With a challenging decade ahead for infrastructure, Chatham-Kent public utilities commissioners received an update on the organization’s asset management plan on Thursday.
With a challenging decade ahead for infrastructure, Chatham-Kent public utilities commissioners received an update on the organization’s asset management plan Thursday.
Commissioners decided to include the commission’s water and wastewater sections with the municipality’s overall core infrastructure plan for submission to the province before the July 1 deadline.
The plan provides an integrated framework to guide strategic, financial and operational decisions, such as accommodating community growth.
There will also be a request for proposals for consulting services for the remaining 2023–2025 requirements.
Council will review their portions of the asset management plan during this Monday’s meeting.
According to a staff report, the annual requirements of fully funding the public utilities commission’s asset management plan has increased from $22 million in 2013 to $62 million in 2022, through “more exact condition ratings, increasingly accurate inventories, new assets from growth and very high levels of building inflation.”
Funding for the plan has risen from $5 million in 2013 to $21.5 million this year, due to a gradual increase in annual budgets. The commission funded the plan at 21 per cent in 2013, but now funds it at 35 per cent.
“A slow increase over the years has been established and maintained,” said Rob Bernardi, director of engineering and compliance, during Thursday’s virtual meeting.
“In the interim, we’re looking at detailed condition assessments for our water plants and our sewage plants to make sure that we’re investing the right amount of money as well into those facilities for lifecycle.”
Bernardi added the plan will also be used to develop the next multi-year water and wastewater rate study.
Gord Quinton, Chatham-Kent’s chief financial officer, said asset management plans are needed in order to submit grant applications to senior levels of government.
“It’s very key for our grant processes,” he said, “but also to inform council on Monday and the commission today on the challenges that are faced over the next decade.”
Quinton cautioned that municipalities will face a tough balance between necessary infrastructure investments and community affordability.
“Something’s got to bend here,” he said. “Monday night, there will be more about the pressures on all the governments and the lobbying efforts that need to continue.”