Asset Management Policy - City of Marion


Nov 18, 2013 (4 years and 5 months ago)


If using a printed copy of this document, be aware that whilst it was correct at the time of printing,
it may have since been amended.
Policy Number:
Version Number:
Asset Management Policy
The focus of this policy will enable informed decision making on the provision of services. Whilst
Council is the custodian of a large and diverse asset portfolio that has been accumulated over a long
period, the purpose of strategic asset management is to determine the optimum method to provide the
desired service levels for current and future generations.
The City of Marion currently owns and maintains over $429 million worth of assets including
infrastructure (e.g. roads, drainage), land, buildings, furniture and fittings, and equipment. These
assets make up the social and economic infrastructure that enables the provision of services to the
community and businesses, playing a vital role in the local economy and on quality of life. Asset
management is a tool that facilitates corporate accountability and impacts on all areas of service
planning and delivery.
The Community Plan expresses the desires of the community and provides a resource to assist
Council in the determination of appropriate and sustainable levels of service.
The Strategic Plan sets the desired services that Council will provide to the community. The asset
management process determines the life cycle cost and funding requirements of the target service
levels for current and future generations. The long-term financial plan is the mechanism by which the
funding requirements of the asset management plan and other corporate objectives in the Strategic
Plan are tested and implemented.
This policy sets the principles that will govern the provision of asset related services. The asset
management framework and strategy sets out the process to determine the life cycle cost of each
service and a funding model to achieve and sustain the target service levels. The framework will
define accountabilities for service planning and delivery.
The following definitions will be utilised when dealing with asset management issues with the City
of Marion.
An individual or group of physical objects, which has value, enables services to be
provided and has an economic life of greater than 12 months.

“Asset Management”
The combination of management, financial, economic, engineering and other practices
applied to physical assets with the objective of providing the required service level in the
most cost effective manner.
“Lifecycle Cost”
The total cost of an asset throughout its life including planning, design, construction,
acquisition, operation, maintenance, rehabilitation and disposal costs.
“New Asset”
Refers to the construction/purchase of an asset that is not currently part of Councils
asset base.
If using a printed copy of this document, be aware that whilst it was correct at the time of printing,
it may have since been amended.
“Renewal Asset”
Refers to the construction/purchase of an asset that is currently included as part of
Councils asset base.
“Service Level”
A relevant, measurable standard or target (or collection of standards and targets) of
performance related to an Asset. Service Levels should distinguish between issues
related to the assets and issues related to staff, community organisations and volunteers
that perform services related to assets. Service Levels are a combination of functional
criteria related to quality, quantity, reliability, responsiveness, environmental acceptability
and cost, derived in consultation with clients, and used to measure Asset performance.
“Asset Sustainability Index”
Provides a measure as to whether Council’s asset base is being adequately maintained. It
expresses as a percentage the proportion of the total asset value consumed (depreciation)
compared to the amount spent in preserving the asset (capital replacement/renewal).
The following key principles will define Council’s approach to asset management.
Assets exist to support the delivery of services
Asset Management decisions are integrated with Strategic Planning.
Asset Planning decisions are based on an evaluation of alternatives which consider life cycles,
costs, benefits and risks of ownership.
Systems are developed to provide accountability for asset conditions, usage and performance.
Disposal decisions are based on analysis of the methods which achieve the best available net
return (lowest whole of life cost).
An effective internal control structure is established.
Council will maintain a Long Term Asset Management Plan to identify future asset management
requirements within the context of a Long Term Financial Framework
Asset renewal requirements will be separately identified from new assets which will undergo a
separate annual approval process by Council.
Council recognises the need to maintain its asset base and will target a long term asset
sustainability index averaging 95-100%.
Council will use the Asset Management Sustainability Reserve (refer ‘Reserve Fund Policy') to
assist with funding Long Term Asset Management requirements
If using a printed copy of this document, be aware that whilst it was correct at the time of printing,
it may have since been amended.
Corporate Plan:
Delivery of Community Vision
∙ Objective 1.2

Boost the qualit
of life in the Cit
of Marion.
∙ Objective 1.4

A more sustainable Cit
∙ Objective 1.5

A safe and secure Cit
Excellence in Governance
∙ Objective 2.2

Advance the ali
nment of financial and ph
sical resources to Council and
community priorities.
∙ Objective 2.4

A more sustainable or
Delivery of Quality Customer Service
∙ Objective 3.2

Ensure that services are provided of the best value to meet communit

Procedure References:
∙ Sale of Assets Policy
∙ Roads Opening and Closing Policy
Other Related References:
∙ Local Government Act 1999 (South Australia)
∙ Community Land Management Plans
Reserve Fund Policy
Previous Versions: