agenda item: clause 2. fluoridation of barham water supply · plants to ensure compliance with the...

Agenda Item: CLAUSE 2. Fluoridation of Barham Water Supply

Water Fluoridation: Questions and Answers This more detailed technical resource has been prepared by NSW Health to assist communities and professionals understand the process of fluoridation, the evidence supporting the benefits of fluoridation and the evidence cited to support claims made about harms associated with fluoridation.

Contents Fluoride and water fluoridation – the basics ......................................................................... 3

What is fluoride? ............................................................................................................... 3

What is water fluoridation? ............................................................................................... 3

How much fluoride is added to the water? ........................................................................ 3

How long has NSW had water fluoridation? ...................................................................... 3

How many people in NSW have access to fluoridated water? ........................................... 3

How fluoride is added to the water supply – legalities, technical issues, quality assurance ... 3

What is the legal mechanism for fluoridation of a water supply in NSW? .......................... 3

What chemicals / compounds are used to fluoridate the water supply?............................ 4

What are the sources of fluoride compounds? .................................................................. 4

What standards must be met for water fluoridation? ........................................................ 4

What are the results of fluoride testing of public water supplies? ..................................... 4

Are there trace contaminants in fluoride compounds? ...................................................... 5

Is fluoridated water monitored for the presence of trace contaminants? .......................... 5

What are the results of chemical testing of drinking water? .............................................. 5

Can all public water supplies be fluoridated? .................................................................... 6

Dental caries ......................................................................................................................... 6

What is dental caries or tooth decay? ............................................................................... 6

How does fluoride prevent tooth decay?........................................................................... 6

Why is tooth decay a problem? ......................................................................................... 6

How is dental caries measured? ........................................................................................ 6

How much tooth decay is there in the community? .......................................................... 7

How much tooth decay is there by State? ......................................................................... 7

What have been the trends in dental caries in Australia? .................................................. 8

Are there variations in dental caries in NSW? .................................................................... 8

Benefits of fluoridation ....................................................................................................... 10

Is there any evidence to support fluoridation of water supplies? .................................... 10

Do surveys in Australia support the effectiveness of fluoride in drinking water? ............. 10

1 Water Fluoridation Q & As | NSW Health | November 2015

Do before and after studies in Australia support the use of fluoridation? ........................ 11

Does fluoridated water benefit people from lower socio-economic backgrounds? .......... 11

Does fluoridation benefit adults? .................................................................................... 11

Do randomised controlled trials support the fluoridation of the water supply? ............... 11

Can fluoride be delivered in ways other than through the water supply? ........................ 12

What has happened in countries that have not fluoridated their water supply? .............. 12

Consequences of too much fluoride .................................................................................... 12

Dental fluorosis ............................................................................................................... 12

Skeletal fluorosis ............................................................................................................. 12

Fluoride exposure is Australia ............................................................................................. 13

Do we get too much fluoride? ......................................................................................... 13

Are there guideline values for fluoride intake? ................................................................ 13

What are the main dietary sources of exposure to fluoride? ........................................... 13

What about non-dietary sources of fluoride? .................................................................. 14

What protections are there to prevent against too much fluoride? ................................. 14

Is bottle-feeding safe? ..................................................................................................... 14

Claims about harms of fluoridated water ............................................................................ 15

Are there any risks of bone fracture? .............................................................................. 15

Are there any risks of kidney disease? ............................................................................. 15

Are there risks of cancer associated with fluoridating the water? .................................... 15

Can people be allergic to fluoride? .................................................................................. 16

Does fluoride lower intelligence? .................................................................................... 16

Can fluoride affect the thyroid gland? ............................................................................. 16

Can fluoride affect the pineal gland? ............................................................................... 17

Society making decisions ..................................................................................................... 17

Is water fluoridation ethical? ........................................................................................... 17

Is individual consent required to fluoridate? ................................................................... 17

Is water fluoridation cost-effective? ................................................................................ 18

Are people in NSW in favour of water fluoridation? ........................................................ 18

Can fluoride be added to salt or milk or bottled water? .................................................. 18

Why can’t people who want fluoride just use toothpaste? .............................................. 19

Effects on the environment ................................................................................................. 19

Can fluoridated water be used in organic farming? ......................................................... 19

References .......................................................................................................................... 19


Fluoride and water fluoridation – the basics

What is fluoride? Fluorine is an element, the 9th in the periodic table. Fluorine is highly reactive and naturally found only in a form combined with other elements (a compound). When fluorine gains an electron (when it combines with other elements) it is called fluoride or the fluoride ion and is abbreviated F- (F minus). It is this form of fluoride that is found in fluoridated water. Fluoride compounds are abundant in the earth’s crust and found in rocks and soils, salt and sea water. Fluoride in water exists in the dissociated form, i.e. the fluoride ion. Fluoride in water is colourless, odourless and tasteless.

What is water fluoridation? Water fluoridation is the process of adding fluoride to a water source so that the level of fluoride in the water reaches the recommended level of fluoride for good dental health.

How much fluoride is added to the water? In NSW fluoride is added to the water supply at a level of 1 milligram per litre (mg/L) in line with the National Health and Medical Research Council recommendations. One milligram per litre is 1 part per million. The National Health and Medical Research Council recommend a fluoridation range of 0.6-1.1 mg/L. This range is to allow lower fluoridation levels in warmer parts of Australia where a person’s water consumption may be higher and replicates a similar recommendation in the United States. The Australian Drinking Water Guidelines allows a maximum level up to 1.5 parts per million.

How long has NSW had water fluoridation? Fluoride has been added to water supplies in NSW commencing with Yass in 1956. In NSW alone there are more than 50 years of experience providing effective and safe water fluoridation.

How many people in NSW have access to fluoridated water? Approximately 96% of the NSW population has access to fluoridated water – one of the highest levels of fluoridation in Australia. (NSWHealth 2013) Not all councils or water utilities fluoridate their water supply and not all people in NSW have a reticulated (public) water supply to their home. For example, some people get drinking water from other sources such as water tanks and private bores.

How fluoride is added to the water supply – legalities, technical issues, quality assurance

What is the legal mechanism for fluoridation of a water supply in NSW? The addition of fluoride to public water supplies in NSW is controlled by the NSW Fluoridation of Public Water Supplies Act 1957. Under the Act a water utility cannot start fluoridation of public water supplies without an approval or direction from the Director General of NSW Health. A water utility makes either an application to the Director General to fluoridate the water supply or seeks a direction from the Director General. Once fluoridation has started, a water utility cannot stop fluoridating the water without the Director General revoking the approval or direction.


What chemicals / compounds are used to fluoridate the water supply? The three main fluoride compounds used are sodium fluoride (NaF), hydrofluosilicic acid or hexafluorosilicic acid (H2SiF6) and sodium silicofluoride (Na2SiF6). All of these compounds fully mix (dissociate) in water. An example reaction for hydrofluosilicic acid is given below.

Hydrolysis in water yields six fluoride ions and silicon dioxide. SiF6

2- + 2 H2O → 6 F- + SiO2 + 4 H+

What are the sources of fluoride compounds? The most common fluoride compounds used in NSW are sodium silicofluoride for large water supplies, and sodium fluoride for medium to small water supplies. Six water treatment plants in NSW currently use hydrofluosilicic acid. Hydrofluosilicic acid, sodium silicofluoride and sodium fluoride are commonly sourced from phosphate fertilizer manufacturers. Fluorapatite is an important mineral, composed of calcium, fluoride and phosphate, commonly used as source material for the fertiliser industry. When phosphate is removed from rock, an extra step in the refining process may be taken to collect fluoride.

What standards must be met for water fluoridation? NSW Office of Water approves the design, procurement and installation of all fluoridation plants to ensure compliance with the Code of Practice for Fluoridation of Public Water Supplies (2011). Under the NSW Fluoridation Code of Practice water utilities are required to use a suitable chemical specification for the fluoridating chemical and the American Waterworks Association standard is set as a minimum. In the Code of Practice suggested specifications are included for three of the main fluoride chemicals. All finished water is tested daily to ensure correct fluoride dosing and drinking water is sampled throughout NSW to ensure compliance with Australian Drinking Water Guidelines.

What are the results of fluoride testing of public water supplies? Sampling for fluoride testing is done either downstream and close to the dosing point or at points in the water distribution system as part of the NSW Health Drinking Water Monitoring Program. From January to December 2012 the following results were available: • In regional NSW 94% of the 31,317 water samples analysed daily at the treatment plant

and reported to NSW Health were within the required range of 0.9 - 1.5 mg/L. The results ranged from 0 – 1.79 mg/L. The median result was 1.0 mg/L with a standard deviation of +/-0.11. Only 3 results were above 1.5 mg/L. The Code of Practice and NSW Health provide response protocols to be followed when results are above the guideline

Hydrofluosilicic acid


value. The 467 drinking water samples from fluoridated supplies submitted to the NSW Health Forensic and Analytical Science Service (the state testing laboratory) were within a range from 0.05 to 1.35 mg/L. The median result was 0.98 mg/L with standard deviation of +/- 0.21.

• For Sydney Water Corporation, 99% of the 2800 samples analysed and reported to NSW Health were within the required range of 0.9-1.5 mg/L. No results were above 1.5mg/L. The results ranged from 0.05 to 1.21 mg/L. The median result was 1.02 mg/L with a standard deviation of +/- 0.05.

• For Hunter Water Corporation, 91% of the 2293 samples analysed and reported to NSW Health were within the required range of 0.9-1.5 mg/L. No results were above 1.5mg/L. The results ranged from 0.03 to 1.12 mg/L. The median result was 0.97 mg/L with a standard deviation of +/- 0.19.

Are there trace contaminants in fluoride compounds? Trace contaminants or impurities (such as heavy metals) occur in fluoridation compounds typically at low levels. The NSW Code of Practice for Fluoridation of Public Water Supplies stipulates that any impurities in the fluoridation compound shall not result in non-compliance with the National Health and Medical Research Council’s Australian Drinking Water Guidelines. Fluoride compounds are diluted with drinking water many thousand-fold to achieve 1 mg/L of fluoride1. To ensure that heavy metals are kept to a very low level in drinking water a maximum % by weight in lead equivalent is specified in the Code. The Code also advises that regular full chemical analysis of fluoridating compounds should be obtained by the water supply authority from the manufacturer. This testing should include assessment for levels of heavy metals.

Is fluoridated water monitored for the presence of trace contaminants? Through the NSW Health Drinking Water Monitoring Program, all public water utilities monitor the chemical quality of water to ensure compliance with the Australian Drinking Water Guidelines. The chemical qualities of public water supply systems in NSW, which receive fluoridation, are monitored on a monthly basis. This includes tests, for example lead, arsenic and cadmium.

What are the results of chemical testing of drinking water? In 2012 calendar year there were 1669 chemical analyses of water performed and reported to NSW Health from fluoridated and non-fluoridated supplies in regional NSW. Three illustrative results for heavy metals follow. For arsenic the guideline value is 0.01 mg/L, the average level found was 0.0009 mg/L, results ranged from 0.0005 to 0.0070 mg/L and all results were below the Australian Drinking Water guideline level. The guideline level for mercury is 0.001 mg/L, the average level found was 0.0001 mg/L, results ranged from 0.00005 to 0.0003 mg/L and all results were below the guideline value. For lead the guideline value is 0.01 mg/L, the average level found was 0.0012, the results ranged from 0.0005 to 0.0570 and there were five exceptions above the guideline level. Exceptions above the guideline value for lead occasionally occur and often relate to plumbing materials containing trace amounts of lead and samples taken without flushing.

1 For example, hydrofluosilicic acid at 20% w/w needs to be diluted 160,000-fold to achieve 1mg/L


Can all public water supplies be fluoridated? About three years ago a simple, safe and low cost sodium fluoride saturator system was developed, meaning many smaller water supplies can now be economically fluoridated. To date, the smallest water supply fluoridated in NSW is the Mendooran water supply, serving 400 people. For a number of small water supplies (serving less than 400 people) there may be a lack of suitable staff available locally to operate the fluoridation plant. This is taken into account when determining if a water supply can be fluoridated.

Dental caries

What is dental caries or tooth decay? Dental caries or dental decay is a disease caused by the interplay of many factors including the presence of bacteria, resistance of enamel, refined sugars and carbohydrates in the diet, and behaviour. Bacteria in the mouth or plaque break down food containing sugar resulting in acid production. Repeated episodes, over time, result in the destruction of the tooth enamel.

How does fluoride prevent tooth decay? Fluoride predominantly has a topical action and probably exerts its effect through fluoride ions in plaque and saliva assisting remineralisation of demineralised tooth enamel. Fluoride incorporated into tooth enamel pre-eruption also plays a role (Singh and Spencer 2004). Frequent exposure to low levels of fluoride in the oral cavity is important for prevention of decay (Featherstone 1999).

Why is tooth decay a problem? Dental health is fundamental to one's overall health. A healthy mouth enables a person to eat, speak and socialise without pain or discomfort. Dental decay is the most common health problem of any type in Australia. Recently, dental conditions have been documented to be the highest cause of acute preventable hospital admissions in Australia. Each year in NSW during the five year period 2007-8 to 2011-12 there were on average just over 1500 hospital admissions for children less than 4 years for dental procedures to remove or restore teeth as a result of dental caries. Tooth decay and other dental pathology can result in important disability. In the NSW Adult Health Survey in 2005, 27% of respondents over the age of 75 reported they were missing all their natural teeth.

How is dental caries measured? Dental caries can occur in either the deciduous (baby) teeth or the permanent teeth. Dental caries is best measured through surveys using standardised ways of examining and reporting. The most common measure employed in surveys is the number of decayed, missing or filled teeth per child and summary results are expressed as an average. For deciduous teeth the abbreviation is dmft (lower case) and for permanent teeth the abbreviation is DMFT (upper case). Deciduous teeth begin to be replaced by permanent teeth at age 5 or 6 and are usually all lost by age 12; all permanent teeth except for wisdom teeth generally have erupted by 12 years. Consequently children aged around 5 and 12 are commonly examined in surveys. Surveys will often report the number and proportion of children with no decay (dmft or DMFT = 0). Some surveys will also report the number of


decayed missing and filled teeth in the 10% of children with the worst dental caries (NHMRC 2007).

How much tooth decay is there in the community? In the survey of Australian Child Dental Health Survey in 2007 on average there were 2 decayed missing or filled teeth per child (dmft = 1.95) and over half of children (54%) aged 6 had no dental caries. In the same survey in 2007 12 year-old children had on average around 1 decayed, missing or filled teeth (DMFT = 0.95) and 39% had no decay (Mejia, Amarasena et al. 2007).

How much tooth decay is there by State? In the Australian Child Dental Health Survey 2007 the Northern Territory and Queensland had the highest prevalence of dental caries in 5 to 6 year-olds. NSW was the state with the highest proportion of children with no decay.

