municipality of middlesex centre asset management … · the municipality’s goals and objectives...

MUNICIPALITY OF MIDDLESEX CENTRE

ASSET MANAGEMENT PLAN

DECEMBER 5, 2013

Watson & Associates Economists Ltd. H:\Middlesex Centre\2013 AM\MC AM Plan Report.docx

CONTENTS Page

EXECUTIVE SUMMARY (i)

1. INTRODUCTION 1.1 Overview 1-1 1.2 Plan Development 1-1 1.3 Maintaining the Asset Management Plan 1-2 1.4 Plan Integration 1-3

2. STATE OF LOCAL INFRASTRUCTURE 2.1 Scope and Process 2-1 2.2 Capital Asset Overview 2-1 2.3 Asset Age Analysis 2-5 2.4 Asset Condition 2-6 2.5 Data Accuracy and Completeness 2-9

3. EXPECTED LEVELS OF SERVICE 3.1 Scope and Process 3-1 3.2 Current Levels of Service vs. Expected Levels of Service 3-1 3.3 Level of Service Performance Measures 3-3

4. ASSET MANAGEMENT STRATEGY 4.1 Scope and Process 4-1 4.2 Risk Assessment 4-1 4.3 Priority Identification 4-3 4.4 Long-Term Forecast 4-5 4.5 Procurement Methods 4-9

5. FINANCING STRATEGY 5.1 Scope and Process 5-1 5.2 Historical Results 5-2 5.3 Financing Strategy 5-5 5.4 Funding Shortfall 5-10

6. RECOMMENDATIONS 6-1


CONTENTS Page

APPENDICES A DETAILED ASSET INVENTORY A-1 B ASSET MANAGEMENT ASSUMPTIONS B-1 C DATA VERIFICATION AND CONDITION ASSESSMENT POLICY C-1 D LEVEL OF SERVICE IMPACT ANALYSIS D-1 E SCENARIO ANALYSIS – CAPITAL FORECASTS E-1 F TAX SUPPORTED ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY F-1 G WATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY G-1 H WASTEWATER ASSET MANAGEMENT STRATEGY & FINANCING STRATEGY H-1


EXECUTIVE SUMMARY

(i)


EXECUTIVE SUMMARY

This report contains the Asset Management Plan for the Municipality of Middlesex Centre

(Municipality) and has been organized as follows:

Chapter 1: Introduction;

Chapter 2: State of Local Infrastructure;

Chapter 3: Expected Levels of Service;

Chapter 4: Asset Management Strategy;

Chapter 5: Financing Strategy; and

Chapter 6: Recommendations.

The “state of local infrastructure” chapter provides an overview of the capital assets owned by

the Municipality. This includes detailed information on the Municipality’s asset inventory,

including asset attributes, accounting valuations, replacement costs, useful life, age and asset

condition. This information provides the foundation for other sections of the asset management

plan.

“Expected levels of service” compares the current level of service provided by the Municipality

to the level of service determined to be expected in each area. This analysis combines both

descriptions/comments as well as performance measures in establishing service levels.

The “asset management strategy” provides a long term operating and capital forecast for asset

related costs, indicating the requirements for maintaining, rehabilitating, replacing/disposing and

expanding the Municipality’s assets, while moving towards the specified expected levels of

service identified above. The goal of the asset management strategy is to have the Municipality

in (or moving towards) a sustainable asset management position over the forecast period.

The “financing strategy” identifies a funding plan for the asset management strategy, including a

review of historical results and recommendations with respect to the required amounts and

types of funding (revenue) annually. Also, any infrastructure funding deficits/shortfalls are

identified and recommendations are made regarding potential approaches to reduce and

mitigate the shortfall over the forecast period.

Overall, this asset management plan is a tool to be used by Municipal staff for capital and

financial decision making. It can be tied to various existing reports (such as the Municipality’s

budget, official plan and strategic planning reports) to ensure the asset management plan can

be updated to reflect any changes in Municipality priorities.


1. INTRODUCTION

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1. INTRODUCTION

1.1 Overview

The main objective of an asset management plan is to use a municipality’s best available

information to develop a comprehensive long term plan for capital assets. In addition, the plan

should provide sound methodologies and support in order to improve the accuracy of the plan

on a go forward basis.

Watson & Associates Economists Ltd. (Watson) was retained by the Municipality to prepare an

asset management plan. This plan is intended to be a tool for Municipal staff to use during

various decision making processes, including the annual budgeting process and capital grant

application processes. This plan will serve as a road map for sustainable infrastructure planning

going forward.

The following assets are included in this asset management plan:

Road related (roads, bridges and culverts, sidewalks, and streetlighting);

Stormwater related (mains, ponds);

Facilities;

Vehicles and Machinery;

Equipment;

Water related (mains, service connections, hydrants, facilities, and vehicles); and

Wastewater (mains, facilities, and equipment).

The Municipality’s goals and objectives with respect to their capital assets relate to the level of

service being provided to Municipality residents. Services should be provided at expected

levels, as defined within this asset management plan. Municipality infrastructure and other

capital assets should be maintained at condition levels that provides a safe and functional

environment for its residents. Therefore, the asset management plan and its implementation

will be evaluated based on the Municipality’s ability to meet these goals and objectives.

1.2 Plan Development

The asset management plan process developed a program that leverages the Municipality’s

asset database information, staff and engineering input and asset management principles.

The development of the Municipality’s asset management plan was based on the steps

summarized below:

1) Develop a complete listing of capital assets to be included in the plan, including

attributes such as size/material type, useful life, age, accounting valuation and current

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valuation. Update current valuation to 2013 dollars, where required, using applicable

inflationary indices.

2) Assess current condition of the assets, based on a combination of existing Municipality

reports and an age analysis.

3) Assess the risk of asset failure for each asset, based on determining the probability of

each asset failing, as well as the consequence of the asset failing. This risk analysis

identifies priority projects for inclusion in the asset management plan, as well as asset

risk levels that require mitigation.

4) Determine and document current levels of service, as well as expected levels of service,

based on discussions with Municipal staff.

5) Prepare an asset management strategy (i.e. operating and capital forecast) based on

the asset inventory, identified priorities, forecast scenarios, and level of service analysis

discussed above.

6) Determine a financing strategy to support asset management strategy, thus determining

how the operating and capital related expenditure forecast will be funded over the

period.

7) Prepare a comprehensive Asset Management Plan final report.

1.3 Maintaining the Asset Management Plan

The asset management plan should be updated as the capital needs and priorities of the

Municipality change. This can be accomplished in conjunction with the Municipality’s budget

process. Municipal staff will have the tools available to perform updates to the plan when

needed.

When updating the asset management plan, note that the state of local infrastructure, expected

levels of service, asset management strategy and financing strategy are integrated and impact

each other. Looking at these components in reverse order, the financing strategy outlines how

the asset management strategy will be funded. The asset management strategy illustrates the

costs required to maintain expected levels of service at a sustainable level. The expected levels

of service component summarizes and links each service area to specific assets contained in

the state of local infrastructure section and thus determines how these assets will be used to

provide expected service levels.

While this report covers a forecast period of 20 years, the full lifecycle of the Municipality’s

assets was considered in the calculations. It is suggested that more focus and attention be put

on the first 5 years of the asset management plan, to ensure accurate capital planning in the

short term.

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1.4 Plan Integration

The municipal environment is a continually changing and demanding environment when it

comes to legislation and other responsibilities. Integrating the asset management plan with the

Municipality’s budget process as well as Public Sector Accounting Board Section 3150 (PSAB

3150) requirements can make updates in all three areas more efficient.

With respect to integrating the Municipality’s budget process with asset management planning,

both require a projection of capital and operating costs of a future period. The budget outlines

total operating and capital requirements of the Municipality, while the asset management plan

focuses in on specific asset related requirements. With this link to the annual budget, the

budget update process can become an asset management plan update process.

Both asset management and PSAB 3150 require a complete and accurate asset inventory. The

significant difference between the two lies in valuation approaches; PSAB 3150 requires

historical cost valuation, while asset management requires future replacement cost valuation.

Using a single asset inventory containing both valuation methods is an effective approach to

maintaining the Municipality’s asset data.

Further integration into other Municipality financial/planning documents would assist in ensuring

the ongoing accuracy of the asset management plan, as well as the integrated

financial/planning documents. The asset management plan has been developed to allow

linkages to documents such as:

Development Charge Background Study;

Official Plan;

Water and Wastewater Rate Studies;

Strategic Planning Reports;

Fiscal Impact/Operating Studies; and

Insurance valuations and records.


2. STATE OF LOCAL INFRASTRUCTURE

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2.1 Scope and Process

This section of the plan provides an opportunity to develop a greater understanding of the

capital assets owned by the Municipality. The state of local infrastructure analysis includes:

An asset database documenting asset types, sub-types including quantities, materials

and other similar asset attributes;

Financial accounting valuation (where available);

Replacement cost valuation;

Asset age distribution analysis and asset age as a proportion of expected useful life;

Asset condition information;

Data Verification and Asset Condition policies; and

Documentation of assumptions made in creating the asset inventory.

The Municipality has a detailed inventory listing, created for PSAB 3150 purposes. This asset

inventory is updated annually and was used as a starting point in fulfilling the requirements of

this report. This inventory provides current financial account valuations (i.e. historical cost,

accumulated amortization and net book value) as well as attributes such as useful life and age.

With respect to replacement cost, historical costs were generally inflated in order to estimate

current 2013 replacement costs. For infrastructure related assets, various replacement costs

were provided by Stantec Consulting Limited.

The following data and reports were used to supplement the Municipality’s asset inventory

during this process:

a) Reports and supplemental documents from Stantec Consulting Limited regarding useful

life, material type, component breakout and various replacement cost data, where

required, for infrastructure related assets;

b) 2009 Road Needs Study (AECOM);

c) 2011 Structure Inventory Inspections Report (AECOM); and

d) Discussions with Municipal staff.

2.2 Capital Asset Overview

The Municipality presently owns and manages tax supported capital assets with a 2013

replacement value of approximately $286 million (excluding land assets as they are not included

in this plan). Table 2-1 outlines the breakdown of these totals and Figure 2-1 illustrates the

breakdown.

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Table 2-1

2013 Tax Supported Assets

Figure 2-1

2013 Tax Supported Assets Distribution

Based on Replacement Cost

The Municipality presently owns and manages water capital assets with a 2013 replacement

value of approximately $37.1 million (excluding land assets as they are not included in this

plan). Table 2-2 outlines the breakdown of these totals and Figure 2-2 illustrates the

breakdown.

Transportation Assets 98,342,376 45,956,661 52,385,715 162,822,538 Environmental Assets (Storm) 21,887,711 4,036,225 17,851,487 53,191,444 Facilities 42,562,013 4,940,611 37,621,402 57,547,997 Vehicles & Machinery 8,283,408 3,670,866 4,612,542 10,522,091 Equipment 1,746,981 723,109 1,023,872 1,912,579

Total Capital Assets (Tax) 172,822,489$ 59,327,472$ 113,495,017$ 285,996,649$

Replacement Cost

2013$Asset Type

Historical Cost12/31/2012

Accumulated Amortization

12/31/2012

Net Book Value

12/31/2012

57%

18%

20%

4% 1%

Transportation Assets

Environmental Assets (Storm)

Facilities

Vehicles & Machinery

Equipment

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Table 2-2

2013 Water Assets

Figure 2-2

2013 Water Assets Distribution


The Municipality presently owns and manages wastewater capital assets with a 2013

replacement value of approximately $80.6 million (excluding land assets as they are not

included in this plan). Table 2-3 outlines the breakdown of these totals and Figure 2-3 illustrates

the breakdown.

Water Mains and Service Connections 39,012,531 4,717,743 34,294,788 27,984,955 Hydrants 395,473 85,655 309,818 1,775,000 Water Facilities 5,369,288 1,051,953 4,317,335 7,343,285 Vehicles 24,034 2,408 21,625 24,378

Total Capital Assets (Water) 44,801,325$ 5,857,759$ 38,943,566$ 37,127,617$

Asset TypeHistorical Cost

12/31/2012


12/31/2012

Net Book Value

12/31/2012

Replacement Cost

2013$

75%

5%

20%

0%

Water Mains and Service ConnectionsHydrants

Water Facilities

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Table 2-3

2013 Wastewater Assets

Figure 2-3

2013 Wastewater Assets Distribution


Tables 2-1, 2-2 and 2-3 also shows the Municipality’s financial accounting valuation summary

by asset type. Since 2009, the Municipality has been required under the PSAB 3150 to

maintain asset listings complete with historical cost (i.e. the original cost to purchase or

construct an asset), accumulated amotization and net book value. These values are reported

on the Municipality’s audited financial statements each year.

The detailed capital asset inventory is contained in Appendix A. Assumptions pertaining to the

asset inventory were documented as part of the asset management process are shown in

Appendix B.

Wastewater Mains 15,339,197 2,438,135 12,901,062 51,582,366 Wastewater Facilities 19,754,233 3,500,764 16,253,469 24,351,956 Equipment 4,647,672 116,192 4,531,480 4,703,876

Total Capital Assets (Wastewater) 39,741,102$ 6,055,091$ 33,686,011$ 80,638,199$

Asset TypeHistorical Cost

12/31/2012


12/31/2012

Net Book Value

12/31/2012

Replacement Cost

2013$

64%

30%

6%

Wastewater Mains

Wastewater Facilities

Equipment

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2.3 Asset Age Analysis

Each asset is tracked based on estimated total useful life and remaining service life. Using this

information, an age analysis of the Municipality’s assets can assist in identifying potential areas

of focus for the asset management plan.

Table 2-4 provides an age analysis summary, including the weighted (based on replacement

cost) average useful life and weighted average remaining useful life for all of the assets included

in this plan. This analysis can assist in identifying potential short-term priorities within specific

asset areas.

Table 2-4

Asset Age Analysis

Infrastructure - Transportation and Environmental

Useful LifeRemaining

Life% Remaining

Useful Life

TransportationRoads

Base 40 17 42.24%Surface 18 3 14.49%

Bridges & Culverts 50 12 23.54%Sidewalks 27 14 51.08%Streetlighting 50 48 96.31%

EnvironmentalStorm Sewer 80 56 69.89%Storm Ponds N/A N/A N/A

Buildings and Fixtures


Life% Remaining

Useful Life

Buildings & FixturesAdministration 72 57 79.30%Arena 80 49 61.53%Community Centre 73 45 61.69%Fire Station 76 54 70.53%Library 78 52 66.74%Medical Clinic 62 59 95.15%Other 69 24 35.10%Park Lighting 40 18 43.82%Public Works Building 72 70 97.24%Tennis Court 40 28 69.32%Operations Centre 72 70 97.24%Community Services 75 54 72.00%Wellness Centre 80 78 97.50%

Weighted Average (rounded)


Asset Type

Asset Type

2-6


Total useful life and remaining service life for each capital asset is documented in Appendix A.

While this analysis can be useful in looking at the overall age characteristics of specific asset

areas, asset condition (see below) will assist in providing a more accurate assessment of assets

reaching the end of their useful life.

2.4 Asset Condition

Including condition assessments in the asset management plan provides for a higher level of

accuracy than simply relying on useful life assumptions, especially when it comes to older,

highly used or more financially significant assets. Condition assessments can provide more

realistic estimates of remaining service life, which can then be used to establish rehabilitation or

replacement schedules.

Vehicles, Machinery and Equipment


Life% Remaining

Useful Life

Vehicles & MachineryParks & Rec 9 5 54.58%Public Works 16 8 47.02%Fire 20 11 53.87%

EquipmentFire Equipment 10 3 29.69%Other Equipment 10 6 64.06%Playground Equipment 10 5 47.68%Office Equipment 5 1 11.87%


Asset Type

Water


Life% Remaining

Useful Life

Water Mains and Service Connections 80 59 74.28%Hydrants 50 32 64.00%Water Facilities 45 30 67.16%Vehicles 5 4 80.00%

Wastewater


Life% Remaining

Useful Life

Wastewater Mains 80 63 78.77%Wastewater Facilities 41 31 74.75%Equipment 20 19 95.00%

Asset Type



Asset Type

2-7


Condition ratings (out of a score of 5) were derived from a combination of available studies,

assigned condition ratings by Municipal staff and the age analysis. These ratings were then

reviewed and revised, where required, by Municipal staff. This rating was then converted to a

condition description, as shown in Table 2-5 below.

