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Report To: General Government Committee
Date of Meeting: June 1, 2026 Report Number: FSD-025-26
Authored by: Jaclyn Paterson, Manager, Financial Planning/Deputy Treasurer
Submitted By: Trevor Pinn, Deputy CAO/Treasurer, Finance and Technology
Reviewed By: Mary-Anne Dempster, CAO
By-law Number: Resolution Number:
File Number:
Report Subject: 2026 Asset Management Plan Update
Recommendation:
1.That Report FSD-025-26, and any related delegations or communication items, be
received for information.
GG- 104- 26
Municipality of Clarington Page 2
Report FSD-025-26
Report Overview
the Municipality’s 2025 Asset Management Plan (AMP), as
1. Background
1.1 In 2016, the Provincial Government passed the Infrastructure for Jobs and Prosperity
Act, which gave the province the authority to guide municipal asset ma nagement
planning through regulation. This was followed, in late 2017, by the introduction of O.
Reg. 588/17, which established the standard content to be included in all Asset
Management Plans in the Province of Ontario.
1.2 In 2019, the Municipality approved its Strategic Asset Management Policy in
accordance with O.Reg 588/17, this is the first requirement of the regulation.
1.3 In 2022, the Municipality completed its first AMP in accordance with O. Reg 588/17. The
2022 Asset Management Plan was required to include only the core assets of roads,
bridges, culverts, and stormwater infrastructure.
1.4 In 2024, the Municipality completed the next iteration of the AMP by building a plan
consisting of only the remaining non-core assets. This AMP was approved by Council in
June 2024 and consisted of assets such as parks, fleet, information technology, and
facilities.
1.5 In 2025, The Municipality completed the next iteration of legislated asset management
requirements. This AMP combined and updated the information from the previous plans
to create a single consolidated AMP. The 2025 Asset Management Plan included
additional requirements, such as proposed service level targets and a fina ncing strategy
to address the estimated infrastructure gap.
1.6 Going forward, the Municipality is required to review and update its plan at least every
five years.
1.7 According to the regulation, every council is required to conduct an annual review of its
asset management progress on or before July 1 each year. This review will address:
a) The municipality’s progress in implementing its asset management plan;
Municipality of Clarington Page 3
Report FSD-025-26
b) Any factors impeding the municipality’s ability to implement its asset
management plan; and
c) A strategy to address the factors described in (b) above.
1.8 Financial Planning has put together the 2026 Asset Management Plan Update
(Attachment 1) in accordance with the requirements of the regulation.
1.9 The update highlights progress since the 2025 Asset Management Plan was adopted
and is necessary to keep track of asset management needs, maintain staff alignment,
and identify where additional support is required.
1.10 As part of this update, Financial Planning has produced report cards that provide a
visual summary for each asset category.
2. 2026 Asset Management Plan Update - Overview
2.1 The 2026 Asset Management Plan (AMP) Update provides refreshed financial and
condition data on the capital infrastructure assets owned and operated by the
Municipality of Clarington. This update presents changes that have occurred since the
2025 AMP was adopted.
2.2 Each asset category is presented with a report card, which provides inventory and
condition information, updates lifecycle and financial assump tions, and reports on
progress toward levels of service targets.
2.3 The replacement value of Clarington’s assets increased from $3.4 billion in 2025, to
$3.5 billion in 2026, which is an increase of by $105.4 million or 3.2%.
2.4 Approximately 19.7% of this change is attributable to additional assets purchased,
whereas the rest of the change is due to revised cost estimates and/or inflation.
2.5 Overall, 27% of assets are in Very Good condition, 42% are in Good condition, 13% are
in Fair Condition, 16% are in Poor condition, and 2% in Very Poor condition. When
combined, the Municipality has 81.4% of assets in Fair or better condition.
2.6 As of December 31, 2025, the Municipality is meeting 47% of its proposed levels of
service targets.
2.7 The Municipality remains on track to close the Infrastructure Gap and reduce the
accumulated replacement backlog over a 20-year period, as adopted in the 2025 AMP.
2.8 It is important to note that this AMP Update represents a snapshot in time and is based
on both a series of assumptions and the best information available to staff at the time of
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Report FSD-025-26
development. As these assumptions change over time, the underlying data will be
updated and refined to ensure the information remains relevant and accurate.
