilities A building's overall age does not always reflect the condition or serviceability of its individual components. By breaking down each building into its key components and tracking the age and condition of each one separately, staff can more accurately assess where investment is needed and avoid premature or unnecessary expenditures. Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. 8.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's facilities 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 45 outlines the Township's current lifecycle management strategy for facilities assets. Table 45 Lifecycle Management Strategy: Facilities Activity Type Description of Current Strategy Maintenance / Rehabilitation / Replacement HVAC systems and furnaces of the administrative and Public Works buildings undergo annual servicing each fall. Maintenance, rehabilitation, and replacement of building components are performed as needed, based on the age, condition, and risk ratings of the assets. The impact of asset failure on building operations and public access is also considered when prioritizing projects. Township of Mulmur Asset Management Plan 2025 100 Facilities 8.5 Forecasted Long-Term Replacement Needs Figure 39 Forecasted Capital Replacement Needs Facilities 2025-2074 Figure 39 illustrates the cyclical short-, medium- and long-term infrastructure replacement requirements for the Township's facilities portfolio. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register. The Township's average annual requirements (red dotted line) total $354,293 for all 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. $354k $64k $598k $431k $1.1m $658k $1.3m $574k $2.3m $992k $1.6m $0 $500k $1.0m $1.5m $2.0m $2.5m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Administration Building Arena Fire Hall Gravel Pit Scale House Mansfield Public Washroom Public Works Building Sand Dome Utility Storage Annual Requirement Total Township of Mulmur Asset Management Plan 2025 101 Facilities Forecasted requirements align with the selected proposed levels of service. Replacement needs are forecasted to fluctuate with a peak of $2.3 million occurring in 2060-2064. These projections and estimates are based on current asset records, their replacement costs, and age analysis. They are designed to provide a long- term, portfolio-level overview of capital needs and should be used to support improved financial planning over several decades. Often, the magnitude of replacement needs is substantially higher than most municipalities can afford to fund. In addition, most assets may not need to be replaced. However, quantifying and monitoring these spikes is essential for long- term financial planning, including establishing dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets receive proper and timely lifecycle intervention, including replacements. In the case of facilities, detailed componentization is necessary to develop 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. 8.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 8.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for the facilities assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section Township of Mulmur Asset Management Plan 2025 102 Facilities 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. Figure 40 Risk Matrix: Facilities The following risk ratings are first shown for the overall category and then by segment for the facilities assets. Figure 41 Risk Rating Ranges: Facilities 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $2,912,567 $275,621 $2,458,130 $6,352,609 $10,037,654 (13%) (1%) (11%) (29%) (46%) Township of Mulmur Asset Management Plan 2025 103 Facilities Table 46 Probability of Failure, Consequence of Failure, Risk Ratings: Facilities by Segment Overall, the average risk rating for facilities assets is 11.63, which is considered High. The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 8.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Infrastructure Reinvestment Dependence on government grants for facilities carries inherent risks. Funding can be unpredictable due to political and economic changes, and grants often come with conditions that may not align with local priorities. Securing grants is competitive and resource- intensive, and they typically provide temporary funding, leading to Asset Category Probability of Failure Consequence of Failure Risk Rating Administration Building 2.11 / 5 4.82 / 5 10.01 / 25 Arena 2.82 / 5 4.78 / 5 13.48 / 25 Fire Hall 3.16 / 5 3.63 / 5 11.28 / 25 Gravel Pit Scale House 3 / 5 4.08 / 5 12.24 / 25 Mansfield Public Washroom 1.06 / 5 3.01 / 5 3.2 / 25 Public Works Building 2.66 / 5 4.05 / 5 10.65 / 25 Sand Dome 1.98 / 5 3.94 / 5 7.7 / 25 Utility Storage 4 / 5 2 / 5 8 / 25 TOTAL 2.59 / 5 4.49 / 5 11.63 / 25 Township of Mulmur Asset Management Plan 2025 104 Facilities short-term fixes. Managing grants involves considerable administrative work, which can strain resources and cause delays. To ensure sustainable support for township facilities, it is important to diversify funding sources, balancing local revenue with external grants. 8.7 Current Levels of Service The tables that follow summarize the Township's current levels of service. There are no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below represent performance measures that the Township has selected for this AMP. 8.7.1 Community Levels of Service Table 47 Community Levels of Service: Facilities Service Attribute Qualitative Description Current LOS (2024) Accessible & Reliable List of facilities that meet accessibility standards and any work that has been undertaken to achieve alignment The Township's Administrative Building meets current accessibility standards. Safe & Regulatory Description of monthly and annual facilities inspection process Internal health and safety inspections are performed monthly by the Township's designated Health and Safety Representative. Annual servicing of the administrative and Public Works building's HVAC systems takes place each fall. Annual fire inspection and an annual fire drill are also conducted annually. Affordable Description of the lifecycle activities (maintenance, rehabilitation and replacement) performed on municipal facilities Internal health and safety inspections are performed monthly by the Township's designated Health and Safety Representative. Annual servicing of the administrative and Public Works building's HVAC and fire alarm systems takes place annually. Township of Mulmur Asset Management Plan 2025 105 Facilities Service Attribute Qualitative Description Current LOS (2024) Maintenance activities such as septic services and additional repairs are performed on facilities as needed by Township Staff or through contracted services. Cleaning takes place bi-weekly at the Township office, and weekly at the North Dufferin Community Centre. Sustainable Description of the current condition of municipal facilities and the plans that are in place to maintain or improve the provided level of service Currently, the Township's administrative and public works buildings are considered in good condition. The North Dufferin Community Centre (NDCC) is considered to be in fair/poor condition. The replacement of the arena's ice surface floor and dasher board system, and the replacement of the flat roof portion of the arena were completed in 2024. Future planned improvements to the building include improvements to the arena's upper floor community hall (the "Norduff Room"), and the addition of more changerooms. The Township has and will continue to seek out and apply for grants to make improvements to the NDCC to help offset budget constraints. 8.7.2 Technical Levels of Service Table 48 Technical Levels of Service: Facilities Service Attribute Technical Metric Current LOS (2024) Accessible & Reliable Number of unplanned facility closures 0 Safe & Regulatory Number of service requests related to unsafe conditions in facilities 0 Affordability O&M Annual Cost Administration Building $17,251.67 Township of Mulmur Asset Management Plan 2025 106 Facilities Service Attribute Technical Metric Current LOS (2024) O&M Annual Cost Arena $104,507.98 O&M Annual Cost Fire Department $10,794.33 O&M Annual Cost Gravel Pit House $0.00 O&M Annual Cost Mansfield Park Pavilion $557.17 O&M Annual Cost Public Works Building's (PW building, Sand Dome, and Storage Shed) $37,136.10 Arena usage (hours) 1,195 hours Rental space usage (hours) 39 hours Annual Capital Reserve Contribution $118,500.00 Sustainability Average condition of facilities assets in the Township Good (66%) % of facilities assets that are in fair or better condition 94% % of facilities assets that are in poor or lower condition 6% Actual annual capital budget : average required annual capital requirements $166,000 : $354,000 (0.47 : 1) 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 (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 49 outlines the proposed LOS scenarios that were analyzed for facilities. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Township of Mulmur Asset Management Plan 2025 107 Facilities Table 49 Proposed LOS: Facilities Segment Average Annual Requirement Selection -5% Condition (55%) Maintain Baseline (60%) +5% Condition (65%) No Target Administration Building $37,279 $37,684 $37,730 $41,520 Maintain Arena $181,325 $195,187 $197,123 $172,622 +5% Condition Fire Hall $16,027 $16,027 $16,027 $16,187 Maintain Gravel Pit Scale House $8,360 $8,360 $8,360 $8,443 Maintain Mansfield Public Washroom $13,702 $13,702 $13,702 $13,839 Maintain Public Works Building $33,402 $33,437 $34,190 $34,532 Maintain Sand Dome $45,287 $45,287 $45,287 $49,250 Maintain Utility Storage $2,673 $2,673 $2,673 $2,700 Maintain TOTAL $338,056 $352,357 $355,092 $339,093 $354,293 Township of Mulmur Asset Management Plan 2025 108 Land Improvements 9 Land Improvements The Township's land improvements portfolio has a current replacement cost of $1.6 million. 9.1 Inventory & Valuation Table 50 summarizes the quantity and current replacement cost of all land improvements assets available in the Township's asset register. Table 50 Detailed Asset Inventory: Land Improvements 18 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. Segment Quantity Unit of Measure Replacement Cost Primary RC Method AAR18 Ball Diamond 2 Assets $100,000 User-Defined $3,465 Fencing 10 Assets $87,147 CPI $3,427 Multipurpose Pad 4 Assets $215,279 CPI $10,657 Outdoor Furnishings 10 Assets $149,466 CPI $4,402 Parking Lot 4 Assets $725,208 User-Defined $35,901 Play Structure 3 Assets $189,511 CPI $11,461 Trail 0.7 KM $81,280 Cost per Unit $2,451 Wells 5 Assets $96,381 User-Defined $3,903 TOTAL $1,644,272 User-Defined $75,668 Township of Mulmur Asset Management Plan 2025 109 Land Improvements Figure 42 Portfolio Valuation: Land Improvements 9.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  Condition assessments and inspections of park playground equipment are conducted externally by the Township's insurance agency every 5 years at a minimum In this AMP, the following rating criteria is used to determine the current condition of land improvements assets and forecast future capital requirements: Table 51 Condition Ranges: Land Improvements $81k $87k $96k $100k $149k $190k $215k $725k $200k $400k $600k $800k Trail Fencing Wells Ball Diamond Outdoor Furnishings Play Structure Multipurpose Pad Parking Lot Condition Ranges Description Very Good (80% - 100%)  The asset is new, recently rehabilitated, or very well maintained.  It functions as intended with no significant signs of deterioration.  No immediate maintenance or repair needs are present.  Examples: A newly installed playground, freshly resurfaced trail, or pristine fencing and landscaping in a public park. Township of Mulmur Asset Management Plan 2025 110 Land Improvements Condition Ranges Description Good (60% - 80%)  The asset is in overall good condition, showing minor wear from regular use.  It is fully operational and meets community expectations for use, safety, and appearance.  Only routine or preventative maintenance is needed.  Examples: A well-maintained sports field, a dock with slight wear on surface materials, or a parking lot with minor surface cracking. Fair (40% - 60%)  The asset is functional but aging, with noticeable wear and some minor safety or usability concerns.  It meets basic performance standards but may require minor repairs or surface improvements to avoid accelerated decline.  Examples: A trail with minor erosion, faded playground surfacing, or a parking lot with cracked pavement and early signs of edge failure. Poor (20% - 40%)  The asset has serious signs of deterioration and frequent functional issues.  It may still be partially usable but fails to meet service expectations.  Corrective maintenance or planning for replacement should be prioritized.  