CPRE Capital Improvement Planning and Asset Management 3

Question 1

Which of the following is the best indicator that a parks agency has an effective asset management program?

Accepted Answer

The agency maintains a current inventory of all assets with condition ratings and projected replacement schedules

Answer

An effective asset management program is built on a comprehensive, up-to-date inventory with condition assessments and replacement timelines that drive proactive capital planning decisions.

Question 2

Tax Increment Financing (TIF) can fund parks capital projects by:

Accepted Answer

Diverting a portion of property tax revenue growth within a defined district to fund public improvements

Answer

TIF captures the incremental increase in property tax revenues resulting from rising property values within a designated district, directing those additional funds to finance public infrastructure improvements including parks.

Question 3

When a parks agency applies for a Land and Water Conservation Fund (LWCF) grant for a capital project, what is a key compliance requirement attached to the award?

Accepted Answer

The property must remain available for public outdoor recreation in perpetuity (conversion restriction)

Answer

LWCF grants impose a conversion restriction requiring that funded parkland remain in public outdoor recreation use permanently; converting or selling the property requires federal approval and typically replacement with land of equal value.

Question 4

Which capital project delivery method transfers design and construction risk to a single private entity responsible for both functions?

Accepted Answer

Design-build (DB)

Answer

In a design-build contract, a single firm handles both design and construction, providing the owner with a single point of accountability and often delivering projects faster and with greater cost certainty.

Question 5

A parks director wants to demonstrate the return on investment (ROI) of a proposed aquatic center to the governing board. Which data would BEST support the capital investment decision?

Accepted Answer

Projected operating revenues, expenses, community health benefits, and comparable market feasibility data

Answer

A compelling ROI analysis combines projected financial performance (revenues vs. operating costs) with quantified community benefits and local market feasibility data to give the governing board a defensible basis for the decision.

CPRE - Certified Park and Recreation Executive Practice Test

CPRE - Certified Park and Recreation Executive Practice Test

CPRE Capital Improvement Planning and Asset Management 3