July 24, 2017…

July 24, 2017

Joshua McCann Senior Policy Analyst Ministry of Economic Development, Employment and Infrastructure Infrastructure Policy Division Inter-Governmental Policy Branch Municipal Infrastructure Policy Unit

Dear Mr. McCann,

Middlesex Centre is a lower-tier municipality located within the geography of Middlesex County and has a population of approximately 16,000 over an area of 587.22 sq. kilometres. In 2017 a 1% tax levy increase was approximately $150,000. Council and staff believe that our municipality needs effective plans to take care of our infrastructure over the long term, and that asset management planning is essential for the future resilience of Middlesex Centre. In 2013, Middlesex Centre completed its first asset management plan with the assistance of Watsons and Associates. Now, in 2017 the province created a proposed municipal asset management planning regulation under the Infrastructure for Jobs and Prosperity Act, 2015. The purpose of the proposed regulation is to implement best practices throughout the municipal sector and provide a degree of consistency among municipalities and the province. Municipalities would be required to adopt strategic asset management policies that would promote best practices and link asset management planning with budgeting, operations, maintenance and associated other municipal planning activities. Municipalities would also be required to report on implementation annually. The proposed Asset Management Regulation proposes more criteria (e.g., establishing service levels, undertaking an operational cost analysis including matters such as energy costs) than what is currently required. It standardizes the way municipal asset management plans will be done in a rather aggressive, but phased, time frame. Additional reporting will be required to be completed by staff. Staff have identified to Council the importance of the asset management plan and it internally working on a strategy to improve our current plan and practice. Should this proposal be passed, Middlesex Centre will need to update and expand our plan to meet the proposal. At the present time, this does pose significant capacity challenges to Middlesex Centre both on staff and financial resources for the Municipality. Overall, this regulation is not the best path forward for Middlesex Centre. This proposed regulation means the following for our Municipality:

•Hiring a full time resource to manage the plan internally (as the municipality does not have the capacity), approximately $90,000 yearly.

•Additional resources on purchasing and implementing asset management software, approximately $70,000.

•Additional outside resources would be required with expertise around condition rating and assessment and compilation, approximately $60,000. The total amount needed to begin meeting the regulation would be approximately $220,000, which would be more than a 1% tax levy increase. This would be money taken away from improving the infrastructure. Middlesex Centre has been steadily increasing the yearly tax levy to fund infrastructure improvements. This has been a hardship for many residents in our municipality and the proposed regulation requires the municipality to continue to increase the tax levy. Finally, Middlesex Centre is committed to improving our asset management plan and to make it a living document, however the proposed regulation does not support us in this.

[Original Comment ID: 210288]