Examples: A dock with unstable decking, fencing with missing sections, or sports fields with bare patches and poor drainage. Very Poor (0% - 20%)  The asset is in critical condition with extensive structural or surface deterioration.  It is unsafe, unusable, or completely non-functional, posing a risk to public safety or the environment.  Immediate action is required, including potential closure, major rehabilitation, or full replacement. Township of Mulmur Asset Management Plan 2025 111 Land Improvements As illustrated in Figure 43, the majority of the Township's land improvements are in poor or lower condition. Figure 43 Asset Condition: Land Improvements by Segment Table 1 summarizes the replacement cost-weighted condition of the Township's land improvements portfolio. Using primarily assessed condition, 47% of land improvements are in fair or better condition, with the remaining 53% in poor or lower condition. While most assets average a poor or lower condition, the Multipurpose Pad (80%), Outdoor Furnishings (95%) and Play Structures (100%) are all in fair or better condition. Condition data was available for 51% of land improvements, based on replacement costs; age was used to estimate condition for the remaining 49% of assets. $10k $169k $118k $173k $17k $12k $50k $20k $185k $24k $81k $540k $8k $37k $47k $50k $86k $5k $11k 0% 20% 40% 60% 80% 100% Wells Trail Play Structure Parking Lot Outdoor Furnishings Multipurpose Pad Fencing Ball Diamond Very Good Good Fair Poor Very Poor Condition Ranges Description  Examples: A playground with broken equipment, a trail washed out or impassable, or a parking lot with large potholes and failing subbase. Township of Mulmur Asset Management Plan 2025 112 Land Improvements Table 52 Asset Condition: Land Improvements by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition19 Ball Diamond $50,000 50% $50,000 50% Fair (45%) Fencing $58,188 67% $28,959 33% Fair (45%) Multipurpose Pad $42,106 20% $173,173 80% Very Good (84%) Outdoor Furnishings $8,062 5% $141,404 95% Very Good (80%) Parking Lot $540,208 74% $185,000 26% Poor (39%) Play Structure - 0% $189,511 100% Very Good (80%) Trail $81,280 100% - 0% Poor (35%) Wells $86,260 89% $10,121 11% Very Poor (9%) TOTAL $866,104 53% $778,168 47% Fair (52%) 9.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. 19 Weighted by replacement cost. Township of Mulmur Asset Management Plan 2025 113 Land Improvements Table 53 summarizes and Figure 44 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. Table 53 Detailed Asset Age: Land Improvements Age analysis reveals that, on average, land improvements vary significantly from being at the early, mid-, and latter stages of their expected life. Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. Segment Weighted Average EUL Weighted Average Age Ball Diamond 30.0 73.5 Fencing 26.0 15.3 Multipurpose Pad 19.8 3.7 Outdoor Furnishings 45.1 5.8 Parking Lot 20.0 24.8 Play Structure 15.0 4.2 Trail 36.9 23.7 Wells 26.9 39.5 Township of Mulmur Asset Management Plan 2025 114 Land Improvements Figure 44 Estimated Useful Life vs. Asset Age: Land Improvements 9.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's land improvements 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 54 outlines the Township's current lifecycle management strategy for land improvements assets. Table 54 Lifecycle Management Strategy: Land Improvements Activity Type Description of Current Strategy Maintenance / Rehabilitation The Township's Public Works staff conducts annual inspections of recreational land improvements and cemeteries. Parks undergo annual inspections with additional inspections performed as needed throughout the year. 73.5 15.3 3.7 5.8 24.8 4.2 23.7 39.5 30 26 19.8 45.1 20 15 36.9 26.9 0 20 40 60 80 Ball Diamond Fencing Multipurpose Pad Outdoor Furnishings Parking Lot Play Structure Trail Wells Number of Years Weighted Average Age Weighted Average EUL Township of Mulmur Asset Management Plan 2025 115 Land Improvements Activity Type Description of Current Strategy Each spring, seasonal maintenance is carried out on baseball diamonds, including adding material to pitching mounds as necessary and dragging the gravel surface. Replacement Park play structures are replaced every 15 years, based on the equipment's estimated useful life. Rehabilitation and replacement activities are prioritized based on the outcome of inspections, asset condition, location, and public concerns. The health and safety of residents are heavily prioritized in these decisions. 9.5 Forecasted Long-Term Replacement Needs Figure 45 illustrates the cyclical short-, medium- and long-term infrastructure replacement requirements for the Township's land improvements portfolio. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register. The Township's average annual requirements (red dotted line) total $75,668 for all land improvements. Although actual spending may fluctuate substantially from year to year, this figure is a useful benchmark value for annual capital expenditure targets (or allocations to reserves) to ensure projects are not deferred and replacement needs are met as they arise. Replacement needs are forecasted to fluctuate with spikes occurring in 2030-2034, 2050-2054, and 2070- 2074 as assets reach the end of their useful life. Additionally, there is currently an approximate $102,000 backlog comprised of assets that remain in service beyond their estimated useful life. The capital forecast below and the 10-year capital requirements expanded in Appendix B have accounted for removing this accumulation and continuing to rehabilitate or replace assets in alignment with the proposed levels of service. These projections and estimates are based on asset replacement costs and age analysis. They are designed to provide a long-term, portfolio-level overview of capital needs and should be used to support improved financial planning over several decades. Township of Mulmur Asset Management Plan 2025 116 Land Improvements Figure 45 Forecasted Capital Replacement Needs: Land Improvements 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 receive proper and timely lifecycle intervention, including replacements. A summary of the 10-year replacement forecast can be found in Appendix B. $76k $86k $717k $411k $309k $49k $842k $276k $318k $219k $653k $0 $100k $200k $300k $400k $500k $600k $700k $800k $900k 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Ball Diamond Fencing Multipurpose Pad Outdoor Furnishings Parking Lot Play Structure Trail Wells Annual Requirement Total Township of Mulmur Asset Management Plan 2025 117 Land Improvements 9.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 9.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for the land improvements assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. Figure 46 Risk Matrix: Land Improvements The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. Township of Mulmur Asset Management Plan 2025 118 Land Improvements These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. The following risk ratings are first shown for the overall category and then by segment for the land improvements assets. Figure 47 Risk Rating Ranges: Land Improvements 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $578,114 $35,913 $355,499 $154,746 $520,000 (35%) (2%) (22%) (9%) (32%) Table 55 Probability of Failure, Consequence of Failure, Risk Ratings: Land Improvements by Segment Overall, the average risk rating for land improvements assets is 10.39, which is considered High. Asset Category Probability of Failure Consequence of Failure Risk Rating Ball Diamond 3 / 5 2 / 5 6 / 25 Fencing 3.26 / 5 1.5 / 5 5.27 / 25 Multipurpose Pad 1.61 / 5 3.63 / 5 5.28 / 25 Outdoor Furnishings 1.48 / 5 1.76 / 5 2.52 / 25 Parking Lot 3.74 / 5 4.41 / 5 16.86 / 25 Play Structure 1.22 / 5 3 / 5 3.65 / 25 Trail 4 / 5 2.39 / 5 9.56 / 25 Wells 4.58 / 5 1.78 / 5 8.47 / 25 TOTAL 2.96 / 5 3.35 / 5 10.39 / 25 Township of Mulmur Asset Management Plan 2025 119 Land Improvements The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 9.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Community Expectations and Regulatory Compliance Maintaining playgrounds and trails while ensuring regulatory compliance can be challenging for a Township. Regular upkeep involves frequent inspections and repairs, which can strain resources and budgets. Additionally, meeting safety and accessibility standards requires ongoing attention to detailed and evolving regulations. Balancing these demands requires careful planning to ensure that facilities remain safe, functional, and compliant. 9.7 Current Levels of Service The tables that follow summarize the Township's current levels of service. There are no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below represent performance measures that the Township has selected for this AMP. 9.7.1 Community Levels of Service Table 56 Community Levels of Service: Land Improvements Service Attribute Qualitative Description Current LOS (2024) Accessible & Reliable Description, which may include maps, of municipal parks and recreation spaces, The Township's of Mulmur's municipal parks and recreation spaces includes: 1- North Dufferin Community Centre/ Honeywood Park-706114 County Road 21, Mulmur- Property Township of Mulmur Asset Management Plan 2025 120 Land Improvements Service Attribute Qualitative Description Current LOS (2024) and other land improvement (landfill and parking lots) assets and their proximity to the surrounding community includes a municipal park and playground, baseball field, cycling station, and the North Dufferin Community Centre, which is Mulmur's only indoor recreation complex. 2-Thomson Trail Park- 46 Sommerville Cres, Mulmur- Property is a municipal park, playground equipment, multipurpose/basketball court, Court lighting, a walking trail, and bike station. A pickleball/tennis court is to be installed in the summer of 2024. 3-Maes Crescent Park- Maes Cres (no municipal address), Mulmur- Municipal park, open green space does not have playground equipment or other infrastructure. Accessible through sidewalks between neighbouring properties to Jeffery Drive and Maes Crescent. No road access. 4- Kingsland Parkland- 24 Kingsland Ave, Mulmur- Municipal owned lot, wooded greenspace with trails, no infrastructure. 5- Mansfield Ball Park- 937016 Airport Road, Mulmur- Property is a municipal park that features a baseball diamond, batters cage, bleachers, pavilion, and playground. The Township has parking lots next to its administrative and public works buildings at 758070 2nd Line E, as well as a parking lot beside the North Dufferin Community Centre at 706144 County Road. Currently, the Township does not have any parking lots located in or in proximity to its municipal parks. Installing paved parking lots at our parks is going to be explored in the future. There are also land improvement assets at the Honeywood Cemetery at 598335 2nd Line West. This includes three columbaria, a parkette, and fencing. Township of Mulmur Asset Management Plan 2025 121 Land Improvements Service Attribute Qualitative Description Current LOS (2024) Safe & Regulatory Description of the land improvement inspection process and timelines for inspections The Township's Public Works staff conduct annual inspections of recreational land improvements and cemeteries. Inspections typically take place in the spring. Additionally, municipal park equipment is inspected at a maximum of every 5 years by the Township's insurance firm. Affordable Description of the lifecycle activities (maintenance, rehabilitation and replacement) performed on all land improvement assets Park equipment within municipal parks has an estimated useful life of 15 years. Park equipment is inspected at a maximum of every 5 years by the Township's insurance firm to ensure it meets safety standards. Sustainable Description of the current condition of land improvements and the plans that are in place to maintain or improve the provided level of service The average condition of land improvement assets is 52%. However, land improvement assets are not currently annually rated, and thus this average is primarily based on age-based condition. In the future, the Township will focus more on conducting annual condition ratings for all land improvement assets. 