Council
6 March, 2025
Investment needed in council assets
MOYNE Shire Council has received its 2024 State of Assets Report (STAR) at last week’s February Ordinary Meeting of Council to provide a detailed overview of council’s physical assets.
The STAR report provides council with a long-term financial oversight of its assets and the predicted expenditure required to meet regulatory responsibilities for its $665 million of assets.
The report before council highlighted a need for long-term investments to maintain the shire’s existing assets.
Moyne Shire Council is well positioned among south west councils, with Moyne investing 134.5 per cent in the renewal or upgrading of its assets as a percentage of depreciation, meaningfully above 100 per cent.
But the report also notes Moyne Shire has a significant $244 million asset renewal need when compared to a budgeted renewal funding of $114 million.
The $130 million asset renewal gap is cited in the report as systemic of underfunding across the majority of infrastructure assets, with areas of improvement needed for long-term infrastructure planning.
Councillor Lisa Ryan said the report painted a “stark reality of where our assets are at”.
“We need to place a priority on the need of our existing assets and not our new assets,” she said.
“That needs to be front of mind in our budget processes over the next little bit of time.”
Among Moyne’s assets, bridges and major culverts present the largest renewal gap of $46 million in the negative, with an annual shortfall of $4.5 million to overcome with only 17 per cent renewal demand being met.
Drainage renewal is only funded at 20.5 per cent, with a funding shortfall of $24.57 million – or $2.45 million per annum.
Roads hold an $18.57 million renewal deficit, an average of $1.6 million per annum – representing 81.51 per cent of renewal demand being met.
Buildings and structures have a renewal deficit of $34.33 million, a $3.12 million annual shortfall with 19 per cent of renewal demand being met.
Open spaces and recreation are also in the deficit with a total renewal shortfall of $8.08 million (34 per cent being met), which requires a further $730,000 per annum investment.
Footpath renewal, however, is in the green and currently holds a renewal surplus of $460,000 – 13 per cent greater than required.
Councillor Jim Doukas moved the motion to note the report, as councillors prepare to look ahead to priorities for the forthcoming 2025/2026 budget.
“It’s one of those reports we really have to do, a working progress to keep an eye on things,” he said.
“It really is an important report because that’s where the money is going and, at this point in time, we’re very, very stringent with our money at the Moyne Shire.
“We’re not lush with funds, we’ve got some big projects which need financing one way or another, and to have this report to make sure not only councillors but the staff keep an eye on it, gives a regular update on how we’re going and our progresses with our assets.
“We’ve got a handle on the roads, we know what needs to be done there, but there are other projects – especially in buildings – that get overlooked.”
Councillor Myra Murrihy seconded, and said the report was important in guiding future expenditure as efficiently as possible.
“It’s no secret we’re in a pretty harsh economic environment and as councillors we have a real obligation to do what we can and be forward about how we can be reducing the renewal gap of our assets,” she said.
“I’m happy to support this – I think it’s a key report for us to use as we start considering our upcoming budget process.”
The motion was carried unanimously.
The full report can be found online at https://www.moyne.vic.gov.au/State-of-Assets-Report.