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					      City of Melbourne
2008–09 Annual Report
                                                                         City of Melbourne            2008–09 Annual Report


EXECUTIVE SUMMARY ............................................................................................................. 4
LORD MAYOR MESSAGE .......................................................................................................... 5
CEO MESSAGE .......................................................................................................................... 7
ABOUT THIS REPORT ............................................................................................................... 9
MELBOURNE, AUSTRALIA ..................................................................................................... 11
   Melbourne, the place ........................................................................................................................11
   Melbourne, the people......................................................................................................................12
   Melbourne facts and figures ............................................................................................................12
   Melbourne stakeholders ..................................................................................................................12
MELBOURNE CITY COUNCIL ................................................................................................. 13
CORPORATE GOVERNANCE ................................................................................................. 19
THE ADMINISTRATION ............................................................................................................ 28
12 MONTHS IN MELBOURNE .................................................................................................. 35
   July 2008 ...........................................................................................................................................36
   August 2008 ......................................................................................................................................39
   September 2008 ................................................................................................................................40
   October 2008 .....................................................................................................................................41
   November 2008 .................................................................................................................................42
   December 2008 .................................................................................................................................44
   January 2009 .....................................................................................................................................46
   February 2009 ...................................................................................................................................47
   March 2009 ........................................................................................................................................48
   April 2009 ..........................................................................................................................................50
   May 2009 ...........................................................................................................................................51
   June 2009 ..........................................................................................................................................52
   Looking ahead ..................................................................................................................................59
OUR PERFORMANCE .............................................................................................................. 61
   Performance statement ....................................................................................................................61
   Performance against key strategic activities..................................................................................61
   Strategic indicators ..........................................................................................................................69
ABOUT THE GLOBAL REPORTING INITIATIVE .................................................................... 77
   GRI Content Table ............................................................................................................................78
OUR FINANCIALS .................................................................................................................... 93




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                                                   City of Melbourne    2008–09 Annual Report


Vision
The City of Melbourne will strive to achieve the community’s vision of a bold, inspirational and
sustainable city.
Mission
   Make Melbourne great for people to live in and visit
   Achieve the creative potential of the city
   Protect and strengthen the city’s economic prosperity
   Make Melbourne a recognised knowledge city that supports innovation and technology
   Demonstrate leadership in ecological sustainability
   Work vigorously for a connected city which is safe and supports the efficient movement of people
    and freight
   Lead by example and manage resources well.
Values
For City of Melbourne employees and councillors to be the best at what they do and achieve the
corporate vision and mission, their actions and decisions are guided by a set of five fundamental and
unifying values:
Integrity: We take responsibility for our actions in an honest and transparent way
Courage: We dare to create new and better ways of doing business
Accountability: We take responsibility for decisions and actions to achieve agreed outcomes
Respect: We consider and understand the perspective and contribution of others
Excellence: We continuously improve our performance to achieve outstanding outcomes for Melbourne




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                                                   City of Melbourne    2008–09 Annual Report


EXECUTIVE SUMMARY
   This is the final annual report against the goals of Council Plan 2005–2009. A new council and
    leadership team was elected in November 2008 and a new Council Plan, based on the community’s
    long-term vision for the city, the Future Melbourne Community Plan, was developed.

   The City of Melbourne remains debt free with cash and cash equivalents in excess of $100 million at
    the end of 2008–09. The organisation is AAA credit rated by Standard & Poor’s.

   Council invested more than $80 million dollars in capital works in 2008–09 across the city. This
    included contributions to a new family and children’s centre at Docklands and a pedestrian and cycle
    bridge across the Yarra at South Wharf.

   The public provided feedback to around 30 City of Melbourne public consultations in 2008–09. More
    than 5,000 responses and submissions were received as part of our Swanston Street consultation
    program.

   Partnerships were important in 2008–09 and the City of Melbourne continued to work with its many
    stakeholders. Our extensive work on city safety, for example, benefited from our close working
    relationships with organisations such as Victoria Police, Liquor Licensing Victoria, VicRoads,
    CitiPower and the Office of the Emergency Services Commissioner.

   The City of Melbourne provided more than $15 million for community activities such as local arts and
    culture, community service, the environment, events, business, tourism and sport initiatives. Our
    2008–09 small business grants, for example, are expected to generate 102 new jobs, $17 million in
    turnover and more than $2 million in investment.

   Sustainability is core business and this year our extensive sustainability-focussed activities included
    drought proofing sports grounds and adopting our important Total Watermark – City as a Catchment
    and Zero Net Emissions – Update 2008 policies.

   The ‘Lean’ philosophy of service improvement was introduced into the organisation in 2008–09, as
    we continued to implement the recommendations of the 2007 Ernst & Young review.




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                                                   City of Melbourne    2008–09 Annual Report


MESSAGE FROM THE LORD MAYOR OF
MELBOURNE

It has been an eventful year for the people of Melbourne and the council that serves and represents
them.
Sworn in at the beginning of December last year, the new council has diligently supervised the
completion of a four-year plan implemented by the previous council. Following a rigorous development
process, we have also endorsed a new four-year plan which takes a long-term view to city development
while tackling a range of immediate challenges.
The real danger of climate change was brought home to all Victorians when bushfires swept a state
bone dry after too many consecutive years of drought. Almost 430,000 hectares including 70 national
parks were torched; 173 people in 78 communities were lost. The City of Melbourne responded quickly,
channelling funding and materials to affected areas. Building on the groundswell of community support
after Black Saturday, our resolve to transform Melbourne into a carbon neutral city is ever stronger.
The 1200 buildings project is an ambitious initiative to support building owners in retrofitting older city
buildings to 5-star green building standards, eliminating 383 kilo tonnes of emissions per year. A decade
of transformation would achieve $2 billion of private sector reinvestment and generate between 3000
and 6000 new jobs. We’re leading by example, investing in the retrofit of Council House 1.
The Total Watermark strategy is targeting zero potable water use for parks and gardens, a 50 per cent
reduction in potable water use per worker and a 40 per cent reduction in water use per resident by 2020.
We’re collecting water from city buildings like Queen Victoria Market to save city parks and trees. At the
groundbreaking CH2 building, we’re refining grey water and black water systems. It’s all based on seeing
the city as a catchment: every wall, every rooftop and every street.
Faced with the global economic crisis, council developed a budget driven strategy to protect jobs and
support business while shielding ratepayers from the worst of the recession. We’ve made sure
community services are not affected when needed most, actually increasing help for families doing it
tough and leading efforts to end homelessness in the central city.
Over $70 million has been allocated to building new and improving existing infrastructure, the largest
investment in capital infrastructure council has ever undertaken. Despite the record stimulus, the City of
Melbourne has retained its AAA credit rating and rates were increased by just 3 per cent, the lowest of
any capital city in Australia. Underpinning economic growth is the formation of a new economic
development agency, Enterprise Melbourne, which links industry and government in defining and
promoting our city’s diverse offer.
City safety has received significant public attention in the year passed. Council has responded with a
multilevel strategy to reduce the incidence of violent behaviour, promote responsible venue
management, improve late night transport and stimulate public debate. Safe city taxi ranks are about to
be implemented as well as street lighting and education programs for licensed venue staff.
Swanston Street and Docklands also received much attention this year with community consultation
favouring the removal of cars from Swanston Street and the completion of the Docklands Waterways
Strategic Plan which will ensure a balance of leisure activities and maritime industries.




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                                                   City of Melbourne   2008–09 Annual Report


This report outlines both the achievements of the last council and the vision and early progress of the
new team. I encourage you to read its contents and respond by getting involved in the organisation’s
programs and community forums.




Robert Doyle
Lord Mayor




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                                                   City of Melbourne   2008–09 Annual Report


CEO MESSAGE
The City of Melbourne continues to provide high-quality services and facilities to our community. We
remain debt free – with a AAA credit rating from Standard & Poor’s – and our 2008–09 investments in
systems and staff are set to benefit the organisation well into the future.
A year of transition and planning for the future
The financial year began with the reunification of Kensington and North Melbourne (parts of which were
in Moonee Valley) under Melbourne’s municipal boundary, adding 1.1km2 to our city.
A milestone was reached in September 2008 with the adoption of the award-winning Future Melbourne
Community Plan. The new Melbourne City Council, sworn in on 4 December 2008, embraced Future
Melbourne as the basis of its Council Plan 2009–2013. The many roles of the council are reflected in the
plan’s objectives and the priority areas of activity in the 2009–10 Annual Plan and Budget.
Delivering services to the community
Three of the five key strategic activities of our 2008–09 Annual Plan and Budget were completed during
the year. Our business and international strategy is in place, affordable housing commitments are met
and our organisational improvements have been made.
The remaining two key strategic activities were substantially completed by year’s end: the timeframe for
delivering the Office of Knowledge Capital’s strategic plan was unavoidably extended, and interim
protection measures for parks were put in place while our events policy is revised in 2009.
Significantly, the council adopted the Docklands Waterways Strategic Plan 2008–2018. Developed with
our partner agencies VicUrban and Parks Victoria, the plan will ensure outstanding, quality development
on Melbourne’s waterfront over the next decade.
Recommendations from the 2007 Ernst & Young review of the organisation continue to be implemented.
In 2008–09 we made a significant investment in our assets and financial systems and began our journey
toward a Lean Thinking culture that will result in cost savings and the continual improvement of our
services. The Lean Thinking operating system was first introduced by Toyota to improve quality and
efficiency in the manufacture of motor cars. It has since been applied to a range of service industries and
has much to offer the City of Melbourne as we continue to review and improve our processes and
services.
Sustaining the organisation
Pleasingly, staff turnover decreased again in 2008–09. Our new attraction and retention framework, an
important recommendation of the Ernst & Young review, provides opportunities for every person in the
organisation to develop professionally and understand how their work fits into the bigger picture.
Sustainability is an inherent and crucial part of our work. The launch of our CoM Green program taps into
staff enthusiasm for sustainability, with practical measures such as greener information technology.
Measures to reduce our power and water use have cut water consumption by half in the past decade
and our 2008–09 investments in drought proofing will continue to pay off into the future.
In 2008–09 we have once again reported against the Global Reporting Initiative. We have also reported
against our series of strategic indicators, including Victorian local government indicators.




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                                                City of Melbourne   2008–09 Annual Report


Toward 2009–10
I welcome the new council and leadership team and look forward to implementing Council Plan 2009–
2013 as we work towards the community’s Future Melbourne vision. I thank my directors and the
organisation’s management and staff for their quality outcomes and continuing commitment to a bold,
inspirational and sustainable city.




Dr Kathy Alexander
Chief Executive Officer




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                                                  City of Melbourne    2008–09 Annual Report


ABOUT THIS REPORT
This annual report documents the City of Melbourne’s performance over the 2008–09 financial year. It
meets our obligations under Section 131 of the Local Government Act 1989 (Vic) and addresses the
requirements of the Global Reporting Initiative (GRI) G3 Principles for defining report content (see page
77).
How the 2008–09 Annual Report relates to the council’s other planning documents
This report provides information on performance against the 2008–09 Annual Plan and Budget, which is
part of our integrated planning framework.




This is the final annual report detailing the outcomes of Council Plan 2005–2009. In November 2008 a
new council was elected for the Melbourne municipality and a new four-year Council Plan was
developed based on the Future Melbourne Community Plan, the community’s long-term vision for the
city.
This annual report also outlines the City of Melbourne’s performance. The Financial Statements (see
page 93) contain financial information about the organisation and its subsidiaries.
Measuring performance
Our success is measured by progress toward the objectives of Council Plan 2005–2009 and the key
strategic activities of the 2008–09 Annual Plan and Budget (see page 61).




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                                                      City of Melbourne   2008–09 Annual Report


We use strategic indicators to monitor progress against our Council Plan, including standard Victorian
local government indicators (see page 69). Increasingly, we are incorporating the GRI indicators into our
core set of indicators (see page 77).
Sustainability reporting
Melbourne is a recognised leader in sustainability.
The ambitious goals of the Future Melbourne Community Plan inspire us to improve the sustainability of
the city’s building stock, reduce carbon emissions in all areas of city life, and develop ways to capture,
store and deliver potable water within the municipality and protect our world-renowned parks and
gardens.
Managing and improving the disposal of waste and promoting recycling is increasingly important for
reducing our ecological footprint.
Sustainability is core business for the City of Melbourne and we play an important role in educating the
community and preparing for and responding to climate change.
The Global Reporting Initiative
The GRI is an independent organisation that provides one of the world’s most widely-used standards for
sustainability reporting. The Sustainability reporting guidelines1 provide a framework to measure, track,
report and compare economic, environmental and social performance.
The GRI’s Sector Supplement for Public Agencies recommends public agencies provide qualitative and
quantitative information about their broader contextual environment, public policies, implementation
measures and organisational performance. The City of Melbourne supported the development of these
guidelines.
The reporting framework also includes the United Nations Global Compact’s 10 guiding principles
covering human and labour rights, anti-corruption and environmental protection. Reporting against the
principles is included in our GRI reporting (page 77).
See the GRI website at www.globalreporting.org for more information.
Sustainable approach to this publication
As part of our commitment to sustainability, in 2008 the City of Melbourne published its annual report
online for the first time. A small number of copies of our annual report are produced in hard copy to
satisfy the requirements of the Local Government Act 1989 (Vic).




1 Third version guidelines (G3) published 2006.




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                                                    City of Melbourne    2008–09 Annual Report


MELBOURNE, AUSTRALIA
Melbourne, the place
Melbourne is the capital of Victoria and Australia’s second-largest city. It sits on the south-east edge of
our continent on the shores of one of the world’s largest bays, Port Phillip Bay.
The Melbourne municipality has a residential population of almost 90,000 and covers 37.6km2. It is the
anchor of the much larger Melbourne metropolitan region, which has a population of 3.9 million people
and spreads more than 40km to the south, 30km to the east and 20km to the north.
City workers and visitors swell the municipality’s population to around 770,000 during the day and on
weekend evenings more than 300,000 people visit the city.
Melbourne is the gateway to Victoria, the seat of the Victorian Government and a major city in the global
economy. It has a strong export focus and is a leader in education, retail and major events.
The municipality has changed dramatically in the past decade with over 100 new commercial and
residential buildings added, including extensive development in its waterfront suburbs, Docklands and
Southbank.
Melbourne offers the best of many worlds with magnificent tree-lined boulevards, a mix of classic and
modern architecture and a unique blend of Asian and European style. Melbourne is consistently rated as
one of the world's most liveable cities by the Economic Intelligence Unit’s liveability ranking.




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                                                   City of Melbourne    2008–09 Annual Report


Melbourne, the people
The Melbourne municipality has a diverse residential population of almost 90,000 people.
Just under half its residents were born overseas or have at least one parent born overseas. A third
speak a language other than English at home, with Mandarin the most common.
The city also has the youngest population of the wider Melbourne metropolitan area, with a median age
of 28 years and almost 30 per cent of residents aged between 25 and 34 years. More than 18,000 of our
residents are international students.
Melbourne facts and figures
The City of Melbourne’s extensive research program has a large collection of statistics, maps, area
profiles and other information about Melbourne. See www.melbourne.vic.gov.au for more details.
Some highlights about the Melbourne municipality include:
   a median house price of $790,500 (March 2009)
   145,000 café and restaurant seats for diners
   more than 1 million international visitors a year
   568 hectares of parkland for recreation
   almost 340km of roads.
Melbourne stakeholders
Our stakeholders include anyone with an interest in what we do and the services and programs we
provide. They include our:
   local community: residents, ratepayers, businesses, workers, students, visitors, unions, the media,
    community groups and associations, and the education sector
   working partners: other government bodies and agencies, our suppliers and consultants,
    neighbouring communities and the business community
   global partners: other capital cities worldwide, investors, event organisers and others.
We work with stakeholders in many ways, from formal consultations (see page 57) on significant
policies, programs and services to specific-issue advisory groups and our daily interactions with city
users through our services and facilities.
Melbourne City Council welcomes attendance and participation at council and committee meetings.
Members of the public can make submissions to the council or a committee on matters listed on an
agenda. A register of public submissions made under S223 of the Local Government Act 1989 (Vic) is
available for viewing at the City of Melbourne’s offices.
Records of meetings, details on how to participate in council or committee meetings and dates and times
of meetings are available on the City of Melbourne website.




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                                                   City of Melbourne    2008–09 Annual Report


MELBOURNE CITY COUNCIL
Melbourne City Council is the local government body responsible for the Melbourne municipality. The
council consists of a Lord Mayor and Deputy Lord Mayor (the leadership team) and seven councillors.
Under the provision of the City of Melbourne Act 2001 (Vic):
   Melbourne is not divided into wards
   the leadership team and councillors are elected separately by voters across the municipality
   the preferential voting system is used to elect the leadership team and proportional representation is
    used to elect councillors.
The previous council was sworn in on 2 December 2004. The current council was elected for a four-year
term in November 2008. The next council election is scheduled for November 2012.
The council’s role
The Local Government Act 1989 (Vic) and City of Melbourne Act 2001 (Vic) set out the primary purposes
and objectives of Melbourne City Council and defines its functions and powers. The council is a public
statutory body incorporated under the Act. Its role is to govern the municipality of Melbourne in service of
the community.
The council:
 acts as a representative government and considers community needs when making decisions
 establishes strategic objectives for municipal services and monitors their achievement
 ensures the responsible and accountable management of the organisation’s resources
 advocates local community interests to other communities and governments
 is a responsible partner in government, taking the needs of other communities into account
 fosters community cohesion and encourages participation in civic life.
Council decisions
Councillors make decisions at council meetings and delegated committee meetings. Committee meeting
decisions are subject to a ‘referral notice process’ meaning that when fewer than five committee
members vote in favour of a motion, members have the option of referring the matter to the next council
meeting.
Delegations
Melbourne City Council’s powers under the Local Government Act 1989 (Vic) or any other Act may be
delegated to a special committee of council, to the CEO or to a council officer via the CEO. Staff are
accountable to the CEO. The council and its committees establish policy while staff make decisions in
accordance with that policy. The exercise of delegations is subject to the council’s Delegations Policy.
Relationship with other tiers of government
Statutory responsibility for local government lies with each Australian state or territory. An Act of each
State parliament specifies local government powers, duties and functions. In Victoria, the legal basis for
councils is established under the Constitution Act 1975 (Vic) and the Local Government Act 1989 (Vic).
2008 council elections
The Melbourne City Council election results were declared on Tuesday, 2 December 2008. Information
about the 2008 Melbourne City Council elections is on page 44 of this annual report. For more




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                                                   City of Melbourne    2008–09 Annual Report


information about council elections, see the Victorian Electoral Commission website at
www.vec.vic.gov.au.
Subsidiaries and trusts
Melbourne City Council has three wholly-owned subsidiary companies: CityWide Service Solutions Pty
Ltd, Queen Victoria Market Pty Ltd and Melbourne Wholesale Fish Market Pty Ltd.
Melbourne City Council also has an interest in other entities including 100 per cent ownership of the
Sustainable Melbourne Fund, a 50 per cent interest in the Regent Management Company Limited and is
the majority shareholder in MAPS Group Limited, trading as Strategic Purchasing.
Member, Council of Capital City Lord Mayors (CCCLM)
The Lord Mayor of Melbourne is a member of the CCCLM, which comprises the lord mayors of all capital
cities and the ACT’s Minister for Territory and Municipal Services. It coordinates and represents the
special interests of Australia’s state and territory capital cities in their relations with other spheres of
government.
Partner, Inner Melbourne Action Plan (IMAP)
IMAP is an initiative of the cities of Melbourne, Yarra, Port Phillip and Stonnington to make the inner
Melbourne region more liveable. IMAP coordinates the implementation of 11 regional strategies, which
focus on priority areas including affordable housing, environmental improvements (water, waste and
greenhouse), tourism and sustainable transport.
Councillor profiles – current council
Lord Mayor Robert Doyle
First elected in 2008.
The Lord Mayor is Chair of meetings of the Melbourne City Council and represents the City of Melbourne
on the following advisory committees and external organisations:
   1200 Buildings: Melbourne’s Building Retrofit Project Steering Committee
   Melbourne City Council Audit Committee
   Australian Council of Local Government Steering Committee
   Business Partner City Network
   C40 Cities Climate Leadership Group
   Cancer Council of Victoria
   Council of Capital City Lord Mayors
   Enterprise Melbourne Advisory Forum
   International Council for Local Environmental Initiatives (ICLEI) Australasian Mayors Council for
    Climate Protection Coordination Committee (Councillor Oke represents the Lord Mayor as proxy)
   Lord Mayor’s Charitable Foundation
   Melbourne Arts Trust
   Shrine of Remembrance.




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                                                 City of Melbourne   2008–09 Annual Report


Deputy Lord Mayor Susan Riley
Served as Deputy Lord Mayor, 2001–04. Re-elected in 2008.
The Deputy Lord Mayor represents the City of Melbourne on the following advisory committees and
external organisations:
   Melbourne City Council Audit Committee
   Inner South Metropolitan Mayors’ Forum
   Lord Mayor's Commendations Advisory Group 2009–11
   Melbourne Awards Advisory Board
   Melbourne Arts Trust
   Melbourne Day Committee
   Melbourne Retail Advisory Board 2009–12
   Melbourne Spring Fashion Week Advisory Board
   Moomba Waterfest Working Group
   Police Community Consultative Committee – Central Activities District
   Shine of Remembrance – Remembrance Day Dinner, 75th Anniversary Committee
   Tourism Promotion Organisation for Asia-Pacific Cities.

Councillor Peter Clarke
First elected in 2004 and re-elected in 2008.
Cr Clarke is Chair of the Melbourne City Council’s Planning Committee and represents the City of
Melbourne on the following advisory committees and external organisations:
 City Licensing Approvals Forum
 Inner Melbourne Action Plan Implementation Committee
 Inner South Metropolitan Mayors’ Forum.
Before the November 2008 election, Cr Clarke was Co-Chair of the Melbourne City Council’s Docklands
Coordination Committee and represented the City of Melbourne on the following advisory committees
and external organisations:
 Community Services Grants Program Selection Panel
 Subcommittee (Convention Centre Plans and Reports).




                                                  15
                                                City of Melbourne   2008–09 Annual Report


Councillor Carl Jetter
First elected in 2004 and re-elected in 2008.
Cr Jetter is Chair of the Melbourne City Council’s Economic Development and Knowledge City
Committee and currently represents the City of Melbourne on the following advisory committees and
external organisations:
   City Licensing Approvals Forum
   Melbourne Day Committee
   Melbourne Hospitality Advisory Board 2009–12
   Moomba Waterfest Working Group.
Before the November 2008 election, Cr Jetter was Chair of the Melbourne City Council’s Marketing and
Events Committee and represented the City of Melbourne on the following advisory committees and
external organisations:
   Cultural Precincts Steering Committee
   District Precinct Program 2007–10
   Melbourne Awards Committee
   Melbourne International Flower and Garden Show Event Advisory Group
   Melbourne Marketing Advisory Body
   New Year’s Eve Event Partners
   Osaka Cup Executive Group
   Strategic Purchasing (MAPS Group Ltd)
   Tourism Task Force
   Victorian Local Governance Association.

Councillor Jennifer Kanis
First elected in 2008.
Cr Kanis is Chair of the Melbourne City Council’s People and Creative City Committee, Deputy Chair of
the Planning Committee and represents the City of Melbourne on the following advisory committees and
external organisations:
   City of Melbourne Parks and Gardens Advisory Committee
   Disability Advisory Committee
   Family and Children’s Advisory Committee
   Housing Choices Australia
   Melbourne Symphony Orchestra.




                                                   16
                                                City of Melbourne   2008–09 Annual Report


Councillor Kevin Louey
First elected in 2008.
Cr Louey is Chair of the Melbourne City Council’s Connected City Committee and represents the City of
Melbourne on the following:
   Docklands Coordination Committee (Co-Chair) which is jointly operated by the council and VicUrban
   Metropolitan Transport Forum.

Councillor Cathy Oke
First elected in 2008.
Cr Oke is Chair of the Melbourne City Council’s Eco-City Committee, Deputy Chair of the Connected
City Committee, Deputy Co-Chair of the Docklands Coordination Committee and represents the City of
Melbourne on the following advisory committees and external organisations:
   Bicycle Reference Group
   City of Melbourne Parks and Gardens Advisory Committee
   City of Melbourne Water Reference Group
   ICLEI Executive Committee
   ICLEI Management Committee
   ICLEI Australasian Mayors Council for Climate Protection Coordination Committee (represents the
    Lord Mayor as proxy)
   Metropolitan Waste Management Group
   Moonee Ponds Creek Coordination Committee
   Victorian Road Based Public Transport Advisory Council.

Councillor Ken Ong
First elected in 2008.
Cr Ong is Deputy Chair of the Melbourne City Council’s Economic Development and Knowledge City
Committee, Deputy Chair of the Finance and Governance Committee and Deputy Chair of the People
and Creative City Committee. Cr Ong also represents the City of Melbourne on the following advisory
committees and external organisations:
   Committee for Melbourne
   District Precinct Program 2007–10
   Moomba Waterfest Working Group.




                                                  17
                                                 City of Melbourne   2008–09 Annual Report


Councillor Brian Shanahan
First elected in 2004 and re-elected in 2008.
Cr Shanahan is Chair of the Melbourne City Council’s Finance and Governance Committee, Deputy
Chair of the Eco-City Committee and currently represents the City of Melbourne on the following
advisory committees and external organisations:
 Audit Committee
 Melbourne Arts Trust
 North Melbourne Recreation Reserve Landscape Plan Advisory Committee
 Police Community Consultative Committee – Melbourne West
 Victorian Local Governance Association.
Before the November 2008 election, Cr Shanahan was Chair of the Melbourne City Council’s Finance
and Governance Committee and represented the City of Melbourne on the following advisory
committees and external organisations:
   Audit Committee
   Community Infrastructure Implementation Subcommittee
   Environmental Impact of Commercial Waste Collection Subcommittee
   Inner South Metropolitan Mayors’ Forum
   Kensington North Melbourne Boundary Transition Advisory Committee
   Municipal Association of Victoria
   North Melbourne Recreation Reserve Landscape Plan Advisory Committee.



Outgoing council
On 1 July 2008 the Melbourne City Council comprised:
   Lord Mayor John So
   Deputy Lord Mayor Gary Singer
   Councillor Fraser Brindley
   Councillor Peter Clarke
   Councillor Carl Jetter
   Councillor Catherine Ng
   Councillor Brian Shanahan
   Councillor Fiona Snedden
   Councillor David Wilson.
Following an election in November 2008, a new council took office on 4 December with councillors Peter
Clarke, Carl Jetter and Brian Shanahan re-elected.
The City of Melbourne acknowledges the contributions and leadership of the previous council.




                                                  18
                                                      City of Melbourne     2008–09 Annual Report


CORPORATE GOVERNANCE
Corporate governance encompasses the processes, protocols, conduct and relationships that guide the
Melbourne City Council’s actions and decision-making. Some mechanisms of governance are legislative
requirements and others are initiatives of the council.
This section contains information on performance in areas such as councillor information, legislative
compliance, risk and audit operations.
Councillor conduct
The council’s Councillor Code of Conduct outlines the role of the council and provides an overview of
councillor responsibilities in accordance with the Local Government Act 1989 (Vic). The code includes
guidelines for rules of conduct, decision-making and use of the council’s resources. It also includes
procedures for disclosure of interests and conflicts of interest that go beyond legislative requirements.
There were no known breaches of the code by councillors in 2008–09.
Council meetings
The council generally meets monthly, with a schedule of meeting dates available on notice boards at the
Melbourne Town Hall, North Melbourne Library, East Melbourne Library, City Library, Carlton (Baths)
Community Centre, the Hub at Docklands and on the City of Melbourne website.
All meetings of the council and its committees are conducted in accordance with the Conduct of
Meetings Local Law 2001. While meetings are open to the public and the public is encouraged to attend,
the council or special committee may close any meeting to the public to discuss:
   personnel matters
   the personal hardship of any resident or ratepayer
   industrial matters
   contractual matters
   proposed developments
   legal advice
   matters affecting the security of council property
   any other matter which the council or special committee considers would prejudice the council or any
    person
   a resolution to close the meeting to members of the public.
Council special committees
As well as council meetings, Melbourne City Council has eight special committees that meet either every
one, two or three months.
With the exception of the Docklands Coordination Committee, which is co-chaired by a member of the
VicUrban Board and Councillor Kevin Louey, and the Inner Melbourne Action Plan Implementation
Committee, each committee is made up of and chaired by councillors. Special committees are:
Connected City Committee (meets every two months)
This committee has delegated powers, duties and functions directly relating or ancillary to transport,
traffic engineering, cycling initiatives, pedestrian initiatives, urban freight, transport planning, traffic and
parking, smart city driving, and transport connections (regional and global).




                                                        19
                                                    City of Melbourne    2008–09 Annual Report


Docklands Coordination Committee (meets quarterly)
This committee manages coordination between the City of Melbourne and VicUrban to ensure the best
planning and use of public space in this still-developing area. The committee, which includes senior
representatives from both the City of Melbourne and VicUrban, meets quarterly to monitor place
management services within the coordination area.
Eco-City Committee (meets every two months)
This committee has delegated powers, duties and functions directly relating or ancillary to air quality,
enhancing environmental partnerships, greenhouse emissions, climate change, the Sustainable
Melbourne Fund, waste management and minimisation, public space (including parklands and trees),
parks and waterways (environment), water conservation and quality (including stormwater management)
and the International Council for Local Environmental Initiatives.
Economic Development and Knowledge City Committee (meets every two months)
This committee has delegated powers, duties and functions directly relating or ancillary to business
attraction and support, business development fund, Global City (including relations, trade and
marketing), investment attraction, federal government partnerships, retail and hospitality, conference and
convention attraction, international and domestic tourism and visitation, city events, corporate affairs and
communication, relationships with universities, learning city, online city, knowledge economy, the
Precinct Enhancement Program and information technology.
Finance and Governance Committee (meets monthly)
This committee has delegated powers, duties and functions directly relating or ancillary to the annual
budget, Council Works Program and the Four Year Financial Plan, Council Plan, Asset Management
Strategy, financial and control systems and reporting, Continuous Improvement – Lean Thinking,
Investment Fund and Property Portfolio, rates and valuations, subsidiary companies and associated
entities, tender and contract policies, audit, triple-bottom-line processes and reporting, parking
operations, local laws, contracts and other matters requiring expenditure beyond the current financial
year.
The committee also makes recommendations to council on governance matters including Good
Governance Charter, Councillor Travel Policy, Councillor Expenses and Resources Guidelines,
councillor travel approval and arrangements and councillor expenses.
Inner Melbourne Action Plan Implementation Committee (meets quarterly)
This committee has delegated powers, duties and functions directly relating or ancillary to overseeing
implementation of the Inner Melbourne Action Plan (IMAP) in accordance with the agreed Three Year
Implementation Program. The IMAP committee comprises the cities of Melbourne, Port Phillip,
Stonnington and Yarra.
People and Creative City Committee (meets monthly)
This committee has delegated powers, duties and functions directly relating or ancillary to children’s,
family, aged, youth, disabled and ethnic services, emergency management/services, social and
affordable housing, homelessness, Indigenous affairs, libraries and community centres, recreation
strategies and services, Safe City and Healthy City, social policy, community sports and community
grants, parks and waters (recreation), arts and arts grants, culture and cultural diversity, public space
(including streetscapes), place management, waterways, street trading, customer relationship
management, and community engagement.