Table 2-5

Asset Condition Format – All Assets

This condition rating format was used for all assets, except road surfaces and bridges, where

existing pavement condition indexes and bridge condition indexes were used. A high level

summary of the weighted average condition in each asset category is as follows:

Table 2-6

Weighted Average Condition by Asset Category

Condition Rating

Condition Description

5 Very Good

4 Good

3 Average

2 Average

1 Poor

0 Very Poor

Infrastructure - Transportation and Environmental

TransportationRoads

Base AverageSurface Average

Bridges & Culverts Very GoodSidewalks AverageStreetlighting Very Good

EnvironmentalStorm Sewer Good

Weighted Condition

Asset Type

2-8


Buildings and Fixtures

Buildings & FixturesAdministration AverageArena AverageCommunity Centre AverageFire Station AverageLibrary AverageMedical Clinic Very GoodOther AveragePark Lighting AveragePublic Works Building Very GoodTennis Court AverageOperations Centre Very GoodCommunity Services GoodWellness Centre Very Good


Vehicles & MachineryParks & Rec AveragePublic Works AverageFire Average

EquipmentFire Equipment PoorOther Equipment AveragePlayground Equipment AverageOffice Equipment Poor

Asset Type

Asset Type

Weighted Condition

Weighted Condition

Water

Water Mains and Service Connections GoodHydrants AverageWater Facilities GoodVehicles Good

Wastewater

Wastewater Mains GoodWastewater Facilities AverageEquipment Very Good

Weighted Condition

Asset Type

Asset TypeWeighted Condition

2-9


Further discussion of condition assessments will take place in Chapter 4 when assessing asset

risk and identifying asset priorities. Furthermore, detailed asset conditions are documented in

Appendix A to this report. It is recommended that these condition assessments be updated as

new information becomes available. Please see section 2.5 for further details.

2.5 Data Accuracy and Completeness

An important element of this asset management plan is ensuring that tools and procedures are

in place to maintain accuracy and completeness of the asset data and calculations moving

forward. As time passes, assets are used, maintained, improved, disposed of, and replaced.

All of these lifecycle events can trigger changes to the asset database used within the asset

management plan. Therefore, tools and procedures are essential to ensure the asset data

remains accurate and complete. Please refer to Appendix C to this report for the “Data

Verification and Condition Assessment Policy” for the Municipality. This policy illustrates how

the asset data will be updated and verified going forward. This includes the timing of condition

assessments for each asset area, as well as what should be included within the condition

assessment procedures.


3. EXPECTED LEVELS OF SERVICE

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3. EXPECTED LEVELS OF SERVICE


A level of service (LOS) analysis gives the Municipality an opportunity to document the level of

service that is currently being provided and compare it to the level of service that is expected.

This can be done through a review of current practices and procedures, an examination of

trends or issues facing the Municipality, or through an analysis of performance measures and

targets that staff can use to measure performance.

Expected LOS can be impacted by a number of factors, including:

Legislative requirements;

Strategic planning goals and objectives;

Resident expectations;

Council or Municipal staff expectations; and

Financial or resource constraints.

The previous task of determining the state of the Municipality’s local infrastructure establishes

the asset inventory and condition, as well as asset management policies and principles to guide

the refinement and upkeep of asset infrastructure. The LOS analysis will utilize this information

and factors in the impact of asset service level targets. It is important to document an expected

LOS that is realistic to the Municipality. It is common to strive for the highest LOS, however

these service levels usually come at a cost. It is also helpful to consider the risk associated with

a certain LOS. Therefore, expected LOS should be determined in a way that balances both

level of investment and associated risk to the Municipality.

3.2 Current Levels of Service versus Expected Levels of Service

The Municipality’s current LOS has resulted in the current state of infrastructure discussed in

chapter 2. The current LOS also relates to the risk assessment discussed in later report

sections. Regarding the cost of LOS, the Municipality has established an operating and capital

budget for the current year that includes the cost of providing this LOS to residents.

Therefore in moving from the current LOS to an expected LOS, consideration has to be made

for the associated cost (or impact on the Municipality’s current budget). The table below

outlines broad LOS descriptions (both current and expected LOS). This analysis was

documented through discussions with Municipal staff.

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Table 3-1

Level of Service Analysis

Please refer to Appendix D of this report for a table summarizing the estimated budget impacts

associated with implementing the expected LOS over the 20 year forecast period. This impact

analysis will be factored into the asset management strategy discussed in chapter 4 of this

report.

Roads Related

Current Expected

Public WorksMeet "Minimum Maintenance Standards" as defined by Ontario Regulation 239/02.

Meet "Minimum Maintenance Standards" as defined by Ontario Regulation 239/02.

Public Works Resurface every gravel road every 3 to 4 years. Resurface every gravel road every 3 to 4 years.

Public Works Maintain adequate road condition ratings. Maintain adequate road condition ratings.

Public WorksProactive Road Maintenance/Rehabilitation Program.

Proactive Road Maintenance/Rehabilitation Program.

Bridges & Culverts

Current Expected

Public Works Maintain adequate condition and load limits. Maintain adequate condition and load limits.

Public WorksProactive Bridge and Culvert maintenance and rehabilitation.

Proactive Bridge and Culvert maintenance and rehabilitation.

Public Works Bridge inspections as required.Bridge inspections (i.e. using OSIM reports) required every 2 years.

Water & Wastewater

Current Expected

Water & Wastewater Meet all legislative requirements. Meet all legislative requirements.

Water & Wastewater Promote systems expansion, as required. Promote systems expansion, as required.

Water & Wastewater Proactive maintenance procedures. Proactive maintenance procedures.

Water & Wastewater Minimize unaccounted for water. Minimize unaccounted for water.

Water & WastewaterMinimize water main breaks & wastewater main backups.

Minimize water main breaks & wastewater main backups.

Buildings, Equipment & Vehicles

Current Expected

VariousMeet legislative requirement (Building Code, Fire Code, Accessibility, Health & Safety, etc.)

Meet legislative requirement (Building Code, Fire Code, Accessibility, Health & Safety, etc.)

Various Condition assessments performed when needed.Planned condition assessments, with results being incorporated into the asset management plan.

VariousReplace Equipment/Vehicles based on historical budget allotments.

Replace Equipment/Vehicles as required.

Various Proactive facility maintenance. Proactive facility maintenance.

DepartmentLevel of Service Description




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3.3 Level of Service Performance Measures

As mentioned above, using performance measures in the LOS review can also be helpful in

measuring the Municipality’s goals and objectives when it comes to asset management. The

Municipality currently tracks specific performance measures as part of the Municipal

Performance Measurement Program (MPMP) which the province has in place as part of the

annual Financial Information Return (FIR) submission. The FIR provides the annual financial

results of the Municipality, while the MPMP provides an evaluation of the Municipality’s

“performance”. The following table provides a summary of the specific MPMPs relating to

capital asset effectiveness.

Table 3-2

Performance Measures Analysis

The Municipality will continue to calculate and monitor these performance measures, both for

MPMP and asset management purposes. As the Municipality’s asset management plan

evolves over time, new performance measures can be introduced to further measure the LOS

being provided in each service area.

2011 2012 2013

FireBuildings, Equipment,

VehiclesResidential fire civilian injuries

per 1,000 persons- - Not yet available Minimize


VehiclesResidential fire civilian fatalities

per 1,000 persons- - Not yet available Minimize


VehiclesNumber of residential structural

fires per 1,000 households15.2630 1.3290 Not yet available Minimize

Transportation RoadsPercentage of paved lane km where condition is rated as

good to very good70.30% 70.30% Not yet available Maximize

Transportation Bridges & CulvertsPercentage of bridges &

culverts where condition is rated as good to very good

97.20% 97.20% Not yet available Maximize

Transportation RoadsPercentage of winter events

where response met or exceeded local service levels

90.90% 92.30% Not yet available Maximize

Wastewater Wastewater MainsNumber of wastewater main

backups per 100 km of mains11.6279 4.5455 Not yet available Minimize

Wastewater BuildingsPercentage of wastewater

estimated to have by-passed treatment

0.004% 0.002% Not yet available Minimize

Water Water mainsWeighted # days when a boil

water advisory was issued24.0000 - Not yet available Minimize

Water Water mainsNumber of water main breaks

per 100 km of pipe7.0423 1.3889 Not yet available Minimize

Solid Waste Buildings, VehiclesNumber of complaints received concerning garbage & recycling

collection per 1,000 persons3.5220 3.1570 Not yet available Minimize

Solid Waste BuildingsPercentage of residential solid

waste diverted for recycling70.50% 38.20% Not yet available Maximize

Recreation & Culture BuildingsParticipant hours for recreation

programs per 1,000 persons964.5010 435.3650 Not yet available

Maintain or Increase

Department AssetsPerformance Measure

Description

Historical PerformanceGoal


4. ASSET MANAGEMENT STRATEGY

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The asset management strategy provides the recommended course of actions required to

maintain (or move towards) a sustainable asset funding position while delivering the expected

levels of service discussed in the previous chapter. The course of actions, when combined

together, form a long-term operating and capital forecast that includes:

a) Non-infrastructure solutions: reduce costs and/or extend expected useful life estimates;

b) Maintenance activities: regularly scheduled activities to maintain existing useful life

levels, or repairs needed due to unplanned events;

c) Renewal/Rehabilitation: significant repairs or maintenance planned to increase the

useful life of assets;

d) Replacement/Disposal: complete disposal and replacement of assets, when renewal or

rehabilitation is no longer an option; and

e) Expansion: given planned growth as outlined in the Municipality’s Development Charge

Background Study, other expansion or due to the introduction of new services.

Priority identification becomes a critical process during the asset management strategy

development. Priorities have been determined based on assessment of the overall risk of asset

failure, which is determined by looking at both the probability of an asset failing, as well as the

consequences of failure. The consequences of the Municipality not meeting desired levels of

service must also be considered in determining risk. As discussed in chapter 3, moving to

expected levels of service results in both operating and capital budget impacts over the 20 year

forecast period. This has to be taken into consideration, with the overall objective of reaching

sustainable levels while mitigating risk.

4.2 Risk Assessment

The risk of an asset failing is defined by the following calculation:

Probability of failure has been linked to the condition assessment for each of the assets,

assuming that an asset with a condition rating “very good” would have a “rare” probability of

failure. The following table outlines the probability factor tied to each condition rating:

Risk of Asset Failure = Probability of Failure X Consequence of Failure

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Table 4-1

Probability of Failure Matrix

Consequence of failure has been determined by examining each asset type separately.

Consequence refers to the impact on the Municipality if a particular asset were to fail. Types of

impacts include the following:

Cost Impacts: the cost of failure to the Municipality (i.e. capital replacement,

rehabilitation, fines & penalties, damages, etc);

Social impacts: potential injury or death to residents or Municipal staff;

Environmental impacts: the impact of the asset failure on the environment;

Service delivery impacts: the impact of the asset failure on the Municipality’s ability to

provide services at desired levels; and

Location impacts: the varying impact of asset failure based on the asset’s location

within the Municipality.

Each type of impact was discussed with Municipal staff and consequence of failure for each

asset type was determined by using the information contained in Table 4-2 as a guide to assess

the level of impact. Levels of impact were documented as ranging from “catastrophic” to

“insignificant”.

With both probability of failure and consequence of failure documented, total risk of asset failure

was determined using the matrix contained in Table 4-3. Total risk has been classified under

the following categories:

Extreme Risk (E): risk well beyond acceptable levels;

High Risk (H): risk beyond acceptable levels;

Medium Risk (M): risk at acceptable levels, monitoring required to ensure risk does not

become high; and

Low Risk (L): risk at or below acceptable levels.

Condition Description

Probability of Failure

Very Good Rare

Good Unlikely

Average Possible

Poor Likely

Very Poor Almost Certain

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Table 4-2

Consequence of Failure Matrix

Table 4-3

Total Risk of Asset Failure Matrix

Risk levels can be reduced or mitigated through planned maintenance, rehabilitation and/or

replacement. An objective of this asset management plan is to reduce risk levels where they

are deemed to be too high, as well as ensure assets are maintained in a way that maintains risk

at acceptable levels.

Please refer to Appendix A for the detailed risk assessment for each of the Municipality’s capital

assets.

4.3 Priority Identification

Through discussions with Municipal staff and review of the asset risk of failure assessment, the

following assets/categories were identified as being priorities of the Municipality:

Consequence of Failure

Cost Social Environmental Service Delivery

InsignificantNegligible or

Insignificant Cost No injury No Impact No Interruptions

MinorSmall/Minor Cost -

within Budget Allocations.

Minor Injury Short-term/Minor Impact - Fixable

Minor Interruptions

ModerateConsiderable Cost -

Requires Revisions to Budget

Moderate Injury Medium-term Impact -

Fixable Moderate

Interruptions

MajorSubstantial Cost - Multi-year Budget

Impacts Major Injury

Long-term Impact - Fixable

Significant Interruptions

CatastrophicSignificant Cost -

Difficult to Recover Death, Serious Injury

Long-term Impact - Permanent

Major Interruptions

Insignificant Minor Moderate Major Catastrophic

Rare L L M M HUnlikely L M M M HPossible L M M H E

Likely M M H H E

Almost Certain M H H E E

Probability of FailureConsequence of Failure

4-4


Table 4-4

Priorities Based on Asset Risk

Area / Category Description Total Risk Planned Action

Water Ilderton Water Storage HighIncluded in short-

term capital

Water Delaware New Water Supply HighIncluded in short-

term capital

WastewaterKilworth West Sanitary Sewer Connection

HighIncluded in short-

term capital

Wastewater Delaware New Wastewater System HighIncluded in short-

term capital

RoadsAdelaide Street: 13 Mile Rd. to 15 Mile Rd., 16 Mile Rd. to Elginfield Rd.


term capital

Roads Poplar Hill Rd: Fernhill Dr. to Zavitz Dr. HighIncluded in short-

term capital

RoadsDenfield Rd: Gainsborough Rd. to Medway Rd.


term capital

Roads Sharon Dr: Carriage Rd. to Bells Rd. HighIncluded in short-

term capital

RoadsOxbow Dr: Komoka Rd. to Valleyview Dr.


term capital

RoadsMedway Rd: Vanneck Rd. to Denfield Rd.


term capital

RoadsOld River Road: Glendon Dr. to Pulham Rd.


term capital

RoadsHyde Park Rd: Stonefield Lane to 12 Mile Rd.


term capital

Bridges & Culverts Culvert C-5-11 HighIncluded in short-

term capital

Bridges & Culverts Bridge B-306 HighIncluded in short-

term capital

Bridges & Culverts Culvert C-150 HighIncluded in short-

term capital

Bridges & Culverts Bridge B-114 HighIncluded in short-

term capital

Bridges & Culverts Culvert C-125 HighIncluded in short-

term capital

Facilities Coldstream Fire Hall HighIncluded in short-

term capital

Facilities Ilderton Arena Upgrades HighIncluded in short-

term capital

FacilitiesRoof Replacement/Repairs: Bryanston Community Centre


term capital

4-5


4.4 Long-term Forecast

For many years, lifecycle costing has been used in the field of maintenance Engineering and to

evaluate the advantages of using alternative materials in construction or production design. The

method has gained wider acceptance and use recently in the management of capital assets. By

definition, lifecycle costs are all the costs which are incurred during the lifecycle of a capital

asset, from the time it is purchased or constructed, to the time it is taken out of service for

disposal. The stages which an asset goes through in its lifecycle are as follows:

Figure 4-1

Asset Lifecycle Diagram

In defining the long-term forecast for the Municipality’s asset management strategy, costs

incurred through an asset’s lifecycle were considered and documented.

Asset Replacement Analysis

In forecasting the Municipality’s asset replacement needs, comparisons were made between the

following scenarios:

Scenario 1: Replacement forecast based on “PSAB 3150 Asset Data”

o Utilizing the PSAB 3150 inventory, year of installation and estimated service life, the

replacement of each asset was projected.

Scenario 2: Replacement forecast based on “Condition and Risk”;

o In addition to using the installation date, estimated useful life, the LOS, condition

information and staff identified priorities were used, where applicable to better predict

the timing of replacement. Results were smoothed over the forecast period.

PurchaseInstall

Commission

Removal / Decommission

Disposal

OperateMaintainMonitor

Throughout Life of AssetsTo End of Useful Life

Investment Costs

Operating Costs

Disposal Costs

4-6


Scenario 1: Replacement forecast based on “PSAB 3150 Asset Data”

The replacement forecast based on the PSAB 3150 asset data provides a snapshot of assets at

or nearing the end of their useful lives from a purely financial accounting perspective.

