Water Asset Management Plan - Cassowary Coast Region · Water Asset Management Plan Document Control Rev No Date Revision Details Author Reviewer Approver 0.1 29/01/2019 Draft AMP

Cassowary Coast Regional Council

Water Asset Management Plan

Document Control

Rev No Date Revision Details Author Reviewer Approver

0.1 29/01/2019 Draft AMP J Fischer G Smart CEO

1.0 19/6/19 Draft for Adoption J Fischer G Smart Council

This document is a modified version of the Nams Plus template. The information contained in this document is obtained

from Nams Plus 3 web based program using data from Cassowary Coast Regional Council.


Cassowary Coast Regional Council | June 2019 Page 2 of 29

Table of Contents

1 Asset Management Plan Context .................................................................................................... 3

2 Asset Class ....................................................................................................................................... 3

3 Indicators ......................................................................................................................................... 4

3.1 General .................................................................................................................................... 4

3.2 Financial .................................................................................................................................. 5

3.3 Condition ................................................................................................................................. 8

4 Financial Expenditure ...................................................................................................................... 9

4.1 Total Costs ............................................................................................................................... 9

4.2 Renewal Expenditure ............................................................................................................ 11

5 Basis of Plan................................................................................................................................... 12

6 Demand Forecast .......................................................................................................................... 12

6.1 General .................................................................................................................................. 12

7 Future Projection .......................................................................................................................... 12

8 Risk ................................................................................................................................................ 13

9 Next Steps ..................................................................................................................................... 14

9.1 Water Next Steps .................................................................................................................. 14

9.2 Asset Rationalisation Possibilities ......................................................................................... 15

A Asset Information .......................................................................................................................... 16

A.1 Water Organigram ................................................................................................................ 16

A.2 Asset List ............................................................................................................................... 17

A.3 Data used .............................................................................................................................. 17

A.4 Standard Lives ....................................................................................................................... 18

A.5 Age profile ............................................................................................................................. 19

A.6 Asset Condition ..................................................................................................................... 19

B Financial Information .................................................................................................................... 20

B.1 Financial Summary ................................................................................................................ 20

B.2 Financial Statements and Projections ................................................................................... 20

B.3 Funding Strategy ................................................................................................................... 24

B.4 Valuation Forecasts ............................................................................................................... 24

C Demand Factors ............................................................................................................................ 27

C.1 Customer Levels of Service ................................................................................................... 27

C.2 Technical Levels of Service .................................................................................................... 27

C.3 Legislation ............................................................................................................................. 28

C.4 Technology Change ............................................................................................................... 28

C.5 Water Demand Management Plan ....................................................................................... 29



1 Asset Management Plan Context

The Water Asset Management Plan provides the financial and asset information only. It should be

read in conjunction with:

CCRC Asset Management Policy

CCRC Asset Management Strategy

CCRC What is Asset Management

CCRC Asset Management Definitions

CCRC Asset Management Portfolio

CCRC Asset Disposal Policy

Valuation of Water & Sewerage Infrastructure Assets Valuation Report 2015 (Aurecon)

CCRC Drinking Water Quality Management Plan

Water Supply Network Model Verification Report 2013 (Cardno)

CCRC Tully Water Infrastructure Report 2018

Water Supply and Sewerage Services SCADA Strategy 2015

CCRC Water and Sewerage Services Performance Report for 2017-2018

The objective of this Asset Management Plan is to provide a summarised view of the Water Asset

Status.

2 Asset Class

This plan covers the Water asset class. There are currently no sub-classes defined within Water. A

future improvement in managing the Water assets will be creating asset sub-classes.

The value of the assets is listed in the Table 2-1 below:

Table 2-1: Water Asset Values in 000’s

Sub Class Quantity Current Rep Cost

WDV Accumulated Depreciation

Annual Depreciation

Water NA $279,535 $136,166 $143,369 $4,923

Total $279,535 $136,166 $143,369 $4,923

The figures indicate that the average expected lives of assets is approximately 57 years

($279,535/$4,923). This appears to be a reasonable figure.

The average remaining lives is approximately 28 years ($136,166/$4,923).

This Water Asset Class provides the following services to the community:

Treatment and distribution of potable water

Firefighting capabilities



3 Indicators

3.1 General

There are two aspects to indicators on how the council is performing in managing the Water

network. The first is the financial aspects and the second is the condition aspects.