                                                     20
                                                                                       City of Melbourne                                     2008–09 Annual Report


Planning Committee (meets monthly)
This committee has delegated powers, duties and functions directly relating or ancillary to heritage,
statutory planning and building control, strategic planning, urban design, planning scheme amendments,
10 Year Infrastructure Plan, noise abatement and Future Melbourne Community Plan.
Table 1. Council and Committee meeting attendance: 1 July 2008 to 30 November 2008
                          No. of meetings held




                                                                                                                                                               Cr Brian Shanahan




                                                                                                                                                                                                      Cr David R Wilson
                                                                                                                                                                                   Cr Fiona Snedden
                                                                                Cr Fraser Brindley
                                                              DLM Gary Singer




                                                                                                                                             Cr Catherine Ng
                                                                                                          Cr Peter Clarke


                                                                                                                            Cr Carl Jetter
                                                 LM John So




 Melbourne City
 Council meetings           5                    5             5                 5                         4                 4                5                   5                     5                  5
 Committee meetings
 Business and
 International
 Relations                  3                    2x            3                 2                         3                 2                2                   2                     3                  3
 Community Services         4                    0x            4                 3                         4                 3                3                   3                     4                  4
 Docklands
 Coordination               2                    ..            ..                ..                        2                 ..                *                  ..                    ..                 ..
 Environment                3                    0x            3                 3                         3                 3                2                   3                     3                  3
 Finance and
 Governance                 5                    0x            5                 4                         5                 3                4                   4                     5                  5
 Inner Melbourne
 Action Plan                2                    ..            ..                ..                        ..                ..               2                   ..                    ..                 ..
 Marketing and Events       2                    0x            2                 2                         2                 1                2                   2                     2                  2
 Planning                   5                    0x            5                 5                         5                 4                4                   3                     5                  5
.. Not a member

* Alternate member

x Ex-officio member




                                                                                                     21
                                                                                   City of Melbourne                                        2008–09 Annual Report


Table 2. Council and Committee meeting attendance: 1 December 2008 to 30 June 2009




                                                                                                                                                                                           Cr Brian Shanahan
                                                                 DLM Susan Riley




                                                                                                                        Cr Jennifer Kanis
                                               LM Robert Doyle
                             No. of meetings




                                                                                     Cr Peter Clarke




                                                                                                                                              Cr Kevin Louey

                                                                                                                                                               Cr Cathy Oke
                                                                                                       Cr Carl Jetter




                                                                                                                                                                              Cr Ken Ong
 Melbourne City
 Council meetings            12                12                12                  11                11               12                    12               12             12           11
 Committee meetings
 Connected City               2                 0                 2                   2                 1                2                     2                2             2             2
 Eco-City                     2                 2                 2                   2                 1                2                     2                2             2             2
 Economic
 Development and
 Knowledge City               2                 1                 2                   2                 1                2                     2                2             2             2
 Finance and
 Governance                   8                 8                 8                   7                 7                8                     8                7             8             7
 Planning                     7                 2                 7                   7                 5                7                     7                7             6             6
 People and Creative
 City                         4                 4                 4                   4                 3                4                     4                4             4             4
 Docklands
 Coordination                 2                 ..                ..                  ..                ..               ..                    2                 *            ..            ..
 Inner Melbourne Action
 Plan                         2                 ..                ..                  2                 ..               ..                    ..               ..            ..            ..
.. Not a member

* Alternate member

Councillor allowances
Councillors are paid an allowance set by the Victorian Government. This allowance is paid in recognition
of the demands placed on councillors in carrying out their civic and statutory duties, and for their work on
policy development, as spokespeople on community matters and as representatives of the Melbourne
City Council and Melbourne, both in Australia and overseas.
The allowances are:
   Lord Mayor: $147,900
   Deputy Lord Mayor: $60,500
   councillors: $33,600.




                                                                                    22
                                                   City of Melbourne   2008–09 Annual Report


Expenses
Councillors incur expenses in the course of fulfilling their roles. Expenditure is regulated by the
Councillor Expenses and Resources Guidelines, as endorsed by the Finance and Governance
Committee and consistent with Section 75 of the Local Government Act 1989 (Vic). Councillor expenses
are reported in detail every quarter on the City of Melbourne website.
Legislative compliance
Freedom of Information
The Freedom of Information Act 1982 (Vic) gives any individual or organisation the right to access
information held by the City of Melbourne unless that information is deemed exempt under the Act.
In 2008–09 the City of Melbourne received 50 valid applications seeking documents about building and
planning matters, parking infringements and the costs and activities of councillors and officers. The
number of requests received was comparable with the previous financial year (51).
There was one request in 2008–09 for internal review in which the decision was varied. No applicant
appealed to the Victorian Civil and Administrative Tribunal and no complaints were received by the
Ombudsman.
The Act specifies a 45-day statutory time limit to process requests. The average process time for
requests received by the City of Melbourne is 41 days.
National Competition Policy compliance
The City of Melbourne complied with the requirements of the Local Government Improvement Incentive
Program in 2008–09 in respect to National Competition Policy, which covers compliance in trade
practices, local laws and competitive neutrality.
Privacy Act
Standards set out by the Information Privacy Act 2000 (Vic) and the City of Melbourne’s Privacy Policy
Statement control how we manage personal information. Privacy compliance is included in our staff
induction program. We have a dedicated privacy officer within our Governance Services branch to assist
staff and members of the public with privacy-related queries or issues.
The City of Melbourne received two privacy complaints from members of the public during 2008–09.
Both complaints were resolved.
Whistleblowers Protection Act 2001 (Vic)
Complaints about the improper conduct of any council officer can be made confidentially, under the
Whistleblowers Protection Act 2001 (Vic), to the Victorian Ombudsman or to any one of the following
council officers appointed to receive disclosures:
 Dr Kathy Alexander, Chief Executive Officer
 Linda Weatherson, Director Community and Culture
 Jane Sharwood, Manager Business and International.
In 2008–09, there were no disclosed matters referred to the council by, or from the council to, the
Ombudsman.
Risk management
The City of Melbourne manages its risks to maximise opportunity and minimise loss. Risk management
planning is done as an organisation-wide exercise, but is also part of the daily business activities of
individual branches and contractors.




                                                    23
                                                   City of Melbourne    2008–09 Annual Report


Risk management strategy update, fraud awareness and training
The Risk Management Strategy 2007–2010 guides the City of Melbourne’s approach to risk
management. In 2008–09, risk exposures were updated and revised for all but two of the City of
Melbourne’s branches and recorded in the corporate risk register database. A major review of the top
strategic risks was undertaken by the CEO and directors, and these were reported to the Audit
Committee along with the wider risk profile.
A major risk project during the year was the specification and development of a new risk and audit
module for the organisation’s integrated business planning software. This module will be tested and
launched early in 2009–10. It will replace two existing databases, eliminate the need for a third, and
bring together planning, risk management and audit functions in a single application.
More than 900 City of Melbourne staff attended fraud awareness sessions in 2008–09, which was
merged with a session on improper conduct. A range of other courses were conducted, such as an
introduction to risk management, event risk management and trade practices in local government.
Insurance and risk financing
Two new claims were submitted to the City of Melbourne’s insurers during 2008–09 for the major
insurance classes of public liability and professional indemnity or property.
The cost of insurances to the City of Melbourne continued to reduce during 2008–09. This, in part,
reflects the organisation’s proactive approach to managing risks and controlling any losses that arise.
Business continuity planning and influenza pandemic
In 2008–09 the City of Melbourne continued to review the Corporate Business Continuity Plan. We also
updated our business continuity recovery plans, the Information Technology Disaster Recovery Plan,
and Business Impact Analysis for each branch. The Corporate Business Continuity Plan was partly
tested and applied during the H1N1 influenza (Swine Flu) outbreak in 2009. Planning proceeded for staff
training and full testing of the plans under a variety of scenarios, including the impact of an influenza
pandemic.
Audit operations
Audit Committee
In line with good governance practices and in accordance with Section 139 of the Local Government Act
1989 (Vic), the City of Melbourne has operated an Audit Committee since 1996. Appointed by the
Melbourne City Council, the committee oversees the activities of the City of Melbourne’s external and
internal auditors, and gives independent advice to the Finance and Governance Committee on
appropriate accounting, auditing, internal control, business risk management, compliance and reporting
systems, processes and practices within the organisation.
The Audit Committee met five times during 2008–09. It considered and made recommendations to the
council and City of Melbourne management on many issues and internal audits including:
   internet security
   occupational health and safety
   business continuity planning procedures
   risk profile and legislative compliance frameworks
   statement of annual accounts and performance report for the council, and reports on its wholly-
    owned subsidiaries




                                                    24
                                                   City of Melbourne   2008–09 Annual Report


  governance responsibilities applicable to associated entities and trusts in which the City of
   Melbourne has either an indirect interest or stake
 legal action reports
 parking and traffic
 IT disaster recovery planning
 budgeting and strategic planning
 crisis management
 the HR Framework review.
Audit Committee members – Independent
John Warburton – Chair
John Warburton was re-appointed for three years as a member of the Audit Committee in June 2006 and
retired from the committee in June 2009. He served as Chair of the committee for 10 years, contributing
expertise and leadership.
Qualifications:
   Certified Practising Accountant
   experienced director of many private and public sector organisations and their audit committees
   appointed to the Audit Committee in June 1999.
Theresa Glab
Theresa Glab was appointed to the Audit Committee for a three-year period in September 2008.
Qualifications:
   Partner/Associate Director, Risk Management and Internal Audit, Moore Stephens, Melbourne
   Bachelor of Economics; Graduate Diploma in Banking and Finance; Master of Accountancy
   experienced senior internal audit manager and financial controller.
Claire Filson
Claire Filson was re-appointed as a member of the Audit Committee for a further three-year period,
starting August 2007.
Qualifications:
 Bachelor of Law; Masters of Business Administration
 experienced director and company secretary of both private and public organisations
 Director of the Southern Cross Station Authority where she chairs the Audit Committee
 Director of Emergency Services & State Superannuation Board and Audit Committee member.
Audit Committee members – council representatives
Due to council elections in November 2008, councillor representation on the Audit Committee changed
during 2008–09:
   Lord Mayor John So (July 2008 – November 2008)
   Deputy Lord Mayor Gary Singer (July 2008 – November 2008)




                                                    25
                                                   City of Melbourne   2008–09 Annual Report


   Councillor Brian Shanahan (Chair of the Melbourne City Council Finance and Governance
    Committee) (July 2008 – June 2009)
 Lord Mayor Robert Doyle (February 2009 – June 2009)
 Deputy Lord Mayor Susan Riley (February 2009 – June 2009)
Internal audit
The internal audit service helps the City of Melbourne, its management, and the management of its
subsidiary companies, perform their responsibilities by assisting to maintain strong, relevant and
effective internal controls.
The City of Melbourne’s internal auditor reports to the Audit Committee. The service was contracted to
Ernst & Young, which started its second three-year term in March 2005 and continued on an exercised
extension until the end of June 2009.
A strong internal control environment ensures systems are in place to manage our operations effectively.
Services provided by the internal audit service include:
 risk assessment
 development and management of an audit program
 conducting audits and reviews
 reporting audit opinions, findings and recommendations
 presenting, discussing and providing advice on important issues.
External audit
The Victorian Auditor-General is responsible for the external audit of the City of Melbourne and its
subsidiary companies. Our external audit focuses on three areas:
 strategic planning
 detailed audit system testing
 review of financial statements.
Documents available for inspection
Regulations attached to the Local Government Act 1989 (Vic) require the City of Melbourne to keep
certain statutory registers and documents, which can be viewed on request, or in certain cases, on
application. Available documents include:
   council and committee meeting agendas and minutes
   list of special committees established or abolished
   agreements to establish regional libraries
   list of contracts valued at $150,000 or more which the council entered into outside the competitive
    process, except Section 186(5) contracts
   names of councillors and City of Melbourne officers required to submit a return of interest and the
    date returns were submitted
   details of interstate and overseas travel by councillors and City of Melbourne officers
   details of senior officers’ total salary packages
   details of all property, finance and operating leases involving land, buildings, plant, computer
    equipment or vehicles entered into by the City of Melbourne (as lessor or lessee)
   list of donations and grants made by the council




                                                    26
                                                    City of Melbourne    2008–09 Annual Report


   list of organisations of which the council is a member, and details of membership fees
   mayoral and councillor allowances
   register of authorised officers
   register of delegations
   Whistleblowers Protection Act 2001 (Vic) procedures
   submissions received under Section 223 of the Local Government Act 1989 (Vic)
   election campaign donation returns
   records of assemblies of councillors.
Leading-edge service improvement
The City of Melbourne is dedicated to the continuous improvement of its services and projects to ensure
best value for the community. In 2000, the Local Government Act 1989 (Vic) was amended to
incorporate six Best Value principles to ensure high quality and value-for-money services that respond to
the community’s needs.
The principles of Best Value are applied by the City of Melbourne in our day-to-day assessment of
services and, in late 2008, we furthered our commitment to value and quality by implementing the Lean
Thinking approach to service improvement.
Lean Thinking is a business method that aims to create value for internal and external customers by
eliminating waste and duplication. In service industries, ‘Lean’ means the right service, in the right place,
at the right time, provided by the right person and done right the first time.




                                                     27
                                                   City of Melbourne   2008–09 Annual Report


THE ADMINISTRATION
Melbourne City Council (commonly known as the City of Melbourne) is a public statutory body corporate
under the Local Government Act 1989 (Vic). The Act sets out the primary purposes and objectives of the
council, and defines its functions and powers.
The City of Melbourne’s headquarters is the Melbourne Town Hall in Swanston Street. The organisation
also operates facilities, services and administration functions from more than 30 other locations including
childcare centres, parks and gardens and swimming pools.
Organisation structure




Chief Executive Officer
Dr Kathy Alexander is the City of Melbourne’s Chief Executive Officer (CEO). Her functions and powers
are principally determined by the Local Government Act 1989 (Vic) and include:
   establishing and maintaining organisational structures to implement the Melbourne City Council’s
    decisions
   ensuring the council’s decisions are implemented
   managing the organisation’s day-to-day operations
   providing advice to the council
   appointing, directing and terminating staff, and managing all other issues that relate to staff.




                                                    28
                                                   City of Melbourne    2008–09 Annual Report


The Office of the CEO liaises with the offices of the Lord Mayor, Deputy Lord Mayor and councillors,
directors, the Australian and Victorian governments and other major community and corporate
stakeholders. The CEO also attends council meetings.
Divisions
The City of Melbourne has five divisions, each led by a director. The CEO and directors manage the City
of Melbourne’s operations and ensure the council receives the strategic information and advice it needs
to plan for the city and make decisions. The directors and their divisions are:
       Design and Urban Environment, Director Rob Adams AM
       The Design and Urban Environment division is responsible for developing strategic plans and
       urban design policy as well as delivering best-practice in design, project management and parks
       and recreation services. This division creates opportunities and delivers a range of services for
       residents, workers and visitors to the city and undertakes research. It also ensures the City of
       Melbourne maintains its reputation as a leader in sustainable design and management of public
       spaces.
       Commerce and Marketing, Acting Director Martin Cutter (previous director, Scott
       Chapman)
       The Commerce and Marketing division focuses on driving visitation and investment into
       Melbourne. The division contributes to positioning Melbourne as a world-class city in local,
       national and international markets through managing events, international business relationships
       and marketing programs.
       Sustainability and Regulatory Services, Director Geoff Lawler
       The Sustainability and Regulatory Services division advises the council on city planning and the
       future sustainable development of Melbourne. It manages the City of Melbourne’s built and
       constructed assets such as roads infrastructure and public buildings as well as municipal
       services such as parking and traffic management, and residential waste and street cleaning. It
       also maintains municipal property information and administers local laws and regulations to
       develop, improve and protect the general amenity of the municipality. The director is responsible
       for the City of Melbourne’s interests in the Sustainable Melbourne Fund and the Office of
       Knowledge Capital and is a member of the Inner Melbourne Action Plan Implementation
       Committee.
       Community and Culture, Director Linda Weatherson
       The Community and Culture division plans and provides services that foster social and cultural
       sustainability and public health. The division assists the organisation with public consultation, and
       provides an information and advocacy service for customers and other stakeholders.
       Corporate Services, Acting Director Joe Groher (substantive director, Martin Cutter)
       The Corporate Services division is primarily responsible for providing support services to the
       organisation. These services include legal advice, human resource management, information
       technology systems, financial reporting and management of the city's financial assets. The
       division also plays a role in liaising with our wholly-owned subsidiaries which contribute more
       than 4 per cent of the City of Melbourne’s revenue.




                                                    29
                                                                City of Melbourne      2008–09 Annual Report


Employment profile
Employment figures in this annual report are for City of Melbourne employees only and do not include
employees of our subsidiary companies.
Staff profile
As at 30 June 2009, the City of Melbourne employed 1,211 people. We have:
 930 full-time staff
 281 part-time staff.
Of these, 134 are non-permanent staff, including:
 94 fixed-term temporary
 40 casual.
The gender balance of staff at the City of Melbourne is split approximately 56 per cent female and 44 per
cent male. Women hold 26 per cent of executive positions. Seventy-eight per cent of female staff and
69 per cent of male staff are employed in medium-paying positions ranging from classifications 3 to 6.
Figure 1. Employee classification by gender

                          160
                                                                     Fem ale    Male
    number of employees




                          120


                          80


                          40


                           0
                                C1   C2   C3    C4       C5     C6      C7     Exec
                                               classification




Staff classifications
Class 1 and 2: child care workers, school crossing supervisors, fitness instructors, information officers
Class 3: parking and traffic, office administrative support
Class 4: administrative support, immunisation, environmental health, project officers
Class 5 and 6: first-level professionals, analysts, programmers, technical staff, maternal and child
health, event managers
Class 7: team leaders and professionals
Executive: managers, directors and CEO.




                                                                 30
                                                                                         City of Melbourne           2008–09 Annual Report


Figure 2. Number of staff by age group

                           250

                                                                                         female      male
                           200
   number of staff




                           150


                           100


                                 50


                                 0
                                         under 25    25-34        35-44          45-54      55-64      65 and over
                                                                          age



Figure 3. Number of staff by years of service

                                 30 or more
                                                                                                    female            male
                                 25 to < 30

                                 20 to <25
              years of service




                                  15 to <20

                                 10 to < 15

                                      5 to <10

                                       2 to <5

                                       1 to <2

                                          <1

                                                 0   20      40           60        80      100        120     140       160   180
                                                                               num ber of em ployees




Work-life balance programs
The City of Melbourne offers opportunities to help its staff develop, improve, overcome challenges,
balance work and life, and lead within the organisation through an extensive range of programs. These
include our Altitude program for the organisation’s future leaders and an emotional intelligence program
for personal awareness.




                                                                                           31
                                                               City of Melbourne   2008–09 Annual Report


Staff retention
Improving staff retention rates has been a focus in 2008–09, with encouraging results. Voluntary staff
turnover decreased significantly and the level of absenteeism decreased further from previous years.
Table 3. Staff turnover

                                            2004–05       2005–06     2006–07      2007–08   2008–09
 Positions advertised                       252           223         164          381       222
 Average applicants per position            35            37          34           23        28
 Staff turnover (see note 1)                12.0%         15.0%       12.7%        12.7%     7.9%
 Absenteeism (see note 2)                   4.0%          3.0%        3.1%         3.0%      2.7%
 Note 1: Voluntary (resignations) turnover only

 Note 2: Total sick leave absences as a percentage of ordinary time available


Health, wellbeing and safety
Membership of the City of Melbourne’s employee recreation association, CoMLife, continued to grow in
2008–09. During the year the association provided discounted wellbeing classes, supported corporate
sports teams, encouraged participation in charity events such as Movember and Cancer Council
fundraising, and sourced discounts for staff on gym memberships, massages, sportswear and other
health products.
Our People Assist Program is also designed to help employees meet the challenges of their work and
personal life by providing individual counselling and vocational guidance including career planning and
management coaching.
Table 4. People Assist Program
Year                           Number of consultations
2008–09                        115
2007–08                        128
2006–07                        140*
2005–06                        107
2004–05                        131
* Spike in use due to the 2007 organisation restructure


Occupational Health and Safety (OHS)
The City of Melbourne manages risk and occupational hazards by continuously improving its work
environment and OHS management system. Accreditation against SafetyMAP Fourth Edition –
Advanced Level and Australian Standard AS/NZS 4801:2001 OHS Management Systems criteria has
been maintained.
Actions in 2008–09 included expanding the internal audit program to accommodate boundary changes in
Kensington, developing an online incident reporting system, and continuing to consult with employees




                                                                32
                                                     City of Melbourne   2008–09 Annual Report


and stakeholders in managing OHS. Early intervention strategies were implemented after the outbreak of
the H1N1 influenza virus, including additional hygiene messages, infection control measures and
training.
Occupational rehabilitation
In 2008–09 the City of Melbourne supported staff to return to work following illness or injury using in-
house allied health professionals, early intervention strategies such as ergonomic reviews, and the
development of return-to-work plans.
WorkCover claims fall
The City of Melbourne accepted eight WorkCover claims in 2008–09. Our WorkCover premium
continued to fall and is now projected at 0.65 per cent. This is significantly lower than the local
government sector rate of 1.49 per cent.
The significant and continuing reduction in WorkCover claims since 2001 is the result of the City of
Melbourne's focus on injury and illness prevention, early intervention in the case of injury or illness, and
employment of allied health professionals enabling the organisation to better manage the rehabilitation of
injured or ill employees in-house.
Table 5. WorkCover claims
              Standard         Minor       Premium inc.        Premium as % of
 Year
              claims           claims      GST ($)             remuneration
 2008–09      3                5           754,000             0.65%
 2007–08      8                17          767,000             0.88%
 2006–07      7                19          940,000             1.15%
 2005–06      12               13          1,141,000           1.51%
 2004–05      13               33          1,282,000           1.81%
 2003–04      30               34          1,329,000           2.27%
 2002–03      32               26          1,325,000           2.27%
 2001–02      36               26          1,250,000           2.42%
Source: Victorian WorkCover Authority



Equal Employment Opportunity
The City of Melbourne is dedicated to a workplace free from discrimination, harassment and bullying.
Our network of Equal Employment Opportunity (EEO) contact officers are trained and supported to deal
with workplace issues.
To help maintain a positive workplace culture, staff at all levels across the organisation were trained in
EEO this year. More than 90 per cent of staff completed online EEO training, while team leaders and
others responsible for managing staff were also trained throughout the year in managing and preventing
unlawful discrimination and bullying in the workplace.
In June 2009 we introduced an Indigenous traineeship program. It is currently being reviewed with the
intention of continuing the program in 2009–10. An integral part of the induction process for all new
employees is a walk highlighting Melbourne’s Indigenous heritage.




                                                      33
                                                 City of Melbourne    2008–09 Annual Report


Other EEO achievements in 2008–09:
   A study was commissioned into the needs of employees with carer responsibilities, with the report to
    be released in 2009–10.
 An Integrated diversity framework was drafted, building on earlier individual employment strategies.
    Consultation is underway to prioritise actions.
 Gender participation was analysed across the organisation in 2008–09 and a strategy to address
    imbalance will be developed in 2009–10.
Union representation
The City of Melbourne estimates approximately 300 staff are members of independent trade unions. The
Melbourne City Council Enterprise Agreement (2005) is a collective bargaining agreement covering all
staff, excluding executives. The Melbourne City Council Award (2001) also covers all staff, excluding
executives.
Senior executive remuneration
The City of Melbourne has a policy of rewarding staff for their performance. Until 2008–09, senior
executive remuneration had an ‘at risk’ incentive component, by which payment was based on
achievement of agreed key result areas. Fifty per cent of senior executive performance evaluation was
linked to achieving Council Plan 2005–2009 strategies. The other 50 per cent related to demonstration of
agreed leadership behaviours.
The City of Melbourne also decided that executive bonus payments would cease after the 2008–09
financial year. To achieve this, all executives were offered and accepted a compensation amount based
on an average of previous bonus payments.




                                                   34
                                                            City of Melbourne   2008–09 Annual Report


12 MONTHS IN MELBOURNE
Every day of the year, the City of Melbourne provides services and facilities for residents, businesses
and visitors. Our activities are extensive and this section highlights some of our work during 2008–09,
which contributed to meeting the objectives of Council Plan 2005–2009. To measure progress towards
our Council Plan objectives, council monitors and reports back to the community against a set of
performance indicators (see page 61).
The symbols used in this section identify the objectives to which the highlighted activities mainly
contribute. Some areas of work contribute to more than one objective.
The objective ‘a financially responsible corporation’ is not denoted by a symbol as all activities and
initiatives of council, including all of the 2008–09 achievements listed in this section, are developed and
implemented within a context of financial responsibility.
The objectives and symbols are:
   a connected and accessible city (A)
   an innovative and vital business city (B)
   an inclusive and engaging city (C)
   an environmentally responsible city (D)
   a well-managed and leading corporation (E)
   a financially responsible corporation


Figure 4. Expenses and revenues by objective

                                                                                              Financially
                                                                                             responsible
                                                                                             corporation
                                      Well-m anaged and
                                     leading corporation

                  Environm entally
                  responsible city

                                                 Inclusive and                               Expenses
                                                 engaging city
                                                                                             Revenues
              Innovative and vital
                      city

                                                         Connected and
                                                         assessible city

         0                50,000               100,000               150,000       200,000                  250,000

                                                           $ '000




                                                             35
                                                    City of Melbourne     2008–09 Annual Report


July 2008
One city, many cultures: welcome Moonee Valley residents (C)
The City of Melbourne welcomed residents of Kensington and Flemington to the municipality on 1 July
2008 when responsibility for parts of these suburbs was transferred from the City of Moonee Valley. The
boundary changes added 1.1 km2 to the municipality and significantly increased the number of
Vietnamese and Somali-born residents in our already culturally diverse population.
The City of Melbourne’s new Multicultural Hub, opposite Queen Victoria Market, hosted more than 400
events and 10,000 visitors in its first full year of operation. Our libraries increased their collections of
books, CDs and DVDs in community languages including Chinese, Hindi, Vietnamese, Indonesian and
Korean.
Throughout the year, the City of Melbourne worked with its partners to support cultural celebrations such
as Chinese New Year and NAIDOC Week. NAIDOC Week 2008 acknowledged Indigenous Australians
with a flag raising ceremony at Melbourne Town Hall and events and exhibitions across the city.
Reconciliation Week 2009 was celebrated with two weeks of sold-out performances of Children’s
Cheering Carpet – Saltbush, a collaboration between the City of Melbourne’s ArtPlay, Italian theatre
company TPO and Indigenous artists. Grants from the City of Melbourne and the Myer Foundation
enabled almost 1,000 children from Indigenous communities across Victoria to be part of the
performances.
Melbourne’s diverse cultures were also celebrated through improvements to the city’s built environment.
In 2008–09 the City of Melbourne and the Victorian Government invested more than $2 million to
establish the three-year Cultural Precinct Improvement Program. The program promotes three main
cultural precincts (Lonsdale Street Greek precinct, Lygon Street Italian precinct and Little Bourke Street’s
Chinatown) and its first major milestone was reached in May 2009 with the unveiling of themed poles at
Chinatown’s Spring Street gateway.
Reducing our ecological footprint (D)
Energy
In July 2008 members of the public toured the City of Melbourne’s Council House 2 building as part of
the first Melbourne Open House. The day demonstrated the energy efficient design features of
Australia’s first six green star-rated commercial office building.
The City of Melbourne reduced its energy consumption by 8.6 per cent (10,009 Giga Joules) in 2008–09
over the previous year, largely due to reduced cooling needs during lower than average summer
temperatures (February’s heatwave being an exception). Renewable sources provided more than one-
fifth of this energy.




                                                      36
                                                                       City of Melbourne        2008–09 Annual Report


Figure 5. City of Melbourne’s total energy and renewable energy use2

                  140,000
                                 Total energy
                  120,000        Renew able energy
                  100,000
      gigajoule




                   80,000

                   60,000

                   40,000

                   20,000

                       0
                             Base 99–00    00–01     01–02 02 –03 03–04     04–05   05–06   06–07   07-08   08-09
                              year
                            (96-97)                                 year


Source: Billing data including the corporate database ‘Stark Essentials’.

The City of Melbourne’s administration buildings, community buildings (such as child care centres),
public lighting and corporate fleet consume electricity, natural gas and automotive fuel. Public lighting
and buildings (for administrative and community use) consumed just under 90 per cent of total energy
use, with electricity and natural gas being the main sources.
Table 6. City of Melbourne energy use by source
Energy use by source                   06–07                                         07–083                 08–094
Electricity (Victorian Grid)                                  52,659                 56,532                 57,786
Electricity (Renewable GreenPower)                            33,496                 34,660                 23,649
Natural gas                                                   14,172                 18,157                 18,457
LPG fuel                                                      193                    431                    492
Unleaded petrol                                               8,509                  6,714                  5,787
Diesel                                                        0                      118                    432
Total energy use (GJ)                                         109,029                116,612                106,603
Source: Billing data including the corporate database ‘Stark Essentials’.




2
 Figures previously published for 2007–08 were estimates and adjustments have been made to reflect actual figures. Due to
billing cycles 2008–09 includes some estimated calculation based on current and season trends. It will be adjusted for the
2009–10 report
3
    Figures previously published for this year were estimates and adjustments have been made to reflect actual figures.
4
  Due to billing cycles this figure includes some estimated calculation based on current and season trends. It will be adjusted for
the 2009–10 report.




                                                                           37
                                                              City of Melbourne   2008–09 Annual Report


Table 7. City of Melbourne energy use by activity
Energy use by activity                            06–07                      07–085                   08–096
Administration – buildings                        19,388                     22,356                   20,211
Administration – corporate fleet                  8,702                      7,264                    6,711
Commercial – buildings                            2,988                      3,434                    2,556
Community use – buildings                         22,407                     23,977                   22,208
Community use – public lighting                   51,574                     55,549                   50,414
Community use – miscellaneous                     3,970                      4,032                    4,503
Total energy use (GJ)                             109,029                    116,612                  106,603
Source: Billing data including the corporate database ‘Stark Essentials’.

Greenhouse gas emissions
Climate science, community expectations and technology have changed significantly since the City of
Melbourne’s 2002 commitment to zero net emissions by 2020. In response, Zero Net Emissions by 2020
– Update 2008 was adopted by the Melbourne City Council in September 2008.
The City of Melbourne’s total greenhouse gas emissions are down by almost one third compared to our
1997 baseline. An increase of 1.8 per cent in the 12 months to June 2009 was largely due to the reduced
amount of renewable energy purchased through revised contractual arrangements. Figures from the last
decade represent a significant downward trend. However, recent increases indicate the purchase of
carbon offsets may need to be considered to achieve our target of 50 per cent reduction in greenhouse
gas emissions by 2010.




5
  Figures previously published for 2007–08 were estimates and adjustments have been made to reflect actual
figures.
6
 Due to billing cycles 2008–09 figure includes some estimated calculation based on current and season trends. It
will be adjusted for the 2009–10 annual report.




                                                                38
                                                                                                City of Melbourne        2008–09 Annual Report


Figure 6. City of Melbourne total direct and indirect greenhouse gas emissions7


                            35,000

                            30,000
    tonnes CO2 equivalent




                            25,000

                            20,000

                            15,000

                            10,000

                             5,000

                                0
                                       Base    99–00   00–01   01–02   02 –03   03–04   04–05    05–06   06–07   07-08   08-09   Target
                                       year                                                                                       2010
                                     (96–97)                                        year

Source: Billing data including the corporate database ‘Stark Essentials’.

August 2008
Melbourne positioned as Australia’s knowledge capital (B)
The Office of Knowledge Capital (OKC) was launched by Governor of Victoria, Professor David de
Kretser, in August 2008. Establishing the OKC and implementing the first year strategic plan was one of
the five key strategic activities for 2008–09.
The initiative positions Melbourne as Australia’s knowledge capital and is backed by the City of
Melbourne, Australian Catholic University, Deakin University, La Trobe University, Monash University,
RMIT University, Swinburne University of Technology, the University of Melbourne, Victoria University
and the Committee for Melbourne.
International students are an important part of Melbourne’s knowledge economy and in 2009 the OKC
created a welcome desk for international students arriving at Melbourne Airport. Students were greeted
by volunteers and provided with important information about the city and its services.
More than 30,000 students call Melbourne home, many of them from overseas. The City of Melbourne’s
welcome event at Federation Square attracted more than 3,500 international students, including 60 who
volunteered to help organise the event. Students reported the event was an excellent introduction to
Australian culture, an opportunity to meet others and a chance to learn about the city’s services and
facilities from Victoria Police, Melbourne Fire Brigade, the Australian Federation of Students, SYnFM
Youth Radio and Essendon Football Club.
In 2008–09 the OKC assisted potential research collaborations on climate change in Victorian industry,
with the completion of stage one of the Victoria–California Climate Change Research Collaboration
framework. The OKC also partnered on the development of the Inner Melbourne Action Plan (IMAP) to
identify opportunities between universities and IMAP-member councils for student internships.



7
  Figures previously published for this year were estimates and adjustments have been made to reflect actual
figures. Due to billing cycles this figure includes some estimated calculation based on current and season trends. It
will be adjusted for the 2009–10 annual report .




