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FINAL REPORT
PREPARED BY HEMSON FOR THE TOWNSHIP OF PERTH SOUTH
ASSET MANAGEMENT PLAN
June 30th 2022
1000 - 30 St. Patrick Street, Toronto ON M5T 3A3
416 593 5090 | [email protected] | www.hemson.com
CONTENTS
EXECUTIVE SUMMARY
4
1.
INTRODUCTION
7
A.
Asset Management Overview
7
B.
Ontario's Asset Management Regulation (O. Reg. 588/17)
8
C.
Asset Management Plan Structure
10
2.
STATE OF LOCAL INFRASTRUCTURE
11
A.
Replacement Cost of Infrastucture
11
B.
Summary of State of Local Infrastructure
12
C.
Condition Assessments
13
3.
LEVEL OF SERVICE
16
A.
Current Levels of Service
16
B.
Costs to maintain Current Levels of Service
18
4.
ASSET MANAGEMENT STRATEGY
21
A.
Overview of Full LifeCycle Cost Model
21
B.
Risk Analysis
24
C.
Climate Change Integration
28
5.
FINANCING STRATEGY
31
A.
Operating Budget Expenditures
31
B.
Capital Replacement Schedule
32
C.
Summary of the Cumulative Full Lifecycle Costs
34
D.
Summary of Revenues
36
E.
Infrastructure Deficit & Financing Strategies
38
F.
Costs to Maintain Levels of Service and Relationship with Financing Strategies 42
G.
Available Funding Tools
43
H.
Financing and Financial Management Practices
46
I.
Future Demand
46
6.
CONTINUOUS IMPROVEMENTS & UPDATES
48
A.
Asset Management Internal Network
48
B.
Plan Monitoring
48
C.
Data Quality & Confidence
49
D.
Timeframes for Review & Updates
50
E.
Public Review & Comment
50
7.
CONCLUSIONS & RECOMMENDATIONS
52
A.
Summary of Key Findings
52
B.
Summary of Recommendations
53
List of Appendices
Appendix A - Definitions
55
Appendix B - State of Local Infrastructure Report Cards
57
Appendix C - Asset Management Strategy
68
Appendix D - Detailed Financing Strategy Tables
74
Appendix E - High Priority Capital Works
78
Introduction | 4
EXECUTIVE SUMMARY
The following summarizes the findings of the Township of Perth South's Asset Management
Plan (2022 Plan). The 2022 Plan follows the format set out in the Building Together: Guide
for Municipal Asset Management Plans and it has also been developed to be consistent with
the requirements of Ontario Regulation 588/17 Asset Management Planning for Municipal
Infrastructure (O. Reg. 588/17) with consideration to the Township's Strategic Asset
Management Policy. This 2022 Plan defines the current levels of service for all core and
non-core assets in compliance with the asset management regulation.
The 2022 Plan incorporates all assets that the Township is responsible for to provide a
comprehensive overview. All figures are in constant 2022 dollars and should be adjusted
annually to account for the effects of inflation.
A.
STATE OF LOCAL INFRASTRUCTURE
The Township's infrastructure has a total replacement value of $224.1 million.
Core Assets: Roads and related represent $193.7 million (86%) while bridges and
culverts represent $19.4 million (9%). The water system value is included in the
analysis but represents only $1.8 million.
Non-Core Assets: Buildings represents $3.8 million (1%) of the total value; and the
remaining assets represent $5.4 million (2%).
Overall, the Township's assets are considered to be in "Good" condition.
About $155.5 million (69%) of the Township's assets are considered to be in "Good"
or "Very Good" condition.
Conversely, about $19.2 million (9%) of infrastructure is considered to be in "Poor" to
"Very Poor" condition and $49.4 million (22%) are considered to be in "Fair"
condition. These assets in poor and very poor condition have largely been
categorized based on their remaining useful life. Despite this rating, these assets
continue to be in working condition.
B.
LEVEL OF SERVICE
The Township's current levels of service have been defined based on the condition of
assets and the measures required as per O. Reg. 588/17:
Overall the Township's asset base is considered to be in Good condition.
Introduction | 5
The Township's buildings, land improvements, roads and related are maintained in
"Good" condition.
The Township's bridges and culverts are maintained in "Fair" condition.
The Township's water systems, machinery and equipment are maintained in "Poor"
or "Very Poor" condition. The poor and very poor rating is a result of the data
maturity as most of the conditions are assessed relative to the age of the asset.
Specific level of service measures related to O. Reg. 588/17 are discussed in Section
3.
C.
FINANCING STRATEGY
The 30-year cumulative infrastructure deficit is estimated at about $62.1 million
based on maintaining current funding levels to 2051. It is unrealistic in the current
fiscal context to expect the Township to fully address the infrastructure deficit in the
short to medium term.
Two financing strategies were developed to determine what capital contributions
would be required to meet asset lifecycle needs over the 30-year period to 2051
while at the same time considering a more modest approach to capital funding from
taxation.1
Summary of Financing Strategies (in 2022 $)
Financing
Strategy
Tax Supported Strategy Parameters
Strategy 1
Close In-Year
Funding Gap
by 2041
Increase annual capital contributions by approximately $112,500 per year.
For 2023, the increase would be in addition to the estimated 2022 budgeted
funding identified.
The yearly revenue requirement is equivalent to 3.1% of the Township's
estimated 2022 tax levy ($3.6 million).
Strategy 2
Close In-Year
Funding Gap
by 2051
Increase annual capital contributions by approximately $71,800 per year. For
2023, the increase would be in addition to the estimated 2022 budgeted
funding identified.
The yearly revenue requirement is equivalent to about 2.0% of the Township's
estimated 2022 tax levy ($3.6 million).
1 Note: in any given year, actual capital expenditures may be greater or less than the noted capital contributions as
reserves are assumed to accommodate variances between the contributions and actual expenditures.
Introduction | 6
Of the two financing strategies identified for tax supported assets, strategy 2 poses the
greatest risk to the Township as the infrastructure deficit continues to grow to 2051, and
beyond. Strategy 1 demonstrates the infrastructure deficit being controlled over the
planning period. Detailed tables of each strategy are provided in Appendix E; however,
the tax supported cumulative infrastructure gaps are summarized in the graph below.
$-
$5
$10
$15
$20
$25
$30
$35
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Infrastructure Deficit Comparison ($ millions)
Strategy 1
Strategy 2
Strategy 1 (2051):
$13.2 million
Strategy 2 (2051):
$30.9 million
Introduction | 7
1. INTRODUCTION
The Township of Perth South's 2022 Asset Management Plan (2022 Plan) provides the
Township with a tool to assist in capital financing decisions. The Plan covers all municipal
assets: machinery & equipment, vehicles, buildings, land improvements, bridges & culverts,
roads & related, and water systems. The 2022 Plan follows the format set out by the Ministry
of Infrastructure through the Building Together: Guide for Municipal Asset Management
Plans and it has also been developed to be consistent with the requirements of Ontario
Regulation 588/17 Asset Management Planning for Municipal Infrastructure (O. Reg.
588/17) and the Township's Strategic Asset Management Policy. All figures reported in this
2022 Plan are in constant 2022 dollars and therefore should be adjusted annually to account
for the effects of inflation.
An Excel based asset management financial model has been developed as part of the 2022
Plan. The model contains the Township's asset inventory and it is intended to be updated on
a regular basis to inform future capital investment decisions. The model contains the
information required to update the State of the Local Infrastructure Report Cards presented
in Appendix B, which can be reproduced annually to help Council and the public understand
the state of assets and overall funding levels.
A.
ASSET MANAGEMENT OVERVIEW
Well-managed public infrastructure is vital to the prosperity and quality of life of
communities. Given the range and scope of services provided, Ontario municipalities have a
special responsibility in ensuring that infrastructure is planned, built, and maintained in a
sustainable way. A detailed asset management plan is essential to carry out this
responsibility. Asset management has several benefits, including:
Township can make informed and traceable decisions;
Township has the opportunity to coordinate and plan accordingly by taking a risk-based
approach to asset management;
Higher customer satisfaction is possible;
Documents a funding plan and strategy to manage infrastructure; and
Demonstrates compliance with regulations and legislation.
Asset management is an ongoing practice in the Township of Perth South. Council and staff
have applied sound asset management principles to maintain records on tangible capital
Introduction | 8
assets, monitor asset performance, and plan for infrastructure acquisition, repair,
rehabilitation, and replacement over the long-term.
The purpose of the 2022 Plan is to build on existing practices by identifying how best to
manage municipal infrastructure over the planning period to 2051. A strategy for maintaining
infrastructure so that existing service levels are maintained is an important element. In this
respect, the 2022 Plan has been prepared to be consistent with the Township's Strategic
Asset Management Policy. Ultimately, the 2022 Plan will provide Council with information
that can guide sustainable infrastructure investment decisions.
B.
ONTARIO'S ASSET MANAGEMENT REGULATION (O. REG. 588/17)
In 2015, the Province of Ontario established the Infrastructure for Jobs and Prosperity Act.
The purpose of this Act is to establish mechanisms to encourage principled, evidence-based
and strategic long-term infrastructure planning that supports job creation and training
opportunities, economic growth, protection of the environment, and incorporate design
excellence into infrastructure planning.
In December 2017, Ontario Regulation 588/17 Asset Management Planning for Municipal
Infrastructure (O. Reg. 588/17) was passed under the Infrastructure for Jobs and Prosperity
Act. The regulation requires municipalities to develop a Strategic Asset Management Policy,
which will help municipalities document the relationship between their Asset Management
Plan and existing policies and practices as well as provide guidance for future capital
investment decisions. Township Council approved the Strategic Asset Management Policy in
2019.
The regulations also contain more specific requirements on the type of analyses municipal
asset management plans should include. The aim is to provide guidance to municipalities so
that asset management plans are more consistent across the Province. Furthermore, in
March 2021 the Province amended the regulation to extend the regulatory timelines by one
year. Table 1 provides a summary of the key regulatory timelines as outlined by Regulation
588/17 and where the Township currently stands in the timeline.
Introduction | 9
Table 1
O. Reg. 588/17 Timeline
Regulation
Timeline
Summary of Requirements
Progress
July 1, 2019 Municipalities shall prepare
their first strategic asset
management policy.
Municipalities shall review,
and if necessary, update the
policy every 5 years.
Township Council approved the Strategic Asset
Management Policy in 2019.
The next review is expected in 2024, although
earlier reviews are encouraged whenever a
change in policy directives occurs.
July 1, 2022 Every municipality shall
prepare an asset
management plan in respect
of its core municipal
infrastructure assets.
The current levels of service
must be defined for all core
assets.
This 2022 Plan has incorporated the
information from the 2018 Road Management
Study and 2021 Bridges Inspection Report. This
includes condition assessments.
Current level of service measures have been
identified through this plan, with the Township
expecting to develop other metrics on an
ongoing basis.
It is expected that service level data continue
to be monitored and refined over the long-term.
July 1, 2024 Every municipality shall
prepare an asset
management plan in respect
of all other municipal
infrastructure assets.
The current levels of service
must be defined for all other
municipal assets
This 2022 Plan has incorporated all non-core
assets contained in the Township's TCA
information. Some of these assets include
condition assessments based on internal staff
reviews.
Current level of service measures have been
identified through this plan, with the Township
expecting to develop other metrics on an
ongoing basis.
July 1, 2025 Municipalities must
establish proposed levels of
service for a minimum of 10
years.
A lifecycle management and
financial strategy that
covers a minimum of 10
years.
The Township is expecting to develop the
analysis needed to establish proposed levels of
service and a financial plan to achieve the
proposed levels of service.
The proposed levels of service will be
established through consultation with Council
and the public in a subsequent update of this
2022 Plan.
Introduction | 10
C.
ASSET MANAGEMENT PLAN STRUCTURE
The 2022 Plan is developed to be consistent with the structure recommended through the
2013 Building Together: Guide for Municipal Asset Management Plans. At the same time, it
has been developed to meet the requirements of O. Reg. 588/17. Table 2 below provides a
guide to the sections of the 2022 Plan.
Table 2
Guide to the 2021 Asset Management Plan
Section
Requirement
Section 2 - State of Local
Infrastructure
Summarizes the state of the Township's infrastructure with
reference to infrastructure quantity and quality. Additional details
are provided in Appendix B.
Section 3 - Level of Service
A summary of the current levels of service is presented as well as
recommendations on additional metrics the Township can look to
track in the future. Additional details are provided in Appendix C.
Section 4 - Asset Management
Strategy
Sets out several strategies that will assist the Township in
maintaining assets so that current service levels are maintained.
This section also includes a risk analysis of Township assets.
Additional details are provided in Appendix D.
Section 5 - Financing Strategy
Establishes how asset management can be delivered in a
financially sustainable way for tax supported services. Additional
details are provided in Appendix E.
Section 6 - Continuous
Improvements and Updates
Provides key recommendations on how to administer the 2022
Plan and keep it up to date.
Section 7 - Conclusions and
Recommendations
Provides recommendations based on the analysis undertaken.
State of Local Infrastructure | 11
2. STATE OF LOCAL INFRASTRUCTURE
This section provides a summary of the Township's assets with reference to asset quantity
and quality. Some assets have condition assessments based on engineering inspections
(roads, bridges and culverts), while the balance of assets considered are based on the useful
life of the asset relative to its age as well as independent qualitative staff assessments
where appropriate. Useful life assumptions for the assets considered under this 2022 Plan
were acquired from the Township's tangible capital asset information. Detailed technical
information on the asset inventory, remaining useful life and conditions for each asset
category is provided in Appendix B.
A.
REPLACEMENT COST OF INFRASTUCTURE
The replacement cost for all Township assets considered in the 2022 Plan is estimated at
$224.1 million (represented in constant 2022 dollars). The largest share is related to roads
and related assets accounts for about $193.7 million (86%) of the total replacement cost.
The next highest share is attributed to bridges and culverts at $19.4 million (9%) and this is
followed by buildings at $3.8 million (2%).
The other asset categories in the Township's asset portfolio make up the remaining $7.2 million
(3%). These are made up of $2.4 million (1%) for machinery and equipment, $1.8 million (1%)
for vehicles, $1.8 million (1%) in water systems and $1.2 million (1%) for land improvements.2
The replacement costs have been developed based on historical information maintained by
staff in the asset inventory and recent benchmark costs from comparable municipalities
where possible. Where information was not available, historical acquisition costs were
inflated to current 2022 dollars at a rate of 2%. Detailed replacement cost for each asset
category is provided in Appendix B.
The two basic methods to estimate replacement costs have been utilized for the purposed of
this AMP:
Benchmark costs: Some replacement costs are based on benchmark engineering costs
from comparable municipalities to the Township, in particular for roads, select buildings
and bridges and culverts. Detailed unit costs are provided in Appendix B for these
assets.
2 Percentages may not add to 100% due to rounding.
State of Local Infrastructure | 12
Inflationary estimates: When assets cannot be estimated using benchmark costs, the
Township uses historical costs, estimated useful life and inflationary effects to
determine replacement value.
B.
SUMMARY OF STATE OF LOCAL INFRASTRUCTURE
Table 3 provides a summary of the state of local infrastructure for all asset categories
considered in this study which is valued at $224.1 million. The weighted remaining useful life
(WRUL) and weighted average condition (WAC) for each asset category has been derived
relative to the replacement value of each asset. Detailed information is provided in Appendix
B. The table illustrates several key findings:
Weighted Remaining Useful Life: the WRUL of the Township's assets is overdue. The
weighted average is largely driven by the relative age of roads & related and bridges &
culverts, which have the highest replacement value but are considered overdue in terms
of remaining useful life only. The majority of other assets have a weighted remaining
useful life of 0 - 49 years. Please note, that although overdue by virtue of useful life, the
asset conditions are a better indication of overall asset performance and are described
below.
