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HomeMy WebLinkAboutJuly 30, 2025 - Special CouncilTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM SPECIAL COUNCIL MEETING AGENDA MUNICIPAL OFFICE 56169 Heritage Line, Straffordville, ON Council Chambers – HYBRID Wednesday, July 30, 2025 6:00 p.m. The July 30, 2025 Special Council Meeting will allow for a hybrid meeting function. You may attend in person or virtually through the live-stream on the Municipality of Bayham’s YouTube Channel 1. CALL TO ORDER 2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF 3. PRESENTATIONS A. Watson & Associates Economists Ltd. re Asset Management Plan – Financial Strategy 4. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL A. By-law No. 2025-050 Being a by-law to confirm all actions of Council 5. ADJOURNMENT Council Presentation July 30, 2025 Municipality of Bayham Asset Management Plan –Financial Strategy 0 Ontario Regulation 588/17 Background & Context 1 1-Jan-18 1-Jul-19 1-Jul-20 1-Jul-21 1-Jul-22 1-Jul-23 1-Jul-24 1-Jul-25 Strategic Asset Management Policy Asset Management Plans - Current Levels of Service Asset Management Plans - Proposed Levels of Service Deadline for completion Update -Current levels of service -Asset (inventory) analysis -Current performance of assets-Lifecycle activities and costs to maintain current levels of service -Impacts of growth on current levels of service -Proposed levels of service -Proposed performance of assets-Lifecycle activities and costs to achieve proposed levels of service -Financial strategy -Impacts of growth on proposed levels of service -Risk assessment Core municipal infrastructure assets All municipal infrastructure assets Project Phases Asset Management Plan Development 2 •The Municipality’s Asset Management Plan (A.M.P.) was completed in 2020 for all assets. The A.M.P. contained: •Summary information on all infrastructure assets; •Levels of service being provided by assets; •Summary of lifecycle management strategies; •10-year forecast of lifecycle activities related to maintain current levels of service and to achieve the proposed levels of service; and •Annual funding targets •This presentation provides the Financial strategy that outlines how the municipality plans to fund the forecast of lifecycle activities and long-term lifecycle funding requirements, which includes the proposed level of service that has been recently evaluated by the Municipality. Replacement Cost Breakdown Asset Overview 3 Asset Category 2025 Replacement Cost Tax Supported Core Assets 102,857,974$ Tax Supported Non-Core Assets 17,066,154$ Tax Supported Assets 119,924,128$ Water Assets 14,173,805$ Wastewater Assets 37,583,541$ Rate Supported Assets 51,757,346$ Total 171,681,474$ Lifecycle Costing – Tax Supported 4 Asset Category Annual Lifecycle Cost Tax Supported Core Assets Road Network 2,770,507 Bridges & Culverts 536,608 Buildings 98,461 Vehicles 423,556 Machinery & Equipment 41,385 Land Improvements 9,673 Storm Water Network 840,309 Non-Core Assets Buildings 525,168 Vehicles 197,649 Machinery & Equipment 96,875 Land Improvements 303,298 Total Tax Supported 5,843,490 Lifecycle Costing – Rate Supported 5 Asset Category Annual Lifecycle Cost Water Assets Water Network 1,185,085 Buildings 9,909 Vehicles - Machinery & Equipment 7,145 Land Improvements - Total Water 1,202,139 Wastewater Assets Sanitary Sewer Network 2,449,039 Buildings 602,753 Vehicles 32,123 Machinery & Equipment 126,534 Land Improvements - Total Wastewater 3,210,449 Grand Total 4,412,589 Lifecycle Funding Gap Assessment – Tax Supported 6 Funding Requirement Current Funding Lifecycle Funding Gap Assessment – Rate Supported 7 Funding Requirement Current Funding Tax Bill Analysis – Average Single-detached House (CVA of $250,000) Lifecycle Funding Gap Assessment – Tax Supported 8 Estimated increase of $845 to close the funding gap Funding the gap by 2034 Tax Supported Financial Forecast 9 $0.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Reserve Fund Balance (Year-end)Net Operating Expenditures Debt Servicing Costs (P&I)Capital Expenditures - Non-D.C. Debt Proceeds Grants, Donations, and External Recoveries Tax Levy Revenue Lifecycle Funding Target Note:The lines representing "Tax Levy Revenues", "Grants",and "Debt Proceeds" are stacked Tax Levy increasing at 7.6 % annually. With estimated assessment growth of 1.3 % annually, the estimated annual increase to tax bills is 6.2%. Based on 5% increases Tax Supported Financial Forecast 10 Funding the gap by 2034 Rate Supported Financial Forecast 11 $0.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Reserve Fund Balance (Year-end)Net Operating Expenditures Debt Servicing Costs (P&I)Capital Expenditures - Non-D.C.Debt Proceeds Grants, Donations, and External RecoveriesWater and Wastewater Revenue Lifecycle Funding Target Note:The Lifecycle Target Funding line includes the Operating Expenditures Water Revenues increasing at 14.2% annually. Wastewater Revenues increasing at 20.2% annually. Based on 2024 Rate Study increases Rate Supported Financial Forecast 12 Recommendations The following recommendations are provided for the Municipality’s consideration: 1.That the Municipality of Bayham’s Asset Management Plan Financial Strategy be received and approved by Council 2.That the Municipality of Bayham’s Asset Management Plan Financial Strategy Report be finalized and approved, subject to Council feedback 3.That consideration be made as part of the annual budgeting process to ensure sufficient capital funding is available to implement the asset management plan 13 THE CORPORATION OF THE MUNICIPALITY OF BAYHAM BY-LAW NO. 2025-050 A BY-LAW TO CONFIRM ALL ACTIONS OF THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM FOR THE SPECIAL COUNCIL MEETING HELD JULY 30, 2025 WHEREAS under Section 5 (1) of the Municipal Act, 2001 S.O. 2001, Chapter 25, the powers of a municipal corporation are to be exercised by the Council of the municipality; AND WHEREAS under Section 5 (3) of the Municipal Act, 2001, the powers of Council are to be exercised by by-law; AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it advisable that the proceedings of the meeting be confirmed and adopted by by-law. THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS: 1. THAT the actions of the Council of The Corporation of the Municipality of Bayham in respect of each recommendation and each motion and resolution passed and other action by the Council at the Special Council meeting held July 30, 2025 is hereby adopted and confirmed as if all proceedings were expressly embodied in this by-law. 2. THAT the Mayor and Clerk of The Corporation of the Municipality of Bayham are hereby authorized and directed to do all things necessary to give effect to the action of the Council including executing all documents and affixing the Corporate Seal. READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 30th DAY OF JULY, 2025. ____________________________ _____________________________ MAYOR CLERK