Asset Management IQ Section VI





C. Does the organization target its rates and other revenue streams to adequately fund all long term costs, including both operations and maintenance (O&M) and capital investment/capital debt needs?
(Click on the answer that most accurately describes your situation.)

0 The organization’s rates and other revenue streams are not set based onanticipated expenses. (0 points)
The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, but do not take other expenses into account. (1 point)
The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as some extra revenue that is used for reserves and/or capital projects. The extent of revenue that is above O&M expenses is not tied to specific goals for funding reserves or capital projects. (2 points)
The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is not based on an assessment of long term asset investment needs. (3 points)
The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is based on an assessment of asset investment needs for the next 5 years or less. (4 points)
The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is based on an assessment of assetinvestment needs longer than the next 5 years. (5 points)



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