Figures 4-2 to 4-4 below show the forecasts over a 10 year period, where approximately $56.2

million (replacement cost) in tax supported capital assets, $0 in water capital assets and $0 in

wastewater capital assets are showing as “immediate needs”. For this scenario, this simply

means that these assets have reached the end of their accounting useful lives. Please refer to

Appendix E for charts and graphs depicting the entire 20 year forecast for this scenario.

Figure 4-2

Tax Supported Capital Assets - 10 Year Forecast

Figure 4-3

Water Capital Assets - 10 Year Forecast

‐

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Future Replacement Cost (Inflated)

Year of Replacement

Tax Supported AssetsReplacement Year Based PSAB 3150 Data

Equipment


Buildings

Storm Sewer

Sidewalks

Bridges & Culverts

Road ‐ Surface

Road ‐ Base

‐

100,000

200,000

300,000

400,000

500,000

600,000

Future Rep

lacemen

t Co

st (Inflated)

Year of Replacement

Water AssetsReplacement Year Based PSAB 3150 Data

Vehicles

Water Facilities

Fire Hydrants

Water Mains

4-7


Figure 4-4

Wastewater Capital Assets - 10 Year Forecast

Scenario 2: Replacement forecast based on “Condition and Risk”

Items that had been identified under the previous scenario have been distributed within the

forecast period. Based on these adjustments, $0 of tax supported capital assets, water capital

assets and wastewater capital assets are identified as “immediate needs”. Figures 4-5 to 4-7

show the 10 year forecasts under this scenario. This is the recommended scenario for the

Municipality. Please refer to Appendix E for charts and graphs depicting the entire 20 year

forecast for this scenario. A total of $108.1 million in tax supported, $4.0 million in water capital

and $16.5 million in wastewater capital replacement needs are identified over the 20 year

forecast period ($42.5 million, $1.0 million and $2.3 million respectively in the first 10 years).

Maintenance, Non-Infrastructure Solutions, Renewal & Rehabilitation

For the recommended scenario to be feasible, the level of service adjustments discussed in

Chapter 3 and Appendix D, are required in conjunction with current level of service amounts in

order to effectively maintain and rehabilitate the assets as needed. Appendix D provides

additional rehabilitation and maintenance requirements over the forecast period in the following

areas:

Fire Equipment, Roads related and Facilities - based on the Municipality’s capital

forecast and discussions with Municipal staff; and

Water and Wastewater related - based on the Municipality’s capital forecast and

discussions with Municipal staff.

The financing strategy discussed in the next Chapter will incorporate the level of service

adjustments, outlined in Appendix D, into the recommended financing analysis. In addition,

‐

100,000

200,000

300,000

400,000

500,000

600,000


Year of Replacement

Wastewater AssetsReplacement Year Based on PSAB 3150 Data


Wastewater Mains

4-8


expansion related needs will be layered into the forecast to determine total capital needs for

each year.

Figure 4-5

Tax Supported Capital Assets - 10 Year Forecast

Figure 4-6

Water Capital Assets - 10 Year Forecast

‐

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000


Year of Replacement

Tax Supported AssetsReplacement Year Based Informed Condition Analysis

Equipment


Buildings

Storm Sewer

Sidewalks

Bridges & Culverts

Road ‐ Surface

Road ‐ Base

0

100,000

200,000

300,000

400,000

500,000

600,000

Future Replacement Cost (Inlfated)

Year of Replacement

Water AssetsReplacement Year Based Informed Condition Analysis

Vehicles

Water Facilities

Fire Hydrants

Water Mains

4-9


Figure 4-7

Wastewater Capital Assets – 10 Year Forecast

4.5 Procurement Methods

Section 270(1) of the Municipal Act, S.O. 2001, provides that municipalities (and local boards)

shall adopt and maintain policies with respect to its procurement of goods and services.

Procurement policies are developed to provide a framework to support open, fair, transparent

and accountable purchasing processes, and to ensure procurement processes are consistently

managed. Moreover, the establishment of a by-law adopting the procurement policy provides a

document which has the approval of Council, which allows an opportunity for public debate.

An effective procurement policy assists municipalities in identifying cost-effective options for

providing services, while at the same time reducing risk. Innovative project management

models, such as public-private partnerships (P3’s) or co-operative purchasing, can help bring

together expertise, resources and funding opportunities. Where appropriate, bidders can be

required to provide lifecycle costing for the products and/or services being tendered. Lifecycle

costs can include initial construction/purchase price, plus operating costs for a contracted period

of time. Incorporating a lifecycle perspective in the procurement process can encourage

effective asset management in the time period following the initial capital investment.

In order to have an effective and efficient procurement program, especially related to the

purchase/construction of large capital assets, the procurement policy can include clauses to

protect the municipality, as well as assist in receiving competitive responses. Examples include:

Identification of the criteria used to determine the type of competitive process to be

followed (i.e. tender, RFP, RFQ);

0

100,000

200,000

300,000

400,000

500,000

600,000

Future Replacement Cost (Inlfated)

Year of Replacement

Wastewater AssetsReplacement Year Based on Informed Condition Analysis


Wastewater Mains

4-10


Identification of circumstances when Sole Sourcing, Negotiation, and/or In-House Bids

can be used;

Description of the methods to be used for advertising a competitive process;

Providing direction for purchasing in cases of emergency;

Providing direction for purchasing as part of a co-operative purchasing group;

Outlining any requirements related to bid deposits or other financial security;

Inclusion of a non-discrimination clause highlighting positions such as having a ‘no local

preference’ policy;

Notification that any bid can be rejected by the municipality;

Identification of reasons for terminating a contract with a supplier/contractor (i.e. poor

performance, unethical behaviour);

Identification of restrictions on the types and/or amounts of damages to which bidders

may be entitled, arising from their responding to a competitive process; and

Requirement for bidders to supply proof of insurance and WSIB.

As part of the continuous asset management update process, it is recommended that the

Municipality’s procurement policies and procedures be reviewed and compared against

procurement best practices to ensure resources are being allocated in an efficient manner.


5. FINANCING STRATEGY

5-1




The financing strategy outlines the suggested financial approach to funding the recommended

asset management strategy outlined in Chapter 4, while utilizing the Municipality’s existing

budget structure. This section of the asset management plan includes:

Annual expenditure forecasts broken down by:

o Maintenance/non-infrastructure solutions;

o Renewal/rehabilitation activities;

o Replacement/disposal activities; and

o Expansion activities.

Actual expenditures in the above named categories for 2011, 2012 and budget

expenditures for 2013;

A breakdown of annual funding/revenue by source;

Identification of the funding shortfall, including how the impact will be managed; and

All key assumptions are documented within Appendix B.

The long-term financing strategy forecast (including both expenditure and revenue sources) was

prepared, consistent with the Municipality’s departmental budget structure, so that it can be

used in conjunction with the annual budget process. Various financing options, including

taxation, reserves, reserve funds, debt, user fees and grants were considered and discussed

with Municipal staff during the process. Figure 5-1 provides a visual representation of how

various financing methods can be used for both initial asset purchases, as well as asset

replacements.

For the recommended asset management strategy scenario, a detailed twenty (20) year plan

was generated. The plan identifies specific maintenance & non-infrastructure solutions, renewal

& rehabilitation, replacement & disposal, and expansion activities required for the 20 year

forecast period as described in Chapter 4.

5-2


Figure 5-1 Financing Methods of Lifecycle Costs

5.2 Historical Results

Table 5-1 outlines the historical tax supported maintenance/non-infrastructure costs for 2011

and 2012, as well as 2013 budgeted results. All maintenance for assets was funded through

taxation revenue for tax supported assets, water rates for water related assets and wastewater

rates for wastewater related assets based on the Municipality’s budget structure.

Purchase

Install

Commission

Operate

Maintain

Monitor(Throughout Life

of Assets)

(To End ofUseful Life)


Disposal

New Assets Replacement Assets

Development Charges (Growth)Reserves/Reserve Funds

DebenturesTaxation

User FeesGrantsOther

Proceeds on DisposalFunding of Disposal /

Decommissioning Costs

Tax Supported Operating BudgetUser Fees Operating Budget

Financing Methods

Purchase

Install

Commission

Operate

Maintain

Monitor(Throughout Life

of Assets)

(To End ofUseful Life)


Disposal

5-3


Table 5-1

Historical Results

Maintenance & Non-Infrastructure Solutions

Tables 5-2 to 5-4 outline the historical capital results for 2011, 2012 and budgeted results for

2013 including renewal/rehabilitation, replacement/disposal, and expansion. The capital funding

includes the use of grants, development charges for growth (expansion) related costs,

debentures, reserve/reserve funds, gas tax, developer contributions, donations, as well as

contributions from the operating budget.

Tax Supported

Asset Maintenance 3,654,917 3,637,362 3,638,500 Taxation Funding 3,654,917 3,637,362 3,638,500

Net Unfunded - - -

Water

Asset Maintenance 189,381 199,558 441,500 Water Rate Revenue 189,381 199,558 441,500

Net Unfunded - - -

Wastewater

Asset Maintenance 192,464 256,985 259,500 Wastewater Rate Revenue 192,464 256,985 259,500

Net Unfunded - - -

Budget2013

Actual 2012

Actual 2011

Description

Budget2013

Actual 2012

Actual 2011

Description

Budget2013

Description Actual 2011

Actual 2012

5-4


Table 5-2 Tax Supported Historical Results

Renewal/Rehabilitation, Replacement/Disposal & Expansion

Tax Supported Capital Forecast

Capital ExpensesBryanston Tanker 249,007 81 - Arva Engine - - 250,000 Coldstream Demolition - - 300,000 Roadways - Traffic Operations and Roadside 4,614,935 377,125 - Wellington Street - - 1,404,000 Clarke Rd. - 9 Mile to 10 Mile - - 296,400 2013 Tandem Truck - - 288,750 2013 Grader - - 352,800

Culvert C-110 - - 250,000 Parks and Recreation 11,902,177 79,019 - Environmental - Storm Sewers 3,418,922 - - Environmental - Solid Waste 627,580 - - Delaware Municipal Washroom - - 100,000 Komoka Bleachers - - 10,000 Wellness Splashpad - - 250,000 Lawn Tractor - - 13,500 Dump Trailer - - 6,500 Ilderton Arena Upgrade Plans - - 20,000 Coldstream Salt Garage - - 10,000 Accessibility Improvements - - 30,000

Total Capital Expenditures 20,812,621 456,225 3,581,950 Capital Financing

Grants, Subsidies 10,844,262 - 30,000 Capital from Current 812,604 - 336,850 Debentures Issued - 10,614,519 - Development Charge Reserve Funds 2,529,395 32,381 368,813 Transfer from Reserves (Gas Tax) 502,715 107,474 1,546,400 Transfer from Reserves (Parkland) 72,964 12,162 100,000 Other Reserves and Reserve Funds 602,384 1,797,484 1,091,137 Donations 84,746 - 108,750 Developer Contributions 7,096,676 542,000 -

Total Capital Financing 22,545,746 13,106,021 3,581,950

Total Capital Expenses less Capital Financing (1,733,125) (12,649,796) -

Budget2013

DescriptionActual2011

Actual2012

5-5


Table 5-3 Water Historical Results

Renewal/Rehabilitation, Replacement/Disposal & Expansion

Table 5-4

Wastewater Historical Results Renewal/Rehabilitation, Replacement/Disposal & Expansion

5.3 Financing Strategy

Tax Supported

Table 5-5 shows the tax supported expenditure forecast for maintenance, renewal/rehabilitation,

replacement/disposal and expansion for the first 10 years of the forecast. While this summary

only shows high level cost classifications, further detail (including the full 20 year forecast) can

be obtained from Appendix F.

Water Capital Forecast

Capital ExpensesCapital Expenditures per FIR 1,575,512 306,523 - Ilderton Water Storage - - 367,500 Water Meters Purchase - - 60,000

Total Capital Expenditures 1,575,512 306,523 427,500 Capital Financing

Debentures Issued 4,488,847 - - Development Charge Reserve Funds 22,787 - 427,500

Total Capital Financing 4,511,634 - 427,500

Total Capital Expenses less Capital Financing (2,936,122) 306,523 -


Actual2012

Budget2013

Wastewater Capital Forecast

Capital ExpensesCapital Expenditures 7,491,369 25,710 - Ilderton WW Facility Expansion - - 40,000 Ilderton #5 Generator - - 30,000 Ilderton PS 1A - - 700,000 Kilworth West Connection - - 52,500 Wellington St. WW Component - - 567,000

Total Capital Expenditures 7,491,369 25,710 1,389,500 Capital Financing

Development Charge Reserve Funds 61,039 50,422 198,625 Debentures Issued 2,100,000 8,624,748 - Other Reserves and Reserve Funds - - 1,190,875

Total Capital Financing 2,161,039 8,675,170 1,389,500

Total Capital Expenses less Capital Financing 5,330,330 (8,649,460) -


Actual2012

Budget2013

5-6


Table 5-5

Tax Supported Expenditure Forecast Summary

Items in Table 5-5 labelled as “LOS Adjustment” refer to the level of service analysis discussed

in Chapter 2 and Appendix D. Expansion related costs labelled as “DC related” refer to projects

identified in the Municipality’s Development Charge Background Study (please refer to

Appendix F). Please note that, as the Municipality’s Development Charge Background Study is

currently being updated, it is recommended that the results of the update be inserted into this

asset management plan, when available.

Table 5-6 summarizes the recommended strategy to finance the asset related costs identified in

Table 5-5.

Table 5-6

Breakdown of Annual Tax Supported Funding (Revenue) by Source

These lifecycle costs are being recovered through several methods:

Taxation funding is suggested for all maintenance costs, as well as level of service

adjustment related costs related to operations.

The portion of newly acquired or constructed assets that are “growth (DC) related” are

shown as financed by development charges.

Federal Gas Tax has been shown as a stable and long-term funding source for eligible

capital projects.

Debt financing is shown as required in years where significant capital needs are

identified.

Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Maintenance: Current Service Levels 3,711,270 3,785,495 3,861,205 3,938,429 4,017,198 4,097,542 4,179,493 4,263,083 4,348,344 4,435,311 Maintenance: LOS Adjustment 10,200 16,851 21,854 33,765 46,371 47,762 49,195 50,671 52,191 53,756 Total Asset Maintenance 3,721,470 3,802,346 3,883,059 3,972,194 4,063,569 4,145,304 4,228,688 4,313,754 4,400,535 4,489,067

Renewal/Rehabilitation - - - - - - - - - - Renewal/Rehabilitation - LOS Adjustment 86,380 1,135,163 1,311,272 416,438 463,710 447,770 491,950 506,708 521,909 537,567 Total Renewal/Rehabilitation 86,380 1,135,163 1,311,272 416,438 463,710 447,770 491,950 506,708 521,909 537,567

Replacement/Disposal 3,339,817 3,581,860 3,647,413 3,678,731 3,632,133 5,113,575 4,845,101 5,027,056 4,457,592 5,148,587 Replacement/Disposal - LOS Adjustment 51,500 - 349,673 - - - - - - - Total Replacement/Disposal 3,391,317 3,581,860 3,997,086 3,678,731 3,632,133 5,113,575 4,845,101 5,027,056 4,457,592 5,148,587

Expansion: DC Related 1,493,500 787,392 1,104,196 1,252,417 478,234 1,733,422 1,235,830 1,009,767 - - Expansion: LOS Adjustment 1,040,300 507,641 152,982 33,765 - 29,851 - - - - Total Expansion 2,533,800 1,295,033 1,257,178 1,286,182 478,234 1,763,273 1,235,830 1,009,767 - -

Total 9,732,967 9,814,403 10,448,595 9,353,545 8,637,647 11,469,922 10,801,569 10,857,284 9,380,036 10,175,221

Asset Lifecycle Costs

Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Taxation 3,735,750 3,791,737 3,861,205 3,938,429 4,017,198 4,097,542 4,179,493 4,263,083 4,348,344 4,435,311 Grants - - - - - - - - - - Non-Growth Related Debentures - 2,500,000 2,500,000 1,000,000 300,000 2,000,000 1,200,000 900,000 - - Growth Related Debentures - - - 400,000 - 200,000 150,000 - - - Development Charges Reserve Funds 300,348 349,590 919,334 658,106 405,371 728,751 619,980 557,297 - - Gas Tax Reserve Funds 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 Capital Reserve Fund 5,217,369 2,693,576 2,688,555 2,877,510 3,435,578 3,964,130 4,172,597 4,657,405 4,552,192 5,260,410 Total 9,732,967 9,814,403 10,448,595 9,353,545 8,637,647 11,469,922 10,801,569 10,857,284 9,380,036 10,175,221

Funding (Revenue) by Source

5-7


The Municipality will be dependent upon maintaining healthy capital reserves/reserve

funds in order to provide the remainder of the required lifecycle funding over the forecast

period. This will require the Municipality to proactively increase amounts being

transferred to these capital reserves during the annual budget process.

