Town plans › Asset Management Plan (AMP) · Town money, debt and taxes · Water and sewage · Growth and new development

Asset Management Plan (AMP)

Full title: Asset Management Plan for the Municipality of Strathroy-Caradoc

StatusReceived

Council decisionMarch 7, 2022 [S3]

Years it covers2020-2029

Written byPSD Consulting (PSD Citywide), London, Ontario

Read the plan on the town's site Read our saved copy Download a copy

A big list of everything the town owns - roads, bridges, pipes, buildings, trucks and parks - how worn out each thing is, and how much money the town needs to set aside every year to fix and replace it.

The plan was written by PSD Consulting, dated April 2021 (Version 1.0), and uses the town's asset data as of the end of 2019.
It says everything the town owns would cost about $743 million to replace, and 60% of it is in fair or better condition. Only 34% of assets had a real inspection; the rest were rated by age.
It says the town should spend about $13.2 million a year to keep things in good repair, but was putting about $6.7 million a year into capital, leaving a yearly gap of about $6.5 million and a $46.2 million backlog of work already due.
To close the gap for tax-funded assets (roads, bridges, buildings, storm sewers, parks, fleet, equipment) it recommends raising taxes for capital by about 2.0% a year for 15 years. Water and sewer were close to fully funded: no sewer rate increase needed, and about 0.4% a year for water over 20 years.
It does not set 'proposed levels of service' (the targets the province required by July 1, 2025). Many current service measures in the plan are still marked 'TBD', and it says those targets should come in a 2025 update.

Why it matters to you

This plan is the town's own estimate of how much it should be saving each year to keep roads, pipes and buildings from falling apart, and the Mayor has said his four-year capital budget will be tied to it. Its numbers were still being quoted in the 2026 budget, so residents can use it to see whether yearly budgets are closing the gap or not.

PSD Consulting presented the plan to Council on March 7, 2022, and Council passed a motion to 'receive the presentation for information' (moved by Councillor Pelkman, seconded by Councillor Kennes, Carried, no recorded vote); no separate motion to adopt, approve or endorse the plan was found in the 2020-2026 meeting records checked.

Promises about this plan

Colin Grantham (Mayor): He promised a council-approved four-year capital budget tied to the Asset Management Plan, and to follow the strategic plan and the roads, water/wastewater and recreation master plans already paid for, instead of making a new strategic plan.

What the plan says to do (22)

Progress only changes when a public record shows something was done. Page numbers point to the plan itself.

