Resourcing Strategy 2018-2028

Resourcing Strategy 2018-2028

Adopted June 2018

Abbreviation Full term or explanation

CAGR Compound annual growth rate

CPI Consumer price index

DWMC Domestic waste management charge

EP&A Act Environmental Planning and Assessment Act

FAG Financial assistance grant

HVAC Heating, ventilation and air conditioning

ICT Information and communications technology

IPART Independent Pricing and Regulatory Tribunal

IPR Integrated planning and reporting

IWC Inner West Council

KPI Key performance indicator

LGA Local government area

LTFP Long term financial plan

NAMS National Asset Management System

RMS Roads and Maritime Services

SGC Superannuation guarantee charge

SRV Special rate variation

WSUD Water sensitive urban design

Abbreviations

These abbreviations are used in this document:

Overview

In 2016 Inner West Council was created by amalgamating the three former councils of Ashfield, Leichhardt and Marrickville. The first Inner West Council was elected in September 2017. This is the first Resourcing Strategy developed by a Inner West Council.

The amalgamation ensured that Inner West Council meets all the criteria for a “Fit for the Future” Council, including the criterion of scale.

• Sustainability• Infrastructure and service management• Efficiency• Scale

Fit for the Future assessment criteria

02 Overview

03 - What the Resourcing Strategy contains

03 - Why the Resourcing Strategy is important

04 Inner West context for change

07 Community and the Resourcing Strategy

08 - Community Survey

09 Resourcing Plans

10 The Long Term Financial Plan

12 Workforce Management Strategy

14 Information and Communications Technology Strategy

15 Asset Management Plans

16 The Asset Management Strategy

17 - Condition of Asset Groups

18 DefiningAssetManagementPlans

19 Asset Management Plan summary

20 - Lifecycle activities for each asset class

Contents

Inner West Council Resourcing Strategy 2018-28 1

The NSW Integrated Planning and Reporting Framework sets out the process which Councils must follow to plan monitor and deliver services for their communities

This Resourcing Strategy is part of the first complete set of Integrated Planning and Reporting documents prepared by Inner West Council. It will be fully reviewed and updated following each Council election as part of the process of perpetual monitoring and review built into the framework. The next Council elections will be held in September 2020 bringing Inner West and other amalgamated councils into line with the normal NSW Local Government election timeline. This Resourcing

Strategy will therefore be reviewed in a shorter timeframe of three years.

The level of change associated with a new Council in its first term means that this Inner West Resourcing Strategy will be very different from the next one. The Resourcing Strategy prepared in 2020 will have access to more data and new systems will be in place.

Overview

What the Resourcing Strategy contains

The Resourcing Strategy outlines Council’s resourcing commitment over the next 10 years to implementing the objectives and strategies of the Inner West Community Strategic Plan: Our Inner West 2036.

The Community Strategic Plan identifies the priorities and aspirations of the community. This Resourcing Strategy allocates Council’s available resources to realise these aspirations.

The Resourcing Strategy includes this introduction and four integrated components:

1. The Long Term Financial Plan 2018-2028: includes10 year projected budgets that inform the extent towhich infrastructure projects, workforce resources andoperational expenditure can be provided.

2. The Asset Management Strategy 2018-2028:includes the overarching Asset Management Policy,sets out the broad framework for the next ten years.It is supported by four Asset Management Plans:• Property• Transport• Stormwater and drainage• Parks and sports fields

3. The Workforce Management Strategy 2018-2022:determines workforce needs over a four year periodto ensure that Council’s workforce has the capacity todeliver on the commitments in the Delivery Program.

4. The ICT Strategy 2018-2022: determines ICT needsover the next four years to ensure that Council has the ICTcapacity to deliver on the commitments in the DeliveryProgram in the most effective and efficient manner.

The Resourcing Strategy supports and sits alongside the Community Strategic Plan: Our Inner West 2036, the Delivery Program 2018-22 and the Operational Plan and Budget. It has been prepared in the context of the available resources. It seeks to support the most effective, efficient use of these resources to deliver the services the community needs and values and realise the vision of the Community Strategic Plan.

The Resourcing Strategy is vital to ensure that Council and community understand the major requirements in delivering all of Council’s services and maintaining its assets. Initiatives within the Delivery Program will be reviewed annually to ensure they remain relevant and have a long term focus. The Resourcing Strategy is also updated to ensure any changes to initiatives are reflected in the resourcing commitments. This also provides an opportunity to incorporate community feedback and reflect changes.

In this Resourcing Strategy Inner West Council gives, as it must, priority to harmonising the services offered to its community to ensure that services are equitable and fairly provided across the Inner West.

