ALGA National State of the Assets Project

1. ALGA National State of the Assets Project

2. Sustainability - this is serious • Get your numbers right • Talk to your community about living within your means • Advocacy - state of the assets data collection starts next week

3. OPERATIONS – Maintenance & Engineering ASSETS AT RISK(at current level of investment) TODAY +10 YEARS CONDITION ~$XB Poor FUNCTION CAPACITY ~$2XB Poor

6. Moving to 50% Not Sustainable

8. 1. Sustainability - this is serious

9. 2. Competency – get your numbers right

10. 3. Engagement – Living within your means

11. 4. Advocacy – Infrastructure is a whole of government issue

12. ALGA National State of the Assets Project

13. Background ALGA commissioned Jeff Roorda and Associates (JRA) to develop a National State of the Assets Report 2012. This is to build on the work undertaken by JRA in 2010 that looked at the gap in funding for local roads. This new Report was to provide a clearer picture about the state of local road assets in terms of quality, functionality and capacity. The focus for the review is sealed local roads, and unsealed local roads, concrete bridges and timber bridges. 

14. Background The ALGA, together with the Local Government Associations in each State and Northern Territory, identified a number of councils for inclusion in the pilot phase. These councils were selected to include both urban and rural local governments in each State and Territory. 55 councils provided data for inclusion in the pilot phase.

15. Contributors

16. 2012 Outcomes Councils have high levels of awareness of the quality / condition of the road and bridges infrastructure. .

17. Outcomes Council asset managers have lower confidence in the data associated with the functionality and capacity of the roads and bridges.. But it is important

18. Finding 1 State of the Assets Reporting is achievable

19. Finding 2 There are significant benefits and low costs in extending State of the Assets reporting to all councils in Australia

20. Finding 3 State of the Assets Reporting will identify financial sustainability challenges

21. Recommendations The Australian Local Government Association should: Monitor via an annual process the actual physical state of the transport infrastructure managed by local government. Monitor the extent to which councils have implemented integrated planning processes that encompass asset management plans and long term financial plans as a minimum. Consider a national timetable for the achievement of properly formulated and complete asset management plans and long term financial plans. Report on the state of the transport infrastructure and any emerging trends in terms of the deterioration or improvement in those assets.

22. Recommendations All Australian councils should: Separately identify planning for renewals as distinct from planning for new and upgrade projects. Ensure that the measurable physical state of the road infrastructure matches underlying asset management planning assumptions and projections.

23. Recommendations State Local Government Agencies need to: Provide support to consistent monitoring and reporting of the current state of roads and bridges assets under management by local governments in each jurisdiction. The Commonwealth Government should: Continue Local Government Reform Fund projects to further accelerate implementation of asset management planning and reporting in all councils.

24. In 2013 • A complete data set from all Australian local governments will be available for the first time. • Data will then be available: • in total for all councils • by State or Territory  • by rural /urban or otherwise agreed classification • for each of quality, functionality and capacity • with associated confidence levels

25. In 2014 Comparative data would be available for the first time, for direct comparison to each of the data elements of 2013.

26. Comments The indications are that councils are close to realising the benefits from the sustained period of asset management activity. The achievement of the first round of asset management plans in councils is a significant milestone. This process needs to ensure however that the risks and community consequences of affordable service levels are identified. Risks and community consequences of affordable service levels must form part of the decision making processes of Mayors and Councillors..

27. Comments Mayors and Councillors are the key to the ongoing financial sustainability of Australian local governments. The elected representatives of the community are responsible for the short term and long term management of the local government area and its infrastructure. The decisions made by Councils must ensure that the needs of the present generation are met without compromising the ability of future generations to meet their own needs.

28. Sustainability - this is serious • Get your numbers right • Talk to your community about living within your means • Advocacy - state of the assets data collection starts next week

29. OPERATIONS – Maintenance & Engineering ASSETS AT RISK(at current level of investment) TODAY +10 YEARS CONDITION ~$XB Poor FUNCTION CAPACITY ~$2XB Poor