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Bega Valley Shire CouncilBega Valley Shire Council

Asset Management Plan - Buildings

Asset Management Plan - Buildings.What is this plan about?

This AM Plan covers the infrastructure assets that serve the Bega Valley Shire Council community building needs.  These assets include Halls, Libraries, Regional Gallery, Office and Depots, Children’s Centres, Council owned Museums and other community buildings throughout the Shire that enable people to enjoy and participate in a range of activities.

What is an Asset Management Plan?

Asset management planning is a comprehensive process to ensure delivery of services from infrastructure is provided in a financially sustainable manner.

An AM Plan details information about infrastructure assets including actions required to provide an agreed level of service in the most cost effective manner. The plan defines the services to be provided, how the services are provided and what funds are required to provide the services.

Why is there a funding shortfall?

Most of the Council’s building network was constructed by developers and from government grants, often provided and accepted without consideration of ongoing operations, maintenance and replacement needs.

Many of these assets are approaching the later years of their life and require replacement. Services from the assets are decreasing and maintenance costs are increasing.

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

This is being pro-actively managed through consideration of divestment.  Divestment resolutions from Council to date have technically limited funding shortfalls.

What options do we have?

Resolving the funding shortfall involves several steps:

  1. Improving asset knowledge so that data accurately records the asset inventory, how assets are performing and when assets are not able to provide the required service levels.  To that extent we are ‘ground truthing’ information for our asset base via industry experts;
  2. Improving our efficiency in operating, maintaining, renewing and replacing existing assets to optimise life cycle costs;
  3. Identifying and managing risks associated with providing services from building assets;
  4. Making trade-offs between service levels and costs to ensure that the community receives the best return from its building assets;
  5. Identifying assets surplus to needs for disposal or divestment to make savings in future operations and maintenance costs (ie. rationalising assets);
  6. Consulting with the community to ensure that community building services and costs meet changing community needs and are affordable;
  7. Developing partnerships with other bodies where available to provide services; and
  8. Improving the Governance model (through the Functional Asset Owners Group) to appropriate consultative decision making.

What happens if we don’t manage the shortfall?

Where a shortfall in funding occurs, there are a number of approaches for managing the ongoing asset portfolio.  This can be a combination of reduction in levels of service, as well as critically appraising which assets require works. It is likely that we will have to reduce service levels in some areas, unless new sources of revenue are found. For Community Buildings, the service level reduction may include the types, timings and levels of renewal and upgrades that can occur.

It is also important to recognise that Council needs to maintain balance between its building stocks and community expectations.  This means that decisions will be required about potential divestment scenarios into the future.  These scenarios will be managed via community consultation and Councillor workshops and are expected to occur in the 2017 calendar year.

What can we do?

We can develop options, costs and priorities for future community building services, consult with the community to plan future services to match the community service needs with ability to pay for services and maximise community benefits against costs.

 

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