While the annual funding requirement may fluctuate, it is important for the Municipality to

implement a consistent, yet increasing annual investment in capital so that the excess annual

funds can accrue in capital reserve funds.

In order to fund the recommended asset requirements over the forecast period using the

Municipality’s own available funding sources (i.e. using taxation, gas tax funding and

debentures), an increase in the Municipality’s taxation levy of 3.94% per year (including

inflationary adjustments to operating budgets) would be required for the first 10 years of the

forecast period (dropping to 1.97% thereafter). However, if other funding sources become

available (i.e. grant funding) or if maintenance and rehabilitation practices allow for the deferral

of capital works, then the impact on Municipality taxation levy would decrease.

Water

Table 5-7 shows the water expenditure forecast for maintenance, renewal/rehabilitation,



be obtained from Appendix G.

Table 5-7

Water Expenditure Forecast Summary




Appendix G). Please note that, as the Municipality’s Development Charge Background Study is

Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Maintenance: Current Service Levels 450,330 459,337 468,523 477,894 487,452 497,201 507,145 517,288 527,633 538,186 Maintenance: LOS Adjustment - - - - - - - - - - Total Asset Maintenance 450,330 459,337 468,523 477,894 487,452 497,201 507,145 517,288 527,633 538,186

Renewal/Rehabilitation - - - - - - - - - - Renewal/Rehabilitation - LOS Adjustment - - - - - 477,621 491,950 506,708 521,909 537,567 Total Renewal/Rehabilitation - - - - - 477,621 491,950 506,708 521,909 537,567

Replacement/Disposal - 169,744 - - 184,957 219,614 - - - 492,957 Replacement/Disposal - LOS Adjustment 82,400 201,571 1,715,581 213,847 382,560 - - - - - Total Replacement/Disposal 82,400 371,315 1,715,581 213,847 567,517 219,614 - - - 492,957

Expansion: DC Related 3,244,500 642,905 5,163,135 2,031,543 36,517 179,108 - - 163,097 - Expansion: LOS Adjustment - - - - - - - - - - Total Expansion 3,244,500 642,905 5,163,135 2,031,543 36,517 179,108 - - 163,097 -

Total 3,777,230 1,473,557 7,347,239 2,723,284 1,091,486 1,373,544 999,095 1,023,996 1,212,639 1,568,710


5-8




Table 5-8 summarizes the recommended strategy to finance the asset related costs identified in

Table 5-7.

Table 5-8

Breakdown of Annual Water Funding (Revenue) by Source


Water rate revenue is suggested for all maintenance costs, as well as level of service

adjustment related costs related to operations.

As the Municipality has recently applied for provincial grant funding, grant funding has

been included for this item based on the terms and conditions of the grant applications.




identified.









Municipality’s own available funding sources (i.e. using water rate revenue and debentures), an

increase in revenue (i.e. combination of growth and rate increases) of 10% per year would be

required for the first 4 years of the forecast period (dropping to 3.0% thereafter). These

increases reflect capital and operating related needs (operating inflation assumed to be 2.0%).

However, if other funding sources become available (i.e. grant funding) or if maintenance and

rehabilitation practices allow for the deferral of capital works, then the impact on Municipality

water rate revenue would decrease. In order to assess the impacts of the water rates

specifically, a water rate study would be required.

Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Water Rate Revenue 450,330 459,337 468,523 477,894 487,452 497,201 507,145 517,288 527,633 538,186 Grants 2,000,000 - 2,000,000 - - - - - - - Non-Growth Related Debentures 300,000 - 1,400,000 - - - - - - - Growth Related Debentures 432,000 154,000 2,415,000 1,086,116 100,000 230,000 - - - - Development Charges Reserve Funds 421,304 167,452 166,568 0 (81,741) (50,892) - - 163,097 - Capital Reserve Fund 173,597 692,769 897,149 1,159,274 585,776 697,235 491,950 506,708 521,909 1,030,524 Total 3,777,230 1,473,557 7,347,239 2,723,284 1,091,486 1,373,544 999,095 1,023,996 1,212,639 1,568,710


5-9


Wastewater

Table 5-9 shows the water expenditure forecast for maintenance, renewal/rehabilitation,



be obtained from Appendix H.

Table 5-9

Wastewater Expenditure Forecast Summary




Appendix H). Please note that, as the Municipality’s Development Charge Background Study is



Table 5-10 summarizes the recommended strategy to finance the asset related costs identified

in Table 5-9.

Table 5-10

Breakdown of Annual Wastewater Funding (Revenue) by Source


Wastewater rate revenue is suggested for all maintenance costs, as well as level of

service adjustment related costs related to operations.

Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Maintenance: Current Service Levels 264,690 269,984 275,383 280,891 286,509 292,239 298,084 304,046 310,127 316,329 Maintenance: LOS Adjustment - - - - - - - - - - Total Asset Maintenance 264,690 269,984 275,383 280,891 286,509 292,239 298,084 304,046 310,127 316,329

Renewal/Rehabilitation - - - - - - - - - - Renewal/Rehabilitation - LOS Adjustment - - - - - - - - - - Total Renewal/Rehabilitation - - - - - - - - - -

Replacement/Disposal - - 434,283 397,610 - 421,825 504,551 499,697 - - Replacement/Disposal - LOS Adjustment - - - - - - - - - - Total Replacement/Disposal - - 434,283 397,610 - 421,825 504,551 499,697 - -

Expansion: DC Related 309,000 2,302,153 628,318 9,454,274 11,013,104 1,607,194 2,521,241 633,385 195,716 2,687,833 Expansion: LOS Adjustment - - - - - - - - - - Total Expansion (excl. Contributed) 309,000 2,302,153 628,318 9,454,274 11,013,104 1,607,194 2,521,241 633,385 195,716 2,687,833

Total 573,690 2,572,137 1,337,985 10,132,776 11,299,613 2,321,258 3,323,876 1,437,128 505,842 3,004,162


Forecast2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Wastewater Rate Revenue 264,690 269,984 275,383 280,891 286,509 292,239 298,084 304,046 310,127 316,329 Grants - - - - - - - - - - Other Revenue (Developer Contributions - 1,000,000 - - - - - - - - Non-Growth Related Debentures - - - 6,750,000 7,600,000 350,000 580,000 - - - Growth Related Debentures - - - 500,000 1,850,000 250,000 560,000 - - - Development Charges Reserve Funds 154,500 1,151,077 140,466 1,613,580 612,069 553,597 546,886 158,346 97,858 1,343,916 Capital Reserve Fund 154,500 151,077 922,136 988,304 951,034 875,422 1,338,906 974,736 97,858 1,343,916 Total 573,690 2,572,137 1,337,985 10,132,776 11,299,613 2,321,258 3,323,876 1,437,128 505,842 3,004,162


5-10


Developer Contributions related to the assets that are anticipated to be constructed over

the forecast period.




identified.








As noted in Table 5-9, significant expansion related costs have been identified for wastewater.

Table 5-10 outlines a significant amount of debt to fund this requirement. It is recommended

that, when the DC Study update is complete and when developer related involvement in these

projects is known, that the wastewater financing strategy be updated for more accurate

projections of development charge revenue and/or developer contribution revenue. This will

give the Municipality a more accurate projection of wastewater debt requirements and the

related impact on borrowing capacity limits.


Municipality’s own available funding sources (i.e. using wastewater rate revenue and

debentures), an increase in revenue (i.e. combination of growth and rate increases) of 10.8%

per year would be required for the first 8 years of the forecast period (dropping to 3.3%

thereafter). These increases reflect capital and operating related needs (operating inflation

assumed to be 2.0%). However, if other funding sources become available (i.e. grant funding)

or if maintenance and rehabilitation practices allow for the deferral of capital works, then the

impact on Municipality wastewater rate revenue would decrease. In order to assess the impacts

of the wastewater rates specifically, a wastewater rate study would be required.

5.4 Funding Shortfall

Assuming the Municipality maintains adequate capital reserve funds, the recommended asset

management strategy discussed in Chapter 4 will be fully funded. It is believed this can be

accomplished through each annual budget process. However, the recommended asset

management strategy does defer significant capital replacements, in comparison to

recommendations stated in various Municipality asset related reports. In the event that certain

deferred replacements result in increased risks and/or projected asset failures, further funding

5-11


may be required to address the costs associated with accelerating replacement timelines. In

addition, in the event that the Municipality is not successful in recent grant applications,

additional funding would be required in the short-term.

A fundamental approach to calculating the cost of using a capital asset and for the provision of

the revenue required when the time comes to retire and replace it is the “sinking fund method”.

This method first estimates the future value of the asset at the time of replacement, by inflating

the current value of the asset at an assumed annual capital inflation rate. A calculation is then

performed to determine annual contributions which, when invested in a reserve fund, will grow

with interest to a balance equal to the future replacement cost. The contributions are calculated

such that they also increase annually with inflation. Under this approach, an annual capital

investment amount is calculated where funds are available for short-term needs while

establishing a funding plan for long-term needs. Annual contributions in excess of capital costs

in a given year would be transferred to a “capital replacement reserve fund” for future capital

replacement needs. This approach provides for a stable funding base, eliminating variances in

annual funding requirements, particularly in years when capital replacement needs exceed

typical capital levy funding. Please refer to Figure 5-2 for an illustration of this method.

Figure 5-2

Sinking Fund Method

Tax Supported

From a tax supported asset base perspective, the estimated annual sinking fund requirement,

based on using the calculations discussed above, is approximately $5.45 million (in 2013

dollars). Based on the Municipality’s 2013 budget, current annual capital investment is

approximately $1.8 million (with an additional $1.5 million in gas tax funding). This would

provide a high level estimate of the Municipality’s annual infrastructure funding deficit at $3.65

million (in 2013 dollars).

1 2 3 4 5 6 7 8 9 10

$

Year

$120,000 asset, 10 year life

Replacement Cost on Dec. 31 Beginning of Year Balance Annual Contribution Annual Interest Earned

On Dec. 31 of the 10th

year, balance in the reserve fund is exactly equal to the asset's replacement cost.

5-12


Water

From a water asset base perspective, the estimated annual sinking fund requirement, based on

using the calculations discussed above, is approximately $1.5 million (in 2013 dollars). Based

on the Municipality’s 2013 budget, current annual capital investment is approximately $200,000.

This would provide a high level estimate of the Municipality’s annual infrastructure funding

deficit at $1.3 million (in 2013 dollars).

Wastewater

From a wastewater asset base perspective, the estimated annual sinking fund requirement,

based on using the calculations discussed above, is approximately $2.1 million (in 2013 dollars).

Based on the Municipality’s 2013 budget, current annual capital investment is approximately

$360,000. This would provide a high level estimate of the Municipality’s annual infrastructure

funding deficit at $1.7 million (in 2013 dollars).

Under the recommended financing strategy, the Municipality would be making proactive

attempts to mitigate these funding gaps over the forecast period. Please see Figures 5-3 to 5-5

below for a 10 year forecast of implementing this strategy for tax supported, water and

wastewater assets respectively. The blue portion of the graph outlines the current capital

investment amounts, increasing at inflation. The red portion indicates the result of implementing

recommended increases in available funding sources (resulting in increases in capital

investment annually). The green represents optimal annual capital investment amounts

(calculated as described above). Please note “optimal” capital investment funding can come

from a number of additional sources, such as grants, donations, debt and other contributions.

Please refer to Appendices F (tax supported), G (water) and H (wastewater) for 20 year

versions of these graphs, indicating that if recommended annual funding levels are achieved,

the annual infrastructure funding gap would be eliminated during the forecast period.

5-13


Figure 5-3

Tax Supported Assets

Figure 5-4

Water Assets

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Annual Infrastructure Funding Gap Analysis(Inflated)

Current Capital with Inflation Recommended Funding Increase Optimal Funding

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023



5-14


Figure 5-5

Wastewater Assets

To further mitigate the potential infrastructure funding deficit, the Municipality could consider:

Decreasing expected levels of service to make available capital funding;

Issuing debt for significant and/or unforeseen capital projects, in addition to the debt

recommended within this report, while staying within the Municipality’s debt capacity

limits (this would have the impact of spreading out the capital repayment over a defined

term);

Actively seeking out and applying for grants;

Consider approaching the development community for funding assistance with respect

to growth/expansion related projects;

Rate increases, where needed (i.e. taxation, user fees); or

Implementing operating efficiencies (i.e. reduced operating costs to allow more capital

investment).

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023




6. RECOMMENDATIONS

6-1


6. RECOMMENDATIONS

The following recommendations have been provided for consideration:

That the Municipality of Middlesex Centre Asset Management Plan be received and

approved by Council;

That consideration of this Asset Management Plan be made as part of the annual

budgeting process to ensure sufficient capital funds are available to fund capital

requirements; and

That this Asset Management plan be updated as needed over time to reflect the current

priorities of the Municipality.

The current level of funding for asset replacement and renewal at the Municipality will not

sufficiently fund capital needs or close the infrastructure funding gap. As such, it is

recommended that the following additional recommendations (developed through discussions

with Municipal staff) be considered during the annual budget process:

Initiation of “level of service” (LOS) strategies discussed in Chapters 3, 4 and Appendix

D.

Consider an increase in taxation as part of upcoming budget deliberations, dedicated to

capital, to be transferred to capital reserve(s).

Water revenue increases consistent with the calculations provided in this report.

Wastewater revenue increases consistent with the calculations provided in this report.

Substantial investment in capital needs will be required over the forecast period. Through the

recommendations provided above, proactive steps would be taken to increase capital

investment, as well as reduce the annual infrastructure funding gap for these assets. Enhanced

level of service will assist in maintaining adequate asset conditions, mitigate asset risk, as well

as potentially defer capital needs within the forecast period. In addition, the Municipality should

pursue available capital grants, wherever possible, to further reduce the infrastructure funding

gap.

Through the creation of this plan, Municipal staff have been provided with a model in which

amendments and revisions can be made as needed. It is anticipated that the final plan adopted

by Council will be monitored and updated frequently by Municipal staff as part of the budget

process, with refinements and specific recommendations being provided with respect to the

priority of each individual project.


APPENDIX A

DETAILED ASSET INVENTORY

A-1


APPENDIX A

REFER TO TECHNICAL APPENDIX


APPENDIX B

ASSET MANAGEMENT ASSUMPTIONS

B-1


APPENDIX B: ASSET MANAGEMENT PLAN ASSUMPTIONS

The following assumptions were made during the creation of the Municipality’s asset

management plan.


a) Indexing: When inflating an asset value to a 2013 replacement value, the Non-

Residential Building Construction Price Index (NRBCPI) was used for Road,

Bridge/Culvert and Building related assets. Other assets (equipment, vehicles, and land

improvements, etc.) were inflated using the Consumer Price Index (CPI). Two indexes

were used to account for the difference between construction related assets and assets

that are more consumer in nature.

b) In order to establish an initial condition assessment for some assets, calculations were

performed to link condition to asset age. This was done in order to establish condition

ratings for this report and it is recommended that the Municipality follow the “Condition

Assessment Policy” shown in Appendix C in the future.


a) Capital inflation rate will be assumed to be 3% annually.

b) Operating budget inflation rate will be assumed to be 2% annually.

c) Regarding operating expenses included in the Municipality’s current budget, it is

assumed that they will increase at an operating inflation rate annually, unless staff have

provided alternative impacts.

d) When any existing debenture payments are complete (if applicable), annual budget

savings created through removing these payments have been dedicated to capital.


a) Taxation assessment growth is assumed to be 1.0% annually.

b) Development charges rates are assumed to increase at 2% annually.

c) Gas tax revenue has been identified as a funding source for the purposes of this

analysis (i.e. for asset replacement purposes), and has been assumed to continue

throughout the forecast period.

d) Interest rate earned on a Capital Replacement Reserve Fund will be 2% annually.

e) In the case where debt financing is needed, the model assumed debt terms of 20 years

at 5% annual interest. For growth related debt, debt payments are shown as funded

directly from the development charge reserve funds.


APPENDIX C

DATA VERIFICATION AND CONDITION ASSESSMENT

POLICY

C-1


APPENDIX C: DATA VERIFICATION AND CONDITION

ASSESSMENT POLICY

Municipality of Middlesex Centre

Data Verification and Condition Assessment Policy

Data Verification

1. The main source of asset data updating and editing will be though the Municipality’s

PSAB 3150 compliance procedures.

2. Asset additions, disposals, betterments, and write-offs will be recorded based on the

Municipality’s PSAB 3150 Compliance Policies.