                                                                                                 39
                                                     City of Melbourne     2008–09 Annual Report


Record–breaking demand for library services (C)
Melbourne Library Service launched its new catalogue, Aurora, in August 2008. The catalogue features
easy-to-use and improved searching facilities, adding to the service’s accessibility. Opening hours were
extended in 2008–09 with all three branches—City Library, East Melbourne and North Melbourne—now
open seven days a week.
More than one million people visited Melbourne’s libraries over the year, representing an impressive
16 per cent increase in patronage. City Library continues to be Victoria’s busiest public lending library.
The libraries are also an important gathering place for Melburnians to celebrate events such as Cultural
Diversity Week and the arts, including the Acoustica series of musical performances in May 2009.
September 2008
Contributing to Melbourne’s reputation as Australia’s sporting capital (C)
September in Melbourne means football and Melburnians and visitors once again flocked to the city’s
annual AFL Grand Final parade.
Melbourne loves its sport and there was more than one million visits to the City of Melbourne’s recreation
centres, leased recreation facilities and sports fields in 2008–09.
Sports fields in the City of Melbourne are used for a range of activities, from football to frisbee, totalling
around 21,000 organised sports visits each week. Despite drought conditions, careful management by
the City of Melbourne and cooperation from sports clubs meant grounds remained open and sporting
competition continued during the year.
More golfers teed off at the City of Melbourne’s Royal Park Golf Course in 2008–09, with a 4 per cent
increase in the number of rounds played. Melbourne City Baths increased its gym and aquatic
memberships by 8 per cent to 1,700 members and launched a new federal government-accredited
school holiday program attracting 1,750 visits.
The City of Melbourne’s swimming pools rated highly in a safety audit by Lifesaving Victoria in 2008–09.
Four of the municipality’s pools featured amongst Victoria’s five safest pools while Melbourne City Baths
was awarded an excellent 99 per cent safety rating. (Points were only deducted for the concourse width,
which cannot be altered because of the pool’s heritage listing.)
The City of Melbourne revised its Active Melbourne sports strategy in 2008–09. This 10-year strategy
aims to improve Melburnians’ health and wellbeing, meet the challenges of maintaining the city’s sports
fields in drought conditions and provide ongoing opportunities for outdoor physical and health-related
activities.
Melbourne as a canvas for the arts (C)
The continuing development of creative talent is integral to Melbourne. ArtPlay, the City of Melbourne’s
dedicated arts centre for children and families, provided around 450 activities and events in 2008–09.
The Big Draw Festival of Drawing in September 2008 attracted more than 600 participants.
The city’s laneways are a centrepiece of Melbourne’s flourishing arts scene and the 2008 Laneway
Commissions transformed six laneways to celebrate art as part of everyday life. Projects included Agony
/ Ecstasy (Manton Lane) and Speed of Sound (Union Lane).
In 2008–09 Melbourne embraced Dance Massive, a 12-day national dance program across three
venues, including the City of Melbourne’s Arts House. More than 90 per cent of performances sold out.




                                                       40
                                                    City of Melbourne    2008–09 Annual Report


The Arts House Indigenous performance group, Black Arm Band, continued to receive critical acclaim at
national and international festivals and around 5,000 people enjoyed the City of Melbourne’s inaugural
Blak Night cinema, an Indigenous film festival in Treasury Gardens.
The City of Melbourne provides spaces for artworks and spaces for artists. In 2008–09 the former Boyd
High School, part of the Creative Spaces program, was fully tenanted with 50 artists aged 19–80 years.
Launched in February 2009, the program’s website has housed 65 artists to date through its online
listings of available spaces for tenancy or hire and its register of artists seeking space in vacant or under-
utilised buildings.
Other City of Melbourne arts activities in 2008–09 included commissioning a work for the Melbourne
Town Hall’s Grand Organ, in partnership with the Melbourne International Jazz Festival, and the launch
of the inaugural Lord Mayor’s Creative Writing Awards. Photographers created images of sustainable
Melbourne in the Eco City photo competition and sculptors vied for the prestigious Melbourne Prize for
Urban Sculpture, supported by the City of Melbourne.
Better parking for residents and visitors (A)
Managing parking in Melbourne for residents and visitors is crucial to safe, efficient traffic flow. In
September 2008, Melbourne City Council endorsed the CBD and Docklands Parking Plan 2008–2013, a
coordinated guide to managing parking in these areas.
Construction of the northern entrance car park at Melbourne Zoo was also completed. Ticketed parking
now operates at all zoo car parks and a new nominal fee has been introduced to discourage commuter
parking and ensure spaces for zoo visitors.
Victoria Police and the car parking industry partnered with the City of Melbourne in a range of safe
parking operations including the launch of the Car Park Accreditation Scheme and Guidelines. The
scheme provides a comprehensive guide for operators to improve car park safety and an accreditation
rating system to promote and reward participating car parks.
On-street car parking for residents was also improved in 2008–09 with the Wheels and Heels program
introduced to North Melbourne. Wheels and Heels provides local parking solutions to local areas,
maximising resident access to parking in areas where on-street spaces are limited.
Promoting responsible pet ownership (C)
In September 2008, the council adopted and started implementation of the City of Melbourne Domestic
Animal Management Plan 2008–2011. Initiatives undertaken in 2008–09 included identifying strategies
to increase registration rates of cats and dogs in the municipality, reviewing staff training relating to
animal control and regulation and commencing a review of council's local laws to identify possible
amendments relevant to animal management. The first annual statutory review of the plan, as required
under the Domestic Animals Act (1994), will occur in the 2009–10 financial year.
October 2008
Sorting out safety (C)
In October 2008, the City of Melbourne facilitated the first of two safety summits, bringing together
Victoria Police, Liquor Licensing Victoria and other Victorian Government departments as well as the
Victorian Taxi Directorate, taxi operators and health and welfare organisations to identify more than 50
actions to improve city safety.
Community Safety Day was also in October. The event included an impressive display of helicopters,
boats, fire trucks and other emergency services and was enjoyed by a crowd of 35,000 at Docklands.




                                                     41
                                                    City of Melbourne    2008–09 Annual Report


The City of Melbourne invested $1.8 million in the installation of 31 additional safety cameras in the city
in 2008–09, bringing our total number of cameras to 54. The project represents a significant commitment
by the City of Melbourne and its partners – CitiPower, VicTrack, Yarra Trams, Victoria Police, VicRoads
and other authorities.
The City of Melbourne’s commitment to safety was highlighted locally and internationally in December
2008 with the launch of Grogger, an online game reinforcing pedestrian safety, promoting responsible
alcohol consumption and the importance of planning safe travel home after a night out. Media and online
coverage of the game was so extensive the City of Melbourne’s website crashed briefly from an overload
of players.
Melburnians had a chance to play Grogger on the big screen as part of a Melbourne City Safety Event in
December 2008 at Federation Square. This event also announced the winners of the Lord Mayor’s
Safety Awards which recognised six champions of city safety.
Planning Scheme Amendment C141 continued to be developed in 2008–09 and was open for public
comment in early 2009. Amendment C141 will provide the council with policy to better plan and manage
the location and impact of licensed premises, promoting a safer community and providing clarity for
owners and operators of licensed premises in areas such as patron number, hours of operation and
noise.
Championing Melbourne’s hospitality sector (B)
The City of Melbourne launched its Melbourne Hospitality Strategy 2008–2012 in October 2008. Based
on the recommendations of the Melbourne Hospitality Advisory Board, the strategy focuses on the city
as a leading hospitality destination, renowned for its diversity, cultural richness, professional services
and consistent quality.
The City of Melbourne also teamed up with 28 dining venues across the city for the Summer Serve
campaign to support special dining deals during the Australian Open. Participating restaurants reported
a good response from their customers to the promotion and some reported an increase in business for
the campaign period.
In 2008–09 the City of Melbourne and Nutrition Australia worked with take-away food outlets in the QV
Urban Market to pilot a program that helps city shoppers and workers make informed choices about what
they eat. Green Light, Eat Right’s ‘traffic light’ menu system for determining nutritional value received
extensive radio and press coverage with several businesses reporting more sales of green-coded foods
(those with higher nutritional value). The program will be evaluated in 2009–10 to consider its extension
to other parts of the city.
November 2008
Attracting and retaining the best staff (E)
The City of Melbourne’s Attraction and Retention Framework was launched in November 2008 to
support staff development in line with the organisation’s needs.
The City of Melbourne is one of the city’s largest employers. From child care workers, fitness instructors,
administrators and event managers to planners, analysts, traffic managers and customer service
specialists, having the right mix of skills and abilities is crucial to the organisation’s success across its
broad range of activities.
The Attraction and Retention Framework’s website helps staff identify career paths and access the
organisation’s development opportunities. This includes the Corporate Learning and Development
Program, which provided 190 workshops such as leadership development, risk management and cultural




                                                     42
                                                   City of Melbourne    2008–09 Annual Report


awareness to staff in 2008–09. Nineteen staff also participated in nationally-accredited Diploma of
Management or Master of Business Administration programs, managed through Deakin University’s
DeakinPrime.
Since implementing the Attraction and Retention Framework, the ratio of internal appointments to total
appointments has increased by 30 per cent. Voluntary staff turnover for the organisation has decreased
to 8 per cent in 2008–09, from 13 per cent the previous year.
For more details on City of Melbourne staff, see page 28.
Strengthening international relationships through sister cities (B)
In November 2008 the City of Melbourne commemorated its 25-year sister city relationship with
Thessaloniki by unveiling a gift from the Greek city, a marble stele in Lonsdale Street. The 20th
anniversary of the Melbourne–St Petersburg relationship was also celebrated in 2008–09 with a
performance in St Petersburg by students from the University of Melbourne’s Faculty of the VCA and
Music and St Petersburg Conservatory.
Sister cities Melbourne and Boston celebrated their shared strengths as knowledge cities and centres of
medical excellence by announcing Dr Robert Anderson as the Melbourne Boston Medical Research
Exchange Fellow for 2009. Dr Anderson will work in Boston researching alternative diets for those with
coeliac disease, as part of the City of Melbourne and Melbourne Boston Sister Cities Association
program.
The highlight of Melbourne’s sister city relationships for 2008–09 was the 30-year anniversary of the
bond between Melbourne and Osaka, Japan. Around 50,000 people visited the celebratory exhibition,
Kimono – Osaka’s Golden Age, which achieved a higher average daily visitor rate than any previous
exhibition at the Immigration Museum. Extensive media coverage of the event provided Melburnians with
an insight into the culture of our sister city.
Melbourne has six sister cities and one strategic city alliance. These are:
   Osaka, Japan
   Tianjin, China
   Thessaloniki, Greece
   Boston, USA
   St Petersburg, Russia
   Milan, Italy
   Delhi, India (strategic alliance).


Positioning Melbourne as a leading tourism destination (C)
Malaysian low cost carrier, Air Asia, launched direct services to Melbourne in November 2008 and the
United Arab Emirates national carrier, Etihad Airways, also launched direct services to Melbourne in
2008–09. The opportunities presented by these new services for tourism, business and education-
related travel were welcomed by the Melbourne Airline Development Group comprising the City of
Melbourne, Tourism Victoria and Melbourne Airport.
In the 12 months to June 2009, the City of Melbourne’s visitor services network including the Melbourne
Visitor Centre at Federation Square, the Melbourne Visitor Booth in Bourke Street Mall, the City
Ambassadors program and the Melbourne Greeter Service helped 2 million international and domestic
visitors.




                                                     43
                                                    City of Melbourne    2008–09 Annual Report


The services rated highly in our May 2009 survey of visitors with 98 per cent of respondents saying they
would recommend the City of Melbourne’s tourism services. These services are supported strongly by
volunteers and this high rating is recognition of the important role volunteers play in the life of the city.
Melbourne’s Indigenous and international student communities were provided with opportunities to be
part of the City of Melbourne’s tourism services in 2008–09. The City of Melbourne partnered with AFL
SportsReady Traineeships and Swinburne University for the Indigenous Trainee Program. Two
hospitality students completed internships with the City of Melbourne’s tourism branch and three
international students completed training and now volunteer as City Ambassadors.
December 2008
Council election result declared (E)
Melbourne’s new Lord Mayor, Deputy Lord Mayor and seven councillors were sworn in on 4 December
2008.
All councillors are elected by residents, owners, occupiers of rateable property, and representatives of
corporations that own or occupy rateable property within the municipality.
The 2008 elections were conducted by postal vote with votes closing on Friday, 28 November 2008. The
number of voters enrolled was 97,855. The participation rate (total number of votes received as a
percentage of the total enrolment) was 62.14 per cent for the leadership team and 62.26 per cent for the
councillors.
Subject to limited statutory exceptions, voting is compulsory for every enrolled voter.
The Melbourne City Council election results were declared on Tuesday, 2 December 2008. The next
elections will be held in November 2012.
See page 14 for more detail about Melbourne City Councillors.
Melbourne adapts to the big dry (D)
Drought continues in south-eastern Australia. With an increasing population and the impacts of climate
change, Melbourne’s water supply and management is under increasing pressure.
Drought proofing is an important water management strategy and in December 2008 a 6 megalitre
underground water storage tank was installed at Ross Straw Oval, adding significantly to the water
storage capacity associated with Royal Park wetlands. Other drought proofing works in 2008–09
included rainwater harvesting at sporting pavilions, stormwater diversion into ponds at Fitzroy and
Treasury Gardens, replanting park lawns with warm season grasses and grey water recycling at
Flagstaff Gardens.
Public consultation on our water strategy, Total Watermark – City as a Catchment, opened in July 2008
and the strategy was adopted by the Melbourne City Council in October. The strategy sets out local
waste management solutions and proposes meeting most of the municipality’s water needs through
stormwater runoff from roads and footpaths, capturing rain from rooftops and improving the water quality
in our waterways.
Reducing water use
The City of Melbourne currently uses around 6 per cent of the total water consumed in the municipality.
Water consumption has fallen by more than half in the past decade. Two significant factors in reducing
the city’s water use have been our Water Conservation Plan 2007 and the use of reclaimed stormwater
from the Royal Park Wetlands.




                                                     44
                                                              City of Melbourne       2008–09 Annual Report


Total water use increased over the last financial year due to a long-term lack of rain coupled with days of
extreme temperatures during the 2008–09 summer, which required additional water to prevent long-term
damage to parks.
Figure 7. Water use by the City of Melbourne, 1999–20098

           1600                                                              Reclaimed water
           1400                                                              Potable (drinking) water

           1200

           1000
    year




           800

           600

           400

           200

             0
                    Base    00–01   01–02   02–03   03–04   04–05    05–06   06–07    07-08    08-09
                    year
                  (99–00)                            gigalitre

Source: Billing data including the corporate database ‘Stark Essentials’.

The City of Melbourne’s parks (open spaces), administration buildings, community buildings (such as
child care centres) all use water. Water used to irrigate open spaces accounted for almost 93 per cent of
our total water use.




8
 Due to billing cycles the 2008–09 figure includes some estimated calculation based on current and season trends. It will be
adjusted for the 2009–10 annual report




                                                                45
                                                              City of Melbourne          2008–09 Annual Report


Figure 8. Water use by activity9
    1,600

    1,400

    1,200

    1,000

     800

     600

     400

     200

       0
            99-00     00–01     01–02      02–03     03–04      04–05       05–06      06–07    07–08     08-09
           (base
            year)
        Open space irrigation    Adm inistration buildings    Com m ercial buildings      Com m unity use buildings


Source: Billing data including the corporate database ‘Stark Essentials’.

January 2009
Premier events city (C)
Melbourne welcomed the first day of January 2009 with spectacular fireworks and entertainment across
the municipality. The City of Melbourne’s family friendly, city-wide event attracted an estimated crowd of
450,000 people and demonstrated why Melbourne is Australia’s premier events city and home
to significant national and international events including the Victoria Spring Racing Carnival, the
Australian Open, the Skandia Docklands Invitational and Melbourne Comedy Festival.
The City of Melbourne invested $7.4 million in 2008–09 to support an extensive events calendar, which
generates activity in the city’s accommodation, dining and retail sectors. The city’s events attract an
estimated 5.3 million people to the municipality.
In 2008–09 the City of Melbourne funded 66 organisations through its Event Partnership Program and
another 13 significant events received triennial funding. We continued to produce and deliver our own
high-quality major events program including a new look Moomba, Melbourne Spring Fashion Week, the
Ignite Winter Festival at Docklands and the popular Summer Fun in the City which included events in
Melbourne’s parks and gardens, open spaces and waterfronts.
Melbourne welcomed the nation’s Olympians home from Beijing following the 2008 Olympic Games.
Around 30,000 people attended the Happy Homecoming parade hosted by the City of Melbourne, the
Victorian Government and the Australian Olympic Committee.
In 2008–09 the City of Melbourne established a pilot process for streamlining the receipt of event-related
permits under the Building Act 1993 (Vic), with approval of three-year (rather than annual) permits for


9
 Due to billing cycles the 2008–09 figure includes some estimated calculation based on current and season trends. It will be
adjusted for the 2009–10 annual report




                                                                46
                                                     City of Melbourne    2008–09 Annual Report


major events. The Spring Racing Carnival was the first event to receive a new permit and work is
continuing to provide other major events with these extended permits.
Ensuring shade on hot summer days (D)
Summer’s hot weather presented a challenge for protecting the City of Melbourne’s heritage trees from
heat stress. Many of the city’s trees are old and vulnerable to heat and in January 2009 water supply to
trees was increased using additional recycled water. Monitoring of recycled water also increased in the
municipality’s wetlands.
Melbourne’s trees are a treasured part of the city’s landscape and in September 2008 and June 2009
community planting days saw 325 community members add 8,300 drought tolerant plants to the city. In
addition, the Capital Planting Program placed 1,500 advanced trees in the ground including 85 at
Birrarung Marr, 25 at Haymarket Roundabout and 34 at McCracken Street, Kensington.
Longer term management of trees was also addressed in 2008–09 with the development of the draft
Tree Strategy for Docklands in conjunction with VicUrban and a five-year tree strategy for the Shrine
Reserve.
February 2009
Providing relief to Victorians affected by the Black Saturday fires (C)
Victoria’s bushfires in February 2009 brought out the spirit of compassion and philanthropy across
Melbourne and Australia. The City of Melbourne and the Lord Mayor’s Charitable Foundation, like many
organisations and communities, responded to the devastation. A $1 million package comprising cash,
the use of community facilities and in-kind support was announced to help victims and organisations
dealing directly with the fires’ aftermath.
Celebrating our community (C)
In early 2009 the City of Melbourne’s process for grants and sponsorships was streamlined to make
financial support more accessible and transparent. In 2008–09 we provided more than $15 million for
community activities such as local arts and culture, community service, the environment, events,
business, tourism and sport initiatives.
The 2009 arts grants, for example, provided $1.3 million to more than 100 projects and generated $3.2
million in arts activities across the city. Around 700 artists were involved in these projects and half of the
projects were free to the public. All art forms were represented and around a third of projects had a
multicultural perspective. The 2008 Triennial Arts Grants Program prompted 2.1 million visits to the city
and supported 4,500 events involving more than 10,000 artists.
The prestigious 2008 Melbourne Awards recognised nine corporations, community organisations and
individuals, nominated by the public for their contribution to the city. Renowned yachtsman and
America’s Cup skipper, John Bertrand, was awarded Melburnian of the Year for his philanthropic work
with the Alannah and Madeline Foundation and the Sport Australia Hall of Fame.
Supporting families, young people and children (C)
In 2008–09 the City of Melbourne invested heavily in services for families and children. February 2009
saw the opening of The Harbour at Docklands, a new $9.5 million childcare and maternal and child
health centre. The City of Melbourne was the major financial contributor to this facility providing almost
$7 million in funding.
The Harbour provides 150 childcare places and integrated services for families and children. It was
established in a partnership between the City of Melbourne, VicUrban, Lend Lease and not-for-profit




                                                      47
                                                      City of Melbourne     2008–09 Annual Report


childhood education specialist Gowrie Victoria. The buildings feature sustainable elements such as
rainwater harvesting and solar energy.
Other investments in childcare by the City of Melbourne included a $2 million expansion and
refurbishment of the Kensington Childcare Centre and the start of work on $1.7 million in renovations
and upgrades to the Fawkner Park Childcare Centre.
Our free parenting information program operated in the municipality’s community centres during May
2009. Planning for future services continued with Melburnians invited to provide feedback on our new
policy for young people and our Municipal Early Years Plan 2009–2013.
Seniors contributed ideas about our planning and services through the Melbourne Seniors Network
forum and the City of Melbourne supported its senior citizens by offering grants of up to $500 to
subsidise community meals, outings and events.
March 2009
Reducing waste across the city (D)
Collecting and disposing of waste from residences, businesses and public space is an important role of
the City of Melbourne. In March 2009, public comment was invited on our draft service standards for
waste collection and storage in the central city. The standards are designed to improve amenity,
particularly for Melbourne’s renowned laneways, with prescribed collection hours, safe and clean storage
of bins and a range of other measures.
More than 100 submissions were received expressing a high level of support for the standards (87 per
cent of submissions). Council approval and implementation of the standards is scheduled for 2009–10.
The City of Melbourne partnered with the Butt Littering Trust to target cigarette butt litter in 2008–09.
While a December 2008 audit of butt litter in the central city indicated less of this type of litter compared
with two years ago, cigarette butts still continue to be the main source of rubbish in city streets.
The Butt Free City campaign increased enforcement and education on the streets and was supported by
the installation of new cigarette bins across the city. A litter blitz followed up these initiatives with on-the-
spot litter fines issued.
The City of Melbourne worked with the EPA to conduct litter campaigns at railway stations. Our street
compliance officers are on the streets every day and the targeted campaigns will continue to be held
quarterly.
Managing our own waste
As the owner of administration buildings and facilities across the municipality, and as a large employer,
the City of Melbourne is also a generator of waste.
Since 2003–04, City of Melbourne staff have dramatically increased the percentage of waste they
recycle from 36 per cent to 75 per cent. In the same period waste to landfill per employee reduced by 50
per cent, from 58 kilograms per employee to 29 kilograms.




                                                       48
                                                    City of Melbourne      2008–09 Annual Report


Figure 9. Total City of Melbourne staff waste to landfill and waste recycled

                                                    Waste recycled
            160
                                                    Waste to landfill
            140
            120
            100
   tonnes




            80
            60
            40
            20
             0
                  03–04           06–07             08-09
                                  Year



Source: Biennial waste audit

Waste audits are conducted every second year throughout the organisation and include waste from
administrative buildings and child care centres. A breakdown of waste by activity and waste by type,
compared to base year 2003–04 is provided in the two tables below.
Table 8. A breakdown of waste by activity at the City of Melbourne

Waste by activity (compared with previous audit)               Base year03–04           08–09
Administration buildings                                       62                       95
Community use buildings (child care)                           24                       27
Total waste (tonnes)                                           86                       122
Source: Biennial waste audit.
Total waste (table 8) refers to all materials including landfill, recyclables, organics and paper. While the
organisation consumed more than the base year 2003–04, less total waste was generated than last
year.
Table 9. A breakdown of waste by type at the City of Melbourne
                                                               Base year
Waste by stream (compared with previous audit)                                          08–09
                                                               03–04
General waste (to landfill)                                    55                       30
Recycling (compost)                                            0                        20
Recycling (bottle/can)                                         2                        2
Recycling (paper)                                              29                       51
Recycling (co-mingled)                                         0                        19
Total waste (tonnes)                                           86                       122
Source: Biennial waste audit.




                                                      49
                                                   City of Melbourne    2008–09 Annual Report


Developing Docklands, Melbourne’s waterfront suburb (A)
In March 2009 the Melbourne City Council approved the Docklands Waterways Strategic Plan 2008–
2018. The plan was developed in partnership with VicUrban and Parks Victoria and sets out a vision for
ensuring quality development and management of the area’s waterways and waterfront spaces, new
facilities to support diverse uses and equity and ease of access to Docklands for all Melburnians. Work
on prioritising and delivering on the plan’s recommendations also started in 2008–09.
The City of Melbourne continues to broaden the appeal of Docklands to residents, businesses and
visitors. In August 2008 the Docklands community was invited to be part of a Working Together for
Melbourne forum to share ideas and discuss local issues with councillors and senior City of Melbourne
staff.
A diverse program of events organised by the City of Melbourne attracted visitors to Docklands
restaurants, venues and public spaces throughout the year. This included New Year’s Eve fireworks,
music and other celebrations. A winter program of events, Ignite at Docklands, featured fire and light-
themed performances, installations and entertainment. In June 2009, the City of Melbourne’s Waterfront
Marina hosted movies on the water for the area’s boating community.
April 2009
Street talk: Swanston Street (A)
In April 2009 the community was invited to participate in the Melbourne City Council’s most extensive
consultation for 2008–09, the Swanston Street community engagement program. Users of Swanston
Street were provided with seven options for the street’s future development and asked to comment
through online discussion and direct submission.
More than 5,000 people, and organisations such as Metlink and RMIT University, responded to the
council’s call for comment. The majority of respondents favoured less vehicle traffic in the street and the
results will be used in 2009–10 to further refine options for Swanston Street’s future.
Making it easier to get around the city (A)
In April 2009 the City of Melbourne improved the flow of bicycle traffic in the city’s main spine, Swanston
Street, by working with stakeholders including the Victorian Bus Association. Tour bus companies
received notice to relocate bus operations from the street to Federation Square. Traffic alterations and
infrastructure works by the City of Melbourne supported this move.
The City of Melbourne’s 2008 Bicycle Account Cycling Census found bicycle traffic in the city increased
significantly on the previous year, up 43 per cent with an average 6,800 cyclists now riding into the city
from 7am to 10am each day.
New bridges and other initiatives to promote the safe and efficient flow of vehicles, public transport,
bicycles and pedestrians added to the city’s accessibility in 2008–09. A new pedestrian and bicycle
bridge was completed across the Yarra River connecting the north and south banks near the new
Melbourne Exhibition and Convention Centre. The City of Melbourne contributed $11.2 million with a
further $5.9 million allocated in 2009–10 to this project.
Works on the Manningham Street (Parkville) pedestrian and bicycle bridge were also substantially
completed at a cost of $2.3 million.
The City of Melbourne, with its Inner Melbourne Action Plan partners, worked to upgrade bicycle
connections across the inner region and manufactured ‘wayfinding’ signs for pedestrians and public
transport users for installation across the region in early 2009–10. Traffic light changes were also
implemented at 20 demonstration sites across inner Melbourne to improve pedestrian safety.




                                                    50
                                                   City of Melbourne   2008–09 Annual Report


Ensuring mobility and access for people with a disability is important for the efficient movement of people
around a city. In 2008–09 the Melbourne City Council approved ongoing funding for the Melbourne
Mobility Centre. The centre provides mobility equipment and access to city facilities for around 400
people a month and this year included a satellite service at the popular Melbourne Flower and Garden
Show.
In addition, the City of Melbourne’s Metro Access program provided grants to support access for around
1,000 people to events celebrating International Day of Persons with a Disability. The Melbourne Gift, a
race for people with disabilities, proved extremely popular and this event will now be incorporated into
Melbourne’s annual calendar of recreation events.
A new school crossing coordinator position was created by the City of Melbourne in 2008–09 to help
keep children safe on their journey to and from school. The position manages the school crossing
program, freeing up enforcement staff resources for other traffic management duties.
Four primary schools volunteered to host our popular school crossing safety education program in the
second half of the year.
May 2009
Leadership and excellence recognised (E)
In May 2009, the City of Melbourne and Sustainability Victoria shared their knowledge and experience of
tackling climate change at the C40 Summit in Seoul, South Korea. Melbourne was one of 80 cities to
discuss the challenges they faced and highlight sustainability projects such as Melbourne’s innovative
1,200 Buildings program.
The City of Melbourne’s leadership in sustainable water management was recognised in 2008–09 with
two Banksia Environmental Foundation Awards. Melbourne’s parks and gardens team won the national
Local Government Award for its Managing Drought in the City of Parks project and Director of Design
and Urban Environment, Professor Rob Adams AM, received the Prime Minister’s Environmentalist of
the Year Award.
The City of Melbourne’s Future Melbourne Community Plan, and the extensive process of consultation
that informed the plan, also received recognition in 2008–09, winning the Local Government Award at
the Planning Excellence 2008 Victorian Awards and sharing the Planning Institute of Australia’s
President’s Award with the City of Sydney.
Leadership in customer service and legislative knowledge in subdivision management was
acknowledged when, together with the City of Port Phillip, the City of Melbourne was awarded the
Association of Consulting Surveyors Victoria biennial Municipal Excellence Award (2007–08).
However, our leadership is demonstrated by more than awards. In June 2009 the City of Melbourne
hosted a discussion with researchers from across Australia and overseas about evidence-based
planning and decision-making. More than 90 delegates provided their insights and experience in city-
specific research at the City of Melbourne’s inaugural State of the Cities conference.
Supporting business innovation (B)
A healthy business sector is vital to a well-functioning city. In May 2009 the City of Melbourne supported
the Victorian Government Koori Business Network’s Yulkuum-Jerrang: 2nd Indigenous Economic
Development Conference and trade show with financial and in-kind support. The event provided an
opportunity for the Indigenous business community to network and promote their products as well as for
the City of Melbourne to promote its work to the Indigenous community.




                                                    51
                                                      City of Melbourne    2008–09 Annual Report


Small business grants provided by the City of Melbourne in 2008–09 are expected to generate 102 new
jobs, $17 million in turnover and more than $2 million in investment. The grants provided up to $30,000
of financial support to each successful applicant and 21 grants were allocated over two funding rounds in
October 2008 and June 2009.
Grants included start-up funds for a behind-the-scenes tour of Melbourne’s racing industry, research and
development assistance for a company supplying the aerospace and marine industries and expansion of
an organic skincare company’s products to an export market.
In 2008–09 student entrepreneurs had the opportunity to demonstrate their business creativity in the City
Pillar Challenge. The City of Melbourne partnered with the Australian Academy of Design, Australian
Catholic University, RMIT University, Victoria University, William Angliss Institute and the University of
Melbourne to offer students the chance to develop and operate a business from one of five news stand
pillars. The winning proposals were a hydroponic green wall system and a retail space dedicated to
locally-produced products. Melbourne’s next generation of business leaders will bring these ideas to
fruition in 2009–10.
In June 2009 Melbourne City Council announced its intention to establish a one-stop-shop model for
business development in the city with the establishment of Enterprise Melbourne in 2009–10.
June 2009
Tackling homelessness and providing affordable housing (C)
The City of Melbourne and its partners are working on a number of initiatives to provide long-term
solutions to homelessness, some of which were reported in last year’s annual report. Many of these
initiatives and some new ones have progressed with one of the most significant, the sale of the Drill Hall
for affordable housing, completed in June 2009.
The City of Melbourne sold the Drill Hall building near Queen Victoria Market to Melbourne Affordable
Housing for $10, enabling the development of units for people on lower and fixed incomes. In addition,
the City of Melbourne transferred ownership of a parcel of land in Elizabeth Street to Yarra Community
Housing to contribute to an affordable housing development.
The results of the City of Melbourne’s first homeless street count were released and a second count
conducted during 2008–09. The City of Melbourne also partnered with other local councils to provide
health and regulatory information to rooming house owners and operators across inner Melbourne.
In December, Melbourne hosted the 2008 international street soccer tournament, the Homelessness
World Cup. Held in Federation Square, the City of Melbourne supported this event with cash and in-kind
contributions. A specially-funded medical training program gave participants the chance to develop first
aid skills and assist medical staff at the event.
Planning for Melbourne’s future (E)
Melbourne City Council elections in 2008–09 and the final year of the Council Plan 2005–2009 was an
opportunity to revise objectives for the city and prioritise the organisation’s activities to align with current
needs and demands.
The adoption of Council Plan 2009–2013, incorporating the municipal public health plan, in June 2009
was the result of six months of extensive planning. The result is a new four-year agenda which responds
to the needs of the growing city and community and broadly allocates resources needed to achieve it.
The new Council Plan is inspired by the six high-level goals of Future Melbourne Community Plan, which
was endorsed by the council in September 2008. Future Melbourne is a long-term plan for the city. It




                                                       52
                                                City of Melbourne   2008–09 Annual Report


was written through an open and public consultation process: a process acknowledged as outstanding
practice by the Planning Institute of Australia in March 2009.
For more information about our Council Plan and its implementation, see Looking Ahead on page 59.


