At the end of 2016, the board of directors hired a specialized professional firm, Miller Dodson, to conduct an analysis of all capital assets owned by the Association and leased to Westmoreland County as recreational assets of the Sanitary District. Their methodology was to conduct a “reserve study”, a common and widely accepted methodology that includes assets with a useful life of more than 1 year and whose value exceeds a certain amount. This analysis does the following:
- identifies each capital asset,
- evaluates its current condition based on physical inspection,
- estimates its remaining useful life,
- estimates its approximate replacement cost at the end of its estimated useful life, and
- calculates by fiscal year the amount of monies that need to be set aside each year, the reserves, to fund these replacements when they are needed.
While “reserve studies” are valuable and well respected tools, they assume funds will be set aside, “in reserve”, to be available as needed to deal with projected needs.
Westmoreland County has a different approach for addressing capital improvements and maintenance needs, and so we now refer to this study and the on-going process of integrating its findings into the County’s system as the Glebe Harbor-Cabin Point Planning Study. Updates will be posted as available.