Measure Description

City Asset Sustainability measures the extent to which the City is reinvesting in its existing, non-utility infrastructure compared to the amount of reinvestment required to bring infrastructure to an acceptable condition. The measure is the three-year rolling average of the ratio of the actual capital infrastructure renewal expenditure divided by the required capital infrastructure renewal expenditure. The actual renewal expenditures are derived from the Capital and Operating Budget System (COBS). The renewal requirements are defined by the City’s Risk-based Infrastructure Management System (RIMS).

A ratio of 1.0 or greater indicates the actual renewal investment in infrastructure equals or exceeds the recommended renewal investment. A result equal to 1.0 is generally positive for the City. It suggests the “right investment at the right time.” A ratio of less than 1.0 indicates the actual renewal expenditures are insufficient to meet the specified levels of performance.

This may eventually lead to lower levels of service to Edmontonians and increase the rehabilitation costs in the future.

Measure Importance

The measure summarizes the City’s renewal investment trends and provides useful information for long-range financial planning, short-term improvement programs or public budgeting decisions. Effective renewal extends the life of assets, allowing them to perform as intended—saving the City money over the long term. The measure can help show how decisions made today will dictate the future state and condition of City infrastructure assets.

Historical Data

Data source: Financial and Corporate Services, City of Edmonton.

Explanation of Performance

The 2017 result of 0.94 indicates the City is under its 1.00 target, with a 3-year rolling average of 0.94 ending in 2017. It does show, however, an increase from the 2016 result, and suggests it is trending toward the TWA target of 1.00. The delay in reaching the target can be explained by a renewal spending lag in the face of increased renewal allocations in the approved 2015 - 2018 Capital Budget over the 2012 - 2014 Capital Budget. Business areas require adequate time to react and adjust spending in order to align with the higher renewal allocations. In addition, it could also be attributed to a greater degree of actual spending on design and planning, rather than (higher cost) construction in the first two years of the 2015 - 2018 Capital Budget, and a ramp up in 2017, which will continue in 2018.

There has been a continued focus on renewal investment through the Capital Budget. Forty-two percent of the overall budget has been allocated to renewal from 2015 - 2018.

Did You Know

The measure provides a summary of the City's renewal investment trends. It also provides useful information for long-range financial planning, short-term improvement programs or public budgeting decisions. Effective renewal extends the life of assets and allows assets to perform as they are intended - saving the City money over the long term. Use of the measure can help show how decisions made today will dictate the future state and condition of City infrastructure assets.

Useful Links

For information about the City's strategic plan, The Way Ahead: http://www.edmonton.ca/city_government/city_vision_and_strategic_plan/the-way-ahead.aspx