Stormwater – Asset Management Plan · 2019-10-24 · This asset management plan is to demonstrate...

Stormwater – AssetManagement Plan

S2_V1 Capital - Forward Estimates Works Program

Endorsed May 2017

Reviewed December 2018

CITY OF VICTOR HARBOR – STORMWATER ASSET MANAGEMENT PLAN

Document Control

Document ID: 59.299.130925 nams.plus2 amp template v4

Rev No Date Revision Details Author Reviewer Approver1 November 2016 NAMS PLUS2 Asset Plan & Expenditures

Stormwater S2_V1 Capital Works ProgramDEIS - GS DEIS - GS

SMTMF - KKSIO - JSMI - BH

2 21 November2016

Elected Members Workshop – Cancelled DEIS

3 5 December2016

Finance Audit Committee DEIS AuditCommittee

4 6 December2016

Elected Members Workshop DEIS EM

5 7 December2016

Amend Executive Summary DEIS

6 January 2017 Public Consultation DEIS

7 February 2017 Review and Amend Renewal and New/UpgradeProjects – Percentage Amounts

DEIS

8 1 May 2017 Finance Audit CommitteeResolution No. AC212017

That the Audit Committee recommends:

That Council approve the Infrastructure AssetManagement Policy, Strategy and Plans asattached and provided.

That the Infrastructure Asset Management Plans aspresented are incorporated into Council's LongTerm Financial Plan.

DEIS FinanceAuditCommittee

9 22 May 2017 Ordinary Council MeetingResolution No. OC2682017

That Council approve the Infrastructure AssetManagement Policy, Strategy and Plans (providedto Elected Members on 27 April 2017 underseparate cover to the agenda). That theInfrastructure Asset Management Plans aspresented are incorporated into Council’s LongTerm Financial Plan.

DEIS Council Council

10 December 2018 Review & Amend Condition Assessment / ForwardEstimate Works Program

DEIS SMT/MI/MER/MO/BFO/MI/MF

SMT

© Copyright 2012 – All rights reserved.

The Institute of Public Works Engineering Australia.

www.ipwea.org.au/namsplus


Table of Contents1. Executive Summary 5

What does it cost? 5What we will do 5What we cannot do 5Managing the risks 5Confidence levels 5The next steps 5Questions you may have 6

2. Introduction 72.1 Background 72.2 Goals and Objectives of Asset Management 82.3 Plan Framework 92.4 Core and Advanced Asset Management 112.5 Community Consultation 11

3. Levels of Service 113.1 Customer Research and Expectations 113.2 Strategic and Corporate Objectives 123.3 Legislative Requirements 133.4 Current Levels of Service 133.5 Desired Levels of Service 15

4. Future Demand 164.1 Demand Drivers 164.2 Demand Forecast 164.3 Demand Impact on Assets 164.4 Demand Management Plan 204.5 Asset Programs to meet Demand 21

5. Lifecycle Management Plan 225.1 Background Data 225.2 Infrastructure Risk Management Plan 275.3 Routine Operations and Maintenance Plan 285.4 Renewal/Replacement Plan 325.5 Creation/Acquisition/Upgrade Plan 345.6 Disposal Plan 365.7 Service Consequences and Risks 36


6. Financial Summary 386.1 Financial Statements and Projections 386.2 Funding Strategy 416.3 Valuation Forecasts 416.4 Key Assumptions made in Financial Forecasts 436.5 Forecast Reliability and Confidence 44

7. Plan Improvement and Monitoring 457.1 Status of Asset Management Practices 457.2 Improvement Program 467.3 Monitoring and Review Procedures 477.4 Performance Measures 47

8. References 48

9. Appendices 49Appendix A Maintenance Response Levels of Service 50Appendix B Projected 10 Year Capital Renewal & Replacement Works Program 50Appendix C Projected Upgrade/Exp/New 10 Year Capital Works Program 55Appendix D Budgeted Expenditures Accommodated in LTFP 59Appendix E Gifted Assets 2010 – 30 June 2018 59Appendix F Abbreviations 87Appendix G Glossary 90

CITY OF VICTOR HARBOR – STORMWATER ASSET MANAGEMENT PLAN of 94

1. Executive SummaryCouncil provides a stormwater network, to enablea safe, well maintained, fit for purpose stormwatersystem in accordance with Councils servicedelivery objectives.The Stormwater system cannot be providedwithout the proper construction and maintenanceof the supporting assets. The renewal andmaintenance of these assets is critical tosuccessful service delivery.

The stormwater network comprises: Pipes Box Culverts – Crowns & Bases Side Entry Pits Junction Boxes Gross Pollutant Traps (GPTs)

These infrastructure assets have a replacementvalue of $56,340,000

What does it Cost?The projected outlays necessary to provide theservices covered by this Asset Management Plan(AM Plan) includes operations, maintenance,renewal and upgrade of existing assets over the10 year planning period is $15,810,000 or$1,581,000 on average per year.

Estimated available funding for this period is$15,527,000 or $1,533,000 on average per yearwhich is 98% of the cost to provide the service.This is a funding shortfall of $26,000 on averageper year. Projected expenditure required toprovide services in the AM Plan compared withplanned expenditure currently included in theLong Term Financial Plan are shown in the graphbelow.

What we will doWe plan to provide stormwater services for thefollowing: Operation, maintenance, renewal and

upgrade of stormwater assets to meet servicelevels set in annual budgets.

Carry out annual maintenance & operationsand address the shortfall in pipe capacitywithin the 10 year planning period.

What we cannot doWe do not have enough funding to provide allservices at the desired service levels or providenew services. Works and services that cannot beprovided under present funding levels are: Full upgrades to address capacity of the

stormwater system.

Managing the RisksThere are risks associated with providing theservice and not being able to complete allidentified activities and projects. We haveidentified major risks as: Potential flooding of properties Flooding of council assets

We will endeavour to manage these risks withinavailable funding by: Action Plans Understand the ongoing costs through the

audit committee and council

Confidence LevelsThis AM Plan is based on high level ofconfidence information.

The Next StepsThe actions resulting from this asset managementplan are: Review Works Program Ongoing review of service levels Advise audit committee Advise Council Review useful lives


Questions you may have

What is this plan about?This asset management plan covers theinfrastructure assets that serve the City ofVictor Harbor community’s stormwater needs.These assets include stormwater assetsthroughout the community area that enablepeople to have property access withoutflooding.

What is an Asset Management Plan?Asset management planning is acomprehensive process to ensure delivery ofservices from infrastructure is provided in afinancially sustainable manner.

An asset management plan details informationabout infrastructure assets including actionsrequired to provide an agreed level of servicein the most cost effective manner. The plandefines the services to be provided, how theservices are provided and what funds arerequired to provide the services.

Why is there a funding shortfall?Most of the organisation’s Stormwater networkwas constructed by developers and fromgovernment grants, often provided andaccepted without consideration of ongoingoperations, maintenance and replacementneeds.

Many of these assets are approaching thelater years of their life and requirereplacement, services from the assets aredecreasing and maintenance costs areincreasing.

Our present funding levels are insufficient tocontinue to provide existing services at currentlevels in the medium term.

What options do we have?Resolving the funding shortfall involves severalsteps:1. Improving asset knowledge so that data

accurately records the asset inventory, howassets are performing and when assets are notable to provide the required service levels,

2. Improving our efficiency in operating,maintaining, renewing and replacing existingassets to optimise life cycle costs,

3. Identifying and managing risks associated withproviding services from infrastructure,

4. Making trade-offs between service levels andcosts to ensure that the community receivesthe best return from infrastructure,

5. Identifying assets surplus to needs for disposalto make saving in future operations andmaintenance costs,

6. Consulting with the community to ensure thatStormwater services and costs meetcommunity needs and are affordable,

7. Developing partnership with other bodies,where available to provide services,

8. Seeking additional funding from governmentsand other bodies to better reflect a ‘whole ofgovernment’ funding approach to infrastructureservices.

What happens if we don’t manage theshortfall?It is likely that we will have to reduce servicelevels in some areas, unless new sources ofrevenue are found. For stormwater, theservice level reduction may include a lowerstandard of service.

What can we do?We can develop options, costs and prioritiesfor future stormwater services, consult with thecommunity to plan future services to match thecommunity service needs with ability to pay forservices and maximise community benefitsagainst costs.

What can you do?We will be pleased to consider your thoughtson the issues raised in this asset managementplan and suggestions on how we may changeor reduce the stormwater mix of services toensure that the appropriate level of servicecan be provided to the community withinavailable funding.


2. Introduction2.1 BackgroundThis asset management plan is to demonstrate responsive management of assets (and servicesprovided from assets), compliance with regulatory requirements, and to communicate fundingneeded to provide the required levels of service over a 20 year planning period.

The asset management plan follows the format for AM Plans recommended in Section 4.2.6 of theInternational Infrastructure Management Manual1.

The asset management plan is to be read with the organisation’s Asset Management Policy, AssetManagement Strategy and the following associated planning documents:

Community Plan 2036 and Strategic Directions 2016-2020 Long Term Financial Plan (LTFP) Victor Harbor Urban Growth Strategy Past Population Growth & Future Projections Report 2005 Victor Harbor Traffic Management Strategy 2005 Victor Harbor Coastal Management Study 2013

The infrastructure assets covered by this asset management plan are shown in Table 2.1. Theseassets are used to provide effective and efficient services to its community.

Table 2.1: Assets covered by this Plan

Asset category Dimension ReplacementValue

Pipes 83,522.11 (metres) $32,797,269.63Junction Boxes 512 (quantity) $1,296,872.32Side Entry Pits 1500 (quantity) $6,548,089.39Headwalls 518 (quantity) $1,558,270.94Grated Pits 154 (quantity) $893,128.66Gross Pollutant Traps (quantity) 18 (quantity) $1,141,820.94Letter Box Pits 5 (quantity) $11,814.39Storm Trap 2 (quantity) $183,337.42Detention Basin· Open channel 105 (quantity) $2,384,426.12· Gabion drop 8 (quantity) $393,561.53· Levee 2 (quantity) $684,916.56· Retention basin 33 (quantity) $8,446,479.71

TOTAL $56,339,987.61

1 IPWEA, 2011, Sec 4.2.6, Example of an Asset Management Plan Structure, pp 4|24 – 27.


Key stakeholders in the preparation and implementation of this asset management plan are:Shown in Table 2.1.1.

Table 2.1.1: Key Stakeholders in the AM Plan

Key Stakeholder Role in Asset Management PlanElected Members Represent needs of community/shareholders,

Allocate resources to meet the organisation’s objectives in providingservices while managing risks,

Ensure organisation is financial sustainable.Chief Executive Officer Driver of council plans and directionCommunity Consumers of serviceVisitors Consumers of serviceManager Infrastructure Capital Works ProgramManager Finance Long Term Financial Plan & BudgetsManager Operations Capital Works and Maintenance Programs

Our organisation’s organisational structure for service delivery from infrastructure assets is detailedbelow:

2.2 Goals and Objectives of Asset ManagementThe organisation exists to provide services to its community. Some of these services are providedby infrastructure assets. We have acquired infrastructure assets by ‘purchase’, by contract,construction by our staff and by donation of assets constructed by developers and others to meetincreased levels of service.

Our goal in managing infrastructure assets is to meet the defined level of service (as amendedfrom time to time) in the most cost effective manner for present and future consumers. The keyelements of infrastructure asset management are:


Providing a defined level of service and monitoring performance, Managing the impact of growth through demand management and infrastructure

investment, Taking a lifecycle approach to developing cost-effective management strategies for the

long-term that meet the defined level of service, Identifying, assessing and appropriately controlling risks, and Having a long-term financial plan which identifies required, affordable expenditure and

how it will be financed.2

2.3 Plan FrameworkKey elements of the plan are

Levels of service – specifies the services and levels of service to be provided by theorganisation,Future demand – how this will impact on future service delivery and how this is to be met,Life cycle management – how we will manage our existing and future assets to providedefined levels of service,Financial summary – what funds are required to provide the defined services,Asset management practices,Monitoring – how the plan will be monitored to ensure it is meeting the organisation’sobjectives,Asset management improvement plan.

A road map for preparing an asset management plan is shown below.

2 Based on IPWEA, 2011, IIMM, Sec 1.2 p 1|7.


Road Map for preparing an Asset Management PlanSource: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11.


2.4 Core and Advanced Asset ManagementThis asset management plan is prepared as a ‘core’ asset management plan over a 20 year planningperiod in accordance with the International Infrastructure Management Manual3. It is prepared tomeet minimum legislative and organisational requirements for sustainable service delivery and longterm financial planning and reporting. Core asset management is a ‘top down’ approach whereanalysis is applied at the ‘system’ or ‘network’ level.

Future revisions of this asset management plan will move towards ‘advanced’ asset managementusing a ‘bottom up’ approach for gathering asset information for individual assets to support theoptimisation of activities and programs to meet agreed service levels.

2.5 Community ConsultationThis ‘core’ asset management plan is prepared to facilitate community consultation initially throughfeedback on public display of draft asset management plans prior to adoption by the Council. Futurerevisions of the asset management plan will incorporate community consultation on service levelsand costs of providing the service. This will assist the Council and the community in matching thelevel of service needed by the community, service risks and consequences with the community’sability and willingness to pay for the service.

3. Levels of Service3.1 Customer Research and ExpectationsCouncil participated in the 2012 Local Government Roy Morgan Customer Satisfaction survey. Thistelephone survey polls a sample of residents on their level of satisfaction with the organisation’sservices. The most recent customer satisfaction survey reported satisfaction levels for the followingservices.

