New Search
FUTURE FUNDING COMPARISON <br />Utilizing the PMS software, an analysis has been run for 4 future funding levels over a 10 year <br />period. The PMS software evaluates the deterioration of each segment based on the historic <br />individual OCI ratings. The software then projects when to apply the necessary treatment at the <br />proper time. An order of priority of treatment is set to select the "best first". This is considered the <br />most cost effective method. When possible, the system applies a less expensive treatment, earlier <br />in the degradation curve. The established annual funding level is applied to the treatment needs, and <br />then the annual distribution oftreatment types is developed. Ifthe established budget does not allow <br />for all of the treatment needs to be met, a remainder value (in dollars) is reported. This value is <br />commonly called the "additional needs" budget. On the three following pages, a graph of both, the <br />annual distribution oftreatment and the "additional needs" for each funding level has been provided. <br />An inflation factor of 2% annually has been applied to this forecast. The 2% value is based on <br />historic cost values as tracked by a published market study (ENR). <br />This initial graph has been provided which shows the projected "additional needs" of the system if <br />no treatment is performed over the next 10 years. This graph provides a base line for comparison <br />with the following proposed funding level results. <br />0 $ budget "Additional Needs" <br />$300,000,000 - _ -- _ - <br />Page 7 <br />