Strategic Asset Management Policy (F-20)

Rainy River, Ontario · adopted 2019-02-11

This is the exact embedded text of the captured official document. Snapshot 7e0cc9b4a512 · verified 2026-06-10 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

CORPORATION OF THE TOWN OF RAINY RIVER FINANCES DEPARTMENT Strategic Asset Management Policy Policy No. F-20 F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 1 1.0 Purpose: A strategic asset management policy formalizes the Municipality's commitment to asset management, aligns its asset management actions with strategic goals and objectives, and provides direction to guide Council, management and staff in carrying out its business strategies, plans and activities. This policy will support the Municipality in focusing its infrastructure efforts on managing risks, addressing priorities, and meeting short and long-term needs within the bounds of possible funding. 2.0 Vision: The Municipality's vision is to proactively manage its assets to best serve the Municipality's objectives, including:  Prioritizing the need for existing and future assets to effectively deliver services,  Supporting sustainability and economic development, and  Maintaining prudent financial planning and decision making. 3.0 Objectives The objectives of this policy are to:  Provide a consistent framework for implementing asset management throughout the organization.  Provide transparency and accountability and to demonstrate to stakeholders the legitimacy of decision-making processes which combine strategic plans, budgets, service levels and risks. F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 2 4.0 Strategic Alignment: Our vision to maintain a safe community with sustainable growth requires alignment of the many initiatives underway in our organization at any given time in order for it to be achieved. This alignment is necessary to properly consider whether the level of service provided by our existing and planned assets is congruent and supports our vision. Asset management planning therefore will not occur in isolation from other municipal goals, plans, and policies. Rather, an integrated approach will be followed to successfully develop practical asset management plans that align with the overarching accountabilities and aspirations of our community. 5.0 Stakeholder Engagement The Municipality recognizes the importance of stakeholder engagement as an integral component of a comprehensive asset management approach. The municipality recognizes the residents, businesses, and institutions as stakeholders and neighboring municipal bodies, provincial agencies, and regulated utilities partners in service delivery. Accordingly, the Municipality will foster informed dialogue with these parties using the best available information and engage with them by:  Providing opportunities for residents and other stakeholders served by the municipality to provide input in asset management planning; and  Coordinating asset management planning with other infrastructure asset owning agencies such as municipal bodies and regulated utilities. 6.0 Guiding Principles The Infrastructure for Jobs and Prosperity Act, 2015 sets out principles to guide asset management planning in municipalities in Ontario. The Town of Rainy River will strive to incorporate the following principles whenever possible into the day to day operation of the Municipality:  Forward looking: The Municipality shall take a long-term view while considering demographic and economic trends in the region. F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 3  Budgeting and planning: The Municipality shall take into account any applicable budgets or fiscal plans, including those adopted through Ontario legislation  Prioritizing: The Municipality shall clearly identify infrastructure priorities which will drive investment decisions.  Economic development: The Municipality shall promote economic competitiveness, productivity, job creation, and training opportunities.  Transparency: The Municipality shall be evidence-based and transparent, basing decision on publicly shared information and make information available to the public  Consistency: The Municipality shall ensure the continued provision of core public services, such as health care and education.  Environmentally conscious: The Municipality shall minimize the impact of infrastructure on the environment by: 1. Respecting and helping maintain ecological and biological diversity, 2. Augmenting resilience to the effects of climate change, and 3. Endeavoring to make use of acceptable recycled aggregates.  Health and safety: The Municipality shall ensure that the health and safety of workers involved in the construction and maintenance of infrastructure assets is protected.  Community focused: The Municipality shall promote community benefits, being the supplementary social and economic benefits arising from an infrastructure project that are intended to improve the well-being of a community affected by the project, such as: 1. Local job creation and training opportunities (including for apprentices, within the meaning of section 9 of the Infrastructure for Jobs and Prosperity Act, 2015), 2. Improvement of public space within the community, and 3. Promoting accessibility for persons with disabilities.  Innovation: The Municipality shall create opportunities to make use of innovative technologies, services, and practices, particularly where doing so would utilize technology, techniques, and practices developed in Ontario.  