Local governments are facing a unique set of challenges to maintaining critical infrastructure: aging facility portfolios and deferred maintenance backlogs, compounded with rising energy costs and uncertain funding. From city halls and libraries to water treatment plants and public safety buildings, leaders are being asked to do more with less while maintaining efficient and reliable public services.
To meet these challenges, municipalities must shift from reactive infrastructure maintenance to proactive, strategic capital asset planning. This transition isn’t just about fixing what’s broken—it’s about building resilience, optimizing budgets and aligning infrastructure investments with long-term community goals.
The cost of inaction on capital asset planning
Modern capital assets form the backbone of reliable local service delivery. Yet, deferred maintenance and reactive budgeting have left many communities vulnerable. According to the Government Finance Officers Association (GFOA), “deferring essential maintenance or asset replacement could reduce the organization’s ability to provide services and threaten public health, safety and overall quality of life”.
In short, maintenance is deferred until systems fail, leading to emergency repairs that disrupt operations and drive up costs. This cycle opens up local governments to increased financial risk and reduced community trust.
Many municipalities lack comprehensive insight into their assets’ condition, lifecycle costs and maintenance requirements. The American Society of Civil Engineers (ASCE) reinforces this in its 2025 Infrastructure Report Card, urging US public sector leaders to adopt smarter asset management practices, high-quality data and predictable long-term financial road mapping. Without these tools, governments risk overspending on emergency repairs, underinvesting in critical systems and missing opportunities to align infrastructure with long-term goals.
Creating a strategic capital asset plan
Smart capital asset planning is a data-driven, forward-looking approach to managing public facilities. It starts with a comprehensive inventory of assets—HVAC systems, IT infrastructure, public works equipment and more—and builds toward a dynamic roadmap that guides investment decisions long term.
Here are six capital asset planning best practices that local governments can adopt:
1. Prioritize Capital Improvement Projects by Impact
A well-designed capital improvement roadmap should address immediate needs while laying the financial foundation for long-term resilience. Prioritize infrastructure projects that safeguard operational continuity, reduce operational and maintenance costs and support future growth. GFOA also recommends including condition assessments, lifecycle cost analysis and prioritization based on health, safety and service delivery.
2. Leverage Asset Data for Smarter Decisions
Facility data—such as equipment age, performance metrics and usage trends—can help leaders identify which assets are at risk of failure and which can be deferred. As ASCE notes, “project owners should implement asset management systems that track the condition and performance of infrastructure assets to maximize the value of their investments.”
3. Integrate Capital Planning and Financial Planning
Capital decisions should be tightly integrated with financial planning, including debt management and fund balance guidelines. This ensures capital decisions are not made in isolation but are part of organization-wide fiscal and operational strategy. To overcome funding barriers, local governments can explore public-private partnerships like Energy Savings Performance Contracts (ESPCs). Bundling capital improvement projects can also streamline procurement and maximize impact.
4. Streamline Maintenance Workflows
Modern capital asset planning platforms now include integrated work order systems, allowing staff to submit service requests, track labor and material costs and schedule preventive maintenance. This reduces downtime, improves staff efficiency and ensures that maintenance is proactive rather than reactive.
5. Engage Stakeholders to Promote Transparency
Transparent planning builds trust. When communities understand how and why infrastructure decisions are made, they’re more likely to support funding initiatives and complex investments. Public involvement also ensures that capital plans reflect community values and priorities.
Go from reactive to resilient with smarter Capital Asset Planning
Smart capital asset planning isn’t just a best practice—it’s a strategic imperative. By adopting data-driven tools and long-term planning frameworks, local governments can protect public assets, maximize taxpayer dollars and build a more resilient future.
Ready to move from reactive maintenance to strategic infrastructure planning? Learn how Capital Asset Planning from Schneider Electric can help your organization build a smarter capital asset roadmap.
