Record investment in infrastructure and services underpins the City of Melbourne's draft 2017-18 Annual Plan and Budget, led by a $29 million investment in the Queen Victoria Market renewal.
- A record $422 million in programs and services
- Fully funded $158 million Council works infrastructure program with no new borrowings
- Underlying surplus of $1.9 million
- Two per cent increase in rates
- Net assets to grow to more than $4 billion
- Total income from rates and charges: $273 million
- Underlying cost increase contained to no more than 1.5 per cent, expected to be below CPI.
Lord Mayor Robert Doyle said the Draft 2017-18 Annual Plan and Budget invests in key services and infrastructure needed for one of the nation's fastest growing cities.
"This is the first year of a four year budget and council plan that will deliver on our vision for our city's growth, sustainability, prosperity and liveability," the Lord Mayor said.
"Melbourne's economy is the envy of the nation. Our latest data from the Census of Land Use and Employment (CLUE) shows that our economy has grown by 42 per cent in 10 years and is now worth $92.1 billion.
"Melbourne is the nation's economic powerhouse. We have helped create more jobs than any other capital city. Growth in jobs over the last decade has increased by 26 per cent."
The Lord Mayor said that total budget expenditure on capital works, programs and services in 2017-18 is the largest expenditure in Council history, at $557 million.
"We will spend $29 million on the Queen Victoria Market precinct, as we move from planning into project delivery of the world's largest current market renewal," the Lord Mayor said.
"The investment will help us create safer, more efficient and sustainable facilities for traders to make the day-to-day running of their small businesses easier and more viable. We will improve access to power across the market precinct and progress the construction of proposed below-ground storage, dedicated delivery areas, cool rooms, waste management and recycling facilities."
"The budget also highlights our commitment to keeping the market trading right throughout the renewal program, with funding allocated to the construction of the temporary new market pavilion. The greenhouse inspired pavilion will house traders who need to temporarily move during the renewal program and will provide many exciting reasons for people to shop at the market while works are underway."
The draft budget includes a $17.4 million investment in major street scape improvements including the redevelopment of the southern end of Elizabeth Street, pedestrian safety around Spencer Street, improvements to Racecourse Road, and to Queensberry, Cardigan, and Pelham Streets in Carlton.
"We will transform the southern end of Elizabeth Street with a $1.5 million investment including the closure of the southbound traffic lane, removal of curbing and channelling, and construction of new paving, lighting, street trees and drainage works," the Lord Mayor said.
The budget also includes $25.3 million on public open space projects, which are integral for Melbourne's liveability as our apartment-dwelling population continues to grow.
An $11 million down payment will allow works to begin on a $35 million open space project in the city's most densely populated suburb, Southbank. The transformation of Southbank Boulevard and Dodds Street will include 1.2 km of bike lanes, a new playground, public art opportunities, significant planting and improved access and activation of Melbourne's arts and cultural precinct. A further investment of $2.9 million will be used on 41 public realm improvement projects in Southbank.
"This is a once-in-a-generation project for Melbourne. We will create 2.5 hectares of new open space linking Domain Parklands and the Yarra River," the Lord Mayor said.
The City of Melbourne will also install more than 360 smart litter bins in the CBD following a successful trial of 14 bins last year. The new bins hold seven times the waste of a standard litter bin and will help to reduce garbage truck movements in busy CBD areas.
Major investments are also being made in early education and care, with $3.7 million invested in upgrading the Lady Huntingfield Child Care Centre and Hotham Hub in North Melbourne. The total investment of $8.6 million will deliver a 106 place integrated family and children's centre. The budget also includes an investment of $3 million towards the development of an integrated family and children's service incorporating the Central Carlton Children's Centre into the Carlton Primary School.
The Budget also includes:
- $60.3 million on programs and services for youth, aged, children, families, people with disabilities, sport and recreation and city safety initiatives;
- $64 million on business and economic development, city planning, city promotion, tourism and events;
- $16.3 million in our arts and culture programs to strengthen our reputation as Australia's arts capital; and
- $170.3 million on maintaining a first public realm: transforming our streets, boulevards and laneways, keeping our city clean and creating an integrated network of bike paths.
Chair of the Finance and Governance portfolio Deputy Lord Mayor Arron Wood said the 2017-18 draft Budget sets out the first tranche of the Council Plan 2017-21, which captures Council's aims over the next four years.
"Council has set out a very clear vision for what we want to achieve over the next four years. Despite the record investment in infrastructure, we will not increase the financial burden on residents and businesses," the Deputy Lord Mayor said.
Councillors will consider the draft budget at a special meeting of Future Melbourne Committee and Council Meeting at 5.30pm today and is open for public consultation until Friday 2 June 2017. A final version will be considered by Council on Tuesday 27 June.
Comments from City of Melbourne Councillors on the Draft 2017-18 Annual Plan and Budget:
Finance and Governance
"We're continuing to show leadership in Local Government transparency by providing access to information and insights about the city through our Open Data Platform. This is a disciplined and fiscally responsible budget with no new borrowings, a focus on cost containment and a modest rate increase of 2.0 per cent with no rise in on street parking fees."
