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The Nuts and Bolts of Capital Prioritization

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In the fall of 2007, the Hampton Roads Sanitation District (HRSD) initiated a process with the assistance of CH2M Hill to develop a comprehensive, systematic method for prioritizing its capital projects. Given financial constraints, a challenging regulatory environment for Chesapeake Bay nutrient compliance and sanitary sewer overflows, and the need to renew and replace aging infrastructure, HRSD needed to create an enhanced framework for prioritizing candidate projects for its capital improvement program (CIP). The prioritization process was implemented in two phases, which helped facilitate this significant procedural change and ensure buy-in from key stakeholders prior to full implementation into the CIP. Although there were a number of challenges, HRSD used a number of innovative tools and developed a conscientious plan that led to a successful implementation.
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Keywords: CIP; Capital improvement planning; capital budgeting; financial planning; prioritization

Document Type: Research Article

Publication date: 2009-01-01

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