Why the Resourcing Strategy is important

Community Strategic Plan: Our Inner West 2036

Long term outcomes

Delivery Program 2018-2022

Four year initiatives

Resourcing Strategy 2018-2028

• Long Term Financial Plan2018-2028 – 10 years

• Asset ManagementStrategy 2018-2028– 10 years

• Asset Management Plans2018-2038

• Workforce ManagementStrategy 2018-2022– 4 years

• ICT Strategy2018-2022 – 4 years

Annual Operational Plan and Budget

One year actions

Inner West Council Resourcing Strategy 2018-28 Inner West Council Resourcing Strategy 2018-282 3

The population is growing

Inner West is home to over 190,000 residents. By 2036, our population is forecast to grow to 228,000 people (an increase of 38,000 or 20% growth from 2017). The greatest growth will be in the age category 70–84, but all other age categories are anticipated to experience growth, including under 24s with an expected growth of 23%.

As the population increases, the demand for new dwellings will put pressure on what is already a high density local government area. In the 10 years from 2006 to 2016, Inner West grew by over 21,000 residents and 5,000 dwellings, 3,000 of which were in the past five years. Residential development forecasts from the Department of Planning and Environment assume an increase of over 8,500 dwellings in Inner West to come to a total of 98,198 dwellings in 2036.

Inner West is a high cost housing area

A disproportionate number of Inner West residents are under housing stress. This impacts on the social and economic fabric of the community, and threatens its diversity. Rising housing costs and the development of smaller dwellings mean that many people can no longer live in Inner West. Significantly, the percentage of couples with children, 25.3% of the population, is way below the greater Sydney average of 35.3% and is forecast to decline further in coming years. The desire for space and larger homes may be a factor in families leaving the area.

The need for affordable housing puts pressure on the area’s social and community housing, making housing particularly difficult for younger and older people, single parent families, people with a disability, Aboriginal and Torres Strait Islander people, people from culturally and linguistically diverse communities, and workers on lower incomes.

Inner West context for change

Ecological sustainability is under pressure

Bushland, green natural spaces and threatened species must be protected and integrated into the urban landscape to create places which are water sensitive, green, cool and rich with biodiversity. Consumption of resources in a gentrifying and wealthy Inner West community is a significant challenge. Increased amounts of non-recyclable materials are being sent to landfill. In 2015/16, 64% of material from households was sent to landfill, twice as much as what was recycled. Over 15,000 tonnes of organic material was sent to landfill generating methane (CH4) – a potent greenhouse gas, four times more powerful than CO2.

Heatwaves are Australia’s deadliest natural hazard. By 2030, Metropolitan Sydney will have an average of four more days above 35°C per year and 11 days more per year by 2070. The people in our community most vulnerable to extreme heat are those under five and over 65 years of age, needing assistance due to disability and living in a low income household.

Other challenges are energy demand and renewable supply, water use and wastewater generation and increased stormwater runoff from hard, impervious surfaces that carry pollution into the Parramatta and Cooks rivers.

The community’s diversity is shifting

Continued gentrification has substantially influenced the demographics and character of Inner West. Traditionally industrial and working class, and subject to several waves of immigration, Inner West is still ethnically diverse but shifting. While the number of residents born overseas remains steady, where they are coming from is changing. In 1991, 51% of residents were from non-English speaking backgrounds, compared to 35% for Greater Sydney. By 2016, the number had significantly decreased by over half to 24%, compared to a decrease of only 6% for Greater Sydney to 29%. The community values the maintenance of cultural diversity as a key characteristic of the area.

Diversity relates not only to culture but also to other characteristics. Inner West remains an enclave for same sex couples, with more than 17% of same sex female couples and more than 12% of same sex male couples in Greater Sydney residing in Inner West. In terms of age, while over 45% of the community are between 25 and 49 years old, the Inner West population is projected to get older. In 2016, 17% of the population was over 60 years of age. It is expected that by 2036, there will be 50% more people of retirement age.

The community is becoming more affluent. More than 35% of households earned a high income (over $2,500 per week) compared to Greater Sydney’s 28%. However, 10% of households live on under $500 per week, representing older people and households with low incomes.

When compared to Greater Sydney, Inner West has a higher proportion of people living alone, 30% compared to 23%. There is a similar share of couple-only households – 25% compared with 26% – but the numbers are expected to grow, likely from empty nesters or couples with dual incomes and no children, who tend to have a higher disposable income to support cafés, retail and bars in the area.

Types of jobs and businesses are changing

Inner West’s economy has grown, increasing 26% from 2001 to 2016 with a Gross Regional Product (GRP) of $10.13 billion. While areas of light industry remain, Inner West businesses are no longer predominantly industrial. In 2016, nearly 77% of all jobs located in Inner West were in service industries such as professional, health, retail, education, transport and administrative services. Inner West’s resident workforce reflects these services. In 2011, 63% were employed in white collar industries compared to Greater Sydney’s 50%. Still, it is a challenge for the economy to retain industrial and employment lands for local businesses to continue and thrive.