Deputy Lord Mayor Arron Wood, Chair of the Finance and Governance portfolio
Small Business, Retail and Hospitality
"We're contributing $291,000 for small business, start-up grants and mentoring. Over the last 20 years our grants program has created hundreds of jobs and allowed many entrepreneurs to realise their dreams and reach new markets. The success of small businesses drives growth in employment and provides valuable goods and services to residents, workers and visitors."
Councillor Susan Riley, Chair of the Small Business, Retail and Hospitality portfolio.
Arts, Culture and Heritage
"Melbourne's artistic, cultural and creative life is vital for community wellbeing. Recognising the contribution the creative industries make to our city economy, we're proposing to invest $16.3 million in arts programs, artists and the creative industries. We're creating a plan to better utilise the North Melbourne arts precinct, including progressing a strategic plan for Arts House. We have also set ourselves the goal in our Council Plan to ensure that all heritage controls across the municipality are brought up to date. In 2017-18 we are investing in heritage reviews in the Hoddle Grid, Southbank and Fishermans Bend, as well as completing a municipality-wide changeover to best practice heritage gradings and policies."
Councillor Rohan Leppert, Chair of the Arts, Culture and Heritage portfolio
International Engagement
"Melbourne now has one of the highest intakes of international students globally, nearly 40,000, and a significant concentration of tertiary students – 227,000 – living and/or studying in the municipality. That is why City Of Melbourne is committed to providing and delivering vital programs such as Student Welcome Desk at Melbourne Airport and Lord Mayor's Student Welcome Event to students who have made the choice to study in the world's most liveable city."
Councillor Philip Le Liu, Chair of the International Engagement portfolio
Knowledge City
"The City of Melbourne has invested more than $63 million in new library and community hubs in the past five years. Our library service records more than 1.4million visits annually. Libraries continue to offer an essential service to the entire community, enabling and enriching the lives of all constituents in the municipality - and there are many more of them now as our resident population booms. Libraries serve students, workers, residents, businesses and are critical infrastructure in a globally recognised Knowledge City."
Councillor Dr Jackie Watts, Chair of the Knowledge City portfolio
Planning
"Melbourne's development will require strategic planning and population growth is one of the biggest challenges we face. Our residential population is predicted to grow to more than 220,000 and the city is expected to service more than 1.1 million visitors a day in the next 10 years. Innovative urban design, respect for our heritage buildings and high architectural quality are core to the development of a world-class city. We are committed to not only providing clarity and certainty to the community and the development industry through appropriate planning controls, but we need to uplift the design quality of development."
Councillor Nicholas Reece, Chair of the Planning portfolio
Prosperous City
"We are leading further trade missions to Japan and China in 2018 to foster international business development opportunities. We're also contributing $16.38 million for the continuation of Council's Premier Events including New Year's Eve, Melbourne Spring Fashion Week, Christmas, Moomba and Melbourne Music Week. For more than 18 years we've provided support to designated associations in unique parts of Melbourne to collectively promote these areas to increase visitation and consumer spend. We've committed a further $625,000 to our Precinct Program in 2017-18."
Councillor Kevin Louey, Chair of the Prosperous City portfolio
Environment
"We will install more than 360 smart litter bins in the CBD following a successful trial of 14 bins last year. The new bins hold seven times the waste of a standard litter bin and will help to reduce garbage truck movements in busy CBD areas. We administer 2,496 public litter bins and 545 recycling bins across the municipality, with $9.8 million spent on waste services each year. We're committing $5 million towards a three year program to switch nearly 16,000 street lights to energy efficient LEDs. We will invest $220,000 in our pioneering Nature in the City strategy to protect and preserve biodiversity. More than $500,000 will be allocated to a green action plan for future green walls, roofs and facades. We will also invest more than $2.7 million in adapting our streetscapes to climate change."
Councillor Cathy Oke, Chair of the Environment portfolio
People City
"Our initial investment of $3.7 million will allow construction to start on the $8.6 million redevelopment of the Lady Huntingfield Children's Centre in North Melbourne. The new integrated family and children's centre will accommodate 106 places and help to meet rising demand for childcare places in the inner city. Our investment of $1.7 million towards the redevelopment of the JH Boyd High School site in Southbank will include 46 new affordable housing apartments, with a further 56 affordable housing units proposed as part of the Munro redevelopment in the City North precinct."
Councillor Tessa Sullivan, Chair of the People City portfolio
Transport
"The City of Melbourne is proud to be a city with a great Indigenous culture and in our budget this year we continue to support Indigenous employment and knowledge of Indigenous heritage within the broader community.
We are committed to a safe and sustainable city. Our focus continues to be creating Melbourne as a walking and cycling city. We're supporting Melbourne's biggest public transport project, the $11 billion Metro Tunnel, because it will help get people into the city efficiently with public transport and allow them to enjoy the city either on foot or through cycling. An investment of $2.55 million will be used to complete the year two actions from our Bicycle Plan 2016-2020. Full bike lanes will be created on Albert Street in East Melbourne, along with a lighting upgrade on the Yarra River corridor, and local bike path upgrades in Kensington, North Melbourne, Carlton, and Southbank. In 2016-17, we installed 457 bike hoops in the city and we're installing a further 500 bike hoops in 2017-18 at a cost of $400,000."
Councillor Nicolas Frances Gilley, Chair of the Transport portfolio