The water asset class is considered to be one of the services most important to the community. It is

a complex asset class consisting of 814km of mains, a variety of intakes and treatment facilities, 14

pump stations and 30 reservoirs.

Due to the critical nature of the service and the variety of asset related complexities this

commentary is provided to frame the information that is contained within section 3.

Cast Iron (CI) Mains

Council is currently working through the renewal backlog of unlined cast iron mains in Innisfail that

were installed in the 1930’s. These mains suffer from extensive internal ferric corrosion. The ferric

nodules substantially reduce the bore of the pipe and impact flow and pressure. Firefighting flows

are particularly impacted.

Whilst technology does exist to “pig” these mains and scour out the nodules. The remnant material

clogs service lines and ferrules. Moreover the main remains pitted and localised weaknesses are

difficult to locate.

It is envisaged that all unlined cast iron mains in Innisfail will be replaced by about 2022. To date the

CI renewal program has concentrated on the mains in or adjoining the commercial areas and over

the next 5 years the program will extend more into the residential areas.

Typically the cast iron pipes have provided an asset life of upwards of 80 years (although at a less

than desirable level of service). The useful life of the unlined cast iron in the 2015 Aurecon valuation

report is 70 years and by 2006 all unlined CI pipe assets had been totally written off.

Many of the original 100mm diameter cast iron mains are in commercial areas or are adjoining

developments or land uses that require high fire-fighting flows. In such instances, the mains are

being replaced with pipes of 150mm diameter or larger pipes to satisfy fire-fighting requirements.

In Tully the original reticulation and trunk system was installed in 1945. These original mains are

unlined cast iron mains and they are displaying comparable ferric corrosion issues as Innisfail. The

cast iron mains are now just exceeding their “book” useful life of 70 years. The renewal program for

cast iron mains was initiated in 2015/16 and is now moving from the commercial areas into

residential areas. Upgrading of mains in the commercial areas from 100mm to 150mm sizing is

being done as part of the renewal program to provide fire-fighting flows.

Asbestos Cement (AC) Mains

After the initial reticulation construction phase using cast iron pipes, for the period from about 1951

to the mid 1970’s, the predominant pipe material used in water main construction was asbestos

cement. A large program of AC pipes were installed in the late 1950’s in Innisfail predominantly in

the suburbs of Goondi and Hudson. Other major significant AC assets included the new water main

to Mourilyan Harbour installed in 1961.

In the late 1950’s and early 60’s, water reticulation (with AC pipes) was introduced into the towns of

Silkwood and El Arish.



In Tully a substantial program of AC mains were constructed in 1960’s.

The adopted useful life for AC mains is 60 years so there is a significant renewal program pending for

AC assets in this 10 year horizon and then in the following ten years. The failure of AC mains

correlates with a couple of key factors, particularly the working pressure of the pipe, the number

and scale of pressure transients and the degree of immersion in soft ground water. Asset failure

history has been captured for the past few years so it is possible to identify a portion of those mains

which are in need of renewal but further work is needed to better define the true asset condition of

Council’s AC mains and to be able to plan a renewal date that optimises the life of the asset.

3.2 Financial

The financial indicators provide a view on how CCRC is performing in the financial management of

the assets.

Financial Sustainability Ratio

This ratio tells Council whether it can afford to own the assets they currently have over the long

term. Values are per annum for a 10 year planning period.

Ratio = Planned Total Budget = $13.754M

Required Total Expenditure $13.674M

Council Value = 99%

Good = 90%

Acceptable = 80% to 90%

The CCRC Financial Sustainability Ratio is 99%. This ratio is good and indicates Council’s planned

expenditure is generally in line with need based on current available data. Council has a sound

strategy to incrementally increase water charges for all schemes which is necessary to improve

financial sustainability of this essential service and compensate for the forecast for declining rates of

return. The water charges differential between Innisfail and southern schemes can be more readily

corrected when all schemes are obtaining comparable water quality and boil water alerts become

irregular.

As outlined in section 9.2 Council should also give consideration options to improve the financial

impact of uneconomical sections of the reticulation network. In many instances Council is paying

substantial depreciation and maintenance costs for water main assets with few connected

properties.



Renewal Sustainability Ratio

This ratio tells council whether it can afford to renewal assets as required over the long term. Values

are per annum of a 10 year planning period. The required expenditure is obtained from technical

analysis and planned expenditure is the budget from the Long Term Financial Plan.

