Ayres Knowledge Center Infrastructure Asset Management | 页面 5
Hiring limitations present another challenge. This is particularly problematic in the wake of reduced
revenue coming from the state. Many municipalities are struggling to fill positions because they simply
don’t have the financial resources to do so. Finding available qualified personnel is another issue. With
upward wage adjustment in private industry outpacing the public sector – and the lure to more highly
technical careers – fewer qualified people are interested or available to fill municipal positions at the
local level. This appears to be the situation across the board. Many communities find it difficult to
recruit even summer help, let alone permanent positions.
Challenges – From the Financial Side
Additional challenges of managing and maintaining infrastructure include limited funding. This could be
caused by:
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Tax increase restrictions
Higher priority needs
Economic growth
Material and labor costs
Fewer grants
Lower bond ratings/less borrowing capacity
We can only increase our revenue by the amount of economic growth that’s going on in the community.
Many communities have higher-priority needs, and public health and safety always seem to come ahead
of everything else. Most communities tend to be reactive in nature. We want to help them change that
perspective.
Funds required for economic growth often are diverted to new development rather than taking care of
existing infrastructure. It’s natural to get excited about new endeavors, building and extending roads,
installing utilities. The infrastructure already inside the communities is forgotten or given a low priority
for repairs and preventive maintenance work.
Labor and material costs will continue to escalate, which stresses budgets.
Fewer grants and other types of state and federal funding are available to do maintenance or
replacement projects, and many communities are dealing with reduced borrowing capacity. They’ve
already extended themselves for some projects, and with limited borrowing capacity they are not able
to take care of the remaining high-priority infrastructure projects.
Industry consolidation is another factor. Considerable consolidation has taken place over the last
decade, both in the construction industry and in the engineering world, with mergers and acquisitions,
company growth opportunities, and new marketing strategies. This has reduced the quantity of bids
submitted for infrastructure projects, which typically escalates project costs based on supply and
demand economics.
What Are Some Consequences of Delaying Needed Maintenance?
First and foremost, it could cause an interruption of services. If our infrastructure isn’t properly
managed and maintained, and something fails that we can’t immediately fix, residents will be
understandably upset. Unsafe roads due to pavement conditions, poor lighting, or lack of proper traffic
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