9.7.2 Technical Levels of Service Table 57 Technical Levels of Service: Land Improvements Service Attribute Technical Metric Current LOS (2024) Accessible & Reliable Square meters of outdoor recreation space 77,740.11 Safe & Regulatory Number of service requests about unsafe conditions in parks and recreation spaces 1 Township of Mulmur Asset Management Plan 2025 122 Land Improvements Service Attribute Technical Metric Current LOS (2024) Number of service requests about unsafe conditions for other land improvement assets (landfill and parking lots) 0 Number identified defects for all land improvement assets 0 Affordability O&M cost for parks without a sports field / Number of parks (3) $4,005.32 O&M cost for parks with a sports fields / Number of parks (2) $8,307.81 Registered annual usage rate for ball diamond -Mansfield Ball Diamond 480 hours Registered annual usage rate for ball diamond - Honeywood Ball Diamond 145 hours Sustainability Average condition of land improvements assets Fair (52%) % of assets that are in fair or better condition 47% % of assets that are in poor or lower condition 53% Actual annual capital budget : average required annual capital requirements $0 : $76,000 (0 : 1) 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 (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 58 outlines the proposed LOS scenarios that were analyzed for land improvements. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Township of Mulmur Asset Management Plan 2025 123 Land Improvements Table 58 Proposed LOS: Land Improvements Segment Average Annual Requirement Selection -5% Condition (45%) Maintain Baseline (50%) +5% Condition (55%) No Target Ball Diamond $3,465 $3,465 $3,465 $3,333 Maintain Fencing $3,194 $3,427 $3,484 $3,384 Maintain Multipurpose Pad $10,657 $10,657 $10,900 $11,009 Maintain Outdoor Furnishings $4,052 $4,402 $4,745 $5,215 Maintain Parking Lot $35,901 $35,901 $35,901 $36,260 Maintain Play Structure $11,461 $11,461 $11,461 $12,634 Maintain Trail $2,451 $2,451 $2,451 $2,476 Maintain Wells $3,903 $3,903 $4,014 $3,613 Maintain TOTAL $75,085 $75,668 $76,421 $77,924 $75,668 Township of Mulmur Asset Management Plan 2025 124 Machinery & Equipment 10 Machinery & Equipment The Township's machinery and equipment portfolio's total current replacement cost is estimated at approximately $3.7 million. 10.1 Inventory & Valuation Table 59 summarizes the quantity and current replacement cost of all machinery and equipment assets available in the Township's asset register. Table 59 Detailed Asset Inventory: Machinery & Equipment 20 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. Segment Quantity Unit of Measure Replacement Cost Primary RC Method AAR20 Attachments 11 Assets $255,480 CPI $54,776 Fueling Station 4 Assets $130,688 CPI $5,952 Heavy Equipment 5 Assets $1,914,074 CPI $156,971 Medium Equipment 12 Assets $550,056 CPI $41,605 Small Equipment 41 Assets $375,897 CPI $39,920 Solar Panels 2 Assets $434,505 CPI $12,906 $3,660,700 CPI $312,131 Township of Mulmur Asset Management Plan 2025 125 Machinery & Equipment Figure 48 Portfolio Valuation: Machinery & Equipment 10.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach:  There is no formal condition assessment program in place, but it will be explored moving forward. The condition of machinery and equipment is primarily assessed based on the age of the asset In this AMP, the following rating criteria is used to determine the current condition of machinery and equipment assets and forecast future capital requirements: Table 60 Condition Ranges: Machinery & Equipment $131k $255k $376k $435k $550k $1.9m $0 $500k $1.0m $1.5m $2.0m Fueling Station Attachments Small Equipment Solar Panels Medium Equipment Heavy Equipment Condition Ranges Description Very Good (80% - 100%)  New or like-new condition, with no defects or performance issues.  Highly efficient and reliable, operating at peak performance.  No mechanical wear or cosmetic damage.  All systems fully functional, with minimal maintenance required beyond routine servicing.  Expected to provide years of service without major interventions. Township of Mulmur Asset Management Plan 2025 126 Machinery & Equipment Condition Ranges Description Good (60% - 80%)  Fully functional with minimal wear and tear.  All major components in good condition, with only minor maintenance needed (e.g., oil changes, filter replacements).  Efficient operation with no significant performance issues.  Regular servicing keeps the equipment in optimal working condition.  Only minor repairs or adjustments required. Fair (40% - 60%)  Occasional mechanical issues but still operational with regular maintenance.  Some worn components affecting efficiency, such as aging hydraulics, belts, or electrical wiring.  Moderate cosmetic wear (scratches, dents, faded paint), but no major structural damage.  Requires proactive maintenance and some parts replacement to extend lifespan. Poor (20% - 40%)  Regular breakdowns and performance issues requiring frequent repairs.  Noticeable mechanical wear, including worn-out bearings, belts, hydraulic leaks, or electrical malfunctions.  Reduced efficiency and output, causing operational delays or increased costs.  Aging components and visible deterioration, such as rust, cracks, or faded controls.  Significant repairs or partial replacements needed to maintain functionality. Very Poor (0% - 20%)  Frequent mechanical failures making the equipment unreliable and unsafe to use.  Severe wear and tear with major structural damage, corrosion, or missing components.  High operating costs due to excessive fuel consumption, breakdowns, and inefficient performance. Township of Mulmur Asset Management Plan 2025 127 Machinery & Equipment As illustrated in Figure 49, most of the assets are in fair or better condition. Figure 49 Asset Condition: Machinery & Equipment by Segment Condition data was available for 24% of machinery and equipment, based on replacement costs; age was used to estimate condition for the remaining 76% of assets. Table 61 summarizes the replacement cost-weighted condition of the Township's machinery and equipment portfolio. Based mostly on age-based condition data, 56% of machinery and equipment are in fair or better condition, with the remaining 44% in poor or lower condition. $13k $15k $621k $26k $435k $92k $310k $34k $10k $467k $15k $23k $93k $826k $215k $122k $131k $214k 0% 20% 40% 60% 80% 100% Solar Panels Small Equipment Medium Equipment Heavy Equipment Fueling Station Attachments Very Good Good Fair Poor Very Poor Condition Ranges Description  Parts are difficult to source or no longer available, making repairs impractical.  Requires immediate replacement as repairs would not be cost-effective. Township of Mulmur Asset Management Plan 2025 128 Machinery & Equipment Table 61 Asset Condition: Machinery & Equipment by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition21 Attachments $214,352 84% $41,128 16% Very Poor (13%) Fueling Station $130,688 100% - 0% Very Poor (0%) Heavy Equipment $825,866 43% $1,088,208 57% Fair (58%) Medium Equipment $214,411 39% $335,645 61% Fair (50%) Small Equipment $237,867 63% $138,030 37% Poor (26%) Solar Panels - 0% $434,505 100% Good (72%) TOTAL $1,623,184 44% $2,037,516 56% Fair (50%) 10.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. Table 62 summarizes and Figure 50 illustrates the average current age of each asset type and its estimated useful life. Both values are weighted by the replacement cost of individual assets. Age analysis reveals that, on average, with the exception of solar panel assets, most machinery and equipment assets remain in service close to or beyond their expected useful life. 21 Weighted by replacement cost. Township of Mulmur Asset Management Plan 2025 129 Machinery & Equipment Table 62 Detailed Asset Age: Machinery & Equipment Figure 50 Estimated Useful Life vs. Asset Age: Machinery & Equipment Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established 22 35 9.4 9.7 17.2 9 11.6 25 15.4 13.4 11.5 30 0 10 20 30 40 Attachments Fueling Station Heavy Equipment Medium Equipment Small Equipment Solar Panels Number of Years Weighted Average Age Weighted Average EUL Segment Weighted Average EUL Weighted Average Age Attachments 11.6 22.0 Fueling Station 25.0 35.0 Heavy Equipment 15.4 9.4 Medium Equipment 13.4 9.7 Small Equipment 11.5 17.2 Solar Panels 30.0 9.0 Township of Mulmur Asset Management Plan 2025 130 Machinery & Equipment as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. 10.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's machinery and equipment assets are performing as expected and meeting the needs of customers, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. The following table outlines the Township's current lifecycle management strategy for machinery and equipment assets. Table 63 Lifecycle Management Strategy: Machinery & Equipment 10.5 Forecasted Long-Term Replacement Needs Figure 51 illustrates the cyclical short-, medium- and long-term infrastructure replacement requirements for the Township's machinery and equipment portfolio. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets Activity Type Description of Current Strategy Maintenance / Rehabilitation Preventative maintenance that does not require a licensed technician is performed by internal staff, such as regular cleaning of equipment. Heavy equipment is inspected annually and receives in-house preventative maintenance, including an oil change every 250 hours. Smaller equipment is serviced on an as-needed basis. Replacement Asset replacements are determined by the asset's age, years of service, hours of use, frequency of breakdowns and their type of use. Township of Mulmur Asset Management Plan 2025 131 Machinery & Equipment included in Citywide Assets, the Township's primary asset management system and asset register. The Township's average annual requirements (red dotted line) total $312,131 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 remain relatively consistent over the 50-year projection period, with two peaks of $2.0 million in 2050-2054 and 2070-2074. A low of just under $1.0 million occurs in 2065-2069. Figure 51 Forecasted Capital Replacement Needs: Machinery & Equipment 2025- 2074 Additionally, there is currently an approximate $1.0 million backlog comprised of assets that remain in service beyond their estimated useful life. The capital forecast below and the 10-year capital requirements expanded in Appendix B have $312k $1.4m $1.5m $1.5m $1.5m $1.2m $2.0m $1.5m $1.3m $985k $2.0m $0 $500k $1.0m $1.5m $2.0m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Attachments Fueling Station Heavy Equipment Medium Equipment Small Equipment Solar Panels Annual Requirement Total Township of Mulmur Asset Management Plan 2025 132 Machinery & Equipment accounted for removing this accumulation and continuing to rehabilitate or replace assets in alignment with the proposed levels of service. These projections and estimates are based on asset replacement costs and age analysis. They are designed to provide a long-term, portfolio-level overview of capital needs and should be used to support improved financial planning over several decades. Often, the magnitude of replacement needs is substantially higher than most municipalities can afford to fund. In addition, most assets may not need to be replaced. However, quantifying and monitoring these spikes is essential for long- term financial planning, including establishing dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets receive proper and timely lifecycle intervention, including replacements. A summary of the 10-year replacement forecast can be found in Appendix B. 10.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 10.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for machinery and equipment assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section Township of Mulmur Asset Management Plan 2025 133 Machinery & Equipment 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. Figure 52 Risk Matrix: Machinery & Equipment The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. The following risk ratings are first shown for the overall category and then by segment for the machinery and equipment assets. Figure 53 Risk Rating Ranges: Machinery & Equipment 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $190,647 $831,952 $751,468 $52,299 $1,834,334 (5%) (23%) (21%) (1%) (50%) Township of Mulmur Asset Management Plan 2025 134 Machinery & Equipment Table 64 Probability of Failure, Consequence of Failure, Risk Ratings: Machinery & Equipment by Segment Overall, the average risk rating for machinery and equipment assets is 11.59, which is considered High. 10.