Ratio = Planned Renewal Expenditure* = $60.077M

Required Renewal Expenditure* $67.817M

Council Value = 106%

Good = 90%


*This ratio includes only the renewal costs.

As detailed above Council is currently in a period where renewal requirements are high as many

assets reach the end of the service lives. This AMP is based on a higher upfront investment in

renewals to address known service issues with CI mains as well as providing funding to renew

approximately 45% of AC mains. This upfront investment will reduce by approximately 50% in years

10-20 of this plan. This investment will make a significant improvement in the rate of leaks and

breaks which has been a key issue for Council. As more data on the condition and performance of

water mains is gathered this statistic may change. Council will formalise a risk based renewal

methodology to limit the impact of service failure. Council will do its best to manage network risk

but will need to accept some residual risk associated with aging underground infrastructure.

Asset Consumption Ratio

The Asset Consumption Ratio provides an indication whether renewals is keeping pace with

consumption. The measure of consumption used by IPWEA is the annual depreciation of the asset.

The difference between this indicator and the previous indicator is that the consumption is the

theoretical renewal requirement defined by annual depreciation. It simply measured whether

council renewal spending matches the depreciation.

Ratio = Renewal Ratio = 2.3%

Consumption Ratio 1.8%

Council Value = 128%

Good = 90%


The Consumption Ratio = Annual Depreciation = $4.968M x 100 = 1.8%

Depreciable value $280M

The Renewal Ratio = Annual Renewal Expense = $6.38M x 100 = 2.3%

Depreciable Value $280M

The value is good .



Life Cycle Indicator

The life cycle indicator is a further view of Depreciation compared to Renewal expenditure. The

Operations and Maintenance costs are included in this indicator. Values are per annum of a 10 year

planning period.

Ratio = Life Cycle Expenditure1 = $8.39M

Life Cycle Costs2 $10.19M

Council Value = 82%

Good = 90%


1 Life Cycle Expenditure includes Operations, Maintenance and Renewal expenditure.

2 Life Cycle Cost includes Operations, Maintenance and Depreciation expenditure.

Table 3-1 shows the Life Cycle Expenditure and Cost make up in $000’s.

Table 3-1: Life Cycle Expenditure and Cost

The life cycle cost ratio includes operational and maintenance costs and is showing as being less

healthy than the other indicators. This is largely due to asset maintenance values being considered

to be lower than desired and will require further consideration to ensure Council has sufficient funds

available to adequately maintain its water assets. This is particularly important as current

mechanical budgets do not allow for the full program for preventative maintenance of active assets.

This indicator will also be impacted by future increases in energy costs and increasing costs

associated with the commissioning of new infrastructure included in this AMP. Ongoing review of

the water service charging scheme will be required to ensure sufficient operational and maintenance

funds are available to maintain service to the community.

Life Cycle Gap = Life Cycle Cost – Life Cycle Expenditure

= $10,191- $8.393 = $1,798

Life Cycle Expenditure Life Cycle Cost

Operations $2,561 $2,794

Maintenance $2,461 $2,428

Renewal $3,371

Depreciation $4,968

Total $8,393 $10,191



Rate of Annual Upgrade/New

This is a measure of the rate of growth of the infrastructure. It is the averaged increase on an annual

basis for 10 years.

The Rate of Annual Asset Upgrade = 1.7%. This growth is relatively minor and is necessary to meet

regulatory requirements and reduce the frequency of boiled water alerts. Council needs to consider

the communities ability to meet the costs associated with compliance with increasing regulations.

There are ongoing opportunities for Council to obtain external grant funding for upgrades related to

water quality improvements. As these projects provide significant regional benefits to a large

number of people they are likely to receive favourable consideration by State and Federal

Governments. These grants will be important to Council to reduce the burden on its community to

fund upgrades required by State Government requirements.

3.3 Condition

The condition index is a snapshot of the current overall condition of the network. It is displayed as

the value per condition. In the water class the condition assessment of water mains is a difficult,

expensive and often uncertain process. Council generally uses a combination of age based and break

history to determine condition. This area will be a key focus of the improvement plan and future

asset revaluation.

The forecast renewal works included in the AMP will see the renewal of condition 5, 4 and

approximately 50% of condition 3 assets. A number of the condition 3 assets are AC mains, the

condition of 3 was assigned to these assets based on their installation date and useful life however

due to the abovementioned service issues these assets will require renewal when the break history

makes repair uneconomical.