Supporting Melbourne as an events city: events in 2008–09
(Note: S = supported by City of Melbourne; O = owned; M = managed)
July 2008
Aria Hall of Fame (S)
Days in the Dioceses Melbourne 2008 (S)
Days in the Dioceses Melbourne 2008 – Commissioning Mass (S)
Melbourne International Film Festival (S)
Olympic Dream Run 2008 (S)
NAIDOC Week (S)
Circus Oz (S)
Kimono – Osaka’s Golden Age exhibition (S)


August 2008
National Science Week (S)
The Age Melbourne Writers' Festival (S)
Boite Melbourne Millennium Chorus
AFL Cup Exhibition (S)
Melbourne Victory Football Club Hyundai A-League 2008–09 (S)
Festival Indonesia (S)
Melbourne Awards 2008 (O,M)
Melbourne Day 2008 (O,M)
September 2008
Asian Food Festival (S)
Melbourne Spring Fashion Week 2008 (O,M)
MSO Pops – The Best of West End (S)
Melbourne Workers Theatre: The Zombie State (S)
Australian Wadaiko Festival (S)
Toyota AFL Finals Series (S)




                                                 53
                                                 City of Melbourne   2008–09 Annual Report


Spring Into Shape 2008 (S)
Olympic Welcome Home Celebration (S)

Children's Lantern Festival (S)

Toyota AFL Grand Final Week & Live Site (S)
Melbourne Fringe Festival 2008 (S)
Toyota AFL Grand Final Parade (S)
Toyota AFL Grand Final 2008 (S)
Parklife Music Festival (S)
2008 Australian University Games (S)
October 2008
Melbourne International Arts Festival (S)
Australian Centre for Contemporary Art: Intimacy (S)
North and West Melbourne Spring Fling Festival (S)
Samsung Melbourne Marathon 2008 (S)
National Ride to Work Day 2008 (S)
Jayco Herald Sun Tour (S)
Diwali Festival of Light (S)
Around the Bay in a Day (S)

‘Go for your life’ Melbourne City Romp (S)

Eureka Tower Charity Challenge (S)
Spring Into Shape 2008 (S)
Get Into (Melbourne) Art (S)
International Rules (S)
November 2008
Melbourne Cup Carnival live sites and activities (S)
Melbourne Cup Carnival 2008 (S)
Emirates Melbourne Cup Parade (S)
Crown Oaks Day (S)
Christmas – Santa's Grand Arrival (O,M)
Emirates Stakes Day (S)
Thessaloniki Festival (S)




                                                   54
                                                  City of Melbourne   2008–09 Annual Report


Christmas – Tree Lighting Spectacular (O,M)
Myer Store Windows launch – Myer Christmas Parade (S)
Spring Into Shape 2008 (S)
Australasian World Music Expo (S)
Women's Circus (S)
Festival of Jewish Cinema (S)
Human Rights Arts and Film Festival (S)
World AIDS Day Concert (S)
Australian Lebanese Festival (S)
Victorian Dragon Boat Season (S)
December 2008
Homeless World Cup Cultural Festival (S)
Federation Square Christmas Advent Calendar (S)
50th Annual L'Oréal Paris AFI Awards 2008 (S)
Tattersall's IDSF World Latin Championship (S)
Australian DanceSport Championship (S)
Chanukah in the City 2008 (S)
Vision Australia Carols By Candlelight (S)
Melbourne Symphony Orchestra: Handel Messiah (S)
3 mobile Boxing Day Test Match (S)
Melbourne Boxing Day Test – Live Site (S)
New Year's Eve 2008 (O,M)
January 2009
Summer Fun in the City 2009 (O)
Australian Open (S)
Skandia Docklands Invitational (S)
Australia Day 2009 (S)
Chinese New Year 2009 (S)
Melbourne International Boat Show (S)
Multicultural Arts Victoria: Mix it up – gypsy kings and queens
February 2009
Sustainable Living Festival 2009 (S)




                                                   55
                                              City of Melbourne   2008–09 Annual Report


Unity Fun Run (S)
Movie Extra Tropfest (S)
Melbourne Summer Cycle 2009 (S)
Victoria Harbour School Sailing Series (S)
Malthouse Theatre: Woyzeck (S)
21st Midsumma Festival (S)
March 2009
Moomba Waterfest (O,M)
Moomba Parade (O,M)
Melbourne Food and Wine Festival 2009 (S)
L'Oréal Melbourne Fashion Festival 2009 (S)
The Antipodes Glendi Festival (S)
St Jerome's Laneway Festival (S)
Thai Culture and Food Festival (S)
Formula 1 Australian Grand Prix 2009 (S)
Melbourne Queer Film Festival (S)
Blak Night Cinema (O)
April 2009
Melbourne International Flower and Garden Show (S)
Melbourne International Comedy Festival (S)
Herald Sun Run for the Kids (S)
Australian Centre for Contemporary Art: NEW09 (S)
Melbourne International Jazz Festival (S)
Purcell Gala (S)
Way of the Cross (S)
La Plaza De Mercado 2009 (S)
Melbourne International Jazz Festival (S)
Dutch Orange Day (S)
May 2009
Melbourne Dance Expo 2009 (S)
Mothers Day Classic (S)
Melbourne Italian Festival 2009 (S)




                                               56
                                                City of Melbourne   2008–09 Annual Report


Reconciliation Week (S)
Emerging Writers’ festival (S)
Children’s Cheering Carpet – Saltbush (S)
Buddha's Day and Multicultural Festival (S)
June 2009
Melbourne Winter Masterpieces: Salvador Dali Liquid Desire (S)
Melbourne Winter Masterpieces: A Day in Pompeii (S)
2009 Harvey Norman State of Origin Game 1 (S)
Ignite @ Docklands (S,M)
Run Melbourne presented by The Age (S)
Mabo Day Concert (S)


Involving the community in city planning: public consultations in 2008–09
   Total Watermark – City as a Catchment
   CBD and Docklands Parking Plan 2008–2013
   Climate Change Adaptation Strategy
   Working Together for Melbourne, CBD community forum
   Future Melbourne forum – change and social inclusion
   Working Together for Melbourne, Docklands community forum
   Policy for the 24-hour city
   Draft Animal Management Plan
   2008 council election process forum
   Draft Tree Strategy for Docklands, with VicUrban
   Five-year tree strategy for Shrine Reserve
   Draft Docklands Waterways Strategic Plan consultation
   North Melbourne Open Space
   Creating a city for young people policy
   City Safety summit
   Melbourne Licensees summit
   Eades Park consultation
   Boyd school community consultation
   Policy for licensed premises that require a planning permit
   Business leader consultation program
   Draft waste service standards
   Submission of names for new Yarra pedestrian bridge invited
   Swanston Street community engagement program
   Graffiti Management Plan




                                                 57
                                                 City of Melbourne   2008–09 Annual Report


   Council Plan 2009–2013
   2009–10 Annual Plan and Budget


Leading by example: Awards received 2008–09
   Professor Rob Adams AM, City of Melbourne Director of Design and Urban Environment, Prime
    Minister’s Environmentalist of the Year, Banksia Environmental Awards 2008
   Drought management of parks, Local Government Award, Banksia Environmental Awards 2008
   2008 Award for Planning Excellence in Local Government, Planning Institute of Australia Victorian
    Division for Future Melbourne Community Plan
   Award for Outstanding Planning Practice, Planning Institute of Australia, (joint winner) for Future
    Melbourne Community Plan
   2008 Australian Safer Communities Awards for our Emergency Management Preparedness Program
    for People with a Disability, High Commendation
   Melbourne City Baths, Victorian Fitness Centre of the Year 2008, Fitness Victoria
   Institute of Public Administration Australia, Public Sector Awards 2008:
             o Finalist, Healthy and Safe Workplace Award
             o Winner, Altitude program
   Association of Consulting Surveyors Victoria Biennial Municipal Excellence Award (2007–2008)
   2009 Highly Commended Subdivision Officer awarded to Leon Wilson of the City of Melbourne by
    Association of Consulting Surveyors Victoria
   Joint category winner for Leading Community Greenhouse Actions, National Awards for Local
    Government, Australian Government Department of Infrastructure
   Australasian Reporting Awards, finalist, Electronic (online) Reporting
   Workforce Victoria, Department of Innovation, Industry and Regional Development, winner of Fair
    and Flexible Employer Recognition Award 2009–10
   Waste Wise Gold Certification award, Sustainability Victoria
   Melbourne Visitor Centre and Visitor Booth, City Ambassadors program and Melbourne City Tourist
    Shuttle awarded Green Globe accreditation




                                                  58
                                                    City of Melbourne    2008–09 Annual Report


Looking ahead
This annual report is the final report measuring the City of Melbourne’s performance against Council
Plan 2005–2009 and the objectives developed by the previous council. When this Council Plan was
developed, Melbourne was gearing up to host the Commonwealth Games and ‘youtube’ was making its
debut on the internet.
Much has changed in four years. Digital broadcasting and social networking are changing the way we
communicate and spend our leisure time. The fragility of our environment has been highlighted through
Victoria’s prolonged drought and the fragility of the world’s economy—and its impact on organisations,
businesses and people—has been revealed through the global financial crisis.
Melbourne, like other cities worldwide, faces challenges in providing infrastructure and services for an
increasing (and increasingly diverse) population while minimising its ecological footprint and responding
to the impacts of global finances.
The Council Plan 2009–2013 was developed with these challenges, and the city’s strengths, in mind.
The Future Melbourne Community Plan, endorsed in September 2008, provides the overarching
structure for Melbourne City Council’s committee structure and the framework of the Council Plan 2009–
2013.
Over the next four years, the council will invest around $1.3 billion to implement its Council Plan. This will
include capital works, services, facilities and promoting Melbourne as a location for living, investing and
visiting. Delivering value-for-money and good financial management are themes which will guide the
council’s decision-making.
The 2009–2010 annual report will measure our performance against the 11 key strategic activities of our
2009–10 annual plan and the goals of Council Plan 2009–2013 to be:
   a city for people
   a creative city
   an economically prosperous city
   a knowledge city
   an eco city
   a connected city
   an organisation that leads by example and manages its resources well.


The 11 key strategic activities for 2009-10, as outlined by the annual plan and budget, are:
   develop a new 10-year financial plan
   facilitate the energy and water retrofit of commercial buildings
   establish two enhanced late night taxi ranks
   develop and implement a community engagement framework and evaluation methodology
   continue to implement drought proofing to ensure water security for Melbourne’s parks and gardens
   start rejuvenation of Kensington Town Hall and establish a framework for the roll-out of community
    centres across the municipality including in Carlton, Southbank and Docklands
   establish and implement new commercial waste collection standards




                                                     59
                                                  City of Melbourne   2008–09 Annual Report


   start to implement the approved strategy for Swanston Street through documentation and schematic
    design
   establish a one-stop-shop model for business development in the city
   progressively implement changes to the Melbourne Planning Scheme based on the 2008–09 audit
    approved by the Minister for Planning
   determine and agree on a long-term strategy for the Queen Victoria Market site.
Progress on these activities will be documented in our next annual report.




                                                   60
                                                   City of Melbourne   2008–09 Annual Report


OUR PERFORMANCE
Performance statement
In accordance with Section 127 of the Local Government Act 1989 (Vic), the council must provide a
description of key strategic activities (KSAs) to be funded in the 2009–10 Annual Plan and Budget. The
City of Melbourne’s 2008–09 KSAs guide business development and prosperity, improve the amenity
and accessibility of the city and ensure that our organisation continues to be efficient, effective and
operated for the benefit of our community. The delivery of our KSAs contributes to our vision of a vibrant,
thriving and sustainable Melbourne.
The following performance statement outlines the council's achievement against the five 2008–09 KSAs.

KSA 1
Performance measure                  Achievements                          Issues                Percent
      and target                                                                                complete
Implement the first year     All actions from Melbourne's                                        100%
of Melbourne's               Business and International                                         KSA met.
Business and                 Strategy scheduled for
International Strategy,      completion during 2008–09
focusing on effective        have been delivered.
support to small
business through the         Highlights included:
grants program, the           21 grants totalling over
coordination of activities      $400,000 were provided to
with critical industry          small business through the
sectors and the                 2008–09 Small Business
successful delivery of          Grants program
Sister City events.           industry sector support has
                                included the development of
                                the Melbourne Hospitality
                                Strategy 2008–2012,
                                reconstitution of the
                                Melbourne Retail Advisory
                                Board and ongoing delivery
                                of the Melbourne Retail
                                Strategy including the
                                Docklands Retail Statement
                              A range of Sister City events
                                were delivered, including the
                                Tianjin Dancing Kite Festival
                                and the Osaka Twilight
                                Festival. A new funding
                                model was developed to
                                support future sister city
                                events using the Event
                                Partnership Program model.




                                                    61
                                                   City of Melbourne      2008–09 Annual Report


KSA 2
Performance Measure                 Achievements                            Issues                Percent
     and Target                                                                                  Complete
Implement the first year    The OKC was formally                Business planning and              85%
of the strategic plan for   established on 1 July 2008          consultation with stakeholders   KSA not
the Office of Knowledge     and the strategic plan was          and external groups in 2008–     met due
Capital (OKC).              revised in December 2008.           09 required a reshaping of the       to
                                                                OKC portfolio with some          reasons
                            First year achievements             impact on the deliverables        stated.
                            include:                            outlined within the original
                             completion of Stage 1 of          strategic plan. These
                                the Victoria-California         deliverables were either no
                                Climate Change Research         longer relevant or required a
                                Collaboration Framework         longer term timeframe for full
                                project with the report         implementation. Consequently
                                delivered to Office of          a number of the deliverables
                                Climate Change in               for 2008–09 will be completed
                                November 2008, and              throughout the next
                                progressing                     three years.
                                implementation of Victoria
                                -California research
                                collaboration links in 2009.
                             delivery of the Connect-ED
                                project including the
                                Melbourne International
                                Student Welcome Booth at
                                Melbourne Airport in
                                February 2009 and the
                                distribution of a
                                comprehensive
                                International Student
                                Welcome Pack.


KSA 3
Performance Measure                Achievements                           Issues                  Percent
     and Target                                                                                  Complete
Implementation of the       All Social and Affordable          Whilst 2008–09 stakeholder         100%
Social and Affordable       Housing Framework strategic        engagement commitments are
                                                                                                 KSA met.
Housing Framework           aims were fulfilled in 2008–       complete, ongoing work will be
which will include          09.                                required with
working with                                                   owner/developers for the
                            At the national level, the
stakeholders on the                                            construction of affordable
                            council contributed to
redevelopment of the                                           housing developments at the
                            reviews of Commonwealth
Drill Hall,                                                    Drill Hall, Common Ground
                            programs and hosted and




                                                     62
                                                 City of Melbourne   2008–09 Annual Report


implementation of        attended meetings with           and former Boyd High School
Common Ground            capital cities experiencing      sites up to the point where
supportive housing       similar social and affordable    tenants occupy apartments.
model and an             housing issues.                  Occupancy of Elizabeth Street
affordable housing                                        is expected from September
                         Briefings were held with
component within the                                      2010.
                         State Government to
Boyd High School site.
                         address the issue of housing
                         stress and examine best
                         practice models from the UK.
                         Melbourne City Council
                         endorsed a merger of
                         Melbourne Affordable
                         Housing with the Housing
                         Choices Australia Group to
                         allow greater capacity to deal
                         with funding and national
                         policy requirements.
                         Outcomes from working with
                         stakeholders included:
                            approval of the Drill Hall
                             site planning permit
                             granted and contract of
                             sale signed
                            community engagement
                             with project partners for
                             the development at the
                             Common Ground site
                             (660 Elizabeth Street)
                             and transfer of the
                             council-owned
                             Corporation Laneway
                             1014 to the site’s owner,
                             Yarra Community
                             Housing
                            the successful negotiation
                             of an affordable housing
                             requirement (20 per cent)
                             for any new residential
                             development at the
                             former Boyd High School
                             site (Southbank).




                                                  63
                                                    City of Melbourne   2008–09 Annual Report



KSA 4
Performance Measure               Achievements                          Issues                  Percent
     and Target                                                                                Complete
Improve the                The revised events policy is      Due to competing priorities the     80%
sustainability of our      yet to be finalised, however      revised events policy will be
                                                                                                KSA not
parks through a revised    an Events in Parks report         considered by the Melbourne
                                                                                               met due to
events policy and sports   has been developed which          City Council in late 2009.
                                                                                                reasons
policy as a result of      will provide key information
                                                                                                 stated.
current climate            in the revision of the existing
conditions.                events policy. It is
                           anticipated the events policy
                           will be revised by December
                           2009.
                           In the interim, the council
                           has implemented a number
                           of measures to reduce the
                           negative environmental
                           impact from events in parks
                           including:
                             a) improvements to the
                             site management of
                             events
                             b) use of protective
                             coverings on turf to
                             reduce damage from
                             compaction
                             c) development of cost
                             apportionment and cost
                             recovery mechanisms to
                             ensure adequate recovery
                             of reinstatement costs.
                           The City of Melbourne’s
                           sports policy Active
                           Melbourne was revised in
                           August 2008 and a draft
                           2009–10 action plan
                           developed.
                           One of the key areas of
                           focus of Active Melbourne
                           relates to place – the
                           physical environment where
                           people are active is a crucial




                                                     64
                                                      City of Melbourne   2008–09 Annual Report


                           factor in enabling activity.
                           The council is also ensuring
                           that sustainable options are
                           maximised in the physical
                           environment including:
                                consultation with
                                 community sporting
                                 clubs on the installation
                                 of a limited number of
                                 synthetic sports fields in
                                 key sports precincts
                                 across the municipality
                                ongoing management of
                                 seasonal and casual
                                 sport throughout summer
                                 to maintain sustainability
                                 of sports fields for winter
                                 sport
                                the planting of warm
                                 season grasses at
                                 sporting fields to
                                 increase ground cover.



KSA 5
 Performance Measure                    Achievements                        Issues      Percent
      and Target                                                                       Complete
Deliver organisational         All organisational improvement                            100%
improvements outlined in       activities identified for completion                     KSA met.
the Strategic                  by 30 June 2009 have been
Implementation Plan for        completed.
Organisational
Improvement 2008–09




                                                       65
                                                   City of Melbourne    2008–09 Annual Report



MELBOURNE CITY COUNCIL
Statement by councillors, Chief Executive Officer and Principal Accounting Officer on the
performance statement


In my opinion the accompanying performance statement has been prepared in accordance with the
Local Government Act 1989.




Joe Groher (CPA)
Principal Accounting Officer
In the council’s opinion the accompanying compulsory performance statement presents fairly the
performance of the Melbourne City Council for the year ended 30 June 2009.
As at the date of signing, we are not aware of any circumstance, which would render any particulars in
the performance statement to be misleading or inaccurate.
We were authorised by the council on 26 August 2009 to certify the financial report in its final form.




Robert Doyle                                  Brian Shanahan
Lord Mayor                                    Councillor




Kathy Alexander
Chief Executive Officer
Melbourne
26 August 2009




                                                     66
City of Melbourne   2008–09 Annual Report




 67
City of Melbourne   2008–09 Annual Report




 68
                                                  City of Melbourne   2008–09 Annual Report


Strategic indicators
Melbourne City Council monitors and reports back to the community against a set of performance
indicators to measure the progress towards Council Plan objectives.
Victorian Local Government Indicators (VLGI) are measured by the Victorian Government annually
through an independent survey.
No    Measure                    2008–09 result     2007–08 result    Comments
Connected and accessible city
1.1   Number of daily visitors    771,000           732,100           These figures show estimates
      to the City of                                                  of visitors to the municipality.
      Melbourne.
1.2   Overall satisfaction rate 84%                 81%               Given the heat stress our
      of visitors to City of                                          parks have experienced this is
      Melbourne parks.                                                a good result.
1.3   Mode share for public       Data not          46%               Annual data not available as
      transport, motor bikes,     available.                          City User Survey is conducted
      walking and cycling.                                            bi-annually.

1.4   Total number of             250               200               Increase largely due to
      referrals (business,                                            significant sister city events
      cultural, educational                                           such as the 30th anniversary
      and other) that are                                             of Melbourne Osaka
      facilitated through our                                         relationship.
      International Relations
      Branch.
1.5   Community satisfaction      65                68                Indexed mean score.
(VL   rating for overall                                              Although a slight decline from
GI)   performance of local                                            previous year, this score is
      roads and footpaths.                                            higher than the mean of all
                                                                      inner Melbourne municipalities.
1.6   Community satisfaction      67                72                Indexed mean score.
(VL   rating for overall                                              Although a slight
GI)   performance of                                                  decline from the
      appearance of public                                            previous year, this
      areas.                                                          score is similar to the
                                                                      score of all inner
                                                                      Melbourne
                                                                      municipalities.
1.7   Community satisfaction      53                55                Indexed mean score.
(VL   rating for overall                                              This score is slightly
GI)   performance of traffic                                          lower to that of all
      management and                                                  inner Melbourne
      parking facilities.                                             municipalities.




                                                   69
                                                  City of Melbourne       2008–09 Annual Report


No    Measure                 2008-2009 result         2007-2008 result             Comments
Innovative and vital business city
2.1   Number of new jobs      102                      127                          Fewer positions
      created by the Small                                                          created in 2008–09
      Business Grants                                                               however a greater
      Program.                                                                      number of these are
                                                                                    full time compared to
                                                                                    last year.
2.2   Level of investment     $2.4 million             $4.4 million                 Less capital intensive
      by businesses                                                                 businesses supported
      funded under the                                                              in 2008–09 than
      Small Business                                                                previous year.
      Grants Program.
2.3   Growth in the number    Four companies           In 2007–08, the Small        The 2007–08 figure
      of businesses           received assistance      Business Grants              incorporates the
      engaged in export as    under the Small          program assisted eight       number of companies
      a result of their       Business Grants          businesses to                receiving Export Entry
      engagement with the     export development       undertake export             Grants, participating in
      City of Melbourne.      program, Melbourne       activities. Through the      council international
                              Office Tianjin           Melbourne Office             business missions and
                              facilitated 17           Tianjin, 16 companies        clients at the Tianjin
                              companies and six        received support to          Melbourne Office.
                              education                enter the Tianjin
                              institutions to enter    market.
                              the Tianjin market.
                              Financial support for
                              export seminars
                              presented by
                              Australia India
                              Business Council,
                              Australia China
                              Business Council,
                              Australia Hong Kong
                              Chamber of
                              Commerce.
2.4   Satisfaction rates of   No survey                68% of Small Business        The 2007–08 was
      businesses with the     undertaken in            Grant recipients rate the    undertaken as an
      support and advice      2008–09.                 support given by the         extension of the 2005–
      provided by the City                             City of Melbourne (in        06 business leaders’
      of Melbourne.                                    terms of our contribution    program consultation.
                                                       to the success of their
                                                       business) as ‘significant’
                                                       to ‘very significant’. A
                                                       further 14% of recipients
                                                       rated this support as
                                                       ‘vital’.




                                                      70
                                                     City of Melbourne     2008–09 Annual Report


2.5   Community                  65                       70                        Indexed mean score.
(VL   satisfaction rating for                                                       Although a slight
GI)   overall performance                                                           decline from the
      of economic                                                                   previous year, this
      development.                                                                  score is higher than the
                                                                                    mean of all inner
                                                                                    Melbourne
                                                                                    municipalities.
2.6   Community                  62                       63                        Indexed mean score.
(VL   satisfaction rating for                                                       Although a slight
GI)   overall performance                                                           decline from the
      of enforcement of                                                             previous year, this
      bylaws.                                                                       score is higher than the
                                                                                    mean of all councils.


      Measure                     2008–09 result          2007–08 result         Comments
Inclusive and engaging city
3.1   Percentage of visitors      Data not                An average of 89%      Perceptions of safety
      who feel safe in the        available.              of respondents felt    research undertaken every
      CBD.                                                safe in the city       three years; next survey
                                                          (survey conducted      will be 2009–10.
                                                          in April 2006).
3.2   Participation rates at      Attendance figures      Attendance figures     The annual participation
      key events, festivals       delivered by City of    delivered by City of   rate does not include other
      and programs                Melbourne's             Melbourne's Events     events sponsored by the
      conducted by the City of    Events Melbourne        Melbourne Branch       City of Melbourne. The City
      Melbourne.                  Branch total 1.4        total 1.3 million.     of Melbourne delivers five
                                  million.                                       major events annually.
3.3   Number of cultural          32                      26                     In 2008–09, 14 projects
      projects/events devised                                                    funded by Indigenous Arts
      and managed or                                                             Grants, 10 with support of
      produced by indigenous                                                     Indigenous Quick
      communities and                                                            Response Funding
      marginalised.                                                              Scheme and 8 major
                                                                                 projects events produced
                                                                                 by the Indigenous Arts
                                                                                 Program in partnership
                                                                                 with external Indigenous
                                                                                 artists and organisations.
3.4   Customer satisfaction       86%                     86%                    Based on CERM (Formerly
      rating with council-                                                       Centre for Excellence in
      owned recreational                                                         Recreation Management)
      services.                                                                  customer satisfaction
                                                                                 surveys.




                                                         71
                                                     City of Melbourne   2008–09 Annual Report


3.5   Timeliness of delivery of   96% of services      92% of services        Aged and Disability
      the council's home care,    were delivered       were delivered         Services baseline
      personal care and           within five days     within five days and   compliance level is set at
      respite care services for   and 98% of           96% of services        80%.
      the aged and disabled.      services were        were delivered
                                  delivered within     within 10 days.
                                  10 days,
3.6   Customer satisfaction       90%                  Data not available.    This customer satisfaction
      with family and                                                         survey was not undertaken
      children's services.                                                    in 2007–08.



3.7   Percentage of children      82%                  80%                    Continued increase in
      between 72 and 75                                                       performance.
      months that are fully
      immunised.
3.8   Community satisfaction      57                   60                     Indexed mean score.
(VL   rating for overall                                                      Although a slight decline
GI)   performance of town                                                     from the previous year, this
      planning policy and                                                     score is similar to the score
      approvals.                                                              all inner Melbourne
                                                                              municipalities.
3.9   Community satisfaction      71                   69                     Indexed mean score. This
(VL   rating for overall                                                      score is an increase from
GI)   performance of health                                                   the previous year.
      and human services.
3.1   Community satisfaction      76                   76                     Indexed mean score. This
0     rating for overall                                                      score remains unchanged
(VL   performance of                                                          from 2007–08 and is higher
GI)   recreational facilities.                                                than the mean of all
                                                                              councils.

      Measure                     2008–09 result       2007–08 result         Comments
Environmentally responsible city
4.1   Reduction in net            Data not             Data not available.    Data inventory is only
      emissions of                available.                                  undertaken every five
      greenhouse gases in                                                     years.
      the City of Melbourne,
      compared with the
      baseline year of 2001–
      02.




                                                      72
                                                      City of Melbourne   2008–09 Annual Report


4.2   Reduction of residential    Annual collection     Annual collection of    Reduction is attributable to
      waste to landfill per       of waste per          waste per               the removal of mixed and
      household                   household to          household to landfill   the separation of
      (kg/household/year).        landfill was          was 526kg, an           commercial waste in the
                                  461kg, a              increase for 14% on     domestic waste stream.
                                  decrease of 14%       last year’s amount
                                  on last year’s        per household.
                                  amount per
                                  household.
4.3   Percentage of municipal     26%                   19%                     Data calculated using
      waste diverted for                                                        Sustainability Victoria
      recycling.                                                                diversion rate. Residential
                                                                                waste figures only.
4.4   Reduction in the            14% reduction on      15.5% reduction on      Increase is due to an
      consumption of drinking     base year (1999-      base year, 24.3%        increased residential and
      quality water within the    2000), an             increase from           worker population in the
      City of Melbourne           increase of 3.5%      2006–07.                municipality.
      compared with the           over previous
      baseline year of 1999–      year.
      00.
4.5   Reduction of waste to       44% reduction         19% reduction           Significant reduction due to
      landfill from council       compared with         compared with the       changes to waste
      facilities (offices and     the base year         base year.              collection facilities in
      childcare centres)          (2003–04).                                    buildings and increased
      compared with the                                                         staff awareness.
      baseline year.
4.6   Reduction of                33% reduction         34% reduction           See pages 38 to 39
      greenhouse gas              against base          against base year.
      emissions from the          year (1996–97)
      council’s operations
4.7   Reduction of drinking       58% reduction         66% reduction           See pages 44 to 45
      quality water consumed      against base          against base year.
      for council buildings and   year (1999–00).
      gardens.

4.8   Community satisfaction      70                    71                      Indexed mean score.
      rating for overall                                                        Overall rubbish and
      performance of waste                                                      recycling collection service
      management.                                                               rated by residents as being
                                                                                good to excellent.
      Measure                     2008–09 result        2007–08 result          Comments




                                                       73
                                                    City of Melbourne   2008–09 Annual Report


      Measure                      2008–09 result     2007–08 result      Comments
Well-managed and leading corporation
5.1   Percentage of external       87%                87%                 Customer contacts
      customer contacts                                                   resolution target is 95%.
      resolved within the
      target date.
5.2   Percentage of total          2.6%               3.0%                Slightly reduced from
      labour days lost to staff                                           2007–08 figures.
      absenteeism /sickness.
5.3   Rate of annual staff         7.9%               12.7%               Slightly reduced from
      turnover.                                                           2007–08 figures.
5.4   Overall employee             5.4 rating         5.3 rating measured Measured through the City
      satisfaction rating.         measured           through employee    of Melbourne 2008–09
                                   through            engagement.         Culture Survey.
                                   employee
                                   engagement.
5.5   Percentage of                90.4%              77.6%               Includes calls regarding
      telephone calls                                                     faulty parking meters.
      resolved at first point of
      contact.
5.6   Degree of compliance         Level B            Level B             See page 77 for further
      with GRI guidelines for                                             information on sustainable
      sustainable reporting.                                              reporting guidelines.


5.7   Community satisfaction       66                 68                  Indexed mean score. This
(VL   rating for overall                                                  result was similar to scores
GI)   performance generally                                               from all inner metropolitan
      of the council.                                                     councils.

5.8   Community satisfaction       71                 73                  Indexed mean score. This
(VL   rating for the council's                                            result was similar to scores
GI)   interaction and                                                     from all inner metropolitan
      responsiveness and                                                  councils.
      dealing with the public.
5.9   Community satisfaction       61                 62                  Indexed mean score. This
(VL   rating for the council's                                            result was similar to scores
GI)   advocacy and                                                        from all inner metropolitan
      community                                                           councils.
      representation on key
      local issues.




                                                     74
                                                   City of Melbourne    2008–09 Annual Report


5.10   Community satisfaction 59                     59                    Indexed mean score. This
(VL    rating for the council's                                            result was similar to scores
GI)    engagement in                                                       from all inner metropolitan
       decision-making on key                                              councils.
       local issues.


       Measure                  2008–09 result       2007–08 result        Comments
Financially responsible corporation
6.1    Annual Financial Plan    Actual surplus:     Actual surplus:        See income explanations for
       targets: within + or -   $25 million         $94 million            variance from difference
       5% variation to budget   compared with       compared with          budget.
       Financial Performance    budget surplus      budget surplus of
       Surplus.                 of $12 million.     $6.5 million.
6.2    Total revenue.           Actual revenue:     Actual revenue:        Additional grants received as
                                $325 million        $312.2 million         well as investment income
                                compared with       compared with          and intercompany revenue.
                                budget              budget $285.9
                                $307.5 million.     million.
6.3    Total operating          Actual operating    Actual operating       Variance less than 1%.
       expenditure.             expenditure:        expenditure: $276.6
                                $293 million        million compared
                                compared with       with budget $279.5
                                budget              million.
                                $295.4million.
6.4    Council Works            In 2008–09 total    Total value of works   After adjustments for
       Program.                 expenditure was     was $69.3 million      abnormal expenditure and
                                $81.8 million       compared with a        multi-year projects, 95% of
                                compared to         budget of $87.7        plan has been achieved for
                                budget of           million. This figure   2008–09.
                                $83.1 million.      includes multi-year
                                Expenditure         projects. After
                                included            adjustments, the
                                $8.1 million of     value of works
                                unbudgeted          completed is $57.6
                                additional work     million. This
                                (abnormal           represents an
                                expenditure).       achievement of
                                                    95.8% to the
                                                    adjusted budget.
6.5    Rate of Investment       Cash investment     Cash investment        Higher yield on investment
       Portfolio return.        return: 6.51%       return: 6.45%          than budgeted.
                                compared with       compared with
                                budget 6.44%.       budget 6.15%.




                                                    75
                                       City of Melbourne   2008–09 Annual Report


6.6    All rates – average    $2,313    $2,263                Variance in average rates
(VL    rates and charges                                      due to supplementary
GI)    per assessment (all                                    valuations and the council's
       rates)                                                 approved annual rate
                                                              increase, which was 3.5% in
                                                              2008-09.
6.7    Residential rates –    $921      $885                  Variance in average rates
(VL    average rates and                                      due to supplementary
GI)    charges per                                            valuations and the council's
       residential                                            approved annual rate
       assessment.                                            increase, which was 3.5% in
                                                              2008–09.
6.8    Operating costs –      $4,074    $3,993                Increase largely due to CPI.
(VL    average operating
GI)    expenditure per
       assessment
6.9    Capital expenditure    $1,045    $909                  Council works program
(VL    – average capital                                      received higher budget
GI)    expenditure per                                        allocation in 2008–09.
       assessment.
6.10   Infrastructure –       69%       67%                   Council works program
(VL    infrastructure                                         received higher budget
GI)    renewal %.                                             allocation in 2008–09.
6.11   Infrastructure –       80%       71%                   Council works program
(VL    infrastructure                                         received higher budget
GI)    renewal and                                            allocation in 2008–09.
       maintenance %.
6.12   Debts – average        $1,012    $1,184                Improved debt collection.
(VL    liabilities per
GI)    assessment.
6.13   Operating result per   $348      $1,357                Net surplus was higher in
(VL    Assessment.                                            2007–08 due to contributed
GI)                                                           assets from North Melbourne
                                                              and Kensington rezone.




                                        76
                                                           City of Melbourne       2008–09 Annual Report


ABOUT THE GLOBAL REPORTING INITIATIVE
The Global Reporting Initiative (GRI) is the world’s most widely used sustainability reporting framework.
Its principles and indicators provide a mechanism for measuring and reporting economic, environmental
and social performance.
The GRI’s indicators promote transparency, accountability and accuracy, making it easier to compare
performance in an increasingly globalised operating environment.
Currently, around 4 per cent of organisations globally use sustainability reporting. In Australia this figure
is 35 per cent10.
Reading this index
The City of Melbourne has included GRI sustainability indicators as part of its performance measures
since 2004–05.
The GRI appears in this annual report as a list of indicators, each with a page reference or a comment to
demonstrate compliance or to show which indicators are not relevant to our organisation. The 10 United
Nations Global Compact (UNGC) principles are also referenced in the table (see page 10 for more
information).
GRI application level
This report was prepared to meet the requirements of application level B under the GRI’s Sustainability
Reporting Guidelines, maintaining the standard of reporting and disclosure of previous years.
Rather than seek external assurance for GRI, the City of Melbourne focuses its resources on
strengthening internal reporting processes and maintaining the already thorough level of auditing our
processes are currently subject to.
More information about the GRI is available at www.globalreporting.org.




