/ Long Term Asset Management Planning
Glenorchy City Council, Tasmania
In 2004/05, Council adopted a Total Asset Management Implementation project – covering services related to all infrastructure – roads, footpaths, buildings, stormwater, sewerage and water.
Service levels have been developed for all asset classes and predictive modeling has been undertaken for all asset classes. The development has been undertaken from the ground-up, i.e. all depot staff, management and Councillors have been involved in developing and endorsing the levels of service.
Council now sets its budgets on the basis of the models that have been implemented through Assetic's systems. Policies were revised in consultation with Councillors, including funding increases to mitigate gaps and have received full Council endorsement.
See notes below from the finance manager.
On Monday night Council passed its 2006/07 budget. The budget (based on our new policies) contained a rate rise of 5.38%. Considering that 12 months ago the general rate rise was 0.00%, this was quiet an achievement.
On budget night many Aldermen spoke strongly in favour of the Asset Management process, due primarily to the need to prevent our assets decaying further.
To have Aldermen looking beyond 12 months, well into the future and towards the legacy they may leave was fantastic.
I have no doubt that without the proper systems and implementation support, such a change would not have been possible.
In my view our ability (through Assetic's MyPredictor) to clearly illustrate the consequences of under funding our assets was the pivotal moment in this process.
Thank you, Kim Wiggins
Kim was recently voted ‘achiever of the year’ at the National LG Focus Awards for his work in financial modeling of assets