Figure 3.1 is an age profile of Water assets.

Figure 3-1: Asset Age Profile



Further review of the installation date for water assets is required to refine installation date data.

This work has progressed through the AMP development process and will be formalised in the future

asset revaluation.

Figure 3-2 is the condition profile of the Water assets.

Figure 3-2: Asset Condition by Value

4 Financial Expenditure

4.1 Total Costs

The Figure 4-1 below shows the total costs of owning and managing the Water assets.



Figure 4-1: Total Water Asset Costs

The above graph is created from the data in Table 4-1 below.

Table 4-1: Water Assets Annual Costs

The cumulative 10 year costs are represented in the Table 4-2 and Figure 4-2 below

Table 4-2: Cumulative 10 Year Expenditure

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total

$2,696 $2,714 $2,745 $2,770 $2,794 $2,824 $2,850 $2,850 $2,850 $2,850 $27,943

$2,343 $2,358 $2,386 $2,407 $2,428 $2,454 $2,477 $2,477 $2,477 $2,477 $24,284

$3,371 $3,498 $3,255 $5,733 $8,013 $9,213 $6,514 $7,493 $5,683 $7,304 $60,077

$4,804 $1,716 $3,365 $2,598 $2,500 $3,100 $6,638 $0 $0 $0 $24,721

$13,214 $10,286 $11,751 $13,508 $15,735 $17,591 $18,479 $12,820 $11,010 $12,631 $137,025

$13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $136,740

$460 $3,388 $1,923 $166 -$2,061 -$3,917 -$4,805 $854 $2,664 $1,043 -$285Shortfall

Total Budget

Operations

Maintenance

Renewals

Upgrade

Total



Figure 4-2: Cost Proportion over 10 Years

The cumulative funding gap over 10 years is $285 thousand.

4.2 Renewal Expenditure

The following Figure 4-3 shows the renewal requirement compared to planned renewals

Figure 4-3: Renewals Projected vs Planned Costs

There is a cumulative renewals gap over the next 10 years of $537k.

Providing services in a sustainable manner will require matching of projected asset renewal and

replacement expenditure to meet agreed service levels with the corresponding capital works

program accommodated in the long term financial plan.

$27,943

$24,284

$60,077

Upgrade $24,721

Total $137,025

Total Budget $136,740

Shortfall -$285

Maintenance

Renewals

10 Year Expenditure

Operations



A gap between projected asset renewal/replacement expenditure and amounts accommodated in

the LTFP indicates that further work is required on reviewing service levels in the Asset Management

Plan.

We will manage the ‘gap’ by developing this asset management plan to provide guidance on future

service levels and resources required to provide these services, review future services, service levels

and costs with the community.

5 Basis of Plan

Certain factors combine to provide input to the standard of asset that council provides. The way

Council manages its water assets is influenced by Customer Service Levels, Technical Service Levels,

Legislative Requirements and Other Factors. Details of these factors can be found in Appendix C or in

Council’s ‘What is Asset Management” document.

6 Demand Forecast

6.1 General

The demand for services is driven by growth in population, growth in business, growth in tourism,

growth in through traffic, reaction to technology changes and predicted climate change. Growth can

be positive or negative. The following have been considered:

Relevant Standards

Population and Tourism

New Technology

New Assets

The demand for additional water can be managed by a number of initiatives including:

Changing consumer behaviour to be more water wise

Using SMART and Flow meters to better understand and manage consumption

Improved storage and supply arrangements to reduce scouring of mains due to dirty water

Reducing breaks and leaks by accelerating main renewal program

These initiatives represent good asset management and environmental practice and implementation

of these initiatives is required to avoid even greater expenditure on upgrades to the water network.

7 Future Projection

The following Table 7-1 shows the future financial requirements to manage the Water Assets.

Table 7-1: Total Water Costs

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total

$2,696 $2,714 $2,745 $2,770 $2,794 $2,824 $2,850 $2,850 $2,850 $2,850 $27,943

$2,343 $2,358 $2,386 $2,407 $2,428 $2,454 $2,477 $2,477 $2,477 $2,477 $24,284

$3,371 $3,498 $3,255 $5,733 $8,013 $9,213 $6,514 $7,493 $5,683 $7,304 $60,077

$4,804 $1,716 $3,365 $2,598 $2,500 $3,100 $6,638 $0 $0 $0 $24,721

$13,214 $10,286 $11,751 $13,508 $15,735 $17,591 $18,479 $12,820 $11,010 $12,631 $137,025

$13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $13,674 $136,740

$460 $3,388 $1,923 $166 -$2,061 -$3,917 -$4,805 $854 $2,664 $1,043 -$285Shortfall

Total Budget

Operations

Maintenance

Renewals

Upgrade

Total



The future projections for new work do not include externally funded projects. These projects would

include private development resulting in contributed assets, state funded projects and federal

funded projects. Occasionally privately funded projects will arise.

