Lake of Bays 2025 Asset Management Plan identifies long-term funding gap

The report notes a $3 million funding gap each year

Township of Lake of Bays Council received the municipality's 2025 Asset Management Plan identifying a long-term funding gap, during its July 14^th, 2026, meeting.

The plan, outlined by Arunas Kalinauskas of R.J. Burnside and Associates, included an overview of the Township's infrastructure, long-term funding needs and strategies to manage assets over their life cycle.

The presentation outlined a municipal asset replacement value of approximately $165.8 million, with infrastructure generally rated in good condition and carrying a weighted average useful life of 38 years and an average remaining service life of 18 years. Overall risk was identified as moderate.

Assets assessed in the plan include roads, bridges, culverts, sidewalks, signs, streetlights, guardrails, docks, trails, catch basins, vehicles, equipment, IT hardware and software, facilities and fire assets.

The presentation reported that the plan establishes levels of service by identifying expected performance, maintenance requirements, acceptable service levels and the risks associated with failing to maintain infrastructure.

Long-term strategies include maintenance, rehabilitation, replacement and expansion activities aimed at extending asset life while controlling costs.

The presentation noted that the Township currently invests about $694,000 annually in capital asset replacement. However, based on lifecycle needs, annual investment requirements are estimated to be approximately $3.64 million, creating a significant long-term funding gap.

To help address that gap, the proposed financing strategy recommends gradually increasing reserve contributions, considering debt where appropriate, using available grants and incorporating the asset management plan into annual budget deliberations. The presentation also indicated the Township's projected debt capacity would remain well below the provincial repayment limit over the 10-year forecast.

Kalinauskas advised that overall, the Township is “being managed incredibly well, compared to other provincial municipalities.” However, he suggested they “look beyond 10 years” and consider 20-30 years ahead in their next plan because of the 18-year life cycle of some assets, therefore, they can “be better prepared” regarding replacements and upgrades.

Additional best practices include directing annual surpluses to capital reserves, using existing reserves where appropriate, reinvesting savings achieved through debt elimination and updating the financing strategy as new information becomes available.

Council approved the 2025 Asset Management Plan, which will help guide future budget deliberations and update the plan as required as municipal priorities change.

Mayor, Terry Glover, said, “Council should be proud of the fact that we’re doing a fantastic job of how we’re doing the budget.”