Table 3.1: Community Satisfaction Survey Levels

Performance Measure Satisfaction LevelVery

SatisfiedFairly

SatisfiedSatisfied Somewhat

satisfiedNot

satisfiedImportance that Council provides& maintains storm drainagefacilities

Mean(out of

10)

9.1

Performance in providing &maintaining storm drainagefacilities

Mean(out of

10)

6.45

3 IPWEA, 2011, IIMM.


The organisation uses this information in developing its Strategic Plan and in allocation ofresources in the budget.

3.2 Strategic and Corporate ObjectivesThe Victor Harbor Community Plan 2036 will help shape the future of Victor Harbor for the next 20years. It highlights the opportunities that have shaped our thinking and describes in broad terms howwe plan to achieve our vision - A city that offers opportunity and lifestyle.

To achieve the Vision Council has identified five broad, interlinked objectives.

Objective 1 - Healthy environments

Objective 2 - Attractive lifestyle and inclusive community

Objective 3 - A thriving local economy

Objective 4 - Services and infrastructure supporting the community

Objective 5 - An innovative Council empowering the community

The Strategic Directions inform Council’s annual business plans, work plans and budgets whichdetail what Council will do to achieve its objectives. Council’s Long Term Financial Plan and AssetManagement Plan are also informed by the Community Plan.

Table 3.2: Organisation Goals and how these are addressed in this Plan

Goal Objectives

Assets & Infrastructure that are developed,managed and maintained so that they provide thelevels of service needs to the community.

Objective 1 - Healthy environments

Objective 2 - Attractive lifestyle and inclusive community

Objective 3 - A thriving local economy

Objective 4 - Services and infrastructure supporting thecommunity

Objective 5 - An innovative Council empowering the community

The Council will exercise its duty of care to ensure public safety in accordance with the infrastructurerisk management plan prepared in conjunction with this AM Plan. Management of infrastructurerisks is covered in Section 5.2


3.3 Legislative RequirementsWe have to meet many legislative requirements including Australian and State legislation andState regulations. These include:

Table 3.3: Legislative Requirements

Legislation RequirementLocal Government Act 1999 Sets out role, purpose, responsibilities and powers of local governments

including the preparation of a long term financial plan supported by assetmanagement plans for sustainable service delivery.

Environmental Protection Act Sets out role, purpose, responsibilities of local government in protecting theenvironment.

WHS Act Sets out role, purpose, responsibilities of local government in providing safework practices and worksites.

Australian Road Rules and RoadSafety Act

Set of model road rules developed by the National Road TransportCommission (NRTC) which form the platform for State and Territory roadrules across Australia. The first edition of the Rules was published on 19October 1999, and marked a milestone in road safety policy and legislationacross Australia.

Native Vegetation Act Provides incentives and assistance to landowners in relation to thepreservation and enhancement of native vegetation; to control the clearanceof native vegetation; and for other purposes.

River Murray Act Provides for the protection and enhancement of the River Murray and relatedareas and ecosystems; and for other purposes.

Coastal Protection Act Provides provision for the conservation and protection of the beaches andcoast of this State; and for other purposes.

Mutual Liability Scheme Sets out role, purpose, responsibilities of local government in managing riskand liabilities.

AAS27 Sets out responsibilities of local government for maintaining accountingstandards.

Australian Standards and AUS PEC Covers minor civil works NATSPEC’s major service is providing a nationalmaster specification to the construction industry.

3.4 Current Levels of ServiceWe have defined service levels in two terms.

Community Levels of Service measure how the community receives the service and whether theorganisation is providing community value.

Community levels of service measures used in the asset management plan are:

Quality How good is the service?Function Does it meet users’ needs?Capacity/Utilisation Is the service over or under used?

Technical Levels of Service - Supporting the community service levels are operational or technicalmeasures of performance. These technical measures relate to the allocation of resources to serviceactivities that the organisation undertakes to best achieve the desired community outcomes anddemonstrate effective organisational performance.

Technical service measures are linked to annual budgets covering:

Operations – the regular activities to provide services such as opening hours, cleansingfrequency, mowing frequency, etc.


Maintenance – the activities necessary to retain an asset as near as practicable to anappropriate service condition (eg road patching, unsealed road grading, building andstructure repairs),Renewal – the activities that return the service capability of an asset up to that which it hadoriginally (eg frequency and cost of road resurfacing and pavement reconstruction, pipelinereplacement and building component replacement),Upgrade – the activities to provide an higher level of service (eg widening a road, sealing anunsealed road, replacing a pipeline with a larger size) or a new service that did not existpreviously (eg a new library).

Asset managers plan, implement and control technical service levels to influence thecustomer service levels.4 Our current service levels are detailed in Table 3.4.

Table 3.4: Current and Desired Service Levels

KeyPerformance

Measure

Level of Service PerformanceMeasureProcess

Performance Target CurrentPerformance

COMMUNITY LEVELS OF SERVICE

Quality Provide a stormwatersystem that protectsproperty and peoplefrom the impacts offlooding

LocalGovernmentAssociationAnnualCustomerSurvey

6.45 (mean score outof 10)

6.45 (mean score outof 10) survey results2012

Function Ensure stormwaterdrainage systemsmeets userrequirements

Customerservice requestsrelating toblockages

<5/year >5/year

Safety Provide safe andsuitable stormwaterdrainage system,free from hazards

Number ofreportedhazards andinjuries

0/year 0/year

TECHNICAL LEVELS OF SERVICE

Condition 1. Carry out routinemaintenance

2 .Visual assessmentof pipe system todetermine condition

1.Pipe/SEP/Boxcleaning/clearingeach year

2. Closed CircuitTV inspection

1. Each year asrequired and morefrequently at knownhotspots

2a. Include ClosedCircuit TV inspection indesign phase of pipesystemrenewal/upgrade

2b. Stormwatersystems gifted toCouncil to includeclosed circuit TV

Implemented 1

Implementing 2 whenthe need arises.

4 IPWEA, 2011, IIMM, p 2.22


inspection andcondition report

Function Ensure stormwatersystem hasappropriate capacitywith minimalenvironmental impact

The extent ofdrainage systemwhich is belowcapacity andpollution controlmeasures

Implementation ofUrban StormwaterManagement Plan(USMP) strategies andrecommendations

Implementing UrbanStormwaterManagement Plan(USMP) strategiesandrecommendations asbudget allocationsallow.

CostEffectiveness

Provide stormwaterservices at lowestcost for requiredlevel of service

Constructionandmaintenancecost

Total operating costsnot greater thanindustry average

Capital andmaintenance workcompleted withinbudget. Contractedcapital works arecompetitivelytendered.

Safety Provide effectivepipe work system,free of hazards

Insurance claims <0 <0

3.5 Desired Levels of ServiceIndications of desired levels of service are obtained from community consultation/engagement. Theasset management planning process includes the development of 3 scenarios to develop levels ofservice that are financially sustainable.


4. Future Demand4.1 Demand DriversDrivers affecting demand include population change, changes in demographics, seasonal factors,vehicle ownership rates, consumer preferences and expectations, technological changes, economicfactors, agricultural practices, environmental awareness, etc.

4.2 Demand ForecastThe present position and projections for demand drivers that may impact future service delivery andutilisation of assets were identified and are documented in Table 4.3.

4.3 Demand Impact on AssetsThe impact of demand drivers that may affect future service delivery and utilisation of assets areshown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

The Department of Planning, Transport and Infrastructure (DPTI) recently released the officialpopulation projections for local government areas across the State based on the 2011 Censusreport.

The following table shows that latest population projections for Victor Harbor and compares theseto the previous projections.

Table 1: ABS Population

2006 CensusProjections

2011 CensusProjections

2016 Victor Harbor base population – 14,670

2016 16,171 15,6072021 17,673 17,3192026 19,343 19,2042031 21,231

These figures indicate that Victor Harbor’s population is not expected to grow as quickly as initiallythought. Of particular note is the significant reduction in population growth anticipated between 2011and 2016, which when projected over subsequent five-year periods, results in a slightly lowerpopulation for the City by 2026 (by 139 persons or 0.8%). The number of people aged 65 and overwas projected to be in the order of 35.5% of the total population by 2026. The most recent projectionsindicate that by 2031, the number of people aged 65 and over in Victor Harbor will make up nearly40% of the total population.

Demand drivers Present position Projection Impact on services

Population 14,670 21,231 in 2031 Increase in demand forservices.


Demographics The increase in population isexpected to occur mainly inthe older demographic of65+.

The increase in population of1.5% per annum is expectedto continue in the built uparea of the city rather than inthe rural areas.

The infrastructure willincreasingly have to caterfor additional traffic,involving upgrading existingand supplying newinfrastructure includingfootpaths, pedestrianaccess locations andparking.

Climate Change Coastal Erosion Sea Level Rise – 3mm/year Before year 2050 Sea levelinundation is likely to showsome impact on Councilsinfrastructure. Refer to 2013AWE Coastal ManagementStudy.

Climate Change Coastal Erosion Sea Level Rise – 3mm/year Before year 2100 Sea levelinundation is likely to cause‘significant’ impact onCouncils infrastructure.Refer to 2013 AWE CoastalManagement Study.


4.4 Demand Management PlanDemand for new services will be managed through a combination of managing existing assets,upgrading of existing assets and providing new assets to meet demand and demand management.Demand management practices include non-asset solutions, insuring against risks and managingfailures.

Non-asset solutions focus on providing the required service without the need for the organisation toown the assets and management actions including reducing demand for the service, reducing thelevel of service (allowing some assets to deteriorate beyond current service levels) or educatingcustomers to accept appropriate asset failures5. Examples of non-asset solutions include providingservices from existing infrastructure such as aquatic centres and libraries that may be in anothercommunity area or public toilets provided in commercial premises.

Opportunities identified to date for demand management are shown in Table 4.4. Furtheropportunities will be developed in future revisions of this asset management plan.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Development of newresidentialsubdivisions

Can affect future capacityand utilisation requirements To meet requirements of township development

plans.

Installing of newstormwater assets

Increased service level Utilisation and demand. Record all flooding areasdue to lack of stormwater infrastructure andinclude on a priority basis in the 10 year capitalworks program.

Upgrading existingstormwater

Increased service level Record all flooding areas due to inadequatestormwater infrastructure. Use the UrbanStormwater Masterplan to prioritise requiredupgrades and include in the 10 year capital worksprogram. Also balance the priority against theseverity and frequency of flooding

5 IPWEA, 2011, IIMM, Table 3.4.1, p 3|58.


4.5 Asset Programs to meet DemandThe new assets required to meet growth will be acquired free of cost from land developments andconstructed/acquired by the organisation. New assets constructed/acquired by the organisationare discussed in Section 5.5. The cumulative value of new contributed and constructed assetvalues are summarised in Figure 1.

Figure 1: Upgrade and New Assets to meet Demand

Acquiring these new assets will commit the organisation to fund ongoing operations, maintenanceand renewal costs for the period that the service provided from the assets is required. These futurecosts are identified and considered in developing forecasts of future operations, maintenance andrenewal costs in Section 5.


5. Lifecycle Management PlanThe lifecycle management plan details how the organisation plans to manage and operate theassets at the agreed levels of service (defined in Section 3) while optimising life cycle costs.

5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan are shown in Table 2.1.

Asset category Dimension ReplacementValue

Pipes 83,522.11 (metres) $32,797,269.63Junction Boxes 512 (quantity) $1,296,872.32Side Entry Pits 1500 (quantity) $6,548,089.39Headwalls 518 (quantity) $1,558,270.94Grated Pits 154 (quantity) $893,128.66Gross Pollutant Traps (quantity) 18 (quantity) $1,141,820.94Letter Box Pits 5 (quantity) $11,814.39Storm Trap 2 (quantity) $183,337.42Detention Basin· Open channel 105 (quantity) $2,384,426.12· Gabion drop 8 (quantity) $393,561.53· Levee 2 (quantity) $684,916.56· Retention basin 33 (quantity) $8,446,479.71

TOTAL $56,339,987.61

The age profile of the assets included in this AM Plan is shown in Figure 2.


Figure 2: Asset Age Profile

5.1.2 Asset capacity and performance

The organisation’s services are generally provided to meet design standards where these areavailable.

Locations where deficiencies in service performance are known are detailed in Table 5.1.2.

Table 5.1.2: Known Service Performance Deficiencies

Location Service Deficiency

Urban drainage network The Urban Stormwater Master Plan identified deficiencies in thedrainage network relating to pipe and pit capacity, flood protection,future requirements due to growth and water quality.

Rural drainage The Strategic Plan for Engineering Assets report identified culverts andheadwalls to be repaired and recommended an increase in expenditureto maintain the rural drainage network.

The above service deficiencies were identified from Councils Urban Stormwater Master Plan andthe Strategic Plan for Engineering Assets report.

5.1.3 Asset condition

Condition is monitored in accordance with methods developed in line with procedures outlined in theInternational Infrastructure Management Manual (IIMM). This approach was adopted here as themethods used in systems available locally at reasonable prices either did not rate the key attributesor attempted to force fit those attributes collected into other fields which obscured the output. Thishad resulted in some practitioners adopting parallel and somewhat independent databases basedupon experience with their networks and to achieve outputs which more closely matched the actualfield conditions.


The approach at City of Victor Harbor was to incorporate all relevant attribute criteria at the datacollection with allowance for possible future changes and to accommodate system upgrades.

Refinements are continuing on the stormwater asset register database.

The condition profile of our assets is shown in Figure 3.

Not Rated 0 % 100 % 47.6 %

Good / VeryGood 78.3 % 0 % 49.1 %

Fair 19 % 0 % 0 %

Poor / VeryPoor 2.8 % 0 % 3.4 %


Fig 3: Asset Condition Profile

Condition CRC ($'000) Weight (%)0 $0 0%1 $18,951 34%2 $25,160 45%3 $10,678 19%4 $1,226 2%5 $325 1%

*all dollar values in ($'000)'s

Condition is measured using a 0 – 6 grading system6 as detailed in Table 5.1.3.