The Inner West Community Strategic Plan Our Inner West 2036 provides an overview of the major issuesimpactinguponthelocalcommunity.Thefollowingisasummaryofthenon-financialassumptionsassociatedwitheachofthemajorcommunityissues.ThiscontexthasinfluencedthedevelopmentofthisResourcing Strategy.

Artist impression of Marrickville Library


Shaping the places where people live work, socialise and play is becoming more challenging

With population growth, the challenge of housing affordability and pressures to rezone land for residential use, the community is concerned about the impact of poorly planned development on both the environment and overall wellbeing of the community.

With a wide variety of building types, Inner West has a low proportion of separate houses (24% as compared to 55% in Greater Sydney) and these are disappearing at a fast rate (down from 34% in 2011), increasing the development of semi-detached houses, townhouses, flats and units. There is also a large number of heritage-listed properties and conservation areas, which are highly valued by the community.

With more people and increased density, it is important to retain existing green, open spaces such as sports fields and improve how they are used in conjunction with the built environment. This is not only to meet the community’s needs for recreation but also to ensure a well designed public domain for socialising, active transport and economic activity.

Large, complex state government infrastructure projects such as WestConnex and Sydney Metro are already changing the landscape. With the New Parramatta Road Urban Renewal Strategy and the Bays Precinct Urban

The creative and performing arts industry is 8.8% of Inner West’s workforce compared to 6% of Greater Sydney. It contributes to the strong local economy with more people employed in the arts and recreation sector in Inner West, 2.3%, than the share employed in Greater Sydney at 1.6%. The industry also plays a significant role in the increase of visitors to the area, up 34% from 2012. Support for artists and the creative industry is important to the community; a recent community survey showed they are considered key contributors to the unique quality and vibrancy of the area.

Rising costs and the decreasing availability of commercial space of a suitable size limit opportunities for creative communities to find or maintain workspaces, from small studios to large scale warehouses. This may force them to seek accommodation elsewhere.

Transformation Program waiting in the wings, Inner West will be directly affected.

These projects highlight the need for sustainable, planned development and urban renewal, designed to make life better for all of the community.

Public transport

Compared to many parts of Sydney, Inner West is well serviced by public transport to get in and out of the area, with three rail lines, 11 train stations, the light rail and major bus routes. But it’s still not so easy to get around: the routes that link neighbourhoods and destinations throughout Inner West are limited. Accessibility of public transport also needs to be improved. In spite of recent improvements in train station accessibility, there are still local stations unable to be used by a proportion of the community.

Fewer people drive to work (38%) compared to Greater Sydney (56.6%) but traffic congestion is an issue for people living and working adjacent to main roads such as Liverpool Road, Parramatta Road, Victoria Road and the Princes Highway, as well as the larger feeder roads.

Community expectations for civic leadership

Civic leadership is not limited to Council and refers to the community as leaders. It means building community capacity and enabling local democracy, as well as ensuring good governance.

Results from the Micromex Community Satisfaction Survey 2016 stated that the community’s ability to influence Council’s decision making was of high importance. In addition to providing opportunities for community participation, the expectation of Inner West Council is to take responsibility to apply good governance by demonstrating professional and transparent decision making, good communication and engagement, strong financial management, and transparent and efficient service delivery.

Residents also expect Council to build partnerships with other agencies and community groups, and advocate on their behalf with State and Federal governments on issues that directly affect them.

The purpose of the Resourcing Strategy from the perspective of a community member is to provide a transparent view of the opportunity costs of the decisions Council makes. By reviewing what’s included in these plans a member of the community will have greater clarity on how and why Council priorities the work it does.

Community and the Resourcing Strategy

Resourcing Scenarios

Scenario 1 Addresses all infrastructure asset costs including:

• Asset renewal• Operating costs• Maintenance

Scenario 2 Addresses all infrastructure asset costs including:

• Asset renewal• Operating costs• Maintenance• Capital upgrades

• Capital upgrades• New capital projects

• New capital projects• infrastructure asset

backlog maintenance costs

This continued focus is the key to realising the benefits of integration and increased scale. This has two key components:

1. Systems and Processes. Significantly improved information systems and processes will underpin more efficient delivery that is more closely tied to the needs of the community.

2. Service reviews. Systematic reviews of services provided across the LGA will support the delivery of integrated and seamless services across the LGA that move away from historic service levels to ones that better meet the needs of the inner west community.

