page 1 of 174 · the marketing, tourism and major events program of shifting $0.5 million in grants...

F I N A N C E A N D G O V E R N A N C E C O M M I T T E E R E P O R T

Agenda Item 3.1

20 June 2006

CONSIDERATION OF SUBMISSIONS AND MATTERS ARISING FOR THE PROPOSED 2006/2007 ANNUAL PLAN AND BUDGET

Division Finance

Presenter Joe Groher, Manager Financial Services

Purpose

1. To report to the Finance and Governance Committee on:

1.1. public submissions in response to the proposed 2006/2007 Annual Plan and Budget in accordance with the requirements of the Local Government Act 1989; and

1.2. other matters that require noting and approval in rela tion to the 2006/07 Annual Plan and Budget.

Recommendation

2. That the Finance and Governance Committee, after considering all written submissions and hearing from anyone wishing to be heard in support of their submission, recommend that Council:

2.1. for the reasons detailed in this report, adopt the proposed 2006/2007 Annual Plan and Budget with the updated grant schedule detailed in Attachment 2, as amended by;

2.1.1. the transfer of $100k from Melbourne International to the Business Development Fund in accordance with Councillor’s decision from the budget meeting on 6 May 2006;

2.1.2. an increase of Community Service grants by $50,000;

2.1.3. the transfer of $250,000 from the FINA Swimming Grant to operating expenditure for a review of the Italian, Greek and Chinese precincts and the implementation of possible responses to the outcome of the review;

2.2. note that public notice will be given of Council’s decision in accordance with section 130(2) of the Local Government Act 1989; and

2.3. advise each of the submitters of the Council’s decision in relation to this matter and the reasons for the decision; and

2.4. in accordance with section 4 of the Cultural and Recreational Lands Act 1963, determine that the rates identified in Attachment 1 in respect to recreational lands are reasonable having regard to the services provided by the Council in relation to such lands and having regard to the benefit to the community derived from such recreational lands.

of 174

2

Issues

3. At the budget meeting held on the 6 May 2006 with Councillors it was agreed to allocate $100,000 to the Business International Program and $100,000 to the Business Development Fund. In the course of preparing the Budget papers the funding $200,000 was inadvertently allocated to Business International Program, rather than both programs.

4. The recommendation included in 2.1.1 reflects the Councillors position at the meeting of the 6 May 2006 and has no financial impact on the rest of the budget. It is simply a reallocation of the funds between programs.

5. The Cultural and Recreational Lands Act 1963 allows for a rate to be levied on defined “recreational lands” in lieu of the rates that would otherwise be payable under the Local Government Act 1989 (“the Act”). For the 2006/07 budget, the total amount levied is $290,000. The budget papers included the total amount of the rate but for the purpose of resolving the rate should have included the detailed listing for overall approval. Attachment 1 provides details by property.

6. As background, Section 4 of the Cultural and Recreational Lands Act 1963 requires the Council to levy rates based upon “such amount as the municipal council thinks reasonable, having regard to the services provided by the municipal council in relation to such lands and having regard to the benefit to the community derived from such recreational lands”.

7. Increases in the charges are generally consistent with the increases in Council rates since last reviewed at the 2004 revaluation.

8. At the Finance and Governance Committee Special meeting of 25 May 2006, Council requested a report prior to the finalisation of the 2006/07 budget process on the impact on the Marketing, Tourism and Major Events program of shifting $0.5 million in grants and subsidies to Community Grants.

9. Attachment 22 is a briefing note prepared by the Director of Marketing, Tourism & Major Events which supports recommendation 2.1.2 and 2.1.3 included in this report.

10. The proposal contained in the briefing note basically recommends a reduction in the grant to FINA of $250,000, provides an allocation of $250,000 to a review of the Italian, Greek and Chinese precincts and the implementation of possible responses to the outcome of the review. In addition a reduction in the projected budget surplus by $50,000 is also recommended to provide for a CPI increases in grants and sponsorships in Assets & Services.

Time Frame

11. The Council considered the proposed budget on 30 May 2006. At the special meeting of the Finance and Governance Committee on 20 June 2006, the Committee will consider submissions received on the budget. The budget is then to go to Council for adoption on 27 June 2006.

12. Under the Act, Council is required to prepare and adopt a budget for each financial year.

Relation to Council Policy

13. The budget submission process has been conducted in accordance with Council policy.

Finance

14. The financial implications are contained in the body of this report.

of 174

3

Legal

15. The process outlined in the report accords with the requirements of the Act and the Local Government (Finance and Reporting) Regulations 2004.

Background

16. The proposed annual plan and budget for the 12 month period 1 July 2006 to 30 June 2007 comprising the Income Statement, Statement of Cash Flows, Balance Sheet and Statement of Council Works Program was presented to Council for approval on 30 May 2006. At that meeting Council delegated power to consider submissions to the Finance and Governance Committee.

17. Following approval, the proposed annual plan and budget was advertised in The Age and Herald Sun newspapers on 1 June 2006. Copies of the proposed annual plan and budget were made available at Melbourne City Council - Town Hall (Ground Floor Front Desk), North Melbourne Library, East Melbourne Library, City Library, Carlton (Baths) Community Centre, and Council’s Website. At the conclusion of the submission period on the 16 June 2006, 19 submissions had been received of which 2 have requested to address the Committee in person.

Submissions and Management Comment

Submission from Carlton Business Association Inc (Refer Attachment 3)

Synopsis of submission

18. Ms Connie Paglianiti from the Carlton Business Association Inc ‘strongly protests against Parking Meters being installed in Lyon Street’, and ‘ request that this subject is once and for all taken off any future discussion.’ Ms Paglianiti raised a number of issues with regard to the introduction of parking meters in Lygon Street which are addressed in the management comment which follows. The full content of the issues is contained in Attachment 3 of this report.

Management comment

19. Excluding GST costs, Council has only increased short term parking fees, outside the CBD, by 82% over the past 9 years; not the 1000% quoted by CBAI in the last 9 years.

20. Whether a visitor to a shopping centre comes from near or far, the lack of enforcement of parking restrictions will be the major determinant in how long a motorist parks in a limited parking space. Prior to the introduction of parking meters in Errol Street visitors and workers parked for lengthy periods, this denied other motorists an adequate opportunity to park in the street.

21. The level of public transport to Errol Street is quite limited with only one tram route servicing the street. Lygon Street is serviced by 4 bus routes and nearby Swanston Street is serviced by 9 tram services.

22. Errol Street has parking meters in surrounding streets such as Queensberry Street, Victoria Street, Leveson and King Streets.

23. The demand for parking in the Carlton/Lygon/Melbourne University/Royal Women’s Hospital area is greater than the demands placed upon the parking areas surrounding the Errol Street shopping strip.

of 174

4

24. Parking meters in Lygon Street would assist in improving parking opportunities for visitors and could allow the one hour restriction be increased to 2 hours thereby improving parking opportunities for visitors to restaurants and cafes in the area.

25. No amendment to the budget is recommended.

Submission from Parkville Association (Attachment 4)


26. Mr Tim Todhunter, President of the Parkville Association has requested that funding be provided in the 2006/07 budget to:

26.1. ‘impose a 24 hour truck bank immediately (currently 12 hrs only) in Gatehouse Street, signage only at minimal cost to the City of Melbourne; and

26.2. develop a traffic management plan to remove through-traffic from South Parkville and in particular from Gatehouse Street.’

Management comment

24 hour truck ban

27. Council has long held the view that a 24 hour truck ban should operate in Gatehouse Street. Council first installed such a ban in the late 1970’s, however following vehement opposition from the Transport Workers Union and the Victorian Road Transport Association this ban was removed within a few days.

