[CANUFNET] Tangible Capital Asset Registry - Reporting Trees and
Philip van Wassenaer
pwassenaer1022 at rogers.com
Fri Mar 21 08:37:11 EDT 2008
This is a great idea but deciding how we value our trees and being able to
defend that is a big challenge. Valuation of trees is a hot topic and the
Guide to Plant Appraisal is being hotly debated at this time. We need to be
in line with some standard for NA and that is in flux right now.
Sorry to throw another curve in here.
I do think that this would be a great topic for discussion and consensus
but we all need to be face to face to hash it all out...I think.
Cheers
Philip van Wassenaer
Urban Forest Innovations
Mississauga, Ontario
-----Original Message-----
From: canufnet-bounces at list.web.net [mailto:canufnet-bounces at list.web.net]
On Behalf Of Dirk Brinkman
Sent: Thursday, March 20, 2008 10:56 AM
To: Canadian Urban Forest Network
Subject: Re: [CANUFNET] Tangible Capital Asset Registry - Reporting Trees
and
Don't let this discussion go to your head.
The maintenance budget appropriate for managing any asset is 'as little as
possible'.
Because the urban ecosystem is built, the value of a tree is the cost of
replacing it-- until that value is degraded by the nuisance factors of
trees, a main diet on this network.
So a trees TCV, when it is strategically placed and highly aesthetic, may be
in the thousands of dollars. But the fact that the average life span of an
urbane tree in North America is seven years suggests that the discount from
the best laid plans being overlaid by better plans will warp the capital
value frequently requiring constant capital adjustments on the balance
sheet. In fact the image I immediately get is not of an urban forest but the
rustling paper leaves of a grove of lawyers and accountants quietly
responding to the latest breeze from the planning department. The risk of a
TCV is that the cost of maintaining it is higher than the budget for
maintaining the health of the actual trees.
To prevent the skillful automatic billing devices that drive lawyers and
accountants offices overwhelming the laid back urban foresters harmonizing
with the blessed slow changes in urban forests I agree, we need to have one
common system for entering and maintaining a TCA Urban Tree registry.
Perhaps this is just a long way of saying that over-valuing has its own
pitfalls.
Thanks
Dirk
Dirk Brinkman, CEO
Brinkman & Associates Reforestation Ltd Canada Brinkman y Asociados
Reforestacion Centro America SA Brinkman Forest Restoration Ltd IBC Barbados
520 Sharpe St. New Westminster, BC V3M 4R2 Canadian Off: 604 520 2800;
fax:604 520 1968; Cell: 604 787 4033
web: www.brinkmanforest.com
Vision: To be recognized as the best at forest ecosystem renewal, world
wide.
Mission: We deliver innovative ecosystem-based solutions for restoring and
sustaining forests.
-----Original Message-----
From: canufnet-bounces at list.web.net
[mailto:canufnet-bounces at list.web.net] On Behalf Of Mike James
Sent: March 18, 2008 4:35 PM
To: canufnet at list.web.net
Subject: [CANUFNET] Tangible Capital Asset Registry - Reporting Trees
and
Re: Tangible Capital Asset Registry - Reporting Trees and
Urban Forest Assets
Open letter to Urban Foresters
It seems to me that this is a golden opportunity that should not be
allowed to pass. In the end power is all about who has the money and
Urban Forestry has traditionally never had the money or the power.
The Tangible Capital Asset Registry is an opportunity to change that.
Imagine if instead of the cost of planting trees being an on going
expense to the municipality, the cost was "capitalized" and shown on the
balance sheet as a municipal asset.
Then the Urban Forester would be a manager in charge of X million
dollars of assets that required a maintenance budget to preserve the
value of that asset - just like an engineer!
Even better - a proper economic model can be made that an urban forestry
asset, on the municipality's balance sheet, will appreciate instead of
depreciating like the engineer's assets.
Now you are in the position of asking for capital dollars to spend on
assets that will appreciate over time and increase the balance sheet of
the city and its credit rating...Furthermore, it puts you in a position
to demand that urban trees be planted properly so that they are able to
grow to maturity and realize their "full financial value"
I do not have to tell Urban Foresters that there are many resources to
put a financial value on urban trees that would meet the criteria of any
public sector accountant.
Pollution abatement, rainwater/stormwater management, heat island
cooling, increase in property values, increase in retail sales...
All of these are measurable - they just need to be pulled together in a
financial model/format for an accountant.
It is my proposal to the Urban Forestry community that you strike a
committee to come up with a standardized formula to value your urban
trees.
Then take this document to the PSAB and make a submission that not only
are urban forests municipal assets that have a quantifiable value - they
are in many cases some of the most valuable assets a city has.
Need some encouragement? Just go ask your CFO how he would feel about
adding X million dollars to his balance sheet with out spending a dime!
