City of Stirling Transport Asset Managment Plan

Asset consumption ratio 4 The asset consumption ratio is the average proportion of ‘as new’ condition left in assets. The indicative target is between 50 per cent and 75 per cent. The asset consumption ratio seeks to highlight the aged condition of the City’s stock of physical assets.

7.1.1 Sustainability of service delivery In maintaining an operating capacity, the City will use the following key performance indicators to monitor

and assess its performance: • Asset consumption ratio • Asset sustainability ratio • Asset renewal funding ratio.

Current replacement cost

Depreciated replacement cost

Asset consumption ratio

Asset type

Roads

$1,617,727,535

$1,490,701,824

92.15%

Pathways

$104,533,288

$91,854,191

87.87%

Table 7.1 Asset consumption ratio

Asset sustainability ratio 5 The asset sustainability ratio measures whether assets are being replaced at the rate they are wearing out. The indicative target is between 90 per cent and 110 per cent. The asset sustainability ratio for roads is lower than the indicative target. The City’s road assets are in good condition, however, due to the componentisation of road assets, the renewal expenditure for roads isn’t required to be as high as the annual depreciation expense of the entire road network to maintain it at an acceptable level.

Due to the path replacement program in the 1990s, in which all of the City’s slab paths within road reserves and PAWs were replaced with in-situ concrete, the sustainability ratio for pathways is low, as the majority of paths have not deteriorated to a point where replacement is required. However, as these paths reach the end of their expected life there will be a sharp increase in funding required to maintain the pathway assets.

Renewal expenditure

Annual depreciation expense

Asset sustainability ratio

Asset type

Roads

$7,790,298

$18,268,814

42.64%

Pathways

$577,333

$1,751,579

32.96%

Table 7.2 Asset sustainability ratio

4 Asset consumption ratio = [depreciated replacement cost] / [current replacement cost] 5 Asset sustainability ratio = [capital expenditure on renewal of assets] / [annual depreciation expense]

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