Asset Sustainability Ratio / VTrans
The Vermont Agency of Transportation (VTrans) includes asset value-related performance measures in its TAMP to help communicate financial stewardship. VTrans calculates an asset sustainability ratio (ASR) (estimated annual investment divided by the annual investment required to offset asset depreciation) for NHS pavements and bridges. An ASR over 100% implies that investments are sufficient to offset depreciation. Not only does VTrans calculate ASR for these assets, but it also predicts future changes to ASR under different revenue growth assumptions over a twenty year period. This prediction shows that without revenue growth, ASR will decline over time and VTrans’ investments will increasingly be outpaced by depreciation, resulting in deteriorating asset conditions. Depending on the circumstance, these measures can be used to make the case for additional funding to support asset management activities or to show an agency is efficiently deploying its resources.
Additional Resource
Vermont Agency of Transportation https://vtrans.vermont.gov/sites/aot/files/planning/documents/2022%20TAMP%20Update%20-%20FINAL.pdf
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