Asset Management Policy

Adopted by Council: 21 October 2013

Policy Goals

To preserve and manage Council and community assets to ensure optimum utilisation while minimising the whole-of-life cost to the community.
Stewardship of infrastructure/assets is a core council function. Sound asset management is necessary to enable Council to meet its responsibilities to:

  • Provide services to current and future generations;
  • Provide and maintain community infrastructure within the City;
  • Encourage and support the economic and social development of the City.

Policy Implementation:

Governance and Management

1.1 Ensure the development and implementation of an Asset Management Strategy that outlines the current status of asset management and a plan to continuously improve asset management;

1.2 Ensure the development and implementation Asset Management Plans with clear links to LTFP;

1.3 Ensure roles and responsibilities for service levels, asset provision, maintenance and planning are clearly defined and understood;

1.4 Continually improve Council’s maintenance and renewal practices;

1.5 Ensure all development and capital investment decisions are subject to whole of life cost analysis based on available Asset Management Plans and the Capital Works Policy.

1.6 Rationalise under-utilised assets that have no long term strategic benefit and dispose of assets consistent with Sale of Council Owned Property Policy and other relevant policies


2.1 Integrate asset management, long term financial and strategic resource planning;

2.2 Ensuring that the asset base is not increased without considering the impact on Council’s ability to fund maintenance, operating costs, resources and renewal of the asset;

2.3 Adequately identify and plan for future maintenance costs of assets and infrastructure to reduce the asset renewal gap in allocated funding;

2.4 Improve integration and alignment with Council’s financial systems and classify operational, maintenance, renewal, upgrade or new asset expenditure;

2.5 Ensure that Asset Accounting Policy aligns with asset management practices and reflect actual practice.

Levels of Service

3.1 Ensure current community and technical levels of service are documented for each of Council’s services that rely upon or generate assets;

3.2 Ensure that all plans and strategies of Council are considered in the delivery of service.

3.3 Ensure that community is consulted when Council considers changes to the service delivery needs of the community;

3.4 Consider alternate levels of service that balance with available resources and long term financial planning.

Data and Systems

4.1 Continue utilising resources and technology to increase efficiency within Latrobe City.

4.2 Develop Business process documentation for Asset Management

4.3 Participate in asset management best practice and benchmarking programs.

Skills and Processes

5.1 Identify training needs, for Councilors and staff that have service planning and asset management responsibilities, so that asset management capacity is built and maintained;

5.2 Consider risk in each Asset Management Plan.

Evaluation and Review

6.1 Evaluate asset management improvements and timelines and report to Council. Asset management will be implemented within the framework of key Council plans and financial management.

To support Asset Management at Latrobe City,

Council will:

  • act as custodians of community assets;
  • ensure appropriate resources for sustainable asset management.

Chief Executive Officer / Executive Team will:

  • provide strategic direction and leadership;
  • review and develop policies related to asset management;
  • ensure appropriate resources for asset management;
  • monitor and review the performance of managers and staff in achieving the outcomes of the Asset Management Strategy.

Managers and Staff will:

  • develop service plans that articulate levels of service, risks and costs associated with the delivery of services;
  • develop and implement Asset Management Plans for individual asset categories; 
  • manage infrastructure assets with an emphasis of sustainability.

Asset Management Working Group (AWMG) will:

  • be chaired by General Manager RCCI and consist of internal staff who have a direct role in asset management;
  • coordinate an integrated approach to asset based service planning and asset management;
  • support asset management decisions and report progress to the executive team;
  • develop increased understanding and involvement of Latrobe City teams that provide services which are supported by physical assets;
  • monitor the results of audits undertaken in line with the National Asset Management Assessment Framework (NAMAF) and guide organisational responses;
  • review the implementation of the Asset Management Policy, Asset Management Strategy, Asset Management procedures and refer relevant documentation to the Latrobe City Audit Committee. 
  • remain operational for the life of the Asset Management Strategy 2014-2018.

This policy will be reviewed annually and will expire in February 2018 in accordance with NAMF and when the Asset Management Strategy is due for review.

This policy has been reviewed after giving proper consideration to all the rights contained within the Charter of Human Rights and Responsibilities Act 2006; and any reasonable limitation to human rights can be demonstrably justified.