Picture this.
You’re standing on a steel walkway, high in the Southern Alps. It stretches out before you, winding its way toward a breathtaking glacier that’s long been a favourite with visitors. But there’s a problem: the glacier isn’t where it used to be.
As the climate warms and the glacier slowly retreats, the council has been extending the walkway every few years, maintaining public access to that same iconic view. A simple enough fix, but it raises a surprisingly complex question for those behind the scenes.
Under our local government financial framework, how should that extension be classified?
Is it growth? An increase in level of service? Or renewal?
At first glance, it could be any of them. There’s physical construction happening — surely that’s new? But dig a little deeper, and it becomes clear why this is such an important and nuanced decision.
Why It’s Not Growth or a Level of Service Increase
This isn’t growth. Growth, in financial planning terms, refers to new infrastructure required to support increased demand — new subdivisions, growing populations, expanded facilities. In this case, the number of visitors hasn’t increased. The walkway isn’t being expanded to cater to more people; it’s just being extended to keep up with a changing environment. There’s no added capacity, just a shift in location. So growth is off the table.
It’s also not a level of service increase. That term is reserved for situations where the community receives something better than what existed before. Think of adding safety lighting, covered seating, or upgrading a gravel path to a sealed one — changes that improve quality, accessibility, or user experience. But here, the glacier viewing experience remains exactly the same. People still walk a track to reach a viewing platform. It’s no more comfortable, efficient, or enhanced. It’s just a bit longer.
The Case for Renewal
So what is it?
It’s renewal. Even though the asset is being physically extended, the service it provides hasn’t changed. The council is maintaining access to the same view — just shifting the infrastructure to keep pace with nature. That’s what renewal is all about: preserving the existing level of service, even in the face of wear, damage, or environmental change.
Understanding this distinction is more than an academic exercise. It directly impacts how the project is funded, how it’s reported, and how it aligns with broader asset and financial strategies. Misclassifying a project as growth when it’s actually renewal could affect everything from development contribution calculations to depreciation funding and long-term plan consistency.
Still Not Sure? Try These Examples
If you’re still wrapping your head around it, consider a few similar scenarios.
Replacing a worn-out playground with the same equipment? Renewal. Upgrading that same playground to include a new water play feature and accessibility elements? That’s an increase in level of service. Installing infrastructure to support a new residential development? That’s growth.
These classifications might feel subtle, but they matter — especially when you’re trying to explain your decisions to councillors, auditors, or the public.
What to Ask Yourself
The takeaway? Don’t get caught up in what’s being built. Focus instead on why it’s being built. If the aim is to maintain what already exists, even if that means adapting it to changing circumstances, it’s likely renewal. If it offers something new or better, then you’re probably dealing with a level of service increase. And if it’s to meet rising demand from a growing population, then it’s growth.
Sometimes, a glacier has to move before we stop and think about how we define progress.
Need a Second Opinion?
If you’re grappling with classification questions in your own capital programme, or want a consistent framework your team can apply across projects — we’re always happy to talk. We’ve helped dozens of councils navigate these kinds of decisions, and we’re here to support you with practical, clear advice that fits your local context.
Get in touch — whether it’s for a one-off chat, a tailored workshop, or just to bounce around ideas.
Because sometimes, the most important step in asset planning… is simply knowing where to start.
