In 2023 Lake Macquarie City Council reviewed its asset management system. The review identified that the existing processes to identify and prioritise capital works programs for each class of assets varied in assessed criteria. It was difficult for Council management to make informed and transparent capital investment decisions across multiple asset classes.
This paper describes the development of a tool that enabled the Council to prioritise issues capital investment using a merit-based evaluation of standard criteria in a transparent and accountable process. The tool provides a record of evidence-based decision making in a transparent and accountable process, and concise advice to management, finance, insurance, and the capital works team.
The paper presents the approach used to develop the process and compares this to models from other jurisdictions. The adoption of this tool ensured that projects proposed in the Long Term Management Plan are assessed in a transparent and objective manner.
A tool like this evaluation matrix has reduced issues such as inconsistent decision-making, lack of transparency, inefficient resource allocation, and fragmented information by providing a standardised, transparent, and accountable process for prioritising projects and managing assets. This ensures that resources are used effectively, risks are managed, and assets meet agreed service levels.
The tool was key to display the asset backlog and provide Councillors with information specific to the projects, prioritisation assessment, and location and background of the capital projects. The tool gave Councillors the confidence that the project prioritisation was undertaken in a logical and systematic way. Councillors subsequently adopted a new Operational Plan and Delivery Program, and was able to introduce a new revenue source of $1 million per year by implementing a Stormwater Management Service Charge.