Asset condition refers to the current state of repair and functionality of municipal infrastructure and facilities like roads, water pipes, buildings, and equipment. Municipalities assess asset condition through inspections, testing, and monitoring to understand whether infrastructure is in good shape or deteriorating. Condition ratings (often on scales like 'good, fair, poor, critical') help prioritize maintenance and replacement decisions. Understanding asset condition is essential for planning and budgeting—infrastructure in poor condition needs attention soon, while assets in good condition can have maintenance deferred. Letting conditions deteriorate too far often costs more than timely preventative care.