Plan gives Norfolk assets mostly passing grades

Luke Edwards

Advocate Correspondent

The path to maintaining Norfolk’s $5.5 billion in assets has become somewhat clearer now that councillors have approved its first full, comprehensive asset management plan.

An increasing priority from Queen’s Park, plans such as Norfolk’s take stock of all the municipally owned assets - from roads to arenas - determining their state and estimating the cost to maintain or replace the assets when they reach the end of their lifecycle. The idea is to get municipalities thinking about their future needs and planning in advance so big ticket items don’t come as a shock when it comes time to replace them.

Norfolk’s plan includes a mix of good and bad, though the bad is something most municipalities in the province are facing. It notes a $24 million a year renewal shortfall in levy assets, and a $9.6 million renewal shortfall for rate-supported assets.

The municipality has been making efforts to close that gap in recent years and has found some success with budget surpluses, successful grand applications, and increased investment income from rising interest rates. Budget decisions have also contributed.

“It is key that Norfolk continues to make progress in closing that gap,” said treasurer Amy Fanning.

As part of the approval of the asset management plan, councillors also approved a plan to include $3.4 million as a council-approved initiative in the proposed 2026 operating budget, and approved in principle annual increases of 2.5 per cent in the ensuing decade to close the gap.

That may sound like a lot of money, and it is in a lot of respects, but Fanning had a different take, given that recent years have seen more significant increases as the county has addressed major projects without a full asset management plan.

“The gains we’ve made in the last few years have allowed us to slow that number down a bit,” she said.

The plan divides assets into five states of repair, ranging from very poor to very good, classifying 11 per cent of Norfolk’s assets in very poor condition.

“That’s a fairly low number, you’ve done a good job of trying to keep your assets in the green, through yellow through orange,” said consultant Andrea Clemencio.

More than half, 58 per cent, of the county’s assets are in either good or very good condition, the plan said.

Clemencio told councillors closing the infrastructure gap isn’t just a matter of finding more money. Municipalities can also adjust service levels, explore alternate service models or find ways to save money or combine assets.

“You don’t always have to own the assets that are providing those levels of service,” she said.

During the same June 12 meeting, staff also presented a report that offered a historical financial review. It was done at the request of Mayor Amy Martin, who made a motion about it last fall.

The review suggested a steadily improving financial picture.

“Ten years ago Norfolk faced real financial vulnerabilities,” said Fanning, adding reserve levels were dangerously low and in some cases in a negative balance position.

“That picture is beginning to change,” Fanning added.

Creating healthier reserve funds will help the municipality make better use of its asset management into the future. However, staff also pointed out that it’s only a forecast, and things change.

Asset management manager James Bokor said climate, master plans, and council changes could all lead to changes in the AMP.

“We are not fixed to these proposed levels of service forever, but we’ve got a great starting point,” he said.