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Climate Change & Extreme Weather Events Climate change and extreme weather can present challenges for a Township's machinery and equipment. The rising frequency of severe storms, floods, and intense winter weather events can lead to increased operational demands, such as more frequent snow plowing and flood response efforts. This heightened usage can result in additional wear and tear on machinery and equipment, potentially leading to more frequent maintenance needs and accelerated deterioration. Adverse weather conditions also exacerbate the risk of damage and operational inefficiencies. Asset Category Probability of Failure Consequence of Failure Risk Rating Attachments 4.47 / 5 2.74 / 5 12.63 / 25 Fueling Station 5 / 5 3.35 / 5 16.75 / 25 Heavy Equipment 2.78 / 5 4.78 / 5 13.02 / 25 Medium Equipment 2.99 / 5 3.72 / 5 11.07 / 25 Small Equipment 3.89 / 5 1.59 / 5 6.7 / 25 Solar Panels 2 / 5 4 / 5 8 / 25 TOTAL 3.03 / 5 4.01 / 5 11.59 / 25 Township of Mulmur Asset Management Plan 2025 135 Machinery & Equipment 10.7 Current Levels of Service The tables that follow summarize the Township's current levels of service. There are no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below represent performance measures that the Township has selected for this AMP. 10.7.1 Community Levels of Service Table 65 Community Levels of Service: Machinery & Equipment Service Attribute Qualitative Description Current LOS (2024) Safe & Reliable Description of the machinery & equipment inspection process and any licensing requirements for operators Preventative maintenance that does not require a licensed technician is performed in-house by the Township's Public Works Department. For example, regular cleaning of equipment. Heavy equipment is inspected annually, and receives an in-house preventative maintenance service including oil changes every 250 hours. Graders have blades replaced as necessary, with blades tending to need replacement more during the winter months. All public works staff receive the appropriate training required for using specialized equipment and machinery. Records of such training and expiry dates are tracked by Township Staff. Affordable Description of the lifecycle activities (maintenance, rehabilitation and replacement) performed on machinery and equipment Heavy equipment is inspected annually and receives an inhouse PM service including oil change every 250 hours. Graders have blades replaced as necessary, with blades tending to need replacement more during the winter months. Township of Mulmur Asset Management Plan 2025 136 Machinery & Equipment Service Attribute Qualitative Description Current LOS (2024) Outside maintenance work that requires a licensed technician is performed out of house as needed. Sustainable Description of the current condition of machinery & equipment and the plans that are in place to maintain or improve the provided level of service Currently, equipment and machinery are not given an annual condition rating. This means that most assets are currently rated based on their age-based condition. In the future, the Township will explore conducting annual condition assessments of all machinery and equipment assets. 10.7.2 Technical Levels of Service Table 66 Technical Levels of Service: Machinery & Equipment Service Attribute Technical Metric Current LOS (2024) Safe & Regulatory Number of accidents involving municipal machinery and equipment 0 Number of machinery and equipment major defects reported (where outside services are required) 0 Affordability O&M Annual Cost $105,567.03 Sustainability Average condition of machinery and equipment assets Fair (50%) % of assets in fair or better condition 56% % of assets in poor or lower condition 44% Actual annual capital budget: average required annual capital requirements $281,000 : $312,000 (0.90 : 1) Township of Mulmur Asset Management Plan 2025 137 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 (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 67 outlines the proposed LOS scenarios that were analyzed for machinery and equipment. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Table 67 Proposed LOS: Machinery & Equipment Segment Average Annual Requirement Selection -5% Condition (45%) Maintain Baseline (50%) +5% Condition (55%) No Target Attachments $53,029 $54,776 $55,652 $53,782 Maintain Fueling Station $5,629 $5,952 $5,952 $5,228 Maintain Heavy Equipment $156,971 $156,971 $156,971 $148,138 Maintain Medium Equipment $41,605 $41,605 $41,756 $42,695 Maintain Small Equipment $37,541 $39,920 $41,443 $40,884 Maintain Solar Panels $12,906 $12,906 $12,906 $14,484 Maintain TOTAL $307,681 $312,131 $314,680 $305,210 $312,131 Township of Mulmur Asset Management Plan 2025 138 Vehicles 11 Vehicles The Township's vehicles portfolio has an approximate total current replacement cost of $1.7 million. 11.1 Inventory & Valuation Table 68 summarizes the quantity and current replacement cost of all vehicles assets available in the Township's asset register. Table 68 Detailed Asset Inventory: Vehicles Figure 54 Portfolio Valuation: Vehicles 11.2 Asset Condition Accurate and reliable condition data allows staff to determine the remaining service life of assets and identify the most cost-effective approach to managing assets more confidently. The following describes the Township's current approach: 22 Average Annual Capital Requirement (AAR) based on selected proposed levels of service scenarios For further detail, see section 2.3.5 Average Annual Requirement and section 4 Proposed Levels of Service Analysis. $143k $1.6m $500k $1m $2m Light Duty Heavy Duty Segment Quantity Unit of Measure Replacement Cost Primary RC Method AAR22 Heavy Duty 5 Assets $1,569,972 User-Defined $133,561 Light Duty 3 Assets $143,438 CPI $15,254 TOTAL $1,713,410 User-Defined $148,815 Township of Mulmur Asset Management Plan 2025 139 Vehicles  Vehicles are inspected daily and are also dependent on their hours or kilometers of use to ensure they are in proper working condition  An external mechanic performs comprehensive annual inspections on all vehicles to maintain safety and performance standards In this AMP, the following rating criteria is used to determine the current condition of vehicles assets and forecast future capital requirements: Table 69 Condition Ranges: Vehicles Condition Ranges Description Very Good (80% - 100%)  Like-new condition--mechanically excellent with no defects or major wear.  No visible exterior damage--paint, body, and glass are in near-perfect condition.  Interior is clean and well-maintained, with no significant wear on seats, controls, or dashboard.  Optimal performance and fuel efficiency, with all systems (engine, brakes, electronics) fully functional.  Minimal maintenance required beyond standard servicing. Good (60% - 80%)  Mechanically sound with no major issues--engine, transmission, and brakes function well.  Minor cosmetic wear (small scratches or slight fading), but no major damage.  Interior is in good condition, with all controls, seats, and features fully operational.  Fuel efficiency and performance remain close to original specifications.  Routine maintenance needed to keep it in top condition. Fair (40% - 60%)  Some mechanical wear and tear, but still operational with occasional minor repairs needed.  Body has some cosmetic flaws, such as scratches, small dents, or light rust. Township of Mulmur Asset Management Plan 2025 140 Vehicles Table 70 summarizes the replacement cost-weighted condition of the Township's vehicles portfolio. Based solely on age-based condition data, 47% of vehicles are in fair or better condition, with the remaining 53% in poor or lower condition. Assets in poor or lower 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. Condition Ranges Description  Interior is intact but shows signs of aging, such as worn upholstery or faded controls.  All major systems functional, but performance is slightly reduced compared to new.  Regular maintenance required to prevent further decline. Poor (20% - 40%)  Noticeable mechanical problems, such as engine misfires, transmission slipping, or weak brakes.  Frequent minor repairs needed (e.g., battery issues, fluid leaks, suspension wear).  Significant body wear including rust spots, fading paint, or moderate dents.  Aging interior with visible wear on seats, dashboard, and controls.  Decreased fuel efficiency and performance issues becoming more noticeable. Very Poor (0% - 20%)  Severe mechanical and structural issues--engine, transmission, or braking system may be failing or unreliable.  Frequent breakdowns making the vehicle unsafe or impractical for regular use.  Extensive body damage such as severe rust, dents, or missing panels.  Worn-out interior with torn seats, broken controls, or non- functional components (e.g., HVAC, lights, windows).  High repair costs often exceeding the vehicle's remaining value. Near end-of-life. Township of Mulmur Asset Management Plan 2025 141 Vehicles Figure 55 Asset Condition: Vehicles by Segment Table 70 Asset Condition: Vehicles by Segment Asset Category ≤ Poor $ ≤ Poor % ≥ Fair $ ≥ Fair % Average Condition23 Heavy Duty $813,972 52% $756,000 48% Fair (52%) Light Duty $90,300 63% $53,138 37% Fair (54%) TOTAL $904,272 53% $809,138 47% Fair (52%) 11.3 Age Profile An asset's age profile comprises two key values: estimated useful life (EUL), or design life; and the percentage of EUL consumed. The EUL is the serviceable lifespan of an asset during which it can continue to fulfil its intended purpose and provide value to users, safely and efficiently. As assets age, their performance diminishes, often more rapidly as they approach the end of their design life. In conjunction with condition data, an asset's age profile provides a more complete summary of the state of infrastructure. It can help identify assets that may be candidates for further review through condition assessment programs; inform the selection of optimal lifecycle strategies; and improve planning for potential replacement spikes. Table 71 summarizes and Figure 56 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. 23 Weighted by replacement cost. $53k $378k $378k $90k $378k $436k 0% 20% 40% 60% 80% 100% Light Duty Heavy Duty Very Good Good Fair Poor Very Poor Township of Mulmur Asset Management Plan 2025 142 Vehicles Table 71 Detailed Asset Age: Vehicles Age analysis reveals that, on average, most vehicles are slightly past the midpoint of their established useful life. Figure 56 Estimated Useful Life vs. Asset Age: Vehicles Although asset age is an important measurement for long-term planning, condition assessments provide a more accurate indication of actual asset needs. An asset may perform past the established useful life if it has been maintained and kept in good condition. Therefore, it is important to consider asset condition when comparing asset age to its serviceable lifespan. However, each asset's estimated useful life should also be reviewed periodically to determine whether adjustments need to be made to better align with the observed length of service life for each asset type. Further, useful life estimates established as part of the PSAB 3150 implementation may not be accurate and may not reflect in-field asset performance. 9.4 5.1 13.9 9.3 0 5 10 15 Heavy Duty Light Duty Number of Years Weighted Average Age Weighted Average EUL Segment Weighted Average EUL Weighted Average Age Heavy Duty 13.9 9.4 Light Duty 9.3 5.1 Township of Mulmur Asset Management Plan 2025 143 Vehicles 11.4 Current Approach to Lifecycle Management The condition or performance of most assets will deteriorate over time. To ensure that the Township's vehicles assets are performing as expected and meeting the needs of customers, it is important to establish a lifecycle management strategy to proactively manage asset deterioration. The following table outlines the Township's current lifecycle management strategy for vehicles assets. Table 72 Lifecycle Management Strategy: Vehicles Activity Type Description of Current Strategy Maintenance Maintenance activities include daily inspections of vehicles in use and regular preventative maintenance based on the hours or kilometers of the vehicle. Snowplows receive an oil change every 25,000 km, while smaller vehicles such as pickup trucks receive an oil change every 6,000-10,000 km. Other maintenance activities, such as oil changes, are performed externally. Rehabilitation / Replacement Vehicle replacement is prioritized based on the type of vehicle, estimated useful life, condition, and frequency of breakdowns. 