Australian Dental Health Survey 2007

In the permanent dentition the highest prevalence of dental caries was found in Queensland.



What have been the trends in dental caries in Australia? In 1977, 6 year-old children had on average 3.13 decayed missing or filled teeth. Between 1977 and the mid 1990s the average number of teeth in 6 year-olds affected by caries halved (it was 1.45 in 1996), but has increased a little since then. In 1977 12 year-old children had on average 4.79 permanent teeth affected by dental caries. This declined more than five-fold by 1998 to reach a minimum of less than an average of 1 tooth affected by caries (DMFT = 0.85) but since then a small upward trend has been apparent (Mejia, Amarasena et al. 2007).


Are there variations in dental caries in NSW? The NSW Child Health Dental Survey documents some important variations by area health service (old boundaries). There was a three-fold variation in the number of decayed missing and filled teeth of 5/6 year-olds from 2.75 in North Coast to 0.91 in South Eastern Sydney.


NSW Child Dental Health Survey 2007

In 11/12 year-olds there was a two-fold variation in the number of decayed missing and filled teeth from 1.07 in North Coast to 0.44 in Hunter New England (COHS 2009).

NSW Child Dental Health Survey 2007

There are also variations in the rate of admission to hospital for dental procedures where the principal diagnosis is dental caries. Variations may be due to Aboriginality, remoteness, low socio-economic status, dental practice and unavailability of fluoridated drinking water.


Source: NSW Inpatient Statistics

Benefits of fluoridation

Is there any evidence to support fluoridation of water supplies? The benefit of fluoridation is the prevention of dental caries (tooth decay). There have been many, many studies examining the effect of fluoride in drinking water on dental caries reflecting the long history of fluoridation. Some of these studies have been of higher quality than others. There has been one substantial official review of the evidence in Australia: the National Health and Medical Research Council’s A Systematic Review of the Efficacy and Safety of Fluoridation (NHMRC 2007). The NHMRC review builds on an earlier very thorough review by the NHS Centre for Reviews and Dissemination at the University of York - A Systematic Review of Public Water Fluoridation completed in 2000 (McDonagh, Whiting et al. 2000). Both these reviews had similar scope, adopted very similar methods of evaluating the evidence, and included only higher quality studies. Both reached the same conclusions. The NHS York Review and the NHMRC Review both found that on average when children in the same community were surveyed before and after fluoridation of the water supply there was on average a 14.3% improvement in the proportion of children with no dental decay (i.e. % dmft or DMFT = 0). The average reduction in number of decayed, missing or filled teeth was 2.61. Cohort studies that follow the same children over time have also found fewer new instances of dental decay in children in a newly fluoridated area compared with an unfluoridated area. (Hardwick, Teasdale et al. 1982) In 14/22 studies of communities where fluoridation was stopped there was an increase in dental caries compared with a control community.

Do surveys in Australia support the effectiveness of fluoride in drinking water? In the NSW Child Dental Health Survey of 2007 (Centre For Oral Health Strategy 2009) approximately 15% of children (total sample size 7,975) were from non-fluoridated areas. In 5 and 6 year-olds the numbers of decayed, missing and filled teeth in fluoridated areas was

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Rates per 100,000 hospital admission for dental removal and restoration for primary diagnosis of dental caries for 0-4 year-olds by NSW Local Health

Districts, 2007/8 - 2011/12


1.4 and in un-fluoridated areas it was 2.62. In 11 and 12 year olds the DMFT score in fluoridated areas was 0.71 and in un-fluoridated areas it was 0.98. When this survey data was analysed controlling for differences in the number of Aboriginal people, concession card holders and children with non-English speaking parents the number of decayed missing and filled teeth was still significantly different between fluoridated and non-fluoridated areas.

Do before and after studies in Australia support the use of fluoridation? The Blue Mountains was fluoridated in 1992 and dental surveys were carried out in schools in 1993 (before fluoridation could have had any important effect) and 2003 after 10 years of fluoridated water supply (Evans, Hsiau et al. 2009). There were 525 children (with lifelong residence) surveyed in 1993 and 731 in 2003. In 5-8 year-olds the proportion of children with any caries declined from 56% to 27% and in children with any decayed missing or filled teeth (i.e. excluding those children with no caries) there was a significant decline from an average of 4.22 dmft to 2.48 dmft. In the permanent teeth of 8-11 year-olds there was a smaller decline from 35% to 12% in the proportion of children with caries and a decline from 2.21 DMFT to 1.73 DMFT. In a comparison community in the Hawkesbury that had been fluoridated since 1968 the level of caries was lower at baseline in 1993 and there was almost no decline in caries over the same period.

Does fluoridated water benefit people from lower socio-economic backgrounds? Large studies of NSW data show a gradient of dental caries by socio-economic status. Children from residential areas with low SEIFA scores (Socio-Economic Index for Areas) have higher numbers of decayed missing and filled teeth than children from high SEIFA score areas (Armfield 2005). Fluoridation appears to be equally effective in lowering tooth decay in low SES and high SES areas (Armfield 2005, Armfield 2008).

Does fluoridation benefit adults? Australian adults have a substantial burden of dental disease: 60% NSW adults surveyed in 2004-6 visited the dentist in the previous 12 months (Sivaneswaran 2009). Australian research suggests that adults born before widespread fluoridation (and so not exposed to fluoride as young children) have fewer decayed, missing or filled teeth if they were exposed to fluoridated water as adults (Slade, Sanders et al. 2013). There is some evidence that adults exposed to high levels of naturally fluoridated water have a lower prevalence of an adult condition - root caries (Stamm, Banting et al. 1990).

Do randomised controlled trials support the fluoridation of the water supply? Randomised controlled trials randomly allocate individuals to an intervention and a control group and compare the effects in these two groups. Randomised trials are commonly used to evaluate the effects of individual treatments. There are many randomised trials of topical fluoride treatments (toothpaste, varnish, sealants) and they unequivocally provide support for the benefits of fluoride. The NHMRC review (reporting the results of a Cochrane review) found that the proportion of caries prevented varied from between 21% and 40% for various topical fluoride treatments compared with placebo (varnish > mouth rinse >toothpaste >gel) (NHMRC 2007). The randomised trails of individual fluoride treatments provide high quality evidence that supports the effectiveness of fluoride as a preventive agent. Many public health interventions that are designed to be delivered to groups of people rather than individuals (fluoridating the water supply, advertising campaigns, putting in cycle paths to increase physical activity) are difficult to evaluate using randomised


controlled trials. Although there are no randomised controlled trials of fluoridation of the water supply, there have been other well-designed studies as detailed and summarised in the NHMRC’s A Systematic Review of the Efficacy and Safety of Fluoridation.

Can fluoride be delivered in ways other than through the water supply? In some parts of the world fluoride is added as a supplement through salt or through milk. For example salt fluoridation is practised in Jamaica, Columbia and the Swiss Canton of Vaud. Fluoride is added to milk in parts of Bulgaria, Chile and Peru. In some cases alternative methods of fluoridation are chosen because of technical issues with the water supply in, for example, remote rural areas. (Anonymous) The NHMRC reviewed the evidence for milk and salt fluoridation and found that the evidence for milk fluoridation was of lower quality than that for water fluoridation but generally supported a reduction in dental caries. No studies of salt fluoridation were of acceptable quality and the NHMRC were unable to make a judgement about the efficacy of this form of supplementary fluoridation (NHMRC 2007).

What has happened in countries that have not fluoridated their water supply? Many developed countries around the world, particularly in Europe, have not fluoridated their water supply, or have fluoridated their water supply and then ceased fluoridation or in some cases used an alternative form of supplementary fluoridation. Some of these largely unfluoridated countries have reported steep declines in dental caries that parallel declines seen in largely fluoridated countries (Marthaler 2004). Dental caries is related to many factors including diet – particularly sugar and carbohydrate exposure, oral hygiene, bacterial mouth flora, access to fluoridated toothpaste, and other sources of fluoride. Fluoridation of the water supply is not the only factor. However, as discussed previously, in studies where it has been introduced a reduction in dental caries is seen.

Consequences of too much fluoride

Dental fluorosis Dental fluorosis is a discolouration of teeth and is a recognised side-effect associated with excess fluoride exposure. Its effects on teeth occur just prior to eruption. Teeth develop from birth to approximately six to eight years of age. In its mildest (and most common) form dental fluorosis manifests as barely noticeable whitish marks on teeth. Dental fluorosis can be more severe, resulting in staining and pitting of the teeth. The NHMRC systematic review looked at the evidence from many studies that measure the prevalence of fluorosis in children’s teeth with different levels of fluoride in the water. They compared supplies with little fluoride and optimally fluoridated water supply (0.8-1.2 mg/L). They estimated that the risk of fluorosis of ‘aesthetic concern’ (>=TF 3) was four-fold higher in optimally fluoridated supplies and that the prevalence of fluorosis of ‘aesthetic concern’ (that could be expected in optimally fluoridated water supplies) was around 4-5% (NHMRC 2007). Fluorosis at mild levels (TF 1 or 2) may be unnoticed and may be perceived to be more aesthetically pleasing than normal teeth but when fluorosis is moderate (TF score 3) it is perceived as less pleasing (Do and Spencer 2007).

Skeletal fluorosis Skeletal fluorosis occurs in individuals with excessively high levels of fluoride exposure, and is endemic in several parts of the world including India, China, parts of the Middle East and


Africa, where water supplies have naturally occurring fluoride levels much higher than those recommended in Australia. It is rarely described outside these areas and some authors have suggested that crippling skeletal fluorosis in endemic areas may be due to other nutritional factors (Kaminsky, Mahoney et al. 1990). The Institutes of Medicine in their 1997 report were only able to locate five case reports of ‘crippling’ skeletal fluorosis over a 35 year period in the United States (IOM 1997). The National Research Council (2006) documented a further case with an estimated daily exposure above 37 mg/day from tea and well water.

Fluoride exposure is Australia

Do we get too much fluoride? The simplest answer to this question is the prevalence of dental fluorosis is very low so Australian children are not exposed to too much fluoride. The NSW Children’s Dental Survey in 2007 found that 3.8% of children aged 11-12 years in fluoridated areas had fluorosis of ‘aesthetic concern’ (a TF index of 3 or greater) in their permanent teeth (Centre For Oral Health Strategy 2009). A fluorosis index of 3 indicates that there are cloudy white patches on the teeth. Teeth with a TF index of 3 are not functionally impaired.

Are there guideline values for fluoride intake? The Institutes of Medicine in the United States in 1997 produced tolerable upper limit guidelines ranging from 0.7 mg/day for infants less than 6 months to 10 mg/day for children >8 years and adults (IOM 1997). These values were chosen to protect against dental fluorosis in children and skeletal fluorosis in adults. Australia and New Zealand nutrient reference values for fluoride are highly similar (NHMRC 2006). These values are given in the table below.

Population subgroup Upper Limit (mg/day) Infants 0-6 months 0.7 Infants 7-12 months 0.9 1-3 years 1.3 4-8 years 2.2 9-13 years 10.0 14-18 years 10.0 Adults 19 years including pregnant women 10.0

What are the main dietary sources of exposure to fluoride? Fluoride is present in some foods at low levels. Some examples include seafood and some teas. However, the principal source in fluoridated areas is drinking water and beverages made with drinking water. In Australia total dietary exposure to fluoride was considered in 2009 by Food Standards Australia and New Zealand in the assessment of an application by a manufacturer to voluntarily add fluoride to bottled water (FSANZ 2009) Using dietary modelling data they estimated that the suggested upper limits for fluoride dietary intake would generally be exceeded for average weight formula-fed infants and older infants with a mixed diet when drinking water was fluoridated to 1 mg/L. A smaller proportion of children aged between 2 and 8 years would also exceed the suggested dietary upper limit value. Older children and adults would almost never exceed the suggested dietary limit.


Although some infants and children may get more dietary fluoride than recommended, the consequences of this are limited, because, as discussed above, the prevalence of dental fluorosis remains low.

What about non-dietary sources of fluoride? The average exposure to fluoride has probably increased since the widespread availability of fluoridated toothpaste and other fluoride products. There are also pharmaceutical sources of fluoride, small sources in the air and pesticides containing fluoride. There are no Australian estimates of total dose of fluoride from all sources. The Environment Protection Agency (EPA) in the United States have estimated the total dose by age for the United States population assuming exposure to an averagely fluoridated drinking water supply (0.87 mg/L) and 90th centile (i.e. high) water consumption (USEPA 2010). The estimates included all sources including food and beverages, toothpaste, dental procedures, pharmaceuticals, soil ingestion and air. The US document concluded that some children up to the age of 7 years may be exposed to higher amounts of fluoride than recommended. Fluoride toothpaste is an important source in children up to the age of 7 who ingest more toothpaste than older children. This analysis also shows that drinking water is still a very important source of fluoride.

What protections are there to prevent against too much fluoride? The risk for dental fluorosis of the permanent teeth is related to fluoride exposure from birth to 8 years and this is the more critical time for caution about excess fluoride exposure. The National Health and Medical Research Council Australian Drinking Water Guidelines established a health guideline value (upper limit) of 1.5 mg/L based on protecting against dental fluorosis. Teeth of young children are further protected by the use of low strength fluoride toothpaste in Australia which became common in the 1990s. According to recommendations made in a consensus workshop in 2006 toothpaste should not be used until age 18 months, from 18 months to 5 years reduced fluoride toothpaste containing 0.4 -0.55 mg /g of fluoride should be used and only a small pea-sized amount placed on the brush. Full strength toothpaste (1mg/g) should not be used until age 6 (Health 2006). These recommendations probably led to a halving of dental fluorosis (Spencer and Do 2008).

Is bottle-feeding safe? Infants should be exclusively breast-fed for the first six months of life (NHMRC 2012). However, this is not always possible. Bottle-fed infants may be exposed to fluoride through water used to prepare formula and, to a much smaller extent, in infant formulae. Studies in the United States (Marshall, Levy et al. 2004), Australia (Riordan 1993) and a systematic review (Hujoel, Zina et al. 2009) suggest that bottle-feeding and / or early weaning is a risk factor for dental fluorosis. In the United States the prevalence of dental fluorosis is higher than in Australia, and official statements in the US suggest making up powdered infant formula with low fluoride content water is an option that should be considered by parents (Berg, Gerweck et al. 2011, CDC 2013). In Australia, Food Standards labelling requirements for fluoride in infant formula have led to dry powdered infant formulae having low fluoride content (Clifford, Olszowy et al. 2009). In addition the measures outlined above to prevent too much fluoride exposure from toothpaste in early childhood appear to be effective in reducing the prevalence of fluorosis. The National Health and Medical Research Council considers that it is safe to use fluoridated drinking water to make up infant formula. (NHMRC 2007). A consensus statement on the use of fluoride in Australia also concluded


that infant formula is safe when made up with fluoridated drinking water (Australian Research Centre for Population Oral Health 2006).