3. Verification of the correct treatment of asset revisions will be completed through frequent

annual reviews by the Municipality’s Treasurer as well as an annual review by the

Municipality’s external auditor.

4. During years in which condition assessments are not being performed, asset

replacement cost will be determined based on a combination of inflating previous current

values or thorough the use of the current year’s historical invoice data. Where indices

are being used, the Non-Residential Building Construction Price Index (NRBCPI) shall

be used for construction related assets (i.e. roads related, storm, water, and facilities)

and the Consumer Price Index (CPI) shall be used for all other assets (i.e. machinery &

equipment, vehicles and land improvements).

Condition Assessment

1. Condition assessments shall be performed as outlined in Table C-1 below. Condition

assessments shall be performed by qualified individuals (or companies) and shall

include a review of the following:

Current asset condition (consistent with the rating format used within this report,

unless Municipal staff stipulate a new format);

i. Identify any unusual wear from asset use that may hinder asset performance

and eventually reduce useful life.

ii. Assess asset performance and identify (if any) capital improvements that can

be applied to extend the asset’s useful life and/or bring the asset back to

proper service levels.

Current asset replacement cost. This is to be based on replacing the asset under

current legislation/requirements using the Municipality’s specifications; and

Remaining service life, assuming current maintenance and usage levels.

C-2


Table C-1

Condition Assessment Time Table

Asset Type Frequency of Condition Assessment

Roads Related Every 5 years, based on Minimum

Maintenance Standards

Bridges and Culverts (greater than 3m)

Every 2 years, based on applicable legislation

Facilities Every 5-10 years, with priority given

to older buildings


Annually (typically by Municipal staff), part of maintenance program

Water, Wastewater, Storm Related

Every 5 years, based on applicable legislation


APPENDIX D

LEVEL OF SERVICE IMPACT ANALYSIS

Impact (in 2013 $)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Protection to Persons and PropertyExpenditures

Equipment Replacement SCOTT Upgrades - Multiple Stations Replacement/Disposal - - 180,000 - - - - - - - - - - - - - - - - - Equipment Replacement Varous Equipment Replacement Renewal/Rehabilitation - - - 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

Sub-total Expenditures - - 180,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Transportation Services

ExpendituresOperating Expenditures Storm Pond Maintenance Maintenance 50,000 Capital Expenditures Street Light Maintenance and Repairs Maintenance - 10,000 20,000 30,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 Capital Expenditures Tractor/Mower Replacement/Disposal 140,000 Capital Expenditures Single Axle Truck Expansion 218,500 Capital Expenditures Ongoing Rehab & Maintenance Renewal/Rehabilitation 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000

Sub-total Expenditures - 228,500 160,000 180,000 190,000 190,000 190,000 190,000 190,000 190,000 240,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 190,000 Environmental Services (Waste)

ExpendituresLand Purchase Material Storage and Yard Waste Transfer Site Expansion 200,000 - - - - - - - - - - - - - - - - - - -

Sub-total Expenditures 200,000 - - - - - - - - - - - - - - - - - - - Community Services

ExpendituresCapital Expenditures Arva Weldon - Roadway Asphalt & Repair Renewal/Rehabilitation 25,000 Capital Expenditures Arva Weldon - Construct New Pavilion Expansion 100,000 Capital Expenditures Arva Weldon - Construct Washrooms Expansion 110,000 Capital Expenditures Ilderton Optimist - Construct Washrooms Expansion 120,000 Capital Expenditures Ilderton Optimist - Basketball Court Expansion 50,000 Capital Expenditures Ilderton Optimist - Tennis Court & Basketball Court Lighting Expansion 20,000 Capital Expenditures Bryanston - Construct 2 Soccer Fields Expansion 30,000 Capital Expenditures Ilderton Heritage - Remove Second Story of Barn Replacement/Disposal 50,000 Capital Expenditures Ilderton Heritage - Resurface Skateboard Park Renewal/Rehabilitation 20,000 Capital Expenditures Lions Park - New Playground Structure Expansion 30,000 Capital Expenditures Delaware Lions - Skateboard Park Expansion 80,000 Capital Expenditures Poplar Hill - Pavilion Renovations Renewal/Rehabilitation 50,000 Capital Expenditures Delaware Municipal - New Washrooms Expansion 130,000 Capital Expenditures Komoka Park - Irrigate Ball Diamond and Soccer Fields Expansion 30,000 Capital Expenditures Komoka Park - Skateboard Park Expansion 80,000 Capital Expenditures Trails - North Ilderton Trail Development Expansion 20,000 Capital Expenditures Ilderton Arena - Curling Club Dehumidification Renewal/Rehabilitation 15,000 Capital Expenditures Ilderton Arena - Upgrades Renewal/Rehabilitation 20,000 Capital Expenditures Ilderton Arena - Major Updates Renewal/Rehabilitation 1,000,000 1,000,000 Capital Expenditures Ilderton Arena - Parking Lot Repavement Renewal/Rehabilitation 200,000 Operating Expenditures Wellness Centre - 8 Additional Security Camera Maintenance 10,000 Capital Expenditures Wellness Centre - Splash Pad Expansion 180,000 Operating Expenditures Wellness Centre - Compound Fencing Maintenance 6,000 Capital Expenditures Two 3/4 Ton Pick up rucks (plow and sander) Expansion 95,000 Capital Expenditures Snow Blade for Large John Deere Expansion 15,000 Capital Expenditures Tractor/Loader (40HP) Expansion 25,000 Operating Expenditures Coldstream CC - New Stove Renewal/Rehabilitation 7,000 Operating Expenditures Komoka CC - New Stove Renewal/Rehabilitation 7,000 Capital Expenditures Community Service Garage - Upgrades (electrical and water) Renewal/Rehabilitation 10,000 Capital Expenditures Accessability Improvements Expansion 60,000 30,000 30,000 30,000 Capital Expenditures Ongoing Rehab & Maintenance Renewal/Rehabilitation 170,000 200,000 175,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000

Sub-total Expenditures 954,000 1,336,000 1,340,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000

Total Expenditures (Uninflated) 1,154,000 1,564,500 1,680,000 430,000 440,000 440,000 440,000 440,000 440,000 440,000 490,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000

Total Operating Expenditures (Uninflated) 24,000 6,000 - - - - - - - - 50,000 - - - - - - - - -

Total Capital Expenditures (Uninflated) 1,130,000 1,558,500 1,680,000 430,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000

Total Operating Expenditures (Inflated) 24,480 6,242 - - - - - - - - 62,169 - - - - - - - - -

Total Capital Expenditures (Inflated) 1,163,900 1,653,413 1,835,781 483,968 510,081 525,383 541,145 557,379 574,100 591,323 609,062 627,335 646,155 665,539 685,506 706,071 727,253 749,071 771,543 794,689

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Maintenance 10,200 16,851 21,855 33,765 46,371 47,762 49,195 50,671 52,191 53,757 117,538 57,030 58,741 60,504 62,319 64,188 66,114 68,097 70,140 72,244 Renewal/Rehabilitation 86,380 1,135,163 1,311,272 416,438 463,710 447,770 491,950 506,708 521,909 537,567 553,694 570,304 587,413 605,036 623,187 641,883 661,139 680,973 701,402 722,444 Replacement/Disposal 51,500 - 349,673 - - - - - - - - - - - - - - - - - Expansion 1,040,300 507,641 152,982 33,765 - 29,851 - - - - - - - - - - - - - -

Grand Total (Inflated) 1,188,380 1,659,655 1,835,782 483,968 510,081 525,383 541,145 557,379 574,100 591,324 671,232 627,334 646,154 665,540 685,506 706,071 727,253 749,070 771,542 794,688

Municipality of Middlesex Centre2013 Asset Management Plan

Asset Management Strategy - Change in Level of Service

Tax Supported ServicesTable D-1

Departments Description Planned Actions

Impact (Inflated)Planned Actions Summary

Watson & Associates Economists Ltd. H:\Middlesex Centre\2013 AM\Middlesex Centre AM Model FINAL.xlsx

D-1



Impact (in 2013 $)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Water ServicesExpenditures

Capital Expenditures Water Meters Replacement/Disposal 80,000 80,000 80,000 80,000 80,000 - - - - - - - - - - - - - - - Capital Expenditures Water main Replacement Program Replacement/Disposal - - 500,000 - 250,000 - - - - - - - - - - - - - - - Capital Expenditures Lake Huron Supply Connection EA Replacement/Disposal - 110,000 990,000 110,000 - - - - - - - - - - - - - - - - Capital Expenditures Ongoing Rehab & Maintenance Renewal/Rehabilitation - - - - - 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000

Total Expenditures (Uninflated) 80,000 190,000 1,570,000 190,000 330,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000

Total Operating Expenditures (Uninflated) - - - - - - - - - - - - - - - - - - - -

Total Capital Expenditures (Uninflated) 80,000 190,000 1,570,000 190,000 330,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000

Total Operating Expenditures (Inflated) - - - - - - - - - - - - - - - - - - - -

Total Capital Expenditures (Inflated) 82,400 201,571 1,715,581 213,847 382,560 477,621 491,950 506,708 521,909 537,567 553,694 570,304 587,413 605,036 623,187 641,883 661,139 680,973 701,402 722,444

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Maintenance - - - - - - - - - - - - - - - - - - - - Renewal/Rehabilitation - - - - - 477,621 491,950 506,708 521,909 537,567 553,694 570,304 587,413 605,036 623,187 641,883 661,139 680,973 701,402 722,444 Replacement/Disposal 82,400 201,571 1,715,581 213,847 382,560 - - - - - - - - - - - - - - - Expansion - - - - - - - - - - - - - - - - - - - -

Grand Total (Inflated) 82,400 201,571 1,715,581 213,847 382,560 477,621 491,950 506,708 521,909 537,567 553,694 570,304 587,413 605,036 623,187 641,883 661,139 680,973 701,402 722,444


Environmental Services - WaterTable D-2

Planned Actions SummaryImpact (Inflated)


D-2



Impact (in 2013 $)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Wastewater ServiceExpenditures

Capital Expenditures Ongoing Rehab & Maintenance Renewal/Rehabilitation - - - - - - - - - - - 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total Expenditures (Uninflated) - - - - - - - - - - - 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total Operating Expenditures (Uninflated) - - - - - - - - - - - - - - - - - - - -

Total Capital Expenditures (Uninflated) - - - - - - - - - - - 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total Operating Expenditures (Inflated) - - - - - - - - - - - - - - - - - - - -

Total Capital Expenditures (Inflated) - - - - - - - - - - - 427,728 440,560 453,777 467,390 481,412 495,854 510,730 526,052 541,833

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Maintenance - - - - - - - - - - - - - - - - - - - - Renewal/Rehabilitation - - - - - - - - - - - 427,728 440,560 453,777 467,390 481,412 495,854 510,730 526,052 541,833 Replacement/Disposal - - - - - - - - - - - - - - - - - - - - Expansion - - - - - - - - - - - - - - - - - - - -

Grand Total (Inflated) - - - - - - - - - - - 427,728 440,560 453,777 467,390 481,412 495,854 510,730 526,052 541,833


Environmental Services - WastewaterTable D-3

Planned Actions SummaryImpact (Inflated)


D-3


APPENDIX E

SCENARIO ANALYSIS – CAPITAL FORECASTS


Scheduled Capital Replacement (Tax Supported Assets) - Inflated

Replacement Year Based on Scenario 1Table E-1

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated 56,189,583 1,442,763 5,770,040 4,443,032 5,288,783 4,979,856 7,051,619 50,753,971 1,700,796 21,795,976 4,696,684 3,831,138 27,453,380 6,418,826 52,864,329 10,794,055 9,329,333 10,882,713 18,110,898 9,300,895 23,430,256 336,528,925

Road - Base 2,555,123 - - 948,936 - 592,174 1,113,759 701,794 - 2,904,009 3,434,986 - 20,521,550 4,866,847 3,978,032 5,151,266 5,050,963 4,229,282 8,073,814 7,385,534 8,857,841 80,365,910 Road - Surface 37,307,379 540,462 956,379 1,854,508 877,524 1,805,504 1,107,301 39,066,969 - - 184,120 - 46,778 - 46,855,961 39,370 882,402 266,812 600,211 145,848 11,432,808 143,970,336 Bridges & Culverts 13 936 460 708 738 4 631 377 893 524 4 092 406 1 636 593 4 320 959 8 160 176 553 660 1 211 490 2 076 314 2 438 475 965 267 2 535 115 1 401 075 2 826 861 1 500 373 991 277 1 100 695 55 980 834

Replacement Year Based on Scenario 1

Bridges & Culverts 13,936,460 708,738 4,631,377 893,524 4,092,406 1,636,593 4,320,959 8,160,176 553,660 1,211,490 - 2,076,314 2,438,475 - 965,267 2,535,115 1,401,075 2,826,861 1,500,373 991,277 1,100,695 55,980,834 Sidewalks 183,448 - - 8,230 15,046 3,947 21,281 7,367 43,173 62,808 14,619 19,351 423,569 112,191 66,993 66,678 - - 402,458 35,209 204,508 1,690,878 Storm Sewer - - - - - - - - - - - - - - - - - - - - - - Buildings - - - - - - - 975,628 - 16,093,596 - - 3,517,352 - - 147,021 81,852 1,995,011 5,741,153 252,743 - 28,804,356 Vehicles & Machinery 1,981,166 103,964 165,407 285,647 244,105 687,578 198,051 1,451,045 293,968 1,498,715 759,224 1,615,060 482,973 832,086 917,840 2,513,169 1,522,945 1,039,287 738,600 456,204 1,426,211 19,213,245 Equipment 226,007 89,599 16,877 452,187 59,702 254,060 290,268 390,991 809,995 25,360 303,734 120,414 22,682 607,702 80,235 341,436 390,095 525,459 1,054,289 34,081 408,194 6,503,366

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated - 3,339,817 3,581,860 3,647,413 3,678,731 3,632,133 5,113,575 4,845,101 5,027,056 4,457,592 5,148,587 5,670,686 4,615,765 6,105,682 5,589,422 6,565,658 6,545,787 7,512,739 8,800,567 7,237,659 6,992,687 108,108,517

Road - Base - 751,507 869,105 497,514 978,500 399,894 1,408,239 1,270,255 1,411,857 1,405,375 1,516,751 1,535,496 1,502,410 1,592,831 1,761,848 1,718,933 2,091,210 1,847,126 2,343,604 2,207,283 2,302,404 29,412,141 R d S f 532 251 825 770 1 090 439 851 583 1 245 510 1 435 733 1 328 041 2 093 893 1 914 620 2 049 284 2 031 499 1 966 099 2 100 693 1 475 243 2 485 721 834 261 968 673 1 183 644 1 355 614 1 685 078 29 453 648


Road - Surface - 532,251 825,770 1,090,439 851,583 1,245,510 1,435,733 1,328,041 2,093,893 1,914,620 2,049,284 2,031,499 1,966,099 2,100,693 1,475,243 2,485,721 834,261 968,673 1,183,644 1,355,614 1,685,078 29,453,648 Bridges & Culverts - 580,000 730,000 640,000 800,000 420,000 683,587 405,044 187,153 - 664,592 264,155 276,468 694,578 780,594 1,013,407 1,022,406 756,317 1,091,657 991,277 1,100,695 13,101,929 Sidewalks - 46,599 55,244 57,417 60,980 63,597 62,302 64,724 63,539 68,551 71,748 72,226 75,061 77,238 80,385 89,713 94,511 81,834 86,382 92,957 100,416 1,465,424 Storm Sewer - - 153,234 - - 48,478 - - - - - - - - - - - - - - - 201,712 Buildings - - 195,225 392,421 - 532,410 232,637 316,369 448,997 352,805 321,619 47,987 192,980 316,298 - 544,005 41,840 1,421,436 2,328,849 787,122 465,674 8,938,673 Vehicles & Machinery - 1,429,460 627,932 735,847 757,657 777,934 730,691 943,929 428,605 510,096 428,859 1,719,323 434,289 960,900 1,182,237 519,940 1,708,446 1,742,898 1,238,254 1,526,364 1,209,762 19,613,424 Equipment - - 125 349 233 773 230 010 144 310 560 387 516 739 393 014 206 145 95 733 - 168 459 363 144 309 114 193 941 753 114 694 454 528 178 277 042 128 658 5 921 565Equipment 125,349 233,773 230,010 144,310 560,387 516,739 393,014 206,145 95,733 168,459 363,144 309,114 193,941 753,114 694,454 528,178 277,042 128,658 5,921,565

