The City of Germantown is responsible for significant physical assets including a utility system, streets, drainage system, fire stations, parks and other assets. The City believes that stewardship of City assets is essential to deliver high-quality services to its customers consistently and effectively. The City will review the Infrastructure Replacement Program (IRP) schedule on an annual basis to ensure assets are being replaced when their useful life exceeds value. This objective will be obtained as the City maintains an adequate fund balance and revenues over expenditures. This strategy ensures that assets will be replaced as indicated by the City’s IRP schedule.
Fully funded asset renewal
A local government is financially sustainable if the government is able to maintain its financial and infrastructure capital over the long term. An Asset Sustainability Index measure looks forward to assess whether the infrastructure investiment allows sustainable conditions into the future, preferably for a time horizon of at least 10 years.
At this time, this measure is still under development. The City staff are continuing to research various organizations to compare the use of an IRP criteria. Based on previous quarters research, the most widely used criteria is based upon an overall formula that is nationally known for infrastructure replacement. This calculation can be used by the City to clearly identify if the infrastructure replacement is a "want" versus is a "need". Also, City staff will research through GFOA and CEDCP for best practices when looking at fully funding asset renewal. Over the past fiscal year, city staff was able to define which category is an infrastructure replacement project (IRP) or assets for the City. Developing a policy will assist the City in focusing on preservation (needs) as opposed to capaciy (wants) during the development of the infrastructure replacement plan.
The City has a high ability to impact this measure.