Bridges & Culverts,
$19,410,000 , 9%
Machinery & Equipment,
$2,358,137 , 1%
Land Improvements,
$1,203,832 , 0%
Vehicles, $1,791,277 ,
1%
Buildings, $3,813,227 ,
2%
Water Systems,
$1,785,734 , 1%
Roads & Related ,
$193,740,386 , 86%
Figure 1
Summary of Assets by Total Replacement Value (2022 $)
State of Local Infrastructure | 13
Weighted Condition: Overall, the Township's assets are determined to be in "Good"
condition. Roads & related, land improvements and buildings are maintained in "Good"
condition, while the remaining assets are considered to be in "Fair" or "Poor" condition.
The poor condition assets generally use age as a proxy to determine condition. It is
expected that as data is refined and more accurate condition assessments are
undertaken (similar to roads, bridges and culverts), the overall condition would improve.
Table 3
Summary State of Local Infrastructure
Asset Type
Replacement
Cost 2022
Weighted
Remaining
Useful Life
Weighted
Condition
Machinery & Equipment
$2,358,137
Overdue
Poor
Vehicles
$1,791,277
3
Poor
Buildings
$3,813,227
49
Good
Land Improvements
$1,203,832
39
Good
Bridges & Culverts
$19,410,000
Overdue
Fair
Roads & Related
$193,740,386
Overdue
Good
Water Systems
$1,785,734
6
Poor
Total
$224,102,593
Overdue
Good
C.
CONDITION ASSESSMENTS
Consistent with the Canadian National Infrastructure Report Card, as well as other major
organization and institution reporting formats, a five-point rating scale was used to assign a
condition to all assets. This methodology provides a standard and easy to understand way of
reporting on the condition of assets. Table 4 summarizes the assumed parameters.
State of Local Infrastructure | 14
Table 4
Condition Assessment Parameters
Condition Rating
Definition
Very Good
Well maintained, good condition, new or recently rehabilitated
asset.
Good
Good condition, few elements exhibit existing deficiencies.
Fair
Some elements exhibit significant deficiencies. Asset requires
attention.
Poor
A large portion of the system exhibits significant deficiencies.
Asset mostly below standard and approaching end of service life.
Very Poor
Widespread signs of deterioration, some assets may be unusable.
Service is affected.
Assets were categorized in the 5-tier rating system on an asset by asset basis for the
purposes of reporting in this 2022 AMP. Condition assessments for the roads & related and
bridges & culverts infrastructure are based on the 2018 Roads Management Study and 2021
Bridge Inspection Report respectively. The 2018 RMS provided conditions based on probable
costs whereas the 2021 Bridge Inspection Report provided conditions through BCI. These
conditions were adapted to the 5-tier system. Furthermore, Hemson undertook a qualitative
review of the condition of some assets known to be in better condition than what their age
would suggest, with input from Township staff. This means that, wherever the condition of
an asset was assumed, its condition was recorded to an improved condition. Finally,
wherever information was not available on the condition of assets, the age of the asset was
used as a proxy. Under this method, older assets are assumed to be in poorer condition.
Additional details on the methodology used for condition assessments is provided in
Appendix B. Moving forward, updating and identifying asset conditions should be part of
regular inventory updates. There are several methods to identify asset condition. The ideal
methods are outlined as follows:
1. Condition rating systems based on engineered metrics and professional standards.
For example, pavement condition index (PCI) for roads or bridge condition index
(BCI) for bridges/culverts. These metrics can then be translated into a 5-tier rating
system for the purposes of reporting. The Township should continually update the
conditions in the asset inventory to reflect changes in conditions, asset replacement
or updates to Township engineering reports.
2. Estimates based on expert staff opinion. This approach is important where there is
low confidence that age and useful life represents a particular set. This method has
already been used as part of the 2022 AMP for select assets and should continue to
be utilized and broadened for remaining assets.
State of Local Infrastructure | 15
3. Estimates based on age and the remaining useful life of the asset. This has been
used for any assets where the Township was not able to provide a condition
assessment based on existing knowledge or inspection. It is the intention that the
Township move towards a condition assessment methodology using approach 1 and
2 as needed. With this said, this methodology can be utilized for lower valued assets
that have a shorter useful life.
Level of Service | 16
3. LEVEL OF SERVICE
Asset management decisions must be made with reference to the level of service planned
for by the Township. Current service levels in Perth South have been developed based on a
combination of internal asset management practices, community expectations, statutory
requirements, and industry operation and safety standards. Typically, the level of asset
investment made by the Township in any one year has been determined by funding
availability. That said, the Township has in the past been responsive to repair needs to
address immediate environmental or health risks. The Township has therefore done a good
job in assessing and maintaining levels of service given its existing tools.
The community expects that services be delivered in a cost effective and efficient way.
Generally, community expectations revolve around the Township's accessibility of "soft"
services (e.g. recreation facilities; libraries; fire stations) within neighbourhoods. However,
safety and performance are also important for core services such as roads, bridges and
culverts.
Developing levels of service and tracking over time is essential to measuring the success of
service delivery and the asset management strategy overall. This section outlines current
levels of service as they relate to the requirements outlined in Ontario Regulation 588/17.
A.
CURRENT LEVELS OF SERVICE
The Township has determined the current levels of service through the analysis and model
developed in this 2022 Plan. The current level of service measures for each asset category
are summarized in Table 5:
Weighted Condition: the condition of the Township's assets is determined to be in
"Good" condition overall. Roads and related, and buildings are maintained in "Good"
condition, while the remaining assets are considered to be in "Fair" or "Poor" condition.
It is important to note that assets in "Fair" condition may transition into the "Poor" or
"Very Poor" category in the near future and may require attention in the short to medium
term, if proper asset maintenance and rehabilitation is not achieved. It will be important
for the Township to determine which assets in the "Fair" category should be prioritized
to ensure that current levels of service do not decline.
Level of Service | 17
O. Reg. 588/17 includes a prescribed set of level of service measures for Township
services of roads, bridges and culverts. Table 5 includes these level of service measures
as required in the regulation. Key findings on these levels of service are outlined:
Roads & Related: Out of a 5 rating scale, the average condition recorded is 3.9
or "Good." This is based on the street condition ratings provided through the in
the 2018 RMS. - the weighted average street condition rating is 7.6 out of 10.
The RMS and future updates should therefore continue to be utilized as a key
tool for assessing the asset management needs associated to roads and a key
input the Township AMP.
Bridges & Culverts: The weighted average condition of the bridges and culverts
is considered to be "Fair" with an average BCI of 66.2 - this is comprised of
bridges in "Fair" condition (BCI = 65.2) and culverts in "Good" condition (BCI =
71.5). This information was obtained from the 2021 Bridge Inspection Report and
consistent with the regulatory requirement to document for the purposes of the
LOS analysis. Future updates of the Bridge Inspection Reports should continue
to report on BCI for each structure. Furthermore, this report will continue to be
used as a key tool to determine regular capital repair and replacement needs for
bridges and culverts.
Water: the Township of Perth South owns two separate drinking water systems -
the St. Pauls Water System and the Sebringville Water System. These systems
supply water to about 35 users and 33 users respectively. The number of users
connected to the water system is nominal relative to the entire community as
most properties are on a well based private water system. The Township
contracts OCWA to maintain the system and following a review of the summary
reports posted on the municipal website, no boil water advisories were identified
and the systems achieved a high compliance rating (in the 95 percentile for both
systems). Please note the Township does not own or operate any wastewater
systems.
Stormwater: the Township's stormwater data is very limited and likely
incomplete. In discussions with staff, it is assumed that the Township about 80-
90% of properties in the Township are resilient to a 100-year storm with
approximately 90% of the stormwater management system resilient to a 5-year
storm. The Township would need to make this data validation a priority in the
coming years as the impacts of this infrastructure failing to provide service can
be far-reaching.
Level of Service | 18
B.
COSTS TO MAINTAIN CURRENT LEVELS OF SERVICE
The Township undergoes reviews of the levels of service and services it provides on an
annual basis through the budget process. Therefore, the Township considers the short-term
implications of any changes in the level of service with consideration to the availability of
funds and impacts to residents through its tax rates. The AMP considers the longer term
costs of maintaining levels of service over a 30-year period. To do so the financing strategy
considers two financing strategy scenarios which are discussed further in Section 5.
Table 5
Level of Service Performance Tracker
Asset Category
Strategic Level of Service
(Expected Customer
Demands)
Community Level of Service (as per O. Reg. 588/17)
Performance Measures
Current LOS
Source
Average weighted condition assessment
Poor
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
5%
AMP Model
Percentage of assets beyond their useful life
30%
AMP Model
Average weighted condition assessment
Poor
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
20%
AMP Model
Percentage of assets beyond their useful life
25%
AMP Model
Average weighted condition assessment
Good
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
69%
AMP Model
Percentage of assets beyond their useful life
1%
AMP Model
Average weighted condition assessment
Good
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
63%
AMP Model
Percentage of assets beyond their useful life
15%
AMP Model
Average weighted condition assessment
Fair
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
40%
AMP Model
Percentage of assets beyond their useful life
71%
AMP Model
Percentage of bridges in the municipality with loading or dimensional restrictions (O. Reg. 588/17).
3%
2021 Bridges Inspection Report
1. For bridges in the municipality, the average bridge condition index value (O. Reg. 588/17).
Fair
2021 Bridges Inspection Report
2. For structural culverts in the municipality, the average bridge condition index value (O. Reg. 588/17).
Good
2021 Bridges Inspection Report
Includes equipment mostly on playgrounds and sportsfields
such as fencing, lighting, parking lots and underground water
tanks.
Bridges & Culverts
To provide safe and reliable
bridges and culverts for
Township residents.
The Township provided a Bridges Inspection Report from 2021
which includes an inventory of bridges and culverts in the
Township as well as their respective BCI ratings. This report
includes proper mapping and details of the municipal Network.
Includes fleet vehicles used for public works and fire.
Examples include dump trucks, pickups and fire trucks.
Includes mobile heavy machinery such as generators, mowers,
and graders.
Includes all municipality owned buildings and facilities as well
as minor buildings and structures. Buildings have been
recorded by components wherever possible.
To maintain safe, reliable,
and fully operational vehicles
to respong to operational
demands and emergencies.
Machinery &
Equipment
Vehicles
Buildings
Land Improvements
To provide safe and
operational equipment to
meet day-to-day work
requirements.
To provide safe, functional
and accessible public
facilities for the community.
To provide safe, reliable and
clean land improvement
assets to support a healthy
community.
Level of Service | 19
Table 5
Level of Service Performance Tracker
Asset Category
Strategic Level of Service
(Expected Customer
Demands)
Community Level of Service (as per O. Reg. 588/17)
Performance Measures
Current LOS
Source
Average weighted condition assessment
Good
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
74%
AMP Model
Percentage of assets beyond their useful life
100%
AMP Model
Number of lane-kilometres of each of arterial roads, collector roads and local roads as a proportion of
square kilometres of land area of the municipality (O. Reg. 588/17).
303.6
AMP Model - 2018 Road Management Plan
Arterial
4%
AMP Model - 2018 Road Management Plan
Local
74%
AMP Model - 2018 Road Management Plan
Gravel
76%
AMP Model - 2018 Road Management Plan
1. For paved roads in the municipality, the average pavement condition index value (O. Reg. 588/17).*
7.7
AMP Model - 2018 Road Management Plan
2. For unpaved roads in the municipality, the average surface condition (O. Reg. 588/17).*
6.4
AMP Model - 2018 Road Management Plan
Average weighted condition assessment
Poor
AMP Model
Percentage of assets at or above "Good" or "Very Good" condition
10%
AMP Model
Percentage of assets beyond their useful life
10%
AMP Model
1. Description, which may include maps, of the user groups or
areas of the municipality that are connected to the municipal
1. Percentage of properties connected to the municipal water system.
5%
Water Financial Plan, 2021 Census, review
of municipal documents
2. Description, which may include maps, of the user groups or
areas of the municipality that have fire flow.
2. Percentage of properties where fire flow is available
100% of serviced
area
Water Financial Plan, 2021 Census, review
of municipal documents
1. The number 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
2020 FIR and review of annual reports
2. The number of connection-days per year due to water main breaks compared to the total number of
properties connected to the municipal water system.
0
2020 FIR and review of annual reports
Average weighted condition assessment
n/a
n/a
Percentage of assets at or above "Good" or "Very Good" condition
n/a
n/a
Percentage of assets beyond their useful life
n/a
n/a
1. Percentage of properties in municipality resilient to a 100-year storm (O. Reg. 588/17).
Approx. 80-90%
Assumption based on discussions with
Township staff & review of assets mapping
2. Percentage of properties in municipality resilient to a 5-year storm (O. Reg. 588/17).
Approx. 80-90%
Assumption based on discussions with
Township staff & review of assets mapping
*Condition Value Index used in lieu of PCI.
Note: road LOS - assumed at 2 lane kilometers and 393 square km
The Township completed a Road Management Study in 2018.
The Township maintains detailed maps of the road network
and connectivity through this standalone study. The maps
describe the condition, connectivity of roads, roads
maintainedby the Township.
To meet reporting
requirements of O. Reg.
588/17
Roads & Related
Stormwater
To meet reporting
requirements of O. Reg.
588/17
Stormwater faciltiies are operated by the Township of Perth
South. Perth South is responsible for all monitoring, quality
assurance, quality control, reporting, inspecting, distribution
and maintenance of these systems.
Both water supply and treatment facilities are owned by the
Township and operated by OCWA. Perth South and OCWA are
responsible for all monitoring, quality assurance, quality
control, reporting, inspecting, distribution and maintenance of
these systems.
Description of boil water advisories and service interruptions.
Water Systems
To meet reporting
requirements of O. Reg.
588/17
Level of Service | 20
Asset Management Strategy | 21
4. ASSET MANAGEMENT STRATEGY
This section sets out an action plan that will assist the Township in maintaining assets so
that current service levels are maintained. The asset management strategy relates to a set
of actions that, taken together, has the lowest total cost to maintain assets in a state of
good repair as defined in the Building Together: Guide for Municipal Asset Management
Plans.
The asset management strategy includes current practices and potential future practices
related to non-infrastructure solutions, maintenance activities, renewal/rehabilitation,
disposal, and expansion activities. The final component of this section includes a risk
analysis, which can be used to assist Township staff and Council measure and manage risks
to assets to maintain current levels of service.
A.
OVERVIEW OF FULL LIFECYCLE COST MODEL
As part of the Asset Management Plan, the Township, along with Hemson, have identified
the total full lifecycle costs of assets that correspond to the requirements of the regulation.
This would entail a cost estimation throughout the asset's life including planning, design,
construction, acquisition, operation, maintenance, renewal and disposal. In addition, the
analysis also takes into consideration the inclusion of expansion related infrastructure into
the lifecycle management strategy. This approach ensures that the additional lifecycle costs
associated with newly constructed/acquired assets are accounted for in the long-term
forecast.
A "lifecycle management approach" in asset management planning not only includes
estimating future lifecycle costs, but also embeds the process of monitoring how the asset
performs over its life while providing affordable services.
These lifecycle activities can be segmented into six (6) categories: non-infrastructure
solutions, operations/maintenance, renewal/rehabilitation, replacement, disposal, and
expansion activities. While this AMP looks to address the various cost elements, it is
important to recognize that as the asset management maturity level of the Township
increases, the costs associated with each lifecycle activity will strengthen and improve the
expenditure outlook. The Table 6 provides a description of each lifecycle category and the
specific approach used to forecast expenditures in this AMP.
Asset Management Strategy | 22
Table 6
Overview of the Full Lifecycle Cost Activities and AMP Approach
Category
Description
AMP Approach
Non-
infrastructure
Solutions
Actions or policies that can lower
costs or extend asset life (e.g.,
better integrated infrastructure
planning and land use planning,
demand management, insurance,
process optimization, managed
failures, etc.).
