The document summarizes a presentation on municipal long-term asset management. It discusses why asset management is important for municipalities, provides an overview of the current state of asset management planning in Ontario and the region, and outlines resources and a funding program from the province to help municipalities develop asset management plans. Examples of asset management plans from different municipalities are also presented.

1. Municipal Long-term Asset Management
Ontario East Municipal Conference
September 13, 2012

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
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2012 Ministry of Municipal Affairs and Housing
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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.
Small but timely investments save money
$60m $60m
Smart Asset
Management
($100m total):
Make timely
$10m investments
Condition
$10m throughout asset
life
$10m
Poor Asset
$10m Management
($120m total):
Let asset
depreciate, then
replace
0 5 10 15 20 25 30 35 40 45 50 55 60 65
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2012 Ministry of Municipal Affairs and Housing
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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)
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2012 Ministry of Municipal Affairs and Housing
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5. Provincial Landscape
Municipalities in Ontario with an asset management plan
No
63%
Yes
37%
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2012 Ministry of Municipal Affairs and Housing
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6. Eastern Landscape
Municipalities with a long-term asset management plan
(Regional Comparison)
Ideal standard (100%)
100%
90%
80%
Percentage of municipalities with a plan
70%
60%
45% (50)
50%
42% (32) 39% (42)
40%
38% (13) Provincial average (37%)
30% 25% (27)
20%
10%
0%
Eastern Central Western Northwestern Northeastern
Ontario Region
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2012 Ministry of Municipal Affairs and Housing
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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
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2012 Ministry of Municipal Affairs and Housing
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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
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2012 Ministry of Municipal Affairs and Housing
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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 Expressions of Interest are due Oct 22
2013-14. Details will be
available soon.
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2012 Ministry of Municipal Affairs and Housing
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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.
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2012 Ministry of Municipal Affairs and Housing
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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.
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2012 Ministry of Municipal Affairs and Housing
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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.
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2012 Ministry of Municipal Affairs and Housing
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13. Examples of Plans:
2009 State of the Infrastructure Report
City of Hamilton
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2012 Ministry of Municipal Affairs and Housing
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14. Examples of Plans:
Eastern Ontario
Township of
Tudor and Cashel
(Pop. 572)
Township of
Edwardsburgh/
Cardinal
(pop. 6194)
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2012 Ministry of Municipal Affairs and Housing
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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/
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2012 Ministry of Municipal Affairs and Housing
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16. Contact
Chris Terech
Manager, Financial Analysis & Reporting
Municipal Finance Policy Branch,
Ministry of Municipal Affairs and Housing
Christopher.Terech@ontario.ca
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2012 Ministry of Municipal Affairs and Housing
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