City of Stirling Transport Asset Managment Plan

7.4 Key assumptions made in financial forecasts This section details the key

Significant potential changes to the financial projections in this plan could derive from: • Changes in the level of service and service standards from those identified in the plan • Variations to the condition and size of the network • Delays in capital works projects, creating increased maintenance and operational costs. Accuracy of future financial forecasts will be improved by the City as a result of a change in methodology of our asset structure by migrating from group asset methods of valuation to one based in componentisation of those assets. However, the City considers that these financial forecasts can further be improved in future revisions of this TAMP by the following actions: • Completing the 2018/19 road condition audit • Reviewing prediction modelling lifecycle paths and decisions for transport assets • Enabling more accurate expenditure allocation to activity type within the financial system to assess performance • Improving linkage of expenditures

assumptions made in presenting the information contained in this Transport Asset Management Plan and in preparing forecasts of required operating and capital expenditure and asset values, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts. Key assumptions made in this asset management plan are: • The current levels of service will remain at constant over the life of this plan • The treatment and maintenance costs are based on the City’s current schedule of rates • All projected financial figures are based on 2017/18 rates and are not adjusted by the inflation rate for the particular year of works • Transport assets will remain in the City’s ownership throughout the planning period • No new or transferred properties are included • Maintenance and isolated failure replacement are generally ‘like for like’.

with individual assets will help maintain track of works and response times and provide information on performance of individual assets.

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