Estimated annual provision of
$75,000 has been included.
Maintenance
Activities
Servicing assets on a regular basis
in order to fully realize the original
service potential. Maintenance will
not extend the life of an asset or
add to its value. Not performing
regular maintenance may reduce
an asset's useful life.
Based on a review of recent
budgets by service area.
Annual maintenance activities of
$1.7 million per annum for tax
supported assets. Of which,
$518,600 is related to additional
operations and maintenance needs
from the recommendation outlined
in the 2018 RMS.
Excludes regular costs of municipal
operations (i.e. staff salary for
programming) and only includes
identifiable asset maintenance
costs from the Township budget.
These figures are based on the
2021 budget and is deemed
appropriate to use in the forecast
moving forward as it generally
represents similar costs compared
to previous year's budgets.
Asset Management Strategy | 23
Table 6
Overview of the Full Lifecycle Cost Activities and AMP Approach
Category
Description
AMP Approach
Renewal/
Rehabilitation
Activities
Mostly associated to significant
repairs designed to extend the
useful life of an asset. These types
of activities are typically done at
key points in the lifecycle of an
asset to ensure the asset reaches
it designed useful life.
Renewal expenditures are
identified for roads, bridges and
culverts based on the Township's
engineering reports over the next 5
to 10 year period
For roads, future renewal
expenditures are based on the
average probable cost renewal
need per km ($138,300) identified
in the RMS and applied to all other
roads which no cost was identified.
A similar approach to roads was
undertaken for bridges and
culverts
Replacement
Activities
Activities that are expected to
occur once an asset has reached
the end of its useful life and
renewal/rehabilitation is no longer
an option.
Incorporating the average annual
investment required to replace
assets when they reach the end of
their useful life (age/condition
replacement schedule).
This method is applied to all
assets, except for roads, bridges
and culverts which is based on the
rehabilitation assumptions above.
Disposal
Activities
The activities associated with
disposing of an asset once it has
reached the end of its useful life,
or is otherwise no longer needed.
Typically, disposal costs are
accounted under replacement
activities. Some assets, such as
landfills, may have perpetual
maintenance costs.
Analysis assumes any costs
associated with "disposal" is
included for in the replacement
value and captured in the capital
replacement requirements.
Asset Management Strategy | 24
Table 6
Overview of the Full Lifecycle Cost Activities and AMP Approach
Category
Description
AMP Approach
Expansion
Activities
Planned activities required to
extend or expand municipal
services to accommodate the
demands of growth.
Assumed Township expansion
activities associated to population
growth, this equates to an average
additional yearly expenditure of
about $50,000 (first round capital
acquisition).
The asset management related
expenses associated to future
replacement and ongoing
maintenance of net new
infrastructure is included for in the
calculation of the funding need.
It should be noted that the Township undertakes all the activities described above, however,
the Township's budget generally accounts for these expenditures in different categories.
Specific asset management strategies based on existing practices in the Township are
documented in Appendix D. It is recommended that the Township continue to track the asset
management activities required to continue to maintain levels of service.
B.
RISK ANALYSIS
It is important to assess the risk associated with each asset and the likelihood of asset
failure. Asset failure can occur as the asset reaches its limits and can jeopardize
public/environmental safety. In addition, certain assets have a greater consequence of
failure than others. A risk matrix can help prioritize which assets should be
repaired/replaced, even those which the Township has already identified to be in Poor or
Very Poor condition. The evaluation rating is then linked to the condition assessment
parameter discussed in Section 2. The formula to determine asset risk is as follows:
(Likelihood of Failure) X (Consequence of Failure) = (Risk Rating)
Each of the components of the Risk Rating methodology is defined as follows:
Likelihood of Failure: is directly linked to the condition of an asset. For example, an
asset in Very Poor condition would have the likelihood of asset failure in the short-term
be high. This type of asset may be near the end of its useful life or has deteriorated
Asset Management Strategy | 25
significantly. Conversely it would be considered rare for an asset to fail in the short term
if it is considered to be in Good or Very Good condition. Table 7 below outlines the
definition of probability of failure used for the Township's assets.
Table 7
Likelihood of Failure
Condition
Likelihood of
Failure
Description
Very Good
1
Rare
Good
2
Unlikely
Fair
3
Possible
Poor
4
Likely
Very Poor
5
Almost Certain
Note: Definitions are based on the MFOA Asset Management Framework.
Consequence of Failure: refers to the impact on the Township if an asset were to fail.
The consequence of failure has been determined separately for each asset category, as
the impact to the Township differs greatly by asset type. For example, if a fire
emergency vehicle was not available for service, the potential impact could be severe
compared to a vehicle used for administrative purposes. For the purposes of this
analysis, assets were assigned a consequence of failure based on an assessment of the
relative importance of the asset. Table 8 below outlines the definition of consequence of
failure used for the Township's assets. The consequence of failure, rated on a 1-5 scale,
was weighted relative to each category in Table 8 depending on how impactful the
consequence may be to the Township.
Table 8
Consequence of Failure
Consequence
of Failure
Description
1 - Insignificant
No impact to operations.
2 - Minor
Minor impact to operations, all major operations can continue to function.
3 - Moderate
Moderate impact to operations some critical operations may need to stop
functioning temporarily.
4 - Major
Major operations seize and some damage control necessary.
5 - Significant
All operations seize to function and major damage control is necessary.
Note: The consequence of failure was developed based on the description of assets.
Risk Rating: categorizes assets based on the level of risk to the Township. The risk
rating provides a guide to prioritize assets by determining which assets require attention
Asset Management Strategy | 26
first and which capital works can be deferred. Higher risk assets should be prioritized for
attention in the short term by determining which of the lifecycle actions is required to be
performed on the asset (see Appendix D). Table 9 below provides a summary of the risk
matrix.
Table 9
Risk Matrix
Evaluation Rating
Consequence of Failure
Color Code
1
2
3
4
5
Likelihood of
Failure
1
1
2
3
4
5
Very Low Risk
2
2
4
6
8
10
Low Risk
3
3
6
9
12
15
Moderate Risk
4
4
8
12
16
20
High Risk
5
5
10
15
20
25
Very High Risk
Table 10 presents the findings of the risk analysis and illustrates the Township's assets
rated from low to high risk. Most of the Township's assets continue to have relatively low to
moderate risk, and indication of good maintenance practices overall. The Township's water
system is calculated at a high risk, largely based on the importance of the infrastructure if it
were to fail and the condition of the assets and their age.
The risk of each asset and asset category has been determined with reference to the
parameters outlined in Table 10. It is important to note, that the Township will need to
continue regular maintenance activities and capital works moving forward to maintain
current levels of service - this ensures assets do not further deteriorate posing greater risk
to the corporation. Please note that roads& related, bridges and culverts have been excluded
from the risk analysis in Table 10 as the infrastructure needs and timing of repair and
replacement has been informed based on detailed engineered assessments.
The 2018 Road Management Study identifies the recommended works for each road
segment on a case-by-case basis considering factors such as surface type and average
annual daily traffic. These recommendations have been considered through the financing
strategy in Section 5.
The Township completed the 2021 Bridge Inspection Report which includes
recommended works and costs for bridges and culverts over a 10-year period. These
recommendations have been considered through the financing strategy in Section 5.
Asset Management Strategy | 27
Table 10
Summary Risk Assessment
Asset Category
Replacement
Cost 2022
Risk
(Weighted Average)
Machinery & Equipment
$2,358,137
Moderate
9
Vehicles
$1,791,277
Moderate
9
Buildings
$3,813,227
Low
6
Land Improvements
$1,203,882
Very Low
2
Water Systems
$1,785,734
High
13
Total
$10,952,207
Moderate
8
Bridges & Culverts
$19,410,000
Based on 2021 Bridge Inspection Report (1)
Roads & Related
$193,740,386
Based on 2018 RMS (1)
Note 1: Immediate 10-year needs based on study.
It is important to recognize the risk associated with the Township's ability to deliver the AMP
while recognizing that any deviation may affect the overall ability to deliver service. Table 11
below provides a summary of the identified risks, potential impacts and mitigating actions
associated with the asset management program. Moving forward, the Township may
continue to update the information in Table 11 to better reflect ongoing changes to policy or
practice.
Table 11
Risk Associated to the Plan
Identified Risk
Potential Impact
Mitigating Action
Failed Infrastructure
Delivery of service
Asset and equipment
damage
Repair and rehabilitate as
necessary
Increase investment
Non-infrastructure solutions
Inadequate funding
Delivery of service
Increased risk of failure
Shorten asset life
Defer funding to future
generations
Reductions of service
Find additional revenue
sources
Regulatory
Requirements
Non-compliance
Mandatory investments
Increased costs
Find additional revenue
sources
Lobby actions
Plan is not followed
Shorten asset life
Inefficient investments
Prioritization process failure
Failure to deliver service
Monitor and review
Create asset management
network
Implement processes
Asset Management Strategy | 28
C.
CLIMATE CHANGE INTEGRATION
The management of a municipal assets plays a fundamental role in the delivery of services,
which depends on the infrastructure available to deliver the service. Corporate asset
management in municipalities largely relates to the management of existing assets to keep
them in a state of good repair while planning for future repair and/or replacement of their
assets across all service areas. Impacts of climate change are already being experienced
around the world, including Canada. It is important for municipalities to begin considering
and planning for future climates to ensure the delivery of services, especially as it pertains to
the maintenance of key municipal infrastructure. As per Ontario Regulation 588/17 s3(5),
municipalities must include a commitment in their asset management planning to address
the vulnerabilities of climate change with respect to operations, levels of service and
lifecycle management. There must also be consideration for anticipated costs, mitigation
and adaptation approaches and disaster planning to meet all regulatory requirements in
Ontario municipal asset management. In response to the regulatory requirements, Township
of Perth South adopted its first Strategic Asset Management Policy and committed to
integrating climate change as part of its asset management planning.
Expected climate change impacts include hotter, drier summers, warmer winters with
increased precipitation, increased frequency and intensity of storms and extreme winds.
These changes in climate will likely lead to increased risks associated with flooding,
heatwaves, risk of infrastructure damage, health and safety of residents, the alteration or
loss of habitats, etc.
Many of these risks are associated with municipal assets and may impact the levels of
service. Climate change mitigation and adaptation planning is an important step for
municipalities to take to begin managing risks associated with climate change. Therefore,
the Township is taking steps towards the integration of climate change considerations into
their asset management planning framework moving forward.
Table 12 provides a risk summary, for information purposes, to help further propel climate
change integration with asset management, although, recognizing the full utilization would
still need to be applied and understood at the staff level. In asset management terms, this
table shows the "big picture" effects that climate change hazards may have on the levels of
service for various assets. The specific climate change impacts on levels of service are to be
developed further as part of future updates to the asset management plan.
Through further understanding of the anticipated extent of climate change events, climate
change adaptation projects at the Township will provide additional parameters as to the
Asset Management Strategy | 29
likelihood and severity of events. At its most simplistic form, Table 12 provides a range from
a "rare" occurrence to "almost certain". A rare occurrence could be correlated to falling into
the tenth percentile of probability, with an almost certain occurrence falling into the
ninetieth percentile of probability.
Table 12
Framework for Climate Change Integration with Risk
Hazards/
Risks
Likelihood
Consequence
Assets Affected
Possible Critical Infrastructure
Failure/Service Impacts
Freezing
Rain/Ice Storm
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Water system
- Machinery,
equipment and
vehicles
- Reduced road and bridge conditions
or damage that may result in
potential closures
- Potential for increased flooding
- Traffic delays due to poor road and
bridge conditions
Extreme
Temperatures -
Cold Wave
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Water system
- Closures of outdoor amenities due to
extreme weather conditions
- Increased strain on indoor heating
systems leading to reduced service
life and functionality of components
and systems
Intense Rain
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Flooding of bridges and roadways
leading to closures or property
damage
- Disruptions to service due to
flooding of roads, leading to
decreased levels of service
Asset Management Strategy | 30
Table 12
Framework for Climate Change Integration with Risk
Hazards/
Risks
Likelihood
Consequence
Assets Affected
Possible Critical Infrastructure
Failure/Service Impacts
Flood - Urban
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Flooding of bridges and roadways
leading to closures
- Disruptions to service due to
flooding of roads, leading to
decreased levels of service
- Flooding of parks and amenities
leading to closures and reduced
levels of service
Extreme
Temperatures -
Heat Wave
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Potential closure/reduce used of
outdoor amenities due to high
temperatures (reduced levels of
service). Lost habitats leading to
reduced environmental diversity.
- Increased strain on indoor cooling
systems leading to reduced service
life and functionality of components
Windstorm/
Tornado
Rare to
almost
certain
- Roads & Related
- Buildings
- Bridges & Culverts
- Land Improvements
- Closure of outdoor assets due to
potential hazards for residents
- Increased strain on facility assets
leading to potential damages and
reduced service life and functionality
of components and systems
Source: https://www.assetmanagementbc.ca/wp-content/uploads/Climate-Change-and-
Asset-Management.pdf
Financing Strategy | 31
5. FINANCING STRATEGY
The Township has continually contributed to capital for tax funded services. In order to
continue to maintain levels of service, the Township will need to monitor funding levels over
the next few years. This section of the 2022 Plan is intended to help the Township build on
the existing asset management practices already in place. The financing strategies
presented provide the Township with feasible options to increase capital funding in a
sustainable manner to maintain service levels. Note that all figures presented in this section
are expressed in constant 2022 dollars.
A.
OPERATING BUDGET EXPENDITURES
The Township has historically set aside funds to maintain its capital assets in a state of
good repair. This has meant that sufficient funds have typically been available to deal with
immediate and critical asset repair and rehabilitation needs. Overall, the Township has
aimed to increase its operational and capital budget expenditures to maintain assets and
fund capital asset repair and replacement over the past few years, although, the COVID-19
pandemic has somewhat strained resources and limited the ability to increase the amount of
funding dedicated to asset maintenance.
It is anticipated that the Township's operating expenditures will be adjusted annually, at
minimum, to account for the effects of inflation. Although, if additional asset management
strategies are adopted by the Township, annual costs could exceed regular inflationary
adjustments. Using the budget as the basis, the analysis used in the financing strategy
assumes about $1.2 million annually is related to asset maintenance funded through the tax
base3. The financing strategy also includes "top up" costs (about $518,600) for
recommended operation and maintenance activities outlined in the 2018 RMS. It is
recommended that these costs would need to be monitored relative to the road service
levels being tracked to quantify if increasing the amount allocated to O&M improves the
level of service for roads.
As the Township matures its asset management program, it is expected that other service
level adjustments and costs associated with achieving desired levels of services will be
incorporated in the model. At this stage, no additional provisions for a level of service
adjustments to account for requirements of O. Reg. 588/17 to define and implement
3 Based on 2021 detailed budget and adjusted for inflation at 2% (for 2022).
Financing Strategy | 32
proposed levels of service has been included in the analysis - this will be further addressed
in the next plan to coincide with the regulatory timeline.
B.
CAPITAL REPLACEMENT SCHEDULE
The 2022 Plan includes an estimate of the timing for replacement of all assets. Using the
risk assessment discussed in Section 4, a schedule for the replacement of assets has been
developed on an asset by asset basis. Assets with a higher risk rating are prioritized earlier
in the schedule to reflect a higher priority, while assets with lower risk ratings are moved
further out into the future forecast to reflect a more "smoothed" expenditure outlook. The
timing is based on a percentage of the useful life of the asset. Table 13 below provides a
summary of the risk thresholds used to calculate timing of replacement needs.