The introduction of new systems requires investment often in hardware and software and always in staff training. They demand a focus on data input and checking to ensure that the best possible basis is established for decision making and improvement.

An integrated information system will link financial accounting and asset functions. The system will bring together the information previously held by three councils, enabling the planning and management of operations, maintenance and capital investment across all asset groups.

This system has already delivered a significant improvement in the reporting of capital works. Monthly reports on the progress of capita works projects are now available on-line providing a much more transparent reporting tool than was previously possible.

A program of systematic service reviews is now underway. The number and complexity of services delivered by Inner West Council means that completing the first cycle of service review is a long term project requiring review of the current service and analysis and discussion of the potential options. Each service review will have budget implications which will have to be balanced against council’s overall principle of living within its means.

Inner West Council will not always be able to afford to do everything the community requires in one go. The Resourcing Strategy allows Council to map out it’s response to community needs over ten years.

The focus of this Resourcing Strategy

The focus of Inner West Council and this Resourcing Strategy now, and continuing for some time, is integration and harmonisation. It considers two scenarios influenced by the investment in asset renewal.

Inner West context for change continued


Council will undertake a regular representative community survey. This survey is designed to identify how the silent majority views living in the Inner West, Council and council services.

In asking standard questions over a number of years the survey builds up a robust picture of how the overall community views services. It is an important input into this Resourcing Strategy and asset planning.

The community survey shows how the community perceives a range of Council’s services as indicated by the gap between their ranking of the importance of the service and their satisfaction with the service. A small or a negative gap indicates that the service is provided at or close to the level the community prefers.

Community Survey

Service area Importance mean 2017

Satisfaction mean 2017

Performance gap 2017

Gap category

Swimming pools and aquatic centres 3.51 3.82 -0.31 Out-performing

Availability of sports ovals, grounds and facilities

3.54 3.82 -0.28 Out-performing

Graffiti removal 3.35 3.38 -0.03 Out-performing

Community centres and facilities 3.61 3.59 0.02 Minimal gap

Maintenance of local parks, playgrounds and sports fields

4.29 3.94 0.35 Small gap

Cycleways 3.35 3.00 0.35 Small gap

Storm water management and flood mitigation

3.95 3.48 0.47 Small gap

Maintenance and cleaning of town centres

4.19 3.67 0.52 Small medium gap

Tree management 4.14 3.12 1.02 Medium gap

Management of parking 4.02 2.74 1.28 Medium high gap

Maintaining local roads (excluding major routes)

4.48 3.17 1.31 Medium high gap

Maintaining footpaths 4.44 3.08 1.36 Medium high gap

The 2017 Inner West community survey indicated that community attitudes to services and facilities fall into three broad groups:

• Services that are out-performing community expectations for that service or facility. This indicates that overall Council is providing that service or facility at the right level.

• Services that are close to meeting expectation for their provision and maintenance.

• Services that have a medium to high gap between importance and satisfaction. Provision and maintenance of these services or facilities may require some change in approach or investment level to reduce the expectation gap.

The detail for each plan is mapped out in the individual Resource Plans available on the Inner West Council website. The following summaries provide an overview of the key themes relevant to each plan and identify the linkages and consistencies between them.

Resourcing Plans


This is the first Inner West Council Long Term Financial Plan (LTFP). It incorporates the Fit For The Future financial Key Performance Indicators (KPI’s) and the performance ratios included in the Annual Report. The overall objective of this LTFP is to ensure that Council is Fit for the Future whilst achieving Council’s Community Strategic Plan. The integrated planning approach requires that Council provide an understanding of its longer term financial position.

The Long Term Financial Plan (LTFP) reflects the underlying principles that:

• Council will continue to deliver the services that have always been delivered to Inner West residents

• The budget does not include delivering all services to the same level across the entire LGA

• Services will be harmonised and integrated as service reviews are undertaken and options for response considered

• Council will live within its means• Council budgets for the total cost of providing a

service

The LTFP recognises that the harmonisation of services is a complex and long term project. Some of the key components are:

• Rate structure harmonisation. The rate structure cannot be changed before July 2020

• Workforce harmonisation will not be completed until May 2021 when the commitment to maintain staff protections concludes.

Long term planning gives Council the opportunity to identify possible challenges. There are elements of the future that can be unpredictable, this is why we have identified two scenarios that support analysis of future challenges. Each scenario maintains current service levels and establishes a balanced budget. The key difference is that Scenario 2 identifies the funding level required to reduce the infrastructure backlog to 0.

The Long Term Financial Plan

CounciloperatesfromapositionoffinancialstabilityandhasusedtheIntegratedPlanningandReporting(IPR)FrameworktodrivelongtermfinancialsustainabilityandensureCouncilisfitforthefutureasastand-alone entity.

