CHAPTER 1:
Maximize Your Budget with Clear Project Prioritization
At any given time, most municipalities have long lists of capital improvement needs.
As these lists grow with needs that may range across a wide variety of projects, identifying a clear starting place can become increasingly difficult. For many municipalities, this overwhelming need can stall progress. For others, it may mean taking on projects without first taking time to identify strategies to rein in the budget.
Having a clear, up-to-date needs assessment on hand is critical. Such proactive planning gives municipalities greater control over project costs because an accurate assessment of maintenance and capital improvement needs allows municipalities to ensure that they’re able to move forward with construction as soon as funding becomes available.
Proactive planning gives municipalities greater control over project costs.
While it might be simpler to prioritize projects based solely on a checklist, it is important to gain input from all stakeholders when prioritizing large projects.
Evaluate current and future asset needs
Asset management is a simple yet effective tool to help municipalities stretch their construction budgets. By prioritizing construction project needs, asset management practices can provide a clear pathway for progress. This prioritization makes it possible to take action on a project when it makes the most financial sense to do so.
Asset management begins with conducting an accurate inventory of all of your departmental or agency assets and assessing their condition. This information should help identify which assets need maintenance versus replacement or help plan how to move forward with one option versus another based on certain funding scenarios. For example, you may determine that holding off on maintenance to a particular road that is currently in fair condition may mean creating a far more expensive project in five to ten years.
Engineering partners can often assist with asset management determinations to help municipalities decide the most appropriate path forward. This may include recommendations about which projects to perform now to save money in the years ahead, or where maintenance can be reduced for assets that will be ready for replacement in a few short years.
Align priorities across all stakeholders
While it might be simpler to prioritize projects based solely on a checklist, it is important to gain input from all stakeholders when prioritizing large projects. Having these conversations early is critical because agencies may find that the needs they have prioritized internally don’t always align with stakeholders’ priorities.
These key stakeholders might include city staff, engineers, planners, and consultants. However, stakeholders should also include the communities impacted by construction. Securing insight from your communities about their priorities through early public engagement will ultimately help build community support for projects as they move into construction.
Connect with peers for shared opportunities
The capital improvement projects for which you’re budgeting may be unique to your department. However, many municipal projects provide mutual benefit to other communities or agencies. This overlap may create an opportunity for shared funding that can help move certain projects higher on your improvement list.
For example, the state might recognize the need for a new interstate interchange to help address traffic issues or reduce long gaps between exits. However, this is the type of project that can also stimulate economic growth in surrounding communities by providing easier access. Joint funding across counties and with the state can drive such a project significantly higher on an asset improvement list.
Even if joint funding is not a possibility, chances are high that other nearby communities have dealt with similar budgetary pressures. Connecting with peers at other municipalities may provide insight about strategies that can help guide your master planning and asset improvements. These connections may provide further guidance about how to keep your future construction projects on budget.