Table 13
Risk Thresholds for Asset Life Extension
Percentage of Useful Life
Color Code
100%
80%
60%
40%
20%
Very Low Risk
80%
65%
50%
30%
16%
Low Risk
60%
50%
35%
25%
10%
Moderate Risk
40%
30%
25%
15%
2%
High Risk
20%
16%
10%
2%
0%
Very High Risk
Note: Methodology used for all asset categories except roads, bridges and culverts as recommended
works and associated costs from engineering reports have been prioritized.
Figure 3 sets out the schedule of repair and replacement of assets, to maintain current
levels of service for the assets considered in the 2022 Plan. Over the 30-year period, to 2051,
the repair and replacement program (all assets except roads, bridge and culverts) totals
about $17.6 million. The average yearly expenditure related to these assets amount to
approximately $585,800 per year.
A breakdown of the replacement needs by category is provided below:
Machinery & Equipment: The 5-year period (2022-2026) identified a replacement cost
of $1.8 million. This includes replacement of approximately several equipment assets,
including graders, software, computer accessories, and others.
Vehicles: The 5-year period (2022-2026) has identified replacement of $719,900
comprised of 8 different vehicle assets.
Buildings: The 5-year period (2022-2026) does not include any works related to asset
Financing Strategy | 33
replacement. As many of the buildings are relatively new, the risk based replacement
schedule for this asset category does not identify any required work until 2027.
Land Improvements: The 5-year period (2022-2026) does not identify any land
improvement assets for replacement.
Water Systems: Over the next 5-years (2022-2026) the replacement works related to
water systems amount to about $355,900. This includes replacements of various
generators, tanks, pumps, and other assets.
Specifically for roads, bridges and culverts, the engineered assessments were used to
form the need analysis for the immediate 10-year period while a more average based
repair and rehabilitation need schedule was prepared for the longer-term which
corresponds to the probable costs outlined in the 2018 Roads Management Study
supplemented with a similar level of expenditure assumed over a longer-term planning
period. The average level of expenditure included in the analysis is $2.2 million per
annum. With the completion of a new Roads Management Study, it is expected that this
figure will be updated to correspond to the new datasets. For bridges and culverts, the
recommended works outlined in the inspection reports amounted to $3.1 million over ten
years. Table 14 summarizes the 10-year needs as outlined in both the 2018 Roads
Management and 2021 Bridge Inspection Report. The average level of expenditure
included in the analysis for bridges and culverts is $434,300 per annum.
Importantly, the average level of expenditure is greater than the 10-year requirements
outlined in the engineering reports (and summarized in table 14) as the analysis
$-
$0.5
$1.0
$1.5
$2.0
$2.5
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Millions
Figure 2
Replacement Schedule
(Risk Based, All Assests excluding Roads, Bridges and Culverts)
Machinery & Equipment
Vehicles
Buildings
Land Improvements
Water Systems
Financing Strategy | 34
assumes savings for works occurring outside of the 10-year period while completing
those needs in this horizon.
Table 14
10-Year Needs: Roads, Bridges and Culverts
Roads
$7,155,400
Bridges & Culverts
$3,120,000
C.
SUMMARY OF THE CUMULATIVE FULL LIFECYCLE COSTS
A key component of the financing strategy is to identify the level of expenditure required on
an annual basis to pay for asset management. Costs to maintain and eventually repair or
replace municipal assets need to be understood and contributions to reserves and reserve
funds need to be quantified. In this section, provisions for repair and replacement are
calculated for each asset based on its remaining useful life or identified year of works and
the anticipated cost of replacement in constant 2022 dollars. The aggregate of all individual
provisions form an annual contribution to reserves for the purpose of asset repair and
replacement.
Over the next thirty years, the analysis indicates a spending need of about $152.2 million.
Figure 3 summarizes the cumulative 30-year investment needs across the tax supported
service areas for the various lifecycle activities identified in Section 4. Of the total life cycle
cost, most costs can be attributed to saving for the renewal and replacement of existing
infrastructure making up about $97.8 million (64%). Further to this, about $35.2 million (23%)
of the total is related to operating and maintenance (O&M) costs associated to the existing
asset base and a further $15.6 million (10%) is related to "top-up" operating and
maintenance costs to achieve the recommendations outlined in the Roads Management
Study. The remaining $2.2 million and $1.5 million is related to non-infrastructure solutions
and future asset management provisions associated to future infrastructure expansion
respectively. Note, aside from the identified top-up for roads O&M costs, no provisions for a
level of service adjustments to account for requirements of O. Reg. 588/17 to define and
implement desired levels of service has been included in the analysis - this will be further
addressed in the next plan to coincide with the regulatory deadline.
Financing Strategy | 35
Figure 4 below provides an overview of the annual contributions related to the capital
renewal and replacement requirements on an annualized basis over the planning period for
the tax supported infrastructure. Figure 4 shows the funds that would have to be contributed
annually to reserves to maintain current levels of service for tax supported assets included in
this 2022 Plan to 2051. Figure 4 demonstrates that:
Average annual contributions over the 30-year period would have to be in the order of
$3.1 million per year, with road works, machinery & equipment, and bridges & culverts as
the most significant portion.
The level of investment in Township assets would need to increase from current funding
levels. It should be noted that of the 2022 capital funding sources for this set of assets,
tax supported revenues are the most secure form of recurring revenue for the Township
as other funding sources could be subject to review by the Province and cannot be relied
up as a secure funding source for financial planning.
Non-Infrastructure
Solutions
$2,175
2%
Operations &
Maintenance
$35,207
23%
Operations &
Maintenance
- RMS Study
Need
$15,558
10%
Capital Renewal/
Replacement and
Disposal
$97,797
64%
Expansion
Activities (Annual
Provision for
Replacement)
$1,487
1%
Figure 3
Summary of Lifecycle Cost Model ($000)
Financing Strategy | 36
Note: Includes the results of the engineering assessments
D.
SUMMARY OF REVENUES
The municipal revenue sources available to address the identified full lifecycle cost
requirements outlined above are limited. Generally, the type of capital project aligns to its
funding source. In this regard, growth related projects receive most of their funding through
development charges in communities that impose DCs and replacement projects are
predominantly funded through tax-based contributions for tax supported assets. In Perth
South, as DCs are currently not imposed, any new assets would be emplaced using taxation.
When assets require rehabilitation or are due for replacement, the source of funds are
essentially limited to reserves or contributions from the operating budget regardless of how
the initial first round capital asset was funded. Table 15 provides a summary of the revenues
assumed in this analysis for tax supported assets.
$-
$1.0
$2.0
$3.0
$4.0
$5.0
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Millions
Figure 4
Provision Schedule (Risk Based, Tax Services)
Machinery & Equipment
Vehicles
Buildings
Land Improvements
Bridges & Culverts
Roads & Related
Financing Strategy | 37
Table 15
Financing Strategy Key Assumptions
Category
Assumptions
Operations and
Maintenance
It is assumed that operations and maintenance costs associated to
existing assets will remain at similar levels to today (no level of service
increase) and will be funded from the tax base.
Future operations and maintenance costs associated to expansion
related assets will be funded from the tax base.
Importantly, the "top-up" O&M contribution included to supplement
the existing regular road expenses to match the 2018 Roads
Management Plan is not funded and additional revenues would be
needed to offset this cost.
Capital from
Taxation (including
transfers to
reserves)
Existing 2022 tax supported capital funding of approximately $1.4
million is assumed to be the starting point and base case for
increasing annual capital contributions.
o
In addition to the $1.1 million of tax supported spending on
capital, the total $1.4 million also includes the $332,300
contribution to reserves (from operating) for vehicle
replacement included in the budget. Both figures were
obtained from the 2022 budget.
One Time Capital
Levy
A surplus was carried forward from previous years in which Council
opted to utilize these funds to road works. This one time surplus
($676,713) is included in the revenues for 2022. The staff report
outlining the use of these funds is detailed in the report to council
dated March 31st 2022 with the subject line: Additional Surface
Asphalt Paving 2022.
Debt (funded from
taxes)
No debt assumptions are included in this analysis.
Gas Tax
Funding for 2022 is approximately $120,800 annually. Post 2022 gas
tax funding is assumed based on AMO allocations to 2023 and remain
constant afterwards.
Other Grants
One-time government grants of approximately $664,400 and $583,300
are assumed for 2022 and 2023 respectively. No further grant funding
is included in the analysis beyond 2023.
Existing Reserves
Existing capital reserves amounting to approximately $7.2 million have
been used against the total costs over the first 5-years of the plan.
Expansion Activities
Assumed Township expansion activities of $1.45 million are included
in the analysis.
Financing Strategy | 38
Table 15
Financing Strategy Key Assumptions
Category
Assumptions
The asset management related expenses associated to future
replacement and ongoing maintenance of net new infrastructure is
included for in the calculation of the funding need and are expected
to be funded through taxes.
Inflation
Financing strategy is expressed in constant 2022 dollars.
E.
INFRASTRUCTURE DEFICIT & FINANCING STRATEGIES
To implement sustainable asset management practices the Township needs to have an
understanding of the current "infrastructure deficit" as well as the funding gaps that would
arise should the required full life-cycle costs related to capital, identified in Part C: Capital
Provision Schedule, be delayed.
The 30-year infrastructure deficit shown in Figure 5 represents the difference between the
required lifecycle costs and the current contributions to capital for assets in this 2022 Plan.
The graph indicates that existing funding levels are insufficient to cover projected costs over
the planning period, as a result, a notional gap of $62.1 million exists over the 30-year
period. It is unrealistic to expect the Township to address the total infrastructure deficit in
30-Year Total Need
$152.2 M
30-Year Funding
$90.1 M
Funding Gap:
$62.1M
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
30-Year Total Need
Current Funding
Figure 5
30-Year Need vs. Current Funding
Financing Strategy | 39
the short-term. Therefore, a long-term funding strategy that identifies options for addressing
current and future asset expenditures is required.
If the Township were to implement a funding strategy to eliminate the infrastructure deficit
by 2051, the Township would be required to increase capital contributions on an annual
basis by an average of about $142,800 for 30 years (plus annual inflation). For 2023, the
increase would be in addition to the $1.4 million tax supported capital funding, $676,700 in
one time capital levies, $120,800 in Gas Tax funds, $664,400 in one time grants, and existing
tax supported reserve funds on hand. The yearly revenue requirement is equivalent to 3.9%
of the Township's estimated 2022 tax levy revenues of about $3.6 million. A detailed table of
this strategy can be found in Appendix D - Table 1.
Eliminating the infrastructure deficit by 2051 is an aggressive objective and is an initiative
the Township may not want to explore at this time; a few reasons include:
The required capital contributions (to eliminate the deficit) will necessitate an increase
to property taxes beyond a reasonable measure over the short-term;
The Township may need to decrease or limit funding of other key Township services or
initiatives in lieu for capital repair and replacement activity;
Assets can remain in use past their engineered design life and are capable of performing
to meet the Township's current level of service under these circumstances. Therefore, in
such instances, the asset does not necessarily need to be replaced by virtue of
exceeding their design life; and
Prudent asset management strategies, which are currently employed by the Township
can often extend the requirement of major repair or replacement of capital assets and
may prolong the life of the asset.
Further to the above noted comments, two financing strategies were developed to illustrate
a more rational capital contribution level to meet the full lifecycle cost needs for tax
supported assets as outlined in Figure 6. The financing strategies illustrate the "smoothed
options" to the lifecycle requirements identified in Figure 6. A summary of the two funding
strategies is shown in Table 16.
Financing Strategy | 40
Table 16
Summary of Financing Strategies
Financing Strategy
Strategy Parameters
Strategy 1
Close in-year Funding Gap
by 2041
Increase annual capital contributions by approximately $112,500
per year. For 2023, the increase would be in addition to the
estimated 2022 budgeted funding identified.
The yearly revenue requirement is equivalent to 3.1% of the
Township's estimated 2022 tax levy ($3.6 million).
Strategy 2
Close in-year Funding Gap
by 2051
Increase annual capital contributions by approximately $71,800
per year. For 2023, the increase would be in addition to the
estimated 2022 budgeted funding identified.
The yearly revenue requirement is equivalent to 2.0% of the
Township's estimated 2022 tax levy ($3.6 million).
Note: Key assumptions noted in Table 15 are maintained for both financing strategies.
Given the capital expenditure requirement to meet the asset lifecycle needs, the cumulative
infrastructure deficit will increase in all scenarios before the Township begins to reduce this
amount by increasing capital contributions by more than the annual lifecycle requirement.
The infrastructure deficit will increase by the annual funding gap and decrease once the
annual contributions are greater than the annual provision.
It is important to note that even though the in-year funding gap has been addressed within
the planning horizon in both strategies, the infrastructure deficit poses risk to the Township
as it is indicative of overdue assets that have fully depreciated and may be in Very Poor
condition. These assets would need to be addressed in a longer time frame and are at risk
for asset failure. The figure below provides a snapshot summary of the infrastructure deficit
for the two strategies outlined in Table 16.
Financing Strategy | 41
Rate Supported Assets (Water System)
The Township of Perth South owns two separate drinking water systems - the St. Pauls
Water System and the Sebringville Water System - which supply water to the water system
users.
The Township completed a Water Financial Plan in accordance with the Financial Plan
regulation (O. Reg. 453/07) made under the Safe Drinking Water Act for the 2021-2026
period. The financial plan was predicated on a capital investment plan that encompasses the
entire life cycle of the water system's assets using information from R. J. Burnside &
Associates in 2009 with additional information from the water system's operators Ontario
Clean Water Agency (OCWA). The Financial Plan included the replacement of assets
requiring replacement during the period 2021 - 2026 in which the required funding for these
asset replacements are available within each water system. The water financial plan
indicated that both systems are financially viable and will be able to fund infrastructure
projects when required. As a result, a detailed financing strategy was not prepared for water
system assets under this AMP.
$-
$5
$10
$15
$20
$25
$30
$35
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Figure 6
Infrastructure Deficit Comparison ($ millions)
Strategy 1
Strategy 2
Financing Strategy | 42
Stormwater Infrastructure
The Township's stormwater dataset is very limited and likely incomplete. Therefore, the
Township would need to make this data validation a priority in the coming years as the
impacts of this infrastructure failing to provide service can be far-reaching. It can be
expected that the next iteration of the AMP will include a more comprehensive inventory,
valuation and condition of stormwater infrastructure to inform the proposed levels of
services.
F.
COSTS TO MAINTAIN LEVELS OF SERVICE AND RELATIONSHIP
WITH FINANCING STRATEGIES
As outlined in Part A, total estimated budgeted asset maintenance expenditures in 2022 are
estimated to be about $1.2 million for all assets. In addition, the Township will spend an
estimated $4.3 million (including grants, gas tax and transfers to reserves) in 2022 for the
full lifecycle costs of tax supported assets. The $4.3 million in capital spending is comprised
of:
$1.4 million in tax levy capital funding (including reserve contributions);
$676,700 in one time capital surplus (transfer from reserve);
$120,800 in gas tax funding;
$664,400 in other one time grants; and
$1.4 million in existing capital-related reserves4.
Both the capital maintenance requirements (from operating) and the capital spending
provision identified are attributed to maintaining the service level associated with the $224.1
million of assets.
Overall, this funding allocation is required to ensure the Township delivers the existing levels
of service identified in Section 3 of the Asset Management Plan for both core and non-core
infrastructure assets. Overall, it is recommended that the Township continues to monitor
levels of service on an annual basis in the context of budget expenditures. In this manner,
the Township can identify any significant changes in levels of service and identify if funding
levels are appropriate to address any asset pressures.
4 The existing capital related reserves on hand amount to $7.2 million and this amount is allocated over a 5-year period
in this study, Therefore, the $1.4 million identified represents 1/5th of the capital reserves available.
Financing Strategy | 43
Furthermore, the financing strategies represent options at maintaining the current levels of
service from a long-term perspective. In summary, the following conclusions can be made:
The option to "do nothing" and allow the infrastructure back-log to accumulate
would mean that existing funding levels would not be sufficient to manage the
infrastructure in place over the long-term. Therefore, the assets in service would
deteriorate with a series of assets moving into poor and very poor condition which
would effectively provide a reduction in the level of service over the short and long-
term periods.
