News + Insights

Insights | October 1, 2020

Infrastructure asset management and budgeting in lean economic times

A recent article published by the FCCMA (Florida City and County Management Association) examines how local agencies are managing critical infrastructure in current economic times. The article makes a case for how to effectively navigate through these uncertain times while evaluating budget options through optimization analysis and preservation of aging assets. The end result is a good state of repair and improved network condition of infrastructure.

Good governance of any asset classification and infrastructure network begins with developing a program around the core principles of intelligent and SMART (S-sustainable, M-measurable, A-accountable, R-return on investment, T-technology) Asset Management:

1. Recognizing the economic value of assets;
2. Achieving economic efficiency and the optimization of expenditure over the asset’s life cycle;
3. Understanding the role of the agency as “steward” of the assets; and
4. Determining risk and financial projections based on identifying assets which are most important to your network, its needs, and safety.

By developing a roadmap through the implementation of the above-referenced business process, the agency can start to understand what the actual life cycle costs are to build, maintain, and operate assets owned by the jurisdiction.

For more information or to reference the article please visit FCCMA.

If you would like to examine the possibilities inside your agency please reach out to The Kercher Group or Addie Javed.