Integration: The Municipality shall, where relevant and appropriate, be mindful and considerate of the principles and content of non-binding provincial or municipal plans and strategies established under an Act or otherwise, in planning and making decisions surrounding the infrastructure that supports them. F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 4 7.0 Community Planning Asset management planning will be aligned with the Municipality's Official Plan and the 2014 Provincial Policy Statement of the Planning Act. The asset management plans will reflect how the community is projected to change with respect to development. The Municipality will achieve this by consulting with those responsible for managing the services to analyze the future costs and viability of projected changes. The combination of lifecycle analysis and financial sustainability principles will be the driver in the selection of community development or redevelopment that requires new assets, or existing asset enhancements. Methods, assumptions, and data used in the selection of projected changes should be documented to support the recommendations in the Asset Management Plan. Cross-referencing the Municipality's Official Plan and the Asset Management Plan will ensure that development occurs within the Municipality`s means through an understanding of current and future asset needs. 8.0 Climate Change Climate change will be considered as part of the Municipality's risk management approach embedded in local asset management planning methods. This approach will balance the potential cost of vulnerabilities to climate change impact and other risks with the cost of reducing these vulnerabilities. Bolstering resilience to climate change includes adapting to opportunities to manage vulnerabilities, anticipating possible costs to support contingency funds, and disaster planning to allow for business continuity. These actions will be taken in addition to acquiring or modifying assets based on greenhouse gas reduction targets. 9.0 Scope and Capitalization Thresholds This policy applies to all assets owned by the Municipality whose role in service delivery requires deliberate management by the Municipality. The Municipality will use a service-based (qualitative) perspective when applying this policy to municipal assets, rather than a monetary value (quantitative). The service-focus intent of this policy differentiates its requirements for identifying assets from the capitalization thresholds that are developed for the purposes of financial reporting. For this reason, the capitalization threshold developed for financial reporting will not be the guide in selecting the assets covered by the asset management planning process. F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 5 10.0 Financial Planning and Budgeting The Municipality will integrate asset management planning into the annual capital budget, operating budget, and its long-term financial plan. The asset management plan will be used as a resource in order to:  Identify all potential revenues and costs (including operating, maintenance, replacement and decommissioning) associated with forthcoming infrastructure asset decisions;  Evaluate the validity and need of each significant new capital asset, including considering the impact on future operating costs; and  Incorporate new revenue tools and alternative funding strategies where possible. The department level budget submission prepared by each Senior Manager will be reviewed and evaluated by the CAO in the preparation of the Municipality`s annual budget. Service area personnel will reference the asset management plan for their area in order to look up forecasted spending needs identified in the plan, verify progress made on the plan to identify potential gaps, and prioritize spending needs, across the gap identified in the plan and recent developments, for the year to be budgeted for. Finance staff will be involved in the asset management planning process to coordinate the information from the service personnel in the preparation of the budget submission. For the purposes of managing water and wastewater assets, the water and wastewater financial plans will be used as a basis for establishing user fees, and master plans will be referenced in order to ensure alignment with the budgeting process. 11.0 Governance and Continuous Improvement The policy requires the commitment of key stakeholders within the Municipality's organization to ensure the policy guides the development of a clear plan that can be implemented, reviewed and updated. Council is entrusted with the responsibility of overseeing, on behalf of citizens, a large range of services provided through a diverse portfolio of assets. Council, having stewardship responsibility, is the final decision maker on all matters related to asset management in the Municipality. The Council and senior management are committed to the success of asset management planning. The following details the responsibilities of the key stakeholders within the Municipality: F - 2 0 : S T R A T E G I C A S S E T M A N A G E M E N T P O L I C Y 6 Council:  Approve by resolution the asset management plan and its updates every five years;  Conduct annual reviews of the management plan implementation progress on or before July 1st of every year, that includes: o Progress on ongoing efforts to implement the asset management plans; o Consideration of the Strategic Asset Management Policy; o Any factors affecting the ability of the Municipality to implement its asset management plans; o Consultation with senior management; o A strategy to address these factors including the adoption of appropriate practices; and o Support ongoing efforts to continuously improve and implement the asset management plans. CAO:  Maintain compliance with the asset management policy and provincial asset management regulations. Senior Management (Pubic Works Foreman, Recreation Maintenance, Fire Chief):  Oversee asset management planning activities that fall within their service area and in support of others. ADOPTION & REVIEW GUIDELINES Approved by Motion #19-022 & By-law 1706-19 on February 11, 2019 Reviewed/Revised by Res. Approximate date of next review ___________________ REFERENCES: POLICY AREA POLICY NUMBER Finance Section F-20 _____________ _____________