Assets and Infrastructure Function Review

The challenge

The Asset Management Strategy and Plan form major components of the Resourcing Strategy and IP&R Framework for NSW Councils. For one metropolitan Council in NSW, these plans highlighted specific challenges around the financial sustainability of operations, including declining profitability and increasing deficit.

Council sought the IPPG Centre of Local Government’s (IPPG:CLG) help to conduct an independent, evidence-based review and make recommendations on opportunities to improve the productivity, flexibility and cost efficiency of its assets and infrastructure function while providing quality services to the community.

What we did

The review used a combination of qualitative and quantitative research methods and a range of evidence sources, including Council documents and data, public datasets and workshops with the Director and Managers, to assess Council’s Assets and Infrastructure function in three key areas:

• Effectiveness: focused on strategic planning and alignment to CSP and IP&R; long-term asset management and expenditure planning; investment prioritisation; asset management performance; and performance measurement, indicators and reporting
• Economy: focused on the costs and resourcing of A&I activities, including: income and revenue streams; operating expenses; net operating cost and financial sustainability; allocation of resources; and budget constraints and flexibility
• Productivity: focused on the relationship between services and the resources used to produce them, including: organisational structure and functions; operational planning; delivery models; capability and performance; and technology.

Outcome

IPPG:CLG delivered a detailed report to Council that made 34 recommendations across areas including: strategic planning; investment planning and prioritisation; integrated performance measurement and reporting; income, expenditure and resourcing; organisational structure and functions; operational planning and delivery; capability and performance; and technology.