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Category: Government

City of Shelby Water and Sewer Asset Management Plan

background

When planning for future capital projects, the management of a water and sewer system must consider the condition of existing assets including lines, pumps, storage, and treatment infrastructure. Often, this critical information is not written down or readily available. Instead, the information is in the minds of employees who gained the knowledge from years of experience operating the system. A collection of this vital information, organized in a useful way, was needed for the City of Shelby’s water and sewer system. Furthermore, the City needed to know how this information influenced its future capital needs and revenue requirements.

solution

Shelby CIP CoverWR-Martin was engaged by the City of Shelby to complete a Water and Sewer Asset Management Plan. The City’s fixed asset, GIS and mapping data were reviewed to determine the inventory of water and sewer system line assets, existing line assets not accounted for, and planned projects. Martin-McGill established a spreadsheet for organizing and presenting the raw information collected and categorized each asset into replacement classes. Our team estimated the reasonable expected useful life of each asset and calculated future annual replacement and refurbishment needs and the impact upon reserves. This information was used to create a capital improvement plan that better addressed the condition and needs of the City’s infrastructure.

A funding plan was established by preparing a financial analysis of the revenues and expenses associated with the water and sewer enterprise fund that projected revenues and expenditures, considered the requirements of asset replacements, and estimated appropriate annual allocations for capital outlay. Finally, a rate review was conducted that used the financial analysis as the basis for establishing the present and future needs for new revenues from water and sewer rate increases. Rate changes were recommended that addressed future revenue requirements and drought legislation.

result

At the conclusion of the engagement, City staff possessed a clear, organized database of its water and sewer assets that could be updated as new assets and information is acquired. Furthermore, the City have a strategy for funding the needed infrastructure investment required for maintaining a high level of service to customers. This information also provides support to City staff when funding is requested for capital needs, promotes financial sustainability, and encourages better understanding and support of the water and sewer systems by City leaders and residents.