Attachment 1: N-111 Asset Management Program Improvements from FP 2025-2029
Detailed financial plan and project summary for continuing asset management program improvements through 2029.
Project Summary: Asset management program improvements
Priority: Strategic
Public Engagement: Not applicable
Project Name: Asset management program improvements
Project ID: 1-2-01500-615 CC150-05
Submitted by: Ben Lubberts, Deputy Director of Engineering and S. Vella, Manager of Accounting
Director: Steven Vella, Finance and Technology
Executive Summary
The Town’s Asset Management (AM) Strategy recommends a series of initiatives to enhance its AM Program over a five-year period. The project includes establishing levels of service for all assets, auditing and standardizing asset data, developing asset management plans for critical assets, and providing training for staff and Council. The goal of this project is to elevate the Town's AM Readiness Scale level, which is a demonstration of an overall increase of the Town’s AM maturity across all asset management practices. Project cost is informed by the 2024-2028 implementation plan from the AM Strategy, included as Appendix A with a placeholder for 2029 costs associated with a refresh of the AM strategy.
Estimates for FY1 include costs to complete projects started in the prior year that will conclude in 2025 – see additional information attached.
Business problem and opportunity
The Town’s AM maturity score is 1.8 out of 5 on the Federation of Canadian Municipality’s (FCM) AM Readiness Scale, which is a nationally recognized tool to measure improvements in the maturity of an organization’s asset management practices over time. The Town’s AM Strategy recommends initiatives over a five-year period to improve the Town’s AM Program and increase the Town’s score to 3.4 over three years. The increased score will demonstrate that the Town’s overall AM maturity has improved across all its AM practices.
Proposed project objectives
The objective is to raise the Town’s asset management maturity level by implementing the following priority initiatives:
- Establish levels of services for all asset classes 2024-2025
- Complete asset data audit and establish asset data standards 2024-2025
- Develop asset management plans for critical asset 2025-2028
- Complete asset management training for staff and council 2024-2028
Success will be measured using the FCM AM Readiness Scale.
Business risks
Over or under-delivering services, inefficient operations, uninformed decision-making, and increased loss potential of services from Town assets.
Proposed sources of funding
Casino revenue – 1-1-00557-866
Grant - $25,000
Costs and benefits
| Costs | FY1 | FY2 | FY3 | FY4 | FY5 | 5-year Total |
|---|---|---|---|---|---|---|
| Capital | 0 | 0 | 0 | 0 | 0 | 0 |
| Operational | 76,275 | 25,000 | 25,000 | 25,000 | 25,000 | 176,275 |
| Total | 76,275 | 25,000 | 25,000 | 25,000 | 25,000 | 176,275 |
Benefits
- Tangible: Fully informed asset management decisions that are reflective of the community’s desires and staff’s technical requirements, resulting in more efficient use of funds and delivery of services.
- Intangible: Increased FCM AM Readiness score and become a regional leader in the field of asset management.
Recommendation
THAT the Committee recommend the 2025-2029 Financial Plan include Asset management program improvements to be funded by Casino revenue.
2025 Budget Detail:
| Description | 2024 Budget | 2024 Actual | 2024 Carryover |
|---|---|---|---|
| 2024 A.1 Establish levels of services for all assets | $60,000 | $13,725 | $41,175 |
| 2024 I.2 Conduct data audit and establish data standards | $15,000 | $5,000 | $10,000 |
| 2024 P.2 Enroll staff and Council in AM training | $5,000 | $4,000 | $0 |
| 2024 carry forward total | $51,175 | ||
| 2025 planned cost | $25,000 | ||
| Total 2025 budget | $76,275 |
APPENDIX A – Five-year implementation plan from AM Strategy
| 2024 | 2025 | 2026 | 2027 | 2028 | Estimated Cost | |
|---|---|---|---|---|---|---|
| Assets | ||||||
| A.1 Establish levels of services for all assets | $60k | $60,000 | ||||
| A.2 Prepare AM Plans for critical assets | $20k | $20k | $20k | $20k | $80,000 ($20k / plan) | |
| A.3 Adopt AM Policy & AM Strategy | $0 | Internal resources | ||||
| Information | ||||||
| I.1 Integrate SIR Plan data into existing AM software | See Project Summary N-042 Sustainable Infrastructure Replacement Plan | |||||
| I.2 Conduct data audit and establish data standards | $15k | $15,000 | ||||
| Finances – As per the Sustainable Infrastructure Replacement Plan (SIR Plan) | ||||||
| F.1 Dedicate $500,000 of casino revenue annually to capital renewal reserve | Finance tasks are informed by the SIR Plan and implemented through the annual financial planning process. | Varies | ||||
| F.2 Incrementally increase sewer utility revenue contributions to capital renewal reserve | Varies | |||||
| F.3 Incrementally increase property taxes contributions to capital renewal reserve | Varies | |||||
| F.4 Dedicate retired debt servicing budgets to capital renew reserve | Varies | |||||
| F.5 Dedicate Non-Market Change Revenue to capital renewal reserve funding | Varies | |||||
| People | ||||||
| P.1 Establish Cross-Departmental AM Working Group | $0 | Internal resources | ||||
| P.2 Enroll staff and Council in AM training | $5k | $5k | $5k | $5k | $5k | $25,000 ($5k / year) |
| 5-YEAR TOTAL | $180,000 |