Strategy 1 would ultimately result in a service level increase over the long-term as
assets are replaced as required based on condition and useful life. Therefore, the
deficit would largely be eliminated over the planning period. This strategy would
represent a more optimal level of asset repair and replacement than existing trends
and should be targeted with the determination of proposed levels of service moving
forward.
The adoption of the 2nd strategy would ensure, that over the long-term, the funding
gap-stabilizes and the infrastructure deficit is controlled. Under this approach, the
additional funding would allow for increased targeted investments in asset areas
currently in "fair" condition to ensure these assets don't transition into the poor
category in the next 5 -10 years therefore maintaining the existing level of service.
Also of importance, the assets in Good/Very Good condition require continued
investment to ensure service levels are maintained. As these assets age, they
may also transition in the Fair or lower category. Continued contributions to
reserves will ensure funds are available whenever assets require works to be
completed.
G.
AVAILABLE FUNDING TOOLS
The following section discusses, at a high level, the range of tools available to the Township
for funding capital expenditures.
Federal and Provincial Grants
Historically, the Township has had some success in securing grant funding from higher
orders of government to assist in funding capital projects. The Township will continue to
seek financial assistance from upper levels of government (where available) to fund non-
growth related capital works.
Financing Strategy | 44
The Township of Perth South has indicated that it expects to continue receiving Gas Tax
funds (renamed now to the Canada Community Building Fund) - these funds have been
incorporated into the financing strategies at current levels. If the Township continues to
receive other funding sources over the long-term, it is expected that these funds would be
directed to high-priority projects in an effort to reduce the overall infrastructure deficit.
Development Charges
Development charges may be imposed to pay for increased capital costs required because
of increased needs for services arising from development. The Township does not currently
impose DCs, therefore any growth-related expansion activities (eligible for DC funding)
would currently need to be funded from taxation or utility rates.
Furthermore, the analysis includes the annual asset management requirements associated
with any new assets acquired in addition to the net annual requirement for the Township's
existing assets as identified in the previous sections.
Property Taxes
The use of property taxes to fund municipal tax supported services is the most secure
source of funding for the Township. The most common and secure avenue to generate
additional funding to support increased capital asset management functions would be to
increase property tax revenues.
User Fees
To the extent that user fees are being collected to fund repair and replacement of capital
infrastructure, user fees should be allocated to capital reserves. The Township should look
to review and ensure user fees are being utilized to the full extent as allowed under
Provincial legislation. This will help alleviate funding pressures from the tax base and allow
for greater flexibility to fund capital asset repair and replacement activities. Most commonly,
municipalities undertake detailed user fee reviews of their building, planning and
engineering fees in order to recover the full cost of providing services - the full cost recovery
user fee rates generally incorporate a component for building capital replacement.
Financing Strategy | 45
Public Private Partnerships
Public Private Partnerships (P3s) are a common tool for delivering infrastructure services
throughout communities across Canada to build roads, hospitals, light rail transit, water and
wastewater treatment facilities and other infrastructure. P3s can offer more effective project
and lifecycle cost control and risk management than traditional procurement methods. The
Township could explore P3s as a tool to carry out capital related activities if possible.
Local Improvement Charges
Municipalities, through local improvement charges, have the ability to recover the costs of
capital improvements made on public or privately owned land from property owners who will
benefit from improvement. The Township could use the local improvement process to
undertake a capital project and recover all or part of the cost of the project.
Developer Contributions
Municipalities obtain a wide-range of assets through developer contributions; these
contributions can be "in kind" direct provision of assets or funded, partially or fully, through
agreement. The contributions are typically facilitated through condition of a subdivision or
site plan agreement under the Planning Act. An important consideration in determining the
level and extent of developer contributions is the Township's "local service definitions"
which, under the Development Charges Act and Planning Act, are used to establish which
type, and shares, of capital expenses are considered eligible for direct development
contribution or funding.
Assets funded, or provided, under developer contributions are typically "first round" assets
but can, in certain circumstances, include replacement of existing assets and funding of
non-DC recoverable shares. An example of replacement of an existing asset is when an
existing road requires improvements or upgrades as a result of a specific development; the
Township could endeavour to require the developer to undertake, or fund, the road
improvements as a condition of the subdivision agreement. The municipality would benefit
from the funding of the improved road, but is also an effective deferral of a capital renewal
expense as the existing, and therefore depreciated asset, is also replaced or renewed.
Financing Strategy | 46
H.
FINANCING AND FINANCIAL MANAGEMENT PRACTICES
Debt (as a financing tool)
Debt financing is a viable tool available to fund capital projects. Planned debt is a
responsible way to spread the costs of a project over the life of an asset. This ensures the
tax payers who benefit from the asset share the cost, therefore, the burden of capital is
distributed equally between current and future tax payers. It is important to note that debt
funding is subject to interest costs.
The amount of debt a municipality can carry is set by Provincial regulations to ensure
municipalities continue to operate in a fiscally sound environment. The Ministry of Municipal
Affairs mandates that a municipality's annual debt repayment must not exceed 25% of
annual own-source revenues. The Township currently does not have any debt.
The requirements of the Municipal Act and best practice, suggests that any potential debt
should not be financed for a period longer than the average useful life of the asset. This will
ensure the Township is not paying for an asset outside the design life and beyond the
asset's expected use.
Reserves and Reserve Funds
Reserves are to be used to cope with high capital investment periods by saving during low
capital investment periods. This practice will smooth annual expenditures and ensure the
Township can complete the required annual capital works. In addition to contributions during
low investment periods, many municipalities use annual surpluses, should one arise, to
increase reserves. There is no prescribed amount of reserves for a municipality to have at
any given time, but they should be sufficient to cover emergency work (if required). It is
noted that the Township's current primary financial management tool for asset management
are its capital reserves.
I.
FUTURE DEMAND
The 2022 Plan reflects the assets that the Township currently owns and operates. According
to Statistics Canada datasets, over the last 5 years the Township's population has stayed
relatively constant at around 3,800 between 2016 and 2021. Based on the population
projections outlined in the County of Perth's Official Plan Update Comprehensive Review
(July 17, 2019), the Township's population is projected to increase to about 4,200 people by
Financing Strategy | 47
2041. The population growth identified is only assumed for the purposes of this asset
management plan.
In order to facilitate new development, the Township may be required to emplace new
infrastructure to service development. Irrespective of how the first round capital is funded,
when assets require rehabilitation or are due for replacement, the source of funds is limited
to reserves or contributions from operating. Capital expenditures to carry out the
rehabilitation and replacement of aging infrastructure are not growth-related and are
therefore not eligible for funding through development charge revenues or other developer
contributions.
Despite the additional asset management requirements associated with new infrastructure,
growth will have the effect of increasing the overall assessment base and additional user fee
and charges revenues to help offset the capital asset provisions required to replace new
infrastructure in the future. The collection of these funds is intended to be allocated to the
Township's reserves for the future replacement of these assets. This said, the Township
should continue to prioritize the repair and replacement of existing "Very Poor" and "Poor"
conditioned infrastructure regardless.
Continuous Improvements & Updates | 48
6. CONTINUOUS IMPROVEMENTS & UPDATES
The major premise of comprehensive corporate asset management is that an organization
will seldom have perfect processes and data to manage the asset portfolio. Instead, the
underlying culture of continuous improvement and reliability is its key to success. The
recommended improvements and next steps will form part of the Township's evolving Asset
Management program moving forward.
A.
ASSET MANAGEMENT INTERNAL NETWORK
It is recommended that the Township consider forming an Asset Management Committee to
focus on the activities related to the management of Township assets and to coordinate
asset management practices and policies. It is recognized that the Township's annual capital
budget process considers capital planning at a corporate level based on available funding
and municipal priorities. The intention of the asset management committee is to consider
capital planning over a longer term period and co-ordinate any initiatives that need to be
taken over the longer term.
B.
PLAN MONITORING
The Township will need to carefully monitor and evaluate the asset management progress
and effectiveness of the Plan on or before July 1 in each year starting in 2025. This ensures
that the Plan is utilized to its full extent and any gaps are identified prior to the regulatory
date. Although the extent to which the regulation applies would not be applicable to the
Township for several years, the Township could look to advance the review process and
address the following criteria each year:
a)
The Township's progress in implementing its asset management plan and regular
updates to the asset management financial Excel model;
b)
Any factors impeding the Township's ability to implement its asset management plan;
and
c)
A strategy to address the factors described above in clause b).
Continuous Improvements & Updates | 49
C.
DATA QUALITY & CONFIDENCE
The Township should regularly review the confidence of existing data as well as its
effectiveness integrating asset management activities into regular business processes. The
Confidence Level Rating approach identified in Table 17 below will be used to identify what
specific asset categories/areas the Township can improve upon. The Confidence Level
Rating is based on principles of the ISO 55000 framework and International Infrastructure
Management Manual (IIMM). Current data used in the preparation of this asset
management plan would be generally reliable and based on a Level 4 recognizing that all
asset categories are well documented particularly for the core assets of roads, bridges and
culverts.
The Township should undertake regular updates of the information available on assets
particularly for conditions, replacement values and any other technical information important
to the asset management process and assess the quality of the information based on Table
17. The data quality score is included in Appendix B complementing the State of the Local
Infrastructure Reports.
Table 17
Data Quality Confidence Grading System
Confidence Grade
Description
5
Highly Reliable Data based on sound records, procedure, investigations and
analysis, documented properly and recognized as the best method of
assessment.
Dataset is complete and estimated to be accurate +/- 2%.
4
Reliable Data
Data based on sound records, procedures, investigations and
analysis, documented properly but has minor shortcomings, for
example some data is old, some documentation is missing and/or
reliance is placed on unconfirmed reports or some extrapolation.
Dataset is complete and estimated to be accurate +/- 10%.
3
Uncertain
Data based on sound records, procedures, investigations and
analysis which is incomplete or unsupported, or extrapolated from a
limited sample for which grade 4 or 5 data is available.
Dataset is substantially complete but up to 50% is extrapolated data
and accuracy estimated +/- 25%.
2
Very Uncertain
Data based on unconfirmed verbal reports and/or cursory inspection
and analysis.
Dataset may not be fully complete and most data is estimated or
extrapolated. Accuracy +/- 40%.
1
Unknown
None or very little data held
Continuous Improvements & Updates | 50
As indicated in previous sections, Stormwater infrastructure data is between a Level 1 and
Level 2 (unknown and very uncertain) as it is not quantified it is excluded from both the
state of the local infrastructure and financing plan, although, the level of service is estimated
to comply with the regulatory needs. The Township would need to make this data validation
a priority in the coming years as the impacts of this infrastructure failing to provide service
can be far-reaching.
D.
TIMEFRAMES FOR REVIEW & UPDATES
This Asset Management Plan should be reviewed and updated on a regular basis.
Recognizing that a full plan and related policies should only be updated at key intervals, it is
important that other asset management components, such as capital budgeting, risk
assessments and updates to the asset register should be integrated into staff's regular
routine. Table 18 below outlines the key timelines.
Table 18
Timeframes for Reviews and Updates
Asset Management Framework
Timeframe
Asset Management Policy
5 Years
Asset Management Plan
3-5 Years
Capital Budget
Annually
Asset Register and Data
Semi-Annually or Annually
Risk assessment (capital prioritization)
Semi-Annually or Annually
Level of Service Framework
Semi-Annually or Annually
Reporting to Council
Annually
This asset management plan has been endorsed by the executive lead of the Township and
will need to be approved, through resolution, by Township Council. The Township will need
to be mindful of the reporting timelines noted above relative to any potential changes to the
timelines referenced by Ontario Regulation 588/17.
E.
PUBLIC REVIEW & COMMENT
Although the Asset Management Plan is intended to aid Township staff and Council make
informed decisions regarding future capital investment needs, the plan is intended to be
Continuous Improvements & Updates | 51
available to the public. Therefore, it is recommended that the Township post this plan as
well as the strategic asset management policy on the website and provide a copy to anyone
upon request. Note that the Township of Perth South will require further public consultation
and input to develop the proposed levels of service required for July 1, 2025.
Conclusions & Recommendations | 52
7. CONCLUSIONS & RECOMMENDATIONS
The objective of this 2022 Plan is to provide the Township of Perth South a complementary
tool to make decisions on how best to manage capital assets in a sustainable way to 2051.
In this section, recommendations based on the analysis undertaken are made.
A.
SUMMARY OF KEY FINDINGS
The Township's asset base is valued at $224.1 million, in relation to the 2021 census
population of about 3,780 persons (about $59,000 per capita).
Overall, a high proportion of $155.5 million (69%) of the Township's assets are
considered to be in Good to Very Good condition. At the same time, approximately
$19.2 million (9%) of infrastructure is considered to be in Poor to Very Poor
condition. The remaining share of $49.4 million (22%) is in Fair condition.
The Township of Perth South has made some effort in recent years to address the
infrastructure gap and improve the condition of assets:
Upper level government grant money received has typically been allocated to capital
asset repair and replacement activities;
The Township has capital replacement reserves, and has been contributing to
reserves on an annual basis, funded through the tax levy;
Through its annual capital budgeting process, the Township addresses critical issues
and assets in need of repair or replacement.
The responsibility to maintain existing infrastructure is challenging, however, in
addition to current capital funding, the Township should increase annual capital
contributions to address current and future infrastructure requirements;
Property taxes are the most secure form of revenue and the Township should
consider increasing tax base revenues, above current practices, to fund capital
works;
Ensure user fees are being utilized to the full extent as allowed under Provincial
legislation. This will help alleviate funding pressures from the tax base and allow
for greater flexibility to fund capital asset repair and replacement activities.
Conclusions & Recommendations | 53
Explore alternative arrangements to provide services - public private
partnerships or shared services if possible.
The Township does not have any existing debt obligations. Therefore, the Township
can use this financing tool for future capital needs as they may arise in tandem with
consideration of future fiscal obligations.
The Township should continue to seek funding from the Federal and Provincial
government (when available) to undertake capital related works.
B.
SUMMARY OF RECOMMENDATIONS
Based on the analysis undertaken for this 2022 Plan the following conclusions can be
reached:
1. Continue to Improve Capital Development Planning Process
The Township should develop a multi-year capital budget and forecasts for all services
based on a 10-year forecast horizon. The capital budget can be based on the asset
replacement schedule in the Township's Asset Management Model.
Capital budgets and forecasts should identify and evaluate each capital project in terms
of the following, including but not limited to:
gross and net project costs;
risk assessment;
timing and phasing;
funding sources;
potential financing and debt servicing costs;
long-term costs, including non-infrastructure solutions, maintenance activities,
renewal/rehabilitation activities, replacement activities, disposal activities and
expansion activities;
capacity to deliver; and
alternative service delivery and procurement options.
A range of quantifiable proposed level of service targets that incorporate the quantity
and quality of capital assets should be explored and established for all services over the
next few years. Targets should be measured, reported on, and adjusted annually. This
requirement will need to be in place by July 1st, 2025 as per O. Reg. 588/17.
Conclusions & Recommendations | 54
Repair and replacement capital works should be prioritized based on a risk assessment.
For example, assets identified as Very Poor and Poor and having a significant
consequence of failure should be prioritized first.
Infrastructure assets which have been provided a Fair condition rating should be
targeted for maintenance to ensure they continue to perform at current levels of service.
The Township should, where possible, coordinate the construction of new infrastructure
with infrastructure repairs and replacement to achieve cost efficiencies.
2. Ensure Asset Inventories Are Updated Regularly
Sound asset management decisions are only possible if information in the asset registry
is accurate. The Township should regularly update the registry to account for asset
purchases, upgrades, and replacements, as well as asset condition ratings and
information on useful life.
