Perfect Storm for Cities and Municipalities with Falling Tax Revnues and Aging Assets

The League of Cities recently had an article in Public Works Magazine about the impact of the subprime mortgage and how it will effect them. There will be compounded negative effects with the economy slowing and cutting into sales and income tax revenue at the same time that property values are declining due to the rising home foreclosures. Find the article here:

http://pwmag.com/industry-news.asp?sectionID=0&articleID=792896

With all of this bad news, finding a way to prioritize maintenance and capital repairs is more important then ever. This is a key ingredient of any good Asset Management program, which should identify and recognize risk and the probability and consequences of failures. The following video provides details of how a relative criticality might be completed:



If you are trying to identify where to spend your limited revenue consider how you can use a risk based filtering system to make sure you are spending on the right projects.