Scenario 1 - Business as Usual: • Continuation of existing services at current

service levels• Continuation of existing levels of investment in

infrastructure renewal• Continuation of existing income sources

This scenario also incorporates the following ‘major projects’:• Redevelopment of Ashfield Aquatic Centre• Establishment of a new Community Hub

Open Space and Library at the Marrickville Hospital site

• Refurbishment of the Petersham Town Hall• Refurbishment of the Haberfield Library• Refurbishment of the Leichhardt Town Hall• Upgrade work at the Dawn Fraser Pool• Waterfront Drive Upgrade

Scenario 2 - Addresses the infrastructure asset renewal backlog.

The change in the key performance indicators forecast over the ten years to 2028 gives an indication of the implications of current funding levels. At current known funding levels the infrastructure backlog will not be able to be reduced to within the benchmark of <2% by 2028.

Scenario 2 includes the additional $135 million required to address the infrastructure renewal backlog bringing the infrastructure backlog ratio to well under the benchmark by 2028.

Key performance indicators - Scenario 1 benchmark 2017/18 estimate 2027/28 forecast

Operating performance ratio >0 (1.66)% 1.06%

Own source operating revenue >60% 90.56% 89.14%

Unrestricted current ratio >1.5x 3.26 1.50

Debt service ratio >2x 4.11 9.08

Rates and annual charges outstanding ratio <5% 3.20% 2.36%

Cash expense cover ratio >3 months 8.99 4.60

Infrastructure renewal ratio >100% 101.44% 107.74%

Infrastructure backlog ratio <2% 9.36% 5.88%

Asset maintenance ratio >1 0.89 0.79

Key performance indicators - Scenario 2 benchmark 2017/18 estimate 2027/28 forecast

Operating performance ratio >0 (1.66)% 4.31%

Own source operating revenue >60% 90.56% 89.50%

Unrestricted current ratio >1.5x 3.26 1.63

Debt service ratio >2x 4.11 12.30

Rates and annual charges outstanding ratio <5% 3.20% 2.36%

Cash expense cover ratio >3 months 8.99 3.08

Infrastructure renewal ratio >100% 101.44% 112.3%

Infrastructure backlog ratio <2% 9.36% 0.00%

Asset maintenance ratio >1 0.89 0.79

Artist impression of Ashfield Aquatic Centre


Workforceplanningistheprocessofidentifyingcurrentandfuturestaffingneedsonthebasisofcurrent internal and external information. It focuses on retaining existing staff as well as attracting new employees to ensure the right number of people, with the right skills in the right jobs at the right time, now and in the future.

Workforce category Number at October 2017

Equivalent full-time staff 1014

Full-time staff members 900

Part-time staff members 211

Casual staff pool members 419

Workforce Management Strategy

The Inner West Council Workforce Strategy will be delivered through actions under six priorities

Containment of employee costs within the constraints offiveyearemploymentprotections

• Utilise vacancy management protocols to reduce total staff numbers

• Build current staff capacity for succession planning• Remuneration strategy aligned with other conditions

and benefits to attract and retain

Building a positive organisation culture and staff engagement

• Building a suite of holistic people policies and procedures that add value to the Inner West Council Employee Value Proposition and brand in the labour market to attract and retain staff

• Maintain and expand on Staff Health and Wellbeing Policy and programs to ensure staff have every opportunity to be fit, healthy and resilient

• Increased focus on flexible working arrangements and family friendly policies to attract and retain staff and improve staff satisfaction and engagement. Examples include: flexible working times, working from home, career break schemes, alternate core hours, job sharing

Building staff capability

• Mandatory corporate capability programs to embed a consistent language, methodology and learning across the organisation

• Leadership development for all staff for consistent language and messaging to build self-leadership, resilience to change and a culture of high performance and continuous improvement

• Learning and development opportunities that grow our own skills to minimise the impact of the five year staff protections on staff numbers e.g. increase staff skills, encourage continuous improvement and business continuity

Harmonisation

• Harmonisation of work practices, resources, and staffing to enable productivity savings and improve service delivery to the community e.g program of open and transparent service reviews

Diversity

• Increased focus on data collection to ensure appropriate representation of diversity groups in our workforce, particularly in decision making positions

• Entry level programs to provide young people with work experience, traineeships and apprenticeships, including targeted opportunities for minority and disadvantaged groups such as Aboriginal and Torres Strait Islanders and those who identify with a disability. This will provide our young people with the opportunity to view and value local government work and can offer a reservoir of ready and skilled candidates

• Continued commitment to organisation wide training in diversity and inclusiveness

• Continued partnerships with relevant minority group providers and gender equity programs

