Walden Helps Municipalities Develop Capital Improvement Plan and Rate Analysis Toolboxes for the NYS Asset Management Program

NYS Asset Management Program for Publicly Owned Treatment Works

Walden has been working with two New York State (NYS) municipalities as part of the NYS asset management program for municipalities to develop Asset Management Plans (AMPs) for Publicly Owned Treatment Works (POTWs), compliant with the standards set forth by the New York State Department of Environmental Conservation (NYSDEC) and the New York State Environmental Facilities Corporation (NYSEFC).

In previous blogs, we have spoken about asset inventory and condition assessment, establishing Level of Service goals, and developing staffing and retention plans. In this post, we will focus our attention on the development of capital improvement plan and rate analysis toolboxes.

Capital Improvement Plan Toolboxes

A Capital Improvement Plan (CIP) is a multi-year projection of potential projects and their estimated costs. This type of plan aims to create a system for municipalities to make informed financial decisions regarding the management of assets by allocating funds for improvement projects via Operation and Maintenance (O&M) budgets or CIP financing, as well as preventive or predictive maintenance activities.

The CIP toolbox is an Excel spreadsheet that helps municipalities distinguish the budgets that will be used to manage asset investment; thus, it includes all assets in the asset inventory. It also operates as a centralized database for identifying the condition of assets and determining whether they should be repaired, rehabilitated, or replaced based on the budget assigned to that asset.

The focus of the CIP toolbox is to plan for short-term (5–10 years) and long-term (10+ years) capital projects and estimate their costs. The CIP projects a 25-year period in which the lifespan of most of the assets in the asset inventory are nearing the end of their useful life, which is determined by a risk-based formula. For assets that are past their useful life or are in poor condition, a portion of the CIP should also be allocated towards investigating these assets and replacing them to increase overall resiliency as the CIP develops.

Rate Analysis Toolboxes

The rate analysis toolbox focuses on the sewer rate model of a municipality and determines sustainable ownership status. The data in this toolbox helps to ensure that the sewer system within the municipality can deliver the expected level of service by maintaining sufficient rates and stable sources of funding.

Data that is included in the sewer rate model toolbox includes all sewer related funds, such as beginning and ending cash balances, detailed revenue sources, detailed expenses, fund transfers, debt service schedules, capital improvement projects funding list, desired amount in a reserve account, and escalation (inflation) factors.

How Walden Can Help

Asset Management Programs are an initiative designed to support infrastructure improvements, promote informed financial decisions, and add transparency in resource allocation, while ensuring that POTW operators have the information needed to effectively manage the infrastructure their communities rely on. The key to a properly developed AMP is to have engaged and knowledgeable individuals construct a comprehensive plan, which can be communicated to and understood by all, with specific personnel assigned specific duties and responsibilities.

The experienced team of AMP professionals at Walden can help develop and maintain an asset management program specifically tailored to your needs. For more information about asset management programs or related tasks, contact Walden at 516-559-6976 to connect with an experienced AMP specialist today.