Claims about harms of fluoridated water

Are there any risks of bone fracture? Around 99% of fluoride in the body resides in bone. It is incorporated within the bone matrix in a modified form of hydoxyapatite crystal (fluoroapatite). There has been long-standing interest in fluoride effects on bone including use as a pharmaceutical agent at high doses to promote bone mineral density. There have been many studies investigating whether there is an increase in bone fractures at levels of fluoride exposure found in drinking water. The National Health and Medical Research Council in 2007 in their systematic review of studies concluded that there is no clear association between water fluoridation in the optimal range and hip fractures or other fractures (NHMRC 2007). This was also the conclusion of the NHS York review in 2000 (McDonagh, Whiting et al. 2000). The US National Research Council in their publication Fluoride in Drinking Water also examined the risk of fracture and was specifically concerned with any risks at a range of 2-4 mg/L because of the range of fluoride exposure in some naturally fluoridated areas of the United States. They considered that at these higher ranges of exposure particularly at lifetime exposures to drinking water at 4 mg/L there may be an increase in fracture rates (National Research Council 2006). This result, although of interest, is not of relevance in the Australian context where natural fluoride occurring at high levels in the water supply is rare.

Are there any risks of kidney disease? The kidneys are responsible for eliminating fluoride from the body and the ability of people with impaired kidneys to eliminate fluoride is lower. Kidney Health Australia (www.kidney.org.au) state there is limited evidence that persons with advanced kidney disease who ingest substances with high concentrations of fluoride (for example certain dental treatments or some teas) may be at risk of skeletal fluorosis. They recommend prudent avoidance. Kidney Health Australia also state that there is no evidence that consumption of optimally fluoridated water causes chronic kidney disease or poses any risks for people with established chronic kidney disease. In the case of dialysis, fluoride concentrations in the final feed water to the dialysis machine must comply with established water guidelines, and be less than 0.2 mg/L. The dialysis water must be deionised (free of electrically charged particles) to ensure it is able to filter the dialysis patient’s blood appropriately. This issue relates to all electrically charged particles, not just fluoride. Dialysis machines use reverse osmosis to remove fluoride and other electrically charged particles.

Are there risks of cancer associated with fluoridating the water? The NHMRC in their systematic review examined studies reporting the effect on cancer incidence (all cancers and bone cancers) in populations exposed to different levels of fluoride. They used the NHS ‘York’ review as their base analysis. The summary of the evidence from both the York review and the NHRMC review was that the studies were of


http://www.kidney.org.au/

lower quality and there was no convincing evidence of any effect. (McDonagh, Whiting et al. 2000), (NHMRC 2007). Fluoride has effects on cells responsible for bone formation and there have been some specific investigations into a possible relationship between fluoride exposure and bone cancer. A study by Bassin (Bassin, Wypij et al. 2006) reported a 5-fold increase in risk of osteosarcoma in optimally or highly fluoridated areas compared with areas that had low fluoride by comparing the exposures of 103 cases with 202 controls from the same orthopaedic hospitals . Other case-control studies have not found this association (Kim, Hayes et al. 2011), (Moss, Kanarek et al. 1995). Case-control studies are liable to certain biases (errors) and the United States National Research Council in their commentary on the Bassin study were concerned that controls may not have been selected so that their exposure to fluoride could be compared with the exposure of osteosarcoma cases. In a recently published analysis of variation in osteosarcoma in the US Levy (Levy and Leclerc 2012) found no evidence of variation in the rate of osteosarcoma by the fluoridation status by State. In previous studies of incidence of bone cancer there does not seem to be an increase in incidence after fluoridation over time that we would expect to see if fluoride in drinking water was truly associated with an increase in osteosarcoma or other bone cancer. Osteosarcoma is a very rare cancer that occurs in teenagers and then again in people over the 50. In NSW in the 5 years between 2004 and 2008 there were 11 osteosarcomas in children reported to the cancer registry in NSW.

Can people be allergic to fluoride? It is highly unlikely that fluoridated water causes allergic reactions or allergy-like symptoms. The range of symptoms typically reported is not typical of allergic conditions. Because fluoride is already present in many food sources it seems unlikely that additional exposure to fluoride in water could be a trigger for allergic symptoms. The evidence considered by the National Research Council (2006) in Fluoride in Drinking Water in their discussion of allergy was scant.

Does fluoride lower intelligence? Studies have examined Intelligence Quotient (IQ) scores in children exposed to significantly higher fluoride levels than those used in Australia – the majority in China. A 2012 review of previous studies (Choi, Sun et al. 2012) suggested the possibility of an adverse effect on children’s neurodevelopment. Studies reported differences in IQ between communities with different levels of fluoride in the water supply. Each study reviewed had major deficiencies that limit the conclusions that can be drawn. Most studies were small, measurement of intelligence was sometimes non-standard, and some important other factors that could explain differences in intelligence were not taken into account. Importantly the low fluoride control groups often had exposures comparable to fluoride in drinking water in Australia and the high fluoride groups exposures up to 10 times higher than that allowed in drinking water in Australia. There is no reason to believe the reported effects would be associated with optimally fluoridated drinking water.

Can fluoride affect the thyroid gland? Very early in the history of investigation of dental fluorosis and its link to excess fluoride in drinking water in the United States there were observations of goitre (enlarged thyroid) in children. There have been various reports since of a link between fluoride exposure and


goitre or other thyroid dysfunction. This subject was reviewed by the U.S. National Research Committee and it appears there is an absence of good evidence that fluoride exposure is related to thyroid dysfunction or is associated with goitre at levels found in drinking water and independent of other factors. Many studies were from developing countries with relatively high fluoride levels. Even well reported studies such as that of Joost (Jooste, Weight et al. 1999) simply report prevalence of goitre and fluoride levels in water in different communities. There may be effects of fluoride on the thyroid in conditions of iodine deficiency or at high levels of fluoride exposure perhaps in the presence of other factors. There appears to be no clinical effects on the thyroid that could be ascribed to the low level fluoride exposure in Australia.

Can fluoride affect the pineal gland? There has also been interest in possible effects on the pineal gland (in the brain) because calcium is sometimes deposited in the pineal gland and fluoride binds with calcium. There have been investigations into various functions that could be partly governed by the pineal gland and fluoride exposure (e.g. possible associations with early menarche). Studies (for example variation in age of onset of menarche) have been too simple to draw any conclusions.

Society making decisions

Is water fluoridation ethical? Whether a public health measure is ethical can be viewed in many different ways and some common considerations include benefits, harms, costs, fairness and individual rights. The ethical perspective that many public health and other policy-making bodies adopt is a utilitarian perspective. This perspective supports a decision as ethical if there is more benefit than harm. This perspective tolerates some harm to some people if the overall benefit is greater. This perspective is problematic if important harms accrue to certain groups in the community and not others. Fluoridation is an intervention with benefits across all age ranges and only a single established side effect: dental fluorosis. This side effect is minor, cosmetic and accrues in the children who directly benefit from the caries-preventing effects of fluoride. Justice perspectives are also important in ethical decision-making. Everyone who has access to a water supply that is fluoridated has access to this public health measure. This includes people with the poorest dental health such as disadvantaged people and Aboriginal people. Often these people have limited access to dental services and basic dental items such as toothbrushes and fluoridated toothpaste.

Is individual consent required to fluoridate? Some people argue that fluoride is a medical treatment and that individual free and informed consent is required and that this is denied them when a decision is made to fluoridate an entire community. Reference is sometimes made the Universal Declaration on Bioethics and Human Rights and Bioethics which in Article 6 states that any preventive, diagnostic or medical therapeutic intervention is only to carried out with prior free and informed consent (UNESCO 2005). The view of most public health bodies is that fluoridation is not an individual therapeutic intervention and individual free and informed consent is not required. Fluoridation is not individually prescribed or recommended and side effects are restricted to a minor cosmetic condition (dental fluorosis). Fluoridation is more closely


related to a supplementation or fortification of foods, such as the addition of iodine to salt, and folate to bread. The framework for decisions about fortification of foods for public health benefit includes safeguards for proper process and proper consultation. For fluoridation and other similar public policy decisions ethical tests are met by transparent government processes, community consultation and engagement.

Is water fluoridation cost-effective? A recent Australian study (Cobiac and Vos 2012) shows that extension of fluoridation to un-fluoridated urban communities (>1000 people) is not only cost-effective (good value for the health gain achieved) but is cost saving. For each $1 million invested in capital and maintenance over an assumed 15 year life of a water treatment plant there would an estimated direct saving of $7 million (range 5-20) in avoided treatment costs associated with dental caries. For each $1 million in investment there would be prevention of pain and suffering amounting to 285 disability adjusted life years (DALYs). The study assumed fluoridation only benefited children and did not include the costs of hospital admission – so potentially the benefits and savings may be higher (Cobiac and Vos 2012). However, Cobiac and Vos probably underestimated the costs of fluoridation in smaller urban communities. Recent experience in NSW indicates that the cost of a fluoridation plant to service small communities can be modest. For example the fluoridation plants for Braidwood (pop. 1500) and Currandooly (pop. 3000) each cost around $70,000. The policy decision in NSW that communities pay only ongoing costs and not capital costs means that the direct cost to communities is exceptionally low.

Are people in NSW in favour of water fluoridation? The NSW Population Health Survey is an ongoing telephone survey of the health of people who live in NSW. The survey is done to assess changes over time in self-reported health behaviours, health status and health service use. The survey collects data from approximately 12,000 NSW residents annually. From 2005 to 2008 the survey included questions to assess the level of community support for water fluoridation (‘Do you agree with adding fluoride to your public water supply to prevent tooth decay?’). In 2008, 87% of adults surveyed were in favour of fluoridating public water supplies. People in urban areas were more likely to support water fluoridation (90%) than people in rural areas (82%) (2009). The questions were removed from the health survey after 2008 as there had been little change in the level of community support for water fluoridation since 2005. An independent survey conducted in 2005 found equally strong support for fluoridation of the water for communities that receive water from Rous Water (Ballina, Byron, Lismore and Richmond Valley) – 62% in favour of fluoridation, and only 22% not in favour.

Can fluoride be added to salt or milk or bottled water? As stated previously, the NHMRC reviewed the evidence for milk and salt fluoridation and found that the evidence for milk fluoridation was of lower quality than that for water fluoridation but generally supported a reduction in dental caries. No studies of salt fluoridation were of acceptable quality and the NHMRC were unable to make form a judgement about the efficacy of this form of supplementary fluoridation (NHMRC 2007). Following an application by a manufacturer the Food Standards Authority of Australia and New Zealand (FSANZ) approved fluoride as an additive to packaged water in 2009 at levels between 0.6 and 1.0 mg/L. Although it has been suggested that bottled water could form an alternative source of fluoride overall consumption of fluoride is low and in the


accompanying risk assessment commissioned by FSANZ annual consumption of still packaged water in 2006 only amounted to 14 litres per person (FSANZ 2009). The general concern with all other forms of supplementation (as an alternative to fluoridating the water supply) is that total exposure and frequency of exposure will be insufficient to prevent dental caries and that some groups in the population in particular will be worse off.

Why can’t people who want fluoride just use toothpaste? As discussed in a previous section there is high quality evidence that fluoride containing topical treatments such as toothpaste reduce dental caries. The effect of fluoridation of the water supply appears to provide additional protection over and above the use of fluoride containing toothpaste and brushing. Further it provides protection to all irrespective of their access to dental treatments, socio-economic background, and health behaviour.

Effects on the environment

Can fluoridated water be used in organic farming? Fluoride is a naturally occurring element. Fluoride is present naturally in water sources and soil, as well as in some commonly consumed foods such as tea. Fluoride is present in some water supplies at similar concentrations to fluoridated drinking water. Under the Australian Certified Organic Standard 2010 Version 1.0, Annex III, drinking (potable) water is permitted as a conventional (non-certified) ingredient (see http://www.bfa.com.au/Portals/0/ACO_2010_Standard_full.pdf)

References Australian Research Centre for Population Oral Health (2006). "The use of fluorides in

Australia: guidelines." Australian Dental Journal 51(2): 195-199. Anonymous. "Water fluoridation." Retrieved 21 October 2013, from

http://en.wikipedia.org/wiki/Water_fluoridation. Armfield, J. M. (2005). "Public water fluoridation and dental health in New South Wales."

Aust N Z J Public Health 29(5): 477-483. Armfield, J. M. (2008). "The benefits of water fluoridation across areas of differeing socio-

economic status." Australian Dental Journal 53: 4. Bassin, E. B., D. Wypij, et al. (2006). "Age-specific fluoride exposure in drinking water and

osteosarcoma (United States)." Cancer Causes Control 17(4): 421-428. Berg, J., C. Gerweck, et al. (2011). "Evidence-based clinical recommendations regarding

fluoride intake from reconstituted infant formula and enamel fluorosis: a report of the American Dental Association Council on Scientific Affairs." J Am Dent Assoc 142(1): 79-87.

Centers for Disease Control (2013). "Overview: Infant formula and Fluorosis." from http://www.cdc.gov/fluoridation/safety/infant_formula.htm.

Centre for Epidemiology and Research (2009). 2008 Report on Adult Health from the New South Wales Population Health Survey. Sydney, NSW Department of Health.

Centre for Oral Health Strategy (2009). The New South Wales Child Dental Health Suvey 2007.


http://www.bfa.com.au/Portals/0/ACO_2010_Standard_full.pdf

Choi, A. L., G. Sun, et al. (2012). "Developmental fluoride neurotoxicity: a systematic review and meta-analysis." Environ Health Perspect 120(10): 1362-1368.

Clifford, H., H. Olszowy, et al. (2009). "Fluoride content of powdered infant formula meets Australian Food Safety Standards." Aust N Z J Public Health 33(6): 573-576.

Cobiac, L. J. and T. Vos (2012). "Cost-effectiveness of extending the coverage of water supply fluoridation for the prevention of dental caries in Australia." Community Dent Oral Epidemiol 40(4): 369-376.

Do, L. G. and A. Spencer (2007). "Oral health-related quality of life of children by dental caries and fluorosis experience." J Public Health Dent 67(3): 132-139.

Evans, R. W., A. C. Hsiau, et al. (2009). "Water fluoridation in the Blue Mountains reduces risk of tooth decay." Aust Dent J 54(4): 368-373.

Featherstone, J. D. (1999). "Prevention and reversal of dental caries: role of low level fluoride." Community Dent Oral Epidemiol 27(1): 31-40.

FSANZ (2009). Final Assessment Report Application A588: Voluntary addition of fluoride to packaged water, Food Standards Australia and New Zealand.