Mike James
-----Original Message-----
From: canufnet-bounces at list.web.net
[mailto:canufnet-bounces at list.web.net] On Behalf Of
canufnet-request at list.web.net
Sent: Tuesday, March 18, 2008 6:22 AM
To: canufnet at list.web.net
Subject: CANUFNET Digest, Vol 40, Issue 7
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Today's Topics:
1. Re: " Gypsy Moth - Saturday March 15" - Actually the date is
Sat. April 5th Carol (JMCNEIL at oakville.ca)
2. Re: Tangible Capital Asset Registry - Reporting Trees and
Urban Forest Assets (pwynnyczuk at richmondhill.ca)
----------------------------------------------------------------------
Message: 1
Date: Mon, 17 Mar 2008 13:37:31 -0400
From: JMCNEIL at oakville.ca
Subject: Re: [CANUFNET] " Gypsy Moth - Saturday March 15" - Actually
the date is Sat. April 5th Carol
To: HHuffman at oakville.ca
Cc: BBeesley at Oakville.ca, Peter Williams <forstar at execulink.com>,
CHudd at oakville.ca, Canadian Urban Forest Network
<canufnet at list.web.net>, "Dave \(MNR\) Boddington"
<dave.boddington at ontario.ca>, e.cass at oakville.ca,
j.phoenix at oakville.ca
Message-ID: <OFFFAC2F92.59FE173C-ON8525740F.0060D1A0 at oakville.ca>
Content-Type: text/plain; charset="utf-8"
My understanding is that you will:
Receive and record rsvp's
Make a sign up sheet
Order lunch and arrange for delivery at Central Ops. By 11:45am
Arrange the large boardroom and confirm with Ed keys to open and close
our
building on Saturday, April 5th
Order laptop and projector for Friday April 4th and ask IT to set up and
troubleshoot
Pete will obtain 100 bags from Brenda and stuff them and distrbute them
on
the Oakville Transit bus that Joanne is providing
Lead the afternoon Workshop thru Bronte Creek Park
Anything else Pete?
--------------------------
Sent from my BlackBerry Wireless Handheld
----- Original Message -----
From: Heather Huffman
Sent: 03/10/2008 10:14 AM EDT
To: John McNeil
Cc: Carol Hudd
Subject: Re: " Gypsy Moth - Saturday March 15" - Actually the date
is
Sat. April 5th Carol
Hi John,
Would you mind clarify for me and Carol which items you would like us to
take care of for Saturday, April 5th and which ones you wish for Peter
to
handle? Thanks
Heather Huffman
Supervisor of Office Services
Central Operations Facility
hhuffman at oakville.ca
Central Operations
1140 South Service Road West
Oakville, Ontario, L6L 5T7
Tel. (905) 845-6601, Ext: 3888
Fax: 905 338 4227
Mailing Address:
Town of Oakville
P.O. Box 310, 1225 Trafalgar Road
Oakville, Ontario, L6J 5A6
http://www.oakville.ca/
Privacy Statement:
This message, including any attachments, is intended only for
the person(s) named above. This material may contain
privileged, confidential or personal information which is
subject to the provisions of the Municipal Freedom of
Information & Protection of Privacy Act. Any other
distribution, copying or disclosure is strictly prohibited. If
you are not the intended recipient or have received this
message in error, please notify us immediately by telephone,
fax or e-mail and permanently delete the original transmission
from us, including any attachments, without making a copy.
John McNeil/Parks
and Open
Space/Oakville
To
Carol Hudd/Central Operations
03/06/2008 10:27 Public Works/Oakville at Oakville
AM
cc
Heather Huffman/Central
Operations
Public Works/Oakville at Oakville,
Ed
Cass/Central Operations Public
Works/Oakville at Oakville, "Philip
van Wassenaer"
<pwassenaer1022 at rogers.com>,
Brenda
Beesley/Communications/Oakville at Oak
ville
Subject
Re: " Gypsy Moth - Saturday March
15" - Actually the date is Sat.
April 5th Carol(Document link:
HEATHER HUFFMAN)
ok
Pete- will your staff please take care of this role for me please?
John McNeil, MBA, Registered Professional Forester, Certified
Arborist/Municipal Specialist
Manager of Forestry & Cemetery Services
Parks & Open Space Department
jmcneil at oakville.ca
? Urban Forestry is the Front Line of Defence against Global
Climate Change ?
