2018-12-11 S&O Agenda - Attachment 1 to Item 16 - Road Infrastructure Asset Management Plan

6.                Financial Summary
6.1    Financial Statements and Projections
Council’s road infrastructure plays a vital role in connectivity of the 867km road network (both 670km
sealed and 197km unsealed roads) across the Noosa Shire. There are in excess of 38,000 financial
road infrastructure assets on Council’s register, considered in this Asset Management Plan (AMP).
The road infrastructure assets have a current replacement value of $420m, which equates to
approximately 43% of Council’s financial assets.

The operational and maintenance expenses for road infrastructure make up approximately 14% of
the $90m annual budget. The capital works program fluctuates from year to year, however, the
proposed 2018/19 capital works program the capital investment of $6.9m for road infrastructure
equates to 23% 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 road infrastructure 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 road infrastructure 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 9 identifies the current forecasts for the operational, maintenance and renewal expenses to
demonstrate the whole of life costs over a 10-year period for the road infrastructure in the amount of
$202.8m. In summarising, the 10-year forecast has an overall expenditure of $17.7m p.a. to $18.9m
p.a. from year 1 to year 10. There will be further asset renewal and maintenance activities to be
developed over coming years that will influence this current forecast. To achieve good asset
knowledge of all road infrastructure assets it is important to continue with undertaking asset data
reconciliation and physical condition assessments to make well informed asset decisions.

The road infrastructure assets have varying useful lives for the asset classes maintained by Council.
The road infrastructure useful lives vary, based on construction, material type and have estimated
lives between 20 – 100 years.




Asset Management Plan: Roads Infrastructure                                                   Page 20