What depreciation?

Dear Editor,
I read with interest Mayor Simons letter in CV Review of 3 May and I am confused by his comment of “Council has acted responsibly” by not fully funding depreciation expenses. When an asset reaches the end of its life, where will the funds come from that are needed to replace this asset? I thought funding depreciation was the act of putting aside the funds that would eventually be needed to replace those assets that reach the end of their life – this often being around forty or fifty years! Will we just need to live with less assets as the years roll by?
Dr George Kriflik