CPRE Capital Improvement Planning and Asset Management

Question 1

What is the primary purpose of a Capital Improvement Plan (CIP) in parks and recreation agencies?

Accepted Answer

To plan and prioritize major infrastructure and asset investments over a multi-year period

Answer

To manage daily operating expenditures and payroll

Answer

To document staff performance evaluations and training needs

Answer

To establish annual programming schedules for recreation centers

Question 2

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?

Accepted Answer

Revenue bond

Answer

General obligation bond

Answer

Tax increment financing

Answer

Special assessment district

Question 3

An asset management system in parks and recreation primarily helps executives to:

Accepted Answer

Inventory physical assets, assess conditions, and prioritize maintenance and replacement

Answer

Track employee certifications and training records

Answer

Manage membership databases and program registrations

Answer

Monitor social media engagement and marketing analytics

Question 4

What does a 'Level of Service' (LOS) standard help a parks agency determine in capital planning?

Accepted Answer

The acreage, facility types, and amenities provided per capita or per unit of population

Answer

The salary schedule for part-time recreation staff

Answer

The marketing budget allocation for each program category

Answer

The number of volunteer hours required per event

Question 5

Which tool is most commonly used to systematically evaluate the condition of park facilities and prioritize capital investment?

Accepted Answer

Facility condition index (FCI)

Answer

SWOT analysis

Answer

Market penetration rate analysis

Answer

Net promoter score survey

Question 6

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?

Accepted Answer

Accelerating asset deterioration that leads to exponentially higher future replacement costs

Answer

Reduced marketing reach and brand awareness

Answer

Decreased number of social media followers

Answer

Lower staff satisfaction scores on annual surveys

Question 7

Which of the following best describes a 'pay-as-you-go' capital funding strategy?

Accepted Answer

Setting aside current operating revenues each year to fund capital projects without incurring debt

Answer

Borrowing funds today and repaying them through future revenues

Answer

Leasing facilities from private developers to avoid upfront costs

Answer

Using federal grants as the sole source of capital investment