10
  Professor Richard Petty, President CPA Australia. Presentation to Australasian Reporting Awards seminar, Melbourne, 5
June 2009




                                                            77
                                                                        City of Melbourne     2008–09 Annual Report


GRI Content Table
Topic GRI indicatorRequirements                                                              Reference (page/comment)
                                                                   Report profile
                              1.10    CEO statement to include: strategic priorities and     Message from the CEO – page 7.
                           (UNGC- P8) topics with regard to sustainability; trends affecting
                                                                                             Message from the Lord Maypr of
                                      the organisation and influencing sustainability
                                                                                             Melbourne – page 5.
                                      priorities; events, achievements and failures during
  Strategy and analysis




                                      the reporting period; views on performance with
                                      respect to targets; challenges and targets for the
                                      next year and goals for the coming years; and other
                                      items pertaining to strategic approach
                               1.2     Risks and opportunities                               Message from the CEO – page 7.
                                                                                             12 months in Melbourne – page 35.
                              1.3    Statement of continued support for the United           About this report – page 10.
                           (UNGC-P2) Nations Global Compact (UNGC)

                               2.1     Name of the organisation                              Melbourne City Council

                              PA1      Relationship to other governments                     Melbourne City Council - page 13.

                               2.2     Primary brands, products, and/or services including Reported throughout 12 months in
                                       volume or quantity                                  Melbourne - page 35.
                               2.3     Operational structure                                 Organisation structure - page 28.

                               2.4     Organisation’s headquarters                           The administration – page 28.

                               2.5     Countries organisation operates in                    Melbourne, Australia - page 11.
  Organisational profile




                               2.6     Nature of ownership and legal form                    Melbourne City Council – page 13.

                               2.7     Markets served                                        Melbourne, Australia - page 11.
                               2.8     Scale of organisation, including                     The administration – page 28.
                                       employee numbers, net revenues, total capitalisation
                                                                                            Our financials – page 93.
                                       (debt and equity).
                               2.9     Significant changes in size, structure or ownership   Message from the CEO – page 7.

                              2.10     Awards received                                       Leading by example – page 58.




                                                                         78
                                                                        City of Melbourne     2008–09 Annual Report


                                                                Report parameters
                               3.1    Reporting period.                                      1 July 2008 to 30 June 2009.

                               3.2    Date of most recent previous report.                   City of Melbourne 2007–08 Annual
                                                                                             Report published in October 2008.

                               3.3    Reporting cycle.                                       Annual

                               3.4    Contact point.                                         City of Melbourne
   Report profile




                                                                                             PO Box 1603
                                                                                             Melbourne VIC 3001
                                                                                             Phone: 03 9658 9658
                                                                                             www.melbourne.vic.gov.au

                               3.5    Process for determining report content, including:     A cross-organisational working group
                                      determining materiality, prioritising topics,          developed the content and it was
                                      identifying readers.                                   reviewed by the Lord Mayor, Deputy
                                                                                             Lord Mayor and councillors, directors
                                                                                             and the CEO.

                               3.6    Boundary of report.                                    About this report – page 9.


                               3.7    Limitations on scope of report.                        About this report – page 9.
   Report scope and boundary




                               3.8    Basis for reporting on joint ventures, subsidiaries,   Our subsidiaries are indentified on page
                                      leased facilities, outsourced operations, and other    14.
                                      entities.

                               3.9    Data measurement techniques and the bases of           Data measurement techniques are
                                      calculations in report.                                stated throughout report.

                               3.10   Explanation of the effect of any re-statements of      See footnotes throughout report, where
                                      information provided in earlier reports.               applicable.


                               3.11   Significant changes from previous years in inclusion No significant changes.
                                      of indicators.

                               3.12   Table identifying the location of the standard         See this GRI table
GRI Content




                                      disclosures in the report.
  Index




                                                                         79
                                                             City of Melbourne     2008–09 Annual Report


                     3.13   Policy and current practice with regard to seeking    See introduction to this table, page 77.
                            external assurance for the report.
Assurance




                            If not included in the assurance report
                            accompanying the sustainability report, explain the
                            scope and basis of any external assurance provided.
                            Also explain the relationship between the reporting
                            organisation and the assurance provider(s).
                                       Governance commitments and engagements
                     4.1    Governance structure, including committees under      Melbourne City Council – page 13.
                            highest governance body responsible for specific
                                                                                  Corporate governance – page 19.
                            tasks such as setting strategy or organisational
                            oversight.

                     4.2    Indicate whether Chair of highest governance body The Lord Mayor of Melbourne is not an
                            is an executive officer.                          executive officer.
                     4.3    For organisations with unitary board structure,       Not relevant to the City of Melbourne.
                            number of members of highest governance body
                            that are independent and/or non-executive
                            members.
                     4.4    Mechanisms for shareholders and employees to        Melbourne stakeholders – page 12.
                            provide recommendations or direction to the highest
                                                                                Staff profile – pages 30 to 31.
        Governance




                            governance body.
                     4.5    Link between compensation for members of highest Remuneration of senior executives –
                            governance body, senior managers and executives page 34.
                            and organisation’s performance.
                     4.6    Processes in place for the highest governance body Councillors and senior management are
                            to ensure conflicts of interest are avoided.       required to complete a return of interest
                                                                               each six months to declare their
                                                                               interests. These returns are recorded in
                                                                               a publicly accessible document.
                                                                               Councillors are also required to declare
                                                                               any conflict of interest relating to matters
                                                                               before committee and council meetings.
                                                                               City of Melbourne staff who have a
                                                                               conflict of interest in a matter in which
                                                                               they also have a delegated power, duty
                                                                               or function must declare the conflict of
                                                                               interest.




                                                              80
                                             City of Melbourne      2008–09 Annual Report


   4.7     Process for determining required qualifications and     The Local Government Act 1989 (Vic)
           expertise of the members of the highest governance      empowers councils to establish advisory
           body for guiding the organisation’s strategy on         and special committees of the council.
           economic, environmental and social performance.         These committees have delegated
                                                                   powers, duties and functions relating to
                                                                   the terms of reference of that
                                                                   committee.
   4.8     Internally developed statements of mission or           Our vision, mission and values – page
           values, codes of conduct and principles.                3.


   4.9     Procedures of highest governance body for               Risk management – page 23.
           overseeing identification and management of
           economic, environmental and social performance.

   4.10    Processes for evaluating the highest governance      As a democratically elected body, the
           body’s own performance, particularly with respect to council is subject to public elections
           economic, environmental and social performance. every four years. Its performance over
                                                                this period is measured against the
                                                                delivery of the Council Plan developed
                                                                in council’s first year.
   4.11   Explanation of whether and how the precautionary         The City of Melbourne does not
(UNGC-P7) approach or principle is addressed by the                explicitly reference the precautionary
          organisation.                                            approach in our risk management
                                                                   statements. However, our risk
                                                                   management framework is aligned to
                                                                   the Australian Standard AS/NZS
                                                                   4360:2004 which includes our
                                                                   environmental risk assessment.
   4.12    Externally developed voluntary economic,               About this report – page 9.
           environmental and social charters, principles or
           other initiatives to which the organisation subscribes
           or which it endorses.
   4.13    Association memberships and national/international Melbourne City Council – page 13.
           advocacy organisations in which the organisation
           has positions in governance bodies, participates in
           projects or committees, provides substantive funding
           beyond routine membership dues and strategic
           memberships.
   4.14    Disclosure. List of stakeholder groups such as          Melbourne stakeholders, page 12.
           communities, suppliers, employees.
                                                                   The administration – page 28.
   4.15    Disclosure. Basis for identification and selection of   Melbourne stakeholders - page 12.
           stakeholders to engage.




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                                                                                       City of Melbourne     2008–09 Annual Report


                                              4.16   Approaches to stakeholder engagement, including       Melbourne stakeholders – page 12.
                                                     frequency of engagement by type and by
                                                                                                           Involving the community in city planning,
                                                     stakeholder group.
                                                                                                           page 57.
                                              4.17   Issues and concerns raised through stakeholder        Reported throughout 12 months in
                                                     engagement and how the organisation has               Melbourne - page 35.
                                                     responded.
                                              PA2    State the definition of sustainable development    About this report - page 9.
                                                     adopted and identify any statements or principles
                                                                                                        12 months in Melbourne - page 35.
                                                     adopted to guide sustainable development policies.
Public policies and implementation measures




                                              PA3    Identify the aspects for which the organisation has   Sustainability considerations are
                                                     established sustainable development policies.         inherent in all our policies. Our specific
                                                                                                           sustainability related policies include:
                                                                                                           Greenhouse Action Plan 2006–10
                                                                                                           Growing Green 2003–50
                                                                                                           Sustainable Public Lighting Action Plan
                                                                                                           2005–10
                                                                                                           Total Watermark – City as a catchment
                                                                                                           2008–11
                                                                                                           Tree Plating Strategy 2009–19
                                                                                                           Waste Management Strategy 2005–09
                                                                                                           Zero Net Emissions by 2020 2008–11.
                                              PA4    Identify the specific goals of the organisation for   Our sustainability policies are driven by
                                                     each of the aspects listed in PA3.                    our objective to be an environmentally
                                                                                                           responsible city.
                                              PA5    Describe the process by which the aspects and         All strategies incorporating performance
                                                     goals in both PA3 and PA4 were set.                   goals are approved by the council.




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                                                               City of Melbourne       2008–09 Annual Report


                       PA6   For each goal, provide the following information:        Melbourne stakeholders – page 12.
                             -implementation measures                                 Reported throughout 12 months in
                             -results of relevant assessments of the -                Melbourne – page 35.
                             effectiveness of those measures before they are          Performance measures – page 61.
                             implemented
                             -state targets and key indicators used to monitor
                             progress, with a focus on outcomes
                             -describe
                             progress with respect to goals and targets in the
                             reporting periods, including results of key indicators
                             -actions to ensure continuous improvement towards
                             reaching the public agency’s goals and targets
                             -post-implementation assessment and targets for
                             next time period.
                       PA7   Describe the role and engagement with                    Reported throughout 12 months in
                             stakeholders with respect to the items disclosed in      Melbourne – page 35.
                             PA6.
                                                                                      Performance measures – page 61.
                                                                                      Melbourne stakeholders - page 12.
                                                      Economic indicators
                       EC1   Direct economic value generated and distributed.         Our financials – page 93.
                       EC2   Financial implications and other risks and             Council endorsed the Climate Change
                             opportunities for the organisation’s activities due to Adaptation Strategy in June 2009. This
                             climate change.                                        is a comprehensive assessment of
                                                                                    Melbourne’s climate change risks for
Economic performance




                                                                                    2010, 2030 and 2070. It will inform the
                                                                                    council’s initiatives to adapt to climate
                                                                                    change and mitigate adverse impacts
                                                                                    associated with: intense rainfall and
                                                                                    wind storm events, extreme heatwaves
                                                                                    and bushfires, drought and reduced
                                                                                    rainfall and sea level rise.
                       EC3   Coverage of the organisation’s defined benefit plan Determined as not of material impact on
                             obligations.                                        the City of Melbourne’s operations.
                       EC4   Significant financial assistance from government.        Our financials – page 93.




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                                                             City of Melbourne    2008–09 Annual Report


                    EC5    Range of ratios of standard entry level wage         Determined as not of material impact on
                           compared with local minimum wage.                    the City of Melbourne’s operations.




                    EC6    Policy, practices, and proportion of spending on     The City of Melbourne's Purchasing
                           locally based suppliers.                             Policy provides for factors other than
                                                                                cost, which includes social and
Market presence




                                                                                environmental factors when determining
                                                                                suppliers used for procurement of goods
                                                                                and services.
                    EC7    Procedures for local hiring and proportion of senior Determined as not of material impact on
                           management hired from local community.               the City of Melbourne’s operations.

                    EC8    Development and impact of infrastructure investmentDetermined as not of material impact on
Indirect economic




                           and services provided primarily for public benefit the City of Melbourne’s operations.
                           through commercial, in-kind or pro bono
     impacts




                           engagement.
                    EC9    Understanding and describing significant indirect    Determined as not of material impact on
                           economic impacts.                                    the City of Melbourne’s operations.


                    PA8    Gross expenditure by type of payment.                Our financials – page 93.

                    PA9    Gross expenditure by financial classification.       Our financials – page 93.
                    PA10   Capital expenditures by financial classification.    Our financials – page 93.
Expenditures




                    PA11   Describe procurement policy of the public agency as Our Sustainable Procurement
                           it relates to sustainable development.              Policy provides the opportunity, where
                                                                               practicable, to purchase green goods
                                                                               and services.
                    PA12   Describe economic, environmental and social criteria The City of Melbourne's Purchasing
                           that apply to expenditures and financial             Policy provides for cost, social and
                           commitments.                                         environmental factors when determining
                                                                                suppliers used for procurement of goods
                                                                                and services.

                    PA13   Describe linkages between the public agency’s           The Strategic Services Review process,
Procurement




                           procurement practices and its public policy priorities. undertaken before contract tendering,
                                                                                   assesses procurement strategies
                                                                                   against community needs and the
                                                                                   council’s policy and ensures that such
                                                                                   needs are addressed accordingly.




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                                                       City of Melbourne      2008–09 Annual Report


               PA14   Percentage of total value of goods purchased that     While purchasing policy provides for the
                      were registered with voluntary environmental or       use of environmental factors when
                      social labels and/or certification programs broken    making procurement decisions, the
                      down by type.                                         extent to which the policy is applied is
                                                                            not currently measured.


                                            Environmental indicators
               EN1    Weight of materials used.                             Determined as not of material impact on
                                                                            the City of Melbourne’s operations.
               EN2    Percentage of materials used that are recycled input Purchasing policy provides for the use
Materials




                      materials.                                           of environmental factors when making
                                                                           procurement decisions although it
                                                                           doesn't specifically refer to the recycled
                                                                           input materials. The extent to which the
                                                                           policy is applied is not currently
                                                                           measured.

               EN3    Direct energy consumption by primary energy           12 months in Melbourne – page 35.
                      source.
               EN4    Indirect energy consumption by primary source.        12 months in Melbourne – page 35.
               EN5    Energy saved due to conservation and efficiency       12 months in Melbourne – page 35.
Energy




                      improvements.
               EN6    Initiatives to provide energy-efficient or renewable 12 months in Melbourne – page 35.
                      energy based products and services and reductions
                      in energy requirements as a result.
               EN7    Initiatives to reduce indirect energy consumption and 12 months in Melbourne – page 35.
                      reductions achieved.

               EN8    Total water withdrawal by source.                     12 months in Melbourne – page 35.
               EN9    Water sources significantly affected by withdrawal of Determined as not of material impact on
Water




                      water.                                                the City of Melbourne’s operations.
               EN10   Percentage and total volume of water recycled and 12 months in Melbourne – page 35.
                      reused.

               EN11   Location and size of land owned, leased, managed Determined as not of material impact on
                      in or adjacent to, protected areas and areas of high the City of Melbourne’s operations.
Biodiversity




                      biodiversity value outside protected areas.
               EN12   Description of significant impacts of activities,     Determined as not of material impact on
                      products and services on biodiversity in protected    the City of Melbourne’s operations.
                      areas and areas of high biodiversity value outside
                      protected areas.




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                                                                                  City of Melbourne     2008–09 Annual Report


                                      EN13      Habitats protected or restored.                        City of Melbourne supports WaterWatch
                                                                                                       to deliver a community water monitoring
                                                                                                       and education program within the
                                                                                                       municipality. Revegetation activities in
                                                                                                       Royal Park, including community
                                                                                                       planting days, continue.
                                      EN15      Number of ICUN Red List species and national           Determined as not of material impact on
                                                conservation list species with habitats in areas       the City of Melbourne’s operations.
                                                affected by operations, by level of extinction risk.
                                      EN14      Strategies, current actions and future plans for       12 months in Melbourne – page 35
                                                managing impacts on biodiversity.
                                      EN16    Total direct and indirect greenhouse gas emissions. 12 months in Melbourne – page 35.
                                    (UNGC-P8) by weight.
                                      EN17      Other relevant indirect greenhouse gas emissions by Determined as not of material impact on
                                                weight.                                             the City of Melbourne’s operations.
                                      EN18      Initiatives to reduce greenhouse gas emissions and 12 months in Melbourne – page 35.
                                                reductions achieved.
   Emissions, effluents and waste




                                      EN19    Emissions of ozone-depleting substances by weight. Determined as not of material impact on
                                    (UNGC-P8)                                                    the City of Melbourne’s operations.
                                      EN20    NO, SO and other significant air emissions by type       Determined as not of material impact on
                                    (UNGC-P8) and weight.                                              the City of Melbourne’s operations.
                                      EN21      Total water discharge by quality and destination.      Determined as not of material impact on
                                                                                                       the City of Melbourne’s operations.
                                      EN22      Total weight of waste by type and disposal methods. 12 months in Melbourne – page 35.
                                      EN23      Total number and volume of significant spills.         Determined as not of material impact on
                                                                                                       the City of Melbourne’s operations.
                                      EN24      Weight of transported, imported, exported or treated Determined as not of material impact on
                                                waste deemed hazardous and percentage of waste the City of Melbourne’s operations.
                                                shipped internationally.
                                      EN25      Identity, size, protected status and biodiversity value Determined as not of material impact on
                                                of water bodies and habitats affected by                the City of Melbourne’s operations.
                                                organisation’s discharges of water and runoff.

                                      EN26      Initiatives to mitigate environmental impacts of       Determined as not of material impact on
Products and




                                                products and services and extent of mitigation.        the City of Melbourne’s operations.
  services




                                      EN27      Percentage of products sold and their packaging        Determined as not of material impact on
                                                materials that are reclaimed by category.              the City of Melbourne’s operations.




                                                                                    86
                                                                             City of Melbourne      2008–09 Annual Report


                                  EN28    Monetary value of significant fines and total number No significant fines for 2008–09.
Compliance




                                (UNGC-P8) of non-monetary sanctions for non-compliance with
                                          environmental laws and regulations.




                                  EN29      Significant environmental impacts of transporting     Determined as not of material impact on
Transport




                                            products and other goods and materials used for       the City of Melbourne’s operations
                                            operations and transporting members of the
                                            workforce.

                                  EN30      Total environmental protection expenditures and       Determined as not of material impact on
Overall




                                            investments by type.                                  the City of Melbourne’s operations.



                                 UNGC9      Business should encourage the development and         In 2008–09 three key environmental
                                            diffusion of environmentally friendly technologies.   strategies were developed or updated:
                                                                                                  Zero Net Emissions – Update 2008;
                                                                                                  Total Watermark City as a Catchment;
                                                                                                  and Climate Change Adaptation
                                                                                                  Strategy.


                                                                                                  Many of the initiatives are linked to the
                                                                                                  increased uptake of environmental
                                                                                                  technologies. For example Zero Net
United Nations Global Compact




                                                                                                  Emissions establishes a target of an
                                                                                                  addition 426 megawatts of low carbon
                                                                                                  power to be delivered through
                                                                                                  environmentally friendly technologies.


                                                                                                  These strategies translate into value for
                                                                                                  the community. Energy Savers – it all
                                                                                                  starts at home, delivered in collaboration
                                                                                                  with City of Yarra, works with energy
                                                                                                  efficiency installation companies to
                                                                                                  retrofit homes within the region. The
                                                                                                  program assesses individual homes and
                                                                                                  aims to increase uptake of energy and
                                                                                                  water efficient technologies such as
                                                                                                  insulation, lighting and showerheads, in
                                                                                                  the residential sector.




                                                                               87
                                                                             City of Melbourne     2008–09 Annual Report


                                                       Labour practices and decent work indicators
                                    LA1     Total workforce by employment type, employment        The administration – page 28.
                                            contract and region.
Employment




                                    LA2     Total number and rate of employee turnover by age The administration – page 28.
                                            group, gender and region.
                                    LA3     Benefits provided to full-time employees that are not Determined as not of material impact on
                                            provided to temporary or part-time employees, by      the City of Melbourne’s operations
                                            major operations.

                                    LA4    Percentage of employees covered by collective          The administration – page 28.
                                 (UNGC-P3) bargaining agreements.
Labour/management relations




                                    LA5     Minimum notice period(s) regarding operational        Under the City of Melbourne 2005
                                            changes, including whether it is specified in         Enterprise Agreement, the period of
                                            collective agreements.                                notice given to employees whose
                                                                                                  employment with Council is terminated
                                                                                                  shall be entitled to notice dependent on
                                                                                                  continuous years of service.

                                    LA6     Percentage of total workforce represented in formal   100 per cent of the workforce has joint
                                            joint management–worker health and safety             management. Employee representation
                                            committees that help monitor and advise on            is achieved with three Designated Work
                                            occupational health and safety programs.              Group (DWG) OHS committees: Central
                                                                                                  Business District, Parking and Traffic,
Occupational health and safety




                                                                                                  and Community Services Group.
                                                                                                  Members from each DWG form the
                                                                                                  Corporate OHS Committee chaired by
                                                                                                  the Director Corporate Services and
                                                                                                  meet quarterly.
                                    LA7     Rates of injury, occupational diseases, lost days     The administration – page 28.
                                            and absenteeism and number of work related
                                            fatalities by region.
                                    LA8     Education, training, counselling, prevention and risk- The employee assistance program is a
                                            control programs in place to assist workforce          contracted confidential counselling
                                            members, their families or community members           service available to all staff and
                                            regarding serious diseases.                            immediate family members. This service
                                                                                                   included career assistance and
                                                                                                   manager assistance programs.




                                                                              88
                                                                                       City of Melbourne     2008–09 Annual Report


                                             LA9      Health and safety topics covered in formal           All OHS policies and safety
                                                      agreements with trade unions.                        management systems are compliant
                                                                                                           with the relevant legislation and the City
                                                                                                           of Melbourne holds dual safety
                                                                                                           accreditation with Advanced SafetyMap
                                                                                                           and AS 4801.
                                             LA10     Average hours of training per year per employee by 1.07 training hours per full-time
                                                      employee category.                                 employee.
                                                                                                           0.34 training hours per part-time
                                                                                                           employee (including irregular and
                                                                                                           regular part-time employees)
    Training and education




                                                                                                           (excluding departmental training and
                                                                                                           external study assistance).
                                             LA11     Programs for skills management and lifelong          Staff profile – pages 30 to 31
                                                      learning that support the continued employability of
                                                      employees and assist them in managing career
                                                      endings.
                                             LA12     Percentage of employees receiving regular            100 per cent of eligible staff
                                                      performance and career development reviews.
                                                                                                           (excluding employees on extended
                                                                                                           leave, vacant positions and newly
                                                                                                           appointed positions).

                                             LA13     Composition of governance bodies and breakdown Where applicable, details included in
equal opportunity




                                                      of employees per category according to gender, age The administration – page 28.
  Diversity and




                                                      group, minority group membership and other
                                                      indicators of diversity.
                                             LA14     Ratio of basic salary of men to women by employee Staff profile – pages 30 to 31.
                                                      category.

                                             HR1    Percentage and total number of significant             No data available for 2008-09.
                                                    investment agreements that include human rights
    Investment and procurement policies




                                          (UNGC-P1,
                                                    clauses or that have undergone human rights
                                             P2)
                                                    screening.
                                             HR2      Percentage of significant suppliers and contractors Data not collected for 2008-09.
                                                      that have undergone screening on human rights and
                                                      actions taken.
                                             HR3    Total hours of employee training on policies and       Total hours training concerning aspects
                                                    procedures concerning aspects of human rights that     of human rights was 3,120 hours over
                                          (UNGC-P1)
                                                    are relevant to operations, including the percentage   six individual courses and
                                                    of employees trained.                                  accommodating 2,125 training places.




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                                                                       City of Melbourne     2008–09 Annual Report


                                                     Human rights performance indicators
                              HR4 Total number of incidents of discrimination and           Determined as not of material impact on
discrimination




                            (UNGC- actions taken.                                           the City of Melbourne’s operations.
     Non-




                              P6)




                             HR5     Operations identified in which the right to exercise   Determined as not of material impact on
and collective bargaining
 Freedom of association




                                     freedom of association and collective bargaining       the City of Melbourne’s operations.
                                     may be at significant risk, and actions taken to
                                     support these rights.




                              HR6 Operations identified as having significant risk for      The City of Melbourne only employs an
labour




                            (UNGC- incidents of child labour, and measures taken to         adult workforce and ensures that our
 Child




                            P4, P5) contribute to the elimination of child labour.          contractors and outsourced service
                                                                                            providers also share this commitment.

                              HR7 Operations identified as having significant risk for    The City of Melbourne does not engage
compulsory labour




                            (UNGC- incidents of forced or compulsory labour, and          in forced or compulsory labour.
   Forced and




                              P4)  measures to contribute to the elimination of forced or
                                   compulsory labour.




                                     Percentage of security personnel trained in the        Provision of security services is
practices
Security




                                     organisation's policies or procedures concerning       outsourced and the provider is required
                                     aspects of human rights that are relevant to           to comply with all City of Melbourne
                                     operations.                                            policies and procedures.

                             HR9     Total number of incidents of violations involving      No incidents reported.
Indigenous




                                     rights of Indigenous people and actions taken.
   rights




                                                         Social performance indicators
                             SO1     Nature, scope, and effectiveness of any programs 12 months in Melbourne – page 35.
       Community




                                     and practices that assess and manage the impacts
                                     of operations on communities, including entering,
                                     operating and exiting.




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                                                                            City of Melbourne       2008–09 Annual Report


                                   SO2 Percentage and total number of business units               Risk management - page 23.
                                 (UNGC- analysed for risks relating to corruption.
    Corruption




                                   P10)
                                  SO3    Percentage of employees training in organisation’s        Corporate governance – page 19.
                                         anti-corruption policies and procedures.
                                  SO4    Actions taken in response to incidents of corruption. No incidents reported

                                  SO5    Public policy positions and participation in public       As a capital city council, the City of
                                         policy development and lobbying.                          Melbourne is involved in a broad range
                                                                                                   of local, regional, state and national
                                                                                                   based public policy issues. For example,
    Public policy




                                                                                                   see memberships listed in Melbourne
                                                                                                   City Council section (page 13), divisions
                                                                                                   (page 29) and 12 months in Melbourne
                                                                                                   (page 35).
                                  SO6    Total value of financial and in-kind contributions to     The City of Melbourne did not receive
                                         political parties, politicians and related institutions   any funding from political parties.
                                         and lobbying.

                                  SO7    Total number of legal actions for anti-competitive        No legal actions for 2008–09.
Anti-competitive




                                         behaviours, anti-trust and monopoly practices and
  behaviour




                                         their outcomes.




                                  SO8    Monetary value of significant fines and total number No significant fines for 2008–09.
    Compliance




                                         of non-monetary sanctions for non-compliance with
                                         laws and regulations.



                                                            Product responsibility indicators
                                  PR1    Life cycle stages in which health and safety impacts Determined as not of material impact on
                                         of products and services are assessed for            the City of Melbourne’s operations.
    Customer health and safety




                                         improvement, and percentage of significant products
                                         and services categories subject to such procedures.
                                  PR2    Total number of incidents of non-compliance with   Determined as not of material impact on
                                         regulations and voluntary codes concerning health the City of Melbourne’s operations.
                                         and safety impacts or products and services during
                                         their life cycle, by type of outcomes.




                                                                              91
                                                                      City of Melbourne    2008–09 Annual Report


                                PR3   Type of product and service information required by Determined as not of material impact on
Product and service labelling




                                      procedures and percentage of significant products the City of Melbourne’s operations.
                                      and services subject to such information
                                      requirements.
                                PR4   Total number of incidents of non-compliance with   Determined as not of material impact on
                                      regulations and voluntary codes concerning product the City of Melbourne’s operations.
                                      and service information and labelling.
                                PR5   Practices related to customer satisfaction including Our performance – page 61.
                                      results of surveys measuring customer satisfaction.


                                PR6   Programs for adherence to laws, standards and       The City of Melbourne’s marketing and
                                      voluntary codes related to marketing                communications (television
                                      communications, including advertising, promotion,   advertisements) produced during the
                                      and sponsorship.                                    last financial year have adhered to the
                                                                                          relevant laws, standards and voluntary
                                                                                          codes in accordance with Free TV
Marketing communications




                                                                                          Australia Limited, and the free-to-air
                                                                                          commercial television broadcasters.
                                PR7   Total number of non-compliance with regulations     The City of Melbourne’s advertising has
                                      and voluntary codes concerning marketing            adhered to relevant codes.
                                      communications, including advertising, promotion
                                      and sponsorship by type of outcomes.
                                PR8   Total number of substantiated complaints regarding Corporate governance – page 19.
                                      breaches of customer privacy and losses of
                                      customer data.
                                PR9   Monetary value of significant fines for non-        Determined as not of material impact on
                                      compliance with laws and regulations concerning     the City of Melbourne’s operations.
                                      the provision and use of products and services.




                                                                       92
                                                                     City of Melbourne            2008–09 Annual Report

OUR FINANCIALS
Prepared in accordance with the Local Government Act 1989, Local Government Regulations 2001, and
applicable Australian Accounting Standards.


Table of contents
UNDERSTANDING OUR FINANCIALS .................................................................................... 95
OUR FINANCIAL STATEMENTS ............................................................................................. 96
STANDARD STATEMENTS .................................................................................................... 100
  Standard statement of income....................................................................................................... 100
  Standard statement of income – comparison report ................................................................... 101
  Standard statement of balance sheet............................................................................................ 103
  Standard statement of cash flows (reconciliation) ....................................................................... 105
  Standard statement of cash flows (reconciliation) ....................................................................... 106
  Standard statement of council works ........................................................................................... 108
  Council works – comparison report .............................................................................................. 109
FINANCIAL STATEMENTS .................................................................................................... 110
  Income statement ........................................................................................................................... 110
  Statement of changes in equity (consolidated) ............................................................................ 113
  Statement of changes in equity (council) ..................................................................................... 114
NOTES TO THE FINANCIAL STATEMENTS ......................................................................... 115
  International financial reporting standards .................................................................................. 115
  Note 1. Significant accounting policies ........................................................................................ 116
  Note 2. Operating result attributable to functions/activities (consolidated) ............................... 124
  Note 3. Revenues from ordinary activities .................................................................................... 126
  Note 4. Expenses from ordinary activities .................................................................................... 129
  Note 5. Trade and other receivables ............................................................................................. 130
  Note 6. Inventories.......................................................................................................................... 131
  Note 7. Other financial assets – non current ................................................................................ 131
  Note 9. Property, plant, equipment and infrastructure................................................................. 133
  Note 9. Property, plant, equipment and infrastructure (continued) ............................................ 136
  Note 9. Property, plant, equipment and infrastructure (continued) ............................................ 137
  Note 10. Intangible assets .............................................................................................................. 138
  Note 11. Investment property ........................................................................................................ 139
  Note 12. Trade and other payables ................................................................................................ 140
  Note 12(a) Non-current. Trade and other payables ...................................................................... 140
  Note 13. Employee benefits ........................................................................................................... 141
  Note 14. Provisions ........................................................................................................................ 142
  Note 15. Reserves ........................................................................................................................... 142
  Note 16.a. Gains/(loss) on sale of fixed and intangible assets .................................................... 144
  Note 17. Cash flow information ..................................................................................................... 145
                                                                   City of Melbourne            2008–09 Annual Report


Note 18a. Leases and commitments ............................................................................................. 146
Note 18.b. Lease receivables ......................................................................................................... 146
Note 19. Contingent assets and liabilities .................................................................................... 147
Note 19A. Melbourne Wholesale Fish Market ............................................................................... 147
Note 19B. Contributed assets ........................................................................................................ 147
Note 19C. Kensington and North Melbourne ................................................................................ 147
Note 20. Superannuation................................................................................................................ 148
Note 21. Related party transactions .............................................................................................. 151
Note 22. Financial instruments ...................................................................................................... 153
Note 22. Financial instruments (continued) .................................................................................. 155
Note 22. Financial instruments (continued) .................................................................................. 156
Note 22. Financial instruments (continued) .................................................................................. 157
Note 22. Financial instruments (continued) .................................................................................. 158
Note 22. Financial instruments (continued) .................................................................................. 159
Note 23. Financial ratios ................................................................................................................ 162
Statement by Councillors, Chief Executive Officer and Principal Accounting Officer on the
Financial Report ............................................................................................................................. 164
Auditor-General’s report on the financial report .......................................................................... 165
Five year statistics.......................................................................................................................... 167




                                                                     94
                                                    City of Melbourne    2008–09 Annual Report


UNDERSTANDING OUR FINANCIALS
What do the financial statements show?
Our financial statements provide an insight into Melbourne City Council’s financial health. Our financial
statements show:
   how Melbourne City Council and its subsidiaries performed during the year
   the value of assets held by Melbourne City Council
   the ability of Melbourne City Council to pay its debts.
How are the financial statements audited?
These financial statements are prepared in accordance with the Local Government Act 1989 (Vic) and
the Australian Accounting Standards. They are audited by the Victorian Auditor-General, approved in
principle by Melbourne City Council’s Audit Committee and by the Melbourne City Council. These
auditing measures ensure the information provided is correct. Melbourne City Council has received a
clear audit of its Financial Statements for 2008–09.
What is in the financial statements?
The Financial Statements consist of four financial reports, explanatory notes supporting the reports and
endorsement from the Melbourne City Council and the Victorian Auditor-General. The four financial
reports are:
   income statement
   balance sheet
   statement of cash flows
   statement of changes in equity.
The explanatory notes detail Melbourne City Council’s accounting policies and the make-up of values
contained in the statements.
Consolidated and council statements
Our financial statements show our results for the last two years in two columns. Our subsidiary
companies are companies owned by Melbourne City Council but managed independently. Subsidiary
companies included in our financial statements are:
   CityWide Service Solutions
   Queen Victoria Market
   Melbourne Wholesale Fish Market.
Melbourne City Council has 100 per cent ownership of these subsidiaries. Our Sustainable Melbourne
Fund Trust is also included in the consolidated financial reports, but this is a trust and not a subsidiary
company.
CONSOLIDATED                                      COUNCIL
This column shows Melbourne City Council’s        This column shows Melbourne City Council’s
financial results including subsidiary            financial results excluding our subsidiary
companies.                                        companies.




