Shire of Carnarvon votes in decade-long asset management plan to help manage $329 million portfolio

Shire of Carnarvon councillors have voted in an asset management plan which will help the shire oversee a portfolio of assets with a combined value of more than $329 million. The plan’s aim is to help manage shire assets including roads, paths, drains, buildings, recreation spaces, fleet, and IT over the next 10 years. The shire indicated the depreciation of its assets, which is pinned at $9.2m each year. Transport takes up most of the shire’s assets, valued at $277.4m including vehicular and pedestrian support, with property listed as the second-biggest cost at $31.45m. The plan states: “This level of depreciation presents a significant challenge, given the current revenue and expenditure levels, making it difficult to fund the maintenance and renewal of these assets fully.” Voted in at the council’s June meeting, the plan reveals the $329m value of the shire’s assets have a replacement cost of $568m because of depreciation. The document reveals the assets are in “average condition overall. However 11 per cent of inspected assets are in either poor or very poor condition”. The shire faces a $53 million backlog of renewal work which it says “may not be manageable though normal business activities”. The plan will help the shire manage the sustainable maintenance and replacement of assets in Carnarvon forecast for the next 10 years “This means the shire aims to renew assets at suitable times when funding is available to keep costs down and limit our exposure risk,” the document says.