While there is no initial outlay to council in creating the assets, there is an ongoing outlay in

maintenance, operations and depreciation on an annual basis. External funding for capital projects

needs to be analysed for ongoing affordability.

8 Risk

An assessment of risks1 associated with service delivery from infrastructure assets has identified

critical risks that will result in loss or reduction in service from infrastructure assets or a ‘financial

shock’ to the organisation. The risk assessment process identifies credible risks, the likelihood of the

risk event occurring, the consequences should the event occur, develops a risk rating, evaluates the

risk and develops a risk treatment plan for non-acceptable risks. A number of risks have been

documented in Council’s Drinking Water Quality Management Plan which is available on Council’s

Website. From a strategic asset management perspective key risks are listed below.

Key Risks

Unexpected failure due to unknown condition of assets. Limited predictive failure

methodologies are currently employed.

Unknown service life of poly mains subjected to high chlorine residuals, high ground

temperature and high pressures.

Unable to make optimised decisions on asset renewal and maintenance activities due to

limited data, systems and resources.

AC mains are highly variable in their service life. Factors such as ground water, service

pressures (and history of pressures), material source (Italian made) and construction

practices all impact the service life. Current 10 year plan allows for renewal of 55% of AC

mains. Breaks will be ongoing and Council will need to remain adaptable in its renewal

planning.

Financial impact of full implementation of Health Based Targets not currently included in

financial modelling. Current allowance is based on an estimate of requirements and upgrade

deadlines.

Limited Program maintenance of mechanical assets will have operational impacts as

components age and asset base increases. Operational knowledge needs to be documented

to ensure processes are robust and can withstand staff turnover.

Limited internal technical capacity to manage increasing asset base and capital program.

Climate change and potential for longer periods of low rainfall.

Long term water security is not currently considered in financial analysis. Current assumption

is that reduced leaks and breaks (through accelerated main renewal program), less

operational losses due to reservoirs reducing need to scour dirty water and improved

community consumption behaviour will provide improved resilience to prolonged periods of

dry weather.

Natural Disasters



9 Next Steps

The next steps are summarised in Council’s Asset Management Definitions Documents where they

are common across all asset classes. The next steps specific to water are listed below.

9.1 Water Next Steps

Table 9-1: Asset Plan Maturity

Task

No Task Responsibility

Resources

Required Timeline

1 Review Water Charging Scheme

MF MW Staff,

Consultant

2020

2 Improve confidence levels of quality of asset

register to moderate (load additional detail

from revaluation)

MF Staff 2020

3 Install suitably sized Solar system at the

Innisfail Water Treatment Plant

MW Capital Funding 2020

4 Undertake asset revaluation with a focus on:

review of installation dates, review of useful

lives of active assets

MF MAE MW Staff,

Consultant

2020

5 Update of LTFP following adoption of AMP and

Revaluation

MF Staff 2020

6 Improve financial costing approach for

operations and maintenance through improved

and consistent use of the technology 1 works

system.

MF Staff 2020

7 Complete works to understand financial

performance of individual watermains. Develop

and consider alternative strategies to improve

financial viability

MW Staff 2020

8 Formalise a risk based prioritisation

methodology for the renewal of water mains

MW Staff 2022

9 Implement Technology System for the

recording of maintenance data and develop

reporting to allowing for service optimisation

MW MIS Staff,

Consultant, new

software

2021

10 Develop water supply security strategy MW Staff 2023



9.2 Asset Rationalisation Possibilities

There are a number of possible asset rationalisation possibilities within the water class. There is

varying degrees of complexity with the work involved to rationalise these assets in it’s unlikely that

any opportunities will be released in the short term. The list below will be updated through regular

review of this asset management plan:

Complete works to understand financial performance of individual watermains. Develop and

consider alternative strategies to improve financial viability.

