Capital Improvement Planning and Asset Management Flashcards
7 cards from real CPRE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Capital Improvement Planning and Asset Management flashcards as text
What is the primary purpose of a Capital Improvement Plan (CIP) in parks and recreation agencies?
Answer: To plan and prioritize major infrastructure and asset investments over a multi-year period
A CIP is a multi-year financial planning tool that identifies, schedules, and funds major capital projects such as facility construction, renovation, and major equipment replacement.
Which funding mechanism allows a parks agency to issue debt backed by a dedicated revenue stream, such as facility user fees, to finance capital projects?
Answer: Revenue bond
Revenue bonds are secured by a specific income stream (e.g., user fees or admissions) rather than the full faith and credit of the government, making them common for self-sustaining park facilities.
An asset management system in parks and recreation primarily helps executives to:
Answer: Inventory physical assets, assess conditions, and prioritize maintenance and replacement
Asset management systems catalog all agency assets, record condition ratings, and help leaders make data-driven decisions about maintenance, rehabilitation, and capital replacement priorities.
What does a 'Level of Service' (LOS) standard help a parks agency determine in capital planning?
Answer: The acreage, facility types, and amenities provided per capita or per unit of population
LOS standards define the quantity and quality of parks and facilities a community should have relative to its population, guiding capital investment decisions to close service gaps.
Which tool is most commonly used to systematically evaluate the condition of park facilities and prioritize capital investment?
Answer: Facility condition index (FCI)
The Facility Condition Index (FCI) is calculated as the ratio of deferred maintenance costs to asset replacement value, providing a standardized metric for prioritizing capital repairs and replacements.
A parks executive discovers the agency has $2 million in deferred maintenance. What is the most significant long-term risk of not addressing deferred maintenance?
Answer: Accelerating asset deterioration that leads to exponentially higher future replacement costs
Deferred maintenance compounds over time; minor repairs left unaddressed escalate into major structural failures, often resulting in replacement costs far exceeding what timely maintenance would have required.
Which of the following best describes a 'pay-as-you-go' capital funding strategy?
Answer: Setting aside current operating revenues each year to fund capital projects without incurring debt
A pay-as-you-go strategy funds capital projects from current revenues or reserves, avoiding debt service costs but requiring disciplined multi-year savings and potentially slower project delivery.