                                                     95
                                                      City of Melbourne     2008–09 Annual Report


OUR FINANCIAL STATEMENTS
1. Income statement
The income statement shows how well we have performed during the year. This statement is prepared
on an accrual basis, which means that all revenue and costs for the year are recognised even though the
income may not yet be received or expenses not yet paid. The statement lists the sources of Melbourne
City Council’s revenue under income headings (such as rates, grants and parking fines) and the
expenses incurred in running Melbourne City Council during the year (such as employee costs and
contract payments).
Expenses included in the income statement relate only to our operations (our day-to-day running costs).
Costs associated with the purchase or building of assets are not included in the income statement.
However, depreciation (the value of an asset that is used up during the year) is included.
The key figure to look at is the ‘surplus for the year’ figure. A surplus means that our revenue was
greater than our expenses. Being in surplus for the year is equivalent to being in profit. For 2008–09, the
income statement is in surplus. This means that in 2008–09, Melbourne City Council created sufficient
funds to replace infrastructure assets when they needed to be replaced and met all of our expenditure
commitments.
2. Balance sheet
The balance sheet shows the assets Melbourne City Council owns and what it owes (its liabilities) as at
30 June 2009.
Assets and liabilities are separated into ‘current’ and ‘non-current’. Current assets or liabilities will fall
due in the next 12 months, such as money owed to Melbourne City Council by ratepayers (a current
asset) or the amount provided to pay employees when they take annual leave (a current liability).
Non-current assets and liabilities will fall due beyond 12 months, or will not be converted to cash in the
next 12 months, such as roads owned by Melbourne City Council (a non-current asset), or the amount
paid to employees when they take long service leave (a non-current liability).
Assets, with the exception of assets held at cost, are reviewed each year to ensure they reflect their ‘fair’
value. The bottom line of the balance sheet is net assets. This is the net worth of Melbourne City
Council, built up over many years.
As at 30 June 2009, our balance sheet shows Melbourne City Council is in a sound financial position.
Our current assets are 2.3 times our current liabilities. This means for every one dollar of current
liabilities, Melbourne City Council has $2.31 of current assets to pay the debt. This demonstrates
Melbourne City Council has sufficient funds on hand to pay liabilities as they fall due.
3. Statement of cash flows
The statement of cash flows summarises our cash receipts and payments for the financial year and
shows the net increase or decrease in cash held by Melbourne City Council. The statement of cash flows
represents cash ‘in hand’, whereas the income statement is prepared on an accrual basis (including
money not yet paid or spent). This means the values in both statements may differ.
Melbourne City Council’s cash arises from, and is used in, four main areas:
   the ‘cash flows from operating activities’ section summarises all income and expenses relating to
    Melbourne City Council’s delivery of services




                                                        96
                                                   City of Melbourne    2008–09 Annual Report


  the ‘net cash provided by operating activities’ figure must be in surplus to ensure we can maintain our
   day-to-day operations and provide funds for future community assets
 the ‘cash flows from financing activities’ represents any proceeds from borrowings Melbourne City
   Council has received during the year
 the ‘cash flows from investing activities’ refers to Melbourne City Council’s capital works expenditure
   or other long-term revenue producing assets, as well as money received from the sale of assets.
During the year, Melbourne City Council has operated with a net outflow of cash. An outflow of cash
means that Melbourne City Council has decreased cash holdings as cash payments exceeded cash
receipts. In 2008–09, our cash at the end of the financial year decreased by $10 million. This was largely
due to the completion of capital works projects during the year that had been carried forward from the
previous year.
4. Statement of changes in equity
The statement of changes in equity summarises changes in Melbourne City Council’s net worth. Our net
worth can change as a result of:
   a surplus (profit) or deficit (loss) recorded in the income statement
   the use of monies from Melbourne City Council’s reserves (such as the Public Open Space Reserve,
    used to fund capital projects)
 an increase in the value of non-current assets resulting from a revaluation of those assets.
With re-valued assets, the increased value amount is transferred to an Asset Revaluation Reserve until
the asset is sold.
The note column
Our financial statements contain a note column, with additional information relating to an item. Notes are
particularly useful where there has been a significant change from the previous year’s comparative
figure.
Our standard statements
Our standard statements provide a comparison between the actual results for the year and the budget
that was set at the start of the year. Any major differences are explained in the accompanying notes.
The standard statements section includes three of the four statements mentioned above (income
statement, balance sheet and statement of cash flows) together with another statement, the statement of
council works.
The statement of council works sets out our expenditure on maintaining, creating or buying property,
infrastructure, plant and equipment assets. This statement shows how much has been spent on
renewing, refurbishing, upgrading, expanding or creating new assets.
Statement by councillors, Chief Executive Officer and Principal Accounting Officer
The certification of the Principal Accounting Officer is made by the person responsible for the financial
management of the City of Melbourne, that in his (or her) opinion, the financial statements have met all
the statutory and professional reporting requirements.
The certification of councillors is made by two councillors on behalf of the Melbourne City Council that, in
their opinion, the financial statements are fair and not misleading.




                                                     97
                                                     City of Melbourne    2008–09 Annual Report


Auditor-General’s report on the financial report
This document provides a written undertaking of the accuracy, fairness and completeness of the
accounts. The audit report from the Auditor-General provides an independent view of the statements and
advises the reader if there are any issues of concern. No issues were raised by the Auditor-General in
regard to the 2008–09 statements.
Who do we work with?
 Melbourne City Council’s external auditor is the Victorian Auditor-General.
 Melbourne City Council’s internal auditor is Ernst & Young.
 Melbourne City Council’s banker is Westpac Banking Corporation.
Acronyms used in these notes include:
A-IFRS Australian equivalents to International Financial Reporting Standards
IFRS International Financial Reporting Standards
GAAP Generally Accepted Accounting Principles
AASB Australian Accounting Standards Board
GST Goods and Services Tax
PINS Parking Infringement Notice System
VAGO Victorian Auditor General’s Office
Definitions
Current assets: total current assets as shown in the balance sheet.
Current liabilities: total current liabilities as shown in the balance sheet.
Debt redemption: includes the principal component of repayments on loans and financial leases and
capital items purchased on vendor terms, and contributions to sinking funds.
Debt servicing costs: includes interest and charges on loans, overdrafts, and interest on payments for
capital items purchased on vendor terms.
Rate revenue: includes revenue from general rates, municipal charges, special rates, special charges,
service rates and service charges.
Total indebtedness: total liabilities, both current and non-current, as shown in the balance sheet.
Total realisable assets: total current assets and total realisable non-current assets.
Total revenue: total revenue as shown in the income statement.
Basis of preparation
The City of Melbourne is required to prepare and include audited standard statements within its annual
report. Under the Local Government Act 1989 (Vic), four statements (and explanatory notes) are
required:
   a standard statement of income
   a standard statement of balance sheet
   a standard statement of cash flows
   a standard statement of council works.




                                                      98
                                                   City of Melbourne   2008–09 Annual Report


These statements and supporting notes form a special-purpose financial report prepared to meet the
requirements of the Local Government Act and the Local Government (Finance and Reporting)
Regulations 2004.
The standard statements have been prepared on accounting bases consistent with those used for the
financial reports and the budget. The results reported in these statements are consistent with those
reported in the financial report. They are not a substitute for the financial reports, and have not been
prepared in accordance with all Australian Accounting Standards or other authoritative professional
pronouncements.
The standard statements compare Melbourne City Council’s financial plan, expressed through its annual
budget, with actual performance. The Local Government Act requires explanation of any material
variances. Melbourne City Council has adopted a materiality threshold of 10 per cent. Explanations have
not been provided for variations below the materiality threshold unless the variance is considered to be
material because of its nature.
The budget figures included in the standard statements are those adopted by the Melbourne City Council
on 24 June 2008. The budget was based on assumptions that were relevant at the time of adoption of
the budget. The Melbourne City Council set guidelines and parameters for revenue and expense targets
in this budget in order to meet Melbourne City Council’s business plan and financial performance targets
for both the short and long-term.
The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were
not considered predictable. Detailed information on the actual financial results is contained in the
financial reports. The detailed budget can be obtained from the City of Melbourne’s website
www.melbourne.vic.gov.au or by phoning the City of Melbourne on (03) 9658 9658.
The standard statements must be read with reference to these documents.




                                                    99
Standard Statements                       City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009




STANDARD STATEMENTS
Standard statement of income

                                        Actuals    Budget
                                        2008/09    2008/09        Variance
                                         $'000's    $'000's    $'000's           %     Ref

 Revenues
  Rates                                 170,541    169,949        592           0%

  Grants and Subsidies
    - Operating                          22,494      9,459     13,035          138%    1
    - Capital and Asset Contributions         0      6,821     (6,821)       (100%)    2
  Parking Fees                           32,486     33,421       (935)          (3%)
  Parking Fines                          43,326     41,407       1,919            5%
  Sundry Fees & Charges                  16,776     16,088         688            4%
  Property Rental and Hire                6,735      6,675          60            1%
  Sales & Recoveries                      7,515      3,951       3,564          90%    3
  Finance Income                          9,095      6,776       2,319          34%    4
  Intercompany Revenue                   16,056     12,973       3,083          24%    5
 Total Revenue                          325,024    307,520     17,504             6%

 Expenditure
  Employee Cost                          87,118     88,924       1,806           2%
  Materials and Services                124,832    123,151     (1,681)         (1%)
  Financial and Insurance Cost           11,259     12,404       1,145           9%    6
  Grants and Contributions               15,712     14,655     (1,057)         (7%)    7
  Government Taxes & Levies               3,570      3,552        (18)         (1%)
  Depreciation and amortisation          43,885     46,948       3,063           7%    8
  Maintenance Costs                       6,651      5,855       (796)        (14%)    9
 Total Expenses                         293,027    295,489      2,462           1%


 Net gain (loss) on asset disposal       (2,349)        5      (2,354)        100%     10
 Contributed assets                       18,821      -         18,821        100%     11
 Transfer assets to external parties    (23,475)      -       (23,475)        100%     12
 Net Surplus/(Deficit)                   24,994    12,036      12,958        108%
Standard Statements                              City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009




Standard statement of income – comparison report

     Ref.             Item                                     Commentary
      1     Grants and subsidies       Additional grants and contributions received in relation to:
            (revenue) – operational
                                       aged care
                                       Arts House special projects
                                       general purpose operating grants
                                       Office of Knowledge Capital
                                       Signal Box refurbishment project.
      2     Grants and subsidies       Additional external contributions received in relation to:
            (Revenue) – capital and
                                       Docklands childcare project
            asset contributions
                                       City and North Melbourne libraries
                                       public open space
                                       Arts House Meat Market.
      3     Sales and recoveries       The favourable variance results from additional recoveries
                                       received for work undertaken in relation to:
                                       general valuation fee from the State Revenue Office
                                       insurance recovery from previous claims
                                       legal cost recoveries from Court proceedings and debt
                                            collection services
                                       property valuation information
                                       cost recoveries from events.
      4     Finance income              The favourable variance is due to higher investment
                                        interest generated in the first half of the financial year and
                                        a dividend distribution from Sustainable Melbourne Fund
                                        trust.
      5     Intercompany revenue       The favourable variance is mainly due to a special
                                       dividend from Melbourne Wholesale Fish Market (MWFM)
                                       from the proceeds of the compulsory acquisition by the
                                       State of a portion of the MWFM site.
      6     Financial and insurance    Lower insurance premiums and improved debt collection
            cost                       resulted in favourable finance costs.
      7     Grants and contributions   Council’s donation for to the Victorian bush fire appeals
            (expense)                  was unbudgeted.




                                                  101
Standard Statements                             City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009



      8    Depreciation and           This favourable variance is related to the capital works
           amortisation               program not being fully spent and a revaluation
                                      adjustment to infrastructure assets in the prior year,
                                      resulting in lower depreciation actuals.
      9    Maintenance costs          Additional external contributions were received for
                                      maintenance works which were not budgeted.


      10   Net gain/(loss) on asset   The disposal of the Drill Hall resulted in a loss that was
           disposal                   unbudgeted.
      11   Contributed assets         Contributed infrastructure assets from the Docklands
                                      development (including first- time recognition of land under
                                      roads) and contributed assets from the Commonwealth
                                      Games village was not budgeted.
      12   Transfer assets to         Park assets and land on Gosch’s paddock transferred to
           external parties           external parties was unbudgeted.




                                                102
Standard Statements                          City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009




Standard statement of balance sheet

                                       Actuals       Budget
                                       2008/09       2008/09       Variance
                                        $'000's       $'000's    $'000's          %     Ref
ASSETS
Current Assets
Cash assets                            113,312        88,682      24,630        28%     1
Receivables                             23,858        23,963       (105)        (0%)
Other Assets                             6,559         3,900       2,659        68%     2
Total Current Assets                   143,729       116,545      27,184        23%

Non-Current Assets
Investments                              32,818        31,891        927         3%
Intangibles                               3,647         3,680       (33)       (1%)     3
Investment Properties                    89,446        78,316     11,130        14%     3
Property, Plant and Infrastructure    2,598,941     2,344,965    253,976        11%     3
Total Non-Current Assets              2,724,852     2,458,852    266,000      10.8%

TOTAL ASSETS                          2,868,581     2,575,397    293,184        11%

LIABILITIES
Current Liabilities
Payables                                43,671        47,064       3,393          7%    4
Employee entitlements                   18,115        18,585         470          3%
Provisions                                 467           400        (67)       (17%)    5
Total Current Liabilities               62,254        66,049       3,795          6%

Non-Current Liabilities
Employee entitlements                    3,656         3,646        (10)         (0%)
Non-Current Payables                     6,849          -        (6,849)        100%    6
Total Non-Current Liabilities           10,505         3,646     (6,859)      (188%)

TOTAL LIABILITIES                       72,759        69,695     (3,064)        (4%)

NET ASSETS                           2,795,822    2,505,707     290,119        12%

Equity
Accumulated Surplus                   1,726,002    1,667,606      58,396         4%
Reserves                              1,069,820      838,101     231,719        28%
TOTAL EQUITY                         2,795,822    2,505,707     290,114        12%




                                              103
Standard Statements                             City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009



Standard statement of balance sheet – comparison report

     Ref.           Item                                  Commentary
       1    Cash assets           The higher cash balance was the result of the actual opening
                                  cash balance on 1 July 2008 being higher than budget and
                                  the 2008–09 capital works program (including carry forwards)
                                  not being fully spent during the year. The budget had
                                  anticipated all capital expenditure including ‘carry forward’
                                  would be spent. These events combined with council’s higher
                                  surplus for 2008–09 resulted in a positive cash balance
                                  against budget.
       2    Other (current)       Dividend and tax equivalent payments from council’s
            assets                subsidiaries at the 30th June 2009 not yet received.
       3    Intangible assets,    A revaluation of land conducted in June 2008 showed a
            property, plant and   strong increase in land values across the municipality which
            infrastructure and    resulted in a significant increase in investment properties and
            investment            land values. This increase in asset values was not reflected in
            properties            the 2008–09 budget, as the budget was prepared prior to the
                                  revaluation being undertaken.
                                  There was also an increase in assets during the year as
                                  council capitalised municipal assets as a result of the
                                  boundary realignment relating to Kensington and North
                                  Melbourne. In addition to this, the council also received
                                  contributed land assets from the Commonwealth Games
                                  Village and infrastructure assets from Docklands (including
                                  land under roads) during the year.
       4    Payables              Lower operating accruals resulted in ‘trade and other
                                  payables’ being lower than budgeted.
       5    Provisions            The higher level of provisions primarily relates to the boundary
                                  changes for Kensington and North Melbourne.
       6    Non-current           The ‘non- current payables’ represent ‘payables’ to
            payables              Docklands. This was budgeted under ‘trade and other
                                  payables’.




                                                104
Standard Statements                            City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009




Standard statement of cash flows (reconciliation)

                                            Actuals     Budget
                                            2008/09     2008/09          Variance
                                             $'000's     $'000's    $'000's          %    Ref

Net Surplus/(deficit) from operations        24,994     12,036     12,958

Add back:
 Depreciation and amortisation                43,887    46,948      (3,061)       (7%)    1
 Loss/(Profit) on sale of assets               2,349       -          2,349      100%     2
 Contributed assets                         (18,821)       -       (18,821)    (100%)     3
 Recognition of increase in investments         -       (1,800)       1,800    (100%)     4
 Transfer assets to external parties          23,475       -         23,475      100%     5

Net movement in working capital              (5,725)    (9,211)      3,486      (38%)     6

Funds available for investing activities    70 159     47 973      22,186           46%

 Capital expenditure                        (77,973)   (73,372)     (4,601)         6%    7
 Payment from CityWide Loan                      111         40          71      178%     8
 Joint Venture payment                         (580)      (600)          20       (3%)
 Proceeds from sale of assets                  1,420        625         795      127%     9
 Investment in Sustainable Melbourne Fund    (1,170)          -     (1,170)    (100%)     10
 Finance costs                               (2,026)          -     (2,026)    (100%)     11

Cash inflow / (outflow)                     (10,059)   (25,334)    15,275      (60% )

Bank Account (Opening Balance)              123 372    114 016      9 356            8%
Bank Account (Closing Balance)              113 312     88 682     24 630           28%




                                                105
Standard Statements                               City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009




Standard statement of cash flows (reconciliation)

     Ref.            Item                                    Commentary
      1     Depreciation and        This favourable variance is related to the capital works
            amortisation            program not being fully spent and a revaluation adjustment to
                                    infrastructure assets in the previous year.
      2     Loss/(profit) on sale   The disposal of the Drill Hall resulted in a loss that was
            of assets               unbudgeted.
      3     Contributed assets      Contributed infrastructure assets from the Docklands
                                    development (including first-time recognition of land under
                                    roads) and contributed assets from the Commonwealth
                                    Games Village was unbudgeted.
      4     Recognition of          A revaluation of investment properties conducted showed no
            increase in             major change in the value of council’s investment properties.
            investments             This reflects the current state of the commercial property
                                    market.
      5     Transfer assets to      Park assets and land on Gosch’s paddock transferred to
            external parties        external parties was unbudgeted.
      6     Net movement in         At the 30 June 2009 ‘payables’ were lower than budgeted,
            working capital         reflecting creditor payments.
      7     Capital expenditure     Higher external capital contributions for projects resulted in
                                    higher capital expenditure.
      8     Payment from            The cash inflow relates to repayments by council’s
            CityWide loan           subsidiaries.
      9     Proceeds from sale      The higher inflow of funds represents proceeds from the sale
            of assets               of council’s properties and fleet vehicles.
      10    Investment in           Unbudgeted investment in Sustainable Melbourne Fund.
            Sustainable
            Melbourne Fund
      11    Finance costs           A change in the classification of finance costs from an
                                    ‘operating expense’ to a ‘financing activity’ in the cash flow
                                    statement – in accordance with accounting requirements –
                                    resulted in this variance. Finance costs relating to insurance
                                    and bank charges were budgeted in the income statement.




                                                   106
Standard Statements                                     City of Melbourne      2008–09 Annual Report
For the year ended 30 June 2009




Standard Statement of Cashflow

                                                              Actuals       Budget
                                                              2008/09       2008/09          Variance
                                                               $'000's       $'000's    $'000's           %
Cash Inflows/(Outflows) from Operating Activities
Receipts
  Rates, Fees and Charges                                      281,802      252,043     29,759        12%
  Grants and Other Contributions                                23,768       16,280       7,488       46%
  Interest received                                              7,887        6,776       1,111       16%
  Dividends Received - Subsidiaries                              8,240            -       8,240     100%
  Tax Equivalents - Subsidiaries                                 3,282            -       3,282     100%
  Other (including Sales & Recoveries)                          23,516       32,551     (9,035)     (28%)
Payments
   Employee Cost                                               (85,670)     (88,243)      2,573       (3%)
   Materials and Services                                     (189,096)    (159,029)   (30,067)       19%
   Financial Cost                                               (3,571)     (12,404)      8,833    (100%)
Net Cash Provided by Operating Activities                       70,159       47,974     22,184       46%

Cash Inflows/(Outflows) from Investing Activities
  Proceeds from sale of property, plant and equipment             1 420         625         795     127%
  (Payments) Receipts for Property, Infrastructure,           ( 77 973)    ( 73 372)   ( 4 601)          6%
  Plant and Equipment
  Joint Venture Payment                                          ( 580)      ( 600)          20         (3%)
  Loans to subsidiaries                                              111         40          71     100%
  Investment in Sustainable Melbourne Fund                      ( 1 170)          0     (1,170)     100%
Net Cash Used by Investing Activities                         (78,192)     (73,307)    (4,885)       7%

Cashflows from Financing Activities
 Finance costs                                                 ( 2 026)           0     ( 2 026)         0%
Net Cash Used from Financing Activities                       ( 2 026)            0    ( 2 026)         0%

Net Increase/(decrease) in Cash Held                          (10,059)     (25,333)    15,274      (60% )

Cash at beginning of the financial year                       123,372      114,016       9,356          8%

Cash at end of the financial year                             113,312       88,683     24,629       28%




                                                        107
Standard Statements                             City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009




Standard statement of council works
                                  Actuals      Budget
                                   2008/09      2008/09        Variance
                                     $'000's     $'000's    $'000's           %    Ref

Maintenance
Capital Grants                         1,886      1,240       646           52%
Maintenance                            4,684      4,540       144            3%
Minor                                     80         75         5            7%
Total Maintenance                     6,651       5,855       795          14%      1

Capital Works
New Works/Upgrade                    34,248       26,478     7,770          29%
Renewal/Refurbishment                30,504       27,265     3,239          12%
Total Capital Expenditure           64,752       53,743    11,009          20%      2

Total Council Works Expenditure     71,403       59,598    11,804          20%

Carried Forward Capital Works
- Other                              10,395      19,587     (9,192)        (47%)
                                    10,395      19,587     (9,192)        (47% )

Total Council Works Expenditure     81,798       79,185     2,612           3%
Standard Statements                              City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009




Council works – comparison report

  Ref.           Item                                        Commentary
    1    Maintenance              Additional external contributions were received for maintenance
                                  works which was that were not budgeted. ($0.72 million). This
                                  included:
                                  Urban Camp improvements
                                  Signal Box refurbishment
                                  City Library modification
                                  Meat Market building and equipment.
    2    Capital expenditure      City of Melbourne’s council works program in 2008–09 included
                                  $8.14 million of unbudgeted works funded by additional
                                  contributions received from external parties, including purchase of
                                  the Victoria Square site for ($4.15 million).
                                  Highlights for the year included the completion or progress of the
                                  following projects:
                                  Yarra pedestrian bridge, $15.00 million
                                  Roadways/footpaths renewals, $7.70 million
                                  Integrated Corporate System, $3.90 million
                                  Flagstaff Gardens Bowling Club, $3.80 million
                                  Manningham Street pedestrian & and bicycle bridge, $2.30 million
                                  Melbourne Zoo northern- entrance car park, $2.10 million
                                  Culture Precinct improvement project, $2.08 million
                                  Kensington childcare expansion, $2.05 million.




                                                  109
Financial Statements                                    City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009




FINANCIAL STATEMENTS
Income statement

For the year ended 30 June 2009
                                                        Consolidated                             Council
                                                     2009          2008                  2009              2008
                                                     $'000         $'000     Note        $'000             $'000
 Revenues from ordinary operations
  Rates                                             170,541       156,804   1(d),3(a)   170,541            156,804

  Grants and other contributions                     22,687        18,020   1(d),3(d)    22,494             17,905
  Parking Fees                                       35,546        34,475     3(b)       32,486             31,312
  Fines                                              43,326        38,993     1(d)       43,326             38,993
  Property revenue                                   22,092        41,400                 6,735             26,468
  Other Fees & Charges                              114,279       118,384                16,776             14,898
  Intercompany Revenue                                   -            -                  16,056             13,199
  Finance Income                                      8,795         9,656     3(c)        9,095              8,512
  Sales & Recoveries                                 17,673         7,753                 7,515              4,109
                                                    264,398       268,680               154,483            155,396

 Total Revenue                                      434,939      425,484                325,024        312,200

 Expenses from ordinary operations
  Employee benefit expense                          141,557      130,480      4(a)       87,118         81,109
  Contract Payments, Materials and Services         171,442      171,252      4(b)      131,483        122,564
  Depreciation and amortisation                      53,316       49,840      4(c)       43,885         42,501
  Finance costs                                      12,321       14,565      4(d)       11,259         11,897
  Other Expenses                                     19,794       18,985      4(e)       19,282         18,534
 Total Expenses                                     398,430      385,123                293,027        276,605

 Net gain/(loss) on disposal of property, plant &
 infrastructure                                      (2,647)       4,968    16(a,b)      (2,349)            4,880
 Contributed Assets                                  18,821       53,532     19(b)       18,821            53,532
 Transfer assets to external parties                (23,475)         -                  (23,475)              -
 Surplus for the year                               29,208        98,861                24,994             94,007




The income statement should be read with the accompanying notes to the financial statements.
Financial Statements                                City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009



Balance sheet
As at 30 June 2009
                                            Consolidated                                Council
                                        2009           2008                    2009                2008
                                        $'000          $'000      Note         $'000               $'000
ASSETS
Current Assets
Cash and cash equivalents              111,470       120,210      17(b)        99,037             108,993
Trade and other Receivables             37,366        87,097        5          23,858              68,277
Accrued Income                          3,107         3,381                    1,926               2,402
Inventories                              382           497          6             -                   -
Other Financial Assets                  14,275        14,379     7,17(b)       14,275              14,379
Other Assets                             826           581         8(a)        4,633               4,512
                                       167,426       226,145                  143,729             198,563
Non Current Assets held for sale           -          2,770       8(b)            -                2,770
Total Current Assets                   167,426       228,915                  143,729             201,333

Non-Current Assets
Other Financial Assets                    3,042        3,042        7           32,818          31,759
Intangible assets                        13,499       12,975       10            3,647           3,744
Property, Plant and Infrastructure     2,659,254     2,604,309      9         2,598,941        2,535,238
Investment Property                      89,446       79,336       11           89,446          79,336
Total Non-Current Assets               2,765,241    2,699,662                 2,724,852       2,650,077

TOTAL ASSETS                           2,932,667    2,928,577                 2,868,581       2,851,410

LIABILITIES
Current Liabilities
Trade and Other Payables                53,941        71,051       12          43,671             53,744
Employee benefits                       25,480        23,369      13(a)        18,115             16,862
Provisions                               622           755         14           467                555
Total Current Liabilities               80,043        95,175                   62,254             71,162

Non-Current Liabilities
Interest Bearing Liability               7,500        10,600                      -                  -
Employee benefits                        5,208        4,336       13(b)         3,656              2,929
Non-Current Payables                     6,849        7,954       12(a)         6,849              7,954
Net Liability of City of Melbourne's
Defined Benefits Superannuation Fund    10,355        (3,784)    1(f), 20         -
Total Non-Current Liabilities           29,912        19,106                   10,505             10,883

TOTAL LIABILITIES                      109,957       114,281                   72,759             82,045

NET ASSETS                             2,822,710    2,814,296                 2,795,822       2,769,365

Equity
Accumulated Surplus                    1,744,468     1,729,147                1,726,002        1,700,761
Reserves                               1,078,242     1,085,149     15         1,069,820        1,068,604
TOTAL EQUITY                           2,822,710    2,814,296                 2,795,822       2,769,365


The balance sheet should be read with the accompanying notes to the financial statements.




                                                     111
Financial Statements                                         City of Melbourne        2008–09 Annual Report
For the year ended 30 June 2009



Statement of cash flows
For the year ended 30 June 2009


                                                                 Consolidated                            Council
                                                              2009          2008                 2009              2008
                                                              $'000         $'000       Note     $'000             $'000

  Cash Flows from Operating Activities

  Receipts
   Rates, Fees and Charges (inclusive of GST)                393,511       340,625              281,802        250,527
   Grants and Other Contributions (inclusive of GST)          23,961        19,134               23,768         19,019
   Interest                                                    8,758         9,610                7,887          8,466
   Dividends Received                                            38           46                  8,240          3,803
   Tax equivalents                                                -            -                  3,282          3,701
   Other (including Sales & Recoveries) (inclusive of GST)    28,072        27,500               23,516         18,426
  Payments
   Employee benefit expense                                  (128,745)    (124,560)              (85,670)      (75,770)
   Materials and Services (inclusive of GST)                 (218,414)    (193,037)             (189,096)     (161,399)
   Other (inclusive of GST)                                   (4,381)      (8,844)                (3,571)       (8,381)
  Net Cash provided by Operating Activities                  102,799       70,472       17(a)    70,159        58,394

  Cash Flows from Investing Activities
   Proceeds from sale of property, infrastructure, plant
  and equipment                                               1,420        10,674                1,420             10,673
   Payments for property, infrastructure, plant and
  equipment                                                  (97,167)      (77,957)              (77,973)      (62,989)
  Investment in Sustainable Melbourne Fund                                                        (1,170)
  Joint Venture Payments                                         -                                 (580)
   Loans to subsidiaries                                         -              -                   111          76
  Net Cash used by Investing Activities                      (95,747)     (67,283)              (78,192)      (52,240)

  Cash Flows from Financing Activities
  Proceeds from borrowings                                     (3,100)      1,200                  -              -
  Fianance costs (inclusive of GST)                           (12,793)     (4,783)              (2,026)        (2,115)
  Net Cash used by Financing Activities                      (15,893)      (3,583)              (2,026)        (2,115)

  Net Increase/(decrease) in Cash Held                       (8,841)        (394)               (10,059)           4,039

  Cash at beginning of the financial year                    134,586      134,979               123,372        119,334

  Cash at end of the financial year                          125,745      134,586       17(b)   113,312        123,372



The statement of cash flows should be read in conjunction with the accompanying notes to the financial
statements.




                                                             112
Financial Statements                                                                                  City of Melbourne      2008–09 Annual Report
For the year ended 30 June 2009


Statement of changes in equity (consolidated)
For the year ended 30 June 2009
                                                                   Total Equity          Accumulated Surplus       Asset Revaluation        Other Reserves
                                                                                                                          Reserve
                                                             2009             2008       2009         2008        2009              2008    2009      2008
                                                     Note    $'000            $'000      $'000        $'000       $'000             $'000   $'000     $'000

   Balance at beginning of the financial year               2,814,296       2,486,208   1,729,144    1,635,896   1,083,383      848,198     1,769     2,114

   Surplus for the year                                      29,208           98,861     29,208       98,861         -                -       -         -
   Actuarial expense - City of Melbourne's Defined
   Benefits Superannuation Fund                              (14,136)         (5,337)    (14,136)     (5,337)
   Asset Revaluation                                 15       (6,554)         235,185                              (6,554)      235,185       -          -
   Reserve for Public Open Space                     15                                    251         (276)           -           -        (251)      276
   Investments Revaluation Reserve                   15        (104)           (621)                                   -           -        (104)     (621)
   Balance at end of the financial year                     2,822,710       2,814,296   1,744,467    1,729,144   1,076,829     1,083,383    1,414     1,769



This statement of changes in equity (Consolidated) should be read in conjunction with the accompanying notes to the financial statements.




                                                                                  113
Financial Statements                                                                                 City of Melbourne      2008–09 Annual Report
For the year ended 30 June 2009


Statement of changes in equity (council)
For the year ended 30 June 2009

                                                                 Total Equity           Accumulated Surplus        Asset Revaluation      Other Reserves
                                                                                                                       Reserve

                                                             2009           2008        2009          2008       2009          2008         2009      2008
                                                  Note       $'000          $'000       $'000         $'000      $'000         $'000        $'000     $'000




  Balance at beginning of the financial year               2,769,366     2,444,130    1,700,758     1,607,027   1,066,839     834,989       1,769     2,114

  Surplus for the year                                       24,994        94,007       24,994       94,007          -            -            -         -
  Asset Revaluation                               15          1,568       231,850          -            -          1,568       231,850         -         -
  Reserve for Public Open Space                   15            -             -          251          (276)          -            -         (251)      276
  Investments Revaluation Reserve                 15          (104)         (621)          -                         -            -         (104)     (621)
  Balance at end of the financial year                     2,795,821     2,769,366    1,726,003     1,700,758   1,068,407     1,066,839     1,414     1,769




This statement of changes in equity (council) should be read in conjunction with the accompanying notes to the financial statements.




