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Asset Management Plan

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The City of Kenora's Asset Management Plan (AMP) provides an overview of all municipal assets, assesses their conditions and provides a plan for how to maintain and prioritize certain assets while reducing the cost to taxpayers. Municipal assets include core assets and non-core assets.

Municipal asset categories

Core assets

  • road network
  • bridges and culverts
  • storm sewer network
  • wastewater network

Non-core assets

  • buildings
  • equipment
  • fleet
  • land improvements

Asset management plan compliant project

Over the next 8 to 12 months, the City of Kenora will be working with PSD CityWide to develop our Asset Management Plan (AMP) to comply with 2025 requirements of the Ontario Regulation 588/17 for all asset categories.

The City is committed to providing our residents with a high quality of life and exceptional services. As our community continues to grow, we must invest your tax dollars wisely to maintain and improve our infrastructure. Through the 2025 AMP development process, you have an opportunity to share your thoughts on our strengths and weaknesses and provide feedback on priorities for the coming years. 

The information gathered will be used to develop the proposed levels of service asset management plan in accordance with Ontario Regulation 588/17, which mandates municipalities to establish a strategic asset management policy and maintain an asset management plan for core and non-core municipal infrastructure assets. 

Stay tuned for your opportunities to get involved in strategic planning and asset management for the City. 

Core values guiding service levels

  1. Accessible Services are available and accessible for customers who require them.
  2. Reliable Services are provided with minimal service disruption and are available to customers in line with needs and expectations.
  3. Safe Services are delivered such that they minimize health, safety, and security risks.
  4. Regulatory Services meet regulatory requirements of all levels of government.
  5. Affordable Services are suitable for the intended function (fit for purpose).
  6. Sustainable Services are designed to be used efficiently and long-term plans are in place to ensure that they are available to all customers into the future.

Asset key stats

  • $1.2 billion replacement cost of asset portfolio
  • $157,000 (2021 Census) replacement cost of infrastructure per household
  • 87% of assets in fair or better condition
  • 43% of assets with assessed condition data
  • $13.7 million annual capital infrastructure deficit
  • 10 to 15 years recommended timeframe for eliminating annual infrastructure deficit
  • 2% target reinvestment rate
  • 0.8% actual reinvestment rate

Climate change 

Delivery of services may not be sustainable without considering climate change impacts, such as flooding, high heat, drought, and more frequent and intense storms, as part of the asset management program. These impacts reduce the asset's useful life and increase the risk of asset failure.

The City of Kenora has made efforts to advance climate adaptation and mitigation practices by forming a Sustainable Advisory Committee, adopting a Sustainability Action Plan, and integrating climate considerations into their risk asset management program.

Infrastructure assessment

Findings

The overall replacement cost of the asset categories included in this AMP totals $1.2 billion. 87% of all assets analyzed in this AMP are in fair or better condition and assessed condition data was available for 43% of assets. For the remaining assets, assessed condition data was unavailable, and asset age was used to approximate condition – a data gap that persists in most municipalities. Generally, age misstates the true condition of assets, making assessments essential to accurate asset management planning, and a recurring recommendation in this AMP. 

The development of a long-term sustainable financial plan requires an analysis of whole lifecycle costs. This AMP uses a combination of proactive lifecycle strategies (paved roads) and replacement-only strategies (all other assets) to determine the lowest cost option to maintain the current level of service. 

To meet capital replacement and rehabilitation needs for existing infrastructure, prevent infrastructure backlogs, and achieve long-term sustainability, the City’s average annual capital requirement totals $23.6 million. Based on a historical analysis of sustainable capital funding sources, the City is committing approximately $9.9 million towards capital projects or reserves per year. As a result, there is currently an annual funding gap of $13.7 million, translating to $1,800 per household (2021 Census).

It is important to note that this AMP represents a snapshot in time and is based on the best available processes, data, and information at the City. Strategic asset management planning is an ongoing and dynamic process that requires continuous improvement and dedicated resources.

Recommendation

A financial strategy was developed to address the annual capital funding gap. The annual tax/rate change required to eliminate the City’s infrastructure deficit looks like this:

  • Tax-funded assets: 2.5% average annual tax change for 15 years
  • Rate-funded water: 2.6 % average annual rate change for 10 years
  • Rate-funded wastewater: 1.6% average annual rate change for 10 years
  • Rate-funded solid waste: 0.3% average annual rate change for 1 year

Recommendations to guide continuous refinement of the City’s asset management program include:

  • Review data to update and maintain a complete and accurate dataset
  • Develop a condition assessment strategy with a regular schedule
  • Review and update lifecycle management strategies
  • Develop and regularly review short- and long-term plans to meet capital requirements
  • Measure current levels of service and identify sustainable proposed levels of service

Strategic Asset Management Policy

The Strategic Asset Management Policy provides leadership in and commitment to the development and implementation of the Municipality's asset management program. The policy is intended to guide the consistent use of asset management across the organization, to facilitate logical and evidence-based decision-making for the management of municipal infrastructure assets and to support the delivery of sustainable community services now and in the future.

Desired levels of service can be more difficult to achieve as a result of climate change impacts such as flooding, high heat, drought, and more frequent and intense storms.

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