Table 5.1.3: Simple Condition Grading Model

ConditionGrading

Description of Condition

0 Brand New: Asset is brand new.

1 Very Good: Near as new condition with no defects.

2 Good: Superficial deterioration. No issue with reliability. No maintenance is required.

3 Fair: Minor deterioration present. Routine maintenance may be required.

4 Poor: Significant deterioration present. Requires maintenance to keep the asset serviceable andprogramming for renewal/rehabilitation on forward 5 year works program.

5 Very Poor: Extensive deterioration present. Requires significant maintenance to keep the assetserviceable and programming for renewal/rehabilitation within the following year.

6 End of Life: Asset is unserviceable and provides no service. Asset cannot be used.

6 IPWEA, 2011, IIMM, Sec 2.5.4, p 2|79.


5.1.4 Asset valuations

The value of assets recorded in the asset register as at 2018 covered by this asset managementplan is shown below. Assets were last revalued during financial year 2014/15. Assets are valued atgreenfield rates.

Current Replacement Cost $56,340,000

Depreciable Amount $56,340,000

Depreciated Replacement Cost7 $42,419,000

Annual Depreciation Expense $495,000

Useful lives were reviewed in financial year 2015/16 by detailed condition analysis.

Key assumptions made in preparing the valuations were:

Using local projects;Using local data (metric unit rates);That the Stormwater Asset Register is a true reflection of the actual network dimensions &composition.

Major changes from previous valuations are due to better knowledge of the current network profileand history of works completed as well as the impact of market forces of materials required forconstruction and renewal.

Various ratios of asset consumption and expenditure have been prepared to help guide and gaugeasset management performance and trends over time.

Rate of Annual Asset Consumption 0.9%(Depreciation/Depreciable Amount)

Rate of Annual Asset Renewal 0.2%(Capital renewal exp/Depreciable amount)

Rate of Annual Asset Upgrade/New 1%(Capital upgrade exp/Depreciable amount)

Rate of Annual Asset Upgrade/New 2.1%(Including contributed assets)

In 2018 the organisation plans to renew assets at 19.2% of the rate they are being consumed andwill be increasing its asset stock by 2.1% in the year.

7 Also reported as Written down Current Replacement Cost (WDCRC).


5.1.5 Historical Data

Capital Expenses

Capital Projects 2018-19

Budget

2017-18

Actual

2016-17

Actual

2015-16

Actual

2014-15

Actual

2013-14

Actual

$635,000 $2,325,785.00 $894,376.00 $87,024.00 $49,955.00 $1,066,457,00

Total $635,00 $2,325,785.00 $894,376,00 $87,024.00 $49,955.00 $1,066,457,00

Maintenance Expenses

General Maintenance 2018-19

Budget

2017-18

Actual

2016-17

Actual

2015-16

Actual

2014-15

Actual

2013-14

Actual

$106,200 $106,521.16 $97,961.79 $113,064.58 $75,855.32 $98,424.83

Total $106,200 $106,521.16 $97,961.79 $113,064.58 $75,855.32 $98,424.83

Operation Expenses

StreetSweeping /Other Expenses

2018-19

Budget

2017-18

Actual

2016-17

Actual

2015-16

Actual

2014-15

Actual

2013-14

Actual

$231,100.00

Includes floodplain mappingproject$100,000

$109,828.19 $113,315.09 $111,626.84 $114,613.02 $108,843.46

Total $231,100.00 $109,828.19 $113,315.09 $111,626.84 $114,613.02 $108,843.46

5.2 Infrastructure Risk Management PlanAn assessment of risks8 associated with service delivery from infrastructure assets has identifiedcritical risks that will result in loss or reduction in service from infrastructure assets or a ‘financialshock’ to the organisation. The risk assessment process identifies credible risks, the likelihood ofthe risk event occurring, the consequences should the event occur, develops a risk rating, evaluatesthe risk and develops a risk treatment plan for non-acceptable risks.

Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’– requiring prioritised corrective action identified in the Infrastructure Risk Management Plan,together with the estimated residual risk after the selected treatment plan is operational aresummarised in Table 5.2. These risks are reported to management and Council.

8 Organisation’s Infrastructure Risk Management Plan


Table 5.2: Critical Risks and Treatment Plans

Service orAsset at Risk

What can Happen RiskRating(VH,H)

Risk Treatment Plan ResidualRisk *

TreatmentCosts$000

FieldAve/Brand/Pine -Stormwater RunOff from HigherDevelopedAreas –Capacity

Potential floodingof properties.

H Prioritised in CouncilsStormwater AM Plan / CWP.

L FY2016-17 $20

FY2017-18 $585

Climate Change Rising sea levelsand changes toweather patternswill impact on thecapacity of theexistingstormwater systemand an increase inflood prone areasfrom more frequentextreme tidal andstorm events.

VH AWE Coastal ManagementStudy 2013.

Resilient Hills and Coasts-Climate Change AdaptationPlan.

Council to start allocating fundsin a reserve account for thisongoing project to protect thecity of victor harbor.

Resilient Hills and Coasts-Climate Change AdaptationPlan; Council Endorsed -Resolution No. OC5442016,dated 26 Sept 2016.

Develop Local Adaptation Plan.

M $17million(30 year financialplan)

Refer to AWECoastalManagementStudy 2013

FY2017-18 $55

Water runofffrom rural vacantland -Tabernacle Rd

Flooding toresidential areas,excess water run-off from vacantrural land.

M Considered in AssetManagement Plan, design &implementation - kerb &channel and undergroundstormwater system.

M FY2017-18 $65

FY2018-19 $880

Major Flooding Property & roadflooding at specificlocations causingmajor damage &traffic hazards.

M Require additional funding toaddress all concerns, isolatedshort term road flooding maybe acceptable.

Refer to Urban StormwaterMaster Plan, KBR (2005) -Actioned of a number of years.

M Financial yearbudget allocation‘capital expense’varies eachfinancial year,council toapproveadditional fundsto minimiseidentified risks.

Note * the residual risk is the risk remaining after the selected risk treatment plan is operational.Sample above, Refer to Stormwater Infrastructure Risk Management Plan

5.3 Routine Operations and Maintenance PlanOperations include regular activities to provide services such as public health, safety and amenity,eg street sweeping, grass mowing and street lighting.


Routine maintenance is the regular on-going work that is necessary to keep assets operating,including instances where portions of the asset fail and need immediate repair to make the assetoperational again.

5.3.1 Operations and Maintenance Plan

Operations activities affect service levels including quality and function through street sweeping andgrass mowing frequency, intensity and spacing of street lights and cleaning frequency and openinghours of building and other facilities.

Maintenance includes all actions necessary for retaining an asset as near as practicable to anappropriate service condition including regular ongoing day-to-day work necessary to keep assetsoperating, eg road patching but excluding rehabilitation or renewal. Maintenance may be classifiesinto reactive, planned and specific maintenance work activities.

Reactive maintenance is unplanned repair work carried out in response to service requests andmanagement/supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenancemanagement system (MMS). MMS activities include inspection, assessing the condition againstfailure/breakdown experience, prioritising, scheduling, actioning the work and reporting what wasdone to develop a maintenance history and improve maintenance and service delivery performance.

Specific maintenance is replacement of higher value components/sub-components of assets that isundertaken on a regular cycle including repainting, replacing air conditioning units, etc. This workfalls below the capital/maintenance threshold but may require a specific budget allocation.

Actual past maintenance expenditure is shown in Table 5.3.1.

Table 5.3.1: Maintenance Expenditure Trends

Year Maintenance ExpenditurePlanned and Specific Unplanned

2013-14 $98,424.83 $0002014-15 $72,855.32 $0002015-16 $113,064.58 $0002016-17 $97,961.79 $0002017-18 $106,521.16 $0002018-19 (Budget) $106,200.00 $000

Planned maintenance work is currently 100% of total maintenance expenditure.

Maintenance expenditure levels are considered to be adequate to meet projected service levels,which may be less than or equal to current service levels. Where maintenance expenditure levelsare such that will result in a lesser level of service, the service consequences and service risks havebeen identified and service consequences highlighted in this AM Plan and service risks consideredin the Infrastructure Risk Management Plan.

Assessment and prioritisation of reactive maintenance is undertaken by the organisation’s staff usingexperience and judgement.

5.3.2 Operations and Maintenance Strategies

The organisation will operate and maintain assets to provide the defined level of service to approvedbudgets in the most cost-efficient manner. The operation and maintenance activities include:


Scheduling operations activities to deliver the defined level of service in the mostefficient manner,

Undertaking maintenance activities through a planned maintenance system to reducemaintenance costs and improve maintenance outcomes. Undertake cost-benefitanalysis to determine the most cost-effective split between planned and unplannedmaintenance activities (50 – 70% planned desirable as measured by cost),

Maintain a current infrastructure risk register for assets and present service risksassociated with providing services from infrastructure assets and reporting Very Highand High risks and residual risks after treatment to management and Council,

Review current and required skills base and implement workforce training anddevelopment to meet required operations and maintenance needs,

Review asset utilisation to identify underutilised assets and appropriate remedies, andover utilised assets and customer demand management options,

Maintain a current hierarchy of critical assets and required operations andmaintenance activities,

Develop and regularly review appropriate emergency response capability, Review management of operations and maintenance activities to ensure the

organisation is obtaining best value for resources used.

Asset hierarchy

An asset hierarchy provides a framework for structuring data in an information system to assist incollection of data, reporting information and making decisions. The hierarchy includes the assetclass and component used for asset planning and financial reporting and service level hierarchyused for service planning and delivery.

The organisation’s service hierarchy is shown is Table 5.3.2

Table 5.3.2: Asset Service Hierarchy

Service Hierarchy Service Level ObjectivePipes Maintain stormwater outlet pipes to ocean, check and clean fortnightly

or as requiredSide Entry Pits Check & clean annually or as requiredGross Pollutant Traps Check & clean annually by an approved contactor

Critical Assets

Critical assets are those assets which have a high consequence of failure but not necessarily ahigh likelihood of failure. By identifying critical assets and critical failure modes, organisations cantarget and refines investigative activities, maintenance plans and capital expenditure plans at theappropriate time.

Operations and maintenances activities may be targeted to mitigate critical assets failure andmaintain service levels. These activities may include increased inspection frequency, highermaintenance intervention levels, etc. Critical assets failure modes and required operations andmaintenance activities are detailed in Table 5.3.2.1


Table 5.3.2.1: Critical Assets and Service Level Objectives

Critical Assets Critical Failure Mode Operations & Maintenance ActivitiesHindmarsh River Water level height Check during the winter periods to ensure

flooding does not occur to nearby properties,open river to sea.

Inman River Water level height Check during the winter periods to ensureflooding does not occur to nearby properties,open river to sea.

Standards and specifications

Maintenance work is carried out in accordance with the following Standards and Specifications.

Local Government ActRoad Traffic ActAustralian Road RulesNative Vegetation ActEnvironment Protection ActNRM ActAustralian Standards

5.3.3 Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the assetstock as shown in Figure 4. Note that all costs are shown in current 2018 dollar values (ie realvalues).

Figure 4: Projected Operations and Maintenance Expenditure

Deferred maintenance, ie works that are identified for maintenance and unable to be funded are tobe included in the risk assessment and analysis in the infrastructure risk management plan.

Maintenance is funded from the operating budget where available. This is further discussed inSection 6.2.


5.4 Renewal/Replacement PlanRenewal and replacement expenditure is major work which does not increase the asset’s designcapacity but restores, rehabilitates, replaces or renews an existing asset to its original or lesserrequired service potential. Work over and above restoring an asset to original service potential isupgrade/expansion or new works expenditure.

5.4.1 Renewal plan

Assets requiring renewal/replacement are identified from one of three methods provided in the‘Expenditure Template’.

Method 1 uses Asset Register data to project the renewal costs using acquisition year and usefullife to determine the renewal year, or

Method 2 uses capital renewal expenditure projections from external condition modelling systems(such as Pavement Management Systems), or

Method 3 uses a combination of average network renewals plus defect repairs in the Renewal Planand Defect Repair Plan worksheets on the ‘Expenditure template’.

Method 2 was used for this asset management plan.

The useful lives of assets used to develop projected asset renewal expenditures are shown in Table5.4.1. Asset useful lives were last reviewed during financial year 2015/16.9

Table 5.4.1: Useful Lives of Assets

Asset (Sub)Category Useful lifePipes 120 yrs.Junction Boxes 100 yrs.Side Entry Pits 100 yrs.Headwalls 100 yrs.Grated Pits 100 yrs.Gross Pollutant Traps 100 yrs.Letter Box Pits 100 yrs.Detention Basin 100 yrs.

5.4.2 Renewal and Replacement Strategies

The organisation will plan capital renewal and replacement projects to meet level of serviceobjectives and minimise infrastructure service risks by:

Planning and scheduling renewal projects to deliver the defined level of service in the most efficientmanner, undertaking project scoping for all capital renewal and replacement projects to identify:

the service delivery ‘deficiency’, present risk and optimum time forrenewal/replacement,

the project objectives to rectify the deficiency, the range of options, estimated capital and life cycle costs for each options that could

address the service deficiency, and evaluate the options against evaluation criteria adopted by the organisation, and

9 Victor Harbor Stormwater Drainage Asset Management Business Process & Valuation Manual


select the best option to be included in capital renewal programs, Using ‘low cost’ renewal methods (cost of renewal is less than replacement) wherever

possible, Maintain a current infrastructure risk register for assets and service risks associated

with providing services from infrastructure assets and reporting Very High and Highrisks and residual risks after treatment to management and the Council,

Review current and required skills base and implement workforce training anddevelopment to meet required construction and renewal needs,

Maintain a current hierarchy of critical assets and capital renewal treatments andtimings required,

Review management of capital renewal and replacement activities to ensure theorganisation is obtaining best value for resources used.