                                                                                114
Notes to the Financial Statements                  City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009



NOTES TO THE FINANCIAL STATEMENTS
The Melbourne City Council is a body corporate constituted pursuant to the Local Government Act
1989 to provide for the peace, order and good government of its municipal district. The financial report
has been drawn up in accordance with that Act and related Regulations.
The purpose of the council is to:
   provide for the peace, order and good government of its municipal district
   to promote the social, economic and environmental viability and sustainability of the municipal district
   to ensure that resources are used efficiently and effectively and services are provided in accordance
    with the Best Value.
Principles to best meet the needs of the local community:
   to improve the overall quality of life of people in the local community
   to promote appropriate business and employment opportunities
   to ensure that services and facilities provided by the council are accessible and equitable
   to ensure the equitable imposition of rates and charges
   to ensure transparency and accountability in council decision making.
        External Auditor – Victorian Auditor-General's Office
        Internal Auditor – Ernst & Young
        Solicitors – Hunt & Hunt, Mallesons Stephen Jaques, Blake Dawson, Maddocks
        Banker – Westpac
        Website address – www.melbourne.vic.gov.au
This financial report is a general purpose financial report that consists of an income statement,
balance sheet, statement of cash flows, statement of changes in equity and notes accompanying
these financial statements. The general purpose financial report complies with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board,
Australian Accounting Interpretations, the Local Government Act 1989, and the Local Government
(Finance and Reporting) Regulations 2004.
International financial reporting standards
Australian Accounting Standards include Australian equivalents to International Financial Reporting
Standards (IFRS). This Financial Report complies with the Australian equivalents to IFRS (A-IFRS).




                                                    115
Notes to the Financial Statements                   City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 1. Significant accounting policies
The significant policies, which have been adopted in the preparation of this financial report, are:
(a)    Basis of preparation
       The financial report has been prepared on the going concern basis and historical costs, except
       where otherwise stated, and accrual accounting principles. Unless otherwise stated, the
       accounting policies adopted are consistent with those of the previous year. Where appropriate,
       comparative figures have been amended to accord with current presentation and disclosure
       made of material changes to comparatives.
(b)    Principles of consolidation
       The consolidated results in the financial report include all funds through which the Melbourne City
       Council controls resources to carry on its functions. In the process of reporting on the Melbourne
       City Council as a consolidated unit, all intra and inter entity balances and transactions have been
       eliminated.
       CityWide Service Solutions Pty Ltd, Queen Victoria Market Pty Ltd and Melbourne Wholesale
       Fish Market Pty Ltd are all wholly owned subsidiaries of the council incorporated in Australia and
       are included in the consolidated financial report.
       The Sustainable Melbourne Fund Trust is a wholly controlled trust of the council and is included
       in the consolidated financial report.
(c)    Taxation
       Melbourne City Council is exempt from the payment of income tax and capital gains tax.
       Payments for Fringe Benefits Tax and Goods and Services Tax (GST) are made in
       accordance with the relevant legislation. Payments for payroll tax are only made by the
       trading entities controlled by the Melbourne City Council.
       The wholly owned subsidiaries are subject to the Melbourne City Council’s tax equivalence
       policy. Where the subsidiary is exempt from certain taxes it pays an equivalence of the tax to
       Melbourne City Council.
       Revenues, expenses and assets are recognised net of the amount of GST, except where the
       amount of GST incurred is not recoverable from the Australian Taxation Office. In these
       circumstances the GST is recognised as part of the cost of acquisition of the asset or as part
       of an item of the expense.
       Cash flows are presented in the cash flow statement on a gross basis, except for the GST
       component of investing and financing activities, which are disclosed as operating cash flows.
(d)    Fees, fines, charges, rates, grants, and other contributions
       Fees and charges are recognised as revenue when services are provided or the cash is
       received, whichever occurs first.
       Fines are recognised as revenue when the penalty is imposed.
       Rates, grants, and other contributions are recognised as revenues when Melbourne City Council
       obtains control over the related assets. Control over assets acquired from rates is obtained at the
       commencement of the rating period or, where earlier, upon receipt of the rates. Control over
       granted assets is normally obtained upon their receipt or upon prior written notification that a
       grant has been secured.
       Where contributions recognised as revenues during the financial year were obtained on the




                                                    116
Notes to the Financial Statements                     City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


      condition that they be expended in a particular manner or used over a particular year, and
      those conditions were undischarged as at the reporting date, the nature of any amounts
      pertaining to those undischarged conditions are disclosed in Note 3(e). That note also
      discloses the amount of contributions recognised as revenues in previous financial years,
      which were expended in respect of Melbourne City Council’s operations during the current
      financial year.
      Tax equivalents and dividends from subsidiaries are recognised as income when received or
      amounts have been declared at the respective subsidiary companies’ board meetings.
      Revenue arising from service contracts is recognised by reference to the stage of completion of
      the contract, unless the outcome of the contract cannot be reliably estimated. The stage of
      completion is determined by reference to the proportion that costs incurred to date bear to the
      estimated total costs of the contract. Administrative overheads are not included in the costs of
      the contract for this purpose. Where the outcome of a contract cannot be reliably estimated,
      contract costs are recognised as an expense as incurred, and where it is probable that the costs
      will be recovered, revenue is recognised to the extent of costs incurred.
(e)   Intangibles
      (i)    Goodwill
             Where an entity or operation is acquired, the identifiable net assets acquired are
             measured at fair value. Fair value is defined in note 1(k)(iii). The excess of the fair
             value of the cost of acquisition over the fair value of the identifiable net assets acquired
             is brought to account as goodwill. Goodwill is not amortised, but tested for impairment
             annually.
      (ii)     Licences
               Licences are recorded at cost and amortised on a straight line basis over a 20 month
               period.
      (iii)    Software
               Software, that is not an integral part of the related hardware, is classified as
               intangibles, recorded at cost and amortised on a straight line basis over a 5 year
               period.
                                      Goodwill                     Licences                     Software
        Useful lives                  Indefinite                     Finite                       Finite
        Method used              Not depreciated or         20 months – straight line     5 Years – straight line
                                      revalued
        Internally                    Acquired                     Acquired                     Acquired
        generated/
        acquired
        Impairment     test/    Reviewed annually for         Amortised method              Amortised method
        recoverable            indication of impairment   reviewed at each financial    reviewed at each financial
        amount test                                              year-end.                 year-end; Reviewed
                                                                                         annually for indication of
                                                                                               impairment




                                                      117
Notes to the Financial Statements                 City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


(f)   Employee benefits
      Wages, salaries, annual and long service leave
      Liabilities for employees’ entitlements to wages and salaries, annual leave, and other employee
      benefits which are expected to be paid or settled within 12 months of balance date are accrued at
      nominal amounts calculated on the basis of 2008–09 wage and salary rates and payroll based on
      costs in accordance with AASB 119 ‘Employee Benefits’.
      Liabilities for other employee benefits which are not expected to be paid or settled within 12
      months of balance date are accrued as per AASB 119 at the present values of future amounts
      expected to be paid based on 4.5 per cent per annum projected weighted average increase in
      wage and salary rates and payroll based on costs over an average period of five years. Present
      values are calculated using the government guaranteed securities rates with similar maturity
      terms.
      Superannuation
      Council has an ongoing obligation to share in the future experience of the City of Melbourne
      Superannuation defined benefits sub-plan. Favourable or unfavourable variations may arise
      should the experience of the Funds differ from the assumptions made by the Funds’ actuary in
      estimating the Funds’ accrued benefit liability.
      An asset or liability is recognised in the consolidated financial statements as the council’s share
      of the scheme’s assets or liabilities, being the difference between the present value of
      employees’ accrued benefits and the net market value of the scheme’s assets at balance date.
      The asset also includes applicable contributions tax of 15 per cent.
      Superannuation expense for the reporting year is the amount of statutory contribution Melbourne
      City Council makes to superannuation funds, which provides benefits to employees.
      Details of these arrangements are set out in Note 20.
(g)   Depreciation
      Depreciation measures the service potential of buildings, infrastructure assets, plant and
      equipment consumed during the year. Interest in trees, land and artworks are not depreciated
      as they are considered to have either unlimited useful lives or to be self-generating assets.
      Depreciation is recognised on a straight-line basis over the useful lives of the assets to the
      economic entity. Depreciation rates are reviewed each financial year. The depreciation
      periods for the major classes of assets shown below represent the maximum useful life. The
      2007–08 values have been re-stated for comparative purposes only and no change in
      accounting policy has been made.


                                                                   2008/09              2007/08
        Buildings                                                 50 Years             50 Years
        Roads & laneways - seal                                   20 Years             20 Years
        Roads & laneways - substructure                           90 Years             90 Years
        Heritage assets                                          100 Years            100 Years
        Promenades and wharves                                   100 Years            100 Years
        Footpaths                                                 50 Years             50 Years




                                                   118
Notes to the Financial Statements                    City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


        Kerb & channel                                               50 Years             50 Years
        Bridges                                                      94 Years             94 Years
        Drains                                                      185 Years            185 Years
        Plant & equipment                                            20 Years             20 Years
        Furniture & fittings                                         10 Years             10 Years
        Irrigation systems                                           20 Years             20 Years
        Parks & gardens infrastructure                               50 Years             50 Years
        Statues, sculptures & artworks                              100 Years            100 Years
        Other structures                                             50 Years             50 Years


      Assets are depreciated from the date of acquisition or, in respect of internally constructed assets,
      from the time an asset is completed and held ready for use.
(h)   Cash assets
      For the purposes of the statement of cash flows and the balance sheet, cash and cash
      equivalents includes short-term deposits, bank bills, negotiable certificates of deposits and
      fixed interest securities which are readily convertible to cash on hand and are subject to an
      insignificant risk of changes in value, net of bank overdrafts. Short-term deposits are stated at
      cost. Fixed interest securities are valued at net fair value. Interest is recognised when earned.
      Short-term deposits, bank bills, NCDs and fixed interest securities as at 30 June 2009, had a
      weighted average duration of approximately 209 days (2008: 99 days) and a weighted
      average interest rate of 4.05 per cent (2008: 6.45 per cent).
(i)   Receivables and payables
      Trade receivables are carried at nominal amounts due less any provision for doubtful debts. A
      provision for doubtful debts is recognised when collection of the full nominal amount is no longer
      probable. Receivables are generally settled within 30 days.
      Trade creditors and accruals are recognised for amounts to be paid in the future for goods and
      services received, whether or not billed to the economic entity. The amounts are unsecured and
      are usually paid within 30 days of recognition.
(j)   Provision for doubtful debts
      The collectability of debts is assessed at balance date and specific provision is made for any
      doubtful accounts.
      No provision is made for rate debtors because the debts are collectable against the property.
(k)   Property, plant, equipment and infrastructure
      (i)   Land under roads
            All land under roads acquired from 1 July 2008 have been recognised as an asset in
            accordance with AASB 1051 at deemed cost.
      (ii)       Capital and recurrent expenditure
                 As a general rule, material expenditure incurred in the purchase or development of assets
                 is capital expenditure. Expenditure necessarily incurred in either maintaining the
                 operational capacity of the non-current asset or ensuring that the original life estimate of




                                                      119
Notes to the Financial Statements                   City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


               the asset is achieved, is considered maintenance expenditure and is treated as an
               expense as incurred. Items of a capital nature with a total value of less than $2,000 are
               treated as an expense.
      (iii)    Acquisition
               Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of
               the assets given as consideration plus costs incidental to their acquisition, including
               architectural and engineering fees and all other establishment costs.
               The council’s policy is to capitalise and depreciate individual capital expenditure over
               $2,000.
               Fair value means the amount for which an asset could be exchanged between a
               knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length
               transaction.
      (iv)     Construction work in progress
               The cost of property, plant, equipment & infrastructure constructed by Melbourne City
               Council includes the cost of materials and direct labour and an appropriate proportion of
               overheads.
      (v)      Leases
               Melbourne City Council does not currently use any finance lease arrangements. In
               respect of operating leases, where the lessor effectively retains substantially the entire
               risks and benefits incidental to ownership of the leased property, the payments are
               charged to expense over the lease term.
      (vi)     Asset revaluation
               All asset values not valued at cost were reviewed and where necessary valued as at 30
               June 2009. The net increase in the Asset Revaluation Reserve was $1.57 million for the
               council and a decrease $6.55 million for the economic entity in 2008–09 (refer to note 15).
               Revaluation increments are credited directly to the asset revaluation reserve, except that,
               to the extent that an increment reverses a revaluation decrement in respect of that class
               of asset previously recognised as an expense, the increment is recognised as revenue.
      (vii)    Heritage assets
               The maximum life for depreciation of heritage assets is 100 years.
               Revaluation decrements are recognised immediately as expenses, except that, to the
               extent that an increment balance exists in the asset revaluation reserve in respect of the
               same class of assets, they are debited directly to the asset revaluation reserve.
               Revaluation increments and decrements are offset against one another within a class of
               non-current assets, but not otherwise.
      (viii)   Valuation
               All land and buildings are valued at fair value, being market value assuming the highest
               and best use permitted by the relevant land use planning provisions or existing public use,
               whichever is the greater. Freehold land reserved for public open space is valued at a
               discount, being 20 per cent of market value, based on legal precedents.




                                                     120
Notes to the Financial Statements                   City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


             All improvements on Crown land are valued on the basis of fair value, being either market
             value or written down replacement cost for special purpose buildings.
             Infrastructure assets are valued at fair value, being replacement cost less accumulated
             depreciation.
      (ix)   Impairment
             At each reporting date, the council reviews the carrying value of its assets to determine
             whether there is any indication that these assets have been impaired. If such an indication
             exists, the recoverable amount of the asset, being the higher of the asset’s fair value less
             costs to sell and value in use, is compared to the assets carrying value. Any excess of the
             assets carrying value over its recoverable amount is expensed to the income statement.
(l)   Non-cash donations
      Non-cash donations in excess of $2,000 value are recognised as revenue and as non-current
      assets at their fair value at date of receipt. Non-cash donations of less than $2,000 are not
      recognised where these are immaterial in total.
(m)    Rounding
      Unless otherwise stated, amounts in the financial report are rounded to the nearest thousand
      dollars.

(n)   Website costs
      Costs in relation to websites controlled by the Melbourne City Council are charged as expenses
      in the period in which they are incurred unless they relate to the acquisition of an asset, in which
      case they are capitalised and amortised over their period of expected benefit.


(o)   Allocation between current and non-current
      With the exception of employee entitlements, the determination of whether an asset or liability
      is current or non-current, consideration is given to the time when each asset or liability is
      expected to be realised or paid. The asset or liability is classified as current if it is expected to
      be turned over within the next 12 months, being the council’s operational cycle.
      For employee entitlements, long service leave entitlements for employees with over 10 years
      service and all annual leave entitlements is classified as current. Long service leave
      entitlements for employees with less than 10 years service is classified as non- current.
(p)   Investment property
      Investment property is held to generate long-term rental yields. All tenant leases are entered into
      at an arm’s length basis.
      Investment property is carried at fair value, being market value assuming the highest and best
      use permitted by the relevant land use planning provisions or existing public use whichever is the
      greater. Valuation of investment properties at 30 June 2009 were determined by David Slicer
      Senior Valuer, Valuations Branch. Any changes to fair value are recorded in the income
      statement. Investment properties are not depreciated.
(q)   Adoption of new and revised accounting standards
      Council adopted the following standard as listed below which impacted upon the group’s financial
      statements.




                                                    121
Notes to the Financial Statements                                       City of Melbourne                 2008–09 Annual Report
For the year ended 30 June 2009


                AASB 1051 ‘Land under Roads’ (applicable from 1 July 2008). The council has elected not to
                 retrospectively apply the land under road standard and has only recognised land under roads
                 acquired after 1 July 2008. The land under roads have been valued at deemed cost.

                                                                                                                            App. date of   App. date for
AASB amendment              Standards Affected       Outline of amendment                                                   Std            Council
AASB 2008 - 11              AASB 3 Business           Amends an earlier version of AASB 3 issued in July 2004.              1-Jul-09       1-Jul-09
                            Combinations             However, before the mandatory application of this Standard the
                                                     Australian Accounting Standards Board will consider the suitability
                                                     of this Standard for combinations in the not for profit sector. This
                                                     may result in further amendments to this Standard or an additional
                                                     scope exclusion. Consequently, it is not possible to assess the
                                                     likely impact of this Standard on Council.




AASB 2007 - 06              AASB 101 Presentation of Amends an earlier version of AASB 101 issued in July 2006. This 1-Jan-09              1-Jan-09
                            Financial Statements     Standard introduces the concept of a "complete set of financial
                                                     statements" and amends the title of some statements in the accounts.
                                                     The other change of some relevance to Council relates to reporting
                                                     owner changes in equity and comprehensive income. No
                                                     significant impacts are expected to arise from this Standard.




AASB 2007 - 08              AASB 123 Borrowing       Amends an earlier version of AASB 123 issued in July 2004. This 1-Jan-09              1-Jan-09
                            Costs                    Standard requires borrowing costs directly attributable to the
                                                     acquisition, construction or production of a qualifying asset to be
                                                     capitalised. Previously, entities had the option of expensing such
                                                     costs. Subject to the existence of borrowings for the purpose of
                                                     funding capital expenditure, this standard will require related
                                                     borrowing costs to be capitalised rather than expensed. It is not
                                                     expected that this will have a material impact on the reported
                                                     financial performance or position of Council.




AASB 2008 - 5               AASB 127 Consolidated    Amends an earlier version of AASB 127 issued in July 2004. This 1-Jul-09              1-Jul-09
                            and Separate Financial   standard makes various relatively minor changes. This Standard is
                            Statements               not expected to have any impact on Council.



AASB 2008-1, AASB 2008-2,   Various                  These standards make revisions, which are generally minor, to a        1-Jan-09       1-Jan-09
AASB 2008-3, AASB 2008-5,                            range of other accounting standards. It is not expected that these
AASB 2008-6AASB 2008-7,                              Standards will have any significant impact on Council.




(r)      Critical accounting judgements and key sources of estimation uncertainty
         In application of the Group’s accounting policies, the council is required to make judgements,
         estimates ad assumptions about carrying values of certain assets and liabilities that are not
         readily apparent from other sources. The estimates and associated assumptions are based on




                                                                         122
Notes to the Financial Statements               City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


      historical experience and other factors that are considered to be relevant. Actual results may
      differ from these estimates. The estimates and underlying assumptions are reviewed on an
      ongoing basis. Revisions to accounting estimates are recognised in the period of the revision and
      future periods if the revision affects both current and future periods.


(s)   Functional currency
      The presentation currency of the City of Melbourne is the Australian dollar. The functional
      currency of each subsidiary throughout the Group and the consolidated financial statements is
      also the Australian dollar.




                                                 123
Notes to the Financial Statements            City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 2. Operating result attributable to functions/activities (consolidated)

Revenues, expenses have been attributed to the following functions.

Functions/Activities                                                               Net Surplus
                                                     REVENUES         EXPENSES       for the
                                                                                      year

                                                      $'000             $'000        $'000


A Connected and Accessible City            2007/08    75,637           (96,936)     (21,299)
                                           2008/09    88,454          (105,891)     (17,437)

Innovative and Vital Business City         2007/08    2,440            (6,119)       (3,679)
                                           2008/09    2,080            (6,219)       (4,139)

Inclusive and Engaging City                2007/08    25,172           (83,326)     (58,154)
                                           2008/09    32,957           (94,451)     (61,494)

Environmentally Responsible City           2007/08     873             (19,881)     (19,008)
                                           2008/09     709             (20,713)     (20,004)

Well-managed and Leading Corporation       2007/08    40,458           (62,270)     (21,812)
                                           2008/09    12,641           (60,202)     (47,561)

Financially Responsible Corporation        2007/08   231,825           (13,866)     217,959
                                           2008/09   208,422           (32,794)     175,628

Subsidiaries                               2007/08   113,372           (108,518)     4,854
                                           2008/09   109,915          (105,700)      4,215


TOTAL                                      2007/08   489,777           (390,916)     98,861
                                           2008/09   455,178          (425,970)      29,208




                                              124
Notes to the Financial Statements                     City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


(b)    A brief description of the goal of each function is as follows:
A connected and accessible city
To ensure the city has accessible infrastructure and is connected to its immediate surrounds, the nation
and the world.
Innovative and vital business city
To ensure business development, job growth and gateway infrastructure is strengthened by intelligence,
creativity and a progressive outlook.
Inclusive and engaging city
To ensure a creative city with a strong cultural spirit, an inviting, inclusive and stimulating place for all
who live, work and visit it.
Environmentally responsible city
To ensure sustainable decision-making and environmental leadership increases and improves its natural
assets.
Well-managed and leading corporation
To ensure a well-managed and leading corporation recognised for its high-calibre staff, processes,
products and interactions with stakeholders, the delivery of effective and accountable governance and
business processes.
Financially responsible corporation
To ensure long-term sustainability through strategic planning and well-managed finances and assets.
Subsidiaries includes the following entities:
CityWide Service Solutions Pty Ltd
To meet the contract service needs of local government, other governments, and private and public
sector corporations by providing a comprehensive range of quality, physical services at competitive
rates.
Queen Victoria Market Pty Ltd
To ensure the market maintains and enhances an industry reputation as Australia’s foremost traditional
market, whilst meeting world’s best practice standards.
Melbourne Wholesale Fish Market Pty Ltd
To ensure that the market is operated as a fully commercial business serving the needs of the fishing
industry.
Sustainable Melbourne Fund Trust
The Sustainable Melbourne Fund (SMF) is a self-sustaining fund set up by Melbourne City Council which
invests funds in projects with environmental benefits to the city. The projects may extend beyond the
boundaries of the City of Melbourne to the broader state of Victoria, reflecting the position of Melbourne
as the capital city of Victoria.


These entities support the City of Melbourne in providing services to the community.




                                                      125
Notes to the Financial Statements                  City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 3. Revenues from ordinary activities

(a) Rates
                                                                Consolidated                      Council
                                                             2009          2008           2009              2008
                                                             $'000         $'000          $'000             $'000
General Rates
   Residential                                              50,359        44,517         50,359            44,517
   Commercial and Retail                                   116,558       109,827        116,558           109,827
Cultural & Recreational Land Rates                            341           312            341               312
Supplementary Rates                                          3,554         2,317          3,554             2,317
Objections/Exemptions                                        (271)         (168)          (271)             (168)
                                                           170,541       156,804        170,541           156,804


Melbourne City Council uses ‘net annual value’ as the basis of valuation of all properties within the
municipal district. The net annual value of a property approximates the annual net rental for a
commercial property and 5 per cent of the capital improved value for a residential property.
The date of the general valuation of land for rating purposes within the municipal district was 1
January 2008 and the valuation first applied to the rating period commencing 1 July 2008. The
general valuation on 1 January 2008 will be applied to the rating period commencing 1 July 2009. The
next general valuation is expected to be 1 January 2010 and the valuation first applied to the rating
period commencing 1 July 2010.
(b) Parking fees
                                                              Consolidated                     Council
                                                           2009          2008          2009              2008
                                                           $'000         $'000         $'000             $'000
 On street parking                                        24,602        23,888        24,588         23,873
 Off street parking                                        7,266         7,280         4,221          4,133
 Sporting/entertainment venues                             2,159         2,000         2,159          2,000
 Tow away fees                                             1,519         1,307         1,519          1,307
                                                          35,546        34,475        32,486         31,312



(c) Finance income
                                                                Consolidated                      Council
                                                             2009          2008           2009              2008
                                                             $'000         $'000          $'000             $'000
 Interest received from Investments                         7,906          8,570         7,240              7,723
 Interest Due from Overdue Rates                             583            656           583                656
 Interest received from loan to CityWide                      -              -             8                  15
 Other                                                       306            430          1,264               118
                                                            8,795          9,656         9,095              8,512




                                                    126
Notes to the Financial Statements             City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


(d) Grants and other contributions were received in respect of the following:

                                                        Consolidated                    Council
                                                     2009          2008         2009              2008
                                                     $'000         $'000        $'000             $'000
 S tate Grants
 Roads Corporation                                    103           98           103                98
 Appropriation - Vic Grants Comm                     2,026        1,204         2,026             1,204
 Tobacco Act Reform Grants                             34           34            34                34
 School Crossing Supervisor                            47           55            47                55
 Pre School Services                                  151          102           151               102
 Support Services for Families                        156          140           156               140
 M aternal & Child Health                             304          232           304               232
 Immunisation                                          62           93            62                93
 Home & Community Serv Grant                         1,672        1,574         1,672             1,574
 Senior Citizens Week                                  4            5             4                 5
 Arts Grant                                           185            -           185                 -
 Flexible Respite Options Program                      32           31            32                31
 Drugs Program Grant                                   31           30            31                30
 Disability Services Grant                             98           95            98                95
 Butt Littering Trust                                  1            18            1                 18
 Parking Levy Operating Grant                        1,640        1,548         1,640             1,548
 Other                                               1,563        2,384         1,370             2,384
                                                     8,109        7,643         7,916             7,643




                                               127
Notes to the Financial Statements                             City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


(d) Grants and other contributions were received in respect of the following: (continued)
                                                                         Consolidated                Council
                                                                      2009          2008     2009              2008
                                                                      $'000         $'000    $'000             $'000
Federal Grants
Federal Grant - Aged & Disability                                     168           145       168              145
Special Needs Subsidy Scheme                                          19             28        19              28
Federal Grant - Immunisation Register                                 21             19        21              19
Federal Grant- Other                                                  211           425       211              425
                                                                      419           617       419              617
Capital Grants
Capital Grants                                                        6,360         2,711     6,360            2,711
Parking Levy Capital Grant                                            3,360         3,452     3,360            3,452
Public Open Space Contributions                                       1,911          787      1,911             787
                                                                     11,631         6,950    11,631            6,950
Total Other
Other Contributions                                                    667           692       667           577
Child Care Benefit                                                    1,090          669      1,090          669
Sponsorships                                                           771          1,449      771          1,449
                                                                      2,528         2,810     2,528         2,695
Total Grants & Other Contributions                                   22,687        18,020    22,494        17,905


(e) Conditions over contributions
                                                                      2009          2008     2009              2008
                                                                      $'000         $'000    $'000             $'000
(i) Grants recognised as revenues during the financial year
and which were obtained on the condition that they be
expended in a specific manner that had not occurred at
balance date were:
Grants for capital works                                              570           629       570               629
Grants for other purposes                                             419           730       419               730
                                                                      989          1,358      989              1,358
Deduct
(ii) Grants which were recognised as revenues in a prior
years and which were expended during the current year
in the manner specified by the grantor were:
Grants for capital works                                              629          3,726      629              3,726
Grants for other purposes                                             730          1,567      730              1,567
                                                                     1,358         5,293     1,358             5,293

Net increase/(decrease) in restricted assets resulting
from grant revenues for the financial year                           ( 370)       ( 3 935)   ( 370)        ( 3 935)




                                                              128
Notes to the Financial Statements                      City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


Note 4. Expenses from ordinary activities
                                                                 Consolidated                   Council
                                                             2009           2008       2009               2008
                                                             $'000          $'000      $'000              $'000

      (a) Employee benefit expense
          Wages and Salaries                              114,786         107,707      70,207             67,072
          Annual Leave and Long Service Leave              14,012          11,202       9,686              7,340
          Fringe Benefits                                  1,392           1,258         533                510
          WorkCover                                        1,566           1,682         498                749
          Superannuation                                   9,801           8,631        6,194              5,438
                                                          141,557         130,480      87,118             81,109

      (b) Contract Payments, Materials and S ervices
          Contract Payments                                  88,398        89,768      92,297             85,098
          Other M aterials and Services                      82,349        80,811      38,768             37,104
          Auditors' Remuneration
           Audit Services - VAGO                            330             310         103              93
           Audit Services - Other External                  14               21          14              21
           Audit Services - Internal                        350             342         301             248
                                                          171,442         171,252     131,483         122,564

      (c) Depreciation and amortisation
           Buildings                                          4,200         4,098       4,003              3,904
           Buildings - Leasehold Improvements                  363           345         133                134
           Heritage Assets                                     775           595         775                595
           Wharves and Promenades                             1,552         1,667       1,552              1,667
           Plant and equipment                               12,848        11,085       4,468              4,220
           Statues, Sculptures, and Artwork                    513           509         513                509
           Roads & Laneways                                   5,289         8,727       5,289              4,694
           Roads & Laneways - Seal                            4,038           -         3,521              4,033
           Footpaths                                         11,031        10,511      11,031             10,511
           Kerb & Channel                                     3,461         3,185       3,461              3,185
           Bridges                                            1,184         1,207       1,184              1,207
           Drains                                              676           928         676                928
           Irrigation Systems                                  928           772         928                772
           Parks and Gardens infrastructure                   3,997         3,814       3,997              3,814
           Other Structures                                    221           187         221                187
           Furniture and fittings                              589           559         482                490
          Amortisation of intangibles                         1,651         1,651       1,651              1,651
                                                             53,316        49,840      43,885             42,501

      (d) Finance Costs
          Insurance                                           2,677         3,062       1,378              1,651
          Bad and Doubtful debts                              (184)          538         (21)               342
          Provision for Doubtful PINS                         8,354         7,453       8,354              7,453
          Other Financial Costs                               1,474         3,512       1,548              2,451
                                                             12,321        14,565      11,259             11,897

      (e) Other Expenses
          Grants and Contributions                           15,712        15,022      15,712             15,034
          Fire Brigade levy                                  3,435         3,231       3,435               3,231
          Taxes and Levies                                    647           733         135                 269
                                                             19,794        18,985      19,282             18,534




                                                       129
Notes to the Financial Statements                                               City of Melbourne                2008–09 Annual Report
For the year ended 30 June 2009


Note 5. Trade and other receivables
                                                                                 Consolidated                                          Council
                                                                                     2009                    2008                          2009                    2008
                                                                                     $'000                   $'000                         $'000                   $'000
    Current (i)
    Rates                                                                               1,705                1,139                            1,705                 1,139
    Parking Infringement Debtors                                                       25,297               23,789                           25,297                23,789
    Provision for Debts - Parking Infringement                                        (13,336)             (12,350)                         (13,336)              (12,350)
    Other Debtors *                                                                    20,732               71,147                            6,851                52,074
    Provision for Doubtful Debts - Other Debtors                                        (660)                (836)                            (441)                 (454)
    GST Receivable                                                                      3,627                4,207                            3,735                 4,031
    Loan to CityWide Solutions Pty Ltd                                                     -                    -                               47                   47
                                                                                      37 366                87 097                           23 858                68 277

    *A receivable of $46.5 million has been recognised at 30 June 2008 representing the value of assets that were received on 1 July
    2008 due to the transfer of Kensington and North Melbourne precinct to Council.



                                                                                             Consolidated                                                 Council
                                                                                         2009           2008                                    2009                 2008
                                                                                         $'000          $'000                                   $'000                $'000
    Ageing of past due but not impaired(ii)
    60-90 days                                                                            308                   764                              301                      85
    90-120 days                                                                           294                   724                              290                     297
    120+ days                                                                             268                   554                              257                     322
    Total                                                                                 870                 2 042                              848                     704

    (ii) This disclosure relates only to Other Debtors. Rates and Parking Infringement Debtors are not financial instruments and are therefore not included.