3. Financial Considerations
Not Applicable.
4. Strategic Plan
Monitoring our progress on an annual basis ensures alignment with the Municipality’s
vision of building a sustainable, creative, and caring community by maintaining or
improving proposed service levels consistent with the Clarington Strategic Plan . This
supports strategic plan priority L.2.5: Maintain, protect and invest in Municipal
infrastructure and assets.
5. Climate Change
The AMP addresses the Municipality’s climate change goals by incorporating lifecycle
activities that advance the goal of achieving net zero green house gas emissions by
2050.
6. Concurrence
Not Applicable.
7. Conclusion
It is respectfully recommended that the Municipality’s 2026 Asset Management Plan
Update, as presented in Attachment #1, be approved to meet the legislative
requirements of providing annual Asset Management Plan Updates to Council by July 1
of each year.
Staff Contact: Jaclyn Paterson, CPA, Manager, Financial Planning/Deputy Treasurer,
jpaterson@clarington.net.
Attachments:
Attachment 1 – 2026 Asset Management Plan Update.
Interested Parties:
There are no interested parties to be notified of Council's decision.
2026 Asset
Management
Plan Update
Attachment 1 to Report FSD-025-26
Asset Management Plan Update 2026 | 2
Table of Contents
Overview ...................................................................................................................................................... 3
Purpose ..................................................................................................................................................... 3
Methodology ............................................................................................................................................. 3
Changes from 2025 Asset Management Plan .......................................................................................... 3
Replacement Cost .................................................................................................................................... 3
2026 Category Replacement Cost Distribution ........................................................................................ 4
Summary of Asset Conditions (by cost).................................................................................................... 4
2026 Condition Distribution....................................................................................................................... 5
Infrastructure Gap ..................................................................................................................................... 5
Levels of Service Targets.......................................................................................................................... 5
Implementation Challenges ....................................................................................................................... 7
Corporate Facilities Report Card ............................................................................................................... 8
Corporate Fleet Report Card .................................................................................................................... 10
Emergency Services Report Card ........................................................................................................... 12
Information Technology Report Card ..................................................................................................... 14
Parking Infrastructure Report Card ......................................................................................................... 16
Parks Report Card..................................................................................................................................... 18
Recreation, Community, and Culture Report Card ................................................................................ 20
Transportation Infrastructure Report Card............................................................................................. 22
Bridges and Culverts ................................................................................................................................ 24
Roads Report Card ................................................................................................................................... 26
Stormwater Management Report Card ................................................................................................... 28
Asset Management Plan Update 2026 | 3
Overview
Purpose
In accordance with the provincial asset management regulation, O. Reg 588/17, this
2026 Asset Management Plan Update provides Council with an annual review of
Clarington’s asset management progress relative to the 2025 Asset Management Plan.
This update summarizes progress since the 2025 Asset Management Plan was
adopted. It refreshes inventory and condition information, updates lifecycle and financial
assumptions, and reports on progress toward levels of service targets. This helps the
Municipality keep asset management work visible, maintain alignment between staff
and leadership, and identify where additional support is needed.
Methodology
The methods used to determine replacement costs, assess asset conditions, and
perform other calculations are consistent with those used in the 2025 Asset
Management Plan. As a result, the methodological details are not repeated in this
update.
The data in this update reflects municipal assets owned as of December 31, 2025, and
incorporates information from the 2026 budget. Some assets scheduled for replacement
were ordered or reconstructed in 2025 but had not yet been delivered or placed into
service by December 31, 2025. These assets are not included in this update and will be
captured in the 2027 update. This most significantly affects Information Technology,
where many replacement items are scheduled to be placed into service in 2026.
Roads inventory, condition ratings, and replacement schedules are based on the Roads
Needs Study. Similarly, Bridges and Culverts data is derived from the Structure Report.
At the time the 2026 update was prepared, the data used in the 2025 Asset
Management Plan was still the most recent available. As a result, condition ratings,
inventory, and replacement costs for these assets remain largely unchanged. Significant
changes in condition ratings are not expected, except where improvements have been
made, given the long useful lives of these asset types.