Upon commissioning of new reservoir at Wheatley’s Hill the current 0.7ML will become

obsolete and will be used only until such time that major renewal is required.

The Innisfail Water Tower has no future function as a reservoir. The facility will be

maintained as an iconic asset but won’t require renewal as a functional reservoir.

The elevation of Church St reservoir is too low to be functional. When renewal is required

the asset will not be replaced as its obsolete given other storage and pumping

arrangements.

The major Bingil Bay 450mm trunk main is oversized and will be replaced with a 300mm

main. A variable-speed booster pump station may be required.



A Asset Information

A.1 Water Organigram

The management of water assets is the responsibility of the Director of Infrastructure Services. The

organigram for the management of Water Assets is shown below:

Director Infrastructure Services

Manager Water

Figure A-1: Water Asset Organigram Appendix Figure 1: Water Asset Organigram

Figure A-2: Water Organigram



A.2 Asset List

Asset Category Quantity

Water Mains 814km

Pump Stations 14

Reservoirs 30

Raw Water Intakes 5

Bores 2

A.3 Data used



A.4 Standard Lives

Table A-1: Standard Lives

Asset (Sub)Category Useful life

Water - Trunk Mains 80 years

Water - Reticulation Mains 50 - 80 years

Water Mains - Metering 25 years

Water Mains - Services 80 years

Water Meters 20 years

Water Hydrants 50 years

Water Intakes - various components Various 25 - 80 years

Water Reservoirs - various components

Various 25 - 80 years

Water Pump Stations - various components


Water Chlorinators - various components


Water Treatment Facility- various components


Water SCADA- various components Various 15 - 60 years



A.5 Age profile

The following Figure A-3 shows the year in which assets were constructed.

Figure A-3: Age Profile

A.6 Asset Condition

The asset condition Figure A-4: Condition Profile below shows that value against condition. The

graph indicates that the network is a good condition.



Figure A-4: Condition Profile

B Financial Information

B.1 Financial Summary

This section contains the financial requirements resulting from all the information presented in the

previous sections of this asset management plan. The financial projections will be improved as

further information becomes available on desired levels of service and current and projected future

asset performance.

B.2 Financial Statements and Projections

The financial projections are shown in Figure B-1 for projected operating (operations and

maintenance) and capital expenditure (renewal and upgrade/expansion/new assets). Note that all

costs are shown in real values. Future minor adjustment between the AMP and LTFP will see better

alignment.



Figure B-1: Projected Operating and Capital Expenditure



Table B-1: Project Renewal Expenditure

Table B-2 shows the shortfall between projected renewal and replacement expenditures and

expenditure accommodated in long term financial plan. Budget expenditures accommodated in the

long term financial plan or extrapolated from current budgets are shown in Appendix D.



Table B-2: Renewals Gap

Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

Providing services in a sustainable manner will require matching of projected asset renewal and replacement expenditure to meet agreed service levels with the corresponding capital works program accommodated in the long term financial plan.

A gap between projected asset renewal/replacement expenditure and amounts accommodated in the LTFP indicates that further work is required on reviewing service levels in the Asset Management Plan (including possibly revising the LTFP) before finalising the asset management plan to manage required service levels and funding to eliminate any funding gap.

We will manage the ‘gap’ by developing this asset management plan to provide guidance on future service levels and resources required to provide these services, and review future services, service levels and costs with the community.

Year End Projected

Renewals

LTFP

Renewal

Budget

Renewal

Financing

Shortfall

Cumulative

Shortfall

30-Jun ($'000) ($'000)

(- gap, +

surplus)

($'000)

(- gap, +

surplus)

($'000)

2020 3371 3371 0 0

2021 3498 3499 1 1

2022 3255 3255 0 1

2023 5733 5324 -409 -408

2024 8013 8106 93 -315

2025 9213 9319 106 -209

2026 6514 8035 1521 1312

2027 7493 6977 -516 796

2028 5683 9164 3481 4277

2029 7304 6767 -537 3740

2030 6008 6382 374 4114

2031 6008 6382 374 4489

2032 6008 6382 374 4863

2033 6008 6382 374 5237

2034 6008 6382 374 5611

2035 6008 6382 374 5985

2036 6008 6382 374 6359

2037 6008 6382 374 6733

2038 6008 6382 374 7107

2039 6008 6382 374 7481



Table B-3 shows the projected expenditures for the 10 year long term financial plan. Expenditure projections are in 2016 real values.

