Asset Financial Strategies
We also identify lifecycle investment requirements and appropriate funding strategies for completing the work. Includes both historical and future budgeted capital and operating expenditure and identifies the major funding sources. The future budgeted expenditure is compared to investment needs arising from the asset management strategy in order to identify any potential future funding shortfalls.
A. Expenditure classification
Interval method
Capital cost threshold method
Capital cost threshold method
B. Expenditure History
Introduction
Operating budget v. capital budget
Opex v. capex
Opex History
Capex History
Operating budget v. capital budget
Opex v. capex
Opex History
Capex History
C. Budget Forecasts
Introduction
Opex vs. capex
Whole life costs (WLC)
Opex Forecast
Capex Forecast
Opex vs. capex
Whole life costs (WLC)
Opex Forecast
Capex Forecast
D. Sources of Funding
Introduction
Alternative Sources
Grants
Reserve fund
Historical Sources
Predicted Sources
Alternative Sources
Grants
Reserve fund
Historical Sources
Predicted Sources
E. The infrastructure “Gap”
Definition/scope of the gap
Methods of calculating the gap
Size of the gap
Total gap by year
Gap by service area
Methods of calculating the gap
Size of the gap
Total gap by year
Gap by service area
F. Strategies for Addressing Shortfalls
Introduction
Financial stewardship principles
Types of Strategies
Asset Rationalization
Lower the LOS
Improve data confidence
Seek new funding sources
Implement maintenance optimization program
Optimize the funding mix
Implement debt management measures
Asset Management Strategies
Funding Strategies
Financial stewardship principles
Types of Strategies
Asset Rationalization
Lower the LOS
Improve data confidence
Seek new funding sources
Implement maintenance optimization program
Optimize the funding mix
Implement debt management measures
Asset Management Strategies
Funding Strategies