The funding backlog is a national issue as Councils struggle with limited finances to meet works costs and manage risks. In 2002, South Australia’s City of Charles Sturt recognised a significant shortfall in the state of its road network and realised the importance of making long term financial decisions to meet service levels and community expectation.
Council has raised a ten year, $15 million loan to reseal sections of its road network over a four year period. This will reduce the risk of having to spend an estimated $96 million in coming years to reconstruct those same roads. These costs would probably have flowed into the community through higher rates, reduced services or levels of service.
Council’s Principal Engineer, Stan Robb, said through the implementation of this innovative funding program, Charles Sturt has differed from most government jurisdictions by publicly accepting this issue.
“Council has used the need to maintain assets for the good of the community as a major factor guiding its budget formulation,” he said. “The Wealth of Opportunities report, released by the South Australian Local Government Association in 2001, highlighted roads as representing a large portion of Council expenditure across the State. It was therefore imperative that Councils investigate this issue further.
“Council commissioned a report to look strategically at its own road network with a need to ensure that money was being spent wisely and for the benefit of the local community.” The initiative has allowed Council to explore a number of alternative road surface treatments without detrimental affects on the overall intent of the program. Council has also been able to consider a number of other issues relating to stormwater management, transport planning, and other asset renewal programs.
Stan Robb said this would not have been possible if individual road projects had been considered within Council’s normal annual works program.
“This surety of funding has also allowed additional external funding grants to be sought where appropriate, thus extending the scope of works originally planned or reducing the burden on Council,” he said.
The project received a commendation in the Asset Management category at the 2005 National Awards for Local Government.
For further information contact Stan Robb on (08) 8408 1284.