Figure E‐1T S d A

Figure E‐2Tax Supported AssetsTax Supported Assets

Scenario 1 ‐ Replacement Year Based PSAB 3150 Data 10,000,000

Tax Supported AssetsScenario 2 ‐ Replacement Year Based Informed Condition Analysis

50,000,000

60,000,000

8,000,000

9,000,000

40,000,000

Cost (Inflated)

6,000,000

7,000,000

Cost (Inflated)

30,000,000

ure Replacement C

Equipment


Buildings

4,000,000

5,000,000

ure Replacement C

Equipment


Buildings

10,000,000

20,000,000 Fut Buildings

Storm Sewer

Sidewalks

Bridges & Culverts

Road Surface

2,000,000

3,000,000 Fut Buildings

Storm Sewer

Sidewalks

Bridges & Culverts

Road Surface

‐

Road ‐ Surface

Road ‐ Base

‐

1,000,000 Road ‐ Surface

Road ‐ Base

Year of Replacement Year of Replacement

Watson & Associates Economists Ltd. H:\Middlesex Centre\2013 AM\Middlesex Centre Asset Inventory FINAL.xlsx

E-1

I di t



Scheduled Capital Replacement - Water Assets - Inflated

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated - - - - - - - - - - - - - - - - - - - 1,619,221 - 1,758,085

Water Mains - - - - - - - - - - - - - - - - - - - - - - Fire Hydrants - - - - - - - - - - - - - - - - - - - - - - Water Facilities - - - - - - - - - - - - - - - - - - - 1,619,221 - 1,619,221 Vehicles 27 437 31 807 36 873 42 746 138 864Vehicles - - - - 27,437 - - - - 31,807 - - - - 36,873 - - - - 42,746 - 138,864

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated - - 169,744 - - 184,957 190,506 - - - 492,957 618,249 486,674 250,637 306,299 90,063 252,741 - 822,713 - - 3,974,477

Table E-4Replacement Year Based on Scenario 2

Water Mains - - - - - - - - - - - - - - - - - - - - - - Fire Hydrants - - - - - - - - - - - - - - - - - - - - - - Water Facilities - - 169,744 - - 184,957 190,506 - - - 492,957 618,249 486,674 250,637 306,299 90,063 252,741 - 822,713 - - 3,865,540 Vehicles - - - - - - 29,108 - - - - - - 35,799 - - - - - - 44,029 108,936

Figure E‐3 Figure E‐4

1,800,000

Water AssetsScenario 1 ‐Replacement Year Based PSAB 3150 Data

1,800,000

Water AssetsScenario 2 ‐Replacement Year Based Informed Condition Analysis

1,400,000

1,600,000

1,400,000

1,600,000

1,000,000

1,200,000

t Cost (Inflated)

1,000,000

1,200,000

Cost (Inlfated)

600,000

800,000

uture Replacement

Vehicles

Water Facilities

Fire Hydrants

Water Mains 600,000

800,000

ture Replacement

Vehicles

Water Facilities

Fire Hydrants

Water Mains

200 000

400,000

Fu

Water Mains

200,000

400,000

Fut Water Mains

‐

200,000

0

,

Year of ReplacementYear of Replacement


E-2


Scheduled Capital Replacement - Wastewater Assets - Inflated

Table E-5Replacement Year Based on Scenario 1

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated - - - - - - - - - - - - - - - - - - - 8,248,275 - 8,248,275

Wastewater Mains - - - - - - - - - - - - - - - - - - - - - - Wastewater Facilities - - - - - - - - - - - - - - - - - - - 8,248,275 - 8,248,275

Table E-6

Asset TypeImmediate

Needs2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TOTAL

Total Scheduled Capital - Inflated - - - 434,283 397,610 - 421,825 504,551 499,697 - - - 656,666 1,352,732 534,355 - 1,401,139 21,182 2,972,936 3,126,701 4,155,898 16,479,576

Wastewater Mains - - - - - - - - - - - - - - - - - - - - - - Wastewater Facilities - - - 434 283 397 610 - 421 825 504 551 499 697 - - - 656 666 1 352 732 534 355 - 1 401 139 21 182 2 972 936 3 126 701 4 155 898 16 479 576


Wastewater Facilities - - - 434,283 397,610 - 421,825 504,551 499,697 - - - 656,666 1,352,732 534,355 - 1,401,139 21,182 2,972,936 3,126,701 4,155,898 16,479,576

Figure E‐5 Figure E‐6

9,000,000

Wastewater AssetsScenario 1 ‐ Replacement Year Based on PSAB 3150 Data

9,000,000

Wastewater AssetsScenario 2 ‐ Replacement Year Based on Informed Condition Analysis

7,000,000

8,000,000

7,000,000

8,000,000

5,000,000

6,000,000

nt Cost (Inflated)

5,000,000

6,000,000

Cost (Inlfated)

3 000 000

4,000,000

5,000,000

uture Replacemen

3,000,000

4,000,000

ure Replacement C

2,000,000

3,000,000 Fu

W t t F iliti 1 000 000

2,000,000

, ,

Futu

W F ili i

‐

1,000,000 Wastewater Facilities

Wastewater Mains

0

1,000,000 Wastewater Facilities

Wastewater Mains

Year of ReplacementYear of Replacement


E-3


APPENDIX F

TAX SUPPORTED ASSET MANAGEMENT STRATEGY &

FINANCING STRATEGY

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Growth Projects (DC)

Protection - FireColdstream Fire Hall Relocation/Expansion 1,000,000 1,000,000

Parks and RecreationParkland Development 587,050 117,410 117,410 117,410 117,410 117,410

LibrariesDelaware Library (Replacement & Expansion) - (1,500 sq. ft.) 250,000 250,000

AdministrationDevelopment Charge Study 120,000 30,000 30,000 30,000 30,000 Official Plan Review 60,000 15,000 15,000 15,000 15,000 Zoning Bylaw Review 40,000 10,000 10,000 10,000 10,000

Roads and RelatedRoads - Delaware

Martin Rd (Longwoods to Harris) 930,496 930,496 Harris Rd (Victoria to Martin) 875,346 875,346 Harris Rd (Martin to Carriage) 182,585 182,585

Roads - Ilderton

George St and King St Intersection 36,457 36,457 Hyde Park Rd 215,119 215,119 Meadow Creek Road 44,446 44,446

Roads - Komoka

Oxbow Dr E Urban (Komoka Rd to Valley View) 592,747 592,747 Queen St (Oxbow ro CN Tracks) 1,187,846 1,187,846 Queen St (CN Tracks to CP Tracks) 612,433 612,433 Queen St (CP Tracks to Glendon) 639,709 639,709

Roads - Allowance for Studies 160,000 40,000 40,000 40,000 40,000 Boom Truck 130,000 130,000 New Tandem Truck 290,000 290,000 Rolling Stock Allowance for 2015-19 400,000 80,000 80,000 80,000 80,000 80,000

Total Capital Expenditures 8,354,234 1,450,000 742,193 1,010,496 1,112,756 412,529 1,451,714 1,004,843 797,119 - - 30,000 65,000 182,585 - - 70,000 25,000 - - -

Capital FinancingProvincial/Federal Grants - - - - - - - - - - - - - - - - - - - - - Developer Contributions - - - - - - - - - - - - - - - - - - - - - Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Non-Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Development Charges Reserve Fund 4,924,843 291,600 329,522 841,321 940,113 349,676 777,814 626,064 439,935 - - 27,000 59,800 155,197 - - 67,000 19,800 - - - Tax Supported Capital Reserve Fund 3,429,392 1,158,400 412,671 169,174 172,643 62,853 673,900 378,779 357,184 - - 3,000 5,200 27,388 - - 3,000 5,200 - - - Lifecycle Reserve Fund - - - - - - - - - - - - - - - - - - - - -

Total Capital Financing 8,354,234 1,450,000 742,193 1,010,496 1,112,756 412,529 1,451,714 1,004,843 797,119 - - 30,000 65,000 182,585 - - 70,000 25,000 - - -

Description TotalForecast


Table F-1Tax Supported Expansion Projects - Uninflated


F-1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Prior Capital Expenses

Protection Services 249,007 81 550,000 - - - - - - - - - - - - - - - - - - - - Transportation Services 4,614,935 377,125 2,591,950 - - - - - - - - - - - - - - - - - - - - Parks and Recreation Services 15,948,679 79,019 440,000 - - - - - - - - - - - - - - - - - - - -

Capital Replacement Forecast

Road - Base 751,507 869,105 497,514 978,500 399,894 1,408,239 1,270,255 1,411,857 1,405,375 1,516,751 1,535,496 1,502,410 1,592,831 1,761,848 1,718,933 2,091,210 1,847,126 2,343,604 2,207,283 2,302,404 Road - Surface 532,251 825,770 1,090,439 851,583 1,245,510 1,435,733 1,328,041 2,093,893 1,914,620 2,049,284 2,031,499 1,966,099 2,100,693 1,475,243 2,485,721 834,261 968,673 1,183,644 1,355,614 1,685,078 Bridges & Culverts 580,000 730,000 640,000 800,000 420,000 683,587 405,044 187,153 - 664,592 264,155 276,468 694,578 780,594 1,013,407 1,022,406 756,317 1,091,657 991,277 1,100,695 Sidewalks 46,599 55,244 57,417 60,980 63,597 62,302 64,724 63,539 68,551 71,748 72,226 75,061 77,238 80,385 89,713 94,511 81,834 86,382 92,957 100,416 Storm Sewer - 153,234 - - 48,478 - - - - - - - - - - - - - - - Buildings & Fixtures - 195,225 392,421 - 532,410 232,637 316,369 448,997 352,805 321,619 47,987 192,980 316,298 - 544,005 41,840 1,421,436 2,328,849 787,122 465,674 Vehicles & Machinery 1,429,460 627,932 735,847 757,657 777,934 730,691 943,929 428,605 510,096 428,859 1,719,323 434,289 960,900 1,182,237 519,940 1,708,446 1,742,898 1,238,254 1,526,364 1,209,762 Equipment - 125,349 233,773 230,010 144,310 560,387 516,739 393,014 206,145 95,733 - 168,459 363,144 309,114 193,941 753,114 694,454 528,178 277,042 128,658

Level of Service Adjustments

Rehabilitation and Renewal Works 1,163,900 1,653,413 1,835,781 483,968 510,081 525,383 541,145 557,379 574,100 591,323 609,062 627,335 646,155 665,539 685,506 706,071 727,253 749,071 771,543 794,689 Capital Expansion Forecast

Expansion Projects 1,493,500 787,392 1,104,196 1,252,417 478,234 1,733,422 1,235,830 1,009,767 - - 41,527 92,674 268,132 - - 112,329 41,321 - - -


Financing Strategy

Table F-2

Tax Supported Capital Forecast

DescriptionForecast Actual

2011 Actual 2012

Budget2013

Total Expenditures 20,812,621 456,225 3,581,950 5,997,217 6,022,666 6,587,390 5,415,116 4,620,449 7,372,380 6,622,077 6,594,202 5,031,692 5,739,910 6,321,275 5,335,775 7,019,969 6,254,961 7,251,164 7,364,187 8,281,313 9,549,638 8,009,202 7,787,376

Capital Financing

Provincial/Federal Grants 10,844,262 - 30,000 - - - - - - - - - - - - - - - - - - - - Non-Growth Related Debentures - 7,431,136 - - 2,500,000 2,500,000 1,000,000 300,000 2,000,000 1,200,000 900,000 - - - - - - - - - - - - Growth Related Debentures - 3,183,383 - - - - 400,000 - 200,000 150,000 - - - - - - - - - - - - - Reserve Fund: Development Charges 2,529,395 93,028 368,813 300,348 349,590 919,334 658,106 405,371 728,751 619,980 557,297 - - 37,374 85,261 227,912 - - 107,515 32,726 - - - Reserve Fund: Gas Tax 502,715 107,474 1,546,400 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 Reserve Fund: Park-in-Lieu 72,964 12,162 100,000 - - - - - - - - - - - - - - - - - - - - Reserve/Reserve Fund: Other 602,384 1,797,484 1,091,137 - - - - - - - - - - - - - - - - - - - - Other (Donations) 84,746 - 108,750 - - - - - - - - - - - - - - - - - - - - Developer Contributions 7,096,676 542,000 - - - - - - - - - - - - - - - - - - - - - Transfer from Operating 812,604 - 336,850 - - - - - - - - - - - - - - - - - - - - Reserve Fund: New Capital - - - 5,217,369 2,693,576 2,688,555 2,877,510 3,435,578 3,964,130 4,172,597 4,657,405 4,552,192 5,260,410 5,804,401 4,771,014 6,312,557 5,775,461 6,771,664 6,777,172 7,769,086 9,070,138 7,529,702 7,307,876

Total Capital Financing 22,545,746 13,166,668 3,581,950 5,997,217 6,022,666 6,587,389 5,415,116 4,620,449 7,372,380 6,622,077 6,594,202 5,031,692 5,739,910 6,321,275 5,335,775 7,019,969 6,254,961 7,251,164 7,364,187 8,281,313 9,549,638 8,009,202 7,787,376

Total Capital Expenses less Capital Financing (1,733,125) (12,710,443) - - - - - - - - - - - - - - - - - - - - -


F-2


Financing Strategy

Non-Growth Related Debt Principal

Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget2013 - - - - - - - - - - - - - - - - - - - - -

2014 - - - - - - - - - - - - - - - - - - - -

2015 2,500,000 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606

2016 2,500,000 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606 200,606

2017 1,000,000 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243 80,243

2018 300,000 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073

2019 2,000,000 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485 160,485

2020 1,200,000 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291 96,291

2021 900,000 72,218 72,218 72,218 72,218 72,218 72,218 72,218 72,218 72,218 72,218 72,218 72,218

2022 - - - - - - - - - - - -

2023 - - - - - - - - - - -

2024 - - - - - - - - - -

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031

Table F-3Debt Requirements

Forecast

2031 - - -

2032 - -

2033 - -

Total Annual Non-Growth Related Debt Charges 10,400,000 - - 200,606 401,213 481,456 505,528 666,013 762,305 834,523 834,523 834,523 834,523 834,523 834,523 834,523 834,523 834,523 834,523 834,523 834,523

Growth Related Debt Principal

Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget2013 - - - - - - - - - - - - - - - - - - - - -

2014 - - - - - - - - - - - - - - - - - - - -

2015 - - - - - - - - - - - - - - - - - - -

2016 - - - - - - - - - - - - - - - - - -

2017 400,000 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097 32,097

2018 - - - - - - - - - - - - - - - -

2019 200,000 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049 16,049

2020 150,000 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036 12,036

2021 - - - - - - - - - - - - -

2022 - - - - - - - - - - - - -

2023 - - - - - - - - - - - -

2024 - - - - - - - - - -

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031 - - -

2032

Forecast

2032 - -

2033 - -

Total Annual Growth Related Debt Charges 750,000 - - - - 32,097 32,097 48,146 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182 60,182

Development Charges Reserve Fund (All Tax Supported Funds) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance 115,905 315,918 481,159 102,006 10,241 166,103 26,427 37,461 129,931 811,447 1,525,699 2,236,325 2,933,853 3,524,586 4,380,184 5,273,864 6,099,265 7,039,881 8,054,867 9,112,752

Development Charge Proceeds 723,481 737,950 752,709 767,763 783,119 798,781 843,452 860,321 877,527 895,078 912,979 931,239 949,864 968,861 988,238 1,008,003 1,028,163 1,048,726 1,069,701 1,091,095

Transfer to Capital 300,348 349,590 919,334 658,106 405,371 728,751 619,980 557,297 - - 37,374 85,261 227,912 - - 107,515 32,726 - - -

Transfer to Operating (Debenture Payments) 245,100 245,100 245,100 245,100 277,197 277,197 293,246 305,282 305,282 305,282 305,282 305,282 305,282 305,282 305,282 305,282 305,282 305,282 305,282 229,282

Interest Earned 21,980 21,980 32,572 43,677 55,311 67,491 80,808 94,728 109,271 124,456 140,303 156,832 174,064 192,020 210,723 230,196 250,461 271,543 293,466 317,775

Closing Balance 315,918 481,159 102,006 10,241 166,103 26,427 37,461 129,931 811,447 1,525,699 2,236,325 2,933,853 3,524,586 4,380,184 5,273,864 6,099,265 7,039,881 8,054,867 9,112,752 10,292,339

Required from Development Charges 300,348 349,590 919,334 1,058,106 405,371 928,751 769,980 557,297 - - 37,374 85,261 227,912 - - 107,515 32,726 - - -