The Township should continue to refine the condition assessments for all assets
considered under this 2022 Plan; and
The Township should update this Asset Management Plan at a minimum every 5
years.
3. Optimize the Use of Existing Assets
The Township should implement a range of engineering and non-engineering
approaches to extend the useful life of current assets, taking the lifecycle actions
presented in Appendix D.
The Township should explore opportunities to dispose under utilized
infrastructure/facilities which may not warrant repair/replacement. For example,
underutilized facilities, or surplus land/parks, could be disposed and sold; and
Coordinate assets into specific hubs to create operating and capital repair/maintenance
efficiencies where possible.
Appendix A | 55
APPENDIX A
DEFINITIONS
Appendix A | 56
APPENDIX A - DEFINITIONS
This appendix contains definitions for commonly used terms throughout the Asset
Management Plan.
1. Annual Provision - Given the timing and cost to replace an asset in the future,
the amount of savings required year-over-year to replace that asset on schedule.
This is also referred to as the annual requirement.
2. Condition Assessment - A description of the state of an asset based on
engineered or staff inspections on a 5-tier scale (very poor, poor, fair, good, and
very good).
3. Cumulative Infrastructure Deficit - The difference between available funding
and the cost of works required based on the replacement schedule added over an
extended period. This difference includes the backlog of infrastructure work
which remains unfunded. In years where funding continues to be less than the
need, the deficit grows. Conversely, years where funding exceeds the need, the
deficit decreases.
4. Funding Gap - This is the difference between lifecycle requirement costs and
available funding.
5. O. Reg. 588/17 - Ontario's Asset Management regulation that came into force on
January 1, 2018.
6. Provision Schedule - The required savings year-over-year needed to replace an
asset based on the replacement schedule.
7. Replacement Cost - The cost of an asset to replace or reconstruct that asset at
current prevailing market prices. The replacement cost will typically include all
costs to procure, design, build and acquire the asset.
8. Replacement Schedule - The timing for replacement of an asset based on
remaining useful life, condition or risk.
9. Useful Life - The expected service life of an asset expressed in years.
10. Weighted Condition - The average condition of an asset category weighted
against the replacement costs of assets.
11. Weighted Remaining Useful Life - The average remaining useful life of an asset
category weighted against the replacement cost of assets.
Appendix B | 57
APPENDIX B
STATE OF LOCAL INFRASTRUCTURE
REPORT CARDS
Appendix B | 58
APPENDIX B - TECHNICAL APPENDIX: STATE OF
LOCAL INFRASTRUCTURE
The appendix provides a summary of the Township's assets with reference to quality and
quantity. Some assets have condition assessments based on the conditions developed
through the Township's engineering reports and staff level qualitative assessments. The
balance of assets considered are based on the useful life of the asset relative to its age.
Useful life assumptions for the assets considered under the 2022 Plan were acquired
from the Township's tangible capital asset inventory. Hemson has prepared State of the
Local Infrastructure report cards for each asset category which outline: summary of
inventory, remaining useful life, asset condition, and data reliability. It is intended that
these report cards be updated annually by staff and provided to Council through the
annual budget process to help facilitate reporting on assets on an ongoing basis. The
components of each of the report cards and major assumptions are outlined here.
1.
Summary of Inventory
The summary of inventory provides and overview of the Township's assets including
asset components, the quantity of those components, the replacement cost in 2022
dollars, method used to determine the replacement cost and the engineered useful life of
the assets. The inventory summary is developed based on the Township's capital asset
information and available engineering reports. Furthermore, an asset management
financial model based in Excel was developed as part of the 2022 AMP, this model
contains all detailed asset information.
The assets included in this 2022 Plan are consistent with the asset categories included in
Schedule 51 of the Township's Financial Information Return. Inclusion of all assets in this
Plan therefore meet the asset management plan requirements in the Township's Canada
Community-Building Fund agreement (formerly Gas Tax).
2.
Remaining Useful Life
The remaining useful life summary provides information on the age of assets based on
the year assets were acquired or emplaced and their engineered useful life. Assets are
categorized by remaining useful life based on their replacement cost in 2022 dollars.
Assets categorized as overdue are considered to be beyond their engineered useful life,
however, the asset may still be in good operating condition and therefore age does not
Appendix B | 59
represent the ideal method to determine condition. Typically, assets such as facilities are
used well beyond their engineered useful lives with proper maintenance and repairs.
3.
Asset Condition
A summary of the condition of assets is presented in a pie graph based on the
replacement cost of assets in constant 2022 dollars. As discussed in Section 2, conditions
have been determined based on a 5-tier rating system from very poor to very good.
Condition assessments are based on several sources including, engineering reports, staff
level qualitative assessments and aged based approach. Through the 2022 AMP process
staff undertook a detailed review of the asset conditions, and based on their knowledge,
provided a more up to date condition based on the 5-teir rating scale wherever possible,
however, it is expected that all condition assessments based on "age" be updated and
refined with proper visual inspections. Details on the methodology the Township uses to
assess the condition of assets is summarized in Table 1 below.
Table 1
Methodology Used for Condition Assessments
Asset Category
Methodology
Machinery & Equipment
Age based approach with some staff level qualitative conditions
Vehicles
Age based approach with some staff level qualitative conditions
Buildings
Age based approach with some staff level qualitative conditions
Land Improvements
Age based approach with some staff level qualitative conditions
Bridges & Culverts
Based on BCI provided in the 2021 Bridge Inspection Report
Roads & Related
Based on probable costs from the 2018 Road Management
Study translated to the 5-tier scale for reporting in the 2022
Township AMP
Water Systems
Age based approach
4. Replacement Cost
Replacement values are used to estimate the cost of replacing an asset when it reaches
the end of its engineered design life. The total replacement cost of all assets is estimated
at $211.4 million, and the replacement values are used as the basis for this plan. Specific
methods used to determine replacement costs for each asset category are outlined
below.
Appendix B | 60
Roads
Replacement costs for the Township's roads are based on an average cost per kilometre.
For paved roads, a value of $1.0 million per kilometre was used, while gravel roads are
estimated at $250,000 per kilometre.
Bridges & Culverts
Replacement costs for the Township's bridges & culverts are based on an average cost
per square metre of area. For bridges and culverts, a value of $25,000 per metre was
used.
Remaining Asset Categories
For all other remaining asset categories, Hemson has particularly relied upon the initial
acquisition costs and adjusted these values to current dollars. That said, some specific
adjustments were made to some assets where more accurate replacement cost
valuations from other comparable municipalities could be utilized.
Summary of Inventory
Service Area
Quantity
Replacement
Cost 2022
Replacement
Cost Method
Useful Life
(Years)
Transportation Services
Pooled
$1,491,275
Inflation
1-40
General Government
Pooled
$453,256
Inflation
4-20
Protection Services
Pooled
$413,606
Inflation
1-20
Total
$2,358,137
The Township maintains its inventory of equipment as pooled units for various services including
transportation services, general government, and protection services. This machinery & equipment assets in
the Township's inventory have a total replacement value of $2.4 million based on inflation of acquisition
costs. The equipment assets have an assumed useful life ranging between 1 and 40 years depending on the
type of equipment.
Overall, $714,000 (30%) of machinery & equipment assets are considered to be overdue by virtue of their
design life. Detailed condition analysis of machinery & equipment is not available at this time, however it is
recognized that most equipment is likely in better condition than its age would indicate, therefore some
assets have been assigned a Fair rating. Overall, the Township maintains about $124,600 (5%) of machinery
& equipment assets in Good to Very Good condition. About 76% ($1.8 million) of machinery & equipment
assets are considered to be in Poor or Very Poor condition, which would indicate potential signs of
deterioration. The remaining $438,400 (19%) of machinery & equipment assets are currently in Fair condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.1 Machinery & Equipment
Poor
Very Good,
$41,561 , 2%
Good,
$83,010 , 3%
Fair,
$443,275,
19%
Poor,
$521,248 ,
22%
Very Poor,
$1,269,043 ,
54%
Machinery & Equipment Summary
of Condition
30%
67%
2%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
Overdue
0-9
10-19
20-29
30-39
40-49
50+
Machiney & Equipment by
Remaining Useful Life
Appendix B | 61
Summary of Inventory
Service Area
Quantity
Replacement
Cost 2022
Replacement Cost
Method
Useful Life
(Years)
Protection Services
4
$529,544
Inflation/Recent Costing
5-25
Transportation Services
21
$1,261,733
Inflation/Recent Costing
5-12
Total
25
$1,791,277
The Township operates vehicles for various services, which include protection and transportation services,
with a total replacement value of $1.8 million. The vehicles assets have an assumed useful life ranging
between 5 to 25 years depending on the type of vehicles.
Overall, approximately $456,500 (30%) of vehicle assets are considered to be overdue by virtue of their design
life. The remaining $1.2 million (67%) of the vehicles have between 0 and 9 years of remaining useful life
remaining.
Overall, the Municipality maintains $354,000 (20%) of vehicle assets in Good or Very Good condition. About
719,900 (40%) of vehicles assets are considered to be in Poor or Very Poor condition, which would indicate
potential signs of deterioration which need to be monitored closely. The remaining $717,400 (40%) of vehicle
assets are currently considered in Fair condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.2 Vehicles
Poor
Very
Good, $- ,
0%
Good,
$353,966 ,
20%
Fair,
$717,445 ,
40%
Poor,
$55,171 ,
3%
Very Poor,
$664,695 ,
37%
Vehicles Summary of Condition
30%
67%
2%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Vehicles by Remaining Useful Life
Appendix B | 62
Building Space by Service Area
Replacement Cost
2022
Replacement Cost
Method
Useful Life
(Years)
Transportation Services
$340,825
Recent Costing
30 - 100
Environmental Services
$6,603
Recent Costing
30 - 100
Recreation & Cultural Services
$1,555,965
Recent Costing
30 - 100
General Government
$969,820
Recent Costing
30 - 100
Protection Services
$940,014
Recent Costing
30 - 100
Total
$3,813,227
The Township maintains a number of buildings for various services including: transportation services,
environmental services, recreation & cultural services, general government, and protection services. These
buildings have a total replacement value of $3.8 million and an assumed useful life of 30 - 100 years based
on information provided from Township staff. The replacement values are based historical costs and useful
life assumptions.
Overall, the Township maintains about $2.6 million (69%) of building assets in Good to Very Good condition.
18% ($678,100) of building assets are considered to be in Poor or Very Poor condition. The remainder of the
assets $495,000 (13%) are currently in Fair condition. Therefore, overall the Township's buildings are in Good
condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.3 Buildings
Good
Very Good,
$1,001,081 ,
26%
Good,
$1,639,046 ,
43%
Fair,
$495,041 ,
13%
Poor,
$592,799 ,
16%
Very Poor,
$85,260 , 2%
Buildings Summary of Condition
1%
1%
7%
20%
22%
4%
45%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Buildings by Remaining Useful
Life
Appendix B | 63
Service Area
Replacement Cost
2022
Replacement Cost
Method
Useful Life
(Years)
Recreation & Cultural Services
$513,162
Inflation
1-50
Health Services
$51
Inflation
101
Transportation Services
$7,224
Inflation
1
General Government
$52,321
Inflation
20
Environmental Services
$592,607
Inflation
75
Protection Services
$38,447
Inflation
75
Total
$1,203,832
The Township owns various types of land improvements including those related to recreation & cultural
services, health services, transportation services, general government, environmental services, and protection
services. These land improvements have a total replacement value of $1.2 million and have an assumed
useful life of 1-101 years depending on the type of land improvement.
Overall, $181,600 (15%) of land improvements are considered to be overdue by virtue of their design life. That
said, 52% of assets in this category have more than 50 years of remaining useful life.
As the condition analysis for this category is based on the relative age of each asset, the conditions closely
link to the remaining useful life graph. Overall, the Township maintains $$755,700 (63%) of land
improvements in Good to Very Good condition. $150,800 (13%) of land improvements are considered to be in
Fair condition. The remainder of the land improvements $297,400 (18%) are considered to be in Poor or Very
Poor condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.4 Land Improvements
Good
Very Good,
$724,003 ,
60%
Good,
$31,701 , 3%
Fair,
$150,789 ,
12%
Poor,
$59,5
65 ,
5%
Very Poor,
$237,774 ,
20%
Land Improvements Summary of
Condition
15%
10%
21%
2%
52%
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Land Improvements by Remaining
Useful Life
Appendix B | 64
Summary of Inventory
Type
Quantity
Replacement
Cost 2022
Replacement
Cost Method
Useful Life
(Years)
Bridge
32
$16,388,750
Recent Costing
45
Culvert
28
$3,021,250
Recent Costing
45
Total
60
$19,410,000
The Township owns and maintains 32 bridges and 28 culverts with a total replacement value of $6.7 million.
The bridges and culverts have an assumed useful life of 45 years. Information used to develop the asset
inventory is based on the Township's 2021 Bridge Inspection Report.
Overall, $13.9 million (71%) of bridge and culvert assets are considered to be overdue by virtue of their design
life. The Township of Perth South maintains about $7.7 million (40%) of bridge and culvert assets in Good to
Very Good condition. About 3% ($0.6 million) of bridge and culvert assets are considered to be in Poor
condition, which would indicate signs of deterioration and these assets should be considered for repair or
replacement. The remainder of the assets $11.1 million (57%) are maintained in Fair condition. Condition
assessments have been assumed based on the Township's 2021 Bridge Inspection Report.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.5 Bridges & Culverts
Fair
Very Good,
$1,842,500 ,
10%
Good,
$5,871,250 ,
30%
Fair,
$11,050,000 ,
57%
Poor,
$646,250 , 3%
Very Poor, $-
, 0%
Bridges & Culverts Summary of
Condition
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Bridges & Culverts by Remaining
Useful Life
Appendix B | 65
Summary of Inventory
Roads by Type
Quantity
(km)
Replacement
Cost 2022
Replacement
Cost Method
Useful Life
(Years)
Related Roads
$264,636
Recent Costing
25
Paved Roads
Local
145.04
$145,038,000
Recent Costing
30
Arterial
8.59
$8,592,000
Recent Costing
30
Sub-Total Paved
153.63
$153,630,000
Gravel
149.99
$39,845,750
Recent Costing
Not Applicable
Total
303.62
$193,740,386
The Municipality maintains 303.62 km of roads of which 145.04 km are local paved roads, 8.59 km are arterial
paved roads, and 149.99 km are gravel roads. The paved roads have an assumed useful life of 30 years. The
asset replacement values are based on recent replacement value costing of $1.0 million per km for paved
roads and $250,000 per km for gravel roads. Inventory information is based on the Township's 2018 Road
Management Study. Additionally, the Township of Perth South maintains 24 streetlights which have a
replacement cost of approximately $264,600.
Overall, the Municipality maintains $143.7 million (74%) of roads & related assets in Good to Very Good
condition. About 7% ($13.6 million) of road assets are considered to be in Poor or Very Poor condition, which
would indicate signs of deterioration and these assets should be considered for repair or replacement. The
remainder of the road assets $36.5 million (19%) are maintained in Fair condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.6 Roads & Related
Good
Very Good,
$84,580,500 ,
44%
Good,
$59,140,242 ,
30%
Fair,
$36,459,869 ,
19%
Poor,
$3,134,816 , 2%
Very Poor,
$10,424,959 ,
5%
Roads & Related Summary of Condition
Appendix B | 66
Summary of Inventory
Facility Type
Quantity
Replacement
Cost 2022
Replacement
Cost Method
Useful Life
(Years)
Environmental Services
58
$1,785,734
Inflation
1 - 50
Total
$1,785,734
The Township maintains water systems for environmental services with a total replacement value of $1.8
million and an assumed useful life of 1 - 50 years.
Overall, 10% ($180,600) of water systems assets are considered to be overdue by virtue of their design life.
