2019-07-09 S&O Agenda - Item 5 - Attachment 1 - Building and Facilities Asset Management Plan

6. Financial Summary
6.1    Financial Statements and Projections
Council’s buildings and facilities play a vital role in the services provided to the community across
the Noosa Shire. There are approximately 1,279 building component assets on Council’s financial
register considered in this Asset Management Plan (AMP). The building and facility assets have a
current replacement value of $82m, equating to approximately 8% of Council’s financial assets.

The capital, operational and maintenance expenses for buildings and facilities make up
approximately 7% of the $90m annual budget. The capital works program fluctuates from year to
year, however, the 2018/19 capital works program the capital investment of $5m for buildings and
facilities equates to 17% of the $29.5m capital works program.

The annual operating plan details the financial statements and projections associated with the
operational and maintenance expenses for the services the buildings and facilities support on an
annual basis. The capital investments including renewals, upgrades and expansions are highlighted
in the annual capital works program which is reflected in the 10-year capital works program.


6.2    Funding Strategies
The immediate improvements to funding requests for maintenance and renewals in the budget
process are now evidence based and are supported from the condition assessments that have been
carried out.

The funding strategy, key assumptions, reliability and confidence levels are detailed in the Council’s
long-term financial plan. More detailed funding strategies that promote the long-term sustainability
of the buildings and facilities will be further developed and defined in future asset management plans.


6.3    Budget Forecasts
Budget forecasts will continue to be developed as information is captured and reported from the
Technology One (T1) financial system. Through the annual review of actuals, maintenance and
renewal activities against budget will initiate further development and identify trends that are
reportable and reflect future year forecasts.

Figure 10 below identifies the current forecasts for the operational, maintenance upgrade and
renewal expenses to demonstrate the whole of life costs over a 10-year period for the buildings and
facilities by program, in the amount of $65.1m. There will be further asset renewal, upgrades and
maintenance activities to be developed over coming years that will influence this current forecast.
To achieve good asset knowledge of all buildings and facilities assets it is important to continue with
undertaking asset data reconciliation and physical condition assessments to make well informed
asset decisions.

The buildings and facilities assets have varying useful lives for the asset classes maintained by
Council. The buildings and facilities useful lives vary, based on construction, material type and have
estimated lives between 15 – 60 years.




Asset Management Plan: Buildings and Facilities                                                Page 19