Asset Management Plan - Newcastle City Council

Executive Summary0.4 Asset Value: Gross Replacement CostA valuation of the asset to support the Whole of Governments Accountsprocess will be undertaken in the future as an improvement action to meetthe timescales set out by Central Government in accordance with theCounty Surveyors Society guidelines. This will include a calculation of thegross replacement cost of the highway asset.0.5 Investment in the AssetAt present the major funding for the management and maintenance of thehighway asset within Newcastle comes from three main sources:• Revenue funding – for day-to-day and planned highwaymaintenance (renewal), running costs, energy etc. This is allocatedannually based on defined service standards and contract costs. It isalso dependent on the government’s grant allocation based on theRelative Needs Formula (RNF) for highways maintenance identifiedfor the Council and the Council Tax settlement.• Capital funding – for planned highway maintenance (renewal). Thisis allocated annually by government through the joint Tyne andWear Local Transport Plan (LTP).• Other specific allocations may be made from time to time.Newcastle City Council has been successful in attracting investmentfrom other sources of third party funding such as the SingleRegeneration Budget (SRB), European Regional Development Fund(ERDF), Private Developer contributions and Private FinanceInitiatives (PFI).0.6 Levels of Service and Service OptionsThe introduction of measurable and quantifiable Levels of Service (LoS)demonstrate prudent long-term management of the asset and meetinguser aspirations is a key element in the adoption of an asset managementapproach.The Levels of Service describe the ’quality of the service provided by theasset for the benefit of the customer’. These are composite indicators thatrepresent the social, economic and environmental goals of the community.Levels of service are therefore the manner by which the Council, ashighway authority engages with the customer and reflect the customer’sinterests in terms that can be measured and evaluated.Initially the Levels of Service developed in this HAMP will be used for:• identifying the total costs and benefits of the services offered.• to assist with service prioritisation across the range of highwayassets.• to create service standards as a measurement for performance.14