Most water systems assets do have 0 - 9 years of remaining useful life remaining.
As the condition analysis for this category is based on the relative age of each asset, the conditions closely
link to the remaining useful life graph. Overall, the Township maintains $175,000 (10%) of water systems
assets in Good to Very Good condition. $1.5 million (85%) of water systems assets are considered to be in
Poor or Very Poor condition. The remaining 5% ($92,100) of the assets are maintained in Fair condition.
Data Confidence and Reliability:
Level 4 (Reliable)
Dataset is complete and estimated to be accurate +/- 10%.
B.7 Water Systems
Poor
Very Good,
$- , 0%
Good,
$175,036 ,
10%
Fair, $92,055
, 5%
Poor,
$379,795 ,
21%
Very Poor,
$1,138,847 ,
64%
Water Systems Summary of
Condition
10%
60%
20%
3%
7%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Water Systems by Remaining
Useful Life
Appendix B | 67
Appendix C | 68
APPENDIX C
ASSET MANAGEMENT STRATEGY
Appendix C | 69
APPENDIX C - ASSET MANAGEMENT STRATEGY
Roads
The roads & related category, includes all Township roads and related infrastructure.
Regular maintenance and inspections are required to maintain safety and operational
standards for roads. Table 5 summarizes general actions that can be taken to ensure that
roads are maintained in a state of good repair.
Appendix C | 70
Table 1
Lifecycle Activities: Roads
Areas
Lifecycle Activities
Non-
Infrastructure
Solutions
Regularly scheduling of repair work orders.
Annually provide the necessary departments with related information when new asset
information is acquired.
Continue to conduct updates to the Road Management Study in conjunction with
updates to the AMP (minimum every 5 years).
Monitor and revise load limits to structures as needed.
Maintenance
Activities
Regular maintenance including, road sweeping, plowing, sanding, salting, dust control,
roadside vegetation management, and roadside ditch cleanout and clearing.
Routine maintenance of existing gravel roads consists of reclaiming shoulder granulars
for road, adding granulars as required, compacting, grading and adding calcium as per
2018 RMS
Continued maintenance of roads in line with O. Reg. 239/02 Minimum Maintenance
Standards for Municipal Highways.
Continue to monitor road restrictions based on Township policy, in particular for load
restrictions in effect during the spring months
Renewal/
Rehabilitation
Implement recommendations of the 2018 RMS including:
Pulverizing and resurfacing to address minor structural deficiencies (rural and semi-
urban roads)
Resurfacing to address minor structural deficiencies (urban roads); base and surface
improvements to address structural needs (rural and semi-urban roads);
Replacement
Implement recommendations of the 2018 RMS including:
Full reconstruction to address major structural deficiencies or issues with the road sub-
grade and sub-base (including the presence of rock).
Disposal
Dispose or sell assets that are no longer in use or are in poor condition.
Expansion
Implement recommendations of the 2018 RNS
Widening or widening and resurfacing to address surface width deficiencies and/or
capacity deficiencies.
Identify needs through regular capital planning. Ensure assumed roads are tracked
through the asset management plan.
Service improvements made where possible (new technologies, environmental impacts,
etc.).
Appendix C | 71
Buildings
There are a variety of buildings in the Township that are utilized for various purposes.
Usually, customized maintenance plans are required for each facility depending on their
purpose. Table 2 summarizes general actions that can be employed to ensure that
Township facilities are maintained in a state of good repair.
Table 2
Lifecycle Activities: Buildings
Areas
Lifecycle Activities
Non-Infrastructure
Solutions
Business cases, special studies and consultation with stakeholders should be done
when constructing a new facility or modifying an existing facility.
Review of the design and layout of buildings and properties to minimize
maintenance costs through design efficiencies over the lifecycle of buildings.
Maintenance
Activities
Buildings and facilities inspected regularly in accordance with occupational health
and safety regulations
HVAC and heating systems inspected regularly.
Plumbing inspected regularly.
Maintain electrical systems to Electrical Safety Authority standards.
Fire alarms, fire extinguishers and emergency lights inspected regularly.
Renewal/
Rehabilitation
Regular component repairs or rehabilitation.
Replacement
Asset replacement based on inspections.
Asset replacement forecast reviewed annually.
Disposal
Selling or demolishing facilities that are no longer in use or underutilized.
Re-use or sell land not in use.
Expansion
Identify needs through regular capital planning.
Assumptions on required facility space through development agreements if
necessary.
Appendix C | 72
Bridges and Culverts
The Township's 2021 Bridge Inspection Report provides a detailed guide on the
recommended works associated to maintaining the Township's bridges and culverts. Table
3 provides a summary of the lifecycle actions undertaken on these assets to maintain
current levels of service with reference to this report.
Table 3
Lifecycle Activities: Bridges and Culverts
Areas
Lifecycle Actions
Non-
Infrastructure
Solutions
Annually provide the necessary departments with related information when new asset
information is acquired.
Continue to conduct updates to Bridge Inspection Report every 2 years as required by
Provincial regulation.
Monitor and revise load limits to structures as needed.
Maintenance
Activities
Regular maintenance including, road sweeping, plowing, sanding, salting, dust control,
roadside vegetation management, and roadside ditch cleanout and clearing.
Renewal/
Rehabilitation
Undertaking rehabilitation works recommended through the 2021 Bridge Inspection
Report
Replacement
Replacement of bridges or culverts based on the recommendations of the 2021
Municipal Structure Inventory and Inspection and the 2022 AMP as needed.
Disposal
Disposal of structures that are in poor condition or no longer in use.
Expansion
Identify needs through regular capital planning. Ensure assumed roads are tracked
through the asset management plan.
Service improvements made where possible (new technologies, environmental impacts,
etc.).
Appendix C | 73
Other Asset Categories
Table 4 provides some general points on the actions taken to allow assets to continue to
provide the current level of service. It is noted that in general the Township undertakes all
the actions listed but should continue to update the table with more details for specific
assets on an ongoing basis.
Table 4
Lifecycle Activities: Other Asset Categories
Areas
Lifecycle Activities
Non-
Infrastructure
Solutions
Regularly scheduling of repair work orders.
Operating budgets should be informed by regular inspections as needed.
Adjust service levels if necessary.
Annually provide the necessary departments with related information when new and
additional assets are acquired.
Training for staff to ensure safe and efficient operation of assets
Maintenance
Activities
Preventative maintenance program for all Township assets
Regular inspection of all Township assets
Annual inspection, service and certification performed on all applicable assets
Regular safety inspections of assets before and after use to ensure safety standards are
maintained (for applicable assets such as vehicles and equipment)
Renewal/
Rehabilitation
Regular component repairs based on inspections.
Mid-life component replacements are usually common for larger equipment and can be
scheduled accordingly (engine/transmission rebuilds for example).
Replacement
Asset replacement based on inspections.
Asset replacement forecast reviewed annually.
Disposal
Dispose or sell assets that are no longer in use or are in poor condition.
Expansion
Identify needs through regular capital planning.
Service improvements made where possible (new technologies, environmental impacts,
etc.).
Appendix D | 74
APPENDIX D
DETAILED FINANCING STRATEGY TABLES
Township of Perth South
2020 Asset Management Plan
Close Cumulative Infrastructure Deficit by (Tax Funded Services)
Legend
Year
Non-
Infrastructure
Solutions
Operations &
Maintenance
Operations &
Maintenance -
RMS Study Need
Capital
Renewal/
Replacement
and Disposal
Expansion
Activities
(Annual
Provision for
Replacement)
Total Lifecycle
Costs
O&M from
Taxation (less
road increase)
Capital from
Taxation
(Including
Transfers to
Reserves)1
One Time
Capital Surplus
Yearly Increase
in Tax Funding
($)
Yearly Increase
in Tax Funding
(%)
Gas Tax
Other Grants
Existing
Reserves
Total Capital
Funding
Annual Funding
Gap
Cumulative
Infrastructure
Deficit
2022
1,173,578
$
518,598
$
4,038,662
$
5,730,839
$
1,173,578
$
1,400,437
$
676,713
$
120,835
$
664,382
$
1,439,573
$
$
5,475,519
255,320
$
255,320
$
2023
75,000
$
1,173,578
$
518,598
$
4,008,084
$
51,262
$
5,826,523
$
1,173,578
$
1,543,204
$
142,767
$
10.2%
126,088
$
583,330
$
1,439,573
$
$
4,865,774
960,749
$
1,216,069
$
2024
75,000
$
1,173,578
$
518,598
$
3,880,088
$
51,262
$
5,698,526
$
1,173,578
$
1,685,972
$
142,767
$
9.3%
126,088
$
1,439,573
$
$
4,425,211
1,273,315
$
2,489,384
$
2025
75,000
$
1,173,578
$
518,598
$
3,741,421
$
51,262
$
5,559,859
$
1,173,578
$
1,828,739
$
142,767
$
8.5%
126,088
$
1,439,573
$
$
4,567,978
991,881
$
3,481,265
$
2026
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
1,971,506
$
142,767
$
7.8%
126,088
$
1,439,573
$
$
4,710,746
651,054
$
4,132,319
$
2027
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
2,114,273
$
142,767
$
7.2%
126,088
$
$
3,413,940
1,947,860
$
6,080,178
$
2028
75,000
$
1,173,578
$
518,598
$
3,460,246
$
51,262
$
5,278,685
$
1,173,578
$
2,257,041
$
142,767
$
6.8%
126,088
$
$
3,556,707
1,721,978
$
7,802,156
$
2029
75,000
$
1,173,578
$
518,598
$
3,366,598
$
51,262
$
5,185,037
$
1,173,578
$
2,399,808
$
142,767
$
6.3%
126,088
$
$
3,699,474
1,485,563
$
9,287,719
$
2030
75,000
$
1,173,578
$
518,598
$
3,366,397
$
51,262
$
5,184,835
$
1,173,578
$
2,542,575
$
142,767
$
5.9%
126,088
$
$
3,842,242
1,342,594
$
10,630,313
$
2031
75,000
$
1,173,578
$
518,598
$
3,336,907
$
51,262
$
5,155,346
$
1,173,578
$
2,685,343
$
142,767
$
5.6%
126,088
$
$
3,985,009
1,170,337
$
11,800,650
$
2032
75,000
$
1,173,578
$
518,598
$
3,244,274
$
51,262
$
5,062,713
$
1,173,578
$
2,828,110
$
142,767
$
5.3%
126,088
$
$
4,127,776
934,936
$
12,735,586
$
2033
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,970,877
$
142,767
$
5.0%
126,088
$
$
4,270,543
783,843
$
13,519,429
$
2034
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
3,113,644
$
142,767
$
4.8%
126,088
$
$
4,413,311
641,076
$
14,160,505
$
2035
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
3,256,412
$
142,767
$
4.6%
126,088
$
$
4,556,078
498,308
$
14,658,813
$
2036
75,000
$
1,173,578
$
518,598
$
3,234,042
$
51,262
$
5,052,480
$
1,173,578
$
3,399,179
$
142,767
$
4.4%
126,088
$
$
4,698,845
353,635
$
15,012,448
$
2037
75,000
$
1,173,578
$
518,598
$
3,233,833
$
51,262
$
5,052,271
$
1,173,578
$
3,541,946
$
142,767
$
4.2%
126,088
$
$
4,841,613
210,659
$
15,223,106
$
2038
75,000
$
1,173,578
$
518,598
$
3,202,539
$
51,262
$
5,020,978
$
1,173,578
$
3,684,714
$
142,767
$
4.0%
126,088
$
$
4,984,380
36,598
$
15,259,704
$
2039
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
3,827,481
$
142,767
$
3.9%
126,088
$
$
5,127,147
(108,457)
$
15,151,247
$
2040
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
3,970,248
$
142,767
$
3.7%
126,088
$
$
5,269,914
(251,224)
$
14,900,023
$
2041
75,000
$
1,173,578
$
518,598
$
3,018,536
$
51,262
$
4,836,975
$
1,173,578
$
4,113,015
$
142,767
$
3.6%
126,088
$
$
5,412,682
(575,707)
$
14,324,317
$
2042
75,000
$
1,173,578
$
518,598
$
2,958,158
$
51,262
$
4,776,597
$
1,173,578
$
4,255,783
$
142,767
$
3.5%
126,088
$
$
5,555,449
(778,852)
$
13,545,465
$
2043
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
4,398,550
$
142,767
$
3.4%
126,088
$
$
5,698,216
(925,885)
$
12,619,580
$
2044
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
4,541,317
$
142,767
$
3.2%
126,088
$
$
5,840,984
(1,068,652)
$
11,550,928
$
2045
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
4,684,085
$
142,767
$
3.1%
126,088
$
$
5,983,751
(1,211,419)
$
10,339,509
$
2046
75,000
$
1,173,578
$
518,598
$
2,946,272
$
51,262
$
4,764,711
$
1,173,578
$
4,826,852
$
142,767
$
3.0%
126,088
$
$
6,126,518
(1,361,807)
$
8,977,702
$
2047
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
4,969,619
$
142,767
$
3.0%
126,088
$
$
6,269,285
(1,505,175)
$
7,472,526
$
2048
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
5,112,386
$
142,767
$
2.9%
126,088
$
$
6,412,053
(1,647,943)
$
5,824,584
$
2049
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
5,255,154
$
142,767
$
2.8%
126,088
$
$
6,554,820
(1,790,710)
$
4,033,874
$
2050
75,000
$
1,173,578
$
518,598
$
2,903,407
$
51,262
$
4,721,845
$
1,173,578
$
5,397,921
$
142,767
$
2.7%
126,088
$
$
6,697,587
(1,975,742)
$
2,058,131
$
2051
75,000
$
1,173,578
$
518,598
$
2,963,785
$
51,262
$
4,782,223
$
1,173,578
$
5,540,688
$
142,767
$
2.6%
126,088
$
$
6,840,355
(2,058,131)
$
0
$
Note 1: Includes taxation funding for capital + transfer to reserves for vehicle replacements
Annual Increase
142,767
$
2022 Total Tax Levy
3,666,856
$
Inc. as % of Tax Levy
3.89%
Table 1
Close Cumulative Infrastructure Deficit by 2051
1. Lifecycle Costs
2. Forecast of Revenues
3. Funding Gap Calculation
Appendix D | 75
Township of Perth South
2020 Asset Management Plan
Legend
Year
Non-
Infrastructure