Raise the property-tax money set aside for capital (fixing and replacing assets) by about 2.0% each year for 15 years, until tax-funded assets are fully funded. page 126
When: each year for the next 15 years | Cost: approx. 2.0% tax increase each year; total tax change 34.0% (30.7% if debt savings are captured) | Priority: recommended 15-year option
Not yet checked
As old loans are paid off, move the money that was going to loan payments into fixing infrastructure instead. page 125
When: as debt payments drop over the next 5 and 10+ years | Cost: $266,000 over the next 5 years and $620,000 over the next 10+ years | Priority: recommended
Not yet checked
Keep putting federal Gas Tax and provincial OCIF grant money toward capital assets. page 126
Cost: Gas Tax 668,000 and OCIF 465,000 per year shown for the Transportation Network | Priority: recommended
Not yet checked
Increase existing infrastructure budgets by inflation every year, on top of the extra money from the phase-in. page 126
When: annually | Priority: recommended
Not yet checked
For water, keep the current funding approach and consider a small water rate increase of 0.4% a year for 20 years; for wastewater (sewer), no rate increase is needed because it is already fully funded. page 129
When: next 20 years | Cost: 0.4% annual water rate increase | Priority: recommended
Not yet checked
Do a new condition assessment of all roads within 1-2 years, since the last full one was in 2015. page 44
When: within the next 1-2 years | Where: all municipal roads
Not yet checked
Use a planned schedule of crack sealing, resurfacing and other road treatments based on measured condition, instead of letting roads wear out and rebuilding them. page 122
Cost: estimated annual cost avoidance of $3,097,487 for the Transportation Network | Where: asphalt (HCB), tar and chip (LCB) and gravel roads | Priority: condition-based strategy is 'the recommended approach moving forward' (page 37)
Not yet checked
Plan for the asphalt road work the plan forecasts for each year, including about $2.7 million in 2026 and $4.5 million in 2027. page 136
When: 2026-2029 | Cost: Asphalt roads: $2,660,596 (2026), $4,533,475 (2027), $1,925,782 (2028), $2,948,262 (2029); asphalt road backlog $7,469,985 | Where: asphalt roads
Not yet checked
Get a full structural assessment of all town buildings and facilities to find out their real condition and short- and long-term repair costs. page 62
Where: all municipal buildings and facilities | Priority: 'highly recommended'
Not yet checked
Deal with the buildings and facilities backlog and forecast repairs, including recreation and cultural buildings. page 137
When: 2020-2029 | Cost: Buildings & Facilities backlog $6,737,808; Recreation & Cultural Services $995,688 forecast in 2026
Not yet checked
Start a regular inspection and cleaning program for storm sewers (camera-inspect about 6.5% of the network and flush about 25% each year) and reline old pipes without digging where possible. page 92
When: yearly | Where: storm water mains | Priority: best practice strategy
Not yet checked
Consider relining wastewater (sewer) mains without digging to extend their life at lower cost, and set up a regular inspection cycle for them. page 115
Cost: Wastewater mains forecast $6,627,352 in 2028 | Where: wastewater mains
Not yet checked
Catch up on the water system backlog, especially water mains, hydrants and valves, which the plan rates in poor condition by age. page 139
When: 2020-2029 | Cost: Water backlog $18,723,231 (mains $12,662,518, hydrants $2,656,000, valves $2,222,329) | Where: water distribution system
Not yet checked
Set up condition checks for high-value and high-risk water system assets and formalize the inspection program started with PSD. page 106
Where: water system
Not yet checked
Keep inspecting bridges and large culverts every 2 years under the provincial bridge manual (OSIM) and update the plan's data after each inspection. page 53
When: every 2-3 years | Where: 39 bridges and culverts
Not yet checked
Review fleet vehicles and equipment that are past their expected life, and replace historical-cost estimates with real current replacement costs. page 78
Cost: Fleet backlog $1,492,731; Machinery & Equipment backlog $2,159,739
Not yet checked
Use risk-based decision-making (how likely something is to fail and how bad it would be) when planning and budgeting, and review high-risk assets regularly. page 44
Not yet checked
Start measuring the service levels listed in the plan; many current measures (for example water main break days, storm protection, building closures) are marked 'TBD', and the service-level maps in Appendix B are 'to be populated'. page 141
Not yet checked
Set proposed levels of service for all assets (the service targets for the next 10 years) and the strategies to reach them, as the provincial rule requires. page 134
When: by July 1, 2025 | Priority: required by O. Reg. 588/17
Not yet checked
In the 2025 update, include how population and job growth affect the lifecycle and money plans, using the Official Plan and growth numbers. page 118
When: by July 1, 2025 | Priority: required by O. Reg. 588/17
Not yet checked
Tie the asset management plan to a long-term financial plan; the plan notes the town had not prepared a corporate-wide Long-Term Financial Plan. page 120
Not yet checked
Build a complete, component-by-component inventory of buildings and keep updating replacement costs and condition data, for example from insurance appraisals and outside facility assessments. page 62
Where: buildings and facilities
Not yet checked

How to tell if it is being followed

Look for an updated Asset Management Plan (with proposed levels of service) coming to a Council agenda on eScribe and being approved by Council resolution; the 2025 budget set aside $100,000 for an 'Asset Management Plan Update'.
Compare the yearly budget's 'Transfer to Asset Mgmt Plan Reserve' line and total capital funding to the plan's $13.2 million a year target; the 2026 budget said the town has been allocating $3 million a year.
Check whether the tax increase dedicated to capital each year is close to the 2.0% a year the plan recommends, using the budget presentations on the Budget & Financial Reports page.
Check tenders and capital budget lines for the road, water main, hydrant, valve and building work forecast in Appendix A (pages 136-140), and the 2028 wastewater mains work.
Watch for condition studies the plan asked for: a new all-roads condition survey, a structural assessment of all buildings, storm and sewer camera inspections, and bridge (OSIM) reports every 2 years.
The Municipality's audited financial statements show the Asset management reserve fund balance each year.