Hardwick, J. L., J. Teasdale, et al. (1982). "Caries increments over 4 years in children aged 12 at the start of water fluoridation." Br Dent J 153(6): 217-222.

Hujoel, P. P., L. G. Zina, et al. (2009). "Infant formula and enamel fluorosis: a systematic review." J Am Dent Assoc 140(7): 841-854.

Institutes of Medicine (1997). Dietary Reference Intakes for Calcium, Phosphorus, magnesium, Vitamin D, and Fluoride. Washington, D.C., National Academy of Sciences.

Jooste, P. L., M. J. Weight, et al. (1999). "Endemic goitre in the absence of iodine deficiency in schoolchildren of the Northern Cape Province of South Africa." Eur J Clin Nutr 53(1): 8-12.

Kaminsky, L. S., M. C. Mahoney, et al. (1990). "Fluoride: benefits and risks of exposure." Crit Rev Oral Biol Med 1(4): 261-281.

Kim, F. M., C. Hayes, et al. (2011). "An assessment of bone fluoride and osteosarcoma." J Dent Res 90(10): 1171-1176.

Levy, M. and B. S. Leclerc (2012). "Fluoride in drinking water and osteosarcoma incidence rates in the continental United States among children and adolescents." Cancer Epidemiol 36(2): e83-88.

Marshall, T. A., S. M. Levy, et al. (2004). "Associations between Intakes of fluoride from beverages during infancy and dental fluorosis of primary teeth." J Am Coll Nutr 23(2): 108-116.

Marthaler, T. M. (2004). "Changes in dental caries 1953-2003." Caries Res 38(3): 173-181. McDonagh, M. S., P. F. Whiting, et al. (2000). "Systematic review of water fluoridation." BMJ

321(7265): 855-859. Mejia, G., N. Amarasena, et al. (2007). Child Dental Health Survey Australia 2007: 30-year

trends in child oral health. Dental statistics and research series, Australian Research Centre for Population Oral Health.

Moss, M. E., M. S. Kanarek, et al. (1995). "Osteosarcoma, seasonality, and environmental factors in Wisconsin, 1979-1989." Arch Environ Health 50(3): 235-241.

National Research Council (2006). Fluoride in Drinking Water: A Scientific Review of the EPA's Standards. Washington, D.C., National Academies Press.


NHMRC (2006). Nutrient Reference Values for Australia and New Zealand Including Recommended Dietary Intakes. Canberra, National Health and Medical Research Council and New Zealand Ministry of Health.

NHMRC (2007). A Sytematic Review of the Efficacy and Safety of Fluoridation. Part A: Review Methodology and Results. Canberra, National Health and Medical Research Council.

NHMRC (2007). NHMRC Public Statement: the Efficacy and Safety of Fluoridation 2007 Canberra, National Health and Medical Research Council.

NHMRC, NRMMC (2011) Australian Drinking Water Guidelines Paper 6 National Water Quality Management Strategy. National Health and Medical Research Council, National Resource Management Ministerial Council, Commonwealth of Australia, Canberra.

NHMRC (2012). Infant Feeding Guidelines. Canberra, National Health and Medical Research Council.

NSW Health (2011). New South Wales Code of Practice for Fluoridation of Public Water Supplies, Centre for Oral Health Strategy, NSW Department of Health.

NSW Health (2013). Water Fluoridation in NSW, NSW Health. Riordan, P. J. (1993). "Dental fluorosis, dental caries and fluoride exposure among 7-year-

olds." Caries Res 27(1): 71-77. Singh, K. A. and A. J. Spencer (2004). "Relative effects of pre- and post-eruption water

fluoride on caries experience by surface type of permanent first molars." Community Dent Oral Epidemiol 32(6): 435-446.

Sivaneswaran, S. (2009). "The oral health of adults in NSW, 2004-06." N S W Public Health Bull 20(3-4): 46-51.

Slade, G. D., A. E. Sanders, et al. (2013). "Effects of fluoridated drinking water on dental caries in Australian adults." J Dent Res 92(4): 376-382.

Spencer, A. J. and L. G. Do (2008). "Changing risk factors for fluorosis among South Australian children." Community Dent Oral Epidemiol 36(3): 210-218.

Stamm, J. W., D. W. Banting, et al. (1990). "Adult root caries survey of two similar communities with contrasting natural water fluoride levels." J Am Dent Assoc 120(2): 143-149.

UNESCO (2005). Universal Declaration on Bioethics and Human Rights UNESCO. USEPA (2010). Fluoride: Exposure and relative source contribution analysis. Office of Water,

Health and Ecological Criteria Division. Washington D.C., U. S. Environmental Protection Agency.


Agenda Item: CLAUSE 3. Murray River Council Draft Graffiti Policy

1Insert policy name

Title: Graffiti Policy

Policy No: XXXX

Adopted By:

Next Review Date:

Responsibility: Director Engineering

CM9 Document Number: DOC/17/4120

Version Decision Number Adoption Date History

1

1 Policy Summary

Murray River Council is committed to providing safer communities, reducing the occurrence of graffiti and addressing perceptions of criminal activity such as graffiti.

Community groups have placed an increased emphasis on graffiti management and in support Council is to develop a robust management framework including have appropriate operating and management practices in place.

2 Policy Objectives

The objectives of the Policy are to:

a. To establish an effective and cost efficient graffiti removal service in the Murray River Council area;

b. To enhance the built environment by reducing the occurrence of graffiti;c. To remove graffiti as quickly as possible to deter ongoing occurrence ;d. To involve the local community as partners in reducing graffiti;e. To remove graffiti using environmentally sustainable methods to minimize harm to

the environment;f. To encourage private property owners to take responsibility for prompt action against

graffiti on their property.

3 Background

This policy applies to the removal of graffiti. Graffiti impacts the community in a number of ways.

a. It can have a negative impact on community amenity including perceptions of poor safety and increased crime.

b. It can have a negative impact on the environment through pollution (chemical runoff into waterways) and damage to items of historical or artistic value.

c. It can impact on the Council financially through costs associated with the removal and management of graffiti.

4 Policy Statement

2Insert policy name

1. The Council will arrange for the removal of graffiti at its own cost from:a. Council owned and/managed buildings and facilitiesb. Council owned signagec. Street furniture on the road reserved. Playgrounds and other assets in parks and recreational arease. War memorials and other monuments and sites of significancef. Public art

2. The Council will not remove graffiti from any location where a risk assessment determines that the health and safety of Council staff or appointed contractor is placed inan unacceptable risk or where Council is of the opinion that any graffiti removal would damage property.

3. The Council will reduce the incidence of graffiti through the use of strategies including reporting and removal. Council officers will arrange for the removal of graffiti on Council owned and/or managed infrastructure based on the following type of graffiti, location and frequency:

4. Offensive graffiti will be removed from Council owned and/or managed infrastructure within two working days of detection or reported to Council.

5. Non-offensive graffiti on Council owned and/or managed infrastructure located in prominent areas that is above ground and is within three metres of any Council or public authority road within 6 weeks of detection or reported to Council.

6. Non-offensive graffiti on Council owned and/or managed infrastructure located in non-prominent areas twice annually.

7. The Council will notify owners of graffiti in accordance the Graffiti Control Act 2008.8. The Council will encourage the community to report incidences of graffiti for removal. 9. The Council will participate in programs such as the NSW Attorney General’s and

Justice’s Crime Prevention Through Environmental Design Program.

5 Legislation, Terminology and References

Engaging in graffiti, including damaging or defacing property, is an offence under the Graffiti Control Act 2008. While the Council takes on the responsibility for the removal of graffiti as outlined in this policy, the NSW Police is the agency responsible for enforcement and prosecution in relation to graffiti offences.

Term Meaning

Graffiti A mark applied through spray paint, marker pen or any device designed or modified to produce a mark that is not easily removable

Offensive graffiti Graffiti that depicts racism, defamatory information, nudity, obscene images

Property Buildings

Infrastructure Fences, footpaths, roads, cabinets, skateparks, poles

3Insert policy name

6 Implementation and Delegation

The Director Engineering is allocated overall responsibility for the implementation of this policy.

7 Evaluation and Review

It is the responsibility of the Director Engineering to monitor the adequacy of this policy and recommend appropriate changes. This policy will be formally reviewed

every three years or as needed, whichever comes first.

Agenda Item: CLAUSE 7. Proposed Private Road Names - Deep CreekMarina

adminmsc

APPENDIX A

Agenda Item: CLAUSE 7. Proposed Private Road Names - Deep CreekMarina

APPENDIX B

Name allocated

Aboriginal Origin Birds in Murray Region

Hudson Apostle Babbler Black Swan Blackbird

Kerr Blue Bonnet Brolga Bronzewing Bushlark

Atkinson Cockatoo Corella Cormorant Cuckoo

Firebrace Currawong Dove Eagle Egret

Walker Emu Falcon Fantail Finch

Day Firetail Gull Harrier Heron

Honeyeater Ibis Kestrel Kingfisher

Yorta Yorta Name English Meaning Kookaburra Lorikeet Magpie Owl

Yooringa Sun Pelican Pigeon Quail Robin

Yurri Moon Rosella Sandpiper Songlark Spoonbill

Duta Star Thornbill Wagtail Wattlebird Whistler

Dhala Night Wren

Wongda Day

Gorkarra Rain

Munarra Thunder

Yungaba Frost

Woka Land

Wala Water

Previous Mayors & Presidents

Adams Anderson Anthony Bayliss

Beer Blyth Bowtel Bright

Burren Clark Clarke Cockayne

Cooper Coppinger Crack Daly

Farrell Glenn Gove Grant

Ham Howat Kilpatrick Lea

Leetham Leitch McKindlay Mole

Moon Pocklington Polglase Reid

Santilla Selleck Sharp Watson

Weymouth White Wild Dudley

Murray River Council

Pre Approved Road/Street Names

Agenda Item: CLAUSE 8. Murray River Council Asset Management Policy& Strategy

Note: This policy is based on the template supplied by the Institute of Public Works Engineering Australasia Limited 2018 1

Murray River Council

Policy Name Doc No ASSET MANAGEMENT Version

1 Date

Controller: Approved by Council: Review Date General Manager

1.0 Purpose

The purpose of this policy is to set guidelines for implementing consistent asset management processes throughout Murray River Council. 2.0 Scope

This policy applies to all the Murray River Council departments, officers, employees and contractors. 3.0 Objectives

To ensure adequate provision is made for the long-term replacement of major assets by:

Ensuring that services and infrastructure are provided in a financially sustainable manner, with the appropriate levels of service to customers and the environment.

Safeguarding infrastructure assets including physical assets and employees by implementing appropriate asset management strategies and appropriate financial resources for those assets.

Creating an environment where all employees take an integral part in overall management of infrastructure assets by creating and sustaining an asset management awareness throughout the Murray River Council by training and development.

Meeting any legislative and regulatory requirements for asset management.

Ensuring resources and operational capabilities are identified and responsibility for asset management is allocated.

Demonstrating transparent and responsible asset management processes that align with demonstrated best practice.

4.0 Policy

4.1 Background

Asset management practices impact directly on the core business of the Murray River Council and appropriate asset management is required to achieve our strategic service delivery objectives.

Adopting asset management principles will assist in achieving our Strategic Long Term Plan and Long Term Financial objectives.


Sustainable Service Delivery ensures that services are delivered in a socially, economically and environmentally responsible manner in such a way that does not compromise the ability of future generations to make their own choices. Sound Asset Management practices enable sustainable service delivery by integrating customer values, priorities and an informed understanding of the trade-offs between risks, costs and service performance.

4.2 Principles

The Murray River Council sustainable service delivery needs will be met by ensuring adequate provision is made for the long-term planning, financing, operation, maintenance, renewal, upgrade, and disposal of capital assets by: 1. Ensuring that the Murray River Council capital assets are provided in a manner that respects

financial, cultural, economic and environmental sustainability;

2. Meeting all relevant legislative and regulatory requirements;

3. Demonstrating transparent and responsible Asset Management processes that align with demonstrable best-practices;

4. Implementing sound Asset Management plans and strategies and providing sufficient financial resources to accomplish them by:

a. Asset Management plans will be completed for all major asset / service areas.

b. Expenditure projections from Asset Management Plans will be incorporated into the Murray River Council’s Long Term Financial Plan.

c. Regular and systematic reviews will be applied to all asset plans to ensure that assets are managed, valued, and depreciated in accordance with appropriate best practice.

d. Regular inspection will be used as part of the asset management process to ensure agreed service levels are maintained and to identify asset renewal priorities.

e. Asset renewals required to meet agreed service levels and identified in adopted asset management plans, and when applicable long term financial plans, will form the basis of annual budget estimates with the service and risk consequences of variations in defined asset renewals and budget resources documented.

f. Future life cycle costs will be reported and considered in all decisions relating to new services and assets and upgrading of existing services and assets.

g. Future service levels with associated delivery costs will be determined in consultation with the community.

h. Ensuring necessary capacity and other operational capabilities are provided and Asset Management responsibilities are effectively allocated;

i. Creating a corporate culture where all employees play a part in overall care for the Murray River Council’s assets by providing necessary awareness, training and professional development; and

j. Providing those we serve with services and levels of service for which they are willing and able to pay.


5.0 Related Documents

Murray River Council Asset Management Strategy

Murray River Council Asset Management Plans

Murray River Council Community Strategic Plan

Long Term Financial Plan

6.0 Responsibility

Councillors are responsible for adopting the policy, allocating resources, and providing high level oversight of the delivery of the Murray River Council’s asset management strategy and plans. The council is also responsible for ensuring that Murray River Council resources are appropriately allocated to ensure sustainable service delivery. The General Manager has overall responsibility for developing an asset management strategy, plans and procedures and reporting on the status and effectiveness of asset management within the Murray River Council. 7.0 Review Date

This policy has a life of 4 years or less at the discretion of the current Council. It will be reviewed in June 2022.

