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Municipalities own and manage a substantial asset inventory, from linear assets (e.g. roads, sewers, water mains) to land and facilities (e.g. arenas, fire stations, administrative buildings) to vehicles and equipment (e.g. trucks, plows and ambulances). It is estimated that the level of investment per taxpayer property ranges from $70,000 for small urban/rural municipalities, to in excess of $100,000 per property for large urban centres.
The 1950-1980 period saw considerable investment by Ontario municipalities in acquiring and constructing municipal assets. Today many of these assets have passed the midway point in their useful lives and will need further investment to either extend their usefulness or to be replaced.
Watson & Associates has assisted municipalities in developing long term asset management plans which address the capital expenditure planning, financing and tax rate implications for asset renewal and replacement. Financial plans are normally developed over a minimum 10-year planning horizon (often 20 years or longer) in order to smooth the impacts on tax/ratepayers over time. A well-developed asset management plan, based on solid research and expert analysis provides staff and Council with the information needed to make effective annual reserve fund and investment decisions.
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