Changes from 2025 Asset Management Plan
Replacement Cost
The replacement value of Clarington’s assets increased from $3.4 billion to $3.5 billion
—an increase of $105.4 million (3.07%) from 2025. Of this change, 80.33% is
attributable to revised cost estimates and/or inflation, and 19.67% reflects additional
assets purchased. See the asset category report cards for details.
Asset Management Plan Update 2026 | 4
2026 Category Replacement Cost Distribution
Summary of Asset Conditions (by cost)
As of December 31, 2025, 81.4% of assets were in fair or better condition, a slight
decline from 2025, when 81.8% of assets were in fair or better condition. This is due
to some assets with shorter useful lives, such as vehicles and IT equipment, reaching
the end of their expected useful lives in 2025 but not yet being replaced. In addition,
2.2% of assets in poor or very poor condition are budgeted to be replaced in 2026.
Stormwater Management
7% Transportation Infrastructure
7%
Bridges and Culverts
6%
Parking Infrastructure
1%
Corporate Facilities
4%
Emergency Services
0%
Recreation, Community,
and Culture
17%
Corporate Fleet
Information Technology
0%
Roads
Asset Management Plan Update 2026 | 5
2026 Condition Distribution
Infrastructure Gap
The 2025 Asset Management Plan estimated an average annual infrastructure gap of
$10,426,000, based on an average annual funding requirement of $48,449,000 and
average annual available funding of $38,023,000. In 2025, actual capital spending was
$21.1 million, and the 2026 capital budget is $33.2 million. While both amounts are
below the estimated average annual funding requirement, capital spending increased
following adoption of the 2025 Asset Management Plan.
It was expected that capital spending in 2025 and 2026 would be below the average
annual funding requirement identified in the 2025 Asset Management Plan. As a result,
the accumulated backlog is expected to continue to increase in the near term,
consistent with Council’s decision to close the funding gap and reduce the accumulated
backlog over a 20-year period. The 2026 capital budget was increased by $1,392,000,
consistent with Council’s selection of Option 4 in the 2025 Asset Management Plan.
Based on current projections, the Municipality remains on track to follow that funding
strategy.
Levels of Service Targets
When the 2025 Asset Management Plan was prepared, the Municipality was meeting
47% of its levels of service targets. In the 2026 update, that figure remained at 47%,
although the specific targets being met had changed.
Very Good
27%
Good
Fair
Poor
Very Poor
Asset Management Plan Update 2026 | 6
The following targets are now being met:
• Minimum average pavement condition index of 60 for urban paved roads
(2026 – 61.51, 2025 – 59.02)
• Minimum average surface condition of 60 for unpaved roads
(2026 – 76.70, 2025 – 58.07)
• Have 6 pieces of outdoor fitness equipment
(2026 – 13, 2025 – 2)
The following targets are no longer being met:
• Minimum average pavement condition index of 60 for rural paved roads
(2026 – 57.07, 2025 – 62.88)
• Minimum average pavement condition index of 60 for semi-urban paved roads
(2026 – 59.46, 2025 – 60.24)
• 100% of emergency services assets related to fire suppression in fair or better
condition
(2026 – 98%, 2025 – 100%)
No changes have been made to the levels of service targets since the 2025 Asset
Management Plan.
Asset Management Plan Update 2026 | 7
Implementation Challenges
Over the past year, the Municipality encountered the following implementation
challenges
Challenge Strategy
Limited time frame – the 20-year plan
has been in effect for only one year.
Implementation will take time. Continuing
to provide annual updates will help monitor
progress and keep staff and Council
replacement costs are largely based on
inflated historical costs because current
cost data is limited.
current replacement cost data from recent
tenders and project closeout information
assessment considers likelihood of failure
but does not include consequence of
matrix that incorporates both likelihood
and consequence of failure for use in
exceed the Consumer Price Index. construction-specific escalation where
capacity requires employees to balance
asset management work with other
departmental work plans, clarify
governance/roles, and provide training.
calculation method tends to overstate the assessing building conditions.
redirected to expansion projects at the
expense of maintaining existing assets.
should consider the lifecycle costs of new
assets, as well as the maintenance and
inventory, condition, and maintenance cost
data for non-core assets require greater
reliance on historical data and age-based
where possible; develop additional master
plans (e.g., Fleet); bring Library asset
tracking in-house; and conduct a