28. Council has since, with VicRoads approval, introduced an 11 hour evening truck ban Monday-Friday and an all day ban on Saturdays and Sundays in 1997. While Council would have preferred a 24 hour ban, VicRoads was not willing to approve a day time ban.

29. In order to achieve a 24 hour truck ban a detailed report and submission must be made to the VicRoads Truck Operation Committee. This is an extensive exercise requiring considerable staff resources. In order to expedite the report and submission in a timely manner this would require the engagement of consultants to undertake the basics survey and reporting components of the task. It is estimated this would cost in the order of $15,000 to complete.

30. The introduction of a 24 hour truck ban accords with Council’s policies and strategic directions but has not been identified as a high priority item in the Council plan.


Remove through-traffic from South Parkville and in particular from Gatehouse Street

32. Council’s recent traffic engineering studies into possible treatments designed to drastically reduce through traffic in Gatehouse Street indicated that the most appropriate treatment was to partially close Gatehouse Street at the outer separator in Flemington Road. While the studies, carried out in 2004, and indicated that such a treatment was feasible there is a significant diversion of traffic movements onto the surrounding arterial road network managed by VicRoads and the local street network in North Melbourne.

33. Subsequent discussions took place with representatives from VicRoads, Royal Childrens Hospital (RCH), Royal Melbourne Hospital, North and West Melbourne Residents Associa tion and Parkville Association.

of 174

5

34. VicRoads staff stated that they had serious concerns about the impact the partial closure would have on the arterial network and without a further more detailed study being undertaken they would not support or approve any measures designed to downgrade the through traffic role of Gatehouse Street.

35. The North and West Melbourne Residents Association rejected the proposal as they would not accept increased traffic volumes North Melbourne’s local street network. The Association was of the opinion that a much more detailed study involving extensive origin and destination surveys should be undertaken before it would even consider reassessing its position.

36. It should also be stated that a number of Parkville residents were also concerned about the impact the proposed treatment would have on their ability to conveniently and safely access North Melbourne and the CBD.

37. While the hospitals recognised the proposed closure’s objectives the RCH did state that any restriction on vehicular access for ambulances and cars would need to be assessed with against alternative access provisions and the future operational needs of the hospital.

38. A further complication has since occurred with the enactment of the Road Management Bill which has given VicRoads complete power over all arterial roads including Flemington Road, where the partial closure of Gatehouse Street would be implemented. The Road Management Act subsequently eliminates Council’s ability to implement the closure under the Local Government Act as any closure now requires VicRoads to undertake the necessary legal procedures.

39. Consequently to progress the matter, Council would need to undertake a more detailed study that includes a comprehensive Origin Destination Study and further assessments of the impact diverted traffic will have both on the arterial and local road networks.

40. It is estimated that these studies and follow up consultation processes with the various stakeholders could cost in the order of $80,000. It is also considered that following the completion of these studies it will still be extremely difficult to gain the approval of VicRoads or the support of the North and West Melbourne Association.

41. If the study is finally approved the ameliorative road works necessary to increase the arterial road network and protect the local road network could cost in the order of $500,000 - $1,000,000.

42. Management still support the completion of a study into Gatehouse Street however at this time relative to other program initiatives, it is not a priority on safety or traffic management criteria. While the Gatehouse Street situation isn't ideal, there are no safety issues at large and it is more an amenity issue.

43. Given the above comments and the pending development of the Royal Children’s Hospital and its impact on Gatehouse St, no change to the budget is recommended.

Submission from North Melbourne Language & Literacy Inc (Refer Attachment 5)


44. Ms Joanne Goodman, Manager, North Melbourne Language & Literacy Inc (“NMLL”) has requested a grant of $75k for NMLL for:

44.1. ‘Core Funding needed (for Information Disseminating, Assisting with Referral, Counselling & Administration) - $45,000 annually’; and

of 174

6

44.2. ‘Community Learning Partnership program to continue. This funding finishes at end of 2006, to continue we need $30,000 annually’.

Management comment

45. Previous funding – Based on a request for funding in September 2004, Council provided a grant through Community Services of $15,000 in May 2005 and an additional $8,090 in June 2005.

46. NMLL is situated in the municipality of Moonee Valley, however the program participants live in Moonee Valley and Melbourne. Moonee Valley does not provide a grant to this organisation.

47. The focus and nature of this service is consistent with the Life Long Learning model of service delivery currently being developed by City of Melbourne.

48. Council is simultaneously supporting an application by North Melbourne Literacy and Language Inc to the Department of Victorian Communities for the Community Learning Partnership Program [$30,000].

49. It is recommended that North Melbourne Language and Literacy Inc apply for next round funding through the Community Services grant program.


Submission from Friends of the Elms Inc (Refer Attachment 6)


51. Jo Grigg, President of Friends of the Elms Inc has requested funding for the Fitzroy Gardens Master Plan and ‘reviewing the current Master Plan’.

Management comment

52. The Friends of the Elms have lodged a submission as part of the 2006/07 Budget process requesting funding for the preparation of a masterplan for Fitzroy Gardens.

53. Master plans, developed with extensive community involvement, form the basis to ongoing management of parks and gardens. They guide all capital investment in parks development. Also as the Fitzroy Gardens are listed in the Heritage Register, Council is expected to prepare a strategy plan to ensure and enhance its heritage values.

54. The current Master Plan was developed in 1996 and became obsolete and unable to be implemented when the Gardens became listed on the State Heritage Register as many of its recommendations cannot now be implemented.

55. A new Master Plan (and companion Conservation Management Plan) is now required to address a number of obligations including:

55.1. the future of the tourism precinct - Cooks Cottage, Conservatory, former caretakers house and reduction of the footprint of the depot;

55.2. possible redevelopment of the Pavilion Café; and

55.3. possible relocation of La Trobe’s Cottage to the Gardens.

of 174

7

56. The funding required is made up of:

Heritage investigation $15,000 City Projects costs $15,000 Consultants $30,000 Documents – Issues Paper $15,000 Conservation Management $15,000

Total $90,000

57. The issue of most concern to the Friends is the management and maintenance of elms in the Gardens. The particular issue raised relates to the replacing of elms in the central avenue. The current masterplan recommends the realignment of the central avenue which would impact on the elms. As the 1996 masterplan is not currently being implemented there is no immediate risk to these elms.

58. The process for the Masterplan would be similar to that recently undertaken for Fawkner Park.

59. Those funds of $90,000 are considered for the 2007/08 Budget.

Submission from Mr Anthony van der Craats – (Refer Attachment 7)


60. Mr Anthony van der Craats (“AvdC”) has made a number of requests and observations in his submission. A précis of each request and observation together with the management comment is provided in the following paragraphs.

61. AvdC Comment - Undisclosed Costs in Councils Budget - ‘That the city of Melbourne disclose and publish without further delay the costs associated with:

61.1. In-house Catering;

61.2. cost of providing free alcoholic drinks to Councillors, Staff and Guests;

61.3. the maintenance, depreciation, fuel costs and any fringe benefits tax paid associated with the Lord Mayor and Deputy Lord Mayors Limousines; and

61.4. that the Council stops avoiding disclosure of these costs and publish them in association with the city Councils financial statements.’

Management Comment

62. The Budget document is prepared based on the industry standard Best Practice Guide issued by the Institute of Chartered Accountants in Australia and supported by LGPro, MAV and FinPro.

63. The content and format of the Best Practice Guide recommends the use and provision of information in a balanced manner to allow the stakeholders to assess whether the strategic objectives of the Council are being included in the budget and what the impact of these are on the financial performance and position of the Council.

64. The level of detail proposed by AvdC is not recommended in the Best Practice Guide and would provide a level of detail not necessary for the stakeholders to assess the proposed budget and its implications.