Central Operations
1140 South Service Road West
Oakville, Ontario, L6L 5T7
Tel. (905) 845-6601, Ext: 3395
Mailing Address:
Town of Oakville
P.O. Box 310, 1225 Trafalgar Road
Oakville, Ontario, L6J 5A6
http://www.oakville.ca/
Carol
Hudd/Central
Operations Public
To
Works/Oakville John McNeil/Parks and Open
Space/Oakville at Oakville
03/06/2008 08:54
cc
AM Heather Huffman/Central
Operations
Public Works/Oakville at Oakville
Subject
Gypsy Moth - Saturday March 15
(Embedded
image moved (Embedded image moved to file: pic08683.jpg)
to file:
pic20215.jpg)
Hi, John:
I'm sorry that I will not be able to help you out on March 15th with the
Gypsy Moth event taking place at Central Operations/Bronte Provincial
Park.
When we were talking I didn't realize that the 15th was a Saturday, and
I
happen to have a family commitment that weekend. If you feel that a
'clerk' is required for that day we can try to accommodate you.
John, I will be happy to arrange for the delivery of food for you again
and
this can be discussed early next week, when we know how many people we
might be expecting. The beverages can be ordered ahead of time as well,
but arrangements for the pick up of same will have to be sorted out;
Chris
Vava did this for us last year.
Please let us know your thoughts.
Thank you.
Best regards,
Carol Hudd
Senior Stenographer
Roads and Works Operations
chudd at oakville.ca
Town of Oakville
1225 Trafalgar Road
Oakville, Ontario, L6J 5A6
Tel. (905) 845-6601, Ext: 3327
Fax: 905-338-4227
Mailing Address:
Town of Oakville
P.O. Box 310, 1225 Trafalgar Road
Oakville, Ontario, L6J 5A6
http://www.oakville.ca/
http://www.oakville.ca/privacy_statement.htm
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Message: 2
Date: Mon, 17 Mar 2008 09:04:48 -0400
From: pwynnyczuk at richmondhill.ca
Subject: Re: [CANUFNET] Tangible Capital Asset Registry - Reporting
Trees and Urban Forest Assets
To: Canadian Urban Forest Network <canufnet at list.web.net>
Message-ID:
<OF6B1E633B.058BB47C-ON8525740F.0046F020-8525740F.0047D5F3 at richmondhill.
ca>
Content-Type: text/plain; charset="us-ascii"
Hello Russell,
My understanding is that Trees are not going to be part of the process
as
they do not have to be accounted as a tangible capital asset.
This is part of a project called PSAB 3150
If you can access this site http://www.amcto.com/home.asp
There is an interpretation from the Association in a newsletter within
the
site.
I have been advised by our Finance Staff that we do not have to pursue
this.
Hope this helps
Regards,
Peter Wynnyczuk
"Friesen, Russell" <Russell.Friesen at calgary.ca>
Sent by: canufnet-bounces at list.web.net
03/14/2008 06:41 PM
Please respond to
Canadian Urban Forest Network <canufnet at list.web.net>
To
"Canadian Urban Forest Network" <canufnet at list.web.net>
cc
Subject
[CANUFNET] Tangible Capital Asset Registry - Reporting Trees and Urban
Forest Assets
Tangible Capital Asset Registries are topic that has great implications
for municipal forestry operations across the country, but I am pretty
sure
most CANUFNET subscribers have probably never even heard of it. Around
2005, the Public Sector Accounting Board (PSAB) recommended that
governments including municipalities report "Tangible Capital Assets"
(TCA) on their balance sheets. In Alberta, this recommendation became
law
and is now a legislative requirement commencing Jan. 1 2009. The
Province
of Ontario also appears to have similar requirements, and many
municipalities in that jurisdiction are well on their way to reporting
TCA.
Unfortunately, there does not appear to be a standard practice or
consensus on how to report trees. The advice given by the PSAB isn't
specific and opinion from other sources is contradictory, ranging from
don't report the value of trees, to report the value of trees that were
planted with a purpose (like visual screening), to report the value
trees
as if they were converted to pulp wood.
Most municipalities involved in building TCA registries have hired
consultants to aid with the developing the reporting process. In some
cases the same consultants have been hired by several municipalities,
but
for ethical reasons the consultants can't share what one municipality is
doing with another municipality. All this results in a dearth of
guidance
and information about how to report trees and the urban forest in a
Tangible Capital Asset Registry.
Therefore, I think that it is important for municipal foresters to share
with each other what they know about TCA registries, what their TCA will
report, how their reporting policy is worded and how they are going to
track, collect and manage their asset reporting in subsequent years. .
So now for my questions.
Which other municipalities are in the process of building their TCA?
How are you planning on reporting trees?
Have you tried to make the case that tree appreciate in value rather
than
depreciate? ... and how did that go?
Are you using historic costs of acquisition (planting) for your starting
point and depreciating from there?
Are you reporting individual trees or lumping trees into a general
average
land improvement value?
What is your useful lifespan for a tree?
How are you taking into account vintages?
And my final question, does anybody - anywhere, understand this?
Thank You
Russell Friesen
Urban Forestry Coordinator
City of Calgary Parks
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