FY2025-FY2030 Adopted Capital Improvement Program

FY2025 Adopted Budget Capital Improvement Program Budget Calendar

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 FY2025 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 FY2025 operating budget increase in repair and maintenance expense is $2,820,095, or 16.22%.

FY2024 FY2025 Budget Budget % Repair/Maintenance Expense: 17,387,367 20,207,462 2,820,095 16.22% Change $

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 FY2025 there are new costs associated with prior capital investment in parks, new buildings, Watershed-NPDES and the new LEAPS system. A park School at Valley Elementary School will add $255,233 to the FY2025 budget. Also, a couple IIT projects such as LEAPS for $1,028,806 will add to the FY2025 budget and IIT Systemics of $600,000. Maintenance expense for the Watershed NPDES compliance in FY2025 will add $736,216 to the budget. The new buildings being added to the County over the years has added square footage which increased maintenance expenses of $229,410 added to the FY2025 budget. In the years 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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