ARV has been tasked with developing a pathway to financial sustainability for the resorts by October 2025. While ARV is considering a range of factors that will influence the determination of this pathway, key inputs will be costs associated with services and assets, and associated stakeholder charges.
All the resorts are responsible for a similar range of services, however the way in which these services are delivered and how much they cost to implement varies. ARV is currently undertaking an internal service review across the mountains to contrast and compare the levels of services provided, the service outcomes being achieved, and the cost of each service.
These costs will include consideration of any assets required to deliver the service. To this effect, ARV is concurrently developing an organisational asset management strategy, which includes developing associated condition assessments and category plans for all asset classes in every resort. In addition to informing service costs, this will better enable ARV to manage assets more effectively through their full asset life cycle, including planning for appropriate maintenance, renewal and upgrade programs.
Both of these projects are scheduled for completion by the end of 2024. By year end, ARV will also have one year’s worth of financial data consolidated across the resorts, within a singular finance system and common chart of accounts, facilitating comparable financial analysis across the resorts.
All of these projects combined will then enable ARV to commence an additional body of work – a review of service charges. This includes consideration for how services can be scaled to increase or decrease service charge costs, as well as consideration for the methodology that is to be applied to how fees are apportioned and charged. This is a process that will involve engagement with stakeholders, primarily via the Stakeholder Consultative Committees in each resort, whose members are representative of key rate payer and commercial entities in-resort. This work is scheduled to commence in early 2025 and is anticipated to be completed by May 2025 to feed into the 2026 budgeting process.
Page last updated: 17/06/24