A plan to manage council assets

In accordance with the Queensland Local Government Act (2009), Sunshine Coast Council has developed and adopted long-term asset management plans for all of its major infrastructure assets.

Finance and Water Portfolio Councillor Chris Thompson said the long term asset management plan would continue for at least 10 years or until earlier adoption of a new long-term asset management plan.

"The long term asset management plan must provide for strategies to ensure sustainable management of the assets mentioned in the local government asset register and infrastructure of the local government," he said.

"It must also state the estimated capital expenditure for renewing, upgrading and extending the assets for the period covered by the plan and be integrated with the long-term financial forecast."

Council has developed core asset management plans for all major infrastructure assets with a current replacement cost as of 30 June 2012 of $3.8 billion for the following asset groups:

• Transportation – includes roads, pathways and bridges - $2.24 billion
• Stormwater – includes pits and pipes - $984 million
• Parks and Gardens – includes playgrounds, park furniture - $95 million
• Waste Resource Management – $45 million
• Holiday Parks - $26 million
• Coastal and Environmental – includes canals, revetment walls, fencing - $57 million
• Buildings and Facilities – includes corporate and community facilities - $367 million

Cr Thompson said the seven combined asset management plans have an assumed rehabilitation and renewal gap of $28 million per annum.

"The assumed rehabilitation and renewal gap will be further validated and reported back to council during the 2013/2014 budget development, as data is further cleansed, systems integrated and processes refined as part of the asset management improvement program," he said.

The seven core asset management plans currently have endorsed renewal funding for 2013/2014 within the capital works program of $45.9 million. Council will need to undertake an annual review of capital works priorities and commitments through the budget process to comply with the asset sustainability ratio of 90% by 2016/2017.

It is proposed that council will progressively work towards meeting this ratio through a staged increase in annual renewal funding and reprioritisation of existing capital works funding as follows:

• 2012/2013 – adopted renewal funding-approximately $46million
• 2013/2014 – proposed ratio of 75% - approximately $55 million
• 2014/2015 – proposed ratio of 80% - approximately $59 million
• 2015/2016 – proposed ratio of 85% - approximately $63 million
• 2016/2017 – proposed ratio of 90% - approximately $67 million