Infrastructure

How It Works

Infrastructure spending includes both maintenance of existing assets and construction of new assets, classified under Census functional codes for highways (E44/F44/G44), water utilities (E91/F91), sewerage (E80/F80), solid waste (E81), airports (E01), parking (E60), and public buildings. Under GASB Statement 34, cities must capitalize infrastructure assets on their government-wide balance sheets and either depreciate them over estimated useful life (40-80 years for roads, 50-100 years for water mains, 75+ years for bridges) or use the "modified approach" that requires documented condition assessments at least every three years and maintenance sufficient to preserve established condition levels. The American Society of Civil Engineers (ASCE) consistently grades U.S. infrastructure at C- or D+ in its quadrennial Infrastructure Report Card; the 2021 report estimated a $2.6 trillion investment gap over 10 years to bring systems to acceptable condition. The Bipartisan Infrastructure Law (IIJA) signed November 2021 authorized $1.2 trillion in federal infrastructure spending over five years, with approximately $550 billion in new spending including major allocations to roads, bridges, water systems, broadband, and transit. Deferred maintenance is a common budget strategy that saves money today but creates 4-5x larger costs later per FHWA pavement management research: a pothole patched promptly costs $50, while reconstructing a deteriorated road costs $5,000+ per foot, and a water main replacement after failure costs 2-3x the proactive replacement cost plus substantial emergency response and litigation expenses. Flint, Michigan's 2014-2019 lead contamination crisis, which originated in deferred water system investment and corrosion-control shortcuts, has imposed over $1 billion in direct costs and settlements. Infrastructure condition and funding feed the capital budget (driving the 20% debt burden factor) and the 15% spending efficiency factor of the CitySpend Fiscal Health Score.

Related Terms

• Capital Budget, The portion of a city budget dedicated to long-term infrastructure investments like buildings, roads, vehicles, and technology systems.
• Capital Improvement Plan (CIP), A multi-year planning document that schedules and prioritizes major infrastructure projects, roads, buildings, utilities, and equipment.
• Deferred Maintenance, Maintenance and repairs that are postponed to save money in the current budget year, creating a backlog of unfunded repair needs that grows over time.