65. No Amendment to the Budget is recommended.

of 174

8

66. AvdC Comment - Councillors and Staff Overseas Travel -‘That the Council publish, as recommended by the Council Auditors, a budget for Staff and Councillor’s overseas and interstate travel expenses and that the budget allocation and comparison be presented in all expense reports.’

Management Comment

67. A budget for overseas and domestic travel is prepared for Council staff and Councillors at a lower level than reported in the draft 2006/07 Annual Plan and Budget. In line with the Best practice Guide referred to above, it is not considered necessary to publish this level of detail in the Budget report.

68. The Council Auditors in October 2004 prepared a report to the then Finance Corporate Services and Governance Committee relating to the Travel Register and following concerns raised by AvdC. The report clearly indicated that Council information reported in the City of Melbourne’s (CoM’s) Travel Register and Councillor expenses reported on the internet are consistent with the requirements of the Local Government Regulations and CoM’s Councillor Expense and Resource Guidelines.

69. Both the CoM's 'Councillor Travel Guidelines' and Regulation 11 of the Local Government (General) Regulations 2004 do not require Council to establish and publish a budget for travel expenses.

70. No adjustment to the budget is recommended.

71. AvdC Comment - Councillors and Staff Overseas Travel - that the City of Melbourne includes a breakdown of the costs recorded in its travel register to as to show accommodation, travel and sundry expenses as opposed to providing a general overall cost figure.

Management Comment

72. Information reported in the CoM's Travel Register is consistent with the requirements of Regulation 11 of the Local Government (General) Regulations 2004. The Regulations only require the total cost of the travel to be recorded. It is not a requirement to record a break-down of the travel expenses.


74. AvdC Comment - Councillors and Staff Overseas Travel - That the Council's Travel Register include a reference ID so as to avoid and limit misuse and unauthorised deletions and or alterations for the travel register.

Management Comment

75. Information reported in the CoM's Travel Register is consistent with the requirements of Regulation 11 of the Local Government (General) Regulations 2004. There is no requirement to record a sequential reference number for each Travel Register entry.


77. AvdC Comment - Undergrounding of Melbourne Power Supply - funds be allocated for the ‘undergrounding of Melbourne Power Supply’.

of 174

9

Management Comment

78. Management is not aware of any obligation arising from the sale agreement of Council’s Electricity Supply Department with respect to the placing of overhead electrical assets underground within a 20 year period.

79. The undergrounding of powerlines in the municipality is seen as desirable with respect to improving the amenity and safety of the streetscape. When Council owned the electricity assets it undertook a number of undergrounding projects in some residential areas.

80. The overhead electrical assets are now owned by CitiPower who are not prepared to carry out such works unless there was a cost saving to be achieved. If such projects were to be funded by Council, this would be effectively a grant from Council to CitiPower, and expenditure by Council on its own assets is seen as a higher priority.

81. Another option is for property owners to contribute towards the costs of placing cabling underground, however this would require a separate charge scheme to be developed which may result in objections being received. In addition, the conversion of the connection to individual properties from overhead to underground may result in the need to completely rewire some buildings, at property owners’ expense, before the new connection can be approved by an electrical inspector.


83. AvdC Comment - Creative Accounting - clarification on whether the ‘proposed budget provide and allow for…. costs …shifted from one budget to another’… in relation to the agreement the City of Melbourne has with the State Government in relation to the funding of ‘various cultural festivals, such as Moomba’.

Management Comment

84. There is no “creative accounting” in the draft 2006/07 Annual Plan and Budget. This Budget and previous budgets are developed based on Council’s priorities, Key Strategic objectives and Activities and initiatives outlined in the Council Plan.

85. From time to time major events or high priority programs will demand a higher proportion of Council resources in any one year; examples of this are the CH2 project and Commonwealth Games. The key objective is to ensure that in the longer term Council’s financial sustainability is maintained and can meet future service requirements. The draft 2006/07 Annual Plan and Budget is financial responsible and proposes an underlying surplus of just over $607,000.


87. AvdC Comment - Staffing Costs - the increase in staffing costs being higher than the increase in the cost of external services to the City of Melbourne.

Management Comment

88. There seems to be no specific question in the matter raised however, the following is provided to assist clarify the position.

89. The increase in employee costs of $4.177 million reflects the increase in the EBA of 4.5% and additional costs incurred through complying with the City of Melbourne Award and the additional positions required to meet service needs and programs in the budget. Overall the budget provides for a reduction of 5 Equivalent Full Time (EFT) positions.

of 174

10

90. Material & Services expenditure is budgeted to increase by $3.112 million. The increase is largely the result of an increase in contract costs including library services, waste removal, street cleaning, maintenance of the parks and civil infrastructure and the provision of the Tourist bus. A net reduction in outsourced professional services of $0.785 million is also included in the budget.

91. It is not appropriate to compare the staffing costs with external services as the volume and number of service delivery varies considerably between the two.


93. AvdC Comment - Rate Base & Property Valuations - the benefit the Council has received from the increase in the rate base and property valuations.

Management Comment

94. There seems to be no specific question in the matter raised, however the following is provided to assist clarify the position.

95. In determining the 3.8% average rate increase in the draft 2006/07 Annual Business Plan and Budget the increase in property valuation has been partially offset by a reduction in the rate in the dollar.

96. The increase in the rate base is not a windfall gain but rather a reflection of more properties and residents moving into the City and consequentially resulting in an increase in the demand on Council services.

97. No comment is made with respect to the reference to the increase in indirect taxation. It is not clear from the statement made how this increase is reflected in the budget.


99. AvdC Comment - The Long Term Parking Levy and increase in on-street parking - his concerns that funding from the Long Term Parking Levy is being used by the City Council ‘as a means of funding its general revenue budget’.

Management Comment

100. The draft 2006/07 Annual Plan and Budget includes proposed expenditure which fully allocates the $5.0 million towards transport initiatives. The projects proposed in the budget are consistent with the report adopted by Council in February. The funding in the draft budget has been allocated as follows:

Capital Projects

• Manningham St Pedestrian & Bicycle Bridge $500,000;

• North Bank Bicycle & Pedestrian Upgrade $660,000;

• Flinders Lane Street Scape $1,600,000; and

• Bicycle Works - $770,000.

of 174

11

Operating Projects/Activities

• Tourist Bus $750,000; and

• Feasibility Studies:

Ø Bus Loop $100,000;

Ø Cycle End Trip $20,000;

Ø Tram loop $100,000; and

• Behavioural change/monitoring and travelsmart programs $500,000.

101. It is expected that the outcome of research information contained in this category will assist in understanding the impact the policy is having on retailers and small business.

102. With regard to the increase in parking fees, there is no increase in on or off street parking fees in the draft 2006/07 Annual Plan and Budget.


104. AvdC Comment - Working Capital ratio - his concerns that the working capital ratio has declined over the last 10 years ‘indicating that the City of Melbourne has been spending the proceeds of the forced sale of City’s assets and investments’.

Management comment

105. The working capital ratio (Current Assets/Current Liabilities) is reported in section 8.1.3 which gives a comparison of the ratio over four years. The ratio in 2003/04 was at 4.64 compared to an expected 2.63 in 2006/07. This is due to the high levels of cash on Councils books in 2003/04 following the sale of the Queen Victoria Hospital site which were allocated to the CH2 project. The ratio of 2.63 is more indicative of a normal liquidity position for this Council and is greater than 2:1 indicating a strong liquidity position. In addition it is comparable to other metropolitan councils.


Submission from Cr Ng Referred from Mr Stuart Davie (Refer to Attachment 8)


107. Mr Stuart Davie, Chairman of the Body Corporate for 302-308 Flinders Lane has requested to have Bligh Place paved and the laneway beautified in some way.

