FY2021 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 FY2021 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 FY2021 operating budget increase in repair and maintenance expense is $418,057, or 3.22%. This percentage increase is generally in line with inflation rates for these types of expenses.

FY2020 FY2021 Budget Budget % Repair/Maintenance Expense: 12,986,567 13,404,624 418,057 3.22% 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 FY2021 there are new costs associated with prior capital investment in parks, fire stations, and health. Several park expansions will be operational for a portion of FY2021 adding $186,837 to the FY2021 budget. Also two fire stations openings have operating costs in FY2021 budget, totaling $1,598,501. A recreation specialist and associated expenses were also included for the Rock Creek Park School program.

In the year ahead, the County will be implementing 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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