Solutions
Operations &
Maintenance
Operations &
Maintenance -
RMS Study Need
Capital
Renewal/
Replacement
and Disposal
Expansion
Activities
(Annual
Provision for
Replacement)
Total Lifecycle
Costs
O&M from
Taxation (less
road increase)
Capital from
Taxation
(Including
Transfers to
Reserves)1
One Time
Capital Surplus
Yearly Increase
in Tax Funding
($)
Yearly Increase
in Tax Funding
(%)
Gas Tax
Other Grants
Existing
Reserves
Total Capital
Funding
Annual Funding
Gap
Cumulative
Infrastructure
Deficit
2022
-
$
1,173,578
$
518,598
$
4,038,662
$
-
$
5,730,839
$
1,173,578
$
1,400,437
$
676,713
$
120,835
$
664,382
$
1,439,573
$
$
5,475,519
255,320
$
255,320
$
2023
75,000
$
1,173,578
$
518,598
$
4,008,084
$
51,262
$
5,826,523
$
1,173,578
$
1,512,904
$
112,467
$
8.0%
126,088
$
583,330
$
1,439,573
$
$
4,835,474
991,049
$
1,246,369
$
2024
75,000
$
1,173,578
$
518,598
$
3,880,088
$
51,262
$
5,698,526
$
1,173,578
$
1,625,371
$
112,467
$
7.4%
126,088
$
1,439,573
$
$
4,364,610
1,333,916
$
2,580,285
$
2025
75,000
$
1,173,578
$
518,598
$
3,741,421
$
51,262
$
5,559,859
$
1,173,578
$
1,737,838
$
112,467
$
6.9%
126,088
$
1,439,573
$
$
4,477,077
1,082,782
$
3,663,067
$
2026
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
1,850,305
$
112,467
$
6.5%
126,088
$
1,439,573
$
$
4,589,544
772,255
$
4,435,322
$
2027
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
1,962,772
$
112,467
$
6.1%
126,088
$
$
3,262,438
2,099,362
$
6,534,684
$
2028
75,000
$
1,173,578
$
518,598
$
3,460,246
$
51,262
$
5,278,685
$
1,173,578
$
2,075,239
$
112,467
$
5.7%
126,088
$
$
3,374,905
1,903,780
$
8,438,464
$
2029
75,000
$
1,173,578
$
518,598
$
3,366,598
$
51,262
$
5,185,037
$
1,173,578
$
2,187,706
$
112,467
$
5.4%
126,088
$
$
3,487,372
1,697,665
$
10,136,129
$
2030
75,000
$
1,173,578
$
518,598
$
3,366,397
$
51,262
$
5,184,835
$
1,173,578
$
2,300,172
$
112,467
$
5.1%
126,088
$
$
3,599,839
1,584,997
$
11,721,126
$
2031
75,000
$
1,173,578
$
518,598
$
3,336,907
$
51,262
$
5,155,346
$
1,173,578
$
2,412,639
$
112,467
$
4.9%
126,088
$
$
3,712,306
1,443,040
$
13,164,166
$
2032
75,000
$
1,173,578
$
518,598
$
3,244,274
$
51,262
$
5,062,713
$
1,173,578
$
2,525,106
$
112,467
$
4.7%
126,088
$
$
3,824,773
1,237,940
$
14,402,106
$
2033
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,637,573
$
112,467
$
4.5%
126,088
$
$
3,937,240
1,117,147
$
15,519,253
$
2034
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,750,040
$
112,467
$
4.3%
126,088
$
$
4,049,706
1,004,680
$
16,523,932
$
2035
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,862,507
$
112,467
$
4.1%
126,088
$
$
4,162,173
892,213
$
17,416,145
$
2036
75,000
$
1,173,578
$
518,598
$
3,234,042
$
51,262
$
5,052,480
$
1,173,578
$
2,974,974
$
112,467
$
3.9%
126,088
$
$
4,274,640
777,840
$
18,193,985
$
2037
75,000
$
1,173,578
$
518,598
$
3,233,833
$
51,262
$
5,052,271
$
1,173,578
$
3,087,441
$
112,467
$
3.8%
126,088
$
$
4,387,107
665,164
$
18,859,149
$
2038
75,000
$
1,173,578
$
518,598
$
3,202,539
$
51,262
$
5,020,978
$
1,173,578
$
3,199,908
$
112,467
$
3.6%
126,088
$
$
4,499,574
521,404
$
19,380,552
$
2039
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
3,312,375
$
112,467
$
3.5%
126,088
$
$
4,612,041
406,649
$
19,787,202
$
2040
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
3,424,842
$
112,467
$
3.4%
126,088
$
$
4,724,508
294,182
$
20,081,384
$
2041
75,000
$
1,173,578
$
518,598
$
3,018,536
$
51,262
$
4,836,975
$
1,173,578
$
3,537,309
$
112,467
$
3.3%
126,088
$
$
4,836,975
-
$
20,081,384
$
2042
75,000
$
1,173,578
$
518,598
$
2,958,158
$
51,262
$
4,776,597
$
1,173,578
$
3,649,776
$
112,467
$
3.2%
126,088
$
$
4,949,442
(172,845)
$
19,908,539
$
2043
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
3,762,243
$
112,467
$
3.1%
126,088
$
$
5,061,909
(289,577)
$
19,618,962
$
2044
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
3,874,709
$
112,467
$
3.0%
126,088
$
$
5,174,376
(402,044)
$
19,216,918
$
2045
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
3,987,176
$
112,467
$
2.9%
126,088
$
$
5,286,843
(514,511)
$
18,702,407
$
2046
75,000
$
1,173,578
$
518,598
$
2,946,272
$
51,262
$
4,764,711
$
1,173,578
$
4,099,643
$
112,467
$
2.8%
126,088
$
$
5,399,310
(634,599)
$
18,067,808
$
2047
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
4,212,110
$
112,467
$
2.7%
126,088
$
$
5,511,777
(747,667)
$
17,320,142
$
2048
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
4,324,577
$
112,467
$
2.7%
126,088
$
$
5,624,244
(860,134)
$
16,460,008
$
2049
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
4,437,044
$
112,467
$
2.6%
126,088
$
$
5,736,710
(972,600)
$
15,487,408
$
2050
75,000
$
1,173,578
$
518,598
$
2,903,407
$
51,262
$
4,721,845
$
1,173,578
$
4,549,511
$
112,467
$
2.5%
126,088
$
$
5,849,177
(1,127,332)
$
14,360,075
$
2051
75,000
$
1,173,578
$
518,598
$
2,963,785
$
51,262
$
4,782,223
$
1,173,578
$
4,661,978
$
112,467
$
2.5%
126,088
$
$
5,961,644
(1,179,421)
$
13,180,654
$
30-Year Infrastructure Deficit
Note 1: Includes taxation funding for capital + transfer to reserves for vehicle replacements
Annual Increase
112,467
$
2022 Total Tax Levy
3,666,856
$
Inc. as % of Tax Levy
3.07%
1. Lifecycle Costs
2. Forecast of Revenues
3. Funding Gap Calculation
Close In-Year Funding Gap by 2041
Table 2
Appendix D | 76
Township of Perth South
2020 Asset Management Plan
Legend
Year
Non-
Infrastructure
Solutions
Operations &
Maintenance
Operations &
Maintenance -
RMS Study Need
Capital
Renewal/
Replacement
and Disposal
Expansion
Activities
(Annual
Provision for
Replacement)
Total Lifecycle
Costs
O&M from
Taxation (less
road increase)
Capital from
Taxation
(Including
Transfers to
Reserves)1
One Time
Capital Surplus
Yearly Increase
in Tax Funding
($)
Yearly Increase
in Tax Funding
(%)
Gas Tax
Other Grants
Existing
Reserves
Total Capital
Funding
Annual Funding
Gap
Cumulative
Infrastructure
Deficit
2022
-
$
1,173,578
$
518,598
$
4,038,662
$
-
$
5,730,839
$
1,173,578
$
1,400,437
$
676,713
$
120,835
$
664,382
$
1,439,573
$
$
5,475,519
255,320
$
255,320
$
2023
75,000
$
1,173,578
$
518,598
$
4,008,084
$
51,262
$
5,826,523
$
1,173,578
$
1,472,234
$
71,797
$
5.1%
126,088
$
583,330
$
1,439,573
$
$
4,794,804
1,031,719
$
1,287,039
$
2024
75,000
$
1,173,578
$
518,598
$
3,880,088
$
51,262
$
5,698,526
$
1,173,578
$
1,544,031
$
71,797
$
4.9%
126,088
$
1,439,573
$
$
4,283,271
1,415,255
$
2,702,294
$
2025
75,000
$
1,173,578
$
518,598
$
3,741,421
$
51,262
$
5,559,859
$
1,173,578
$
1,615,829
$
71,797
$
4.6%
126,088
$
1,439,573
$
$
4,355,068
1,204,791
$
3,907,085
$
2026
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
1,687,626
$
71,797
$
4.4%
126,088
$
1,439,573
$
$
4,426,866
934,934
$
4,842,019
$
2027
75,000
$
1,173,578
$
518,598
$
3,543,361
$
51,262
$
5,361,800
$
1,173,578
$
1,759,423
$
71,797
$
4.3%
126,088
$
$
3,059,090
2,302,710
$
7,144,729
$
2028
75,000
$
1,173,578
$
518,598
$
3,460,246
$
51,262
$
5,278,685
$
1,173,578
$
1,831,220
$
71,797
$
4.1%
126,088
$
$
3,130,887
2,147,798
$
9,292,527
$
2029
75,000
$
1,173,578
$
518,598
$
3,366,598
$
51,262
$
5,185,037
$
1,173,578
$
1,903,018
$
71,797
$
3.9%
126,088
$
$
3,202,684
1,982,353
$
11,274,880
$
2030
75,000
$
1,173,578
$
518,598
$
3,366,397
$
51,262
$
5,184,835
$
1,173,578
$
1,974,815
$
71,797
$
3.8%
126,088
$
$
3,274,481
1,910,354
$
13,185,235
$
2031
75,000
$
1,173,578
$
518,598
$
3,336,907
$
51,262
$
5,155,346
$
1,173,578
$
2,046,612
$
71,797
$
3.6%
126,088
$
$
3,346,278
1,809,068
$
14,994,302
$
2032
75,000
$
1,173,578
$
518,598
$
3,244,274
$
51,262
$
5,062,713
$
1,173,578
$
2,118,409
$
71,797
$
3.5%
126,088
$
$
3,418,076
1,644,637
$
16,638,939
$
2033
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,190,207
$
71,797
$
3.4%
126,088
$
$
3,489,873
1,564,513
$
18,203,452
$
2034
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,262,004
$
71,797
$
3.3%
126,088
$
$
3,561,670
1,492,716
$
19,696,169
$
2035
75,000
$
1,173,578
$
518,598
$
3,235,948
$
51,262
$
5,054,386
$
1,173,578
$
2,333,801
$
71,797
$
3.2%
126,088
$
$
3,633,467
1,420,919
$
21,117,087
$
2036
75,000
$
1,173,578
$
518,598
$
3,234,042
$
51,262
$
5,052,480
$
1,173,578
$
2,405,598
$
71,797
$
3.1%
126,088
$
$
3,705,265
1,347,215
$
22,464,303
$
2037
75,000
$
1,173,578
$
518,598
$
3,233,833
$
51,262
$
5,052,271
$
1,173,578
$
2,477,396
$
71,797
$
3.0%
126,088
$
$
3,777,062
1,275,209
$
23,739,512
$
2038
75,000
$
1,173,578
$
518,598
$
3,202,539
$
51,262
$
5,020,978
$
1,173,578
$
2,549,193
$
71,797
$
2.9%
126,088
$
$
3,848,859
1,172,119
$
24,911,631
$
2039
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
2,620,990
$
71,797
$
2.8%
126,088
$
$
3,920,656
1,098,034
$
26,009,665
$
2040
75,000
$
1,173,578
$
518,598
$
3,200,252
$
51,262
$
5,018,690
$
1,173,578
$
2,692,787
$
71,797
$
2.7%
126,088
$
$
3,992,454
1,026,237
$
27,035,902
$
2041
75,000
$
1,173,578
$
518,598
$
3,018,536
$
51,262
$
4,836,975
$
1,173,578
$
2,764,584
$
71,797
$
2.7%
126,088
$
$
4,064,251
772,724
$
27,808,626
$
2042
75,000
$
1,173,578
$
518,598
$
2,958,158
$
51,262
$
4,776,597
$
1,173,578
$
2,836,382
$
71,797
$
2.6%
126,088
$
$
4,136,048
640,549
$
28,449,175
$
2043
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
2,908,179
$
71,797
$
2.5%
126,088
$
$
4,207,845
564,486
$
29,013,662
$
2044
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
2,979,976
$
71,797
$
2.5%
126,088
$
$
4,279,642
492,689
$
29,506,351
$
2045
75,000
$
1,173,578
$
518,598
$
2,953,893
$
51,262
$
4,772,332
$
1,173,578
$
3,051,773
$
71,797
$
2.4%
126,088
$
$
4,351,440
420,892
$
29,927,243
$
2046
75,000
$
1,173,578
$
518,598
$
2,946,272
$
51,262
$
4,764,711
$
1,173,578
$
3,123,571
$
71,797
$
2.4%
126,088
$
$
4,423,237
341,474
$
30,268,717
$
2047
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
3,195,368
$
71,797
$
2.3%
126,088
$
$
4,495,034
269,076
$
30,537,793
$
2048
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
3,267,165
$
71,797
$
2.2%
126,088
$
$
4,566,831
197,279
$
30,735,071
$
2049
75,000
$
1,173,578
$
518,598
$
2,945,671
$
51,262
$
4,764,110
$
1,173,578
$
3,338,962
$
71,797
$
2.2%
126,088
$
$
4,638,629
125,481
$
30,860,553
$
2050
75,000
$
1,173,578
$
518,598
$
2,903,407
$
51,262
$
4,721,845
$
1,173,578
$
3,410,760
$
71,797
$
2.2%
126,088
$
$
4,710,426
11,419
$
30,871,972
$
2051
75,000
$
1,173,578
$
518,598
$
2,963,785
$
51,262
$
4,782,223
$
1,173,578
$
3,482,557
$
71,797
$
2.1%
126,088
$
$
4,782,223
-
$
30,871,972
$
30-Year Infrastructure Deficit
152,223,908
$
121,351,936
$
Note 1: Includes taxation funding for capital + transfer to reserves for vehicle replacements
Annual Increase
71,797
$
2022 Total Tax Levy
3,666,856
$
Inc. as % of Tax Levy
1.96%
1. Lifecycle Costs
2. Forecast of Revenues
3. Funding Gap Calculation
Close In-Year Funding Gap by 2051
Table 3
Appendix D | 77
Appendix E | 78
APPENDIX E
HIGH PRIORITY CAPITAL WORKS
Appendix E | 79
APPENDIX E - HIGH PRIORITY CAPITAL WORKS
The following is a list of high priority capital works for the Township. In consultation with
Township staff, and the results of the Asset Management Plan, the following table outlines
a list of key projects which have been identified as a high priority and require immediate
attention.
Asset Class
Project Description
Estimated Cost
Machinery &
Equipment
Machinery & Equipment repair for Very Poor
Machinery & Equipment as Identified in the
AMP
$1,269,040
Vehicles
2012 7600 International Truck
Sterling LT9500 Tandem Dump Truck
$241,070
$238,040
Land
Improvements
Optimists Hall Paved Parking Lot
$126,840
Bridges &
Culverts
Rigid Frame Vertical Legs
$420,000
Roads &
Related
Road 164 (Line 4 - Line 2)
Perth Line 20 (Road 122 - Road 125)
Line 34 (Hammond Street - Road 125)
Road 164 (Davis Street - Line 4)
$2,074,000
$2,066,000
$1,856,000
$1,786,000
Water
Systems
Road 122 W/M
Perth Line 20 W/M
Pumphouse Building Services
$274,440
$198,440
$194,030
The level of capital repair and replacement works required would necessitate the Township
to seek funding from a variety of sources, in addition to tax or utility rate based revenues, to
fund all of part these works. As part of the Asset Management Plan, the Township has
Appendix E | 80
committed to consider increasing annual capital contributions consistent with Strategies 1
or 2 of the Asset Management Plan during the 2023 budget process and beyond (see Staff
Report). However, in the short-medium term, the Township should look to secure grant
funding to offset the capital costs of completing the noted projects.
The Township has always used internal control measures to prioritize capital related repair
and replacement activities to align with available funds/resources to meet current levels of
service. The Township will continue to utilize such measures to ensure capital works are
carried out in a fiscally responsible manner. It is in this regard the Township has identified
the need to complete some of the projects within 1 year, while the remaining high priority
projects will be considered for completion in subsequent years beyond 2023. The
Township's ability to undertake these projects is largely dependent on securing upper-level
government grant funding, and therefore, the Township should exercise all available grant
funding opportunities while continuing to move towards increasing capital tax and rate
supported contributions.
The financing strategies outlined in the Section 5 of the Asset Management Plan, and
through the adoption of the staff report dated June 2022, indicates the Township's
commitment to increase capital contributions over time to progressively move towards a
self sustaining asset system. It should be noted; annual capital budgeting exercises may
reprioritize the capital works identified.