Management comment

108. Bligh Place runs north off Flinders Lane west of Elizabeth Street. Abutting the lane are cafes and restaurants, and also residential apartments, where Mr Stuart Davie lives.

109. Approx 3 to 4 years ago Council resurfaced the lane, using asphalt which was specially designed to resist damage caused by the placement of tables and chairs on the surface of the lane. This was the first time Council had used such an asphalt product, and the results have been satisfactory. In more recent years Council has also upgraded the lighting in the lane.

of 174

12

110. The asphalt surface of the lane is still in good condition and no immediate works are warranted. There are two small areas of reinstatement in the lane where service authority works have been carried out but no action is required to these areas. Council’s bluestone policy, adopted in 2004, noted that Bligh Place was an appropriate lane to be reconstructed in bluestone paving, to complement the activities in the lane.

111. Council is currently developing a 10 year works program, and the paving of Bligh Place has been tentatively listed to be funded in 2008/09.

112. There would be no objection if the project was brought forward and considered as a priority project for the 2007/08 financial year.

113. On the matter of beautification, Council Officers will contact the local stakeholders to develop a beautification plan that will involve the participation of stakeholders and the City of Melbourne.


Submission from Janine O’Connell and Joseph Clarke (Refer Attachment 9)


115. Janine O’Connell and Joseph Clarke have congratulated the Melbourne City Council on a sound financial result, however they expressed disappointment that childcare is not evident as one of Council’s top priorities. They have asked the CoM to utilise its resources to support families by urgently acquiring and developing new childcare centres and continuing its tradition of leadership in childrens’ services through efficient, centralised management of quality childcare services.

Management comment

116. Council is required to provide a range of services, facilitie s and programs and in doing so, develop a budget which balances the various demands upon the Council’s finite resources. With regard to Council's commitment to and continued role in the provision of childcare:

116.1. Council has committed to the provision of 200 additional childcare places by January 2008 at significant cost. Work on providing these places at both existing and proposed facilities is well underway. A number of sites are currently being considered for acquisition and the development of new childcare facilities. The budget also includes carry forward capital expenditure of $3.6m in this respect;

116.2. Council is committed to the provision of affordable and accessible community based childcare, with its preferred management arrangement being a community based committee of management for Council owned facilities, where capacity exists, as a means of community engagement and empowerment; and

116.3. Council supports the seven existing Council owned facilities in a range of ways, including the maintenance and upgrade of all centres, as well as providing the facilities that are managed by the community at a nominal rental.

117. No amendment to the Budget is recommended.

of 174

13

Submission from Parks Victoria (Refer Attachment 10)


118. Mr Chris Hardman the Acting Regional Manager City & Bays of Parks Victoria has requested that Council continue to support the Yarra River Shuttle Service by way of a $100,000 contribution in cash and kind.

119. Mr Hardman has requested to address the Committee.

Management comment

120. City of Melbourne's $100k financial support of the Yarra River Shuttle Service in 05/06 was a positive initiative, aligning with Melbourne 2006 Commonwealth Games city activation initiatives, as well as City of Melbourne's ongoing marketing programs to position the city as an active waterfront destination.

121. Parks Victoria currently derive significant income from ratepayers in the City of Melbourne through the annual Parks charge imposed as part of ratepayers water charges.

122. In light of the one off nature of the event on the Yarra during the Commonwealth Games and the existing derivation of significant income from City of Melbourne ratepayers no additional funding is recommended to the budget.

Submission from North & West Melbourne Precinct Association (Refer Attachment 11)


123. Mr Gary Chapman, President of the North & West Melbourne Precinct Association has expressed concerns with not receiving funding from the Council.

Management comment

124. An amount of $133k in total has been included in the 2006/07 budget in support of Community information and support Grants. This submission should be referred to the Community Services Grant program.


Submission from TEAMelbourne (Refer Attachment 12)


126. Mr Steve Harris Chief Executive, Melbourne Football Club is seeking ‘the City’s reconsideration of becoming a foundation partner’ of TEAMelbourne through initial funding of $100,000.

127. TEAMelbourne is a partnership between Tourism Victoria, Major Events, MCVB, Melbourne and Olympic Parks, MELBOURNEfc, Melbourne Storm, Melbourne Phoenix, Melbourne Tigers and Melbourne Racing Club.

Management comment

128. City of Melbourne recognises the benefit and positive contribution of TEAMelbourne in promoting Melbourne and Tourism across the State and in the city, however there is no capacity within the existing budget allocation to provide further funding in preference to other priorities.

of 174

14


Submission from Residents 3000 Inc (Refer Attachment 13)


130. Mr Peter Matthews from President Residents 3000 has requested more information. No request for additional funding has been received. The information sought is as follows:

130.1. details of the maintenance and capital works budget for the World Heritage Carlton Gardens;

130.2. the progress on implementing the Carlton Garden Master Plan during 2006/07;

130.3. details of the work being done to increase the availability of Parks and Gardens for ‘PASSIVE’ recreation;

130.4. the intent of the reference in the budget papers to ‘strengthening relationships and consultation between Councillors and Stakeholders. Will the Council advocate to the State Government include the restoration of Ward Councillors?

130.5. the intent of the Place Management program for 2006/07;

130.6. the intent of the work in the area of Traditional Owners and Indigenous community issues;

130.7. request for regular consultations on easing bike and pedestrian movements;

130.8. the amount budgeted for all international travel and activities; and

130.9. whether it is possible to ‘get rid of granitic sand in the City Square and from the base of street trees and elsewhere.’

Management comment

Carlton Gardens

131. The projects identified in the Carlton Gardens Master Plan are being progressively implemented.

132. The proposed capital works budget for Carlton Gardens is:

North Gardens

N.W Corner fence & Plinth Works $150,000 Carlton Gardens Depot Construction Works $350,000

South Gardens

Southern Forecourt Parterre Beds $500,000

133. From the asset renewal budget, it is proposed to plant 103 trees throughout the Gardens and replacement of paths in the North Gardens to the value of $150,000.

134. The maintenance of the gardens, including the trees, is part of the Open Space and Tree contracts with CityWide Service Solutions. The budget for the services in these gardens are not separately identified within the contracts but would be estimated to amount to several hundred thousand dollars annually.

of 174

15

Passive recreation in Parks & Gardens

135. It is proposed that the draft Open Space Strategy will be presented to Council later this year for consideration.

136. It is proposed that capital works to the value of $8,665,000 will be undertaken in parks and gardens in 2006/07. This figure does not include works to buildings and pavilions in parks.

137. The master plans for Carlton Gardens, Royal Park, Holland Park and Fawkner Park will be implemented from these capital works funds. The vast majority of the recommendations within the master plans relate to measures to improve the passive recreation aspect of these parks and gardens. Council recognises the important role that open space areas provide for passive recreation and balances this with the use of these spaces for sporting activities and events.

Strengthening relationships with the State Government

138. Care is taken in the assessment and selection of consultants/facilitators and they are chosen on the basis of specialist skills, competence and experience required for the particular type of consultation being undertaken.

139. Council welcomes comment from stakeholders about the effectiveness of the consultation undertaken.

140. Comments regarding the State Government's decision to abolish Ward Councillors are noted but are beyond the scope of the budget submission process.

Place Management program

141. The Place Management program became fully operational in May 2005. The role of the Place Management program is to realise the potential of the place and its people through:

141.1. complex issues management;

141.2. community building and engagement; and

141.3. influencing how a place looks and functions.

