Life Cycle Modeling for Utility Infrastructure in Municipal Entities

Abstract

The current development stage of utility infrastructure is characterized by structural changes resulting from the existing property rights, as well as institutional, organizational, economic, concessional, innovative, and resource-saving mechanisms, the accelerated introduction of new technologies and materials, and the implementation of actions aimed at the reduction of physical and functional depreciation of facilities. The key objectives of managing the reconstruction, upgrade, and repairs of the public utility sector (PUS) facilities include the sustainable development, update, and operation of the housing stock and utility infrastructure (UI), preservation, and technical operability of structures and utility systems. Therefore, the public utility services currently require new strategic planning methods for the social and economic development of the PUS as a key element of municipal entities based on the use of reproduction policy tools throughout the utility infrastructure life cycles and the improvement of project and program approaches necessary to ensure the investment in the sector and facilitate the interactions between the municipal entities, business community, and residents. This article deals with the methodological approach to the life cycle modeling for utility infrastructure in municipal entities based on balancing the phases and innovation activities concerning the features of utility service production and consumption and the necessity to use digital and smart-city technologies to maintain proper operational modes and parameters throughout the life cycles of utility infrastructure units. This requires accelerating reproduction processes, maintaining the best proportion of capital and current costs, expected profitability, and management risks for utility property portfolio.