Does your asset management plan meet the requirements?
Ontario municipalities must develop and implement an asset management plan by December 31, 2016 in order to continue receiving federal Gas Tax Fund payments under the Federal Gas Tax Agreement.
To meet the asset management requirements of the Agreement, municipalities must:
- Improve existing asset management plans to include all tangible capital assets reported in Schedule 51 of the Financial Information Return (FIR) that are eligible for Gas Tax funding. The 16 eligible infrastructure categories are listed in Schedule B of the Agreement.
- Adhere to the guidelines set out in Ontario’s Building Together: Guide for Asset Management Plans.
- Demonstrate progress by reporting annually on asset management outcome indicators.
Municipalities are expected to continue working on the improvement of their asset management plan even if they are not able to incorporate all eligible tangible capital assets by Dec 31, 2016. AMO will not withhold Gas Tax funds as long as municipalities can demonstrate progress towards meeting the requirement.
Plans can use any appropriate format, but must include the information and analysis required to be in a plan as described in Ontario’s Building Together: Guide for Municipal Asset Management Plans.
Municipalities are required to report on asset management outcome indicators to demonstrate that plans are being used to guide infrastructure planning and investment decisions. Starting with the 2016 Gas Tax reporting cycle, municipalities will report annually on percentage of tangible capital assets they own that are included in their asset management plan. It’s calculated as total replacement cost of tangible capital assets included in asset management plan as a percentage of total replacement costs of all tangible capital assets reported in Schedule 51 of the Financial Information Return.
Other asset management progress indicators will be implemented for reporting years 2017 and beyond as soon as provincial consultations on a potential asset management regulation are completed under the Infrastructure for Job and Prosperity Act, 2015.
AMO can help
To help municipalities AMO is working with LAS and the Municipal Finance Officers Association (MFOA) on a ‘multi-year road map’ that will help municipalities plan their training needs to better understand the key elements of a comprehensive asset management process, and take the next step in their asset management planning.
Courses will help municipalities develop the internal resources to make asset management more meaningful. For more information visit the Asset Management