Renewal ranking criteria

Asset renewal and replacement is typically undertaken to either:

Ensure the reliability of the existing infrastructure to deliver the service it wasconstructed to facilitate (eg replacing a bridge that has a 5 t load limit), or

To ensure the infrastructure is of sufficient quality to meet the service requirements(eg roughness of a road).10

It is possible to get some indication of capital renewal and replacement priorities by identifying assetsor asset groups that:

Have a high consequence of failure,Have a high utilisation and subsequent impact on users would be greatest,The total value represents the greatest net value to the organisation,Have the highest average age relative to their expected lives,Are identified in the AM Plan as key cost factors,Have high operational or maintenance costs, andWhere replacement with modern equivalent assets would yield material savings.11

The ranking criteria used to determine priority of identified renewal and replacement proposals isdetailed in Table 5.4.2.

Table 5.4.2: Renewal and Replacement Priority Ranking Criteria

Criteria WeightingCondition Rating (4 and 5) 30%Risks – (residual high and/or extreme risks) 30%Utilisation 20%Public Need 20%Total 100%

Renewal and replacement standards

Renewal work is carried out in accordance with the following Standards and Specifications.

Local Government ActRoads Traffic ActAustralian Road Rules

10 IPWEA, 2011, IIMM, Sec 3.4.4, p 3|60.11 Based on IPWEA, 2011, IIMM, Sec 3.4.5, p 3|66.


Environment Protection ActNative Vegetation ActWorkplace Health & SafetyNRM ActAustralian Standards

5.4.3 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time as theasset stock increases from growth. The expenditure is summarised in Fig 5. Note that all amountsare shown in real values.

The projected capital renewal and replacement program is shown in Appendix B.

Fig 5: Projected Capital Renewal and Replacement Expenditure

Deferred renewal and replacement, ie those assets identified for renewal and/or replacement andnot scheduled in capital works programs are to be included in the risk analysis process in the riskmanagement plan.

Renewals and replacement expenditure in the organisation’s capital works program will beaccommodated in the long term financial plan. This is further discussed in Section 6.2.

5.5 Creation/Acquisition/Upgrade PlanNew works are those works that create a new asset that did not previously exist, or works whichupgrade or improve an existing asset beyond its existing capacity. They may result from growth,social or environmental needs. Assets may also be acquired at no cost to the organisation from landdevelopment. These assets from growth are considered in Section 4.4.

5.5.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such ascouncillor or community requests, proposals identified by strategic plans or partnerships with otherorganisations. Candidate proposals are inspected to verify need and to develop a preliminary


renewal estimate. Verified proposals are ranked by priority and available funds and scheduled infuture works programmes. The priority ranking criteria is detailed below.

Table 5.5.1: New Assets Priority Ranking Criteria

Criteria WeightingCapacity 60%Condition 10%Risks – (residual high or extreme risks) 30%Total 100%

5.5.2 Capital Investment Strategies

The organisation will plan capital upgrade and new projects to meet level of service objectives by:

Planning and scheduling capital upgrade and new projects to deliver the defined level of service inthe most efficient manner,

Undertake project scoping for all capital upgrade/new projects to identify:

o the service delivery ‘deficiency’, present risk and required timeline for delivery of theupgrade/new asset,

o the project objectives to rectify the deficiency including value management for majorprojects,

o the range of options, estimated capital and life cycle costs for each options that couldaddress the service deficiency,

o management of risks associated with alternative options,o and evaluate the options against evaluation criteria adopted by Council, and

select the best option to be included in capital upgrade/new programs,o review current and required skills base and implement training and development to

meet required construction and project management needs,o review management of capital project management activities to ensure the

organisation is obtaining best value for resources used.

Standards and specifications for new assets and for upgrade/expansion of existing assets are thesame as those for renewal shown in Section 5.4.2.

5.5.3 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/newcapital works program is shown in Appendix C. All amounts are shown in real values.

Fig 6: Projected Capital Upgrade/New Asset Expenditure


Expenditure on new assets and services in the organisation’s capital works program will beaccommodated in the long term financial plan. This is further discussed in Section 6.2.

5.6 Disposal PlanDisposal includes any activity associated with disposal of a decommissioned asset including sale,demolition or relocation. Assets identified for possible decommissioning and disposal are shown inTable 5.6, together with estimated annual savings from not having to fund operations andmaintenance of the assets. These assets will be further reinvestigated to determine the requiredlevels of service and see what options are available for alternate service delivery, if any. Any revenuegained from asset disposals is accommodated in the organisation’s long term financial plan.

Where cashflow projections from asset disposals are not available, these will be developed in futurerevisions of this asset management plan.

Table 5.6: Assets Identified for Disposal

Asset Reason for Disposal Timing Disposal Expenditure Operations &Maintenance AnnualSavings

Road Pavements None Proposed N/A N/A N/ASeal None Proposed N/A N/A N/A

5.7 Service Consequences and RisksThe organisation has prioritised decisions made in adopting this AM Plan to obtain the optimumbenefits from its available resources. Decisions were made based on the development of 3scenarios of AM Plans.

Scenario 1 - What we would like to do based on asset register data

Scenario 2 – What we should do with existing budgets and identifying level of service and riskconsequences (ie what are the operations and maintenance and capital projects we are unable todo, what is the service and risk consequences associated with this position). This may requireseveral versions of the AM Plan.


Scenario 3 – What we can do and be financially sustainable with AM Plans matching long-termfinancial plans.

The development of scenario 1 and scenario 2 AM Plans provides the tools for discussion with theCouncil and community on trade-offs between what we would like to do (scenario 1) and what weshould be doing with existing budgets (scenario 2) by balancing changes in services and servicelevels with affordability and acceptance of the service and risk consequences of the trade-off position(scenario 3).

5.7.1 What we cannot do

There are some operations and maintenance activities and capital projects that are unable to beundertaken within the next 10 years. These include:

Upgrade all stormwater systemsReplace all stormwater systems

5.7.2 Service consequences

Operations and maintenance activities and capital projects that cannot be undertaken will maintainor create service consequences for users. These include:

Flooding of properties and roads

5.7.3 Risk consequences

The operations and maintenance activities and capital projects that cannot be undertaken maymaintain or create risk consequences for the organisation. These include:

LegalProperty damage due to floodingInsurance claimsMedia involvement

These risks have been included with the Infrastructure Risk Management Plan summarised inSection 5.2 and risk management plans actions and expenditures included within projectedexpenditures.


6. Financial SummaryThis section contains the financial requirements resulting from all the information presented in theprevious sections of this asset management plan. The financial projections will be improved asfurther information becomes available on desired levels of service and current and projected futureasset performance.

6.1 Financial Statements and ProjectionsThe financial projections are shown in Fig 7 for projected operating (operations and maintenance)and capital expenditure (renewal and upgrade/expansion/new assets). Note that all costs are shownin real values.

Fig 7: Projected Operating and Capital Expenditure

6.1.1 Sustainability of service delivery

Two key indicators for service delivery sustainability that have been considered in the analysis of theservices provided by this asset category, these being the:

asset renewal funding ratio, and

medium term budgeted expenditures/projected expenditure (over 10 years of the planningperiod).

Asset Renewal Funding Ratio

Asset Renewal Funding Ratio12 100%

12 AIFMM, 2015, Version 1.0, Financial Sustainability Indicator 3, Sec 2.6, p 9.


The Asset Renewal Funding Ratio is the most important indicator and indicates that over the next10 years of the forecasting that we expect to have 100% of the funds required for the optimal renewaland replacement of assets.

Medium term – 10 year financial planning period

This asset management plan identifies the projected operations, maintenance and capital renewalexpenditures required to provide an agreed level of service to the community over a 10 year period.This provides input into 10 year financial and funding plans aimed at providing the required servicesin a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period toidentify any funding shortfall. In a core asset management plan, a gap is generally due to increasingasset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 yearplanning period is $1,218,000 on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $1,176,000 on averageper year giving a 10 year funding shortfall of $43,000 per year. This indicates 96% of the projectedexpenditures needed to provide the services documented in the asset management plan. Thisexcludes upgrade/new assets.

Providing services from infrastructure in a sustainable manner requires the matching and managingof service levels, risks, projected expenditures and financing to achieve a financial indicator ofapproximately 1.0 for the first years of the asset management plan and ideally over the 10-year lifeof the Long Term Financial Plan.

Figure 8 shows the projected asset renewal and replacement expenditure over the 20 years of theAM Plan. The projected asset renewal and replacement expenditure is compared to renewal andreplacement expenditure in the capital works program, which is accommodated in the long termfinancial plan.

Figure 8: Projected and LTFP Budgeted Renewal Expenditure


Table 6.1.1 shows the shortfall between projected renewal and replacement expenditures andexpenditure accommodated in long term financial plan. Budget expenditures accommodated in thelong term financial plan or extrapolated from current budgets are shown in Appendix D.

Table 6.1.1: Projected and LTFP Budgeted Renewals and Financing Shortfall

Year End Projected LTFP Renewal Financing Cumulative Shortfall($'000)Jun-30 Renewals Renewal Budget Shortfall ($'000) (- gap, + surplus)

($'000) ($'000) (- gap, + surplus)2019 $95 $95 $0 $02020 $380 $380 $0 $02021 $1,960 $1,960 $0 $02022 $2,100 $2,100 $0 $02023 $280 $280 $0 $02024 $775 $775 $0 $02025 $220 $220 $0 $02026 $240 $240 $0 $02027 $100 $100 $0 $02028 $100 $100 $0 $02029 $625 $625 $0 $02030 $625 $625 $0 $02031 $625 $625 $0 $02032 $625 $625 $0 $02033 $625 $625 $0 $02034 $625 $625 $0 $02035 $625 $625 $0 $02036 $625 $625 $0 $02037 $625 $625 $0 $02038 $625 $625 $0 $0

Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

Providing services in a sustainable manner will require matching of projected asset renewal andreplacement expenditure to meet agreed service levels with the corresponding capital worksprogram accommodated in the long term financial plan.

A gap between projected asset renewal/replacement expenditure and amounts accommodated inthe LTFP indicates that further work is required on reviewing service levels in the AM Plan (includingpossibly revising the LTFP) before finalising the asset management plan to manage required servicelevels and funding to eliminate any funding gap.

We will manage the ‘gap’ by developing this asset management plan to provide guidance on futureservice levels and resources required to provide these services, and review future services, servicelevels and costs with the community.

6.1.2 Projected expenditures for long term financial plan

Table 6.1.2 shows the projected expenditures for the 10 year long term financial plan.

Expenditure projections are in 2018 real values.


Table 6.1.2: Projected Expenditures for Long Term Financial Plan ($000)

Year Operations MaintenanceProjected Capital

DisposalsCapitalRenewal Upgrade/New

2019 $231.00 $106.00 $95.00 $550.00 $0.002020 $234.14 $108.20 $380.00 $360.00 $0.002021 $136.78 $110.06 $1,960.00 $1,580.00 $0.002022 $142.71 $114.22 $2,100.00 $962.00 $0.002023 $147.01 $117.24 $280.00 $75.00 $0.002024 $148.94 $118.60 $775.00 $1,755.00 $0.002025 $155.40 $123.13 $220.00 $145.00 $0.002026 $157.56 $124.65 $240.00 $340.00 $0.002027 $160.27 $126.55 $100.00 $120.00 $0.002028 $162.40 $128.04 $100.00 $820.00 $0.002029 $186.43 $130.87 $625.00 $670.70 $0.002030 $190.08 $133.44 $625.00 $670.70 $0.002031 $193.75 $136.01 $625.00 $670.70 $0.002032 $197.45 $138.60 $625.00 $670.70 $0.002033 $201.16 $141.21 $625.00 $670.70 $0.002034 $204.89 $143.83 $625.00 $670.70 $0.002035 $208.65 $146.47 $625.00 $670.70 $0.002036 $212.42 $149.12 $625.00 $670.70 $0.002037 $216.22 $151.78 $625.00 $670.70 $0.002038 $220.04 $154.47 $625.00 $670.70 $0.00

6.2 Funding StrategyAfter reviewing service levels, as appropriate to ensure ongoing financial sustainability projectedexpenditures identified in Section 6.1.2 will be accommodated in the organisation’s 10 year long termfinancial plan.

6.3 Valuation ForecastsAsset values are forecast to increase as additional assets are added to the asset stock fromconstruction and acquisition by the organisation and from assets constructed by land developersand others and donated to the organisation. Figure 9 shows the projected replacement cost assetvalues over the planning period in real values.

Figure 9: Projected Asset Values


Depreciation expense values are forecast in line with asset values as shown in Figure 10.

Figure 10: Projected Depreciation Expense

The depreciated replacement cost will vary over the forecast period depending on the rates ofaddition of new assets, disposal of old assets and consumption and renewal of existing assets.Forecast of the assets’ depreciated replacement cost is shown in Figure 11. The depreciatedreplacement cost of contributed and new assets is shown in the darker colour and in the lightercolour for existing assets.


Figure 11: Projected Depreciated Replacement Cost

6.4 Key Assumptions made in Financial ForecastsThis section details the key assumptions made in presenting the information contained in this assetmanagement plan and in preparing forecasts of required operating and capital expenditure and assetvalues, depreciation expense and carrying amount estimates. It is presented to enable readers togain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this asset management plan and risks that these may change are shownin Table 6.4.

