Minto council reviews asset management plan

MINTO – Ontario municipalities are required to complete an asset management plan (AMP) and review it annually. 

Minto council engaged PSD Citywide’s advisory services team for its annual AMP review, which was brought to its June 2 meeting.

Senior asset management advisor Sarah Craig said the town’s proposed level of service is to maintain an average asset condition rating of “good” for about 60 per cent of all tax-funded assets, while maintaining current funding levels for water and sanitary assets until further analysis can be completed.

The AMP review included data updates to reflect the town’s assets as of Dec. 31, 2025 and to incorporate improvements to the data available to support asset management decision-making.

“The town determined that it is currently committing approximately $2.3 million annually toward capital projects and reserves. However, it was also identified that approximately $7.89 million per year would be required to maintain the existing tax-funded asset base at the desired level of service,” Craig stated in a report.

To help address this funding gap, a funding scenario was developed with a proposed 20-year phase-in period based on annual increases of 3%.

Showing a graph in her slideshow presentation, Craig also explained the replacement cost in Minto’s AMP in 2024 was $526 million in infrastructure, which had increased to $569 million in 2025. This is a change from 61% to 62%.

“That is due to inflationary changes, as well as some data updates to better reflect construction in your area and the actual replacement costs of your infrastructure,” she said, adding the percentage increase was “positive” and the 2024-25 change in percentage to “good” or “very good” for infrastructure went from 55% of assets to 60%.

The Town of Minto’s 2025 base capital funding level, said Craig, was 29% of its infrastructure replacement requirements in the AMP. This has increased to 32% in 2026.

The report states the 2026 budget is about $14 million, but this includes the full cost of the downtown Palmerston road reconstruction project as well as several other larger initiatives.

Craig said “that funding level isn’t sustainable going forward … we still recommend that 3% capital dedicated levy increase year over year.”

The asset management advisor added there are ongoing challenges impacting the pace and effectiveness of implementation across all asset classes.

A more significant challenge, she reported, is the continued impact of inflationary pressures on construction, materials, equipment and contractor costs.

“Rising costs reduce purchasing power and place additional strain on capital budgets, making it more difficult to complete planned rehabilitation and replacement projects within existing funding levels,” Craig wrote in her report.

The town’s larger rural infrastructure network relative to the available tax base is another continuing factor.

Aging infrastructure and deferred maintenance pressures also remain a challenge, particularly within facilities and underground infrastructure systems. 

As assets continue to age, said Craig, rehabilitation and replacement demands increase, placing more pressure on capital planning and operating budgets. 

It was recommended the town continue to pursue alternative funding sources such as one-time grants, public-private partnerships and donations, so not only the tax base is used to fund large projects.

Organizational capacity was another item mentioned that continues to impact the AMP. 

Target actions to address this included continuing to build internal asset management knowledge and training opportunities across departments, and evaluating opportunities for dedicated asset management staffing or shared service models to support program development and improvements.

To address inflationary pressures in the town, target actions listed by Craig were to:

– continue refining lifecycle planning, updated condition assessments and prioritization processes to optimize infrastructure investment timing;

– increase focus on preventative maintenance strategies to extend asset life and reduce long-term replacement costs;

– incorporate updated cost assumptions into long-term financial planning and reserve forecasting; and

– continue exploring phased project implementation approaches to better manage capital affordability challenges.

Noting the presentation included “a lot of information, really quickly,” Craig opened the floor for questions from council. Mayor Dave Turton asked treasurer Gordon Duff if there was anything he wanted to add. Duff thanked Craig for “keeping us on track.”

He added, “I am happy that Minto is on target, and we’re not missing any deadlines … I’m happy also that last year had so many improvements; it’s a challenging environment.”

The mayor asked Craig about the town’s average condition increasing from 61 to 62%, and if that was a good rate to have as an increase.

“When we upgrade assets, new pipes, new infrastructure, new buildings, it surprises me that that percentage doesn’t move up quicker,” he said.

“For example, we’re doing a big, big project in Palmerston. It’s been on the list for quite a number of years, and we’re somewhere between $18 and $20 million. I’m assuming … that 62% might go to 64%. Is that too much of a jump? I mean, it’s a big project, and we’re really doing a huge improvement.”

Craig explained the $18 million is only a fraction of the town’s $569 million worth of infrastructure.

“That 61% condition is rated on the replacement cost value, so if you have the other $550 million in infrastructure that’s deteriorating year over year, there are improvements that you’re making, and it’s making great headway, but there are still a lot of assets that are deteriorating … 1% is a really great number,” she stated.

Minto council received the review for information.