Agenda Item: CLAUSE 8. Murray River Council Asset Management Policy& Strategy


MURRAY RIVER COUNCIL

ASSET MANAGEMENT STRATEGY

Version 1.0

June 2018

Note: The strategy is based on the template provided by The Institute of Public Works Engineering Australasia


Document Control

Document Control

Rev No Date Revision Details Author Reviewer Approver

1.0 14/06/2018 Version 1 - Draft for Comment BG JL

Murray River Council Asset Management Strategy Page i

Table of Contents

Contents ................................................................................................................................................... i Tables ....................................................................................................................................................... i Figures ...................................................................................................................................................... i Executive Summary ................................................................................................................................. 1 1. Introduction .................................................................................................................................... 4

1.1 Legislative reform ................................................................................................................... 5 1.2 Asset Management Planning Process ..................................................................................... 8

2. What Assets do we have? ............................................................................................................... 8 3. Council’s Assets and their management? ..................................................................................... 10

3.1 State of the Assets ................................................................................................................ 10 3.2 Life Cycle Cost ....................................................................................................................... 11 3.3 Asset Management Structure ............................................................................................... 12 3.4 Corporate Asset Management Team .................................................................................... 13 3.5 Financial & Asset Management Core Competencies ............................................................ 14 3.6 Strategy Outlook ................................................................................................................... 15

4. Where do we want to be? ............................................................................................................ 16 4.1 Council’s Vision, Mission, Goals and Objectives ................................................................... 16 4.2 Asset Management Policy ..................................................................................................... 17 4.3 Asset Management Vision .................................................................................................... 17

5. How will we get there? ................................................................................................................. 18 6. Asset Management Improvement Plan ........................................................................................ 19 Appendix A Asset Dimensions ............................................................................................................ 21 Appendix B Asset Management Maturity Assessment .................................................................... 212

Tables

Table 1: Assets used for providing Services ............................................................................................ 8 Table 2: Financial Status of the Assets .................................................................................................. 10 Table 3: Life Cycle Cost for Council Services ......................................................................................... 11 Table 4: Life Cycle Expenditure for Council Services ............................................................................ 11 Table 5: Life Cycle Indicators................................................................................................................. 12 Table 6: Goals and Objectives for Infrastructure Services .................................................................... 16 Table 7: Asset Management Strategies ................................................................................................ 18 Table 8: Asset Management Improvement Plan .................................................................................. 19

Figures

Figure 1: Asset Replacement Values ..................................................................................................... 10 Figure 2: Core Asset Management Maturity ........................................................................................ 15

Murray River Council Asset Management Strategy Page ii

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Murray River Council Asset Management Strategy Page iii

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Murray River Council Asset Management Strategy Page 1

Executive Summary This asset management strategy is prepared to assist council in improving the way it delivers services from infrastructure including roads, bridges, footpaths, stormwater drainage, parks and recreation, plant and equipment, buildings, water and sewer. These infrastructure assets have a replacement value of $659M. 1

The Asset Management Strategy is to enable Council to show:

how its asset portfolio will meet the service delivery needs of its community into the future, enable Council’s Asset Management Policies to be achieved, and ensure the integration of Council’s asset management with its long term strategic plan.2

Adopting this Asset Management Strategy will assist Council in meeting the requirements of national sustainability frameworks, Integrated Planning and Reporting guidelines for NSW (IPR), the Local Government Act 1993, Local Government (General) Regulations 2005 and providing services needed by the community in a financially sustainable manner.

The Asset Management Strategy is prepared following a review of the Council’s service delivery practices, financial sustainability indicators, asset management maturity and fit with Council’s vision for the future outlined in the Murray River Council Community Strategic Plan 2018-2028. The Strategy outlines an asset management improvement plan detailing a program of tasks to be completed and resources required to bring Council to a minimum ‘core’ level of asset maturity and competence.

Strategy outlook

1. Council is able to fund long-term current infrastructure life cycle cost at current levels of service and available revenue based on the technical asset register (table 5) and scenario 2 data as set out in section 3.2. Note that to achieve parity under this scenario funds would need to be reallocated from asset classes with life cycle indicator scores above 1 to those classes with scores below 1. The supporting data for these calculations will be reviewed over the next 12 months to ensure adequate confidence levels.

2. Council is sustainable for the 10 year period of the asset management plans and is able to fund the maintenance of current levels of service for most assets with the exception of buildings. For buildings, a prioritised programme is needed that either rationalises or allows some buildings to deteriorate, whilst maintaining and possibly upgrading higher priority buildings. This gives Council time to plan strategies for longer term sustainability. As the condition of public buildings represent a substantial risk to Council, this review needs to be completed as a priority.

3. Ongoing analysis is needed to determine forward works and funding needed for water and sewer. For water and sewer an increase in capital renewal across the classes is required in

1 Note 9a General Purpose Financial Statements 30 June 2017. 2 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.


order to replace aging infrastructure before it reaches the end of it’s functional life. This may involve increase water and sewer charges.

4. Council’s maturity assessment for the core competencies has improved significantly since merger and core maturity is expected by late 2018 with an ongoing improvement programme in place for data, systems and governance.

5. Council must continue to invest in improved condition data and risk inspection and monitoring.

Asset management strategies

No Strategy Desired Outcome

1 Move from Annual Budgeting to Long Term Financial Planning The long term implications of Council services are considered in annual budget deliberations.

2 Develop and annually review Asset Management Plans covering at least 10 years for all major asset classes (80% of asset value).

Identification of services needed by the community and required funding to optimise ‘whole of life’ costs.

3 Develop Long Term Financial Plan covering 10 years incorporating Asset Management Plan expenditure projections with a sustainable funding position outcome.

Sustainable funding model to provide Council services.

4 Incorporate Year 1 of Long Term Financial Plan revenue and expenditure projections into annual budgets.

Long term financial planning drives budget deliberations.

5 Review and update Asset Management Plans and long term financial plans after adoption of annual budgets. Communicate any consequence of funding decisions on service levels and service risks.

Council and the community are aware of changes to service levels and costs arising from budget decisions.

6 Report Council’s financial position at Fair Value in accordance with Australian Accounting Standards, financial sustainability and performance against strategic objectives in Annual Reports.

Financial sustainability information is available for Council and the community.

7 Ensure Council’s decisions are made from accurate and current information in asset registers, on service level performance and costs and ’whole of life’ costs.

Improved decision making and greater value for money.

8 Report on Council’s resources and operational capability to deliver the services needed by the community in the Annual Report.

Services delivery is matched to available resources and operational capabilities.

9 Ensure responsibilities for asset management are identified and incorporated into staff position descriptions.

Responsibility for asset management is defined.

10 Implement an Improvement Plan to realise ‘core’ maturity for the financial and asset management competencies within 2 years.

Improved financial and asset management capacity within Council.

11 Report annually to Council by Audit Committee/GM on development and implementation of Asset Management Strategy, AM Plans and Long Term Financial Plans.

Oversight of resource allocation and performance.


Asset Management Improvement Plan

The program of tasks and resources required to achieve a minimum ‘core’ asset management maturity was developed in the Asset Management Strategy. The tasks and program are shown below.

Ref Task Responsibility Target Date Budget

1 Revaluation of transportation assets – collection of current meaningful data to enable forward planning for the bulk of Councils civil infrastructure and minimise risk.

Engineering Department

30 June 2019

$150,000

2 Assessment of condition, function and capacity of council owned buildings to inform risk mitigation, enabling short term risk management and long term planning for rationalisation or service level change.


30 June 2019

$25,000

3 Public consultation to establish level of service requirements on strategic infrastructure service – particularly Buildings & Transport assets.

Whole of Council

30 June 2020

$75,000

4 Water and sewer expenditure – review capital renewal program and complete analysis of fees and charges.


30 June 2019

5 Data and system upgrade – all asset data to be loaded in to Civica Authority Asset Management module. Linkages between asset and financial modules in Civica Authority via work orders and CVR to be created. Links to Maintenance Management System developed/maintained

Asset Systems / Finance / IT

30 June 2019

$150,000

6 Creation of long term building management plan including service level determination and rationalisation.


30 June 2021

$100,000

7 Complete the consolidation of all former Murray Shire and Wakool Shire plans, strategies and policies to create current Murray River Council asset management framework.

Asset Systems 30 June 2019

8 Link all asset renewal requirements and maintenance and operation schedules to the Long Term Financial Plan.


30 June 2020

9 Resourcing strategy development - review ongoing resourcing requirements and task allocation via PD and KPI linkages. Create an ongoing reporting and feedback cycle.

Whole of Council

30 June 2020

10 Perform an annual review of the asset management framework, systems and plans.

Whole of Council

30 June 2019


1. Introduction Assets deliver important services to communities. A key issue facing local governments throughout Australia is the management of ageing assets in need of renewal and replacement.

Infrastructure assets such as roads, drains, bridges, water and sewerage and public buildings present particular challenges. Their condition and longevity can be difficult to determine. Financing needs can be large, requiring planning for large peaks and troughs in expenditure for renewing and replacing such assets. The demand for new and improved services adds to the planning and financing complexity.3

The creation of new assets also presents challenges in funding the ongoing operating and replacement costs necessary to provide the needed service over the assets’ full life cycle.4

The national frameworks on asset planning and management and financial planning and reporting endorsed by the Local Government and Planning Ministers’ Council (LGPMC) require Councils to adopt a longer-term approach to service delivery and funding comprising:

A strategic longer-term plan covering, as a minimum, the term of office of the Councillors and:

o bringing together asset management and long term financial plans, o demonstrating how Council intends to resource the plan, and o consulting with communities on the plan

Annual budget showing the connection to the strategic objectives, and Annual report with:

o explanation to the community on variations between the budget and actual results , o any impact of such variances on the strategic longer-term plan, o report of operations with review on the performance of the Council against strategic

objectives.5 Framework 2 Asset Planning and Management has seven elements to assist in highlighting key management issues , promote prudent, transparent and accountable management of local government assets and introduce a strategic approach to meet current and emerging challenges.

Asset management policy, Strategy and planning,

o Asset Management Strategy, o Asset Management Plan,

Governance and management arrangements, Defining levels of service, Data and systems, Skills and processes, and

3 LGPMC, 2009, Framework 2 Asset Planning and Management, p 2. 4 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 2-3. 5 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 4-5.


Evaluation.6 The Asset Management Strategy is to enable Council to show:

how its asset portfolio will meet the service delivery needs of its community into the future, to enable Council’s Asset Management Policies to be achieved, and to ensure the integration of Council’s asset management with its long term strategic plan.7

The goal of asset management is to ensure that services are provided:

in the most cost effective manner, through the creation, acquisition, maintenance, operation, rehabilitation and disposal of

assets, for present and future consumers.

The objective of the Asset Management Strategy is to establish a framework to guide the planning, construction, maintenance and operation of the infrastructure essential for Council to provide services to the community.

1.1 Legislative reform

1.1.1 NSW IPR

Local councils in NSW are required to undertake their planning and reporting activities in accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005. The Act provides that the Deputy Director General (Local Government), Department of Premier and Cabinet can issue Guidelines that must be followed by local Councils when undertaking their planning and reporting activities.

An Integrated Planning and Reporting Manual has been developed to provide Councils with information and guidance to assist their transition to the new planning and reporting framework.

In particular, local governments will effectively plan for future sustainability through longer-term planning by developing 10 year plans, publishing these and reviewing progress annually. The community and the State then have the best information available to judge progress against the plan, and local governments can make necessary adjustments.

Long-term Community Strategic Plan (CSP)

These plans outline the local government's vision for the community. In line with the commitment to principles rather than prescription in the legislation, the content of the plan and the method of community engagement will be decided by individual local governments.

6 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4. 7 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.


Long-term financial plans

A valuable tool for local governments when managing their finances will be to implement a longer-term financial plan to include an investment policy, a debts policy, procurement policy and a revenue policy.

Long-term asset management plans

The Community Strategic Plan provides a vehicle for expressing long-term community aspirations. However, these will not be achieved without sufficient resources – time, money, assets and people – to actually carry them out. The Resourcing Strategy consists of four components:

Long Term Financial Planning

Workforce Management Planning

Asset Management Planning

Integrated Water Cycle Management Planning

The Resourcing Strategy is the point where Council assists the community by sorting out who is responsible for what, in terms of the issues identified in the Community Strategic Plan. Some issues will clearly be the responsibility of Council, some will be the responsibility of other levels of government and some will rely on input from community groups or individuals. The Resourcing Strategy focuses in detail on matters that are the responsibility of Council and looks generally at matters that are the responsibility of others.

Achieving and maintaining sustainability in Local Government requires consideration of services, service levels, associated costs and associated risks.

1.1.2 Strategic Issues at a National Level

At its meeting on 4 August 2006, the Local Government and Planning Ministers’ Council (LGPMC) agreed to a nationally consistent approach to asset planning and management, financial planning, and reporting and assessing financial sustainability.

20 October 2006, the LGPMC endorsed the draft National Frameworks for Financial Sustainability in Local Government as a basis for consultation. On 21 March 2007 the LGPMC endorsed the Frameworks for implementation in the context of their relationships with their local government sectors .

8th May 2009 the LGPMC agreed to enhancement and acceleration of frameworks

The National Frameworks consists of three main frameworks:

Framework 1 - Criteria for Assessing Financial Sustainability

Framework 2 - Asset Planning and Management

Framework 3 - Financial Planning and Reporting


The Asset Planning and Management framework consists of seven elements as follows:

1. Development of an Asset Management Policy - Each state/territory is expected to develop an asset management policy, which provides high-level guidance to assist individual Councils in developing their Asset Management Policy.

2. Strategy and Planning - Councils should be provided with guidance from the State on developing an Asset Management Strategy which is designed to support and implement its Asset Management Policy;

3. Governance and Management Arrangements - Councils should be encouraged to apply and implement good governance and management arrangements which link asset management to service delivery and include assigning roles and responsibility for asset management between the GM, the Council and senior managers;

4. Defining Levels of Service - Mechanisms should be established that include community consultation to define the levels of service Councils are expected to provide from their asset base;

5. Data and Systems – A framework for collection of asset management data should be established;

6. Skills and Processes – The asset management framework should contain a continuous improvement program;

7. Evaluation – The asset management framework should contain a mechanism to measure its effectiveness.

The financial reporting elements of the national framework consist of 3 elements as follows:

1. Strategic Longer Term Plan – The plan brings together the detailed requirements in the Council’s Long Term Community Strategic Plan, and demonstrates how Council intends to resource the plan.

2. Annual Budget – Councils prepare an annual budget which is presented in a way which is understandable to the community and which can be compared with the audited financial statements.

3. Annual Report – Councils prepare an annual report in respect of each financial year. This is to include a report on operations, audited financial statements, explanations of any variations between the budget and actual results, and any impacts that variations will have on the longer term Community Strategic Plan.

Each State and Territory has agreed and is expected to implement the National Frameworks in consultation with local government, with a target date of 31 December 2010

The changes to legislation in NSW IPR and the implementation through IPR are consistent with the National Frameworks.


1.2 Asset Management Planning Process

Asset management planning is a comprehensive process to ensure that assets are managed and maintained in a way that enables affordable services from infrastructure to be provided in an economically optimal way. In turn, affordable service levels can only be determined by assessing Council’s financially sustainability under scenarios with different proposed service levels.

Asset management planning commences with defining stakeholder and legal requirements and needs, incorporating these needs into the organisation’s strategic plan, developing an Asset Management Policy, Strategy, Asset Management Plan and operational plans, linked to a long-term financial plan with a funding plan.8

2. What Assets do we have? Council uses infrastructure assets to provide services to the community. The range of infrastructure assets and the services provided from the assets is shown in Table 1. Refer to Appendix A for detail of Council’s asset quantity/dimensions.