Strategies for retirement/ transition planning and knowledge management

• Identify the critical skills and knowledge at all levels within our organisation and develop our employees to ensure retention, transfer of these skills and knowledge as well as coverage of these skills and knowledge during absence or in case of retirement

Strategic priorities and actions

Transition Planning

Harmonisation

EmployeeCosts

StaffCapability

OrganisationCulture

Diversity

Workforce Management

Strategic Priorities

Inner West Council must focus on the integration of our workforce to deliver:

• Harmonised, innovative and efficient services across the Inner West

• A continuous improvement approach to service delivery and achieving productivity gains

• A high performing and values based culture • A financially sustainable Council

Staffing levels differ across the four divisions of Council. Higher number of part-time and casual staff support the higher level of services provided by Inner West Council in the Community and Engagement Division including:

• Children and Family Services such as Vacation Care• Recreation and Aquatic Services • Community Services & Culture


The ICT Strategy will be delivered through specific initiatives under three strategic themes:

• Digital – online paperless services, enabling anefficient, collaborative and sustainable council

• Smart – innovative ways of working and engagingwith council and anticipating community needs

• Connected – Unified council systems thatseamlessly join community, partners and councilservice units together

Information and Communications Technology Strategy

InitiativesConsolidated SystemsRationalise council systems creating a unified IWC system portfolio

Network ConnectivityEnable a connected Council

Analytics / ReportingImproved analytics and reporting within and across council information

Integrated SystemsEnable the integration of Council functions and services

MobilityAllow staff and community to interact with systems anywhere, anytime

SustainabilityOngoing operation of Council ICT in a sustainable and efficient manner

InnovationEnabling new methods and ideas inline within industry trends

Council PortalOne place to interact online with council

Online AccessExpanding the information available to community online and encourage online collaboration

Digtial CouncilCreate an organisation which is able to interact and transact digitally

E-ServicesEnabling Council services to be performed electronically

The ICT Strategy’s initial focus, as with all other components of the Resourcing Strategy, is on integration and harmonisation. The short term targets for the ICT are to reduce the number of data centres, networks, providers and operating environments. This will greatly streamline ICT delivery for Inner West Council.

The purpose of the Inner West Council Information and Communications Technology (ICT) Strategy is todefineasetofobjectivesthatprovidesdirectionforICTplanningandinvestmentinalignmenttotheCommunity Strategic Plan.

Asset ManagementPlans

Asset Management

Strategy

Inner West Council’s community assets affect how we move about and travel, how we relax and play, and where we meet. Currently Council’s assets are valued at approximately $1.78 billion. The Asset Management Plans (AMPs) combined, form a critical component to the Resourcing Strategy and detail the required resources and activities necessary to manage these assets.

The AMPs are four technical documents that concern the Council manage of:

• Property• Transport• Stormwater and drainage• Parks and sports fields

In addition to the AMPs, Inner West Council prepared and Asset Management Strategy and Policy.

The following pages provide an overview of those documents.

What are Asset Management Plans?

Key ICT ProjectsConnected• A single integrated ICT system• Consolidated council data network and enhanced

Wi-fi availability• Business Intelligence dashboards developed for key

service areas

Smart• Modernise ICT platform and consolidate datacentres• Improve electronic document management system

Digital • New council web-site• Proactive release of council information on-line• Increase digitisation of Council’s information assets• Implement e-services for payments, customer

requests and development applications

Property Asset Management

Plan

Stormwater and drainage

Asset Management Plan

Parks and sportsfields


Transport Asset Management

Plan

InnovationE-Services

AutomationCouncilPortal

MobilityOnlineAccess

Consoli-dated

NetworkConnec-

tivityAnalytics / Reporting

IntegratedSystems

Sustain-ability

DigitalCouncil

ICT Strategy

Community & Environment

Supports Enables

Com

m

unity Strategic PlanDig

ita

l Smart

Connected


The Asset Management Strategy

The number and value of Inner West Council assets demands that attention be focussed on understanding and maintaining this huge resource. The asset management process for Inner West Council is focussed on:

• Maintenance On-going and consistent action tomaintain assets and ensure they provide the bestpossible service to the community at the least cost.Efficient asset management demands consistentmanagement. Maintaining assets at the optimumlevel with planned maintenance will deliver morecost effective outcomes than replacement of poorlymanaged assets.

• Whole of Lifecycle As assets age, maintenancecosts can increase. A whole of life cycle approachto the management of assets balances maintenancecosts against replacement costs and the abilityof the asset to meet agreed service levels. Highquality infrastructure data and processes are thecornerstone of a whole of lifecycle approach.

• Data The development of the most efficientmaintenance schedule which requires, as the firststep, consistent information on the assets and itscomponents. Information that is consistent acrossthe newly amalgamated Council assets is essential.It is not a small task as each of the former Councilshad a different approach to classifying their assets.