11.5 Forecasted Long-Term Replacement Needs Figure 57 illustrates the cyclical short-, medium- and long-term infrastructure replacement requirements for the Township's vehicles portfolio. This analysis was run from 2025 until 2074 (a 50-year timespan) for assets included in Citywide Assets, the Township's primary asset management system and asset register. The Township's average annual requirements (red dotted line) total $148,270 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 Township of Mulmur Asset Management Plan 2025 144 Vehicles allocations to reserves) to ensure projects are not deferred and replacement needs are met as they arise. Additionally, there is currently an approximate $378,000 backlog comprised of assets that remain in service beyond their estimated useful life. The capital forecast below and the 10-year capital requirements expanded in Appendix B have accounted for removing this accumulation and continuing to rehabilitate or replace assets in alignment with the proposed levels of service. These projections and estimates are based on asset replacement costs and age analysis. They are designed to provide a long-term, portfolio-level overview of capital needs and should be used to support improved financial planning over several decades. Often, the magnitude of replacement needs is substantially higher than most municipalities can afford to fund. In addition, most assets may not need to be replaced. However, quantifying and monitoring these spikes is essential for long- term financial planning, including establishing dedicated reserves. In addition, a robust risk framework will ensure that high-criticality assets receive proper and timely lifecycle intervention, including replacements. Figure 57 Forecasted Capital Replacement Needs: Vehicles 2025-2074 A summary of the 10-year replacement forecast can be found in Appendix B. $149k $526k $809k $526k $431k $1.3m $53k $911k $802k $533k $477k $0 $200k $400k $600k $800k $1.0m $1.2m $1.4m 2025 - 2029 2030 - 2034 2035 - 2039 2040 - 2044 2045 - 2049 2050 - 2054 2055 - 2059 2060 - 2064 2065 - 2069 2070 - 2074 Heavy Duty Light Duty Annual Requirement Total Township of Mulmur Asset Management Plan 2025 145 Vehicles 11.6 Risk Analysis The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 11.6.1 Quantitative Risk The following risk matrix provides a visual representation of the relationship between the probability of failure and the consequence of failure for vehicles assets based on 2024 inventory data. See Appendix D for the criteria used to determine the risk rating of each asset. Figure 58 Risk Matrix: Vehicles The matrix stratifies assets based on their individual probability and consequence of failure, each scored from 1 to 5. Their product generates a risk index ranging from 1-25. Assets with the highest criticality and likelihood of failure receive a risk rating of 25; those with lowest probability of failure and lowest criticality carry a risk rating of 1. As new data and information is gathered, the Township may consider integrating relevant information that improves confidence in the criteria used to assess asset risk and criticality. Township of Mulmur Asset Management Plan 2025 146 Vehicles These risk models have been built into the Township's Asset Management Database (Citywide Assets). See Quantitative Risk under Section 2.2.2 as well as Section 2.3.8 Evaluating Quantitative Risk for further details on the approach used to determine asset risk ratings and classifications. The following risk ratings are first shown for the overall category and then by segment for the vehicles assets. Figure 59 Risk Rating Ranges: Vehicles 1 - 4 5 - 7 8 - 9 10 - 14 15 - 25 Very Low Low Moderate High Very High $53,138 $378,000 $90,300 $435,972 $756,000 (3%) (22%) (5%) (25%) (44%) Table 73 Probability of Failure, Consequence of Failure, Risk Ratings: Vehicles by Segment Overall, the average risk rating for vehicles assets is 14.09, which is considered High. The identification of critical assets allows the Township to determine appropriate risk mitigation strategies and treatment options. Risk mitigation may include asset- specific lifecycle strategies, condition assessment strategies, or simply the need to collect better asset data. 11.6.2 Qualitative Risk The following section summarizes key trends, challenges, and risks to service delivery that the Township is currently facing: Asset Category Probability of Failure Consequence of Failure Risk Rating Heavy Duty 3.07 / 5 4.89 / 5 14.82 / 25 Light Duty 2.89 / 5 2.37 / 5 6.15 / 25 TOTAL 3.05 / 5 4.68 / 5 14.09 / 25 Township of Mulmur Asset Management Plan 2025 147 Vehicles Climate Change & Extreme Weather Events The Township can face challenges from climate change and extreme weather, such as freezing rain, which increase the need for vehicle maintenance and repairs. Harsh conditions can accelerate tire wear and place additional strain on engines, particularly during cold starts, underscoring the importance of having durable patrol trucks. Inadequate investment in suitable vehicles could affect operational capacity and service delivery. 11.7 Current Levels of Service The tables that follow summarize the Township's current levels of service. There are no specifically prescribed KPIs under Ontario Regulation 588/17 for non-core assets, therefore the KPIs below represent performance measures that the Township has selected for this AMP. 11.7.1 Community Levels of Service Table 74 Community Levels of Service: Vehicles Service Attribute Qualitative Description Current LOS (2024) Safe & Reliable Description of the Fleet Management and Safety Program Maintenance activities include daily inspections of fleet vehicles being used by the Township's Public Works Department. Affordable Description of the lifecycle activities (maintenance, rehabilitation and replacement) performed on municipal vehicles Regular preventative maintenance is performed based on the hours or kilometers the fleet vehicle has been operated. For example, snowplows receive an oil change every 25,000 km the plow is driven, while smaller vehicles such as pickup trucks receive an oil change every 6,000-10,000 km. Other maintenance activities for vehicles are performed out of house, such as oil changes. Township of Mulmur Asset Management Plan 2025 148 Vehicles Service Attribute Qualitative Description Current LOS (2024) Fleet vehicles are scheduled to be replaced based on their type and estimated useful life. Larger fleet vehicles such as snowplows are scheduled to be replaced every 10 years, while smaller vehicles are scheduled to be replaced every 7. Sustainable Description of the current condition of municipal vehicles and the plans that are in place to maintain or improve the provided level of service Currently, vehicles are not given an annual condition rating. Because of this most assets are rated on age-based condition. In the future, the Township will explore conducting annual condition assessments of all assets in this category, or receiving condition ratings from outside sources such as mechanics. 11.7.2 Technical Levels of Service Table 75 Technical Levels of Service: Vehicles Service Attribute Technical Metric Current LOS (2024) Safe & Regulatory Percentage of vehicle operators with an AZ license 100% Percentage of vehicle operators with a DZ license 0% Number of vehicle major defects that caused a vehicle to be out of service for over a 48-hour period 0 Number of motor vehicle accidents involving municipal vehicles 0 Affordability O&M annual cost $101,802.70 Sustainability Average condition of vehicles assets Fair (52%) Township of Mulmur Asset Management Plan 2025 149 Vehicles Service Attribute Technical Metric Current LOS (2024) % of vehicles in fair or better condition 47% % of vehicles in poor or worse condition 53% Actual annual capital budget: average required annual capital requirements $0 : $149,000 (0 : 1) 11.8 Proposed Levels of Service As per O. Reg. 588/17, by July 1, 2025, municipalities are required to consider proposed levels of service (LOS), discuss the associated risks and long-term sustainability of these service levels, and explain the Township's ability to afford the proposed LOS. Table 76 outlines the proposed LOS scenarios that were analyzed for vehicles. Further explanation and proposed LOS analysis at the portfolio level can be found in Section 4 Proposed Levels of Service Analysis. Table 76 Proposed LOS: Vehicles Segment Average Annual Requirement Selection -5% Condition (45%) Maintain Baseline (50%) +5% Condition (55%) No Target Heavy Duty $132,987 $133,561 $136,730 $119,197 Maintain Light Duty $14,202 $15,254 $15,254 $15,672 Maintain TOTAL $147,189 $148,815 $151,984 $134,869 $148,815 Township of Mulmur Asset Management Plan 2025 150 Vehicles Strategies Township of Mulmur Asset Management Plan 2025 151 Growth 12 Growth The demand for infrastructure and services will change over time based on a combination of internal and external factors. Understanding the key drivers of growth and demand will allow the Township to plan for new infrastructure more effectively, and the upgrade or disposal of existing infrastructure. Increases or decreases in demand can affect what assets are needed and what level of service meets the needs of the community. 12.1 Growth Assumptions 12.1.1 Mulmur Official Plan (April 2012) The Official Plan for the Township of Mulmur was adopted in 2012 and has a planning horizon of 20 years. The Official Plan aims to guide land use and development in a manner that minimizes conflicts, preserves the area's rural and natural character, and supports sustainable growth. The plan seeks to support the Township's development in alignment with environmental conservation, economic vitality, and community well-being. The Official Plan focuses on ensuring controlled development, protecting significant natural features and agricultural lands, fostering urban and rural integration, and promoting economic opportunities within the community. Additionally, the plan emphasizes the preservation of water sources, cultural heritage, and recreational spaces, while aiming to maintain a balanced fiscal impact and a healthy mix of residential and commercial-industrial assessments. The Settlement Areas within the Township of Mulmur will be the designated focal points for growth, aiming to balance the preservation of their rural essence with the provision of essential services, infrastructure, and quality of life improvements. The Township's objectives include enhancing the unique character of each settlement, ensuring safety, accessibility to services, and environmental sustainability in development, along with preserving natural features. These goals are guided by the Hamlet and Community designations, which prioritize creating safe, secure, and desirable living spaces with ample recreational opportunities, all while adhering to relevant planning acts and policies. The following table demonstrates population growth and total number of private dwellings from 1996 to 2021 as indicated from Statistics Canada below: Township of Mulmur Asset Management Plan 2025 152 Growth Historical Figures 1996 2001 2006 2011 2016 2021 Population 2,903 3,099 3,318 3,391 3,478 3,571 Population Change N/A 6.8% 7.1% 2.2% 2.6% 2.7% Private Dwellings N/A 1,443 1,479 1,643 1,674 1,682 According to the Growth Plan for the Greater Golden Horseshoe, Dufferin County is projected to reach a population of 80,000 and provide 27,000 jobs by 2031. In line with this projection, the population of the Township of Mulmur is anticipated to rise to about 4,290, and employment opportunities are expected to expand to roughly 820 jobs by the same year. Analysis of these forecasts alongside Statistics Canada data suggests that while the actual population is indeed growing, it may not be advancing as quickly as projected by the Official Plan. 12.2 Impact of Growth on Lifecycle Activities Planning for forecasted population growth may require the expansion of existing infrastructure and services. As growth-related assets are constructed or acquired, they should be integrated into the Township's AMP. While the addition of residential units will add to the existing assessment base and offset some of the costs associated with growth, the Township will need to review the lifecycle costs of growth-related infrastructure. These costs should be considered in long-term funding strategies that are designed to, at a minimum, maintain the current level of service. For the near- to mid-term, the projected population growth in the Township is not expected to significantly impact the current portfolio of assets required by the Township to maintain acceptable service levels. Township of Mulmur Asset Management Plan 2025 153 Financial Strategy 13 Financial Strategy For an asset management plan to be effective and meaningful, it must be integrated with financial planning and long-term budgeting. The development of a comprehensive financial plan will allow the Township of Mulmur 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:  The financial requirements for: - Existing assets - Existing service levels - Requirements of contemplated changes in service levels (none identified for this plan) - Requirements of anticipated growth (none identified for this plan)  Use of traditional sources of municipal funds: - Tax levies - User fees - Debt - Development charges  Use of non-traditional sources of municipal funds: - Reallocated budgets - Partnerships - Procurement methods  Use of Senior Government Funds: - Canada Community-Building Fund (CCBF) - 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 Township of Mulmur Asset Management Plan 2025 154 Financial Strategy dependent on receiving a one-time grant, the replacement cost included in the financial strategy is the net of such grant being received. If the financial plan component results in a funding shortfall, the Province requires the inclusion of a specific plan as to how the impact of the shortfall will be managed. In determining the legitimacy of a funding shortfall, the Province may evaluate a Township's approach to the following:  In order to reduce financial requirements, consideration has been given to revising service levels downward.  