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LGA ‘Infrastructure and Asset Management (Policy and Planning) Information Paper

  • -

    August 2006

  • 2.


    • planned maintenance;

    • unplanned maintenance;

    • maintenance of asset records;

    • condition assessment (to review maintenance needs).

  • 3.


    • condition assessment and likely income to be derived (to determine optimal timing of replacement/disposal);

    • determination of method of disposal;

    • site rehabilitation (where applicable);

    • other environmental considerations (where applicable).

The elected bodies of Councils determine the policy framework within which existing assets are managed and new assets acquired and the overall program for maintenance and disposal of assets. This policy framework will typically have regard to the link between the purchase, upgrade and disposal of assets, the delivery of services to communities and consultation processes required to ensure communities are well informed and able to influence the decisions of their Councils.

The role of Council staff is to assist the elected body to translate its asset management policy objectives into plans that will enable Councils to efficiently and effectively manage their asset portfolios and address issues such as:

overall objectives for asset management having regard to the implications for service

levels, financial, legal and regulatory matters; management of asset information systems, addressing issues such as


condition, performance, capacity/utilisation, risk, lifecycle costs, maintenance history etc.; risk identification, assessment and control in the short and long term.

The purpose of infrastructure and asset management plans is to recognise asset consumption and ascertain likely future maintenance and renewal needs and to consider infrastructure needs to meet future community service expectations. Costs inherent in infrastructure and asset management plans need to be reflected in Councils’ long term financial plans and both of these documents are integral to, and will be heavily influenced by, the strategic management plans of Councils.

With establishment of appropriate policy and planning mechanisms, staff can put in place operational controls and procedures to meet Councils’ objectives so as to:

  • ensure that assets are properly managed and maintained;

  • create and maintain suitable information and decision support systems to allow for the systematic establishment of service levels and the appropriate solutions to provide for those service levels;

  • monitor the condition and performance of existing assets to meet the required service levels;

  • ensure that appropriate records of assets are created and maintained;

  • ensure that the system of internal controls safeguard assets from misuse or misappropriation;

  • monitor the achievement of plans;

  • provide regular reports on the achievement of plans; and,

  • regularly review the asset management and long term financial plans.


DME 25101

LGA Financial Sustainability Program – www.lga.sa.gov.au/goto/fsp

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