Required Debenture Funding 400,000 200,000 150,000

Gas Tax Reserve Funds 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance 418,037 426,398 434,926 443,624 452,497 461,546 470,777 480,193 489,797 499,593 509,585 519,776 530,172 540,775 551,591 562,623 573,875 585,353 597,060 609,001

Transfers From Operating/Capital 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500

Transfer to Capital 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500

Transfer to Operating - - - - - - - - - - - - - - - - - - - -

Interest Earned 8,361 8,528 8,699 8,872 9,050 9,231 9,416 9,604 9,796 9,992 10,192 10,396 10,603 10,816 11,032 11,252 11,478 11,707 11,941 12,180

Closing Balance 426,398 434,926 443,624 452,497 461,546 470,777 480,193 489,797 499,593 509,585 519,776 530,172 540,775 551,591 562,623 573,875 585,353 597,060 609,001 621,181

Table F-4

Forecast

Forecast

Reserve and Reserve Fund Continuity Schedules

Capital Reserve/Reserve Funds (All Tax Supported) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance 4,491,478 1,389,683 1,221,198 1,315,379 1,472,926 1,433,726 1,344,421 1,406,427 1,445,196 2,134,143 2,768,427 3,113,760 4,911,792 5,513,516 7,027,922 7,922,029 9,207,022 9,898,333 9,683,000 11,456,045

Transfers From Operating/Capital 2,257,426 2,670,245 2,926,045 3,175,276 3,537,366 4,017,563 4,376,126 4,836,937 5,368,393 6,009,511 6,257,779 6,641,837 6,975,272 7,321,164 7,679,538 8,050,735 8,435,412 8,834,043 9,247,219 9,850,571

Transfer to Capital 5,217,369 2,693,576 2,688,555 2,877,510 3,435,578 3,964,130 4,172,597 4,657,405 4,552,192 5,260,410 5,804,401 4,771,014 6,312,557 5,775,461 6,771,664 6,777,172 7,769,086 9,070,138 7,529,702 7,307,876

Transfer to Operating 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100 169,100

Interest Earned 27,249 23,945 25,792 28,881 28,112 26,361 27,577 28,337 41,846 54,283 61,054 96,310 108,108 137,802 155,334 180,530 194,085 189,863 224,628 276,593

Closing Balance 1,389,683 1,221,198 1,315,379 1,472,926 1,433,726 1,344,421 1,406,427 1,445,196 2,134,143 2,768,427 3,113,760 4,911,792 5,513,516 7,027,922 7,922,029 9,207,022 9,898,333 9,683,000 11,456,045 14,106,233

Note: Closing reserve fund balance as a percentage of capital asset balance 0.47% 0.40% 0.42% 0.46% 0.43% 0.39% 0.40% 0.40% 0.57% 0.72% 0.79% 1.20% 1.31% 1.62% 1.78% 2.01% 2.09% 1.99% 2.28% 2.73%

Forecast


F-3


Financing Strategy

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Administration (1,125,390) (868,257) (975,944) (954,000) (931,900) (909,300) (886,200) (862,700) (838,800) (814,400) (789,500) (764,100) (738,200) (711,800) (684,900) (657,300) (629,300) (600,700) (571,500) (541,700) (511,400) (480,400) (448,900) Protection Services 2,931,919 3,293,595 3,331,712 3,347,400 3,414,400 3,482,700 3,552,300 3,623,300 3,695,700 3,769,600 3,844,900 3,921,800 4,000,200 4,080,200 4,161,800 4,245,100 4,330,000 4,416,600 4,504,900 4,595,000 4,686,900 4,780,600 4,876,200 Transportation Services 5,122,242 4,649,479 4,739,355 4,835,700 4,933,900 5,034,100 5,136,300 5,240,500 5,346,800 5,455,200 5,565,800 5,678,600 5,793,700 5,911,100 6,030,900 6,153,100 6,277,700 6,404,800 6,534,500 6,666,800 6,801,700 6,939,200 7,155,500 Environmental Services 298,010 461,443 509,600 519,800 530,200 540,800 551,600 562,700 573,900 585,400 597,100 609,100 621,300 633,700 646,400 659,300 672,500 685,900 699,700 713,700 728,000 742,600 757,400 Health Services 22,244 6,033 11,000 11,300 11,500 11,700 11,900 12,100 12,300 12,500 12,700 12,900 13,100 13,300 13,500 13,700 13,900 14,100 14,300 14,600 14,900 15,200 15,500 Recreation/Cultural Services 923,032 760,091 549,024 502,300 515,800 529,600 543,600 557,900 572,500 587,500 602,700 618,300 634,200 650,400 666,900 683,700 700,800 718,300 736,200 754,400 773,000 791,900 811,300 Planning and Development 350,391 193,803 236,785 241,500 246,300 251,200 256,200 261,300 266,500 271,800 277,300 282,800 288,500 294,300 300,100 306,100 312,200 318,500 324,900 331,400 338,100 344,900 351,800 Other Revenues (85,496) (73,536) (165,136) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100) (165,100)

Net Expenditures due to Level of Service Adjustments - - - 24,480 6,242 - - - - - - - - 62,169 - - - - - - - - -

Transfers to Reserve FundsTransfer to Gas Tax Reserve Fund 493,719 492,592 479,518 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 479,500 Transfers to Reserves and Reserve Funds (Capital Related) 214,074 1,590,432 1,465,000 - - - - - - - - - - - - - - - - - - - -

Consolidated Tax Supported Capital Reserve Fund - - - 2,257,426 2,670,245 2,926,045 3,175,276 3,537,366 4,017,563 4,376,126 4,836,937 5,368,393 6,009,511 6,257,779 6,641,837 6,975,272 7,321,164 7,679,538 8,050,735 8,435,412 8,834,043 9,247,219 9,850,571 Transfer to Capital - - 336,850 - - - - - - - - - - - - - - - - - - - - Debentures

N D bt P t 200 606 401 213 513 553 537 625 714 159 822 487 894 705 894 705 894 705 894 705 894 705 894 705 894 705 894 705 894 705 894 705 894 705 894 705

Actual 2011

Actual 2012

Budget2013

Table F-5Tax Supported Operating Budget Forecast Summary

Net Impact on TaxationForecast

New Debt Payments - - - - - 200,606 401,213 513,553 537,625 714,159 822,487 894,705 894,705 894,705 894,705 894,705 894,705 894,705 894,705 894,705 894,705 894,705 894,705 Existing Debt Payments 32,672 251,087 849,995 834,026 818,056 771,749 752,592 737,017 721,505 706,278 690,117 674,111 657,333 641,682 626,032 610,382 594,731 579,081 563,430 547,780 532,130 516,479 249,607

Prior Year Surplus Adjustment 689,664 (263,290) - - - - - - - - - - - - - - - - - - - - -

Total Taxation Levy 9,867,080 10,493,473 11,367,759 11,934,332 12,529,143 13,153,601 13,809,181 14,497,435 15,219,993 15,978,563 16,774,940 17,611,009 18,488,749 19,041,935 19,611,674 20,198,458 20,802,800 21,425,224 22,066,270 22,726,497 23,406,478 24,106,803 24,828,083

Taxation Levy AnalysisPrior Year Taxation Levy 9,067,199 9,867,080 10,493,473 11,367,759 11,934,332 12,529,143 13,153,601 13,809,181 14,497,435 15,219,993 15,978,563 16,774,940 17,611,009 18,488,749 19,041,935 19,611,674 20,198,458 20,802,800 21,425,224 22,066,270 22,726,497 23,406,478 24,106,803 Add: Provision for Assessment Growth (see below) - - - 113,678 119,343 125,291 131,536 138,092 144,974 152,200 159,786 167,749 176,110 184,887 190,419 196,117 201,985 208,028 214,252 220,663 227,265 234,065 241,068

Current Year Taxation Levy at 0.0% Increase 9,067,199 9,867,080 10,493,473 11,481,437 12,053,675 12,654,435 13,285,137 13,947,273 14,642,410 15,372,193 16,138,349 16,942,690 17,787,119 18,673,636 19,232,354 19,807,791 20,400,443 21,010,828 21,639,476 22,286,933 22,953,762 23,640,542 24,347,871 Additional Increase in Taxation Levy for the year 799,881 626,393 874,286 452,895 475,468 499,166 524,044 550,163 577,584 606,370 636,591 668,320 701,629 368,299 379,319 390,668 402,357 414,396 426,794 439,564 452,716 466,261 480,212 Total Taxation Levy 9,867,080 10,493,473 11,367,759 11,934,332 12,529,143 13,153,601 13,809,181 14,497,435 15,219,993 15,978,563 16,774,940 17,611,009 18,488,749 19,041,935 19,611,674 20,198,458 20,802,800 21,425,224 22,066,270 22,726,497 23,406,478 24,106,803 24,828,083

Percentage Increase (Factoring in Assessment Growth) 8.82% 6.35% 8.33% 3.94% 3.94% 3.94% 3.94% 3.94% 3.94% 3.94% 3.94% 3.94% 3.94% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97% 1.97%

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033Assessment Growth Estimate (%) 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Forecast

$10,000,000

$12,000,000


$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033



F-4


APPENDIX G

WATER ASSET MANAGEMENT STRATEGY & FINANCING

STRATEGY

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033


Komoka-KilworthQueen Street/Glendon Drive - Water main 150,000 150,000 Komoka B.P.S. Upgrades 291,000 291,000

DelawareNew Supply 6,751,500 315,000 4,725,000 1,680,000 31,500

IldertonAdditional Water Storage 3,150,000 3,150,000

Study Costs 500,000 - - - 125,000 - - - - 125,000 - - - - 125,000 - - - - 125,000 -

Total Capital Expenditures 10,842,500 3,150,000 606,000 4,725,000 1,805,000 31,500 150,000 - - 125,000 - - - - 125,000 - - - - 125,000 -

Capital FinancingProvincial/Federal Grants - - - - - - - - - - - - - - - - - - - - - Developer Contributions - - - - - - - - - - - - - - - - - - - - - Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Non-Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Development Charges Reserve Fund 4,999,699 828,450 302,999 2,362,500 965,000 15,750 150,000 - - 125,000 - - - - 125,000 - - - - 125,000 - Water Rate Supported Capital Reserve Fund 5,842,801 2,321,550 303,001 2,362,500 840,000 15,750 - - - - - - - - - - - - - - - Lifecycle Reserve Fund - - - - - - - - - - - - - - - - - - - - -

Total Capital Financing 10,842,500 3,150,000 606,000 4,725,000 1,805,000 31,500 150,000 - - 125,000 - - - - 125,000 - - - - 125,000 -



Table G-1Water Expansion Projects - Uninflated


G-1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033


Waterworks Expenditures 1,575,512 306,523 427,500 - - - - - - - - - - - - - - - - - - - - Capital Replacement Forecast

Water Mains - - - - - - - - - - - - - - - - - - - - Fire Hydrants - - - - - - - - - - - - - - - - - - - - Water Facilities - 169,744 - - 184,957 190,506 - - - 492,957 618,249 486,674 250,637 306,299 90,063 252,741 - 822,713 - - Vehicles - - - - - 29,108 - - - - - - 35,799 - - - - - - 44,029


Rehabilitation and Renewal Works 82,400 201,571 1,715,581 213,847 382,560 477,621 491,950 506,708 521,909 537,567 553,694 570,304 587,413 605,036 623,187 641,883 661,139 680,973 701,402 722,444 Capital Expansion Forecast

Komoka/Kilworth 3,244,500 642,905 5,163,135 2,031,543 36,517 179,108 - - 163,097 - - - - 189,074 - - - - 219,188 -

Total Expenditures 1,575,512 306,523 427,500 3,326,900 1,014,220 6,878,716 2,245,390 604,034 876,343 491,950 506,708 685,006 1,030,524 1,171,943 1,056,978 873,849 1,100,409 713,250 894,624 661,139 1,503,686 920,590 766,473

Capital Financing

Provincial/Federal Grants - - - 2,000,000 - 2,000,000 - - - - - - - - - - - - - - - - - Non-Growth Related Debentures 2,583,114 - - 300,000 - 1,400,000 - - - - - - - - - - - - - - - - - Growth Related Debentures 1,905,733 - - 432,000 154,000 2,415,000 1,086,116 100,000 230,000 - - - - - - - - - - - - - - Reserve Fund: Development Charges 22,787 - 427,500 421,304 167,452 166,568 0 (81,741) (50,892) - - 163,097 - - - - 189,074 - - - - 219,188 -

Table G-2

Water Capital Forecast


Actual 2012

Budget2013

Forecast


Financing Strategy

Reserve Fund: New Capital - - 173,597 692,769 897,149 1,159,274 585,776 697,235 491,950 506,708 521,909 1,030,524 1,171,943 1,056,978 873,849 911,335 713,250 894,624 661,139 1,503,686 701,402 766,473

Total Capital Financing 4,511,634 - 427,500 3,326,900 1,014,220 6,878,716 2,245,390 604,034 876,343 491,950 506,708 685,006 1,030,524 1,171,943 1,056,978 873,849 1,100,409 713,250 894,624 661,139 1,503,686 920,590 766,473

Total Capital Expenses less Capital Financing (2,936,122) 306,523 - - - - - - - - - - - - - - - - - - - - -


G-2


Financing Strategy


Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget2013 - - - - - - - - - - - - - - - - - - - - -

2014 300,000 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073 24,073

2015 - - - - - - - - - - - - - - - - - - -

2016 1,400,000 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340 112,340

2017 - - - - - - - - - - - - - - - - -

2018 - - - - - - - - - - - - - - - -

2019 - - - - - - - - - - - - - - -

2020 - - - - - - - - - - - - - -

2021 - - - - - - - - - - - - -

2022 - - - - - - - - - - - -

2023 - - - - - - - - - - -

2024 - - - - - - - - - -

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031

Forecast

Table G-3Debt Requirements

2031 - - -

2032 - -

2033 - -

Total Annual Non-Growth Related Debt Charges 1,700,000 - 24,073 24,073 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412 136,412


Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget2013 - - - - - - - - - - - - - - - - - - - - -

2014 432,000 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665 34,665

2015 154,000 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357 12,357

2016 2,415,000 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786 193,786

2017 1,086,116 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153 87,153

2018 100,000 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024

2019 230,000 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456 18,456

2020 - - - - - - - - - - - - - -

2021 - - - - - - - - - - - - -

2022 - - - - - - - - - - - - -

2023 - - - - - - - - - - - -

2024 - - - - - - - - - -

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031 - - -

2032

Forecast

2032 - -

2033 - -

Total Annual Growth Related Debt Charges 4,417,116 - 34,665 47,022 240,808 327,961 335,985 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441 354,441

Development Charges Reserve Fund (All Water Funds) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance 236,549 253 507 7,294 5,530 17,701 11,046 182,544 380,670 443,206 697,246 980,619 1,294,276 1,639,197 1,827,313 2,237,804 2,682,657 3,162,964 3,679,844 4,205,560

Development Charge Proceeds 363,422 370,691 378,104 385,667 393,380 401,247 635,431 648,139 661,102 674,324 687,811 701,567 715,598 729,910 744,508 759,399 774,586 790,078 805,880 821,997

Transfer to Capital 421,304 167,452 166,568 0 (81,741) (50,892) - - 163,097 - - - - 189,074 - - - - 219,188 -

Transfer to Other


Interest Earned 11,886 21,980 32,572 43,677 55,311 67,491 80,808 94,728 109,271 124,456 140,303 156,832 174,064 192,020 210,723 230,196 250,461 271,543 293,466 317,775

Closing Balance 253 507 7,294 5,530 17,701 11,046 182,544 380,670 443,206 697,246 980,619 1,294,276 1,639,197 1,827,313 2,237,804 2,682,657 3,162,964 3,679,844 4,205,560 4,990,892

Required from Development Charges 853,304 321,452 2,581,568 1,086,116 18,259 179,108 - - 163,097 - - - - 189,074 - - - - 219,188 -

Required Debenture Funding 432,000 154,000 2,415,000 1,086,116 100,000 230,000

Capital Reserve/Reserve Funds (Water) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance (80,769) 14,848 (1,171) 48,721 20,213 672,398 1,302,922 2,235,633 3,254,556 4,363,973 5,065,162 5,727,360 6,614,279 7,803,143 9,078,186 10,684,666 12,245,544 14,186,580 15,421,481 17,650,348

Transfers From Operating/Capital 459,222 867,073 1,136,385 1,320,670 1,415,077 1,492,512 1,571,125 1,652,116 1,736,058 1,822,696 1,912,140 2,004,505 2,100,010 2,198,675 2,300,527 2,405,693 2,514,307 2,626,505 2,584,183 2,695,528