All asset management and financial strategies have been considered. For example: - If a zero-debt policy is in place, is it warranted? If not the use of debt should be considered. - Do user fees reflect the cost of the applicable service? If not, increased user fees should be considered. 13.1 Annual Requirements & Capital Funding 13.1.1 Annual Requirements The annual requirements represent the amount the Township should allocate annually to each asset category to meet replacement needs as they arise, prevent infrastructure backlogs and achieve long-term sustainability. In total, the Township must allocate approximately $2,095,000 annually to address capital requirements for the assets included in this AMP. For most asset categories the annual requirement has been calculated based on a "replacement only" scenario, in which capital costs are only incurred at the construction and replacement of each asset. Township of Mulmur Asset Management Plan 2025 155 Financial Strategy Figure 60 Annual Capital Funding Requirements by Asset Category 13.1.2 Annual Funding Available Figure 61 Annual Requirements vs. Capital Funding Available $76k $125k $149k $312k $354k $506k $573k $100k $200k $300k $400k $500k $600k Land Improvements Water Network Vehicles Machinery & Equipment Facilities Road Network Bridges & Culverts $39k $281k $166k $343k $510k $76k $125k $149k $312k $354k $506k $573k $200k $400k $600k Land Improvements Water Network Vehicles Machinery & Equipment Facilities Road Network Bridges & Culverts Average Annual Requirements Actual Reinvestment Rate Township of Mulmur Asset Management Plan 2025 156 Financial Strategy Based on a historical analysis of sustainable capital funding sources, the Township is committing approximately $1,340,000 towards capital projects per year. Given the annual capital requirement of $2,095,000, there is currently a funding gap of $755,000 annually. 13.2 Funding Objective We have developed a scenario that would enable Township of Mulmur to achieve full funding within 5 years for the following assets:  Tax-Funded Assets: Road Network, Bridges & Culverts, Facilities, Land Improvements, Machinery & Equipment, Vehicles  Rate-Funded Assets: Water 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. 13.3 Financial Profile: Tax-Funded Assets 13.3.1 Current Funding Position The following tables show, by asset category, Mulmur's average annual asset investment requirements, current funding positions, and funding increases required to achieve full funding on assets funded by taxes. The average annual investment requirement for the above categories is $1,970,000. Annual revenue currently allocated to these assets for capital purposes is $1,301,000 leaving an annual deficit of $669,000. Put differently, these infrastructure categories are currently funded at 66% of their long-term requirements. Township of Mulmur Asset Management Plan 2025 157 Financial Strategy Table 77 Annual Available Funding for Tax-Funded Assets Asset Category AAR Annual Funding Available24 Annual Deficit Taxes CCBF OCIF Total Road Network $506k $100k $115k $128k $343k $162k Bridges & Culverts $573k $510k $510k $63k Facilities $354k $166k $166k $188k Land Improvements $76k - - $76k Machinery & Equipment $312k $281k $281k $31k Vehicles $149k - - $149k TOTAL $2.0m $1.1m $115k $128k $1.3m $669k 13.3.2 Full Funding Requirements In 2023, the Township of Mulmur budgeted annual tax revenues of approximately $4.8 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: Table 78 Tax Increase Requirements for Full Funding Asset Category Tax Change Required for Full Funding Road Network 3.4% Bridges & Culverts 1.3% Facilities 4.0% Land Improvements 1.6% Machinery & Equipment 0.7% Vehicles 3.1% TOTAL 14.1% 24 Based on 2024 capital budget. Township of Mulmur Asset Management Plan 2025 158 Financial Strategy The following changes in costs and/or revenues over the next number of years should also be considered in the financial strategy:  Mulmur's debt payments for these asset categories will be decreasing $39,000 by 2039. Our scenario modeling includes capturing the above changes and allocating them to the infrastructure deficit outlined above. The table below outlines this concept and presents several options: Table 79 Tax Increase Options 5-20 Years 5 Years 10 Years 15 Years 20 Years Infrastructure Deficit $669,000 $669,000 $669,000 $669,000 Change in Debt Costs -($5,000) -($12,000) -($39,000) -($39,000) Resulting Infrastructure Deficit: $664,000 $657,000 $630,000 $630,000 Tax Increase Required 14.1% 14.1% 14.1% 14.1% Annually: 2.6% 1.3% 0.8% 0.6% 13.3.3 Financial Strategy Recommendations Considering all the above information, we would recommend the 15-year option. This involves full funding being achieved over 15 years by:  Increasing tax revenues by 0.8% each year for the next 15 years solely for the purpose of phasing in full funding to the asset categories covered in this section of the AMP in alignment with the targets set out in the proposed levels of service.  Continuing to allocate the current CCBF and OCIF revenue as outlined previously.  Increasing existing and future infrastructure budgets by the applicable inflation index on an annual basis in addition to the deficit phase-in. The Township of Mulmur's current strategy is to increase the amount of property tax allocated to capital projects (currently approximately $1.3 million) by 3%-5% Township of Mulmur Asset Management Plan 2025 159 Financial Strategy annually. This would cover the deficit for both tax- and rate-funded assets within the next 9-15 years. Notes: 1. As in the past, periodic senior government infrastructure funding will most likely be available during the phase-in period. By Provincial AMP rules, this periodic funding cannot be incorporated into an AMP unless there are firm commitments in place. We have included OCIF formula-based funding, if applicable, since this funding is a multi-year commitment25. 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 15 years and provides financial sustainability over the period modeled, the recommendations do require prioritizing capital projects to fit the resulting annual funding available. 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. 13.4 Financial Profile: Rate-Funded Assets 13.4.1 Current Funding Position The following table shows, by asset category, Mulmur's average annual asset investment requirements, current funding positions, and funding increases required to achieve full funding on assets funded by rate. The average annual investment requirement for the is $125,000. Annual revenue currently allocated to these assets for capital purposes is $39,000 leaving an annual deficit of $86,000. Put differently, these infrastructure categories are currently funded at 31% of their long-term requirements. 25 The Township 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. Township of Mulmur Asset Management Plan 2025 160 Financial Strategy Table 80 Annual Available Funding for Rate-Funded Assets Asset Category AAR Annual Funding Available26 Annual Deficit Taxes CCBF OCIF Total Water Network $125k $39k $39k $86k 13.4.2 Full Funding Requirements In 2023, the Township of Mulmur budgeted annual rate revenues of approximately $39,000. As illustrated in the following table, without consideration of any other sources of revenue or cost containment strategies, full funding would require the following rate change over time: Table 81 Rate Increase Requirements for Full Funding Our scenario modeling includes capturing the above changes and allocating them to the infrastructure deficit outlined above. The table below outlines this concept and presents several options: Table 82 Rate Increase Options 5-20 Years 5 Years 10 Years 15 Years 20 Years Infrastructure Deficit $86,000 $86,000 $86,000 $86,000 Change in Debt Costs N/A N/A N/A N/A Resulting Infrastructure Deficit: $86,000 $86,000 $86,000 $86,000 Rate Increase Required 120.4% 120.4% 120.4% 120.4% Annually: 17.1% 8.2% 5.4% 4.0% 26 Based on 2024 capital budget. Asset Category Rate Change Required for Full Funding Water Network 120.4% Township of Mulmur Asset Management Plan 2025 161 Financial Strategy 13.4.3 Financial Strategy Recommendations Considering all the above information, we would recommend the 20-year option. This involves full funding being achieved over 20 years by:  Increasing rate revenues by 4.0% 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 in alignment with the targets set out in the proposed levels of service.  Increasing existing and future infrastructure budgets by the applicable inflation index on an annual basis in addition to the deficit phase-in. The Township of Mulmur's current strategy is to increase the amount of property tax allocated to capital projects (currently approximately $1.3 million) by 3%-5% annually. This would cover the deficit for both tax- and rate-funded assets within the next 9-15 years. 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. 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. 13.5 Use of Debt Debt can be strategically utilized as a funding source within the long-term financial plan. The benefits of leveraging debt for infrastructure planning include: Township of Mulmur Asset Management Plan 2025 162 Financial Strategy  The ability to stabilize tax & user rates when dealing with variable and sometimes uncontrollable factors  Equitable distribution of the cost/benefits of infrastructure over its useful life  A secure source of funding  Flexibility in cash flow management Debt management policies and procedures with limitations and monitoring practices should be considered when reviewing debt as a funding option. In efforts to mitigate increasing commodity prices and inflation, interest rates have been rising. Sustainable funding models that include debt need to incorporate the now current realized risk of rising interest rates. The following tables outline how Mulmur has historically used debt for investing in the asset categories as listed. As of year-end 2024, there is currently $266,000 of debt outstanding for the assets covered by this AMP with corresponding principal and interest payments of $39,000, well within its provincially prescribed maximum of $1.3 million. Table 83 Mulmur Use of Debt 2020-2024 Table 84 Mulmur Principal and Interest Payments Asset Category Current Debt Outstanding Use of Debt in the Last Five Years 2020 2021 2022 2023 2024 Bridges & Structural Culverts $266,400 $666k - - - - Non-Core Assets - $250k - - - - TOTAL $266k $916k - - - - Asset Category Principal & Interest Payments in the Next Ten Years 2025 2026 2027 2028 2029 2034 Bridges & Structural Culverts $39k $38k $37k $35k $34k $28k Buildings $78k $78k $37k $78k $78k $78k TOTAL $39k $38k $37k $35k $34k $28k Township of Mulmur Asset Management Plan 2025 163 Financial Strategy The revenue options outlined in this plan allows the Township of Mulmur to fully fund its long-term infrastructure requirements for the selected proposed levels of service without further use of debt. 13.6 Use of Reserves 13.6.1 Available Reserves Reserves play a critical role in long-term financial planning. The benefits of having reserves available for infrastructure planning include:  The ability to stabilize tax rates when dealing with variable and sometimes uncontrollable factors  Financing one-time or short-term investments  Accumulating the funding for significant future infrastructure investments  Managing the use of debt  Normalizing infrastructure funding requirement There is considerable debate in the municipal sector as to the appropriate level of reserves that a Township should have on hand. There is no clear guideline that has gained wide acceptance. Factors that municipalities should take into account when determining their capital reserve requirements include:  Breadth of services provided  Age and condition of infrastructure  Use and level of debt  Economic conditions and outlook  Internal reserve and debt policies. As of December 31, 2023, the Township's reserves totaled an approximate $4.2 million. These reserves are available for use by applicable asset categories during the phase-in period to full funding. This coupled with Mulmur's judicious use of debt in the past, allows the scenarios to assume that, if required, available reserves and debt capacity can be used for high priority and emergency infrastructure investments in the short- to medium-term. Township of Mulmur Asset Management Plan 2025 164 Financial Strategy 13.6.2 Recommendation In 2025, Ontario Regulation 588/17 requires Mulmur to integrate proposed levels of service for all asset categories in its asset management plan update. We recommend that future planning should reflect adjustments to service levels and their impacts on reserve balances. The funding strategy outlined above aligns with achieving and maintaining the proposed levels of service outlined in Section 4. Township of Mulmur Asset Management Plan 2025 165 Recommendations & Key Considerations 14 Recommendations & Key Considerations 14.1 Financial Strategies  Review the feasibility of adopting a full-funding scenario to achieve 100% of average annual funding requirements necessary for the proposed levels of service outlined in Section 4. This includes increasing taxes by 0.8% per year over a period of 15 years and rates by 4.0% per year over a period of 20 years or following the Township's current strategy of increasing the amount of property tax allocated to capital projects by 3%-5% annually, which would cover the deficit for both tax- and rate-funded assets within the next 9-15 years, respectively.  