Frequently Asked Questions
Assets are comprised of things such as road networks, sewers, bridges, culverts, facilities like libraries and recreation facilities, vehicles, equipment, and items that add value to the organization like computer systems.
Asset management is not a singular activity or project; rather, it is a systematic process that facilitates decision-making in regards to the construction, acquisition, operation, maintenance, renewal, replacement, and disposition of assets in the most cost-effective manner.
The City’s asset management program guides the consistent application of standards, practices, and tools to support effective service delivery through the sustainable management of public infrastructure. Implementing an asset management program can improve efficiency, performance and utilization, facilitate data collection and maximize return on investment while identifying and reducing waste.
The program is meant to align investments with infrastructure priorities to deliver established levels of service in a fiscally responsible manner.
The City has a multitude of competing spending priorities and limited resources. As the City continues to grow, the need to make sustainable decisions is essential to ensure that the best actions are taken regarding the use of City assets, like roads, bridges, sewers, libraries, etc. To that end, the City has embraced asset management as a core business function.
The asset management program helps the City to effectively invest limited resources into long-term capital plans by balancing risk, cost, and customer levels of service to ensure our assets are efficiently and properly managed. The program is meant to align investments with infrastructure priorities to deliver established levels of service in a fiscally responsible manner.
In short, it allows the City to make the right investment, at the right time, the right way.
Through the asset management program, the City can:
- Establish and implement best practices;
- Prioritize projects based on measurable city-wide benefit criteria;
- Improve the knowledge of existing assets;
- Collect data and apply it to drive decision-making;
- Lower overall cost of asset ownership; and,
- Make timely investments in key infrastructure to minimize the lifecycle cost of the asset.
An Asset Management Plan (AMP) documents an organization’s strategy for meeting defined service objectives through strategic infrastructure investment and business change over time. The AMP examines the relationship between service levels and the performance of existing assets, management practices and levels of investment, and to establish an improvement program to progressively address identified gaps and deficiencies.
The City Asset Management Plan (CAMP) summarizes the inventory, overall replacement value, age, and condition of all the City’s major asset groups and presents this information in a format that compares the data across various service areas. It also outlines the funding deficit and strategies associated with meeting assumed levels of service for existing and new infrastructure.
Put simply, the CAMP aims to answer the following fundamental questions:
- What do we own?
- What is it worth?
- How old is it? (What is the remaining service life?)
- What condition is it in? (How is it performing?)
- What is the infrastructure deficit?
As Winnipeg continues to grow at historically high rates, the need to make sustainable, well-timed infrastructure investments is essential to ensure the City continues to deliver high-quality services for residents.
The City Asset Management Plan (CAMP) provides a detailed consolidation and analysis of information on assets across all civic departments, including the historic distribution of capital funding for these assets over the last decade. Detailed information about the City’s infrastructure as a whole, including the state of existing assets, the assignment of value to needed improvements on existing and future assets, and the remaining service life of current assets has never been performed on this scale within the organization before.
The information gathered in the CAMP can be used to help inform future investment planning decisions and requested funding levels.
The infrastructure deficit represents the amount of capital funding not currently available to achieve the current level of service for existing infrastructure and support future development and growth by constructing new infrastructure.
The City’s 2018 infrastructure deficit is estimated at approximately $6.9 billion.
Fifty-eight percent (58%) of the infrastructure deficit is attributed to maintaining existing infrastructure, while the remaining 42% is attributed to new infrastructure supporting growth.
Converted to 2018 dollars, the 2009 infrastructure deficit equates to approximately $9.9 billion, compared to the approximately $6.9 billion infrastructure deficit reported this year – a $3 billion overall improvement.
Adopting a holistic overview, the City’s condition grade for tax-supported and Transit infrastructure is C+, whereas water and waste utilities’ asset conditions are B.
The difference is primarily due to the fact that the water and waste utilities have dedicated funding and are governed by significant regulatory and level of service requirements, compared to the tax-supported and transit asset base.
Combined, the City’s condition grade is B-.
The City’s current replacement value of all assets is approximately $35 billion.
Over the years, the City has seen a significant change in the amount and type of capital expenditures. While capital spending amounts vary by year, excluding 2016, it has averaged $430 million since 2007.
From 2010 to 2015, the City spent on average $689 per person, which is approximately $90 less per person from the multi city average. If the City spent a similar amount compared to the average, the capital expenditures would increase by approximately $65 million per year.
Capital Expenditure Per Capita - 6 Year Average
Over the next 10 years (2018 – 2027), it is estimated that approximately $4.0 billion will be allocated to infrastructure investments; however, that level of funding is not adequate to address the City’s infrastructure needs.
The deficit has identified a higher need to address existing infrastructure requirements compared to new infrastructure. This is due in part because many larger scale projects that are contemplated in the forecasted period are not currently funded. As the City continues to grow, increasing demands will be put on existing infrastructure and a balanced strategy for providing new infrastructure to an expanding population will be necessary.
View information on current major capital projects.
View information on unfunded major capital projects.