What has happened since

February 11, 2026
During 2026 budget amendments, a motion by Councillor Willsie asking for a slide showing the tax effect of a fully funded asset management plan (and saying the AMP contribution was decreased to $2 M in 2026) was deferred to a 2027 finance-procedures meeting. A separate motion to use the AMP's useful-life framework for debt amortization was carried. [S12]
January 16, 2026
The 2026 budget document repeated the plan's figure that the town must allocate about $13.18 million a year and said it had been allocating $3 million a year. It showed a 2025 budget of $100,000 for an 'Asset Management Plan Update' (no amount in 2026), a $300,000 transfer to the asset management reserve for 2025 and 2026, and proposed a new Asset Analyst position ($130,087) to keep the AMP up to date. [S8]
November 18, 2024
Staff had asked to use $25,000 from the Asset Management Reserve fund for an energy-retrofit investment grade audit with Johnson Controls; after a deferral on Nov 4, Council passed a motion on Nov 18 denying the Johnson Controls agreement. [S14]
October 15, 2024
At the 2025 budget Finance Committee meeting, Councillor Willsie suggested looking at reserve balances and the asset management plan. [S15]
March 23, 2024
The 2024 budget presentation said the same practice had continued for 9 years; the 2024 provision was $230,000. [S9]
May 27, 2023
The 2023 budget presentation said Council had for 8 years set aside part of assessment-growth tax money for the asset management gap; the 2023 provision was $230,000. [S10]
February 6, 2023
Council received report EPW-2023-07 Pavement Condition Index for information. A 2021 StreetScan survey of road condition had been entered into the town's asset management software (this follows the plan's advice to reassess roads). [S11]
March 7, 2022
PSD Consulting presented the plan (called the '2020 Asset Management Plan', based on 2019 year-end data). Council received the presentation for information. The consultant said growth information would be key for the 2025 AMP update. [S3]
January 24, 2022
At the 2022 budget Finance Committee meeting, staff said the asset management plan update would come to Council in February; the CAO described the AMP as a management tool and said the guiding plan is the Strategic Plan. [S6]
September 7, 2021
In report FIN-2021-10 (2022-2032 Budgetary Considerations), the Director of Financial Services listed the Asset Management Plan among plans being updated that would affect future finances; Council received the report for information. [S7]

Words used in this plan

Asset: Something the town owns that provides a service, like a road, water pipe, building or fire truck.
Replacement cost: What it would cost today to replace an asset with a similar new one.
Annual capital requirement: The amount the town should put aside every year so it can repair and replace assets on time.
Infrastructure deficit (funding gap): The difference between what the town should spend each year on its assets and what it actually spends.
Backlog: Repair or replacement work that is already due or overdue.
Levels of service: How well a service works for people, for example how often water mains break or how smooth roads are.
O. Reg. 588/17: The Ontario rule that says every municipality must have an asset management plan and update it by set deadlines.
Age-based condition: Guessing how worn out something is from how old it is, instead of inspecting it.