142. The role of the Place Management program is still evolving and priorities for 2006-07 are as follows:

142.1. supporting the development of a more integrated planning and service delivery framework that is incorporated into planning, budgeting and reporting cycles;

142.2. converting the detailed area knowledge of the Place Managers into formal inputs into the 2007-08 budget and business planning cycles;

142.3. development of area or place plans so that the community can better understand issues, plans, strategies, events and Council commitments in their areas;

142.4. developing a stronger sense of community and empowerment; and

142.5. further refinement and definition of the role of Place Management.

of 174

16

Indigenous Community Issues

143. Council has undertaken a range of initiatives that reflect its broad commitment to the Indigenous community and these have included:

143.1. hold City of Melbourne, City Indigenous Working Group meetings comprising representatives from Indigenous and non Indigenous service providers who cover the city;

143.2. provide annual financial support and maintain close links with Reconciliation Victoria;

143.3. liaise with Aboriginal community organisations and groups on key issues;

143.4. developed and regularly use an Acknowledgement of Traditional Owners;

143.5. regularly liaise with Traditional Owners on a range of issues including the use of Aboriginal language and names for sites;

143.6. developing a Indigenous Social and Economic Development Strategy;

143.7. developing a Indigenous Cultural and Heritage Framework;

143.8. developing Cross Cultural Awareness Training Programs for Councillors and Staff;

143.9. developing an Aboriginal and Torres Strait Islander Employment Strategy for Council, to include jobs, mentoring and training programs;

143.10. established an Indigenous Unit that comprises a Senior Indigenous Policy Officer and a Indigenous Policy Officer and supports annually with recurrent budget in Community Services Group;

143.11. provide one off grant to Youth Projects Inc for a Indigenous Public Space Officer position in 2006;

143.12. support an Indigenous Arts Program; and

143.13. established an Indigenous Arts Manager position within Arts and Culture Branch.

Easing bike and pedestrian movement

144. The "major" streets in the CBD serve a variety of purposes including providing servicing opportunities for adjoining properties, facilitate through traffic movements (particularly during peak periods), public transport services, access to off-street car parks, cyclists and pedestrians.

145. The "little" streets are managed to provide predominantly local access for vehicles servicing adjoining properties, access to laneways which are also being managed to service abutting properties and vehicle access to commercial car parks.

146. On-street parking in "little" streets and adjoining laneways is predominantly configured to provide access for commercial deliveries. The operating times of 7.30am to 6.30pm reflect standard business operating times. These parking facilities already exhibit extremely high demand and reducing the access to this parking would therefore have a significant detrimental impact on the ability of adjoining properties to be serviced.

of 174

17

147. Commercial car parking in the CBD is largely controlled by the private sector and in most cases Council does not have the powers to control access times. Further, a significant proportion of the 40,000 commercial car parking spaces are being managed to cater for long term parking which coincides with the morning and afternoon peak periods.

148. Council is progressively increasing footpath widths in "little" streets, in some cases at the expense of parking, to encourage a pedestrian friendly environment.

149. Council will continue to identify opportunities to extend it’s extensive on and off-street bicycle network. The completion of a proposed transport model later this year by the State Government will provide a useful tool in assessing any opportunity to establish further bike links in the CBD.

International Travel & Activities Budget

150. The 2006/07 Budget for international travel is $243k.

151. The 2006/07 Budget for the international connections service is $1,852k.

152. This funding is required to deliver the objectives included in the four-year Council Plan and 2006/07 Annual Plan:

152.1. support the establishment of local offices of international agencies to promote social, economic and environmental sustainability;

152.2. complete and implement the Melbourne International Strategy elevate the City of Melbourne’s role as a global City; and

152.3. develop and implement ‘Melbourne in Milan’ events by June 2007 including a proposed NGV exhibition in Milan, a business mission, and a destination marketing program for cultural and tourism promotional events.

Granitic Sand

153. The City has commenced the process of removing granitic sand from around trees. See Collins Street b/w Swanston and Russell, also Swanston Street Flinders to Flinders Lane. This program is ongoing.

154. City Square is considered to be working well but will be reviewed once all tenancies are occupied in 12 months.


Submission from Ray Cowling (Refer Attachment 14)


156. Mr Ray Cowling has raised concerns about:

156.1. Parks and Gardens budget being reduced by over 3% in real terms; and

156.2. the bonded gravel being installed around trees.

of 174

18

157. Mr Cowling also wished Council to consider:

157.1. the next new campaign/process for the City of Melbourne; and

157.2. new revenue opportunity areas and the routing of parking permits.

Management comment

Parks and Gardens Budget

158. The City of Melbourne values its parks and gardens very highly and has continued to provide a strong level of funding for their maintenance in 2006/07. The comparison of the draft 2006/07 net budget with the net budget for 2005/06 shows an increase which is lower than CPI. However, the budgets for the contracted services to maintain the City's parks and tree assets have been adjusted by the appropriate CPI increases.

159. While most of the Parks & Recreation budget comprises on-going operational costs, there are also specific allocations for once-off projects that will vary from year to year. In particular, an extra allocation was provided in 2005/06 for services rela ted to the Commonwealth Games. These services will no longer be needed in 2006/07 and therefore the allocations have been removed.

Bonded Gravel

160. Council has commenced a program this current financial year of installing bonded gravel around street tree bases. The bonded gravel is a relatively new material which is being used to replace granitic sand or gravel.

161. The granitic sand which has been traditionally used requires high maintenance levels as the sand is either kicked out or compacted leaving a potentially hazardous depression around the tree trunk. As noted by Mr Cowling, the gravel or sand can also stick to shoes and the area around the tree can become muddy following rainfall. The compaction of the granitic sand also reduces the infiltration of water and air to the root system.

162. The new bonded gravel is a permeable material that allows water and air to reach the roots and it also does not compact, thus eliminating the potential trip hazard. The bonded gravel is made up of relatively larger stones that are glued or bonded together which stops the material from spreading onto the adjacent footpath as can occur with granitic sand.

163. As the bonded gravel has only recently been installed in the last few months, Mr Cowling may be referring to granitic sand or gravel. The colour of the new bonded gravel has been chosen so as to closely resemble that of granitic sand. Examples of the new bonded gravel can be found in Collins Street between Russell and Swanston Streets.

164. The use of native grasses around tree bases has been previously trialled and found to become a potential fire risk, an area where litter congregates and also which is also difficult to maintain.

New campaign

165. The 2006/07 Destination Marketing program does contain an emphasis on the city being very family-friendly, so this objective will be delivered without additional funds being required. In terms of the recommendation of the establishment of a "precinct group" for city based families, with dedicated resourcing, between now and December 2006, a new precinct model is being developed.

of 174

19

New revenue opportunities and the routing of parking permits

166. The 2006/07 Annual Plan includes the delivery of a detailed report identifying possible alternative/increased revenue opportunities by February 2007.

167. Council officers are investigating issues relating to sales of parking multi-use permits. The Officers will report back to Councillors on this matter. It is noted that this may involve future consideration of policy options such as amended provisions in the Resident Priority Parking Scheme or the enactment of Local Law offences.


Submission from Carlton Community Lifelong Learning Hub (Refer Attachment 15)


169. Munira Mahmoud on behalf of Carlton Community Lifelong Learning Hub Advisory Committee requests the Council to ‘fund the Hub Coordinator for an additional three years to further cement the position, and continue the work of the Hub in the Carlton Community’. Funding of $124,977 for the 3 years ($40,037 for 2006/07) is requested.

170. Ms Rebecca Harris, Coordinator of the Carlton Community Lifelong Learning Hub has requested to speak to this submission.

Management comment

171. The City of Melbourne funded the first year operating costs for the establishment of the Hub and Co-ordinator Salary of $50,000. Also City of Melbourne paid for the 2006/07 Insurance Premium for Public Liability, being $1,300.


