FY2023-FY2028 Adopted Capital Improvement Program

FY2023 Adopted Budget Capital Improvement Program

Asset Management The Capital budget makes two primary kinds of asset investment: acquisition of new assets and rehabilitation / replacement of old assets. Both types of investment have an impact on the Operating Budget. Timely rehab or replacement can minimize operating expenses by either actually reducing a current expense or avoiding a future expense. An example of this would be the replacement of heavy duty work truck that has reached the end of its economic useful life. Continued operation of such a vehicle often results in escalating maintenance costs as parts wear out and reduced productivity while the vehicle is out of service for repairs. Similar analogies can made for other asset classes such as buildings, roads, bridges and water and sewer systems. The FY2023 operating budget is benefitting from prior year capital investment in asset repair and replacement and has only minimal increases in the operating budget for maintenance expense. As an expense category, the FY2023 operating budget increase in repair and maintenance expense is $1,258,318, or 8.76%.

FY2022 FY2023 Budget Budget

Change

$

%

Repair/Maintenance Expense: 14,365,870 15,624,188

1,258,318 8.76%

Examples of expenses in this category include: road markings, roadway maintenance, building/grounds maintenance, equipment repair, radio maintenance, and fleet charges

The second type of operating budget impact is associated with new assets becoming operational. In FY2023 there are new costs associated with prior capital investment in parks, libraries, Watershed NPDES and the new Oak Street County building expansion. A park expansion will be operational for a portion of FY2023 adding $251,303 to the FY2023 budget. Also one library has operating costs in FY2023 budget, totaling $250,136. Maintenance expense for the Watershed NPDES compliance in FY2023 will add $736,216 to the budget. The building expansion at Oak Street operations has $401,075 added to the FY2023 budget.

In the year ahead, the County will be utilizing an Enterprise Asset Management (EAM) system to further improve this linkage between the operating and capital budgets. Scheduling and budgeting for the replacement of assets when they reach the end of their economic useful life will optimize use of the limited funding available. This in turn will prevent the County from creating a backlog of deferred maintenance resulting from underfunding infrastructure re investment.

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