Sources

[S1] PSD Consulting for the Municipality of Strathroy-Caradoc, Asset Management Plan for the Municipality of Strathroy-Caradoc (Version 1.0, April 07, 2021), April 7, 2021. plan document; 149-page PDF, read in full except charts and image-only tables. Saved as asset-management-plan.pdf. Linked as 'Asset Management Plan' on the town's Financial Services and Studies pages.
[S2] Municipality of Strathroy-Caradoc, Financial Services. web page; Links the AMP, the AMP presentation and By-law 46-18 (Strategic Asset Management Policy). No newer AMP is linked as of 2026-10-27.
[S3] Municipality of Strathroy-Caradoc (eScribe), Council Meeting Minutes, March 7, 2022 - item 2.1 Updated Asset Management Plan, March 7, 2022. minutes; Presentation by Chris Vanderheyden, PSD Consulting. Attachments were 'Municipality_of_StrathroyCaradoc_AMP_Draft_V1.pdf' and 'Strathroy Caradoc AMP 2020.pdf'. Motion: receive the presentation for information, Carried.
[S4] PSD Citywide / Municipality of Strathroy-Caradoc, Strathroy-Caradoc Asset Management Plan (presentation). plan document; Slide deck. Splits the $6.5 million annual deficit into core infrastructure $3.4 million and non-core $3.1 million, and notes a $46.2 million infrastructure backlog.
[S5] Municipality of Strathroy-Caradoc, By-law No. 46-18 - A By-law to Establish a Municipal Strategic Asset Management Policy, May 22, 2018. web page; Policy AMP-01, approved by Council May 22, 2018; 'Next Revision Due: 2020-05-22'.
[S6] Municipality of Strathroy-Caradoc (eScribe), Finance Committee Meeting Minutes, January 24, 2022, January 24, 2022. minutes; 2022 budget discussion; AMP update said to be coming in February.
[S7] Municipality of Strathroy-Caradoc (eScribe), Council Meeting Minutes, September 7, 2021 - FIN-2021-10 2022-2032 Budgetary Considerations, September 7, 2021. minutes; AMP named among plans being revisited.
[S8] Municipality of Strathroy-Caradoc, Revised 2026 Proposed Budget Documents (January 16, 2026), January 16, 2026. staff report; Listed as the 'Adopted Budget Document' on the Budget 2026 page. AMP figures on pdf page 14; Asset Analyst request on page 45; 'ASSET MANAGEMENT PLAN UPDATE' and reserve transfer lines on page 88.
[S9] Municipality of Strathroy-Caradoc, 2024 Detailed Budget and Budget Presentation (updated March 23, 2024), March 23, 2024. staff report; Page 5: AMP gap provision $230,000 for 2024. Date taken from the file name.
[S10] Municipality of Strathroy-Caradoc, 2023 Detailed Budget and Budget Presentation (updated May 27, 2023), May 27, 2023. staff report; Page 5: AMP gap provision $230,000 for 2023. Date taken from the file name.
[S11] Municipality of Strathroy-Caradoc (eScribe), Council Meeting Minutes, February 6, 2023 - Pavement Condition Index EPW-2023-07, February 6, 2023. minutes
[S12] Municipality of Strathroy-Caradoc (eScribe), Special Meeting of Council Minutes, February 11, 2026 (2026 budget amendments), February 11, 2026. minutes
[S13] Municipality of Strathroy-Caradoc (eScribe), Council Meeting Minutes, November 4, 2024, November 4, 2024. minutes; Johnson Controls / $25,000 Asset Management Reserve item tabled, then deferred.
[S14] Municipality of Strathroy-Caradoc (eScribe), Council Meeting Minutes, November 18, 2024 - CS-2024-51 Investment Grade Audit Update, November 18, 2024. minutes
[S15] Municipality of Strathroy-Caradoc (eScribe), Finance Committee Meeting Minutes, October 15, 2024 - FIN-2024-25, October 15, 2024. minutes
[S16] votegrantham.ca (campaign site), Colin Grantham platform page, October 27, 2026. web page
[S17] PSD Consulting for the Municipality of Strathroy-Caradoc (eScribe), Municipality_of_StrathroyCaradoc_AMP_Draft_V1.pdf (attachment to March 7, 2022 Council agenda item 2.1), April 7, 2021. plan document; Cover reads 'Draft One Submitted April 2021', revision history 'April 07, 2021 Version 1.0'. Text, figures and page numbering from page 5 on are the same as the website version; only the cover wording, table-of-contents page breaks and chart axis labels differ. PDF internal date March 2, 2022.

What we could not find

No newer Asset Management Plan (2024 or 2025 update) was found on the town website, in Council agendas and minutes from 2020 to October 2026, or by web search. The plan meeting the July 1, 2025 'proposed levels of service' requirement could not be found.
Several tables in the plan are images or charts (overall condition by category graph, Machinery & Equipment and Fleet levels-of-service tables, risk matrices, the list of 'most significant areas of capital investment' on page 127) and could not be read as text.
Council minutes from before September 2020 and any staff report that went with the March 2022 presentation were not reviewed; no staff report attachment was listed for that item.
Report FIN-2026-18 'Financial Statement Disclosure - Updated Asset Estimated Useful Life Range' (July 6, 2026 Council) was not opened (eScribe attachment).
The town's actual yearly capital spending was not added up, so whether the $3 million (or $2 million) a year figures match the records was not checked.