City of Stirling Buildings Asset Managment Plan 2018 - 2028

5.1.4 Asset valuations The City’s buildings are valued using fair value asset accounting methodology based on AASB 116. A comprehensive revaluation on the City’s buildings is completed every three years. The figures below are as at 30 June 2018 using the fair value methodology.

Gross replacement cost

$411,529,451

Depreciable amount

$411,529,451

Depreciated replacement cost 8

$267,580,915

Annual Depreciation Expense

$11,167,574

Useful lives were reviewed in 2017 by detailed condition analysis.

Various ratios of asset consumption and expenditure have been prepared to help guide and gauge asset management performance and trends over time. These ratios are based on 2018 buildings valuation and 2019 budgeted capital expenditure values.

Major changes from previous valuations are due to better

knowledge of the performance of the buildings portfolio, impact of market forces on the City’s commercial buildings and the cost of construction and renewal.

Rate of annual asset consumption (depreciation/depreciable amount)

2.7 per cent

Rate of annual asset renewal (capital renewal and replacement expenditure/ depreciable amount) Rate of annual asset new (capital new expenditure/depreciable amount)

2.1 per cent

3.3 per cent

by 3.3 per cent in 2019, mainly due to the Scarborough Redevelopment Project. These figures will be monitored and reassessed throughout the life of this BAMP.

These ratios indicate that the City’s building assets are being consumed (2.7 per cent) at a greater rate than currently planned for renewal (2.1 per cent). It also indicates that the City will be increasing its asset stock

8 Also reported as written down value, carrying or net book value.

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