[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” _builder_version=”4.16″ _module_preset=”default” positioning=”none” horizontal_offset_tablet=”” horizontal_offset_phone=”” horizontal_offset_last_edited=”on|tablet” custom_margin=”0px||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”0px|||0px|false|false” custom_padding_tablet=”|||25px|false|false” custom_padding_phone=”” da_disable_devices=”off|off|off” global_colors_info=”{}” custom_padding__hover_enabled=”on|desktop” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” custom_padding__hover=”0px|||0px|false|false”][et_pb_row _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”16px” sticky_enabled=”0″]<\/p>\n
<\/p>\n
Water, wastewater, and stormwater systems have many activities that must be completed each day, month,\u00a0and year. These activities\u00a0require\u00a0both time and money.\u00a0Unlimited resources ensure that all activities can be completed; however, endless time and money do not exist.\u00a0The funding, staff, and time available must be used efficiently and effectively to ensure that priority activities are completed and that the most critical assets are\u00a0maintained\u00a0and replaced when needed.\u00a0To help decide how best to spend the limited dollars, a strategic\u00a0asset management\u00a0framework is needed.<\/span>\u00a0<\/span><\/p>\n The asset management framework is\u00a0required\u00a0to\u00a0determine\u00a0how to\u00a0maintain\u00a0the desired level of service in the most efficient way possible (i.e.\u00a0the lowest life cycle cost.)\u00a0\u201cEfficient\u201d and \u201clowest life cycle cost\u201d do not mean\u00a0no\u00a0cost. These words signify a need to properly fund the system through a sustainable, long-term funding strategy. This core\u00a0component\u00a0supports efforts\u00a0that ensure\u00a0the level of service\u00a0desired\u00a0by the customers can be provided and the necessary resources are available to complete the activities described in the current state of the assets, criticality, and life cycle costing.<\/span>\u00a0<\/span><\/p>\n The two key concepts associated with this core\u00a0component\u00a0are \u201clong-term\u201d and \u201csustainable.\u201d It is important that the funding be sustainable, meaning that it comes from renewable sources. Most often, in the case of water and wastewater systems, renewable funding is in the form of user charges or user fees.\u00a0As long as customers are being served and are able to pay their regular bills, there is a recurring source of funds.\u00a0It is for this reason that water and wastewater systems are\u00a0generally considered\u00a0safe and secure investments. It is important that this recurring or renewable funding be used for most, if not all,\u00a0day-to-day\u00a0activities for the system. It is important that user fees be examined regularly (yearly is best)\u00a0and\u00a0rates should be increased to at least match the level of inflation. The\u00a0best-case\u00a0scenario is that rate increases match actual increases in water expenses but in many cases, rate increases are tied to a set percentage or to an unrelated metric such as the consumer price index.<\/span>\u00a0<\/span><\/p>\n Additionally, the funding plan needs to\u00a0consider\u00a0long-term\u00a0needs. Since the majority (by cost) of the assets are long lived, it\u00a0is\u00a0best\u00a0if\u00a0 the\u00a0funding plan covers a\u00a0time frame\u00a0that matches the life of the\u00a0longest-lived\u00a0assets. In many cases, this can be 75 to 100 years as pipes and storage tanks\u00a0can last that long.\u00a0Clearly, costs\u00a0that far into the future are rough, order of magnitude estimates at best. However, they can provide guidance to elected leaders and decision-makers that there is a need to fund projects far into the future. What is most important to avoid is a situation in which the funding plan covers 10 or 20 years\u00a0only.\u00a0If investments\u00a0for time past year 20\u00a0are not recognized, the decision-makers may decide to put off\u00a0a major\u00a0construction projects that could put assets and service in jeopardy. Putting off the project may leave the system with too large\u00a0of a debt requirement to meet all the needs in those later years. If it is not possible to\u00a0project out\u00a0100 years, considering funding for at least 50 years, and\u00a0no fewer than\u00a020 years, is recommended.<\/span>\u00a0<\/span><\/p>\n Alternatively, if the system does not yet have enough data to develop planning level replacement costs for the\u00a0100-year\u00a0period right away,\u00a0the\u00a0goal should be to do as many years as possible and then work up to a funding plan for the 100-year window. Because green infrastructure is still relatively new compared to gray infrastructure, planning costs over the next 50 to 100 years in the future may be difficult. One\u00a0option\u00a0is to make the best guess possible and revise the estimates as more information becomes available. The practice of costing future green infrastructure investments will mature as systems start practicing asset management more routinely.<\/span>\u00a0<\/span><\/p>\n Funding options vary from within the utility or municipal budget to external grants and loans\u00a0ro\u00a0community approved bonds. Knowing the difference between each funding opportunity and the costs that each\u00a0option\u00a0can cover is important so that staff and decision makers can\u00a0utilize\u00a0available funding sources appropriately and effectively. Creative approaches to\u00a0utilizing\u00a0both public and private funding can support seamless transitions between projects while continuing with daily maintenance and operations.<\/span>\u00a0<\/span><\/p>\n Things to consider when evaluating various funding opportunities:<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Long-Term Funding Water, wastewater, and stormwater systems have many activities that must be completed each day, month,\u00a0and year. These activities\u00a0require\u00a0both time and money.\u00a0Unlimited resources ensure that all activities can be completed; however, endless time and money do not exist.\u00a0The funding, staff, and time available must be used efficiently and effectively to ensure that priority activities are completed and that the most critical assets are\u00a0maintained\u00a0and replaced when needed.\u00a0To help decide how best to spend the limited dollars, a strategic\u00a0asset management\u00a0framework is needed.\u00a0 The asset management framework is\u00a0required\u00a0to\u00a0determine\u00a0how to\u00a0maintain\u00a0the desired level of service in the most efficient way possible (i.e.\u00a0the lowest life cycle cost.)\u00a0\u201cEfficient\u201d and \u201clowest life cycle cost\u201d do not mean\u00a0no\u00a0cost. These words signify a need to properly fund the system through a sustainable, long-term funding strategy. This core\u00a0component\u00a0supports efforts\u00a0that ensure\u00a0the level of service\u00a0desired\u00a0by the customers can be provided and the necessary resources are available to complete the activities described in the current state of the assets, criticality, and life cycle costing.\u00a0 The two key concepts associated with this core\u00a0component\u00a0are \u201clong-term\u201d and \u201csustainable.\u201d It is important that the funding be sustainable, meaning that it comes from renewable sources. Most often, in the case of water and wastewater systems, renewable funding […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-875","page","type-page","status-publish","hentry"],"yoast_head":"\n\n
\n
\n