AMO has been driving municipal sector progress in asset management through its several capacity building projects, policy directives, and administration of the federal Gas Tax.
AMO administers the federal Gas Tax Fund for 442 municipalities in Ontario. The federal Gas Tax Agreement requires municipalities to develop an asset management plan that identify local infrastructure investment priorities. One of the objectives of the federal Gas Tax program is that funds are used to address local priority projects.
While municipalities continue to make progress in asset management, very few municipalities have identified priority projects in their plans due to lack of:
- Understanding of asset lifecycle costs, levels of service and risk assessment
- Financial resources to collect and maintain the required data
- Adequate staff training
- Credibility of asset management plan’s recommendations
Asset Management Under the Federal Gas Tax Agreement
The Administrative Agreement on the Federal Gas Tax Fund requires Ontario municipalities to:
- Develop and implement an asset management plan; and
- Report asset management outcomes to AMO.
Each requirement is described in detail below. Municipalities must demonstrate progress toward meeting these requirements to receive federal Gas Tax funds.
ASSET MANAGEMENT PLAN REQUIREMENTS
The federal Gas Tax Agreement required Ontario municipalities to develop and implement asset management plans by December 31, 2016. All municipalities have successfully developed a baseline asset management plan in alignment with Ontario’s Building Together: Guide for Municipal Asset Management Plans.
Municipalities are expected to continuously improve and implement their existing asset management plans according to the requirements of the Asset Management Planning Regulation under the Infrastructure for Jobs and Prosperity Act, 2015.
ASSET MANAGEMENT REPORTING REQUIREMENTS
Municipalities must demonstrate:
- That asset management plans are being used to guide infrastructure planning and investment decisions; and
- That federal Gas Tax funds are being used to address priority projects identified in the plans.
Municipalities met this requirement by:
- Submitting a copy of their most recent Council-approved asset management plans;
- Completing a questionnaire in 2016 to describe the scope and content of their asset management plans;
- Completing a questionnaire in 2017 to describe ongoing efforts to improve their asset management systems; and
- Completing a questionnaire in 2018 to describe current initiatives for improving asset management.
Any future reporting requirements will be guided by the Asset Management Outcomes Working Group.
ASSET MANAGEMENT OUTCOMES WORKING GROUP
AMO has established an Asset Management Outcomes Working Group with representation from:
- Municipalities of all types and sizes throughout the province;
- The federal and provincial government; and
- Several membership-based organizations active in the field.
The purpose of the group is to ensure that any future reporting requirements:
- Meet the objectives of the federal Gas Tax program;
- Do not create a reporting burden for municipalities; and
- Are consistent with the Asset Management Planning Regulation (O. Reg. 588/17) under the Infrastructure for Jobs and Prosperity Act, 2015.
Provincial Asset Management Requirements
- Develop a Strategic Asset Management Policy by July 01, 2019
- Develop an Asset Management Plan including core infrastructure assets with current levels of service by July 01, 2021
- Develop an Asset Management Plan including all infrastructure assets with current levels of service by July 01, 2023
- Develop an Asset Management Plan with proposed levels of service, and lifecycle management and financial strategy by July 01, 2024
AMO CAN HELP
AMO continues to engage the province with other municipal associations and asset management communities of practice to deliver capacity building initiatives that ensure long-term stewardship and sustainability of local infrastructure.
AMO staff regularly review all asset management plans collected during the most recent reporting cycle. When requested, staff is available to provide feedback to municipalities on their current asset management plans.