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Example Worksheet

The text in this topic relates to the Example Prioritization Worksheet.

Once the water system operator completes the System Inventory Worksheet, he begins to work with the system managers to prioritize the assets. A number of assets will require attention within the next five years. These assets are given the highest priority.

Even though the chlorinator has a longer remaining useful life than both well pumps and the electrical components, the system managers have assigned the chlorinator the highest priority. The delivery of safe drinking water and the system’s compliance with drinking water regulations depends on the chlorinator. The managers have also assigned a high priority to both well pumps and the electrical components of the pumphouse since consistent and adequate water delivery will be in jeopardy if these items are not replaced.

Deciding whether to assign the chlorinator, the pumps, or the electrical components a higher priority was a difficult decision, as all are integral to the operation of the water system. The managers know they will have to replace all of these assets if they expect to continue to provide their customers with safe drinking water. By completing the prioritization worksheet, however, the managers gave themselves some time to properly evaluate the situation, collect the necessary resources, and replace all critical assets according to a schedule that will work for the system.

The Prioritization Worksheet also helps the managers forecast future needs and allocate resources. The managers are able to inform the municipality that the distribution pipes will not require replacement for another 50 years. By not replacing the pipes before the end of their useful lives, the funds that might have been allotted to the pipe-replacing project can now be assigned to more critical projects, such as replacing the chlorinator.

The managers will need to decide how to fund the necessary rehabilitations or replacements. Based on the System Inventory Worksheet, many of the system’s assets will require major rehabilitation or replacement every 10 years. The remaining worksheets in this guide will help the system managers determine how much money they will need to reserve each year and whether current revenues can cover the costs of on-going operation and rehabilitation and replacement of all of these assets. If current revenues are insufficient, they will need to seek additional sources of funding.

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Instructions for the Worksheet   Step 3 – How Do I Plan for the Future?