City Launches Corporate Asset Management Plan for 2016

The City has launched a Corporate Asset Management Plan to manage infrastructure, and to ensure that the City’s assets are capable of meeting the levels of service required to support the City of Saskatoon’s goals. 

“Our Asset Management Planning is an important step in establishing levels of service for the rehabilitation of all City assets, and identifying supporting financial strategies,” Director of Finance, Clae Hack says. “This type of long-term planning supports our goal of managing the City in a smart, sustainable way.”

The overarching Corporate Asset Management Plan will guide future funding, assist in the stewardship of assets, and support the delivery of City services by:

•        providing sufficient information to make informed and balanced decisions;
•        ensuring the required levels of services are provided in a cost-effective manner over the assets life;
•        ensuring maximum benefit is received from the assets; and
•        helping to manage risks to the delivery of the services (risk of asset failure).

“Under our Corporate Asset Management Plan, we are also planning eight individual Asset Management Plans for our major asset categories to begin with, but our goal over the next few years is to have a master asset management plan that encompasses all assets that the City owns,” Hack says.

To start, the eight major asset categories addressed in the Corporate Asset Management Plan will be:

•        Buildings and Facilities
•        Roads and Sidewalks
•        Bridges and Overpasses
•        Parks
•        Vehicles and Equipment
•        Transit
•        Water, Wastewater and Storm Water
•        Electrical Utility

Each individual plan will focus on four main questions:

•        What does the City own and what is it worth?
•        What is the current condition assessment?
•        What is the desired condition?
•        What is the funding gap required to reach the desired condition?

The content contained in each individual asset management plan will be slightly different depending on the asset class. Although the level of service and condition level for each type of asset is defined differently, an expenditure funding level will be identified in order to address any potential service level gaps.

The Asset Management Plans will be presented to City Council with a recommendation that the information be received and that the matter be considered during the City’s annual Budget Review process, next for 2017.  The plans will ensure that City Council has complete information when making decisions on how to fund the rehabilitation and maintenance of the City’s assets.  City Council will have the ability to select a desired condition rating (such as the age of the City’s Transit fleet or number of water main breaks over 25 years) as well as an expenditure level to address any gaps between the current and desired condition.

The overarching Corporate Asset Management Plan and the individual asset management plans support the Strategic Goal of Asset and Financial Sustainability, and the 4-year priority to establish levels of service for rehabilitation of assets and identify supporting financial strategies. The plans also support the City’s longer 10-year strategy to adopt and implement a corporate-wide asset management and rehabilitation philosophy.

To view the complete report along with Frequently Asked Questions, visit saskatoon.ca>Budget & Finance.

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