Table 6.4: Key Assumptions made in AM Plan and Risks of Change

Key Assumptions Risks of Change to AssumptionsAll expenditure is stated in dollar values as at 2018with no allowance made for inflation over the 10-yearplanning period.

All values are in today’s dollars no % increase has beenincluded.

Initial renewal and new costs have been reviewed onthe basis of historical costs, condition deteriorationwork, and compared to the depreciation provisionand the funding available. Renewal costs typicallyincrease by an average of 3-4% per annum over thelife of the Plan to allow for the impact of an enlargedasset base.

Cost assumptions based on past and known costs.

Similarly, Maintenance costs typically increase byabout 3% per annum to allow for the increase in totalasset value (reflecting the higher costs associatedwith managing a larger network base). Again, asasset value is predicted to increase by some 2.1%over the life of the Plan, this assumption will need tobe closely monitored to ensure that sufficientmaintenance funds are available to optimise longterm expenditure and not create a backlog.

Cost assumptions based on past and known costs.


Continuation of the current rate and pattern of urbandevelopment.

Population growth factor of 1.5% per year has beenincluded.

Capital forecast costs for ‘Renewal’ & ‘Upgrade/New’have been placed into their respective categories;this was based on limited information.

Cost assumptions are based on past and known costsincluding the break-down costs to reflect ‘Renewal’ &‘Upgrade/New’ Capital costs.

6.5 Forecast Reliability and ConfidenceThe expenditure and valuations projections in this AM Plan are based on best available data.Currency and accuracy of data is critical to effective asset and financial management. Dataconfidence is classified on a 5 level scale13 in accordance with Table 6.5.

Table 6.5: Data Confidence Grading System

ConfidenceGrade

Description

A Highly reliable Data based on sound records, procedures, investigations and analysis, documented properly andrecognised as the best method of assessment. Dataset is complete and estimated to be accurate± 2%

B Reliable Data based on sound records, procedures, investigations and analysis, documented properly buthas minor shortcomings, for example some of the data is old, some documentation is missingand/or reliance is placed on unconfirmed reports or some extrapolation. Dataset is complete andestimated to be accurate ± 10%

C Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete orunsupported, or extrapolated from a limited sample for which grade A or B data are available.Dataset is substantially complete but up to 50% is extrapolated data and accuracy estimated ±25%

D Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Datasetmay not be fully complete and most data is estimated or extrapolated. Accuracy ± 40%

E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this AM Plan is shown in Table6.5.1.

Table 6.5.1: Data Confidence Assessment for Data used in AM Plan

Data Confidence Assessment CommentDemand drivers Highly Reliable Regional trends available

Growth projections Highly Reliable

Operations expenditures Reliable Extrapolated from previous years

Maintenanceexpenditures

Highly Reliable Extrapolated from previous years

Projected Renewal exps.- Asset values

Highly Reliable Valuation completed in 2015

- Asset residual values Reliable Identified in Condition assessment but not applied toregister

- Asset useful lives Reliable Identified in Condition assessment but not applied toregister

13 IPWEA, 2011, IIMM, Table 2.4.6, p 2|59.


- Condition modelling Highly Reliable Comprehensively completed in 2018

- Network renewals Highly Reliable Based on Condition assessment and operationalexperience

- Defect repairs Highly Reliable Scheduled maintenance is approx. 100% of totalmaintenance

Upgrade/Newexpenditures

Reliable Capital Works Program

Disposal expenditures Reliable Capital Works Program

Over all data sources, the data confidence is assessed as high confidence level for data used in thepreparation of this AM Plan.

7. Plan Improvement and Monitoring7.1 Status of Asset Management Practices

7.1.1 Accounting and financial systems

The finance system used by the City of Victor Harbor includes:

SynergySoft (IT Vision)

o Actual and historical transactionso Budgetingo Inventorieso Recording of Infrastructure, including plant, property and equipmento Depreciation of the assets, including useful and remaining lives of assetso Creditors payments systemo Debtors receiptingo Banking and reconciliation with the general ledger

Magic Performance (Magiq Software Pty Ltd)

o Preparation of budgetso Budget Reviewso Reporting and analysiso Import / export of data from SynergySoft

MyData (Assetic Pty Ltd)

o Recording of infrastructure, land & building assetso Depreciation of infrastructure, land & buildingso Condition rating, useful lives and unit rates of infrastructure, land & buildingso Reporting and analysis

Accountabilities for financial systems

The responsibility for the integrity of the finance system is with the Finance Manager and the Team LeaderFinance.

Accounting standards and regulations

The accounting standards and guidelines that must be complied with are as follows:


Local Government Act 1999 Local Government (General) Regulations 1999 Local Government (Financial Management) Regulations 2011 State and Federal Legislation (eg taxes) Australian Accounting Standards set by the Australian Accounting Standards Board (AASB) Australasian Equivalents to the International Financial Reporting Standards City of Victor Harbor Internal Control procedures

Capital/maintenance threshold

Capital thresholds vary between $1,000 and $10,000. If the improvements are below these amounts then itwould be included in the operating budget as maintenance.

7.2.1 Asset management system

The council uses both SynergySoft and MyData software for asset maintenance. New infrastructure & openspace assets are created and maintained within the Environment and Infrastructure Department.

New land & building assets are created and maintained within the Corporate & Community ServicesDepartment. A single line entry for each asset class in MyData is recorded in SynergySoft and records fordepreciation, additions, disposals and adjustments are reconciled between the two systems. The assetregister is sourced from both systems and compiled on an annual basis.

Accountabilities for asset management system and data maintenance

While the responsibility of the financial data of the assets is with the Finance Manager and the Team LeaderFinance, the accountability for accuracy of the asset information is as follows:

o Manager Infrastructure – Infrastructure (excluding Open Space)o Manager Environment & Recreation – Open Space & Buildingso Manager Finance – Land

7.2 Improvement ProgramThe asset management improvement plan generated from this asset management plan is shown inTable 8.2

Table 8.2: Improvement Plan

TaskNo

Task Responsibility ResourcesRequired

Timeline

1 Annually Review 10 Year Capital WorksProgram

GS, JR Staff October/November eachyear

2 Reflect actual useful lives in next valuation ofthe associated infrastructure assets (desk topreview)

GS, JS, JR,KKS,Assetic

Staff, Assetic As per revaluationrequirements

3 Review Levels of Service GS Staff October/Novembereach year

4 Continue to maintain and quality check theasset register

JS, JR Staff On-going

5 LTFP & Asset Management Plan to align KKS, GS Staff Commencement atthe end of eachfinancial year inreadiness for thenew FY


7.3 Monitoring and Review ProceduresThis asset management plan will be reviewed during annual budget planning processes andamended to recognise any material changes in service levels and/or resources available to providethose services as a result of budget decisions.

The AM Plan will be updated annually to ensure it represents the current service level, asset values,projected operations, maintenance, capital renewal and replacement, capital upgrade/new and assetdisposal expenditures and projected expenditure values incorporated into the organisation’s longterm financial plan.

The AM Plan has a life of 4 years (council election cycle) and is due for complete revision andupdating within 2 years of each council election.

7.4 Performance MeasuresThe effectiveness of the asset management plan can be measured in the following ways:

The degree to which the required projected expenditures identified in this asset managementplan are incorporated into the organisation’s long term financial plan,

The degree to which 1-5 year detailed works programs, budgets, business plans andorganisational structures take into account the ‘global’ works program trends provided by theasset management plan,

The degree to which the existing and projected service levels and service consequences(what we cannot do), risks and residual risks are incorporated into the organisation’sStrategic Plan and associated plans.


8. ReferencesIPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works

Engineering Australia, Sydney, www.ipwea.org.au/IIMM

IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering Australia,Sydney, www.ipwea.org.au/namsplus.

IPWEA, 2009, ‘Australian Infrastructure Financial Management Guidelines’, Institute of Public WorksEngineering Australia, Sydney, www.ipwea.org.au/AIFMG.

IPWEA, 2011, ‘International Infrastructure Management Manual’, Institute of Public WorksEngineering Australia, Sydney, www.ipwea.org.au/IIMM

Community Plan 2036 and Strategic Directions 2016-2020

KBR Urban Stormwater Report 2005

IPWEA, Practice Note 5 v2 Stormwater 2015

Organisation, ‘Annual Plan and Budget’

Stormwater Infrastructure Risk Management Plan

Victor Harbor Urban Growth Management Strategy

Victor Harbor Coastal Management Study 2013


9. AppendicesAppendix A Maintenance Response Levels of Service

Appendix B Projected 10 Year Capital Renewal and Replacement Works Program

Appendix C Projected 10 Year Capital Upgrade/New Works Program

Appendix D Budgeted Expenditures Accommodated in LTFP

Appendix E Gifted Assets 2010 – 30 June 2018

Appendix F Abbreviations

Appendix G Glossary


Appendix A Maintenance Response Levels of Service

Refer to Works Service Requests


Appendix B Projected 10 year Capital Renewal and Replacement Works ProgramYr 2019 Renewal New/Upgrade TotalInlet Program, Construction - Hill and Williams Street $ 30,000 $ 30,000 $ 60,000Coastal Stormwater Outlet Upgrades $ 15,000 $ 15,000 $ 30,000Petrel Ave, Construction Stage 2 of 2 (Final) $ 50,000 $ 450,000 $ 500,000Stormwater Easement - Shields Crescent $ - $ 55,000 $ 55,000

$ 95,000 $ 550,000 $ 645,000

Yr 2020 Renewal New/UpgradeInlet Program, Construction $ 35,000 $ 35,000 $ 70,000Higgins Street, Design $ 35,000 $ - $ 35,000Cakebread Rd - Construction, includes downstream upgrades $ 265,000 $ 265,000 $ 530,000Resolution No. OC1652017 - Giles Street - Underground Stormwater $ 45,000 $ - $ 45,000Record #NREC7713518 - Mill Road, Design Complete - Implementation $ - $ 25,000 $ 25,000Design for upgrade of stormwater downstream of Shields Crescent $ - $ 35,000 $ 35,000

$ 380,000 $ 360,000 $ 740,000

Yr 2021 Renewal New/UpgradeInlet Program Construction $ 25,000 $ 25,000 $ 50,000Seaview Road/Hindmarsh Road Construction $ 800,000 $ 200,000 $ 1,000,000Yilki Common Reserve - Design $ 35,000 $ - $ 35,000Resolution No. OC1672017 - Jagger Rd (between Bluff Rd & Passatt St, western side), placebarrier kerb&channel & deep lift asphalt $ - $ 35,000 $ 35,000

Acraman Street (Hill St/Hinkler St) Construction Stage 1 of 2 $ 500,000 $ 260,000 $ 760,000


Railway Terrace - Warland Reserve to Large Tree - Underground Stormwater (Construction) $ - $ 400,000 $ 400,000

Resolution No. OC1652017 - Giles Street, Giles Street - Underground Stormwater,Construction $ - $ 450,000 $ 450,000

Hindmarsh Rd/Rupara Ave to Ocean Outfall $ 600,000 $ 210,000 $ 810,000

$ 1,960,000 $ 1,580,000 $ 3,540,000

Yr 2022 Renewal New/UpgradeInlet Program Construction $ 25,000 $ 25,000 $ 50,000Churchill Road (Crozier/Inman River) Design $ 35,000 $ - $ 35,000Acraman Street (Hill St/Hinkler St) Construction Stage 2 of 2 $ 500,000 $ 260,000 $ 760,000Bacchus Wetland Upgrade, Construction $ 1,250,000 $ 252,000 $ 1,502,000Higgins Street Construction $ 85,000 $ 85,000 $ 170,000Churchill Road (Crozier - Inman River) Design $ 35,000 $ - $ 35,000Yilki Common Reserve - Construction $ 170,000 $ 170,000 $ 340,000Resolution No. OC1672017 - Jagger Rd (between Bluff Rd & Passatt St, western side), placebarrier kerb&channel & deep lift asphalt $ - $ 170,000 $ 170,000

$ 2,100,000 $ 962,000 $ 3,062,000

Yr 2023 Renewal New/UpgradeInlet Program Construction $ 35,000 $ 35,000 $ 70,000Churchill Road (Crozier/Inman River) Construction $ 140,000 $ 40,000 $ 180,000Haugs Dam Upgrade, Design $ 35,000 $ - $ 35,000Fell Street - Upgrade, Design $ 35,000 $ - $ 35,000Sweetman Avenue, Design $ 35,000 $ - $ 35,000

$ 280,000 $ 75,000 $ 355,000


Yr 2024 Renewal New/UpgradeInlet Program, Construction $ 25,000 $ 25,000 $ 50,000Haugs Dam Upgrade, Construction $ 260,000 $ 50,000 $ 310,000Sweetman Avenue, Construction $ 50,000 $ 50,000 $ 100,000Tabernacle Rd - Bay Rd to Matthews Flinders Drive - (Construction) $ 440,000 $ 1,630,000 $ 2,070,000

$ 775,000 $ 1,755,000 $ 2,530,000

Yr 2025 Renewal New/UpgradeInlet Program, Construction $ 35,000 $ 35,000 $ 70,000Canterbury (Dene/Crozier) Design $ 35,000 $ - $ 35,000Kullaroo Road (Flood Protection Levee) Design $ 40,000 $ - $ 40,000Fell Street, Construction $ 110,000 $ 110,000 $ 220,000

$ 220,000 $ 145,000 $ 365,000

Yr 2026 Renewal New/UpgradeInlet Program, Construction $ - $ 100,000 $ 100,000Canterbury (Dene/Crozier) Construction $ 110,000 $ 110,000 $ 220,000Kullaroo Road (Flood Protection Levee) Construction $ 130,000 $ 130,000 $ 260,000