173. Council supports the work and services provided by Carlton Community Lifelong Learning Hub.

174. Whilst in principle we support funding for the Hub, an amount of $133k has been included in the 2006/07 budget in support of Community Information and Support Grants, and this submission should be referred to the Community Services Grant program.

175. We will support and encourage Carlton Life Long Learning Hub to seek alternative sources of funding from relevant State Government Departments such as DVC/DHS/DEET.


Submission from Carlton Senior Citzens (Refer Attachment 16)


177. Sandy Rowe Coordinator, Christine Gardner M.O.W Coordinator, John Cody V President Committee Management, Cr Jackie Fristacky President Committee of Management, Barbara Mair Treasurer, on behalf of Carlton Senior Citizens requests the Council to ‘allow the Support Worker to continue at least until the end of the lease period’.

178. Funding of approximately $29,640 is requested.

of 174

20

Management comment

179. Council currently funds the service at $41,385 per annum which along with support from the Department of Human Services and the City of Yarra allows for the employment of a centre coordinator and the provision of affordable program activities.

180. The Department of Human Services has recently informed Council that we will not receive any new Home and Community Care funding for the next three years and an additional contribution from Yarra is unlikely.

181. The City of Melbourne recognises the need at the Carlton Senior Citizens Centre however it is recommended that we advocate Department of Human Services to continue their support.


Submission from Victorian Institute of Sport (Refer Attachment 17)


183. The submission from the Victorian Institute of Sport seeks the continued funding from the City of Melbourne for the Sports Role Model Program. The Sports Role Model Program is fully funded by the City of Melbourne and without continued funding will cease.

184. Funding of $75,000 was allocated to the program in 2005/06.

Management comment

185. City of Melbourne's financial support of the Sports Role Model Program 05/06 was a positive initiative and it recognises the value of the program, however there is no capacity within the existing budget allocation to provide further funding.


Submission from Melbourne Business Council (Refer Attachment 18)


187. The Melbourne Business Council (MBC) are concerned about increases in operating costs, particularly high interest rates and fuel prices, the new parking levy, significant increases in land tax and service charges, and, as a result are fearful of increased Council rates and charges and reduced council services.

188. A précis of each matter raised in the submission from the MBC together with the management comment is provided in the following paragraphs:

188.1. Public Open Space – The reserve is being used to fund works that were traditionally funded from Council revenue in the past;

188.2. Long Term Stay Parking Levy – The MBC believe the funding can only be spent on State Government approved projects and the Council should immediately re-negotiate the agreement to obtain exemption from paying the levy on Council operated car parks;

188.3. Child Care – Council continues to carry forward nearly $4 million for an inner city facility. When is the new centre going to be built and become operational?

of 174

21

188.4. Street Parking Fees – Council should immediately consider a review of parking meter charges to bring them in line with public expectations;

188.5. Staff – employee costs in the future years increase at a rate greater CPI and greater than the increase in Council revenue;

188.6. FINA Swimming Championships – MBC believe no funding should be provided to FINA for the event;

188.7. Melbourne Convention Centre – The Council should terminate the Memorandum of Understanding with the State Government and should not be using ratepayer’s funds to finance State Government infrastructure;

188.8. Consultants – concerned at the level of spending on Consultants;

188.9. Strategic Resource Plan 2006-2010 – concerned with the level of the underlying surplus over the period;

188.10. Ratepayer Savings – concern with the trend in financing traditional council works through savings and reserves; and

188.11. Melbourne Children’s garden in Tianjin – the item cannot be afforded at this time and should be deleted from the budget.

Management comment

189. Public Open Space (POS) – Council’s approach in utilising the POS reserve is to apply the funds to specific capital works projects that deliver additional or enhanced open space. This approach is consistent with prior years.

190. The increased development growth in the city has resulted in an increase contribution to the POS reserve enabling the Council to utilise more of these funds.

191. Funds from the State Government Long Term Parking Levy are applied towards Council’s Transport Strategy, over and above the resources available through its normal budget process. The funding assists to accelerate the strategy and benefit pedestrians, cyclists and visitors to the City.

192. Child Care – refer to management comments above for the submission from Janice O’Connell and Joseph Clarke.

193. Street Parking Fees – While the introduction of higher on street parking fees has not yielded the revenue expectations, several factors have contributed to this including a shift in patronage towards public transport and rising petrol prices. Fees are still considered reasonable and comparable to other similar sized Councils.

194. Staff – The increase in employee costs reflects the increase in the EBA (which is for a three year period), additional costs incurred through complying with the City of Melbourne Award and the additional positions required to meet service needs and programs in the budget. Overall the budget provides for a reduction of 5 Equivalent Full Time (EFT) positions.

195. FINA Swimming Championships – The comments are noted. Council is considering the allocation to FINA and will determine the amount as part of its submissions process consideration.

of 174

22

196. Melbourne Convention Centre – The expenditure agreed to in the MoU with the State Government is directed towards capital works which are all “municipal” in nature. Council’s funding is not directed at creating State Government Infrastructure. The projects identified in the MoU create a vital link between Southbank, Docklands, and the North and South banks of the Yarra River.

197. Consultants – The amount of $9.8 million included in the budget is entitled professional services. This includes such items as internal and external audit, legal services and consultant’s expenditure. The level of consultant expenditure is $3.8 million or 1.5% of total expenditure. The level of consultant expenditure is all directly linked to the provision of all services within Council and does not in any way represent an excessive number. It should be noted that as part of the preparation of the 2006/07 budget, the amount allocated to professional services was reduced by $0.785 million or more than 7%.

198. Strategic Resource Plan 2006-2010 - From time to time major events or high priority programs will demand a higher proportion of Council resources in any one year; examples of this are the CH2 project, Commonwealth Games and Convention Centre. The key objective is to ensure that in the longer term Council’s financial sustainability is maintained and can meet future service requirements. The Strategic Resource Plan (“SRP”) is financial responsible and over the four year period sees the Council returning to surplus. Council’s SRP has been considered by Standard and Poors and the Council’s AAA rating has been endorsed again this year.

199. Ratepayer’s Savings – The comments are noted. A large organisation such as the City of Melbourne will continually face challenges to manage projects across the Council. While Council approves funding for each capital works project in the budget, the key financial management issue is whether each project is completed and is within the overall funding allocation of the total program.

200. Melbourne Children’s garden in Tianjin – The comment is noted. Council undertakes a rigorous review of the capital works program to ensure projects consistent with the Council Plan and Councillor objects are achieved. The 2006/07 budget is expected to see a modest increase in its cash position compared to the FAF 2005/06 this indicates the works program is affordable.


Submission from Carlton Neighbourhood Learning Centre Inc. (Attachment 19)


202. Mary Parfrey, Centre Manager for Carlton Neighbourhood Learning Centre (CNLC) has requested funding of $50,000 for ‘one year to develop, expand and to promote, some of the Community Development (CD) and Community Building actions currently undertaken.’

203. ‘This requested funding would allow CNLC to support Carlton Local Agencies Network (CLAN) with such issues as Carlton Office of Housing Redevelopment, tenants’ need for larger community facilities, community art projects, childcare, health and wellbeing, the elderly, and the increasing Horn of Africa (HOA) community’.

Management comment

204. Council provided $6,500 through the Council Approved Community Services Grant program to CNLC for the 2006 grant round and $16,640 for various projects in the 2004/05 grant round.

205. CNLC is sited in the City of Yarra, however the majority of the participants in their programs come from the City of Melbourne, specifically the Carlton Office of Housing estates.

of 174

23


207. CNLC is engaged in a variety of partnerships as follows; CLAN, Neighbourhood House networks, Adult Multicultural English Services, Council’s Family Resource Centre, and the Carlton Life Long Learning Hub.

