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The Labyrinth of Capital Planning and Budgeting for Water Infrastructure
Author(s) -
Baird Gregory M.
Publication year - 2010
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.2010.tb10144.x
Subject(s) - capital budgeting , capital (architecture) , business , economic capital , finance , financial capital , sustainability , fixed capital , cost of capital , plan (archaeology) , capital formation , process (computing) , economics , microeconomics , computer science , project appraisal , ecology , archaeology , biology , history , profit (economics) , operating system
This article discusses the process of capital planning and budgeting. Because water and wastewater utilities are the most capital‐intensive sectors in the economy, they require a more significant capital planning effort. Operating budgets and the increasing importance of capital planning and sustainability planning are discussed, along with the role of the finance officer, and the capital improvement plan (CIP). The article states that the fundamental long‐term view of a publicly owned utility should be focused on how future rate increases can be minimized by today's capital and operational decisions.