Continued allocation of OCIF and CCBF funding as previously outlined.  Increasing existing and future infrastructure budgets by the applicable inflation index on an annual basis in addition to the deficit phase-in.  Continue to apply for project specific grant funding to supplement sustainable funding sources. 14.2 Asset Data  Update replacement cost information on a regular basis, every 1-2 years, especially for the linear road segments. - These costs should continually be evaluated to determine their accuracy and reliability. - Replacement costs should be updated according to the best available information on the cost to replace the asset in today's value. - Consider developing a framework for the frequency of replacement cost updates. - Continue to review and validate inventory data, assessed condition data, rehabilitation costs, and replacement costs for all bridges and structural culverts upon the completion of OSIM inspections every 2 years and promptly updating the Citywide database to drive strategic capital planning. Township of Mulmur Asset Management Plan 2025 166 Recommendations & Key Considerations - 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 labor 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. - Componentize assets where possible to assess their condition, maintenance needs, and replacement costs accurately.  Consider developing a condition assessment program that identifies assessment methodology, persons responsible, frequency of assessment, and updates of assessment information to the asset management database. - Consider completing an updated assessment of all roads every 5-7 years as part of a dedicated condition strategy program. The information should be uploaded into the Citywide database promptly to drive strategic capital planning. - If a formal building condition assessment is not performed, request condition information from contractors who service critical building systems like HVAC and fire protection systems. Record this information in Citywide and use it to inform asset management decisions including capital planning. - Where resources are limited, consider prioritizing assessments to assets based on their criticality to the organization or another means of prioritization. - Incorporate condition information, where possible, to improve risk and lifecycle strategy models. Staff should collect cursory condition information (very good-very poor rating scale) for all visible non-core assets or where visible core asset conditions are outdated and integrate it into the asset management database.  Continue to refine and update asset attribute information, such as traffic counts, road type, or drainage adequacy, to ensure accuracy of the risk and lifecycle strategy outcomes. - Review road signs and barriers inventory to determine if a comprehensive and accurate inventory has been compiled. Township of Mulmur Asset Management Plan 2025 167 Recommendations & Key Considerations  Review assets that have surpassed their estimated useful life to determine if immediate replacement is required or whether these assets are expected to remain in service. - Like replacement costs, an asset's established serviceable life can have dramatic impacts on all projections and analyses, including condition, long-range forecasting, and financial recommendations. - Periodically reviewing and updating these values to better reflect in- field performance and staff judgement is recommended. 14.3 Lifecycle Management Strategies  Continuously review, refine, and calibrate lifecycle and risk profiles to better reflect actual practices and improve capital projections. In particular: - The timing of various lifecycle events, the triggers for treatment, anticipated impacts of each treatment, and costs - The various attributes used to estimate the likelihood and consequence of asset failures, and their respective weightings  Evaluate the efficacy of the Township's lifecycle management strategies at regular intervals to determine the impact cost, condition, and risk. This could be done by updating the condition assessment data whenever new data becomes available and rerunning the capital projections and risk reports. 14.4 Risk & Levels of Service  Implement risk-based decision-making as part of asset management planning and budgeting processes. This should include the regular review of high-risk assets to determine appropriate risk mitigation strategies. - 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. As the data evolves and new attribute information is obtained, these models should also be refined and updated. Township of Mulmur Asset Management Plan 2025 168 Recommendations & Key Considerations  Available data on current performance should be centralized and tracked to support any calibration of service levels on proposed levels of service in the future. - 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. Township of Mulmur Asset Management Plan 2025 169 Appendices Township of Mulmur Asset Management Plan 2025 Appendix A 170 Infrastructure Report Card Appendix A Infrastructure Report Card Asset Category Replacement Cost Average Condition Financial Capacity Road Network $13.6 m Fair (55%) Annual Requirement: $506,000 Funding Available: $343,000 Annual Deficit: $162,000 Bridges & Culverts $45.1 m Good (69%) Annual Requirement: $573,000 Funding Available: $510,000 Annual Deficit: $63,000 Facilities $22.0 m Good (66%) Annual Requirement: $354,000 Funding Available: $166,000 Annual Deficit: $188,000 Land Improvements $1.6 m Fair (52%) Annual Requirement: $76,000 Funding Available: - Annual Deficit: $76,000 Machinery & Equipment $3.7 m Fair (50%) Annual Requirement: $312,000 Funding Available: $281,000 Annual Deficit: $31,000 Vehicles $1.7 m Fair (52%) Annual Requirement: $149,000 Funding Available: - Annual Deficit: $149,000 Water Network $10.8 m Good (78%) Annual Requirement: $125,000 Funding Available: $39,000 Annual Deficit: $86,000 TOTAL $98.6 Good (66%) Annual Requirement: $2.1 m Funding Available: $1.34 m Annual Deficit: $755 k Township of Mulmur Asset Management Plan 2025 Appendix B 171 10-Year Capital Requirements Appendix B 10-Year Capital Requirements Road Network Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Barriers - - - $4k - - $51k - $6k - Paved Roads - - $633k $290k $1.3m $182k $444k $236k $339k $397k Road Signs - - $89k $16k $17k $19k $64k - - $14k Small Culverts - - $66k $131k $69k $67k $61k $60k $59k $60k Storm Drains - - - - - - - - - - Streetlights - - - - - - - - - - TOTAL - - $788k $440k $1.4m $269k $621k $297k $404k $470k Township of Mulmur Asset Management Plan 2025 Appendix B 172 10-Year Capital Requirements Bridges & Structural Culverts Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Bridges - - - - - - - - $445k $389k Structural Culverts - - - - - - - - - - TOTAL - - - - - - - - $445k $389k Machinery and Equipment Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Attachments $299k $32k $34k $56k $27k $56k $48k - - $26k Fueling Station $78k - - - - - $20k - - - Heavy Equipment - - $203k $225k - $398k - - - $621k Medium Equipment $68k $12k - $42k $93k $10k $135k - $15k - Small Equipment $122k $27k $20k $34k $45k $30k $20k $34k $34k $34k Solar Panels - - - - - - - - - - TOTAL $568k $71k $256k $357k $164k $494k $222k $34k $49k $681k Township of Mulmur Asset Management Plan 2025 Appendix B 173 10-Year Capital Requirements Facilities Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Administration Building - - - - - - - - - - Arena - - - - - - $150k $329k $24k - Fire Hall - - - - $60k - - - - - Gravel Pit Scale House - - - - - - - - - - Mansfield Public Washroom - - - - - - - - - - Public Works Building - - - - $3k - - - - - Sand Dome - - - - - - - - - $95k Utility Storage - - - - - - - - - - TOTAL - - - - $64k - $150k $329k $24k $95k Township of Mulmur Asset Management Plan 2025 Appendix B 174 10-Year Capital Requirements Land Improvements Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Ball Diamond - - - - - - - $50k - - Fencing $8k $3k - - - - - $3k $24k - Multipurpose Pad - - - - - - - $37k - - Outdoor Furnishings - - - - - - - - - - Parking Lot - - - - - - $200k $340k - - Play Structure - - - - - - - $20k - - Trail - - - - - - - - $43k - Wells $45k - $30k - - - - - - - TOTAL $53k $3k $30k - - - $200k $451k $66k - Township of Mulmur Asset Management Plan 2025 Appendix B 175 10-Year Capital Requirements Vehicles Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Heavy Duty $58k - $378k - - $378k - - - $378k Light Duty - - $44k $46k - - - $53k - - TOTAL $58k - $422k $46k - $378k - $53k - $378k Water Network Segment 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Hydrants - - - - - - - - - - Municipal Wells - - - - - - $9k - - - Valves & Fittings - - - - - - - - - - Water Buildings - - - - - - $76k - $19k - Water Equipment - - $6k $173k - - - - - - Water Mains - - - - - - - - - - Water Meters - - - - $22k $2k $3k $2k $3k $3k TOTAL - - $6k $173k $22k $2k $88k $2k $22k $3k Township of Mulmur Asset Management Plan 2025 Appendix C 176 Level of Service Maps Appendix C Level of Service Maps Road Network Map Township of Mulmur Asset Management Plan 2025 Appendix D 177 Risk Rating Criteria Appendix D Risk Rating Criteria Probability of Failure Asset Category Risk Classification Risk Criteria Value/Range Probability of Failure Score All Categories Economic (100%) Condition 80 - 100 1 60 - 79 2 40 - 59 3 20 - 39 4 0 - 29 5 Consequence of Failure Asset Category Risk Classification Risk Criteria Value/Range Consequence of Failure Score Asphalt Roads (continued on next page) Economic (80%) Replacement Cost $0 - $10,000 1 $10,001 - $50,000 2 $50,001 - $100,000 3 $100,001 - $300,000 4 $300,001+ 5 Township of Mulmur Asset Management Plan 2025 Appendix D 178 Risk Rating Criteria Asset Category Risk Classification Risk Criteria Value/Range Consequence of Failure Score Operational (20%) AADT 0 - 49 1 50 - 199 2 200 - 499 3 500+ 4 Bridges & Culverts Economic (80%) Replacement Cost $0 - $20,000 1 $20,001 - $50,000 2 $350,001 - $100,000 3 $100,001 - $250,000 4 $250,001+ 5 Operational (20%) Detour Length (m) 80+ 1 60 - 79 2 40 - 59 3 20 - 39 4 0 - 19 5 Township of Mulmur Asset Management Plan 2025 Appendix D 179 Risk Rating Criteria Asset Category Risk Classification Risk Criteria Value/Range Consequence of Failure Score Buildings Economic (33%) Replacement Cost $0 - $5,000 1 $5,001 - $50,000 2 $50,001 - $100,000 3 $100,001 - $500,000 4 $500,001+ 5 Operational (33%) Segment Building Equipment 2 Exterior, HVAC, Interior, Septic 4 Building Structure, Roof 5 Social (34%) Days of Closure 0 1 1 - 5 2 6 - 10 3 11 - 20 4 21+ 5 Watermains (continued on next page) Economic (70%) Replacement Cost $0 - $5,000 1 $5,001 - $20,000 2 $20,001 - $50,000 3 Township of Mulmur Asset Management Plan 2025 Appendix D 180 Risk Rating Criteria Asset Category Risk Classification Risk Criteria Value/Range Consequence of Failure Score $50,001 - $100,000 4 $100,001+ 5 Operational (30%) Structure Type Raw Main 2 Distribution Main 4 Remaining Water Network Assets Economic (100%) Replacement Cost $0 - $5,000 1 $5,001 - $20,000 2 $20,001 - $50,000 3 $50,001 - $100,000 4 $100,001+ 5 All Remaining Assets Economic (100%) Replacement Cost $0 - $15,000 1 $15,001 - $50,000 2 $50,001 - $100,000 3 $100,001 - $300,000 4 $300,001+ 5 Township of Mulmur Asset Management Plan 2025 Appendix E 181 Community Engagement Appendix E Community Engagement Have you read the Township's Asset Management Plan? Demographics What is your municipal residency status? Yes (13 responses, 45%) No (16 responses, 55%) Full time resident - property owner (97%) Part time resident - property owner (3%) Township of Mulmur Asset Management Plan 2025 Appendix E 182 Community Engagement Which planning area best describes where you live within the Township? Family Structure Age Range Semi-urban (reside within a hamlet or rural subdivision) (10%) Rural (reside on a rural residential lot or farm) (90%) Single (1, 3%) Married/Common-Law Partner (8, 28%) Married/Common- Law with Children (11, 38%) Retired Single/Spouse (9, 31%) 35 - 44 (6, 21%) 45 - 54 (5, 17%) 55 - 64 (5, 17%) 65+ (13, 45%) Township of Mulmur Asset Management Plan 2025 Appendix E 183 Community Engagement Communication