Asset Management

Attachment 1

Asset Management Policy






Policy Name

Doc No







Approved By:

Review Date


CouncilNambucca Shire




1.0 Purpose

To set guidelines for implementing consistent asset management processes throughout.Nambucca Shire.



2.0 Objective

To ensure adequate provision is made for the long-term replacement of major assets by:

††††† Ensuring that Councilís services and infrastructure are provided in a sustainable manner, with the appropriate levels of service to residents, visitors and the environment.

††††† Safeguarding Council assets including physical assets and employees by implementing appropriate asset management strategies and appropriate financial resources for those assets.

††††† Creating an environment where all Council employees take an integral part in overall management of Council assets by creating and sustaining an asset management awareness throughout the Council.

††††† Meeting legislative requirements for asset management.

††††† Ensuring resources and operational capabilities are identified and responsibility for asset management is allocated.

††††† Demonstrating transparent and responsible asset management processes that align with demonstrated best practice.


3.0 Scope

This policy applies to all Council activities.


4.0 Policy

4.1†††† Background


4.1.1Council is committed to implementing a systematic asset management methodology in order to apply appropriate asset management best practices across all areas of Council.This includes ensuring that assets are planned, created, operated, maintained, renewed and disposed of in accordance with Councilís priorities for service delivery.

4.1.2Council owns and uses approximately $367,974,000 of non-current assets to support its core business of delivery of service to the community.

4.1.3Asset management practices impact directly on the core business of Council and appropriate asset management is required to achieve our strategic service delivery objectives.




4.1.4Asset management relates directly to the Strategic Plan.



A Viable and Sustainable Future.



4.1.5A strategic approach to asset management will ensure that the Council delivers the highest appropriate level of service through its assets.This will provide positive impact on;

†††† Members of the public and staff;

†††† Councilís financial position;

†††† The ability of Council to deliver the expected level of service and infrastructure;

†††† The political environment in which Council operates; and

†††† The legal liabilities of Council.



4.2 Principles


4.2.1A consistent Asset Management Strategy must exist for implementing systematic asset management and appropriate asset management best-practice throughout all Departments of Council.

4.2.2All relevant legislative requirements together with political, social and economic environments are to be taken into account in asset management.

4.2.3Asset management principles will be integrated within existing planning and operational processes.

4.2.4An inspection regime will be used as part of asset management to ensure agreed service levels are maintained and to identify asset renewal priorities.

4.2.5Asset renewals required to meet agreed service levels and identified in infrastructure and asset management plans and long term financial plans will be fully funded in the annual budget estimates.

4.2.6Service levels agreed through the budget process and defined in Infrastructure and Asset Management Plans will be fully funded in the annual budget estimates.

4.2.7Asset renewal plans will be prioritised and implemented progressively based on agreed service levels and the effectiveness of the current assets to provide that level of service.

4.2.8Systematic and cyclic reviews will be applied to all asset classes and are to ensure that the assets are managed, valued and depreciated in accordance with appropriate best practice and applicable Australian Standards.

4.2.9Future life cycle costs will be reported and considered in all decisions relating to new services and assets and upgrading of existing services and assets.

4.2.10 Future service levels will be determined in consultation with the community.


5.0 Legislation

Local Government Act 9999.

Regulations under the Act.



6.0 Related Documents

Asset Management Strategy and associated Infrastructure and Asset Management Plans.



Councillors are responsible for adopting the policy and ensuring that sufficient resources are applied to manage the assets.

The General Manager has overall responsibility for developing an asset management strategy, plans and procedures and reporting on the status and effectiveness of asset management within Council.


Review Date



Meeting Reference


This policy has a life of 4 years.It will be reviewed in Jan 2012.

Council Meeting Date







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