Government provides assets to deliver public value and public good through both public and private entities. All the programs and interactions involved in providing services for a community depend on public assets. Basic public infrastructure like roads, water, drainage, schools, parks, libraries, public safety facilities, and other vital assets are maintained by all levels of government. In accomplishing their mission, governments often expand their roles and provide other categories of capital assets such as performing arts centers, convention centers, sports facilities and stadiums, economic development projects, airports, golf courses, and other major projects. These assets carry significant operational and capital costs, which may be fully or partially offset by revenues generated by the asset. Before undertaking these projects, governments should thoughtfully and fully evaluate the financial viability of new capital assets to determine if they are the most appropriate and efficient ways to deliver intended services.
This article provides overall guidance and recommends a thoughtful introspection into governments’ abilities to manage and oversee a capital asset—which is best done through lifecycle assessment of the asset over 20 to 30 years minimum
- Publication date: October 2024
- Authors: Collin Boothe, Brian Kennedy, Ashay Prabhu, and Kyle Wedberg, Ph.D.