Why is this measurement important?
In addition to meeting community needs, effective asset management helps local governments meet their fiduciary responsibilities to taxpayers and helps ensure proper stewardship of public works, infrastructure, administrative accountability and public transparency.
Asset management helps municipalities maintain and operate infrastructure so critical services can be provided to the community. It helps provide municipal leaders with this information.
The performance of a community's infrastructure provides the foundation for its economic development, competitiveness, prosperity, reputation and the overall quality of life for its residents. Reliable and well-maintained infrastructure assets are essential for the delivery of critical core services for citizens.
How is this measured?
Taking the total value of assets to be maintained by the municipality and comparing it to the amount of lifecycle funding that has been allocated by Council. Lifecycle funds are allocated each year to be saved for future maintenance or replacement of the asset. It is similar to a homeowner saving funds each year knowing they will need to replace their roof in the future.