$ 240,000 $ 340,000 $ 580,000

Yr 2027 Renewal New/UpgradeInlet Program, Construction $ - $ 120,000 $ 120,000Flood Mitigation, Beachfront Caravan Park, Design $ 100,000 $ - $ 100,000


$ 100,000 $ 120,000 $ 220,000

Yr 2028 Renewal New/UpgradeInlet Program, Construction $ - $ 120,000 $ 120,000Flood Mitigation - Beachfront Caravan Park, Construction $ 100,000 $ 700,000 $ 800,000

$ 100,000 $ 820,000 $ 920,000

Appendix C Projected Upgrade/Exp/New 10 year Capital Works ProgramYr 2019 Renewal New/Upgrade TotalInlet Program, Construction - Hill and Williams Street $ 30,000 $ 30,000 $ 60,000Coastal Stormwater Outlet Upgrades $ 15,000 $ 15,000 $ 30,000Petrel Ave, Construction Stage 2 of 2 (Final) $ 50,000 $ 450,000 $ 500,000Stormwater Easement - Shields Crescent $ - $ 55,000 $ 55,000

$ 95,000 $ 550,000 $ 645,000

Yr 2020 Renewal New/UpgradeInlet Program, Construction $ 35,000 $ 35,000 $ 70,000Higgins Street, Design $ 35,000 $ - $ 35,000Cakebread Rd - Construction, includes downstream upgrades $ 265,000 $ 265,000 $ 530,000Resolution No. OC1652017 - Giles Street - Underground Stormwater $ 45,000 $ - $ 45,000


Record #NREC7713518 - Mill Road, Design Complete - Implementation $ - $ 25,000 $ 25,000Design for upgrade of stormwater downstream of Shields Crescent $ - $ 35,000 $ 35,000

$ 380,000 $ 360,000 $ 740,000

Yr 2021 Renewal New/UpgradeInlet Program Construction $ 25,000 $ 25,000 $ 50,000Seaview Road/Hindmarsh Road Construction $ 800,000 $ 200,000 $ 1,000,000Yilki Common Reserve - Design $ 35,000 $ - $ 35,000Resolution No. OC1672017 - Jagger Rd (between Bluff Rd & Passatt St, western side), placebarrier kerb&channel & deep lift asphalt $ - $ 35,000 $ 35,000

Acraman Street (Hill St/Hinkler St) Construction Stage 1 of 2 $ 500,000 $ 260,000 $ 760,000

Railway Terrace - Warland Reserve to Large Tree - Underground Stormwater (Construction) $ - $ 400,000 $ 400,000

Resolution No. OC1652017 - Giles Street, Giles Street - Underground Stormwater,Construction $ - $ 450,000 $ 450,000

Hindmarsh Rd/Rupara Ave to Ocean Outfall $ 600,000 $ 210,000 $ 810,000

$ 1,960,000 $ 1,580,000 $ 3,540,000

Yr 2022 Renewal New/UpgradeInlet Program Construction $ 25,000 $ 25,000 $ 50,000Churchill Road (Crozier/Inman River) Design $ 35,000 $ - $ 35,000Acraman Street (Hill St/Hinkler St) Construction Stage 2 of 2 $ 500,000 $ 260,000 $ 760,000Bacchus Wetland Upgrade, Construction $ 1,250,000 $ 252,000 $ 1,502,000Higgins Street Construction $ 85,000 $ 85,000 $ 170,000Churchill Road (Crozier - Inman River) Design $ 35,000 $ - $ 35,000Yilki Common Reserve - Construction $ 170,000 $ 170,000 $ 340,000


Resolution No. OC1672017 - Jagger Rd (between Bluff Rd & Passatt St, western side), placebarrier kerb&channel & deep lift asphalt $ - $ 170,000 $ 170,000

$ 2,100,000 $ 962,000 $ 3,062,000

Yr 2023 Renewal New/UpgradeInlet Program Construction $ 35,000 $ 35,000 $ 70,000Churchill Road (Crozier/Inman River) Construction $ 140,000 $ 40,000 $ 180,000Haugs Dam Upgrade, Design $ 35,000 $ - $ 35,000Fell Street - Upgrade, Design $ 35,000 $ - $ 35,000Sweetman Avenue, Design $ 35,000 $ - $ 35,000

$ 280,000 $ 75,000 $ 355,000

Yr 2024 Renewal New/UpgradeInlet Program, Construction $ 25,000 $ 25,000 $ 50,000Haugs Dam Upgrade, Construction $ 260,000 $ 50,000 $ 310,000Sweetman Avenue, Construction $ 50,000 $ 50,000 $ 100,000Tabernacle Rd - Bay Rd to Matthews Flinders Drive - (Construction) $ 440,000 $ 1,630,000 $ 2,070,000

$ 775,000 $ 1,755,000 $ 2,530,000

Yr 2025 Renewal New/UpgradeInlet Program, Construction $ 35,000 $ 35,000 $ 70,000Canterbury (Dene/Crozier) Design $ 35,000 $ - $ 35,000Kullaroo Road (Flood Protection Levee) Design $ 40,000 $ - $ 40,000Fell Street, Construction $ 110,000 $ 110,000 $ 220,000

$ 220,000 $ 145,000 $ 365,000


Yr 2026 Renewal New/UpgradeInlet Program, Construction $ - $ 100,000 $ 100,000Canterbury (Dene/Crozier) Construction $ 110,000 $ 110,000 $ 220,000Kullaroo Road (Flood Protection Levee) Construction $ 130,000 $ 130,000 $ 260,000

$ 240,000 $ 340,000 $ 580,000

Yr 2027 Renewal New/UpgradeInlet Program, Construction $ - $ 120,000 $ 120,000Flood Mitigation, Beachfront Caravan Park, Design $ 100,000 $ - $ 100,000

$ 100,000 $ 120,000 $ 220,000

Yr 2028 Renewal New/UpgradeInlet Program, Construction $ - $ 120,000 $ 120,000Flood Mitigation - Beachfront Caravan Park, Construction $ 100,000 $ 700,000 $ 800,000

$ 100,000 $ 820,000 $ 920,000


Appendix D Budgeted Expenditures Accommodated in LTFP

Projected Expenditure 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Capital Expenditure on Renewal/Replacement of existingassets

$95.00 $380.00 $1,960.00 $2,100.00 $280.00 $775.00 $220.00 $240.00 $100.00 $100.00

Capital Expenditure on Upgrade/New assets $550.00 $360.00 $1,580.00 $962.00 $75.00 $1,755.00 $145.00 $340.00 $120.00 $820.00Operational cost of existing assets $231.00 $231.00 $131.00 $131.00 $131.00 $131.00 $131.00 $131.00 $131.00 $131.00Maintenance cost of existing assets $106.00 $106.00 $106.00 $106.00 $106.00 $106.00 $106.00 $106.00 $106.00 $106.00Operational cost of New assets $0.00 $3.14 $5.78 $11.71 $16.01 $17.94 $24.40 $26.56 $29.27 $31.40Maintenance cost of New assets $0.00 $2.20 $4.06 $8.22 $11.24 $12.60 $17.13 $18.65 $20.55 $22.04Disposal of Surplus Assets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

All dollar values in ($'000)'s


Appendix E Gifted Assets 2010 – 30 June 2018AssetID Asset Name Segment/Group

Name Asset Type Water Dams Date ofRecognition

Water DamsRecognition Type

Total ReplacementValue ($)

