The initial capital cost of infrastructure is about 20% of the life-cycle cost; the other 80% largely represents a future unfunded liability. This is a driver for local governments in the Comox Valley to change the way they plan, finance, implement and over time replace infrastructure.
“We need to stop thinking about the Infrastructure Deficit as a funding problem. We need to see it as a Design Challenge,” writes Dr. Penny Burns, an internationally recognized economist who earlier this year participated in a program hosted by Asset Management BC. Penny Burns is acknowledged as the first person to write about Asset Management (in 1984).
“We need to stop thinking about infrastructure as a cost – and start thinking about how to ensure it is adding value. We need to stop thinking of ASSET Replacement and start thinking what FUNCTION OR SERVICE is really needed.”
SUSTAINABLE SERVICE DELIVERY: In British Columbia, the term Sustainable Service Delivery describes a new way of thinking about infrastructure needs and how to pay for those needs over time. The link between asset management and the protection of a community’s natural resources is emerging as an important piece in Sustainable Service Delivery.
Local governments can develop a truly integrated Asset Management Strategy that views the watershed and the strategy through an environmental lens. This outcome can be achieved through a front-end effort that connects with the community and gets the watershed vision right. To learn about how the four local governments in the Comox Valley are developing A Regional Response to ‘Infrastructure Liability’, click here.