What is the Right Time Horizon for Investment Decision Analysis?

The contemporary sustainability agenda requires increased attention to quantify costs and savings and to reconsider the time horizon for traditional capital investment decision making.  The OEC wished to explore whether the city would have a higher return on its capital investments if the investment decision methodology took a longer-term horizon then is current practice and law.  To this end, the workshop team explored best practices among large public organizations from other jurisdictions that permit consideration of longterm operation and maintenance costs as part of the initial investment decision.  The team also analyzed the use of  risk management and/or cost/benefit tools, and how large public entities encourage project design and the use of innovative technology with future sustainability in mind.   Finally, students explored the statutory changes—at both State and local levels—that would be required for the City to implement these identified best practices.