RB.0030 The Rise Wetland Detention Basin Retention

Basin 30/06/2011 Gifted 185,539.03

RB.0031 The Rise Wetland Storage Pond Retention

Basin 30/06/2011 Gifted 146,887.08

RB.0032 The Rise Wetland Treatment

WetlandRetentionBasin 30/06/2011 Gifted 168,049.16

RB.0035 The Rise Wetland Structure 1 Drop Structure 30/06/2011 Gifted 40,039.65






SE.1411

AquamarineBoulevard SE.1411 Side Entry Pit 30/06/2011 Gifted 4,869.40

SE.1412


SE.1413


SE.1414


SE.1415 Royal Court SE.1415 Side Entry Pit 30/06/2011 Gifted 4,869.40

SE.1416 Royal Court SE.1416 Side Entry Pit 30/06/2011 Gifted 4,869.40


SE.1417


SE.1418


SE.1419 Mint Drive SE.1419 Side Entry Pit 30/06/2011 Gifted 4,869.40

SE.1420 Mint Drive SE.1420 Side Entry Pit 30/06/2011 Gifted 4,869.40

SE.1421 Emerald Drive SE.1421 Side Entry Pit 30/06/2011 Gifted 4,869.40




SE.1425 Sapphire Way SE.1425 Side Entry Pit 30/06/2011 Gifted 4,869.40




SE.1429 Cobalt Drive SE.1429 Side Entry Pit 30/06/2011 Gifted 4,869.40

SE.1430 Ocean Road SE.1430 Junction Pit 30/06/2011 Gifted 2,075.60






SE.1437 Cobalt Drive SE.1437 Junction Pit 30/06/2011 Gifted 2,075.60


SE.1439

AquamarineBoulevard SE.1439 Junction Pit 30/06/2011 Gifted 2,075.60

SE.1440


SE.1441


SE.1442 Mint Drive SE.1442 Grated Inlet Pit 30/06/2011 Gifted 3,573.56

SE.1443 Emerald Drive SE.1443 Junction Pit 30/06/2011 Gifted 2,075.60

SE.1458 Sapphire Way SE.1458 Junction Pit 30/06/2011 Gifted 2,075.60






SE.1525 Franklin Parade SE.1525 Gross Pollutant

Trap 30/06/2011 Gifted 43,092.00



Trap 30/06/2011 Gifted 43,092.00


Trap 30/06/2011 Gifted 43,092.00


Trap 30/06/2011 Gifted 80,028.00


Trap 30/06/2011 Gifted 43,092.00


Trap 30/06/2011 Gifted 43,092.00

SE.1528 Esplanade SE.1528 Gross Pollutant

Trap 30/06/2011 Gifted 43,092.00

SE.1529 Kullaroo Road SE.1529 Gross Pollutant

Trap 30/06/2011 Gifted 43,092.00

SE.1530 Bridge Terrace SE.1530 Gross Pollutant

Trap 30/06/2011 Gifted 80,028.00

SE.1531

The Rise Stage 1Wetlands SE.1531 Gross Pollutant

Trap 30/06/2011 Gifted 80,028.00

SE.1532


Trap 30/06/2011 Gifted 43,092.00

PI.2113 Ocean Road PI.2113 Pipe 30/06/2011 Gifted 24,312.89







PI.2119

AquamarineBoulevard PI.2119 Pipe 30/06/2011 Gifted 3,455.95

PI.2120


PI.2121


PI.2122



PI.2124 Cobalt Drive PI.2124 Pipe 30/06/2011 Gifted 3,455.95

PI.2125


PI.2126


PI.2127 Royal Court PI.2127 Pipe 30/06/2011 Gifted 2,135.13

PI.2128


PI.2129


PI.2130


PI.2131


PI.2132


PI.2133


PI.2134 Mint Drive PI.2134 Pipe 30/06/2011 Gifted 2,166.58


PI.2135 Mint Drive PI.2135 Pipe 30/06/2011 Gifted 2,206.17

PI.2136 Emerald Drive PI.2136 Pipe 30/06/2011 Gifted 2,228.95



PI.2139 Sapphire Way PI.2139 Pipe 30/06/2011 Gifted 5,853.56













PI.2260 The Rise Wetlands PI.2260 Pipe 30/06/2011 Gifted 27,685.81






$1,819,769.30 As of30/06/2011

OC.0105 Drainage Channel OC.0105 Channel 17/02/2012 Gifted 62,486.48




RB.0033 Retention Basin RB.0033 Retention

Basin 17/02/2012 Gifted 14,535.59

SE.1540 Strathmore Court SE.1540 Side Entry Pit 27/01/2012 Gifted 4,869.40


SE.1542 Strathmore Court SE.1542 Junction Pit 27/01/2012 Gifted 2,075.60

SE.1543 Strathmore Court SE.1543 Junction Pit 27/01/2012 Gifted 2,075.60




SE.1548 Stirling Court SE.1548 Junction Pit 17/02/2012 Gifted 2,075.60

SE.1546 Stirling Court SE.1546 Letter Box Pit 17/02/2012 Gifted 2,434.70

SE.1547 Stirling Court SE.1547 Letter Box Pit 17/02/2012 Gifted 2,434.70

SE.1556 Central Drive SE.1556 Side Entry Pit 6/06/2012 Gifted 9,738.79

SE.1557 Central Drive SE.1557 Junction Pit 6/06/2012 Gifted 2,075.60

SE.1558 Central Drive SE.1558 Junction Pit 6/06/2012 Gifted 2,075.60

PI.2284 Welch Road PI.2284 Pipe 17/02/2012 Gifted 25,336.41

PI.2283 Stirling Court PI.2283 Pipe 17/02/2012 Gifted 14,290.75



HW.0321 Stirling Court HW.0321 Headwall 17/02/2012 Gifted 1,138.14



HW.0324 Welch Road HW.0324 Headwall 17/02/2012 Gifted 1,138.14


PI.2276 Strathmore Court PI.2276 Pipe 27/01/2012 Gifted 6,065.88





$374,549.15 As of30/06/2012

SE.1537 Wishart Crescent SE.1537 Junction Pit 21/11/2012 Gifted 2,075.60

SE.1538 Scarlett Court SE.1538 Junction Pit 21/11/2012 Gifted 2,075.60


SE.1465 Wishart Crescent SE.1465 Side Entry Pit 21/11/2012 Gifted 4,869.40



SE.1468 Kay Court SE.1468 Side Entry Pit 21/11/2012 Gifted 4,869.40

SE.1469 Kay Court SE.1469 Side Entry Pit 21/11/2012 Gifted 4,869.40


SE.1471 Kay Court SE.1471 Junction Pit 21/11/2012 Gifted 2,075.60



SE.1473 Scarlett Court SE.1473 Side Entry Pit 21/11/2012 Gifted 4,869.40





SE.1478 Jones Way SE.1478 Side Entry Pit 21/11/2012 Gifted 4,869.40

SE.1479 Jones Way SE.1479 Side Entry Pit 21/11/2012 Gifted 4,869.40





SE.1484 Scarlett Court SE.1484 Side Entry Pit 21/11/2012 Gifted 4,869.40


SE.1486


Trap 21/11/2012 Gifted 80,028.00

SE.1488 Kay Court SE.1488 Junction Pit 21/11/2012 Gifted 2,075.60


SE.1565 White Close SE.1565 Junction Pit 10/12/2012 Gifted 2,075.60


SE.1561 White Close SE.1561 Side Entry Pit 21/12/2012 Gifted 4,869.40

SE.1562 White Close SE.1562 Side Entry Pit 21/12/2012 Gifted 4,869.40

HW.0326 Wishart Crescent HW.0326 Headwall 21/11/2012 Gifted 1,214.07

HW.0327 Scarlett Court HW.0327 Headwall 21/11/2012 Gifted 1,214.07

HW.0328 Wishart Crescent HW.0328 Headwall 21/11/2012 Gifted 1,214.07

PI.2288 Scarlett Court PI.2288 Box Culvert 21/11/2012 Gifted 2,814.60

PI.2169 Wishart Crescent PI.2169 Pipe 21/11/2012 Gifted 10,637.67

PI.2172 Jones Way PI.2172 Pipe 21/11/2012 Gifted 13,181.16

PI.2173 Jones Way PI.2173 Pipe 21/11/2012 Gifted 2,009.31





PI.2177 Scarlett Court PI.2177 Pipe 21/11/2012 Gifted 2,494.69



PI.2182 Kay Court PI.2182 Pipe 21/11/2012 Gifted 2,188.27

PI.2183 Kay Court PI.2183 Pipe 21/11/2012 Gifted 5,667.28











PI.2274 Scarlett Court PI.2274 Pipe 21/11/2012 Gifted 973.03








PI.2297 Central Drive PI.2297 Pipe 6/06/2012 Gifted 2,153.02



PI.2302 White Close PI.2302 Pipe 10/12/2012 Gifted 7,535.58



$428,118.57 As of30/06/2013

SE.1585 Mill Road SE.1585 Junction Pit 30/06/2014 Gifted 2,075.60

SE.1586 Nation Court SE.1586 Side Entry Pit 30/06/2014 Gifted 4,869.40

SE.1587 Nation Court SE.1587 Side Entry Pit 30/06/2014 Gifted 4,869.40

PI.2342 Mill Road PI.2342 Pipe 1/05/2014 Gifted 12,398.86

PI.2340 Nation Court PI.2340 Pipe 30/06/2014 Gifted 2,293.76


PI.2341 Nation Court PI.2341 Pipe 30/06/2014 Gifted 2,333.07

$28,840.08 As of30/06/2014

SE.1638 Shields Crescent SE.1638 Side Entry Pit 1/05/2015 Gifted 4,869.40

SE.1639 Shields Crescent SE.1639 Junction Pit 1/05/2015 Gifted 2,075.60












SE.1651 Inman Valley Road SE.1651 Junction Pit 1/05/2015 Gifted 2,075.60





SE.1655 Cameron Court SE.1655 Side Entry Pit 1/05/2015 Gifted 4,869.40




SE.1659 Cameron Court SE.1659 Junction Pit 1/05/2015 Gifted 2,075.60



SE.1662 Shields Crescent SE.1662 Grated Inlet Pit 1/05/2015 Gifted 2,075.60





SE.1667 Murray Street SE.1667 Junction Pit 1/05/2015 Gifted 2,075.60


SE.1668 Murray Street SE.1668 Side Entry Pit 1/05/2015 Gifted 4,869.40

SE.1669 Murray Street SE.1669 Junction Pit 1/05/2015 Gifted 2,075.60







SE.1676 Murray Street SE.1676 Side Entry Pit 1/05/2015 Gifted 4,869.40




SE.1680 Bacchus Road SE.1680 Junction Pit 1/05/2015 Gifted 2,075.60










SE.1629 Jade Court SE.1629 Junction Pit 15/05/2015 Gifted 2,075.60

SE.1630 Jade Court SE.1630 Junction Pit 15/05/2015 Gifted 2,075.60

SE.1631 Jade Court SE.1631 Side Entry Pit 15/05/2015 Gifted 4,869.40

SE.1632 Jade Court SE.1632 Side Entry Pit 15/05/2015 Gifted 4,869.40




SE.1636 Kleinig Drive SE.1636 Junction Pit 15/05/2015 Gifted 2,075.60


SE.1689 Kingfisher Crescent SE.1689 Junction Pit 18/05/2015 Gifted 2,075.60

SE.1690 Kingfisher Crescent SE.1690 Side Entry Pit 18/05/2015 Gifted 4,869.40





SE.1694

KookaburraBoulevard SE.1694 Junction Pit 18/05/2015 Gifted 2,075.60

SE.1695

KookaburraBoulevard SE.1695 Side Entry Pit 18/05/2015 Gifted 4,869.40

SE.1696


SE.1697


SE.1698


SE.1699


SE.1700


SE.1701


SE.1702

KookaburraBouelvard SE.1702 Side Entry Pit 18/05/2015 Gifted 4,869.40

SE.1703


SE.1704


SE.1705 Rosella Street SE.1705 Junction Pit 18/05/2015 Gifted 2,075.60

SE.1706 Rosella Street SE.1706 Junction Pit 18/05/2015 Gifted 2,075.60


SE.1707 Rosella Street SE.1707 Side Entry Pit 18/05/2015 Gifted 4,869.40



SE.1710 Rosella Street SE.1710 Gross Pollutant

Trap 18/05/2015 Gifted 80,028.00

PI.2393 Jade Court PI.2393 Pipe 15/05/2015 Gifted 5,117.50




PI.2397 Cobalt Drive PI.2397 Pipe 15/05/2015 Gifted 799.93




PI.2401 Kleinig Drive PI.2401 Pipe 15/05/2015 Gifted 1,215.90





PI.2405 Shields Crescent PI.2405 Pipe 1/05/2015 Gifted 5,262.43












PI.2417 Inman Valley Road PI.2417 Pipe 1/05/2015 Gifted 38,774.08










PI.2426 Bacchus Road PI.2426 Pipe 1/05/2015 Gifted 33,067.58

PI.2427 Bacchus Road PI.2427 Pipe 1/05/2015 Gifted 3,717.32




PI.2431 Cameron Court PI.2431 Pipe 1/05/2015 Gifted 2,472.99








PI.2438 Shields Crescent PI.2438 Pipe 1/05/2015 Gifted 738.49

PI.2439 Cameron Court PI.2439 Pipe 1/05/2015 Gifted 888.34











PI.2450 Murray Street PI.2450 Pipe 1/05/2015 Gifted 2,224.34










PI.2459 Kingfisher Crescent PI.2459 Pipe 18/05/2015 Gifted 1,427.95



PI.2462

KookaburraBoulevard PI.2462 Pipe 18/05/2015 Gifted 2,353.41

PI.2463


PI.2464


PI.2465 Rosella Street PI.2465 Pipe 18/05/2015 Gifted 18,032.89


PI.2467


PI.2468




PI.2470


PI.2471


PI.2472


PI.2473






$995,526.85 As of30/06/2015


SE.1750 Buchanan Court SE.1750 Junction Pit 16/02/2016 Gifted 2,075.60






SE.1755 Buchanan Court SE.1755 Side Entry Pit 16/02/2016 Gifted 4,869.40












PI.2489 Buchanan Court PI.2489 Pipe 16/02/2016 Gifted 8,929.40











PI.2499 Buchanan Court PI.2499 Box Culvert 16/02/2016 Gifted 25,066.79








HW.0449 Buchanan Court HW.0449 Headwall 16/02/2016 Gifted 2,462.46







$299,668.62 As of30/06/16

SE.2122

Dutton Circuit(West) SE.2122 Side Entry Pit 20/09/2017 Gifted 4,869.40

SE.2123

Dutton Circuit(West) SE.2123 Junction Pit 20/09/2017 Gifted 3,440.45





SE.2118 Kleinig Drive SE.2118 Side Entry Pit 19/01/2018 Gifted 4,869.40












HW.0518 Dutton Circuit HW.0518 Headwall 20/09/2017 Gifted 924.73

PI.2627 Dutton Circuit PI.2627 Pipe 20/09/2017 Gifted 11,318.28

PI.2628

Dutton Circuit(West) PI.2628 Pipe 20/09/2017 Gifted 7,898.12

PI.2629


PI.2630


PI.2631




$269,521.63 As of30/06/2018

$4,215,994.21 Total


Appendix F Abbreviations

AAAC Average annual asset consumption

AM Asset management

AM Plan Asset management plan

ARI Average recurrence interval

ASC Annual service cost

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wastewater management systems

DA Depreciable amount

DRC Depreciated replacement cost

EF Earthworks/formation

IRMP Infrastructure risk management plan

LCC Life Cycle cost

LCE Life cycle expenditure

LTFP Long term financial plan

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

Soak State of the Assets

SS Suspended solids

vph Vehicles per hour

WDCRD Written down current replacement cost


Appendix G GlossaryAnnual service cost (ASC)1) Reporting actual cost

The annual (accrual) cost of providing aservice including operations, maintenance,depreciation, finance/opportunity and disposalcosts less revenue.

2) For investment analysis and budgetingAn estimate of the cost that would be

tendered, per annum, if tenders were calledfor the supply of a service to a performancespecification for a fixed term. The AnnualService Cost includes operations,maintenance, depreciation, and finance /opportunity and disposal costs, less revenue.

AssetA resource controlled by an entity as a resultof past events and from which future economicbenefits are expected to flow to the entity.Infrastructure assets are a sub-class ofproperty, plant and equipment which are non-current assets with a life greater than 12months and enable services to be provided.

Asset categorySub-group of assets within a class hierarchyfor financial reporting and managementpurposes.

Asset classA group of assets having a similar nature orfunction in the operations of an entity, andwhich, for purposes of disclosure, is shown asa single item without supplementarydisclosure.

Asset condition assessmentThe process of continuous or periodicinspection, assessment, measurement andinterpretation of the resultant data to indicatethe condition of a specific asset so as todetermine the need for some preventative orremedial action.

Asset hierarchyA framework for segmenting an asset baseinto appropriate classifications. The assethierarchy can be based on asset function orasset type or a combination of the two.

Asset management (AM)The combination of management, financial,economic, engineering and other practicesapplied to physical assets with the objective ofproviding the required level of service in themost cost effective manner.

Asset renewal funding ratioThe ratio of the net present value of assetrenewal funding accommodated over a 10year period in a long term financial planrelative to the net present value of projectedcapital renewal expenditures identified in anasset management plan for the same period[AIFMG Financial Sustainability Indicator No8].

Average annual asset consumption (AAAC)*The amount of an organisation’s asset baseconsumed during a reporting period (generallya year). This may be calculated by dividing thedepreciable amount by the useful life (or totalfuture economic benefits/service potential)and totalled for each and every asset OR bydividing the carrying amount (depreciatedreplacement cost) by the remaining useful life(or remaining future economic benefits/servicepotential) and totalled for each and everyasset in an asset category or class.

BorrowingsA borrowing or loan is a contractual obligationof the borrowing entity to deliver cash oranother financial asset to the lending entityover a specified period of time or at a specifiedpoint in time, to cover both the initial capitalprovided and the cost of the interest incurredfor providing this capital. A borrowing or loanprovides the means for the borrowing entity tofinance outlays (typically physical assets)when it has insufficient funds of its own to doso, and for the lending entity to make afinancial return, normally in the form of interestrevenue, on the funding provided.


Capital expenditureRelatively large (material) expenditure, whichhas benefits, expected to last for more than 12months. Capital expenditure includes renewal,expansion and upgrade. Where capitalprojects involve a combination of renewal,expansion and/or upgrade expenditures, thetotal project cost needs to be allocatedaccordingly.

Capital expenditure - expansionExpenditure that extends the capacity of anexisting asset to provide benefits, at the samestandard as is currently enjoyed by existingbeneficiaries, to a new group of users. It isdiscretionary expenditure, which increasesfuture operations and maintenance costs,because it increases the organisation’s assetbase, but may be associated with additionalrevenue from the new user group, eg.extending a drainage or road network, theprovision of an oval or park in a new suburb fornew residents.

Capital expenditure - newExpenditure which creates a new assetproviding a new service/output that did notexist beforehand. As it increases servicepotential it may impact revenue and willincrease future operations and maintenanceexpenditure.

Capital expenditure - renewalExpenditure on an existing asset or onreplacing an existing asset, which returns theservice capability of the asset up to that whichit had originally. It is periodically requiredexpenditure, relatively large (material) in valuecompared with the value of the components orsub-components of the asset being renewed.As it reinstates existing service potential, itgenerally has no impact on revenue, but mayreduce future operations and maintenanceexpenditure if completed at the optimum time,eg. resurfacing or resheeting a material part ofa road network, replacing a material section ofa drainage network with pipes of the samecapacity, resurfacing an oval.

Capital expenditure - upgradeExpenditure, which enhances an existingasset to provide a higher level of service orexpenditure that will increase the life of theasset beyond that which it had originally.Upgrade expenditure is discretionary and

often does not result in additional revenueunless direct user charges apply. It willincrease operations and maintenanceexpenditure in the future because of theincrease in the organisation’s asset base, eg.widening the sealed area of an existing road,replacing drainage pipes with pipes of agreater capacity, enlarging a grandstand at asporting facility.