Table 1: Assets used for providing Services

Asset Class Description Services Provided

Buildings Buildings -Specialised

Buildings – Non-Specialised

The buildings provided by Murray River Council are used to support the administration, operational and social infrastructure for the community.

Stormwater Drainage

Detention Basins

Pipes

Pits

Pump Stations

Stormwater drainage assets control local flooding and provide protection for property and infrastructure

8 IPWEA, 2009, AIFMG, Quick Guide, Sec 4, p 5.

Asset Management Planning Process

Legal and Stakeholder Requirements and Expectations

Organisational Strategic PlanVision, Mission, Goals & Objectives,

Levels of Service, Business Policies, Risk

ASSET MANAGEMENT POLICY

ASSET MANAGEMENT STRATEGY Objectives, level of service target and plans

Asset ManagementPhilosophy & Framework

Service Delivery OPERATIONAL PLANS

Service delivery in accordance with asset management plans

Asset solutions – operate, maintain, renew, enhance, retire

Non-asset solutions – partnerships, demand management, insurance, failure management

KNOWLEDGE MANAGEMENTAsset data and information systems

Knowledge

ASSET MANAGEMENT PLANS Services & service levels to be provided,

funds required to provide services


Plant and Equipment

Plant and Equipment

Office Equipment

Furniture & Fittings

The Plant and Equipment of Murray River Council are used to undertake road construction and maintenance. They are critical to the provision of the road network which is important to the community and economy of the region.

Transport Bridges

Carparks

Culverts

Footpaths

Kerb and Gutter

Unsealed Laneway

Sealed Local Roads

Sealed Regional Roads

Unsealed Town Streets

Sealed Town Streets

Traffic Islands & Roundabouts

Unsealed Local Roads

The Transport assets provided by Murray River Council are used to support transportation and are important to the community and economic activities of the region.

Water Filtered & Raw Fittings

Filtered & Raw Mains

Pump Stations

Reservoirs

Water Treatment Plant

The Water Supply Network provided by Murray River Council is used to support public health and is important to the community and economic activities of the region.

Sewer Gravity Mains

Pump Stations

Rising Mains

Sewer Manholes

Waste Water Treatment Plant

The Sewerage Network provided by Murray River Council is used to support public health and is important to the community and economic activities of the region.

Miscellaneous and Other Assets

Land Improvements Depreciable

Other Structures

Other Assets

The miscellaneous and other assets provided by Murray River Council are used to support the administration, operational and social infrastructure for the community and are an import ant part of the assets Council manages.

Waste Management (included in Miscelaneous)

Landfill

Garbage Depots

Recycling Centres

The Waste Management Network provided by Murray River Council is used to support public health and is important to the community and economic activities of the region.


3. The Organisation’s assets and their management?

3.1 State of the Assets

The financial status of the organisation’s assets is shown in Table 2.

Table 2: Financial Status of the Assets

Source: Note 9a General Purpose Financial Statements 30 June 2017

Asset Class Replacement Cost ($000)

Accumulated Depreciation

($000)

Depreciated Replacement Cost ($000)

Buildings $59,244 $27,654 $31,590 Transport $392,323 $125,106 $267,217 Stormwater $46,768 $14,747 $32,021 Miscellaneous (Including Other Assets, Other Structures, Land Improvements Depreciable & Waste)

$27,941 $9,452 $18,489

Plant & Equipment (Including Office Equip. & Furniture & Fittings) $21,154 $10,053 $11,101 Water $56,089 $17,180 $38,909 Sewer $55,724 $18,291 $37,433 Total $659,243 $222,483 $436,760

Figure 1 shows the replacement values of Council’s assets.

Figure 1: Asset Replacement Values


3.2 Life Cycle Cost

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service levels over the longest asset life. Life cycle costs include operating and maintenance expenditure and asset consumption (depreciation expense). The life cycle cost for the services covered in this Asset Management Plan is shown in Table 3.

Table 3: Life Cycle Cost for Council Services

Service Previous Year Expenditure Previous Year Life Cycle Cost ($/yr) Operations

($000) Maintenance

($000) Depreciation Exp

($000) Buildings $218 $77 $1,662 $1,957 Transport $0 $5,228 $7,054 $12,282 Stormwater $39 $150 $534 $723 Miscellaneous $375 $375 $512 $1,262 Plant & Equipment $1,042 $1,032 $1,585 $3,659 Water $1,210 $270 $1,079 $2,559 Sewer $590 $250 $1,031 $1,871 TOTAL $3,474 $7,382 $13,458 $24,314

Life cycle costs can be compared to life cycle expenditure to give an indicator of sustainability in service provision. Life cycle expenditure includes operating, maintenance and capital renewal expenditure in the previous year or preferably averaged over the past 3 years. Life cycle expenditure will vary depending on the timing of asset renewals. The life cycle expenditure at the start of the plan is shown in Table 4.

Table 4: Life Cycle Expenditure for Council Services

Service Previous Year Expenditure Cap Renewal Exp Life Cycle Exp ($/yr) Operations

($000) Maintenance

($000) ($/yr)

Buildings $218 $77 $525 $820 Transport $0 $5,228 $7,268 $12,496 Stormwater $39 $150 $1,321 $1,510 Miscellaneous $375 $375 $1,075 $1,825 Plant & Equipment $1,042 $1,032 $2,957 $5,031 Water $1,210 $270 $358 $1,838 Sewer $590 $250 $241 $1,081 All Services $3,474 $7,382 $13,745 $24,601

The life cycle costs and life cycle expenditure comparison highlights any difference between present outlays and the average cost of providing the service over the long term, If the life cycle expenditure is less than the life cycle cost, it is most likely that outlays will need to be increased or cuts in services made in the future.


Knowing the extent and timing of any required increase in outlays and the service consequences if funding is not available will assist organisations in providing service to their communities in a financially sustainable manner. This is the purpose of the AM Plans and long term financial plan.

A shortfall between life cycle cost and life cycle expenditure gives an indication of the life cycle gap to be addressed in the Asset Management and long term financial plan.

The life cycle gap and life cycle indicator for services covered by this Asset Management Plan is summarised in Table 5.

Table 5: Life Cycle Indicators

Service Life Cycle Cost ($/yr)

Life Cycle Expenditure ($/yr)

Life Cycle Gap * ($/yr)

Life Cycle Indicator

Buildings $1,957 $820 -$1,137 0.42 Transport $12,282 $12,496 $214 1.02 Stormwater $723 $1,510 $787 2.09 Miscellaneous $1,262 $1,825 $563 1.45 Plant & Equipment $3,659 $5,031 $1,372 1.37 Water $2,559 $1,838 -$721 0.72 Sewer $1,871 $1,081 -$790 0.58 All Services $24,314 $24,601 $287 1.01

Note: * A life cycle gap is reported as a negative value.

While the overall life cycle indicator for all Council Assets is 1.01, this value is not, in fact, optimal for Council as it is derived from the total average and as shown above there are several classes of assets which have a low score. These low scoring classes, Buildings, Sewer and Water, account for 25% of Councils total asset value and represent the most significant risk for Council.

Note that both the transport and stormwater figures are based on 2014/2015 asset revaluation data. As the transport and stormwater classed cumulatively account for 67% of Council’s total asset value the need for current and completed asset data for these asset classes is imperative and a revaluation is planned for the 2018/2019 financial year.

3.3 Asset Management Structure

The standing governance arrangement under NSW IPR requirements will be under an Asset Management Steering Committee (AMSC) in accordance with the following outline and charter.

The role of the AMSC includes:

• Formulating an appropriate program of;

• asset management governance

• service level reporting

• risk management reporting


• statutory compliance to achieve funded target outcomes under the asset management development programme (AMDP) identified in the asset management strategy

• Reviewing processes and providing direction on the development and implementation of an asset knowledge management strategy to ensure optimum benefit / cost / risk for technology systems, information management, business processes and reporting

• Developing, implementing and monitoring key performance indicators that link the resourcing strategy to the Community Strategic Plan (CSP)

• Developing appropriate policies to ensure effective Asset Management across the organisation that demonstrate value for money whilst controlling risk and loss

• Informing Council’s Senior Management Group (SMG) of progress and

• Recommending to the group organisational change as required

3.4 Corporate Asset Management Team

A ‘whole of organisation’ approach to asset management can be developed with a corporate asset management team. The benefits of a corporate asset management team include:

demonstrate corporate support for sustainable asset management, encourage corporate buy-in and responsibility, coordinate strategic planning, information technology and asset management activities, promote uniform asset management practices across the organisation, information sharing across IT hardware and software, pooling of corporate expertise, championing of asset management process, wider accountability for achieving and reviewing sustainable asset management practices.

The role of the asset management team will evolve as the organisation maturity increases over several phases.

Phase 1 strategy development and implementation of asset management improvement program,

Phase 2 Asset Management Plan development and implementation, reviews of data accuracy, levels of service and systems plan development,

Phase 3 Asset Management Plan operation, evaluation and monitoring of asset management plan outputs, ongoing Asset Management Plans review and continuous improvement.

The current position on Council’s asset management team is within phase 2.


3.5 Financial & Asset Management Core Competencies

The National Frameworks on Asset Planning and Management and Financial Planning and Reporting define 10 elements. 11 core competencies have been developed from these elements9 to assess ‘core’ competency under the National Frameworks. The core competencies are:

Financial Planning and Reporting Strategic Longer Term Plan Annual Budget Annual report

Asset Planning and Management

Asset Management Policy Asset Management Strategy Asset Management Plan Governance & Management Levels of Service Data & Systems Skills & processes Evaluation

9 Asset Planning and Management Element 2 Asset Management Strategy and Plans divided into Asset Management Strategy and Asset Management Plans competencies.


Council’s maturity assessment for the core competencies is detailed in Appendix B and summarised in Figure 4. The current maturity level is shown by the blue bars. The maturity gap to be overcome for Council to achieve a core financial and asset management competency is shown by the red bars.

Figure 2: Core Asset Management Maturity

3.6 Strategy Outlook

1. Council is able to fund long-term current infrastructure life cycle cost at current levels of service and available revenue based on the technical asset register (table 5) and scenario 2 data as set out in section 3.2. Note that to achieve parity under this scenario funds would need to be reallocated from asset classes with life cycle indicator scores above 1 to those classes with scores below 1. The supporting data for these calculations will be reviewed over the next 12 months to ensure adequate confidence levels.

2. Council is sustainable for the 10 year period of the asset management plans and is able to fund the maintenance of current levels of service for most assets with the exception of buildings. For buildings, a prioritised programme is needed that either rationalises or allows some buildings to deteriorate, whilst maintaining and possibly upgrading higher priority buildings. This gives Council time to plan strategies for longer term sustainability. As the condition of public buildings represent a substantial risk to Council, this review needs to be completed as a priority.

3. Ongoing analysis is needed to determine forward works and funding needed for water and sewer. For water and sewer an increase in capital renewal across the classes is required in


order to replace aging infrastructure before it reaches the end of it’s functional life. This may involve increase water and sewer charges.

4. Council’s maturity assessment for the core competencies has improved significantly since merger and core maturity is expected by late 2018 with an ongoing improvement programme in place for data, systems and governance.

5. Council must continue to invest in improved condition data and risk inspection and monitoring.

4. Where do we want to be?

4.1 Council’s Vision, Mission, Goals and Objectives

Council has adopted a Vision for the future in the Council Strategic Plan. “Murray River Council has vibrant, diverse and cohesive communities. We are supported by strong local business and primary industries. We value our beautiful waterways and natural surrounds.”

Council’s purpose or reason for existence is set out in the adopted mission statement, “Work with each of our unique communities to foster economic growth and prosperity, support community health and wellbeing, and protect and enhance our environment. Plan effectively for the future to ensure appropriate infrastructure and services that will support quality lifestyles, foster prosperity and economic growth, and provide recreational opportunities for the Murray River community (for all ages).”

The Strategic Plan sets goals and objectives to be achieved in the planning period. The goals set out where the organisation wants to be. The objectives are the steps needed to get there. Goals and objectives relating to the delivery of services from infrastructure are shown in Table 6.

Table 6: Goals and Objectives for Infrastructure Services

Goals Objectives

Built/Physical Environment - We want our built and physical environment to be well planned, connected, safe, and designed to support our communities, industries, and businesses.

- Improve and maintain our built town environments - Improve and maintain our road and transport network - Improve and maintain community infrastructure - Effectively plan for, improve and maintain water, sewer and waste

Natural Environment - We value our natural environment and expect it to be accessible, sustainable, managed, and healthy.

- Protect and manage our unique natural environment - Increase access to natural environment for recreation, amenity and enjoyment

Social Wellbeing - We want services and facilities that support an active, healthy and diverse rural lifestyle, and help us celebrate and enjoy our rich cultural heritage and connected communities.

- Enable community access to services, programs and facilities to support and enhance health, wellbeing, and community safety - Actively create opportunities to encourage and support community connectedness - Support and enable our community - Encourage skills development and lifelong learning - Foster community preparedness for natural disasters and local emergencies

Economic Growth - We need economic - Encourage and support economic development across a range


growth so that we are vibrant, strong and able to support our local townships, regional industries and future employment.

of sectors - Continue focus on strong and vibrant tourism

Leadership and Governance - Effective, democratic, open, transparent leadership and governance that plans, advocates and meets the changing needs of our community.

- An effective, efficient and progressive Council that provides leadership to the community - Engaged community leadership - Communication and collaboration identifies and meets community needs - Develop and pursue advocacy on behalf of the community

4.2 Asset Management Policy

Council’s Asset Management Policy defines the Council’s vision and service delivery objectives for asset management in accordance with the Strategic Plan, applicable legislation, community needs and affordability.

The Asset Management Strategy is developed to support the Asset Management Policy and is to enable council to show:

how its asset portfolio will meet the affordable service delivery needs of the community into the future,

enable Council’s asset management policies to be achieved, and ensure the integration of Council’s asset management with its long term strategic plans.

4.3 Asset Management Vision

To ensure the long-term financial sustainability of Council, it is essential to balance the community’s expectations for services with their ability to pay for the infrastructure assets used to provide the services. Maintenance of service levels for infrastructure services requires appropriate investment over the whole of the asset life cycle.

To assist in achieving this balance, Council aspires to develop and maintain asset management governance, skills, process, systems and data in order to provide the level of service the community need at present and in the futures, in the most cost-effective and fit for purpose manner.

In line with the vision, the objectives of the Asset Management Strategy are to:

ensure that the Council’s infrastructure services are provided in an economically optimal way, with the appropriate level of service to residents, visitors and the environment determined by reference to Council’s financial sustainability,

safeguard Council’s assets including physical assets and employees by implementing appropriate asset management strategies and appropriate financial resources for those assets,

adopt the long term financial plan as the basis for all service and budget funding decisions, meet legislative requirements for all Council’s operations,


ensure resources and operational capabilities are identified and responsibility for asset management is allocated,

provide high level oversight of financial and asset management responsibilities through Audit Committee/GM reporting to Council on development and implementation of Asset Management Strategy, Asset Management Plan and Long Term Financial Plan.

