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Municipal Long-term Asset Management
Ontario East Municipal Conference
September 13, 2012
September 27,
2012 Ministry of Municipal Affairs and Housing
2
Presentation Overview
• Asset Management
• Provincial and Eastern Landscape
• Why Take Action?
• Municipal Infrastructure Strategy
• Funding Program
• New Resources Available
• Application of Resources
• Other Resources
• Examples of Plans
September 27,
2012 Ministry of Municipal Affairs and Housing
3
Asset Management
• Asset management takes an organization’s objectives and develops a plan
to provide the supporting infrastructure services at the lowest lifecycle cost.
0 5 10 15 20 25 30 35 40 45 50 55 60 65
Co
nd
itio
n
Small but timely investments save money
Smart Asset Management ($100m total):
Make timely investments throughout asset life
Poor Asset Management ($120m total):
Let asset depreciate, then replace
$10m$10m
$10m
$10m
$60m$60m
September 27,
2012 Ministry of Municipal Affairs and Housing
4
Asset Management
• Tangible capital asset accounting by itself ≠ asset management
• Research demonstrated variation in asset management planning, and the need for more resources
• Even if a municipality has an asset management plan in place, it does not necessarily mean they are adequately budgeting for their assets
• Ontario’s ten-year infrastructure plan (Building Together)
September 27,
2012 Ministry of Municipal Affairs and Housing
5
Provincial Landscape
Yes 37%
No 63%
Municipalities in Ontario with an asset management plan
September 27,
2012 Ministry of Municipal Affairs and Housing
6
Eastern Landscape
45% (50) 42% (32) 39% (42) 38% (13)
25% (27)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Eastern Central Western Northwestern Northeastern
Pe
rce
nta
ge o
f m
un
icip
alit
ies
wit
h a
pla
n
Ontario Region
Municipalities with a long-term asset management plan (Regional Comparison)
Ideal standard (100%)
Provincial average (37%)
September 27,
2012 Ministry of Municipal Affairs and Housing
7
Why Take Action?
• Municipal infrastructure is critical to delivering services to Ontarians and supporting our economy
• Asset management will help give us a locally developed, systematic understanding of what needs are most important and how they can be addressed
• This will help municipalities and the province make the right investments at the right time
September 27,
2012 Ministry of Municipal Affairs and Housing
8
Municipal Infrastructure Strategy
• First phase launched in August 2012.
Asset management is a cornerstone.
• Municipalities seeking provincial
capital funding will now be required
to submit a detailed asset
management plan.
• The province is making resources
available to help municipalities:
• Building Together- Guide for Municipal Asset Management Plans
• Online asset management toolkit
• Municipal Infrastructure Investment Initiative (MIII)
www.ontario.ca/municipalinfrastructure
September 27,
2012 Ministry of Municipal Affairs and Housing
9
Municipal Infrastructure Investment Initiative (MIII)
• $60 million funding program (over
three years.) Including:
• $9 million in entitlement funding
for eligible municipalities and
housing Service Managers to
develop long-term asset
management plans.
• Capital funding to help address
necessary road, bridge, water
and wastewater projects
identified through asset
management plans beginning in
2013-14. Details will be
available soon.
Expressions of Interest are due Oct 22
September 27,
2012 Ministry of Municipal Affairs and Housing
10
New Resources Available
• A Guide for Municipal Asset
Management Plans and online asset
management toolkit are now available.
• The guide sets out the information and
analysis that, at a minimum, municipal
asset management plans should
include.
• The toolkit contains additional
resources to help municipalities
develop detailed asset management
plans.
September 27,
2012 Ministry of Municipal Affairs and Housing
11
Application of Resources
Municipalities Without Plans
Many of the resources available are aimed at supporting municipalities starting the
planning process.
Direction and Support (Guide p.27)
• Obtain a Council resolution that
directs staff to develop an asset
management plan.
• Designate a project champion
within the municipal administration
and another on Council.
• Establish a Working Group or
Steering Committee to engage the
appropriate municipal departments
in the process.
• Ensure that engineering, finance and other appropriate representatives are included.
September 27,
2012 Ministry of Municipal Affairs and Housing
12
Application of Resources
Municipalities With Plans
Resources available also focus in on municipalities with guides in place and
clarify information which should be included in plans.
An Open and Ongoing Process (Guide p.28)
• Ensure that asset management plans are
clear and available to the public.
• Monitor and report on the implementation of
asset management plans at the Council and staff
levels.
• View asset management plans as “living”
documents that require continuous updates and
improvements.
September 27,
2012 Ministry of Municipal Affairs and Housing
13
Examples of Plans:
2009 State of the Infrastructure Report
City of Hamilton
September 27,
2012 Ministry of Municipal Affairs and Housing
14
Examples of Plans:
Eastern Ontario
Township of
Tudor and Cashel
(Pop. 572)
Township of
Edwardsburgh/
Cardinal
(pop. 6194)
September 27,
2012 Ministry of Municipal Affairs and Housing
15
Other Resources
Work of Partners
• Municipal DataWorks
http://www.municipaldataworks.ca/
• Municipal Finance Officers Association
http://www.mfoa.on.ca/
• Association of Municipalities of Ontario
http://www.amo.on.ca/
• HSC Asset Management Centre
http://www.hscorp.ca/asset-management-centre-amc/
September 27,
2012 Ministry of Municipal Affairs and Housing
16
Contact
Chris Terech
Manager, Financial Analysis & Reporting
Municipal Finance Policy Branch,
Ministry of Municipal Affairs and Housing