Capital fundingFunding to pay for capital expenditure.

Capital grantsMonies received generally tied to the specificprojects for which they are granted, which areoften upgrade and/or expansion or newinvestment proposals.

Capital investment expenditureSee capital expenditure definition.

Capitalisation thresholdThe value of expenditure on non-currentassets above which the expenditure isrecognised as capital expenditure and belowwhich the expenditure is charged as anexpense in the year of acquisition.

Carrying amountThe amount at which an asset is recognisedafter deducting any accumulated depreciation/amortisation and accumulated impairmentlosses thereon.

Class of assetsSee asset class definition

ComponentSpecific parts of an asset having independentphysical or functional identity and havingspecific attributes such as different lifeexpectancy, maintenance regimes, risk orcriticality.

Core asset managementAsset management which relies primarily onthe use of an asset register, maintenancemanagement systems, job resourcemanagement, inventory control, conditionassessment, simple risk assessment anddefined levels of service, in order to establishalternative treatment options and long-termcashflow predictions. Priorities are usuallyestablished on the basis of financial returngained by carrying out the work (rather than


detailed risk analysis and optimised decision-making).

Cost of an assetThe amount of cash or cash equivalents paidor the fair value of the consideration given toacquire an asset at the time of its acquisitionor construction, including any costs necessaryto place the asset into service. This includesone-off design and project management costs.

Critical assetsAssets for which the financial, business orservice level consequences of failure aresufficiently severe to justify proactiveinspection and rehabilitation. Critical assetshave a lower threshold for action than non-critical assets.

Current replacement cost (CRC)The cost the entity would incur to acquire theasset on the reporting date. The cost ismeasured by reference to the lowest cost atwhich the gross future economic benefitscould be obtained in the normal course ofbusiness or the minimum it would cost, toreplace the existing asset with atechnologically modern equivalent new asset(not a second hand one) with the sameeconomic benefits (gross service potential)allowing for any differences in the quantity andquality of output and in operating costs.

Deferred maintenanceThe shortfall in rehabilitation work undertakenrelative to that required to maintain the servicepotential of an asset.

Depreciable amountThe cost of an asset, or other amountsubstituted for its cost, less its residual value.

Depreciated replacement cost (DRC)The current replacement cost (CRC) of anasset less, where applicable, accumulateddepreciation calculated on the basis of suchcost to reflect the already consumed orexpired future economic benefits of the asset.

Depreciation / amortisationThe systematic allocation of the depreciableamount (service potential) of an asset over itsuseful life.

Economic lifeSee useful life definition.

ExpenditureThe spending of money on goods andservices. Expenditure includes recurrent andcapital outlays.

ExpensesDecreases in economic benefits during theaccounting period in the form of outflows ordepletions of assets or increases in liabilitiesthat result in decreases in equity, other thanthose relating to distributions to equityparticipants.

Fair valueThe amount for which an asset could beexchanged, or a liability settled, betweenknowledgeable, willing parties, in an arm’slength transaction.

Financing gapA financing gap exists whenever an entity hasinsufficient capacity to finance asset renewaland other expenditure necessary to be able toappropriately maintain the range and level ofservices its existing asset stock was originallydesigned and intended to deliver. The servicecapability of the existing asset stock should bedetermined assuming no additional operatingrevenue, productivity improvements, or netfinancial liabilities above levels currentlyplanned or projected. A current financing gapmeans service levels have already or arecurrently falling. A projected financing gap ifnot addressed will result in a future diminutionof existing service levels.

Heritage assetAn asset with historic, artistic, scientific,technological, geographical or environmentalqualities that is held and maintained principallyfor its contribution to knowledge and cultureand this purpose is central to the objectives ofthe entity holding it.

Impairment LossThe amount by which the carrying amount ofan asset exceeds its recoverable amount.


Infrastructure assetsPhysical assets that contribute to meeting theneeds of organisations or the need for accessto major economic and social facilities andservices, eg. roads, drainage, footpaths andcycleways. These are typically large,interconnected networks or portfolios ofcomposite assets. The components of theseassets may be separately maintained,renewed or replaced individually so that therequired level and standard of service from thenetwork of assets is continuously sustained.Generally the components and hence theassets have long lives. They are fixed in placeand are often have no separate market value.

Investment propertyProperty held to earn rentals or for capitalappreciation or both, rather than for:(a) use in the production or supply of goods or

services or for administrative purposes; or(b) sale in the ordinary course of business.

Key performance indicatorA qualitative or quantitative measure of aservice or activity used to compare actualperformance against a standard or othertarget. Performance indicators commonlyrelate to statutory limits, safety,responsiveness, cost, comfort, assetperformance, reliability, efficiency,environmental protection and customersatisfaction.

Level of serviceThe defined service quality for a particularservice/activity against which serviceperformance may be measured. Servicelevels usually relate to quality, quantity,reliability, responsiveness, environmentalimpact, acceptability and cost.

Life Cycle Cost *1. Total LCC The total cost of an asset

throughout its life including planning, design,construction, acquisition, operation,maintenance, rehabilitation and disposal costs.

2. Average LCC The life cycle cost (LCC) isaverage cost to provide the service over thelongest asset life cycle. It comprises averageoperations, maintenance expenditure plusasset consumption expense, represented bydepreciation expense projected over 10 years.The Life Cycle Cost does not indicate the fundsrequired to provide the service in a particularyear.

Life Cycle ExpenditureThe Life Cycle Expenditure (LCE) is theaverage operations, maintenance and capitalrenewal expenditure accommodated in thelong term financial plan over 10 years. LifeCycle Expenditure may be compared toaverage Life Cycle Cost to give an initialindicator of affordability of projected servicelevels when considered with asset ageprofiles.

Loans / borrowingsSee borrowings.

MaintenanceAll actions necessary for retaining an asset asnear as practicable to an appropriate servicecondition, including regular ongoing day-to-daywork necessary to keep assets operating, eg roadpatching but excluding rehabilitation or renewal. Itis operating expenditure required to ensure thatthe asset reaches its expected useful life.• Planned maintenance

Repair work that is identified and managedthrough a maintenance management system(MMS). MMS activities include inspection,assessing the condition againstfailure/breakdown criteria/experience,prioritising scheduling, actioning the work andreporting what was done to develop amaintenance history and improvemaintenance and service deliveryperformance.

• Reactive maintenanceUnplanned repair work that is carried out inresponse to service requests andmanagement/ supervisory directions.

• Specific maintenanceMaintenance work to repair components orreplace sub-components that needs to beidentified as a specific maintenance item inthe maintenance budget.

• Unplanned maintenanceCorrective work required in the short-term torestore an asset to working condition so it cancontinue to deliver the required service or tomaintain its level of security and integrity.


Maintenance expenditure *Recurrent expenditure, which is periodically orregularly required as part of the anticipatedschedule of works required to ensure that theasset achieves its useful life and provides therequired level of service. It is expenditure,which was anticipated in determining theasset’s useful life.

MaterialityThe notion of materiality guides the margin oferror acceptable, the degree of precisionrequired and the extent of the disclosurerequired when preparing general purposefinancial reports. Information is material if itsomission, misstatement or non-disclosure hasthe potential, individually or collectively, toinfluence the economic decisions of userstaken on the basis of the financial report oraffect the discharge of accountability by themanagement or governing body of the entity.

Modern equivalent assetAssets that replicate what is in existence withthe most cost-effective asset performing thesame level of service. It is the most costefficient, currently available asset which willprovide the same stream of services as theexisting asset is capable of producing. Itallows for technology changes and,improvements and efficiencies in productionand installation techniques

Net present value (NPV)The value to the organisation of the cash flowsassociated with an asset, liability, activity orevent calculated using a discount rate toreflect the time value of money. It is the netamount of discounted total cash inflows afterdeducting the value of the discounted totalcash outflows arising from eg the continueduse and subsequent disposal of the asset afterdeducting the value of the discounted totalcash outflows.

Non-revenue generating investmentsInvestments for the provision of goods andservices to sustain or improve services to thecommunity that are not expected to generateany savings or revenue to the organisation,eg. parks and playgrounds, footpaths, roadsand bridges, libraries, etc.

OperationsRegular activities to provide services such aspublic health, safety and amenity, eg streetsweeping, grass mowing and street lighting.

Operating expenditureRecurrent expenditure, which is continuouslyrequired to provide a service. In common usethe term typically includes, eg power, fuel,staff, plant equipment, on-costs andoverheads but excludes maintenance anddepreciation. Maintenance and depreciation ison the other hand included in operatingexpenses.

Operating expenseThe gross outflow of economic benefits, beingcash and non-cash items, during the periodarising in the course of ordinary activities of anentity when those outflows result in decreasesin equity, other than decreases relating todistributions to equity participants.

Operating expensesRecurrent expenses continuously required toprovide a service, including power, fuel, staff,plant equipment, maintenance, depreciation,on-costs and overheads.

Operations, maintenance and renewalfinancing ratioRatio of estimated budget to projectedexpenditure for operations, maintenance andrenewal of assets over a defined time (eg 5, 10and 15 years).

Operations, maintenance and renewal gapDifference between budgeted expenditures ina long term financial plan (or estimated futurebudgets in absence of a long term financialplan) and projected expenditures foroperations, maintenance and renewal ofassets to achieve/maintain specified servicelevels, totalled over a defined time (e.g. 5, 10and 15 years).

Pavement management system (PMS)A systematic process for measuring andpredicting the condition of road pavementsand wearing surfaces over time andrecommending corrective actions.


PMS ScoreA measure of condition of a road segmentdetermined from a Pavement ManagementSystem.

Rate of annual asset consumption *The ratio of annual asset consumption relativeto the depreciable amount of the assets. Itmeasures the amount of the consumable partsof assets that are consumed in a period(depreciation) expressed as a percentage ofthe depreciable amount.

Rate of annual asset renewal *The ratio of asset renewal and replacementexpenditure relative to depreciable amount fora period. It measures whether assets arebeing replaced at the rate they are wearing outwith capital renewal expenditure expressed asa percentage of depreciable amount (capitalrenewal expenditure/DA).

Rate of annual asset upgrade/new *A measure of the rate at which assets arebeing upgraded and expanded per annum withcapital upgrade/new expenditure expressedas a percentage of depreciable amount(capital upgrade/expansion expenditure/DA).

Recoverable amountThe higher of an asset's fair value, less coststo sell and its value in use.

Recurrent expenditureRelatively small (immaterial) expenditure orthat which has benefits expected to last lessthan 12 months. Recurrent expenditureincludes operations and maintenanceexpenditure.

Recurrent fundingFunding to pay for recurrent expenditure.

RehabilitationSee capital renewal expenditure definitionabove.

Remaining useful lifeThe time remaining until an asset ceases toprovide the required service level or economicusefulness. Age plus remaining useful life isuseful life.

RenewalSee capital renewal expenditure definitionabove.

Residual valueThe estimated amount that an entity wouldcurrently obtain from disposal of the asset,after deducting the estimated costs ofdisposal, if the asset were already of the ageand in the condition expected at the end of itsuseful life.

Revenue generating investmentsInvestments for the provision of goods andservices to sustain or improve services to thecommunity that are expected to generatesome savings or revenue to offset operatingcosts, eg public halls and theatres, childcarecentres, sporting and recreation facilities,tourist information centres, etc.

Risk managementThe application of a formal process to therange of possible values relating to key factorsassociated with a risk in order to determine theresultant ranges of outcomes and theirprobability of occurrence.

Section or segmentA self-contained part or piece of aninfrastructure asset.

Service potentialThe total future service capacity of an asset. Itis normally determined by reference to theoperating capacity and economic life of anasset. A measure of service potential is usedin the not-for-profit sector/public sector tovalue assets, particularly those not producinga cash flow.

Service potential remainingA measure of the future economic benefitsremaining in assets. It may be expressed indollar values (Fair Value) or as a percentageof total anticipated future economic benefits. Itis also a measure of the percentage of theasset’s potential to provide services that is stillavailable for use in providing services(Depreciated Replacement Cost/DepreciableAmount).

Specific MaintenanceReplacement of higher valuecomponents/sub-components of assets that isundertaken on a regular cycle including


repainting, replacement of air conditioningequipment, etc. This work generally fallsbelow the capital/ maintenance threshold andneeds to be identified in a specificmaintenance budget allocation.

Strategic Longer-Term PlanA plan covering the term of office of councillors(4 years minimum) reflecting the needs of thecommunity for the foreseeable future. It bringstogether the detailed requirements in theCouncil’s longer-term plans such as the assetmanagement plan and the long-term financialplan. The plan is prepared in consultation withthe community and details where the Councilis at that point in time, where it wants to go,how it is going to get there, mechanisms formonitoring the achievement of the outcomesand how the plan will be resourced.

Sub-componentSmaller individual parts that make up acomponent part.

Useful lifeEither:(a) the period over which an asset is expected to

be available for use by an entity, or(b) the number of production or similar units

expected to be obtained from the asset by theentity.

It is estimated or expected time betweenplacing the asset into service and removing itfrom service, or the estimated period of timeover which the future economic benefitsembodied in a depreciable asset, areexpected to be consumed by the organisation.

Value in UseThe present value of future cash flowsexpected to be derived from an asset or cashgenerating unit. It is deemed to bedepreciated replacement cost (DRC) for thoseassets whose future economic benefits are notprimarily dependent on the asset's ability togenerate net cash inflows, where the entitywould, if deprived of the asset, replace itsremaining future economic benefits.

Source: IPWEA, 2009, AIFMG Glossary

Additional and modified glossary items shown*

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