POLICY Review - Asset Management Policy

















Draft: November 2010

Last reviewed:




Our Vision


Nambucca Valley ~ Living at its best.


OurMission Statement


ĎThe Nambucca Valley will value and protect its natural environment, maintain its assets and infrastructure and develop opportunities for its people.í




1.0 Policy Objective

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


2.0 Related Legislation

Local Government Act 1993.

Regulations under the Act.


3.0 Definitions

This policy applies to all Council activities and associated assets


4.0 Policy†††† Statement

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 is custodian of over $263m (2009) 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 supports Councilís 20 year Community Strategic Plan by ensuring levels of service meet community expectations within constraints of funding and conflicting priorities.

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.

4.2.4Asset maintenance and renewals required to meet agreed service levels and identified in infrastructure and asset management plans and long term financial plans should be fully funded in the annual budget estimates.If full funding is not available then a reduced level of service will need to be agreed.

4.2.5Service levels agreed through the budget process and defined in Infrastructure and Asset Management Plans will be fully funded in the annual budget estimates.

4.2.6Asset 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.

4.2.7An inspection regime will be used as part of asset management to ensure agreed service levels are maintained and to identify asset renewal priorities.

4.2.8Systematic 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.





Related Documents

Asset Management Planning for NSW Local Government.(Department of Local Government)


Asset Management Strategy and associated Infrastructure and Asset Management Plans.





Local Government in NSW is responsible for assets worth approximately $50 billion.Infrastructure assets include roads, water and sewerage assets, drains, bridges, footpaths and public buildings.A strong and sustainable local government system requires a robust planning process to ensure that those assets are maintained and renewed in the most appropriate way on behalf of local communities.As custodian, local government is responsible to effectively account for and manage these assets and to have regard to the long term and cumulative effects of its decision.This is a core function of councils and is reflected in the Charter, in section 8 of the Local Government Act 1993 (NSW).


Given the value and importance of infrastructure assets, it is essential that they are well managed to ensure their future sustainability.Failure to adequately manage infrastructure assets is a key risk that could prevent local councils from achieving their strategic goals.An existing and urgent concern is that many councils have not established asset management systems and practices that will allow them to identify and respond to this challenge.