Kingscote Airport Business Case Appendices - Kangaroo Island ...

the unsealed runways has not been included in these estimates as no upgrade of these hasbeen considered.The Scenario 1 maintenance costs have been obtained directly from Kangaroo Island Counciland reflect the current budget for maintenance on the relevant pieces of infrastructure at theexisting airport.To obtain the estimates for Scenarios 2, 3 and 4 the existing maintenance budget has beenproportionally applied to the increased size of the upgraded infrastructure. For example, theexisting maintenance budget for the Scenario 1 terminal is $37,500. The terminal for Scenario 2is approximately four times larger (in terms of floor space) and therefore the budget formaintenance has been assumed to be four times that of the existing budget.The dollar values applied to the maintenance costs for each scenario are in current day valueand have not taken into account inflation over time, nor have they made allowance for majorreplacements.8.4.2 Depreciation CostsThe cost of annual depreciation of the airport assets can be calculated by defining the currentvalue of all assets and the remaining useful life of those assets. For Scenario 1, this informationhas been obtained from a Tonkin Consulting investigation into asset valuation of the Kingscoteairport.For Scenarios 2, 3 and 4 these values have been calculated by dividing the capital cost of theupgraded assets defined as part of this study by the design life of these assets. In addition, thedesign life of existing assets has been adjusted to suit their particular situation post-construction(e.g. the useful life of an existing top pavement layer can reasonably be extended where it is tobe overlaid). Scrapped assets have been have had their value written off.The following design life has been assigned in these depreciation calculations to the various newassets below: X-ray screening equipment The re-fuelling facility Humeceptor for re-fuelling apron Scenario 2 spray seal Scenario 3 spray and emulsion sand seal Scenario 4 hot mix surface New base course layers New sub-base layers Existing pavements beneath overlays20 years30 years50 years15 years15 years25 years50 years100 years100 yearsTable 8-4 shows the estimated annual depreciation costs in present day values for each scenarioas part of this study.Table 8-4ScenarioAnnual Depreciation ValuesAnnual Depreciation ValueScenario 1 $271,289Scenario 2 $479,763Scenario 3 $547,384Scenario 4 $947,896Ref No. 20120935DR1A Kingscote Airport Infrastructure Study Report 26