Melton City Council, VIC
Unlocking hidden capital though best practice Asset Management
Melton City Council (Council) has achieved a major milestone in its transformation to best-practice asset management. Together with Assetic, Council has been able to preserve the current health of its assets and unlock hidden capital within existing resources to meet future demand and drive higher levels of service and community satisfaction.
One of Victoria’s growth councils, Melton City Council manages an infrastructure asset portfolio valued at more than $2.7 billion and acquires assets of $220 million each year through land development and capital works.
Long term renewal modelling is critical to the ongoing management of Council’s asset base. To meet the ongoing renewal demand and levels of service of the community and the organisation, Council has used best practice asset management principles to consider future service level trade-offs through a wide range of considerations such as condition, material, age, function and usage of the asset.
This best practice approach included the identification of potential financial risk which has resulted in proactive decisionmaking and planning. By comparing the traditional scenario of only treating assets in poor condition versus a robust model with community-driven levels of service, the annual benefit derived from these asset classes is significant. This has seen a saving of approximately $2.5 million per year in Councils roads portfolio alone, through optimising interventions in line with strategic asset management best practice.
These optimisation strategies allow Council the ability to continue managing infrastructure for their community in a fiscally responsible manner and deliver ‘more with less’ as the asset base continues to grow. They have been able to unlock hidden capital within the Council’s existing resources to meet future demand and drive higher levels of service and community satisfaction.