Table B-3: Expenditure Projects

B.3 Funding Strategy

After reviewing service levels, as appropriate to ensure ongoing financial sustainability projected expenditures previously identified should be accommodated in the Council’s 10 year long term financial plan. A review of the water charging methodology will also be required.

B.4 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from

construction and acquisition by Council and from assets constructed by land developers and others

donated to Council. Figure B-2: Current Replacement Cost Projection shows the projected

replacement cost asset values over the planning period in real values.

Year Operations Maintenance Projected Capital Disposals

Capital Renewal Upgrade/New

2020 $2,687 $2,335 $5,819 $950 $0

2021 $2,696 $2,343 $5,849 $1,813 $0

2022 $2,714 $2,358 $5,700 $3,293 $0

2023 $2,745 $2,386 $5,733 $2,598 $0

2024 $2,770 $2,407 $8,013 $2,500 $0

2025 $2,794 $2,428 $9,213 $3,100 $0

2026 $2,824 $2,454 $6,514 $2,700 $0

2027 $2,850 $2,477 $7,493 $0 $0

2028 $2,850 $2,477 $5,683 $0 $0

2029 $2,850 $2,477 $7,304 $0 $0

2030 $2,850 $2,477 $6,732 $1,695 $0

2031 $2,866 $2,491 $6,732 $1,695 $0

2032 $2,883 $2,505 $6,732 $1,695 $0

2033 $2,899 $2,519 $6,732 $1,695 $0

2034 $2,915 $2,533 $6,732 $1,695 $0

2035 $2,932 $2,547 $6,732 $1,695 $0

2036 $2,948 $2,562 $6,732 $1,695 $0

2037 $2,964 $2,576 $6,732 $1,695 $0

2038 $2,980 $2,590 $6,732 $1,695 $0

2039 $2,997 $2,604 $6,732 $1,695 $0

All dollar values are in ($'000)'s



Figure B-2: Current Replacement Cost Projection

Depreciation expense values are forecast in line with asset values as shown in Figure B-3: Annual

Depreciation Projection.



Figure B-3: Annual Depreciation Projection

The depreciated replacement cost will vary over the forecast period depending on the rates of

addition of new assets, disposal of old assets and consumption and renewal of existing assets.

Forecast of the assets’ depreciated replacement cost is shown in Figure B-4. The depreciated

replacement cost of contributed and new assets is shown in the darker colour and in the lighter

colour for existing assets.



Figure B-4: Projected Depreciated Replacement Cost

C Demand Factors

C.1 Customer Levels of Service

The organisation’s current and expected community service levels are detailed in the CCRC Water

and Sewerage Services Performance Report for 2017-2018

C.2 Technical Levels of Service

Technical Levels of service and response time are detailed in council’s Drinking Water Quality Management Plan and in the in the CCRC Water and Sewerage Services Performance Report for 2017-2018.



C.3 Legislation

The following is the relevant legislation relation to the provision and ownership of Water Assets.

Table C-1: Legislation

Legislation Requirement

Local Government Act 2009

The purpose of this Act is to provide for the way in which a local government is constituted and the nature and extent of its responsibilities and powers and a system of local government in Queensland that is accountable, effective, efficient and sustainable.

Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by asset management plans for sustainable service delivery.

Water Act 2000 Provides framework for the sustainable management of water resources and the effective operation of water authorities.

Environmental Protection Act 1994

Details requirements for the protection Queensland’s environment while allowing for development that improves the total quality of life, both now and in the future, in a way that maintains the ecological processes on which life depends (ecologically sustainable development).

Water Supply (Safety and Reliability) Act 2008

Defines requirements for safe and reliable water supply by providing a regulatory framework for water services in Queensland.

The organisation will exercise its duty of care to ensure public safety in accordance with the

infrastructure risk management plan linked to this Asset Management Plan.

C.4 Technology Change

Technology has been evolving for some time and is being incorporated into the water network when

opportunities allow. Some areas where technology has been adopted and implemented are:

- SCADA

- Flow monitoring and water consumption reduction programs

- SMART metering

- Water treatment technology

Council continues to monitor technology developments that will improve service delivery and

reduce costs.



C.5 Water Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets,

upgrading of existing assets and providing new assets to meet demand and demand management.

Demand management practices include non-asset solutions, insuring against risks and managing

failures.

- Health based treatment Targets

- Population Modelling and revision of water model.

- Water Security risk appetite