208. Council supports the work and services provided by CNLC.

209. Whilst in principle we support $30,000 partial funding for one year, an amount of $133k has been included in the 2006/07 budget in support of Community Information and Support Grants, and this submission should be referred to the Community Services Grant program.

210. We will support and encourage CNLC to seek alternative sources of funding from relevant State Government Departments, for example DVC/DHS/DEET.


Submission from Mark Stella (Attachment 20)


212. Mark Stella raised concerns about the installation of parking meters at the Zoo. He was asking about ‘who in fact owns the Zoo’ and whether the City of Melbourne has a ‘lawful right to impose parking meters at the Zoo’.

Management comment

213. The Zoo is not owned by the City of Melbourne, but the area surrounding the Zoo is managed, under Committee of Management, by the Council. Council would have the legal right to install parking meters around the Zoo.

214. The installation of parking meters at the Zoo is not included in the 2006/07 budget. Any initiative to install meters at the Zoo would need to be approved by Council prior to any work commencing.


Submission from North & West Melbourne Association Inc (Refer Attachment 21)


216. Mr Michael Horscroft Treasurer of the North & West Melbourne Association has submitted a copy the 2006/07 budget of the North & West Melbourne Association.

Management comment

217. The correspondence received from the Association did not indicate it was a submission and does not specifically requesting any funding.

218. The North & West Melbourne Association received funding of $5,000 in 2005/06 through the Community Grants program.

219. An amount of $133k in total has been included in the 2006/07 budget in support of Community information and support Grants. This submission should be referred to the Community Services Grant program.

of 174

24


Financial Implications

221. The proposed 2006/07 Budget expects a surplus on the Statement of Financial Performance of $13.486 million, an underlying surplus of $0.607 million and a cash outflow of $22.866 million. The financial impact of the submissions would result in additional expenditure of $0.745 million. The net financial impact of each submission is detailed in table 1 below.

Table 1: NET FINANCIAL IMPACT OF SUBMISSIONS

Proposed 2006/07

Submissions Net Financial Impact

Budget

$000s $000s $000s

Submissions

Carlton Business Association No $ impact stated

0

Parkville Association 120 (120) North Melbourne Language & Literacy 75 (75)

Friends of the Elms 50 (50) Mr van der Craats No $ impact

stated 0

Mr Stuart Davie / Cr Ng No $ impact stated

0

J. O'Connell & J. Clarke No $ impact stated

0

Parks Victoria 150 (150) North & West Melbourne Precinct Association

No $ impact stated

TEAMelbourne 100 (100) Residents 3000 Inc No $ impact

stated 0

Ray Cowling No $ impact stated

0

Carlton Community Lifelong Learning Hub 40 (40) Carlton Senior Citizens 30 (30) Victorian Institute of Sport 75 (75) Melbourne Business Council No $ impact

stated 0

Carlton Neighbourhood Learning Centre 50 (50) Mark Stella 0 0 North & West Melbourne Association 5 (5) Other changes Reallocation of $0.250M/Community Services Grants

50 (50)

Total 0 745 (745)

of 174

Attachments: 1. Cultural & Recreational Lands 2006/2007 2. Schedule of Grants and Contributions – Expenditure 3. Submission from Carlton Business Association Inc 4. Submission from Parkville Association 5. Submission from the North Melbourne Language & Literacy Inc 6. Submission from Friends of the Elms Inc 7. Submission from Mr Anthony van der Craats 8. Submission from Mr Stuart Davie 9. Submission from Ms Janine O’Connell and Mr Joseph Clarke 10. Submission from Parks Victoria 11. Submission from North & West Melbourne Precinct Association 12. Submission from TEAMelbourne 13. Submission from Residents 3000 Inc 14. Submission from Mr Ray Cowling 15. Submission from Carlton Community Lifelong Learning Hub 16. Submission from Carlton Senior Citizens 17. Submission from Victorian Institute of Sport 18. Submission from Melbourne Business Council 19. Submission from Carlton Neighbourhood Learning Centre Inc 20. Submission from Mr Mark Stella 21. Submission from North & West Melbourne Association Inc 22. Briefing Paper: Grants and Sponsorships Allocation 2006/2007

25

of 174

Attachment 1 Agenda Item 3.1

Finance and Governance Committee 20 June 2006

1

CULTURAL & RECREATIONAL LANDS - 2006/2007

PROPERTY ASSESSMENT

NUMBER ADDRESS/DESCRIPTION

RATES CHARGED PER C. & R. L. ACT

(1963)