Transfer to Capital 173,597 692,769 897,149 1,159,274 585,776 697,235 491,950 506,708 521,909 1,030,524 1,171,943 1,056,978 873,849 911,335 713,250 894,624 661,139 1,503,686 701,402 766,473

Transfer to Other - - - - - - - - - - - - - - - - - - - -

Transfer to Operating 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 190,300 - -

Interest Earned 291 (23) 955 396 13,184 25,547 43,836 63,815 85,568 99,317 112,301 129,692 153,003 178,004 209,503 240,109 278,168 302,382 346,085 391,588

Table G-4Reserve and Reserve Fund Continuity Schedules

Forecast

Forecast

Closing Balance 14,848 (1,171) 48,721 20,213 672,398 1,302,922 2,235,633 3,254,556 4,363,973 5,065,162 5,727,360 6,614,279 7,803,143 9,078,186 10,684,666 12,245,544 14,186,580 15,421,481 17,650,348 19,970,991

Note: Closing reserve fund balance as a percentage of capital asset balance 0.04% 0.00% 0.12% 0.05% 1.56% 2.94% 4.90% 6.92% 9.01% 10.15% 11.14% 12.50% 14.31% 16.17% 18.47% 20.55% 23.12% 24.40% 27.11% 29.78%


G-3


Financing Strategy

2011 2012 2013

Actual Actual Budget 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Net Expenditures - Water Works 1,613,950 1,740,605 2,023,400 2,063,800 1,914,700 1,956,800 1,999,700 2,043,500 2,088,200 2,133,800 2,180,300 2,227,700 2,276,100 2,325,500 2,375,900 2,427,200 2,479,500 2,532,900 2,587,400 2,643,000 2,699,700 2,947,800 3,006,800

Level of Service Adjustments - Net Expenditures - - - - - - - - - - - - - - - - - - - - - - -

Water Capital Reserve Fund - Historical Transfers - 274,787 198,701 - - - - - - - - - - - - - - - - - - - -

Water Capital Reserve Fund - Future Transfers - - - 459,222 867,073 1,136,385 1,320,670 1,415,077 1,492,512 1,571,125 1,652,116 1,736,058 1,822,696 1,912,140 2,004,505 2,100,010 2,198,675 2,300,527 2,405,693 2,514,307 2,626,505 2,584,183 2,695,528

DebenturesNew Debt - - - - 58,738 71,095 377,220 464,373 472,397 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 490,853 Existing Debt Payments 69,715 460,629 449,756 397,465 388,131 377,604 369,105 340,154 330,558 322,266 314,180 305,830 297,481 289,134 280,787 272,439 264,092 255,745 247,397 239,050 230,703 - - Transfer from Reserve Fund: Development Charges (Debt) (718,788) (195,559) (190,258) (190,300) (224,965) (237,322) (431,108) (518,261) (526,285) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (544,741) (354,441) (354,441)

Prior Year Surplus Adjustment 609,400 (100) - - - - - - - - - - - - - - - - - - - - -

Total Water Revenue 1,574,277 2,280,362 2,481,599 2,730,187 3,003,676 3,304,562 3,635,587 3,744,843 3,857,382 3,973,303 4,092,708 4,215,701 4,342,390 4,472,886 4,607,304 4,745,762 4,888,379 5,035,284 5,186,603 5,342,469 5,503,020 5,668,395 5,838,740

Percentage Increase 10.0% 10.0% 10.0% 10.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Water Operating Budget Forecast SummaryTable G-5

Net Impact on Water RevenueForecast

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033




G-4


APPENDIX H

WASTEWATER ASSET MANAGEMENT STRATEGY &

FINANCING STRATEGY

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033


Komoka-KilworthHeadworks 1,346,000 1,346,000 Kilworth P.S. and Forcemain 2,300,000 300,000 2,000,000 Komoka Employment Lands P.S. and F.M. 1,500,000 1,500,000 Komoka P.S. Upgrades 150,000 150,000 Misc Storm and Sanitary Oversixing (Kilworth) 500,000 500,000

Ilderton

Timberwalk P.S. and Forcemain 2,000,000 2,000,000

Misc Storm and Sanitary Oversizing 500,000 500,000 Delaware

New System - Trunk Main, Pumping Station 18,475,000 575,000 8,400,000 9,500,000 Arva

Arva Wastewater Treatment Facility 2,000,000 - 2,000,000 Studies

Little Farm Trunk Sanitary Sewer EA 50,000 50,000 Komoka P.S. Upgrades 20,000 20,000 Arva Wastewater Treatment Plant EA 150,000 150,000

Total Capital Expenditures 28,991,000 300,000 2,170,000 575,000 8,400,000 9,500,000 1,346,000 2,050,000 500,000 150,000 2,000,000 2,000,000 - - - - - - - - -

Capital FinancingProvincial/Federal Grants - - - - - - - - - - - - - - - - - - - - - Developer Contributions - - - - - - - - - - - - - - - - - - - - - Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Non-Growth Related Debenture Requirements - - - - - - - - - - - - - - - - - - - - - Development Charges Reserve Fund 10,138,237 150,000 1,085,000 128,546 1,877,889 2,123,803 673,000 900,000 125,000 75,000 1,000,000 2,000,000 - - - - - - - - - WW Rate Supported Capital Reserve Fund 18,852,763 150,000 1,085,000 446,454 6,522,111 7,376,197 673,000 1,150,000 375,000 75,000 1,000,000 - - - - - - - - - - Lifecycle Reserve Fund - - - - - - - - - - - - - - - - - - - - -

Total Capital Financing 28,991,000 300,000 2,170,000 575,000 8,400,000 9,500,000 1,346,000 2,050,000 500,000 150,000 2,000,000 2,000,000 - - - - - - - - -



Table H-1Wastewater Expansion Projects - Uninflated


H-1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033


Wastewater Expenditures 7,491,369 25,710 1,389,500 - - - - - - - - - - - - - - - - - - - - Capital Replacement Forecast

Mains - - - - - - - - - - - - - - - - - - - - Facilities - - 434,283 397,610 - 421,825 504,551 499,697 - - - 656,666 1,352,732 534,355 - 1,401,139 21,182 2,972,936 3,126,701 4,155,898


Rehabilitation and Renewal Works - - - - - - - - - - - 427,728 440,560 453,777 467,390 481,412 495,854 510,730 526,052 541,833 Capital Expansion Forecast

Expansion Projects 309,000 2,302,153 628,318 9,454,274 11,013,104 1,607,194 2,521,241 633,385 195,716 2,687,833 2,768,468 - - - - - - - - -

Total Expenditures 7,491,369 25,710 1,389,500 309,000 2,302,153 1,062,601 9,851,884 11,013,104 2,029,019 3,025,792 1,133,082 195,716 2,687,833 2,768,468 1,084,394 1,793,292 988,132 467,390 1,882,551 517,036 3,483,666 3,652,753 4,697,731

Capital Financing

Provincial/Federal Grants - - - - - - - - - - - - - - - - - - - - - - - Non-Growth Related Debentures - - - - - - 6,750,000 7,600,000 350,000 580,000 - - - - - - - - - - - - - Growth Related Debentures 2,100,000 8,624,748 - - - 500,000 1,850,000 250,000 560,000 - - - 2,100,000 - - - - - - - - - Reserve Fund: Development Charges - - - 154,500 1,151,077 140,466 1,613,580 612,069 553,597 546,886 158,346 97,858 1,343,916 668,468 - - - - - - - - - Reserve Fund: Gas Tax - - - - - - - - - - - - - - - - - - - - - - - Reserve/Reserve Fund: Other 61 039 50 422 1 389 500 - - - - - - - - - - - - - - - - - - - -


Financing Strategy

Table H-2

Wastewater Capital Forecast


Actual 2012

Budget 2013

Forecast

Reserve/Reserve Fund: Other 61,039 50,422 1,389,500 Other Revenue (Developer Contribution) - - - - 1,000,000 - - - - - - - - - - - - - - - - - - Reserve Fund: New Capital - - 154,500 151,077 922,136 988,304 951,034 875,422 1,338,906 974,736 97,858 1,343,916 - 1,084,394 1,793,292 988,132 467,390 1,882,551 517,036 3,483,666 3,652,753 4,697,731

Total Capital Financing 2,161,039 8,675,170 1,389,500 309,000 2,302,153 1,062,601 9,851,884 11,013,104 2,029,019 3,025,792 1,133,082 195,716 2,687,833 2,768,468 1,084,394 1,793,292 988,132 467,390 1,882,551 517,036 3,483,666 3,652,753 4,697,731

Total Capital Expenses less Capital Financing 5,330,330 (8,649,460) - - - - - - - - - - - - - - - - - - - - -


H-2


Financing Strategy


Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget 2013 - - - - - - - - - - - - - - - - - - - - -

2014 - - - - - - - - - - - - - - - - - - - -

2015 - - - - - - - - - - - - - - - - - - -

2016 - - - - - - - - - - - - - - - - - -

2017 6,750,000 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637 541,637

2018 7,600,000 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844 609,844

2019 350,000 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085 28,085

2020 580,000 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541 46,541

2021 - - - - - - - - - - - - -

2022 - - - - - - - - - - - -

2023 - - - - - - - - - - -

2024 - - - - - - - - - -

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031

Forecast

Table H-3Debt Requirements

2031 - - -

2032 - -

2033 - -

Total Annual Non-Growth Related Debt Charges 15,280,000 - - - - 541,637 1,151,481 1,179,566 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107 1,226,107


Year (Inflated) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Budget 2013 - - - - - - - - - - - - - - - - - - - - -

2014 - - - - - - - - - - - - - - - - - - - -

2015 - - - - - - - - - - - - - - - - - - -

2016 - - - - - - - - - - - - - - - - - -

2017 500,000 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121 40,121

2018 1,850,000 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449 148,449

2019 250,000 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061 20,061

2020 560,000 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936 44,936

2021 - - - - - - - - - - - - -

2022 - - - - - - - - - - - - -

2023 - - - - - - - - - - - -

2024 2,100,000 168,509 168,509 168,509 168,509 168,509 168,509 168,509 168,509 168,509

2025 - - - - - - - - -

2026 - - - - - - - -

2027 - - - - - - -

2028 - - - - - -

2029 - - - - -

2030 - - - -

2031 - - -

2032

Forecast

2032 - -

2033 - -

Total Annual Growth Related Debt Charges 5,260,000 - - - - 40,121 188,570 208,631 253,567 253,567 253,567 253,567 422,076 422,076 422,076 422,076 422,076 422,076 422,076 422,076 422,076

Development Charges Reserve Fund (All Wastewater Funds) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance 645,341 1,052,030 491,487 971,782 10,095 41,860 16,664 6,928 376,281 842,660 100,599 72,718 584,665 1,137,651 1,732,878 2,371,578 3,055,015 3,784,488 4,561,328 5,386,902

Development Charge Proceeds 962,503 981,753 1,001,388 1,021,416 1,041,845 1,062,681 1,078,174 1,099,737 1,121,732 1,144,167 1,167,050 1,190,391 1,214,199 1,238,483 1,263,252 1,288,517 1,314,288 1,340,574 1,367,385 1,394,733

Transfer to Capital 154,500 1,151,077 140,466 1,613,580 612,069 553,597 546,886 158,346 97,858 1,343,916 668,468 - - - - - - - - -


Interest Earned 11,886 21,980 32,572 43,677 55,311 67,491 80,808 94,728 109,271 124,456 140,303 156,832 174,064 192,020 210,723 230,196 250,461 271,543 293,466 317,775

Closing Balance 1,052,030 491,487 971,782 10,095 41,860 16,664 6,928 376,281 842,660 100,599 72,718 584,665 1,137,651 1,732,878 2,371,578 3,055,015 3,784,488 4,561,328 5,386,902 6,264,134

Required from Development Charges 154,500 1,151,077 140,466 2,113,580 2,462,069 803,597 1,106,886 158,346 97,858 1,343,916 2,768,468 - - - - - - - - -

Required Debenture Funding 500,000 1,850,000 250,000 560,000 2,100,000

Capital Reserve/Reserve Funds (Wastewater) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Opening Balance (446,146) (376,718) 52,626 (21,894) 132,863 210,125 249,097 331,993 1,201,829 3,143,983 3,997,346 6,394,970 7,887,783 8,845,658 10,807,486 13,508,580 14,994,641 18,083,295 18,393,754 18,730,012

Transfers From Operating/Capital 231,314 579,389 848,045 1,140,456 1,024,176 909,510 1,415,292 1,821,007 1,978,365 2,118,900 2,272,233 2,422,544 2,577,723 2,738,049 2,903,610 3,074,599 3,251,115 3,433,463 3,621,756 3,816,313

Transfer to Capital 154,500 151,077 922,136 988,304 951,034 875,422 1,338,906 974,736 97,858 1,343,916 - 1,084,394 1,793,292 988,132 467,390 1,882,551 517,036 3,483,666 3,652,753 4,697,731

Transfer to Operating - - - - - - - - - - - - - - - - - - - -

Interest Earned (7,387) 1,032 (429) 2,605 4,120 4,884 6,510 23,565 61,647 78,379 125,392 154,662 173,444 211,911 264,874 294,013 354,574 360,662 367,255 356,972

Closing Balance (376,718) 52,626 (21,894) 132,863 210,125 249,097 331,993 1,201,829 3,143,983 3,997,346 6,394,970 7,887,783 8,845,658 10,807,486 13,508,580 14,994,641 18,083,295 18,393,754 18,730,012 18,205,566

Note: Closing reserve fund balance as a percentage of capital asset balance -0.45% 0.06% -0.02% 0.15% 0.22% 0.26% 0.33% 1.18% 2.99% 3.69% 5.73% 6.86% 7.47% 8.86% 10.75% 11.59% 13.57% 13.40% 13.25% 12.50%

Forecast

Reserve and Reserve Fund Continuity SchedulesTable H-4

Forecast


H-3


Financing Strategy

2011 2012 2013

Actual Actual Budget 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

Net Expenditures - Wastewater 1,255,085 1,283,759 1,342,700 1,369,600 1,397,000 1,424,900 1,453,400 1,482,400 1,512,000 1,542,300 1,573,100 1,604,600 1,636,700 1,669,500 1,702,900 1,737,000 1,771,700 1,807,100 1,843,200 1,880,100 1,917,700 1,956,100 1,995,200

Level of Service Adjustments - Net Expenditures - - - - - - - - - - - - - - - - - - - - - - -

Wastewater Capital Reserve Fund - Historical Transfers - 375,925 360,169 - - - - - - - - - - - - - - - - - - - -

Wastewater Capital Reserve Fund - Future Transfers - - - 231,314 579,389 848,045 1,140,456 1,024,176 909,510 1,415,292 1,821,007 1,978,365 2,118,900 2,272,233 2,422,544 2,577,723 2,738,049 2,903,610 3,074,599 3,251,115 3,433,463 3,621,756 3,816,313

DebenturesNew Debt - - - - - - - 581,759 1,340,051 1,388,197 1,479,673 1,479,673 1,479,673 1,479,673 1,648,183 1,648,183 1,648,183 1,648,183 1,648,183 1,648,183 1,648,183 1,648,183 1,648,183 Existing Debt Payments 579,637 491,312 813,125 1,142,918 1,019,932 1,003,221 992,471 881,876 738,102 596,216 581,189 547,950 535,993 515,760 503,340 490,921 478,501 466,081 453,662 441,242 428,822 416,403 403,983 Transfer from Reserve Fund: Development Charges (Debt) (1,292,728) (183,750) (413,173) (413,200) (413,200) (413,200) (413,200) (453,321) (601,770) (621,831) (666,767) (666,767) (666,767) (666,767) (835,276) (835,276) (835,276) (835,276) (835,276) (835,276) (835,276) (835,276) (835,276)

Prior Year Surplus Adjustment 695,089 - - - - - - - - - - - - - - - - - - - - - -

Total Wastewater Revenue 1,237,082 1,967,245 2,102,821 2,330,632 2,583,121 2,862,966 3,173,127 3,516,889 3,897,894 4,320,174 4,788,202 4,943,822 5,104,500 5,270,400 5,441,691 5,618,550 5,801,157 5,989,698 6,184,367 6,385,364 6,592,892 6,807,166 7,028,403

Percentage Increase 10.8% 10.8% 10.8% 10.8% 10.8% 10.8% 10.8% 10.8% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3%

Table H-5Wastewater Budget Forecast Summary

Net Impact on Wastewater RevenueForecast

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033




H-4

municipality of middlesex centre asset management … · the municipality’s goals and objectives...

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