• Systems A consistent understanding of assetsand their maintenance needs across Inner WestCouncil needs to be supported by quality systemsand processes that allow efficient investment inmaintenance and upgrades. Many assets have usefullives that can be extended for many years with timelymaintenance and upgrades. This is almost always amuch more cost effective option than replacement. Itis usually a much more sustainable option.

• Review Service levels vary across the Inner WestLGA as they reflect the service levels inherited fromthe three former councils. New, and more consistent,service levels will need to be agreed with the InnerWest community. While these service levels arebeing developed the service levels inherited from theformer Councils are being honoured.

The Infrastructure Asset

The infrastructure asset managed by inner West Council is large and currently valued at $1.78 billion. Transport assets make up more than half of the total asset value.

Percentage of Asset Replacement Cost

The infrastructure is of varied ages from as new to old. Some asset types, such as roads and stormwater, can have an extended useful life with adequate maintenance. Other asset types such as buildings may require upgrade or replacement to provide the level of service demanded by users now.

The condition profile varies between the four main asset groups. The on-going collection of consistent asset data may alter the understanding of the condition profiles. The required funding amounts and timing could change significantly.

Storm-water10%

Parks8%

Property20.5%

Transport61.5%

Current data indicates that the assets approaching the end of their useful lives (the sum of assets in poor and very poor condition) have a total value of $135 million in June 2017.

Current funding will reduce, but not eliminate, the infrastructure backlog and over the next ten years additional assets will move towards the end of their life cycle. Additional funding is, therefore, required to continue to maintain and renew assets to provide a satisfactory level of service.

An increase in the number and/or type of infrastructure assets and services provided by Council would also require additional funding. Every additional asset has long term budget implications in maintenance, operations and renewal which must be factored into revised budgets. The introduction of new assets without an increased funding stream has the potential to delay infrastructure renewal which given the size of the infrastructure assets could undermine Council’s ability to maintain the asset base in a satisfactory condition.

The impacts of funding shortfalls include:

• Lower levels of service• Lesser reliability• Poor asset condition• Higher level of risk• Increased costs for critical assets

Whole of infrastructure

life cycle

Plan

Provideor Dispose

OperateUpgrade

MaintainRenew

Keeping assets in satisfactory conditon

Condition of Asset Groups

0%10%20%30%40%50%60%70%80%90%

100%

Properties Transport StormwaterDrainage

Parks &Sporting Fields

Very Poor

Poor

Fair

Good

Very Good

Average

Property Stormwater & drainage

Transport Parks & sports fields


Asset management plans define the services, how the services are provided, what funds are required and actions for agreed levels of service in the most economical manner. The benefits of asset management plans include:

• Improved stewardship and accountability• Improved communication and relationships between

service user and provider• Improved risk management• Improved financial accountability• Providing services in a sustainable manner

Asset management plans have been developed for each of these asset classes which, together, cover all of council’s assets. These plans use the NAMS.plus template which is the industry standard for asset management plans developed by the Institute of Public Works Engineers Australia.

Asset Class Description Services Provided

Property Public buildings, Libraries, Child care facilities, Public amenities, Aquatic centres, Administrative centres, Works depots, other structures

The buildings provided by Council are used to support the administration, operational and social infrastructure for the community

Transport Roads, Footpaths, Bridges, Kerb and gutter, Cycleways, Carparks, Traffic facilities, Street furniture, Street lights

The Transport assets provided by Inner West Council are used to support transportation and are important to the community and economic activities of the region.


Drainage pits, Drainage pipes, Culverts, Stormwater quality improvement devices

Stormwater drainage assets control local flooding and provide protection for property and infrastructure

Parks and sports fields

Parks, Playground equipment, Sports facilities, Seawalls, Wharves, Marine structures, other land improvements

The parks, reserves and open space assets provided by Council provides a mix of active and passive environments for the enjoyment of residents and visitors

Inner West Council’s assets are managed in four broad categories:

• Property• Transport• Stormwater and drainage• Parks and sports fields

Assets used for providing services

Defining Asset Management Plans


Asset Class Property Transport Stormwater Parks and sportsfields

Replacement cost of assets

$369,900,000 $1,097,600,000 $173,853,000 $142,609,000

Level of service supported by current budget

Present funding insufficient to continue to provide existing services at current levels in the medium term

Present funding sufficient to continue to provide existing services at current levels in the medium term

Present funding sufficient to continue to provide existing services at current levels in the medium term

Present funding somewhat insufficient to continue to provide existing services at current levels in the medium to long term

Projected 10 year cost to provide services

$300,816,000 $697,596,000 $57,964,000 $489,051,000

Estimated available 10 year funding

$298,532,000 $700,823,000 $71,670,000 $425,276,000

What can be done with current budget

Maintain existing service levels. Upgrade and renewals in the Delivery Program

Network condition stable with minor improvements

Reduce the transport asset infrastructure backlog for all assets in poor or very poor condition

Funding supports reduction in the stormwater infrastructure backlog for assets in poor or very poor condition

Maintain existing service levels. Upgrade and renewals in the Delivery Program

Asset Management Plan summaryAsset Management Plan summary


Each asset class has different long term funding needs

Each class of asset has different issues affecting the budget required to keep them delivering agreed services to the community.