13295 23 Fogarty Street NORTH MELBOURNE VIC 3051 (NMFC) $3,000

13313 33 Fogarty Street NORTH MELBOURNE VIC 3051 (NMFC) $1,800

13373 Melbourne Rowing Club Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $800

13376 Melbourne University Boatshed Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $750

13379 Banks Rowing Club Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $1,750

13388 Mercantile Rowing Club Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $1,450

13391 Richmond Rowing Club Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $800

13392 Yarra Yarra Rowing Club Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $700

14083 North Park Tennis Club Royal Park Flemington Road PARKVILLE VIC 3052 $300

14657 Melbourne Park Batman Avenue MELBOURNE VIC 3004 (TENNIS CENTRE) $35,000

14670 Melbourne Showgrounds 300-350 Epsom Road FLEMINGTON VIC 3031 $7,000

18077 500 Epsom Road FLEMINGTON VIC 3031 (VRC - corporate boxes) $22,500

18275 500 Epsom Road FLEMINGTON VIC 3031 (VRC - track manager's residence) $400

18285 500 Epsom Road FLEMINGTON VIC 3031 (VRC - racecourse) $65,000

18331 500 Epsom Road FLEMINGTON VIC 3031 (VRC - residence) $400

18907 Pavilion Members Stand Brunton Avenue JOLIMONT VIC 3002 (MCG) $1,500

18913 Corp. Box Brunton Avenue JOLIMONT VIC 3002 (MCG) $17,500

18926 Restaurant Brunton Avenue JOLIMONT VIC 3002 (MCG) $2,500

18928 Great Southern Stand Offices Brunton Avenue JOLIMONT VIC 3002 (MCG) $50,000

18935 Melbourne Cricket Ground Brunton Avenue JOLIMONT VIC 3002 (MCG) $37,500

18938 MCG TAB Brunton Avenue JOLIMONT VIC 3002 (MCG) $500

23033 Richmond Social Club Punt Road JOLIMONT VIC 3002 (RFC) $3,000

23068 Richmond Grand Stand Punt Road JOLIMONT VIC 3002 (RFC) $3,250

23865 Smithfield Road FLEMINGTON VIC 3031 (VRC - residence) $600

24948 Carlton Gardens Tennis Club Carlton Gardens North Nicholson Street CARLTON VIC 3053 $400

25221 Princes Park Bowling Club Princes Park 109 Bowen Crescent CARLTON NORTH VIC 3054 $1,250

25257 Royal Parade CARLTON NORTH VIC 3054 (CFC) $3,250

25284 Corp. Box/Office Royal Parade CARLTON NORTH VIC 3054 (CFC) $2,750

25308 Optus Oval Royal Parade CARLTON NORTH VIC 3054 (CFC) $9,500

26623 Parkville Tennis Club 151-153 Royal Parade PARKVILLE VIC 3052 $400

36880 Princes Hill Tennis Club Princes Park 121 Princes Park Drive CARLTON NORTH VIC 3054 $500

39534 City Of Melbourne Bowls Club Inc. Flagstaff Gardens Dudley Street WEST MELBOURNE VIC 3003 $1,600

40376 Melbourne Grammar School Boatshed Yarra Boathouses Boathouse Drive MELBOURNE VIC 3004 $950

42507 Corp. Box Melbourne Park Batman Avenue MELBOURNE VIC 3004 (Tennis Centre) $7,500

57827 Part Level 1-2 Brunton Avenue JOLIMONT VIC 3002 (MCG) $2,000

59538 Royal Park Tennis Club Royal Park 333 The Avenue PARKVILLE VIC 3052 $1,400

77363 Balance Land 204-206 Arden Street NORTH MELBOURNE VIC 3051 (NMFC) $250

77364 Balance Land Punt Road JOLIMONT VIC 3002 (RFC) $250

TOTAL RATES FROM CULTURAL & RECREATIONAL LANDS $290,000

of 174



1

Amendment to Community Services GrantsDescription of Grant or Subsidy 2006/07

Budget 2006/07 Revised

Adjustment

$000s $000s $000s Childrens Services - Council Approved Grants 128 133 5 Ethnic Meals Program & Aged Social Support - Council Approved Grants 71 95 24 Community Information & Support - Council Approved Grants 128 133 5 Youth Grants Scheme - Council Approved Grants 111 115 4 Community Groups use of the Town Hall 214 222 8 Drugs Action Community Grants 15 16 1 Strategy for a Safer City Community Grants 35 36 1 Melbourne Toy Library 20 22 2 TOTAL 722 772 50

City Of Melbourne

Divisional Results Summary ($Thousands)

Schedule of Grants & Contributions - Expenditure

Council

Description of Grant or Subsidy 2005/2006 FAF

2006/07 Budget

$000s $000s

Assets & Services DivisionTotal Assets & Services Division 2,286 2,504

Design & Culture DivisionTriennial Program 2,000 2,076

Total - Design & Culture Division 3,491 3,568

Sustainability & Innovation DivisionBusiness Development Fund 1,500 1,499 Host agreement with ICLEI 50 80 UNGC Cities Program - instalment 1 of 3 year agreement to fund Cities Program secretariat

45 45

Other Sustainability & Innovation Division Grants 49 50 Total - Sustainability & Innovation 1,644 1,674

Finance DivisionFinance Grants 611 635 Contribution in accordance with MOU with State Government for Melbourne 5,000 Total - Financial & Business Services Division 611 5,635

Corporation Performance DivisionTotal – Corporate Performance Group 124 106

- Marketing and Customer Relations DivisionSporting Sponsorships 435 307

Retail, Precinct and Tourism Sponsorships 536 508

Major Events Sponsorships 753 1,742

Community Events Sponsorships 358 572

Other Marketing and Customer Relations Division Sponsorships 994 797 Total - Marketing and Customer Relations Division 3,076 3,926

TOTAL COUNCIL 11,230 17,413 -

of 174

of 174



1

BRIEFING PAPER: GRANTS AND SPONSORSHIPS ALLOCATION 06/07

Date 20 June 2006 To Lord Mayor, Deputy Lord Mayor, Councillors & Directors From Scott Chapman File Docs # 3764997

Background

1. At the Finance and Governance Committee Special meeting of 25th May 2006, Council requested a report prior to the finalisation of the 2006/07 budget process on the impact on the Marketing, Tourism and Major Events program of shifting $0.5 million in grants and subsidies to Community Grants.

Comments

2. The administration has looked at the impact on both budget areas and tried to balance the components of the grants under the Marketing, Tourism and Major Events budget in order to provide capacity to meet Councillor concerns about community grants (administered through the Assets & Services Division).

3. This analysis showed that it was possible to reduce the proposed Major Events budget but the impact of reducing grants to community organisations and projects would impact adversely on the Council.

4. This was discussed with the Lord Mayor, Deputy Lord Mayor and Cr Shanahan on the 6 June and it was agreed that the best approach would be to reduce the proposed Major Events allocation (specifically the proposed support of $1M for the FINA World Swimming Championships) and to provide for CPI increases for organisations receiving community grants. It was further suggested that a provision be made to address the outcomes of a City/State Government review of the Italian, Greek and Chinese precincts.

Proposal

5. The recommendation is to reduce the proposed allocation for the FINA World Swimming Championships by $250,000 and allocate this to a provision which could be used to implement the outcomes of the review of the Italian, Greek and Chinese precincts.

6. This would set the city contribution to the FINA World Swimming Championships at $750,000.

7. As well, $50,000 would be provided by reducing the projected surplus by this amount thereby enabling CPI increases to be applied to all community grants.

Page 171 of 174

2

8. It is not proposed to go further in reducing the Marketing, Tourism and Major Events budget because it has not been possible to isolate targets for reduction which would generate the remaining funds.

Support

9. It is important to strike a balance between all of the different organisations and activities that Council funds from its grants and sponsorship allocations.

10. The FINA World Swimming Championships is a very significant global event which will attract 2,500 athletes with an international television audience of over a billion and a tourism impact of 12-15,000 visitors over the two week period of the event.

11. The city activation program, now suggested at $750,000, is the minimum to support effectively this significant international event. This amount is the equivalent to the expenditure on the Volvo Around the World Yacht Race, but the FINA event is much more significant both in terms of television audience and expenditure by participants and visitors.

12. The reduction of the deficit to provide the capacity for CPI adjustments to grant recipients will not impact adversely on the 2006/07 budget.

13. The City, together with the State Government, are funding a significant study into the standing of the Italian, Greek and Chinese cultural precincts, with a view to re-establishing the primary positioning that these precincts once held. This includes reworking of the major events program, the physical and infrastructure needs to present these precincts in the best possible light, and a range of cultural programs required to establish these communities.

14. The outcomes of this study will require the Council to take action to implement them and the allocation of the $250,000 from the FINA budget would provide capacity to complete the study and initiate responses in 2006/07.

Recommended Action

15. It is recommended that Council:

15.1. reduces the proposed allocation of $1 million to FINA World Swimming Championships by $250,000 to $750,000;

15.2. retain control of that $750k and establish a city activation program to support the event;

15.3. allocate the $250k transferred from FINA to a review of the Italian, Greek and Chinese Cultural Precincts and the implementation of possible responses to the outcomes of the review.

15.4. note that once the review is undertaken, any proposals for implementation of the outcomes would be the subject of specific recommendations to Committee;

15.5. reduce the projected budget surplus for 2006/07 by $50k to provide for CPI increases in Grants and Sponsorships in Assets and Services.

Page 172 of 174

Agenda Item 3.1 Finance and Governance Committee

20 June 2006

FINANCE ATTACHMENT

CONSIDERATION OF SUBMISSIONS AND MATTERS ARISING FOR THE PROPOSED 2006/2007 ANNUAL PLAN & BUDGET

The financial implications are contained in the body of this report.

Joe Groher Manager Financial Services

Page 173 of 174

Agenda Item 3.1 Finance and Governance Committee

20 June 2006

LEGAL ATTACHMENT

CONSIDERATION OF SUBMISSIONS AND MATTERS ARISING FOR THE PROPOSED 2006/2007 ANNUAL PLAN AND BUDGET

The report accurately summarises the relevant parts of the Act and the Cultural and Recreational Lands Act 1963.

Sections 129 and 223 of the Act require public notice be given of a proposed budget and a public submissions process be carried out. A person may request to be heard in support of a written submission, and must be given a hearing before the Council or Committee as appropriate. Section 223(1)(e) of the Act provides:

“The Council must take into consideration all the submissions made under this section and after it has made a decision must notify in writing every person who has lodged a separate submission and in the case of a submission lodged on behalf of a number of persons, notify in writing 1 of those persons, of the decision and the reasons for the decision.”

Kim Wood Manager Legal Services

Page 174 of 174