Strategies to achieve this position are outlined in Section 5.

5. How will we get there? The Asset Management Strategy proposes strategies to enable the objectives of the Strategic Plan, Asset Management Policy and Asset Management Vision to be achieved.

Table 7: Asset Management Strategies

No Strategy Desired Outcome

1 Move from Annual Budgeting to Long Term Financial Planning The long term implications of Council services are considered in annual budget deliberations.

2 Develop and annually review Asset Management Plans covering at least 10 years for all major asset classes (80% of asset value).

Identification of services needed by the community and required funding to optimise ‘whole of life’ costs.

3 Develop Long Term Financial Plan covering 10 years incorporating Asset Management Plan expenditure projections with a sustainable funding position outcome.

Sustainable funding model to provide Council services.

4 Incorporate Year 1 of Long Term Financial Plan revenue and expenditure projections into annual budgets.

Long term financial planning drives budget deliberations.

5 Review and update Asset Management Plans and long term financial plans after adoption of annual budgets. Communicate any consequence of funding decisions on service levels and service risks.

Council and the community are aware of changes to service levels and costs arising from budget decisions.

6 Report Council’s financial position at Fair Value in accordance with Australian Accounting Standards, financial sustainability and performance against strategic objectives in Annual Reports.

Financial sustainability information is available for Council and the community.

7 Ensure Council’s decisions are made from accurate and current information in asset registers, on service level performance and costs and ’whole of life’ costs.

Improved decision making and greater value for money.

8 Report on Council’s resources and operational capability to deliver the services needed by the community in the Annual Report.

Services delivery is matched to available resources and operational capabilities.

9 Ensure responsibilities for asset management are identified and incorporated into staff position descriptions.

Responsibility for asset management is defined.

10 Implement an Improvement Plan to realise ‘core’ maturity for the financial and asset management competencies within 2 years.

Improved financial and asset management capacity within Council.


11 Report annually to Council by Audit Committee/GM on development and implementation of Asset Management Strategy, AM Plans and Long Term Financial Plans.

Oversight of resource allocation and performance.

6. Asset Management Improvement Plan The tasks required to achieve a ‘core’ financial and asset management maturity are shown in priority order in Table 8.

Table 8: Asset Management Improvement Plan

Ref Task Responsibility Target Date Budget

1 Revaluation of transportation assets – collection of current meaningful data to enable forward planning for the bulk of Councils civil infrastructure and minimise risk.


30 June 2019

$150,000

2 Assessment of condition, function and capacity of council owned buildings to inform risk mitigation, enabling short term risk management and long term planning for rationalisation or service level change.


30 June 2019

$25,000

3 Public consultation to establish level of service requirements on strategic infrastructure service – particularly Buildings & Transport assets.

Whole of Council

30 June 2020

$75,000

4 Water and sewer expenditure – review capital renewal program and complete analysis of fees and charges.


30 June 2019

5 Data and system upgrade – all asset data to be loaded in to Civica Authority Asset Management module. Linkages between asset and financial modules in Civica Authority via work orders and CVR to be created. Links to Maintenance Management System developed/maintained.

Asset Systems / Finance / IT

30 June 2019

$150,000

6 Creation of long term building management plan including service level determination and rationalisation.


30 June 2021

$100,000

7 Complete the consolidation of all former Murray Shire and Wakool Shire plans, strategies and policies to create current Murray River Council asset management framework.

Asset Systems 30 June 2019

8 Link all asset renewal requirements and maintenance and operation schedules to the Long Term Financial Plan.


30 June 2020

9 Resourcing strategy development - review ongoing resourcing requirements and task allocation via PD and KPI linkages. Create an ongoing reporting and

Whole of Council

30 June 2020


feedback cycle.

10 Perform an annual review of the asset management framework, systems and plans.

Whole of Council

30 June 2019


Appendix A Asset Dimensions

Asset Name Sub Category Qty as at Valuation Date Val.

Date Water Filtered Mains 237.9km 2017 Filtered Fittings 1404 2017

Raw Mains 121.5km 2017 Raw Fittings 1334 2017 Water Pump Stations 17 2017 Water Filtration Plants & Storages 21 2017 Connections 8482 2017

Sewer Rising Mains 77.6km 2017 Gravity Mains 86.9km 2017

Manholes 1548 2017 Waste Water Treatment Plants 8 2017 Sewer Pump Stations 70 2017 Connections 4564 2017

Buildings Specialised 192 2017 Non Specialised 70 2017 Transport Bridges 93 Concrete

14 Timber (5 tendered for construction) 7 Timber closed or load limited

2015

Sealed Roads – Local 571km 2015 Sealed Roads - Regional 366km 2015 Kerb & Gutter 113.7km 2015 Unsealed Roads 1598.57km 2015 Traffic Islands & Roundabouts 74 2015 Carparks 32 2015 Footpaths 72.92km 2015 Culverts 921 2015 Stormwater Pipes 77.75km 2015 Pits 2162 2015 Pump Stations 27 2015 Detention Basins 22 2015 Miscellaneous Land Improvements (Levee Banks) 15,252m 2017 Other Structures 15,081 items (various

dimensions) 2017

Other Assets 9,577ea 2017 Swimming Pools 3 2017 Tip Assets (Landfill Sites) 4 2017 Plant & Equipment Passenger Vehicles (including

utilities) 102 2017

Heavy Plant 64 2017 Minor Plant 141 2017


Appendix B Asset Management Maturity Assessment


Murray River Council (NSW) >> Maturity Assessment ID (571)

Framework Financial Planning & Reporting Current Risk Target Risk

Element Strategic Longer Term Plan Likelihood Likely Rare

Practice Area Strategic Longer Term Plan Consequence Major Minor

Risk Score High Low

Current Score 3 Core Target 3 Advanced Target 5

Core Maturity Assessment Well Progressed

- -

Question: Does your council have an adopted strategic longer term plan?

Observations of Current Maturity Level

Implications of Current Maturity Level

Recommendations


Maturity Score Result Characteristic

5 Optimum life cycle costs are known and supported by high levels of data, information and knowledge in all key areas. Political decisions are informed by multiple service level / cost / funding model data, information and knowledge on tradeoffs for economic, social, cultural and environmental consequences.

4 Council has a Strategic Longer Term Plan (ideally 20 years - at least 10 years) that incorporates a vision, mission, values and long term service outcomes that reflects how Council plans to provide for community needs.

4 The development of the Strategic Longer Term Plan included community engagement and reflects community needs.

4 Council has a sustainable Long Term Financial Plan (ideally 20 years - at least 10years) which establishes its prudential limits on debt, revenue raising, reserve funding, asset management funding and capital works to support its Long Term Plan.

4 Council's Long Term Financial Plan is directly aligned with its Service Plans.

4 The Long Term Financial Plan clearly separates ‘recurrent expenditure’ under the categories of operations and maintenance and clearly separates ‘capital works expenditure’ under the categories of renewal, upgrade and new.

4 The Long Term Financial Plan clearly identifies the ongoing maintenance, operational and renewal impacts arising from capital works and contributed assets.

4 The Strategic Longer Term Plan includes a current position statement and discussion

4 The Strategic Longer Term Plan includes strategies for achieving objectives

3 Council has adopted a Strategic Plan (planning horizon of at least 5 years) that incorporates a vision, strategic outcomes, mission, values and service outcomes that Council wants to achieve. The minimum timeframe may vary depending on relevant State/Territory requirements.


3 The development of the Strategic Plan included elected member participation and was informed by community consultation and includes strategic objectives that address social, environmental, economic and civic leadership issues identified by the community.

3 The Strategic Plan incorporates priorities and performance measures and indicates how they will be monitored and measured.

3 Council has a sustainable LTFP covering the period of the Strategic Plan (at least 5 year) supporting the implementation of its Strategic Plan. The minimum timeframe may vary depending on relevant State/Territory requirements.

3 The Long Term Financial Plan (LTFP) has been prepared based on the resource requirements and strategic objectives detailed in Council’s Strategic Plan and Asset Management Plans.

2 Plan covers 4 year term of council

2 Draft plan is advertised for public comment

2 Plan reflects needs of community for foreseeable period

2 Plan includes vision and strategic objectives

2 Plan details what council intends to do in period of plan

1 Plan covers 1 year period



Element Annual Budget Likelihood Likely Rare

Practice Area Annual Budget Consequence Major Minor

Risk Score High Low


Core Maturity Assessment Partially Meets Requirements

- -

Question: Does your council prepare an annual budget?



Recommendations



5 Budget contains indicators of achieving council's strategic objectives

4 The Annual Budget financial ratios (liquidity, debt, underlying operating position) align with the Council’s Long Term Financial Plan.

4 The Annual Budget is prepared based on ‘service levels’ as reflected in the Strategic Longer Term Plan and contains indicators and measures to assess performance against achieving Council's strategic objectives.

4 The Annual Budget clearly separates ‘recurrent expenditure’ under the categories of operations and maintenance and clearly separates ‘capital works expenditure’ under the categories of renewal, upgrade and new.

4 The Annual Budget clearly indicates the ongoing maintenance, operational and renewal impacts arising from capital works and contributed assets.

3 The Annual Budget contains estimates of revenue and expenditure with an explanation of the assumptions and methodologies underpinning the estimates, an explanation of the financial performance and position of the Council and has been prepared based on the resource requirements and strategic objectives detailed in Council’s Strategic Plan, AM Plans and LTFP.

3 The Annual Budget reflects the Council's strategic objectives and contains a statement of how Council will meet the goals and objectives of its Strategic Plan.

3 The Annual Budget aligns with Year 1 of the LTFP and was adopted following community consultation.

3 Council’s Annual Budget includes resources to implement Strategic Plan strategies.

2 Budget is publically available and readily accessible to all interested readers

2 Budget contains estimates of revenue and expenditure for year

2 Budget includes an explanation of the council's financial position and performance

2 Budget is adopted after public advertising and consideration of comments received


1 Annual budget is available to those who ask



Element Annual Report Likelihood Likely Rare

Practice Area Annual Report Consequence Major Minor

Risk Score High Low



- -

Question: Does your Council publish an annual report?



Recommendations



5 Annual report includes results of Value for Money audit

4 The Annual Report includes a performance assessment of progress towards achieving the goals and strategic objectives of the Strategic Longer Term Plan.

4 The Annual Report includes a statement of actual performance for the year as measured against the Long Term Financial Plan, including reporting on measures of actual financial performance against short and long term financial sustainability indicators.

4 The Annual Report distinguishes between ‘recurrent expenditure’ under the categories of operations and maintenance and ‘capital works expenditure’ under the categories of renewal, upgrade and new.

4 The Annual Report includes a statement on “State of the Assets” and the financial sustainability of services provided by its infrastructure assets including any proposed adjustment to services/assets to address issues as they arise.

4 "The asset financial reporting within the Annual Report, is such based on the following:

3 The Annual Report complies with all statutory requirements including publication by the due date and is made widely available to the public.

3 The Annual Report includes independently audited financial statements that are prepared on an accrual basis in accordance with the Australian Accounting Standards.

3 The Annual Report reviews the performance of the Council against its strategic objectives and explains variations between the budget and actual results and how these variations impact on the Strategic Plan.

3 The Annual Report includes details of any major changes in functions of the Council, organisation structure and/or policy initiatives and how these changes might impact on Council’s Strategic Plan.

3 In relation to the financial reporting framework in the Annual Report, the Annual Report addresses the following issues in accordance with relevant state policies, Australian Accounting Standards and other best practice guidelines: a. Asset valuations and revaluations, b. Asset acquisitions including capitalisation policy, c. Asset disposals


2 Annual report contains audited financial statements

2 Annual report is widely available to the general public

2 Annual report reports on council's operations for the year in terms of goals and objectives for preceding year

2 Annual report contains explanation on variations between budget and actual results

1 Annual report is published each year


Framework Asset Management & Planning Current Risk Target Risk

Element AM Policy Likelihood Likely Rare

Practice Area AM Policy Consequence Major Minor

Risk Score High Low



- -

Question: Does your council have an adopted asset management policy?



Recommendations



5 Policy guides informed political decisions informed by data, information and knowledge on tradeoffs for economic, social, cultural and environmental consequences

4 AM Policy provides a reasonable basis for long-term integrated decision making by the Council and for participative decision making by the community and subsequent accountability to the community about the activities of the Council

4 "AM Policy clearly articulates the principles and financial implications upon which decisions relating to assets and their performance will be based.

4 AM Policy has organisational context and acknowledges the importance of asset management in supporting services provided by Council.

4 AM Policy identifies the need for Council reporting to be categorised in terms of operational, maintenance, renewal, upgrade and new expenditure classifications.

4 AM Policy includes audit and review procedures, specifies review dates and has a sunset clause.

3 Council has an adopted AM Policy which defines the Council’s vision and service delivery objectives for asset management.

3 AM Policy has a direct linkage with Council’s Strategic Plan and LTFP.

3 AM Policy requires the adoption of AM Plans informed by community consultation and local government financial reporting frameworks.

3 AM Policy defines asset management roles, responsibilities and reporting framework.

3 AM Policy identifies a process for meeting training needs in financial and asset management practices for councillors and staff.

2 AM Policy adopted by Council

1 AM Policy in place but not adopted by Council OR some awareness by Council of asset management policy elements and asset management principles.



Element AM Strategy Likelihood Likely Rare

Practice Area AM Strategy Consequence Major Minor

Risk Score High Low



- -

Question: Does your council have an adopted asset management strategy?



Recommendations



5 Strategy includes analysis of cost/benefit options for service delivery

5 Strategy drives asset management planning and service delivery

4 Planning for New assets and the Upgrade of assets is driven by Council's Strategic Longer Term Plan, Council’s Service Plans and Council’s Asset Management Plans.

4 Strategy details out how the councils get to where it wants to be including comparison with current situation and proposed future to highlight where strategies will need to be developed to cater for any changes

4 Strategy details where the councils wants to be

3 Council has an AM Strategy which shows how the asset portfolio can meet the service delivery needs of the community and defines the future vision of asset management practices within Council.

3 Council’s AM Strategy is linked to Council's AM Policy and integrated into Council’s Strategic planning and annual budgeting processes.

3 Council's AM Strategy documents the current status of asset management practices (processes, asset data and information systems) within the Council and what actions Council must take to implement the AM Policy, including resource requirements, timeframes and accountabilities.

2 Strategy shows what assets the council has

2 Strategy fits with the council strategic plans

1 Draft AM Strategy Prepared but not adopted by Council



Element AM Plans Likelihood Likely Rare

Practice Area AM Plans Consequence Major Minor

Risk Score High Low



- -

Question: Does your council have adopted asset management plans?