Property – the cost of renewal and upgrading

Inner West Council has a substantial property portfolio with many heritage buildings including the three former Town Halls. Some of these buildings are difficult and expensive to repair and repurpose.

Transport – the cost of routine maintenance, keeping them as they are

The size of the transport asset means that any change in maintenance standards can have significant budget impacts. The transport asset class represents almost half of the annual lifecycle costs of all Inner West Council assets. A very small proportion of the transport asset needing replacement or renewal can also have

Lifecycle activities

Asset Class Operational Maintenance Renewal Upgrade/new

Property Air conditioning, auto doors, backflow devices, emergency lighting, fie services, hygiene services, landscaping, security, pest control

Preventative, reactive and cyclical maintenance and repairs

Replacement of large building and facility components that require significant capital expenditure such as roof replacement

Upgrade of existing buildings and facilities to meet community expectations and creation of new assets

Transport Verge mowing, sweeping

Road (footpath and cycleway, carpark) patching/ joint sealing/ pothole repair, kerb and gutter repairs, bridge painting and repairs, line marking, signs

Road resheeting. Concrete road slab replacement, footpath reconstruction

Streetscape upgrades, new traffic management facilities, bicycle paths, kerb ramps, Water fountains, Bush shelters


Cleaning, education Repairs of pits and pipes

Reline and reconstruction of pits and pipes

New pits and pipes/ WSUD devices, bio retention systems

Parks and sports fields

Mowing, weeding, rubbish removal

Fire and safety compliance, playground equipment and other minor repairs

Replacement of multiple asset components: trees, turf, furniture and equipment

Upgrading the level of service of parks playground and the creation of new facilities

a significant impact on the budget required due to the overall value of the asset group.

Stormwater and drainage – long life assets with high replacement costs

Stormwater assets often have a long asset life whose quality can be maintained at a satisfactory level with minmal maintenance. However, a significant proportion of the stormwater asset is very old and replacement is very expensive.

Parksandsportsfields–thecostofmaintenance

Parks require constant attention. Regular mowing, tree maintenance, garbage removal and equipment repair are just a few of the actions needed regularly to ensure that parks continue to deliver their multiple benefits to community. A change in service levels to meet a change in community expectation has significant on-going budget implications as the action/s required to support service change must be repeated and incorporated into the management cycle.

Lifecycle activities for each asset class


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Customer Service Centres Petersham: 2-14 Fisher Street Leichhardt: 7-15 Wetherill Street Ashfield: 260 Liverpool RoadPhone (02) 9392 5000 www.innerwest.nsw.gov.au © 2018 Inner West Council

Translation ServiceIf you have questions on this document and need an interpreter, please call TIS National on 131 450 and ask them to call Inner West Council on 9392 5000

Υπηρεσία ΔιερμηνείαςΕάν έχετε ερωτήσεις αναφορικά με το παρόν έγγραφο και χρειάζεστε διερμηνέα, παρακαλούμε καλέστε την TIS National στο 131 450 και ζητήστε τους να καλέσουν το Inner West Council στο 9392 5000

Servizio traduzioniSe avete domande su questo documento e necessitate di un interprete chiamate TIS National al numero 131 450 e chiedetegli di chiamarvi Inner West Council al numero 9392 5000

翻译服务如果您对本文件有任何疑问，需要传译员帮助，请拨打TIS National的电话131 450，然后要求接通Inner West Council的电话9392 5000

Dịch vụ Thông Phiên dịchNếu quý vị có thắc mắc gì về tài liệu này và cần có thông dịch viên xin gọi cho TIS National qua số 131 450 và nhờ họ gọi cho Inner West Council qua số 9392 5000

خدمة الترجمةإذا كانت لديك أسئلة حول هذا المستند وتحتاج إلى مترجم فوري، فاتصل بخدمة TIS National على الهاتف

رقم 450 131 واطلب منهم الاتصال بـ Inner West Council على الرقم 5000 9392

Resourcing Strategy 2018-2028

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Transcript of Resourcing Strategy 2018-2028