Asset Management Planning

Our financial studies have always taken existing asset condition into account to the extent that such information was available, and not simply rely on the pure financial (PASB) data in the Tangible Capital Asset (TCA) data base. In many cases, based our own engineering expertise and judgement, adjustments are made to life expectancies depending on the asset and its maintenance history.

The Ministry of Infrastructure released its guide to asset management planning and has made funding available to small, rural and northern municipalities in Ontario to develop asset management plans. All municipalities are required to prepare Asset Management Plans (also noted in the Water Opportunities Act) and these will now be a perquisite for future provincial funding. It is now clear that financial planning must be based on sound asset condition projections from an engineering and operations perspective – not just financial assumptions. New rules for Gas Tax Funding require that all assets (not only infrastructure but also facilities, etc.) must now be included in Asset Management Plans.

We are in the unique position of being able to offer to our clients the combined engineering and finance expertise required for developing asset management plans and preparing financial plans that consider municipal financial polices, financial best practices within the municipal community and the need to address affordability.

Our approach to asset management planning is designed to meet the requirements of the Ministry of Infrastructure and support future funding applications.

We have an effective and practical model using Microsoft Excel that can be tailored to suit any municipality’s needs. This model was used to successfully develop Asset Management Plans for smaller northern Ontario as well as larger southern Ontario municipalities.

The 2014 Asset Management Plan developed by DFA for the Township of Billings was recognized on the Municipal Financial Officers’ Association of Ontario (MFOA) Honour Roll for its Cost-benefit Analysis.