Preferences Please indicate how you would prefer to learn about Township issues/events/initiatives: What is your preferred method to receive communications about municipal documents and plans, such as the Asset Management Plan? Select all that apply. In-person Information Sessions with Council and Staff Newspapers (Print) The Township's Social Media The Township's Website Not at All Hardly Prefer Somewhat Prefer Preferred Highly Preferred 39% 7% 20% 16% 19% Email Mail The Township's Website The Township's Social Media In-Person Information Sessions Township of Mulmur Asset Management Plan 2025 Appendix E 184 Community Engagement Community Values Please indicate how important the following features are in making the Township a great place to live: Connectivity to Urban Centres Heritage or Historical Site Availability of Employment Recreation and Sports Facilities Nice Residential and/or Rural Neighbourhoods "Small Town Feel", "Garden Township" Outdoor Open Space, Parks, and Trails Affordable Living Moderate Tax Rates Safe and Well-Maintained Roads Community Safety Not Important Hardly Somewhat Important Extremely Important Township of Mulmur Asset Management Plan 2025 Appendix E 185 Community Engagement The Township is growing. This means spending on infrastructure services may need to change over time to meet the evolving needs of the community. How important are the following factors in deciding if the Township's spending on infrastructure is best for the community? Preserve the Current Character and Charm Attract New Residents Attract New Businesses Limit Cost Increase to Residents Support the Local Economy Protect the Environment Support the Older Population Support Young Families and Singles Support the Vulnerable Population Not Important Hardly Somewhat Important Extremely Important Township of Mulmur Asset Management Plan 2025 Appendix E 186 Community Engagement Municipal Services How important are the following services to your household? For each of the following services, indicate your preference for future levels of service. "Level of service" describes the quality and amount of services offered by the municipality. It looks at how well services like road maintenance, waste collection, snow removal, and public safety meet the community's needs and expectations. A higher level of service typically means these Arts, Culture, and Heritage Opportunities Building Services Recreation, Leisure, and Community Programs Special Community Events Economic Investment and Local Jobs By Law Enforcement Outdoor Open Space, Parks, and Trails Maintenance and Upkeep of Public Property Communication from the Township Reliable and Safe Utilities Safe and Well-Maintained Roads and Bridges Police, Fire and Emergency Services Not Important Hardly Somewhat Important Extremely Important Township of Mulmur Asset Management Plan 2025 Appendix E 187 Community Engagement services are provided more often or at a better quality, while a lower level of service might mean they are less frequent or of lower quality. Arts, Culture, and Heritage Opportunities Economic Investment and Local Jobs Special Community Events Building Services Maintenance and Upkeep of Public Property Recreation, Leisure, and Community Programs Outdoor Open Space, Parks, and Trails Reliable and Safe Utilities Communication from the Township By Law Enforcement Safe and Well-Maintained Roads and Bridges Police, Fire and Emergency Services Decrease Service Level Maintain Service Level Increase Service Level Township of Mulmur Asset Management Plan 2025 Appendix E 188 Community Engagement For each of the following services, indicate your willingness to pay for improvements: Municipal Infrastructure How would you describe your experience with the following infrastructure in terms of AVAILABILITY & RELIABILITY? Availability/Reliability: refers to how well an infrastructure asset, like a road, bridge, or building, can continue working as expected without breaking down or facing major issues over time. It shows how dependable and consistent the asset is in doing its job. For example, a reliable road network allows for transportation without frequent problems, and a Building Services Economic Investment and Local Jobs Arts, Culture, and Heritage Opportunities Special Community Events By Law Enforcement Communication from the Township Recreation, Leisure, and Community Programs Maintenance and Upkeep of Public Property Outdoor Open Space, Parks, and Trails Safe and Well-Maintained Roads and Bridges Reliable and Safe Utilities Police, Fire and Emergency Services Not Needed Not Willing Hardly Somewhat Willing Very Willing Township of Mulmur Asset Management Plan 2025 Appendix E 189 Community Engagement reliable bridge handles heavy traffic and weather conditions without developing structural damage. How would you describe your experience with the following infrastructure in terms of CONDITION? Condition: relates to the physical state and structural integrity of an asset. It indicates the current quality and performance capability based on factors like wear and tear, age, maintenance history, and external factors such as weather or heavy use. The condition of a road, for instance, might be assessed based on surface smoothness, potholes, the presence of cracks, and overall safety. Municipal Water System Sidewalks Community Centres Outdoor Open Space, Parks, and Trails Emergency Vehicles and Equipment Roads Bridges Very Dissatisfied Dissatisfied Unsure Satisfied Very Satisfied Sidewalks Municipal Water System Community Centres Outdoor Open Space, Parks, and Trails Roads Emergency Vehicles and Equipment Bridges Very Dissatisfied Dissatisfied Unsure Satisfied Very Satisfied Township of Mulmur Asset Management Plan 2025 Appendix E 190 Community Engagement How would you describe your experience with the following infrastructure in terms of SAFETY? Safety: refers to how well the infrastructure is designed, built, and maintained to protect people from harm. It means these structures are strong, reliable, and regularly checked to ensure they meet safety standards, reducing the risk of accidents or failures that could impact the community. For the following, indicate your willingness to pay for improvements: Sidewalks Municipal Water System Roads Community Centres Outdoor Open Space, Parks, and Trails Bridges Emergency Vehicles and Equipment Very Dissatisfied Dissatisfied Unsure Satisfied Very Satisfied Sidewalks Municipal Water System Community Centres Outdoor Open Space, Parks, and Trails Roads Bridges Emergency Vehicles and Equipment Not Needed Not Willing Hardly Somewhat Willing Very Willing Township of Mulmur Asset Management Plan 2025 Appendix F 191 Data Quality Dimensions Appendix F Data Quality Dimensions The quality of data affects the reliability of its outputs, and the trust organizations have in those outputs, especially when used to inform decisions. As a best practice, the quality of data can be evaluated based on the six data quality dimensions. These quality dimensions are as follows: 1. Accuracy: The information collected reflects reality and can be confirmed with a verifiable source (i.e., VIN information). An example of accuracy not being met is the in-service year on record is 1950 and the asset model indicates a service year of 1980. Accurate reporting assists in powerful and trusted reporting. 2. Completeness: Data is comprehensively collected so that it can deliver meaningful inferences and effectively inform decisions. For example, required fields are populated for all assets. 3. Consistency: Data on the same asset is consistent across multiple sources if applicable. For example, information in the Asset Management System matches information in the finance system. 4. Timeliness: Data is available when it is needed. This often requires limited lag time between the event that generates the asset data (i.e., condition assessment) and the updates to the system to reflect the event. 5. Validity: Consistent data format that is supported by any associated standards or structures. For example, the asset in service date is consistently formatted YYYY-MM-DD and not sometimes YYYY-DD-MM and month value is never greater than 12. 6. Uniqueness: Each asset appears only once in the system and there is no data duplication or overlaps. For example, each asset has a unique asset ID, no duplication of asset information. Township of Mulmur Asset Management Plan 2025 Appendix G 192 Condition Assessment Guidelines Appendix G Condition Assessment Guidelines The foundation of good asset management practice is accurate and reliable data on the current condition of infrastructure. Assessing the condition of an asset at a single point in time allows staff to have a better understanding of the probability of asset failure due to deteriorating condition. Condition data is vital to the development of data-driven asset management strategies. Without accurate and reliable asset data, there may be little confidence in asset management decision-making which can lead to premature asset failure, service disruption and suboptimal investment strategies. To prevent these outcomes, the Township's condition assessment strategy should outline several key considerations, including:  The role of asset condition data in decision-making  Guidelines for the collection of asset condition data  A schedule for how regularly asset condition data should be collected Role of Asset Condition Data The goal of collecting asset condition data is to ensure that data is available to inform maintenance and renewal programs required to meet the desired level of service. Accurate and reliable condition data allows municipal staff to determine the remaining service life of assets, and identify the most cost-effective approach to deterioration, whether it involves extending the life of the asset through remedial efforts or determining that replacement is required to avoid asset failure. In addition to the optimization of lifecycle management strategies, asset condition data also impacts the Township's risk management and financial strategies. Assessed condition is a key variable in the determination of an asset's probability of failure. With a strong understanding of the probability of failure across the entire asset portfolio, the Township can develop strategies to mitigate both the probability and consequences of asset failure and service disruption. Furthermore, with condition-based determinations of future capital expenditures, the Township can develop long-term financial strategies with higher accuracy and reliability. Township of Mulmur Asset Management Plan 2025 Appendix G 193 Condition Assessment Guidelines Guidelines for Condition Assessment Whether completed by external consultants or internal staff, condition assessments should be completed in a structured and repeatable fashion, according to consistent and objective assessment criteria. Without proper guidelines for the completion of condition assessments there can be little confidence in the validity of condition data and asset management strategies based on this data. Condition assessments must include a quantitative or qualitative assessment of the current condition of the asset, collected according to specified condition rating criteria, in a format that can be used for asset management decision-making. As a result, it is important that staff adequately define the condition rating criteria that should be used and the assets that require a discrete condition rating. When engaging with external consultants to complete condition assessments, it is critical that these details are communicated as part of the contractual terms of the project. There are many options available to the Township to complete condition assessments. In some cases, external consultants may need to be engaged to complete detailed technical assessments of infrastructure. In other cases, internal staff may have sufficient expertise or training to complete condition assessments. Developing a Condition Assessment Schedule Condition assessments and general data collection can be both time-consuming and resource-intensive. It is not necessarily an effective strategy to collect assessed condition data across the entire asset inventory. Instead, the Township should prioritize the collection of assessed condition data based on the anticipated value of this data in decision-making. The International Infrastructure Management Manual (IIMM) identifies four key criteria to consider when making this determination: 1. Relevance: every data item must have a direct influence on the output that is required 2. Appropriateness: the volume of data and the frequency of updating should align with the stage in the assets life and the service being provided 3. Reliability: the data should be sufficiently accurate, have sufficient spatial coverage and be appropriately complete and current 4. Affordability: the data should be affordable to collect and maintain