Recommendations



5 AM Strategy & AMP provide optimum value for defined service using scenarios to inform service performance. Multiple scenarios to show best value options

4 Planning for new and upgraded assets driven by Asset Management Strategy and AMP. Highly responsive to policy direction

4 Asset Management Plans include future demand projections and forecasts based on population and demographic projections.

4 Asset Management Plans are influenced by the level of community enquiry – Feedback on Customer levels of service.

4 Asset Management Plans include the financial requirements to meet target levels of service levels for at least the next 10 years for each asset class and are correlated with the data in the Long Term Financial Plan.

4 Asset Management Plans include a process for optimising decisions to obtain the best value outcome for defined levels of service utilising scenario modelling and tradeoffs.

4 AMPs include Infrastructure Risk Management Plan

3 AM Plans adopted by Council for all material asset groups in a consistent format in accordance with industry best practice (E.g. Appendix A of the International Infrastructure Management Manual (IIMM)) and are available to all relevant staff across the organisation.

3 AM Plans define which asset groups are covered by each Plan in accordance with a clearly documented Infrastructure Asset Hierarchy.

3 AMPS cover at least 10 years and

3 a. Refer to Council's AM Policy and AM Strategy;

3 b. Include all assets and document asset inventory information for the asset group/category as recorded in the asset register;

3 c. Document the asset hierarchy within each asset group;


3 d. Document the current condition of assets;

3 e. Document the adopted useful lives of assets;

3 f. Include risk assessment and criticality profiles;

3 g. Provide information about assets, including particular actions and costs to provide a defined (current and/or target) level of service in the most cost effective manner

3 h. Include demand forecasts including possible effects of demographic change and demand management plans

3 i. Address life cycle costs of assets;

3 j. Include forward programs identifying cash flow forecasts projected for:

3 i. Asset Renewals;

3 ii. New Assets and Upgrades of existing assets;

3 iii. Maintenance expenditure;

3 iv. Operational expenditure (including depreciation expense);

3 k. Address asset performance and utilisation measures and associated targets as linked to levels of service;

3 l. Include an asset rationalisation and disposal program; and

3 m. Include an asset management improvement plan.


3 n. Include consideration of non-asset service delivery solutions (leasing private/public partnerships)

3 o. Recognise changes in service potential of assets through projections of asset replacement costs, depreciated replacement cost and depreciation expense.

3 p. Include consideration of possible effects of climate change on asset useful lifes and maintenance costs

3 AM Plans link to the Council’s AM Policy, AM Strategy, Strategic Plan, LTFP and other relevant Council Policy objectives.

3 AM Plans have all been prepared in association with community consultation.

2 Separate AM Plans for each asset group - high level overall framework but not consistent

2 AM Plans in place but not regularly reviewed or adopted

2 AM Plans include all assets on asset register

2 AM Plans Include an improvement plan

1 No AM Plans, AM is Reactive and Fragmented



Element Governance and Management Likelihood Likely Rare

Practice Area Governance and Management Consequence Major Minor

Risk Score High Low



- -

Question: Does your council have good management practices linking AM to service delivery?



Recommendations



5 Common purpose and focus on service delivery with agreed nexus between funding and service outcomes.

5 Bottom up and top down feedback on performance with defined measures for service delivery and governance

4 Accountability mechanisms are maintained to ensure that Council resources are used optimally to address Council’s strategic asset management objectives, as detailed in the Asset Management Strategy and Asset Management Plans.

4 Council utilises their Infrastructure Asset Hierarchy as a basis for consistent reporting across the organisation.

4 Community levels of service and technical levels of service are monitored are reported to the Executive Management Team and Council.

4 When the Council and Executive consider the annual Capital Works Program, they prioritise works based on cost/benefit assessments (including risk) with resource implications reflected into the Long Term Financial Plan.

4 The Executive and Council are provided with an annual ‘State of the Assets’ report covering asset condition, asset performance, intervention levels, level of service monitoring and future financial sustainability options and consequences.

4 Council has an Internal Audit Committee with competency to understand advanced asset management and the Internal Audit Committee provides an independent review and annual report on asset management performance across the whole organisation to the Council.

3 Council has mechanisms in place to provide high level oversight by the Council, CEO/GM and Executive Management Team, for development and implementation of the AM Strategy and AM Plans.

3 Roles and responsibilities are clearly defined in a matrix or policy, identifying positions responsible for determining levels of service and positions responsible for managing the assets to meet service delivery needs.

3 The staff structure and position descriptions clearly define asset management functions, responsibilities and skill requirements for managing all asset classes.

3 Council has a documented process for making capital investment decisions, which is driven by Council’s Strategic Plan, LTFP and the Service Plan and explicitly details the impacts on the future operations and maintenance budgets, “Whole of Life” costs and risk management assessments.


3 Council involves all its departments in Asset Management.

3 Council has an AM Steering Committee, with cross functional representation and clearly defined and documented terms of reference, focussed on coordinating the linkages between service delivery and asset management implementation.

3 There are internal processes to promote Asset Management across Council

2 Multi-disciplinary AM Steering Committee in operation with regular meetings

2 AM improvement plan in operation

1 AM Steering activities are dependent on individual initiatives and are not co-ordinated



Element Levels of Service Likelihood Likely Rare

Practice Area Levels of Service Consequence Major Minor

Risk Score High Low

Current Score 2.4 Core Target 3 Advanced Target 5

Core Maturity Assessment Not Substantially Progressed

- -

Question: Does your Council have a defined process for determining current and target levels of service and costs?



Recommendations


5 Optimum life cycle costs known and supported by high levels of data, information and knowledge in all key areas. Political decisions


informed by data, information and knowledge on tradeoffs for economic, social, cultural and environmental consequences.

5 Documented feedback on long term cumulative impacts of decisions on service levels.

4 Council has undertaken the process of identifying the costs associated with each level of service, including the increased cost or decreased cost associated with increasing or decreasing each level of service respectively to assist in scenario modelling.

4 Target community levels of service are defined through community consultation, considering population and demographic change projections, trend analysis and customer feedback and requests.

4 Council has a communication plan to communicate information on infrastructure service delivery issues and Councils management of these issues to external stakeholders,

4 The cost of maintenance and operational activities are reported against adopted levels of service.

4 Council, in conjunction with the community, regularly reviews its community levels of service and technical levels of service, to determine the financial impact of a change in service levels. If a change occurs this is then reflected into the Asset Management Plan and Long Term Financial Plan.

3 Council has Service Plans for each of its services which have been developed in consultation with the community.

3 Council has undertaken the process of defining, quantifying and documenting current community levels of service and technical levels of service, and costs of providing the current levels of service.

3 Current and target levels of service (for both community levels of service and associated technical levels of service) are clearly defined in each AM Plan.

3 Technical levels of service are incorporated into service agreements and/or maintenance, operational and capital renewal procedures.

2 Service levels in some areas - fragmented

1 Service levels are consequences of annual budget allocation and not defined.



Element Data & Systems Likelihood Likely Rare

Practice Area Data & Systems Consequence Major Minor

Risk Score High Low



- -

Question: Does Council have the data and systems to perform asset management activities?



Recommendations



5 Annual skills and knowledge audit on capacity and capacity needed to deliver corporate plan with linked service provision plan.

5 Asset data is integrated and responds to required decision support information needed for optimised service delivery

4 Asset data is available to operations, design and planning staff across services areas when planning and undertaking works.

4 Asset renewal funding requirements and funding gaps are determined utilising up to date asset condition information and scenario modelling used to optimise life cycle costs with risk tradeoffs.

4 Asset Management systems have risk management functionality available to predict criticality of assets, record risk assessments, risk treatment, treatment costs and residual risk.

4 Council records the results of asset condition surveys and defect assessments against individual assets, linked to the componentised inventory in the asset register. Time series condition data is maintained to allow monitoring of asset performance.

4 Asset Management systems are able to predict asset life based on various assessment factors and compare actual against predicted deterioration behaviour.

4 Council's Asset Management system can generate works orders based on intervention levels and customer requests which are also linked to the asset register. It has the capacity to monitor completion targets and perform facilities management functions.

4 Council's Asset Management system is integrated with other corporate knowledge systems such as the finance, GIS and property information systems.

4 Functionality of Council's Asset Management systems includes the ability to generate maintenance and renewal programs based on available budget and future condition profiles, to generate scenario specific cash flow forecasts and to generate optimised programs.

4 Council's Asset Management systems are used to monitor asset performance over time.

4 Council has documented data standards for inclusion in Asset Management systems upon the commissioning of new (and/or modified) assets.


4 Council benchmarks its infrastructure funding gap against State and National indicators.

4 Council’s Asset Management system used to manage operations and maintenance functionality is driven by an asset knowledge management strategy, with specialised functionality for each service area to monitor operations and maintenance costs and trends.

4 Data is available and accessible to enable performance measurement and reporting against Key Performance Indicators used to measure levels of service. Processes and information are driven by an asset knowledge management strategy linked to the Asset Management Plans and the Long Term Financial Plan.

4 Data and systems allow projections which inform a range of service provision scenarios and costs. Adopted scenarios are incorporated into Asset Management Plans and the Long Term Financial Plan with an annual review in line with legislative requirements and policy papers issued by State Government

3 Council has a consolidated, integrated, accurate, up to date and complete componentised asset register with the required functionality to ensure security and data integrity, which includes all information about each asset sorted by asset group.

3 There is a common corporate data framework used across all asset groups, which is defined by Council’s Infrastructure Asset Hierarchy.

3 Council has documented repeatable methodologies to carry out consistent asset condition surveys and defect identification assessments, as documented in a Condition Rating Assessment Manual for applicable asset classes.

3 Council's asset financial reporting functionality is comprehensive and includes audit trails, depreciation calculations, reporting thresholds and records of acquisition and disposal of assets

3 Council's systems, procedures and processes allow it to benchmark its asset management performance against like Councils over time.

3 AM systems have the functionality to generate maintenance and renewal programs and produce associated cash flow forecasts.

3 Council has defined and documented procedures for determining asset replacement and treatment unit rates, which are then stored in Council’s AM system.

3 Council has a defined process for operations, maintenance, renewal and upgrade planning for its existing assets.


2 Skill & knowledge requirements determined

2 Audit completed to determine current skill & knowledge levels

1 Council has a corporate asset register supported by technical asset registers with regular validation of data in registers



Element Skills and Processes Likelihood Likely Rare

Practice Area Skills and Processes Consequence Major Minor

Risk Score High Low



- -

Question: Does council have the data & systems knowledge to perform asset data management activities?



Recommendations


5 Annual skills and knowledge audit on capacity and capacity needed to deliver corporate plan with linked service provision plan.


4 Following each Annual Budget cycle, Asset Management Plans and the Long Term Financial Plan are updated to reflect the current financial position and to maintain currency between all documents.

4 Council has a process which incorporates research into the determination of asset lives based on condition and consumption rates.

4 Council has a service rationalisation process linked to a Disposal Policy that identifies any services (and associated assets) that are surplus to community needs.

4 Council has a documented process that identifies the outcomes of service delivery reviews for input into Asset Management Plans and the Long Term Financial Plan.

4 When undertaking operations and maintenance activities there is a process to allow staff to communicate asset related issues to other service areas.

4 There is a process to analyse risks and incorporate risk mitigation strategies into contingency plans within the planning cycle.

4 Asset failures and causes of failures are recorded and analysed to identify failure trends and asset group rectification strategies.

4 Council has a process whereby community enquiry and operational response issues are linked to individual assets.

4 Council has an Optimum Decision Making framework to ensure consistent decision making. The Optimum Decision Making framework considers multivariable criteria linked to service and performance standards. There is a shift in emphasis from asset condition to service performance and value.

4 Capital Works are prioritised based on the application of business cases incorporating whole of life costing, risk and benefit quantification and all data used in decision making is documented and recorded.

4 Staff are trained in best practice operating and maintenance procedures and activities.

4 Contingency plans in place to ensure continuity of activities when staff turnover occurs


4 Asset Knowledge Management Strategy identifies data framework requirements

3 Council has a process to review and update the AM Strategy on a maximum of a 5 year cycle. The AM Strategy is formally adopted by Council.

3 Council has a process to review and update AM Plans for all asset groups on a maximum of a 3 to 4 year cycle consistent with the Council election cycle. AM Plans are formally adopted by Council.

3 Council has a process to identify operational risks, assign responsibilities and monitor risk treatment actions all recorded within a risk register.

3 Council has a process to annually review and update the financial forecasts for all asset classes and update the LTFP.

3 Council has assessed the skills and knowledge required to perform asset data management activities, conduct financial reporting valuations and develop AM Plans. Council has a current asset management skills matrix. Staff training needs have been identified and training scheduled.

3 Council has a defined methodology for assessing the Remaining and Useful Life, Residual Value and Depreciation Method of assets.

3 Council has a process to collect and record asset data into an AM system upon the commissioning of new (and/or modified) assets, including built and contributed assets.

3 Council has formal processes for the handover of assets to asset custodians/owners.

3 Council has a process to communicate the financial implications of the AM Plans to internal and external stakeholders.

3 Council provides ongoing training programs for councillors, council management and officers on key asset management topics.

2 Skill & knowledge requirements determined

2 Audit completed to determine current skill & knowledge levels


2 Documented asset data management procedures

1 Asset data management limited to plans and data required for current projects


Element Evaluation Likelihood Likely Rare

Practice Area Evaluation Consequence Major Minor

Risk Score High Low

Current Score 2.6 Core Target 3 Advanced Target 5


- -

Question: Does council have a process to evaluate progress and use of resources on implementation of the National Frameworks?



Recommendations



5 Council undertakes an annual audit within the organisation to report on trends on Triple Bottom Line/Quadruple Bottom Line service delivery and accompanying financial sustainability compared to the Strategic Longer Term Plan.

5 Qualitative Key Result Areas (KRA’s) are set for Community levels of service. KRA’s are monitored, measured and reported to Council, against time based ‘targets’.

4 Council has a documented evaluation process by which asset management improvements are identified, timeframes established, resources allocated, actioned, monitored and reported to the Internal Audit Committee and Council

4 Quantitative Key Performance Indicators (KPI’s) are set for Technical levels of service. KPI’s are monitored, measured and reported to Council against time based ‘targets’.

4 Council benchmarks its asset management performance improvement against State and National indicators and reports annually on its asset management improvement performance against set targets.

3 Council has a documented evaluation process by which asset management improvements are identified, timeframes established, resources allocated, actioned, monitored and reported to the Executive Management Team and/or CEO

3 Technical levels of service are monitored and performance reported.

3 Community levels of service are monitored and performance reported.

2 Improvement tasks are included in staff performance plans and reviews

1 No formal evaluation process