                                                                                                 Consolidated                                                  Council
                                                                                          2009                  2008                               2009                   2008
                                                                                          $'000                 $'000                              $'000                  $'000
    Provision for doubful debts
    Provision for Doubtful Debts - Other Debtors                                            842                   836                               441                    454
    Total                                                                                   842                   836                               441                    454

    Movement in allowance for doubful debts
    Balance at the beginning of the year                                                    836                  280                                454                    93
    New provisions recognised                                                               163                  636                                163                   374
    Impairment losses recognised                                                             -                     -                                 -                      -
    Amounts written off as uncollectible                                                   (157)                 (80)                              (176)                  (13)
    Amounts recovered during the year                                                        -                     -                                 -                      -
    Impairment losses reversed                                                               -                     -                                 -                      -
    Balance at the end of the year                                                          842                  836                                441                   454




                                                                                 130
Notes to the Financial Statements                   City of Melbourne              2008–09 Annual Report
For the year ended 30 June 2009


Note 6. Inventories
                                                             Consolidated                             Council
                                                       2009             2008                 2009               2008
                                                       $'000            $'000                $'000              $'000

Stores and Raw M aterials                              387              502                    -                   -
Provision for Obsolete Stock                            (5)              (5)                   -                   -
                                                       382              497                    -                   -



Note 7. Other financial assets – non current
                                                 Consolidated                            Council
                                                    2009             2008                 2009             2008
                                                    $'000            $'000                $'000            $'000

 Interests in Other Entities:
 CityWide Service Solutions Pty Ltd (i)                0                0                 18,406          18,406
 Regent M anagement Company Pty Ltd (ii)            2,776            2,776                 2,776           2,776
 M APS Group Ltd                                     250              250                   250             250
 Queen Victoria M arket Pty Ltd (iv)                   0                0                   200             200
 M elbourne Wholesale Fish M arket Pty Ltd (v)         0                0                  5,000           5,000
 Baycorp Advantage Limited (vi)                       16               16                    16              16
 Investment in Sustainable M elbourne Fund             0                0                  6,170           5,000
 Loan to CityWide Solutions Pty Ltd                    0                0                     0             111
                                                    3,042            3,042                32,818          31,759



                                                 Consolidated                            Council
 Available for sale financial asset:                2009             2008                 2009             2008
                                                    $'000            $'000                $'000            $'000
 Current
 BT Institutional Enhanced Fixed Interest Fund      14,275           14379                14,275           14379
                                                    14,275           14379                14,275           14379

 Disclosed in the financial statemets as:
 Current other financial assets                    14,275            14,379               14,275          14,379
 Non-current other financial assets                 3,041             3,042               32,817          31,759
                                                   17,316            17,421               47,092          46,138



8.a   Other current Assets                            Consolidated                           Council
                                                         2009               2008              2009              2008
                                                         $'000              $'000             $'000             $'000

      Prepayments                                            806             578                95                24
      Tax equivalents & Dividends                             20              3               4,538             4,487
                                                             826             581              4,633             4,512




                                                     131
Notes to the Financial Statements                      City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


8.b   Non-current Assets classified as held for sale
                                                        Consolidated                 Council
                                                             2009      2008           2009     2008
                                                             $'000     $'000          $'000    $'000

      Land and buildings held for sale                        0        2,770           0       2,770
                                                              0        2,770           0       2,770




                                                       132
Notes to the Financial Statements        City of Melbourne          2008–09 Annual Report
For the year ended 30 June 2009


Note 9. Property, plant, equipment and infrastructure
                                         Consolidated               Council
                                             2009        2008          2009       2008
                                             $’000       $’000         $’000      $’000
    Land - Freehold
    At Council's valuation (i)              131,379     118,439       131,379    118,439
    At Independent valuation                 7,750       16,535          -          -
    At cost                                  12,196      12,196          -          -
                                            151,325     147,170       131,379    118,439
    Land - Other Controlled
    At Council's valuation (i)             1,164,840    1,180,965    1,164,840   1,180,965

    Land - Under Roads
    At Council's valuation (i)               6,590          -          6,590         -

    Buildings on Freehold Land
    At Council's valuation (i)              65,783       70,320       65,783      70,320
    At cost                                  4,214        3,390          -           -
    Accumulated depreciation-cost            (965)        (846)          -           -
                                            69,032       72,864       65,783      70,320
    Buildings on Other Controlled Land
    At Council's valuation (i)              31,450       31,826       31,450      31,826

    Buildings - Leasehold Improvements
    At cost                                   4,369       4,200        2,269      2,269
    Accumulated depreciation                 (1,746)     (1,409)       (300)      (167)
                                             2,624       2,790         1,969      2,102
    Heritage Buildings
    At Council's valuation (i)              81,136       74,786       81,136      74,786

    Promenades and Wharves
    At Council's valuation (ii)             75,356       85,184       75,356      85,184
                                            75,356       85,184       75,356      85,184
    Plant and Equipment
    At cost                                 106,783       97,465       35,124      30,020
    Accumulated depreciation                (51,461)     (42,447)     (15,775)    (11,785)
                                            55,322       55,017       19,349      18,235
    Furniture and Fittings
    At cost                                   5,506       5,097        4,598       4,466
    Accumulated depreciation                 (2,019)     (1,472)      (1,536)     (1,054)
                                             3,487       3,625        3,062        3,412
    Statues, Sculptures and Artworks
    At cost                                 49,561       49,492       49,561      49,492
    Accumulated depreciation                (3,230)      (2,717)      (3,230)     (2,717)
                                            46,331       46,775       46,331      46,775
    Roads & Laneways
    At Council's valuation (ii)             408,412     394,624       408,412    394,624

    Roads & Laneways - Seal
    At Council's valuation (ii)             24,716       23,700       24,716      23,700

    Footpaths
    At Council's valuation (ii)             108,905     102,034       108,905    102,034

    Kerb & Channel
    At Council's valuation (ii)             106,110      93,999       106,110     93,999




                                          133
Notes to the Financial Statements                 City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 9. Property, plant, equipment and infrastructure (continued)

Bridges
At Council's valuation (ii)                                  81,296      80,622       81,296         80,622

Drains
At Council's valuation (ii)                                  69,977      66,040       69,977         66,040

Irrigation
At Council's valuation (iii)                                 16,919      11,120        16,919        11,120
At cost                                                         -         4,113                       4,113
Accumulated depreciation-valuation                                       (3,456)                     (3,456)
Accumulated depreciation-cost                                   -         (589)                       (589)
                                                             16,919      11,188       16,919         11,188
Parks and Gardens Infrastructure
At Council's valuation (iv)                                  55,791      51,466       55,791         51,466
Trees
At Council's valuation (v)                                  33,184
                                                         Consolidated    31,690       33,184
                                                                                    Council          31,690
                                                             2009        2008          2009           2008
Other Structures
                                                             $’000       $’000         $’000         $’000
At Council's valuation
At cost                                                      3,660       3,494         3,660         3,494
Accumulated depreciation-cost                                (915)       (693)         (915)         (693)
                                                             2,746       2,800         2,746         2,800
Works in Progress
At cost                                                      63,708      45,144       63,642         45,031

Total Property, Plant, Equipment and
Infrastructure                                             2,659,254    2,604,309    2,598,941   2,535,238




The basis of valuation are included under note 1(k) in the financial report and have been conducted as
follows:
    (i) Valuations of council land and buildings were determined by David Slicer, Senior Valuer, Property
    Services Branch, City of Melbourne.
    (ii) Valuations of infrastructure assets (roads & laneways, footpaths, kerb & channel, bridges
    and drains) were determined by Gordon Duncan, Principal Engineer - Infrastructure,
    Engineering Services Group and Bandara Rajapakse, Senior Infrastructure Engineer,
    Engineering Services Branch, City of Melbourne.
    (iii) Valuation of irrigation assets was determined by Eugene Stackpole, Asset Management
    Officer, Parks Services Branch, City of Melbourne.
    (iv) Valuation of parks and gardens infrastructure were determined by Eugene Stackpole,
    Asset Management Officer, Parks Services Branch and David Slicer, Senior Valuer, Property
    Services Branch, City of Melbourne.




                                                   134
Notes to the Financial Statements               City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


    (v) Valuations of trees were determined by Ian Shears, Senior Tree Planner, Parks Services
    Branch, City of Melbourne.
    All the above valuations were completed as at 30 June 2009 for the council. Valuations for 30
    June 2009 are at fair value. Unless otherwise stated the carrying value of each class of asset
    measured at fair value at balance date materially reflects their fair value at that date. Land
    valuations for CityWide and the Melbourne Wholesale Fishmarket Market were completed
    during March 2007 and on the 18 June 2009 respectively.




                                                 135
Notes to the Financial Statements                            City of Melbourne            2008–09 Annual Report
For the year ended 30 June 2009


Note 9. Property, plant, equipment and infrastructure (continued)
(a) Consolidated
30 June 2008                           Carrying                                                                 Carrying
Asset Classes                         amount at     Revaluations       Additions   Disposals   Depreciation    amount at
                                     30 June 2007                                                             30 June 2008
                                        $’000          $’000            $’000        $’000         $’000          $’000
Land - Freehold                         106,464        31,256           10,350       (900)            -          147,170
Land - Other Controlled                 993,490       181,016           6,459           -             -         1,180,965
Buildings on Freehold Land              85,830         (9,164)           834        (1,872)        (2,763)        72,865
Buildings on Other Controlled Land      25,021          4,097           4,170        (127)         (1,335)        31,826
Buildings - Leasehold Improvements       3,010            -              160            -           (346)         2,824
Heritage Assets                         58,065         13,360           3,956           -           (595)         74,786
Promenades and Wharves                     -           11,012           75,842          -          (1,669)        85,185
Plant and Equipment                     48,943            -             18,964      (1,655)       (11,089)        55,163
Furniture and Fittings                   3,920            -               84           (3)          (559)         3,442
Statues, Sculptures and Artworks        41,599            -             5,684           -           (510)         46,773
Roads & Laneways - Substructure         359,408        39,359            551            -          (4,695)       394,623
Roads & Laneways - Seal                 23,229        (29,100)          33,607          -          (4,033)        23,703
Footpaths                               95,811          (198)           16,934          -         (10,512)       102,035
Kerb & Channel                          89,297          3,354           4,533           -          (3,184)        94,000
Bridges                                 33,458          2,664           45,707          -          (1,206)        80,623
Drains                                  65,207         (9,012)          10,775          -           (929)         66,041
Irrigation                              11,129            -              831            -           (773)         11,187
Parks and Gardens Infrastructure        51,937         (1,037)          4,379           -          (3,813)        51,466
Trees                                   30,093         (2,421)          4,019           -             -           31,691
Other Structures                         2,889            -               99            -           (188)         2,800
Works in Progress*                      33,112            -             13,109      (1,080)           -           45,141
                                      2,161,912       235,186          261,047      (5,637)      (48,199)      2,604,309




(a) Consolidated
30 June 2009                          Carrying                                                                 Carrying
Asset Classes                         amount at     Revaluations       Additions   Disposals   Depreciation    amount at
                                     30 June 2008                                                             30 June 2009
                                         $’000         $’000            $’000        $’000         $’000          $’000
Land - Freehold                         147,170       (18,167)          22,985        (663)           -          151,325
Land - Other Controlled                1,180,965       (6,630)          12,055      (21,550)          -         1,164,840
Buildings on Freehold Land               72,865        (4,920)          3,838         (131)        (2,620)        69,032
Buildings on Other Controlled Land       31,826           19            1,773         (586)        (1,582)        31,450
Buildings - Leasehold Improvements       2,824             -             168            (8)         (360)         2,624
Heritage Assets                          74,786         3,592           3,534            -          (776)         81,136
Promenades and Wharves                   85,185        (8,275)             -             -         (1,554)        75,356
Plant and Equipment                      55,163            -            16,942       (3,936)      (12,841)        55,328
Furniture and Fittings                   3,442             -             626             -          (587)         3,481
Statues, Sculptures and Artworks         46,773            -              69             -          (511)         46,331
Roads & Laneways - Substructure         394,623        13,324           5,784          (30)        (5,289)       408,412
Roads & Laneways - Seal                  23,703        (5,529)          10,591          (8)        (4,041)        24,716
Land Under Roads                            -              -            6,590            -            -           6,590
Footpaths                               102,035         3,877           14,025           -        (11,032)       108,905
Kerb & Channel                           94,000        11,162           4,410            -         (3,462)       106,110
Bridges                                  80,623          729            1,129            -         (1,184)        81,297
Drains                                   66,041          105            4,508            -          (678)         69,976
Irrigation                               11,187         2,724           3,938            -          (930)         16,919
Parks and Gardens Infrastructure         51,466         1,239           8,631        (1,549)       (3,996)        55,791
Trees                                    31,691          198            1,295            -            -           33,184
Other Structures                         2,800             -             168             -          (222)         2,746
Works in Progress                        45,141            -            18,601         (37)           -           63,705
                                      2,604,309       (6,552)          141,660     (28,498)      (51,665)      2,659,254




                                                                 136
Notes to the Financial Statements                                City of Melbourne                 2008–09 Annual Report
For the year ended 30 June 2009


Note 9. Property, plant, equipment and infrastructure (continued)
    (b) Council
    30 June 2008                           Carrying                                                                  Carrying
    Asset Classes                         amount at     Revaluations       Additions   Disposals    Depreciation    amount at
                                         30 June 2007                                                              30 June 2008
                                            $’000          $’000            $’000        $’000          $’000          $’000
    Land - Freehold                         81,068         27,921           10,350       (900)             -          118,439
    Land - Other Controlled                 993,490       181,016           6,459           -              -         1,180,965
    Buildings on Freehold Land              83,321         (9,164)           604        (1,870)         (2,570)        70,321
    Buildings on Other Controlled Land      25,021          4,097           4,170        (127)          (1,335)        31,826
    Buildings - Leasehold Improvements       2,236            -                             -            (134)         2,102
    Heritage Assets                         58,065         13,360           3,956           -            (595)         74,786
    Promenades and Wharves                     -           11,012           75,842          -           (1,669)        85,185
    Plant and Equipment                     20,885            -             2,472        (897)          (4,222)        18,238
    Furniture and Fittings                   3,900            -                             -            (491)         3,409
    Statues, Sculptures and Artworks        41,599            -             5,684           -            (510)         46,773
    Roads & Laneways - Substructure         359,408        39,359            551            -           (4,695)       394,623
    Roads & Laneways - Seal                 23,229        (29,100)          33,607          -           (4,033)        23,703
    Footpaths                               95,811          (198)           16,934          -          (10,512)       102,035
    Kerb & Channel                          89,297          3,354           4,533           -           (3,184)        94,000
    Bridges                                 33,458          2,664           45,707          -           (1,206)        80,623
    Drains                                  65,207         (9,012)          10,775          -            (929)         66,041
    Irrigation                              11,129            -              831            -            (773)         11,187
    Parks and Gardens Infrastructure        51,937         (1,037)          4,379           -           (3,813)        51,466
    Trees                                   30,093         (2,421)          4,019           -              -           31,691
    Other Structures                         2,889            -               99            -            (188)         2,800
    Works in Progress*                      31,919            -             13,109          -              -           45,025
                                          2,103,962       231,851          244,081      (3,794)       (40,859)      2,535,238



    (b) Council
    30 June 2009                           Carrying                                                                  Carrying
    Asset Classes                         amount at     Revaluations       Additions   Disposals    Depreciation    amount at
                                         30 June 2008                                                              30 June 2009
                                             $’000         $’000            $’000        $’000          $’000          $’000
    Land - Freehold                         118,439       (10,045)          22,985          -              -          131,379
    Land - Other Controlled                1,180,965       (6,630)          12,055      (21,550)           -         1,164,840
    Buildings on Freehold Land               70,321        (4,920)          2,805                       (2,423)        65,783
    Buildings on Other Controlled Land       31,826           19            1,773        (586)          (1,582)        31,450
    Buildings - Leasehold Improvements       2,102             -               -            -            (131)         1,971
    Heritage Assets                          74,786         3,592           3,534           -            (776)         81,136
    Promenades and Wharves                   85,185        (8,275)             -            -           (1,553)        75,357
    Plant and Equipment                      18,238            -            6,350        (773)          (4,460)        19,355
    Furniture and Fittings                   3,409             -             128            -            (481)         3,056
    Statues, Sculptures and Artworks         46,773            -              69            -            (511)         46,331
    Roads & Laneways - Substructure         394,623        13,324           5,784         (30)          (5,291)       408,410
    Roads & Laneways - Seal                  23,703        (5,529)          10,074         (8)          (3,521)        24,719
    Land Under Roads                            -              -            6,590           -              -           6,590
    Footpaths                               102,035         3,877           14,025          -          (11,030)       108,907
    Kerb & Channel                           94,000        11,162           4,410           -           (3,461)       106,111
    Bridges                                  80,623          729            1,129           -           (1,185)        81,296
    Drains                                   66,041          105            4,508           -            (678)         69,976
    Irrigation                               11,187         2,724           3,938           -            (931)         16,918
    Parks and Gardens Infrastructure         51,466         1,239           8,631       (1,549)         (3,998)        55,789
    Trees                                    31,691          198            1,295           -              -           33,184
    Other Structures                         2,800             -             168            -            (222)         2,746
    Works in Progress*                       45,025            -            18,611          -              -           63,636
                                          2,535,238        1,570           128,862     (24,496)       (42,234)      2,598,941



* Works in progress figure is a net amount consisting of $75.1 million additional works in progress and
$56.5 million of assets capitalised during the financial year 2008–09.




                                                                     137
Notes to the Financial Statements                                                                               City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Note 10. Intangible assets
(a) Consolidated
   (a) Consolidated             Carrying                                                      Carrying                                                    Carrying
   Asset Classes                amount at      Additions    Disposals    Amortisation/       amount at      Additions    Disposals     Amortisation/     amount at
                               30 June 2007                               Impairment        30 June 2008                                Impairment      30 June 2009
                                  $’000          $’000        $’000         $’000              $’000          $’000        $’000          $’000            $’000
   Goodwill
   Net Book value                 9,230            -              -                             9,230          621             -             -             9,851

   Licence Agreement                 -             -              -            -                  -             -              -             -                -

   Computer Software
   Cost                           10,957         1,715            -             -              12,672         1,554            -               -           14,226
   Accumulated amortisation       (7,277)                         -          (1,651)           (8,928)                         -           (1,651)        (10,579)
   Net Book value                  3,680         1,715            -         (1,651)             3,744         1,554            -          (1,651)          3,647
                                  12,911         1,715            -         (1,651)            12,975         2,175            -          (1,651)         13,499


(b) Council
  (b) Council                  Carrying                                                      Carrying                                                    Carrying
  Asset Classes                amount at      Additions    Disposals    Amortisation        amount at      Additions    Disposals     Amortisation      amount at
                              30 June 2007                                                 30 June 2008                                                30 June 2009
                                 $’000         $’000        $’000          $’000              $’000         $’000        $’000           $’000            $’000
  Licence Agreement                -             -            -              -                  -             -            -               -                -

  Computer Software
  Cost                          10,957          1,715         -               -               12,672         1,554         -                 -            14,226
  Accumulated amortisation      (7,277)                       -            (1,651)            (8,928)                      -             (1,651)         (10,579)
  Net Book value                 3,680         1 715          0           (1 651)             3 744         1 554          0            (1 651)           3 647
                                 3,680         1 715          0           (1 651)             3 744         1 554          0            (1 651)           3 647




                                                                                     138
Notes to the Financial Statements                            City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 11. Investment property
                                                 Consolidated                           Council
                                                     2009           2008                   2009     2008
                                                    $’000           $’000        Note      $’000    $’000

    (a) Gains/(loss) on sale of investment
    properties
    Proceeds from sale                                 -            9,828                    -       9,828
    Carrying amount of assets sold                     -           (4,870)                   -      (4,870)
    Gain/(Loss) on sale                                -            4,958                    -       4,958

    (b) Amounts recognised in Income
    Statement for Investment Properties
    Property Rental                                  8,411          3,138                  8,411     7,271
    Operating Expenses for rental generating
    properties                                       2,233           462                   2,233     1,940
    Operating Expenses for non rental
    generating properties                            6,837          7,803                  6,837     7,803

    (c) Reconciliation of carrying amounts
    Land
    Carrying amount at beginning                    25,280         22,323                  25,280   22,323
    Net gain/(loss) from fair value adjustment         -            5,047                     -      5,047
    Additions                                        6,975             -                    6,975      -
    Disposals                                          -           (2,090)                          (2,090)
    Carrying amount at end of period                32,255         25,280                 32,255    25,280

    Buildings
    Carrying amount at beginning                    54,056         41,472                 54,056    41,472
    Net gain/(loss) from fair value adjustment         -           15,364                    -      15,364
    Additions                                        3,135            -                    3,135       -
    Disposals                                          -           (2,780)                   0      (2,780)
    Carrying amount at end of period                57,191         54,056                 57,191    54,056

    Total Investment Properties                     89,446         79,336                 89,446    79,336




                                                             139
Notes to the Financial Statements       City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


Note 12. Trade and other payables

                                             Consolidated                          Council
                                         2009           2008               2009                  2008
                                         $'000          $'000      Note    $'000                $'000

       Current
       Trade Creditors General          16,113         16,592              12,758            10,409
        Convention Centre Liability         -          10,880                 -              10,880
        Docklands Payable                1,500          1,502               1,500             1,502
        CAE - Payable                     590            580                 590               580
       Deposits and retention amounts    3,775          3,383               2,778             2,745
       Accruals                         29,478         35,684              24,946            27,101
       Income in Advance                 2,486          2,431               1,099              526
                                        53,941         71,051              43,671            53,744



Note 12a. Non-current. Trade and other payables

                                             Consolidated                           Council
                                         2009           2008                2009                  2008
                                         $'000          $'000       Note    $'000                $'000
       Non-Current
       Trade Creditors
        Docklands Payable                6,849          7,374               6,849             7,374
        CAE - Payable                       -            580                  -                580
                                         6,849          7,954               6,849             7,954




                                        140
Notes to the Financial Statements                        City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 13. Employee benefits

                                                         Consolidated                           Council
                                                     2009           2008                2009                  2008
                                                     $'000          $'000     Note      $'000                $'000
(a) Current
Long Service Leave                                   13,753        11,676     1(f)(i)   10,564             9,190
Annual Leave                                         11,727        11,033                7,551             7,012
Other                                                   -           660                    -                660
                                                     25,480        23,369               18,115            16,862
(b) Non-Current
Long Service Leave                                   5,208          4,336     1(f)(i)   3,656             2,929
Annual Leave
                                                     5,208          4,336     1(f)(i)   3,656             2,929
Total Employee Benefits                              30,688        27,705               21,771            19,791

(c) Reconciliation of movements
Annual Leave
Balance at the beginning of the financial year       11,033        11,462                7,012             7,551
Additional provisions                                 6,908         5,989                6,753             5,880
Amounts used                                         (6,211)       (6,423)              (6,211)           (6,423)
Increase in the discounted amount because of
time and the effect of any change in the discount
rate                                                   (3)            4                  (3)                4
Balance at the end of the financial year             11,727        11,033               7,551             7,012

Long Service Leave
Balance at the beginning of the financial year       16,012        16,321               12,119            12,950
Additional provisions                                 4,710         2,114                3,862             1,592
Amounts used                                         (1,023)       (2,449)              (1,023)           (2,449)
Increase(Decrease) in the discounted amount
because of time and the effect of any change in
the discount rate                                     (738)          26                  (738)              26
Balance at the end of the financial year             18,961        16,012               14,220            12,119

(d) Current Employee Benefits Disclosure
Employee Benefits entitlements
 - that fall due within 12 months after the end of
the period measured at nominal value                 12,543        10,739               8,367             7,749
 - that do not fall due within 12 months after the
end of the period measured at present value          12,937        12,630                9,748             9,113
                                                     25,480        23,369               18,115            16,862




                                                          141
Notes to the Financial Statements                       City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 14. Provisions

                                                 Consolidated                          Council
                                                    2009          2008                  2009            2008
                                                    $'000         $'000        Note     $'000          $'000
(a) Current
Insurance claims                                     167           255                   167         255
Other                                                455           500                   300         300
                                                     622           755                   467         555

(b) Reconciliation of movements
Insurance Claims
Balance at the beginning of the financial year       255           198                   255         198
Additional provisions                                 53           109                    53         109
Amounts used                                        (141)          (52)                 (141)        (52)
Balance at the end of the financial year             167           255                   167         255

Other
Balance at the beginning of the financial year       500           400                   300         200
Additional provisions                                              100                               100
Amounts used
Balance at the end of the financial year             500           500                   300         300



Note 15. Reserves

                                                 Consolidated                   Note   Council
                                                    2009           2008                 2009             2008
                                                    $'000          $'000                $'000           $'000
Composition

Asset Revaluation (i)                              1,076,828      1,083,382            1,068,406   1,066,837
Reserve for Public Open Space (ii)                   2,139          2,389                 2,139       2,389
Investments Revaluation Reserve (iii)                (725)          (621)                 (725)       (621)
                                                  1,078,242      1,085,149             1,069,820   1,068,604




                                                           142
Notes to the Financial Statements        City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Note 15. Reserves (continued)

Consolidated                        Carrying                  Carrying                    Carrying
                                    amount at    Increment    amount at    Increment      amount at
                                       2007     (decrement)     2008      (decrement)           2009
Property                              $’000         $’000       $’000         $’000            $’000
Land                                 519,112       208,363     727,475       (24,797)    702,678
Buildings                             27,158         8,288     35,446         (1,310)    34,136
                                                        -                                    -
Infrastructure                           -              -         -                          -
Roads & Laneways                     96,013         10,259     106,272       7,795       114,067
Footpaths                            53,177          (199)     52,978        3,877       56,855
Kerb & Channel                       69,419          3,355     72,774       11,162       83,936
Bridges                              15,467          2,664     18,131         729        18,860
Drains                               12,167        (9,012)      3,155         105          3,260
Promenades and Wharves                   -          11,010     11,010       (8,276)        2,734
Parks and Gardens Infrastructure     34,083        (1,031)     33,052        1,239       34,291
Trees                                12,705        (2,421)     10,284         198        10,482
Other structures                       206              -        206           -            206
P&G Irrigation                        2,095             -       2,095        2,724         4,819
Plant & Equipment                      547              -        547           -            547
Computer Equipment                     635              -        635           -            635
Furniture & Fittings                    9               -         9            -             9
Artworks                              5,404             -       5,404          -           5,404
Asset Revaln Res - CW Services           -           3,909      3,909                      3,909
                                    848,197       235,185     1,083,382     (6,554)     1,076,828



Council                             Carrying                  Carrying                   Carrying
                                    amount at    Increment    amount at    Increment     amount at
                                       2007     (decrement)     2008      (decrement)        2009
Property                              $’000         $’000       $’000         $’000         $’000
Land                                 505,903       208,937     714,840       (16,675)   698,165
Buildings                             27,158        8,288      35,446         (1,310)   34,136

Infrastructure                           -                        -
Roads & Laneways                     96,013       10,259       106,272       7,795       114,067
Footpaths                            53,177        (199)       52,978        3,877       56,855
Kerb & Channel                       69,419        3,355       72,774       11,162       83,936
Bridges                              15,467        2,664       18,131         729        18,860
Drains                               12,167       (9,012)       3,155         105         3,260
Promenades and Wharves                   -        11,010       11,010       (8,276)       2,734
Parks and Gardens Infrastructure     34,083       (1,031)      33,052        1,239       34,291
Trees                                12,705       (2,421)      10,284         198        10,482
Other structures                       206            -          206           -           206
P&G Irrigation                        2,095           -         2,095        2,724        4,819
Plant & Equipment                      547            -          547           -           547
Computer Equipment                     635            -          635           -           635
Furniture & Fittings                    9             -           9            -            9
Artworks                              5,404           -         5,404          -          5,404
                                    834,988      231,850      1,066,838     1,568       1,068,406




                                         143
Notes to the Financial Statements                         City of Melbourne               2008–09 Annual Report
For the year ended 30 June 2009


Note 15. Reserves (continued)

 (ii) Movements in Reserves - Reserve for Public   Consolidated                             Note   Council
 Open Space                                           2009               2008                       2009           2008
                                                      $'000              $'000                      $'000         $'000

 Balance at the beginning of the financial year       2,390              2,114                      2,390      2,114
 Transfer to accumulated reserves                     2,055               788                       2,055       788
 Amounts used                                        (2,306)             (512)                     (2,306)     (512)
 Balance at the end of the financial year             2,139              2,390                      2,139      2,390



 (iii) Movements in Reserves - Investments         Consolidated       Consolidated          Note   Council     Council
 Revaluation Reserve                                  2009               2008                       2009           2008
                                                      $'000              $'000                      $'000         $'000

 Balance at the beginning of the financial year        (621)                -                       (621)         -
 Transfer to accumulated reserves                      (104)              (621)                     (104)       (621)
 Amounts used                                            -                  -                         -           -
 Balance at the end of the financial year             (725)              (621)                      (725)       (621)



Note 16a. Gains/(loss) on sale of fixed and intangible assets

                                                                 Consolidated                            Council
                                                               2009          2008                    2009       2008
                                                               $'000        $'000                    $'000     $'000
  Land & Buildings
  Proceeds from Sales                                             ()               9,828                ()      9,828
  Carrying amount of assets sold                               (2,751)            (4,870)            (2,751)   (4,870)
  Gain/(Loss) on Sale                                          (2,752)             4,958             (2,752)    4,958
  Plant, Equipment & Infrastructure
  Proceeds from Sales                                           1,420              846                1,420      846
  Carrying amount of assets sold/disposed                      (1,316)            (836)              (1,018)    (923)
  Gain/(Loss) on Sale                                            105                10                 402       (77)

  Computer Software
  Proceeds from Sales                                             -                  -                  -         -
  Carrying amount of assets sold/disposed                         -                  -                  -         -
  Gain/(Loss) on Sale                                             -                  -                  -         -

  Total Proceeds from Sale of Assets                            1,420             10,674              1,420    10,674
  Total Carrying amount of Assets Sold                         (4,067)            (5,706)            (3,769)   (5,793)
  Total Gain/(Loss) on Sale                                    (2,647)            4,968              (2,349)   4,880




                                                           144
Notes to the Financial Statements                                   City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


Note 17. Cash flow information

(a) Reconciliation of Surplus for the year to Net Cash Provided By Operating Activities

                                                                              Consolidated                          Council
                                                                                 2009           2008                 2009          2008
                                                                                 $'000          $'000      Note      $'000         $'000

Surplus for the year                                                             29,208        98,861               24,994         94,007
Non cash items included in Surplus for the year
Depreciation and amortisation                                                     53,316        49,842               43,887         42,502
(Gain)/Loss on sale of property, plant and equipment                               2,647        (4,968)               2,349         (4,880)
Transfer of Assets to external parties                                            23,475            -                23,475            -
Non current asset additions                                                      (18,821)       (6,994)             (18,821)        (6,994)
(Gain)/Loss on revaluation of investment properties                                  -         (20,411)                 -          (20,411)

Changes in assets and liabilities in relation to operating activities:
  (Increase)/Decrease in Trade and other Receivables                              3,054        (46,987)             (2,165)        (42,864)
  (Increase)/Decrease in Other Assets                                             (245)          574                 (121)          (2,855)
  (Increase)/Decrease in Inventories                                               115           (35)                   -              -
  (Increase)/Decrease in Assets held for sale                                     2,770                              2,770
  (Increase)/Decrease in Accrued Income                                           (274)                              (476)
  Increase/(Decrease) in Trade and other Payables                                (9,778)        1,913               (7,625)         1,843
  Increase/(Decrease) in Superannuation Liability                                14,482                                 -
  Increase/(Decrease) in Employee benefits                                        2,983        (1,480)               1,980         (2,111)
  Increase/(Decrease) in Provisions                                               (133)          157                  (88)           157
Net cash provided by operating activities                                       102,799        70,471               70,159         58,394

(b) Components of Cash

Cash at the end of the financial year as shown in the statement of financial position and the statement of cash flows comprises:

Cash on hand                                                                       64             71       23          32             32
Cash at bank                                                                      3,803         (293)      23         2,283           10
Bank Bills, Negotiable Certificates of Deposit                                  107,604        120433      23        96,723        108,951
Fixed Interest securities                                                        14,275        14379       23        14,275         14,379
                                                                                125,745       134,589               113,312        123,372

(c) Restriction on Investments
Specific Funding for the provision for long service leave pursuant to section 18 Local Government (Long service leave) Regulations
2003:
Long Service Leave                                                               18,961      16,012               14,220       12,119

(d) Market Value
Market values of bank bills and negotiable certificates of deposit as at 30 June 2009 are not recognised until disposal of these
investments:
Bank Bills & Negotiable Certificates of Deposits                                  107,604       120,433              96,723        108,951




                                                                     145
Notes to the Financial Statements                           City of Melbourne      2008–09 Annual Report
For the year ended 30 June 2009


Note 18a. Leases and commitments
                                                                  Consolidated              Council
                                                                      2009       2008          2009      2008
                                                                     $'000       $'000         $'000     $'000
(i) Operating leases payable
Operating lease rentals of property, contracted for
at balance date, but not recognised as liabilities:
Not longer than 1 year                                                 70         39            140      109
Longer than 1 year but no longer than 5 years                         226          -            226       -
Longer than five years                                                150          -            150       -
                                                                      446         39            516      109

(ii) Commitments for Capital and other Expenditure
Expenditure contracted for at balance date but
not recognised in the financial report as liabilities:

CAPITAL Buildings                                                     1,802      2,403         1,802     2,403
        Plant and Equipment                                           1,406      2,447         1,406     2,447
                                                                      3,208      4,850         3,208     4,850
Payable within one year                                               3,208      4,850         3,208     4,850


OPERATING Maintenance                                                 1,479      2,440         1,479     2,440
Payable within one year                                               1,479      2,440         1,479     2,440


Service*                                                             143,012     68,205       186,135   173,101
Payable within one year                                               32,942     25,291        52,964    56,910
Payable later than one year but not later than five years            110,070     42,914       133,171   116,191
                                                                     143,012     68,205       186,135   173,101

                                                                    147,699      75,495       190,822   180,391


* Service contracts are for a maximum period of five years


Note 18b. Lease receivables
                                                                  Consolidated              Council
                                                                    2008/09      2007/08      2008/09   2007/08
                                                                     $'000        $'000        $'000     $'000
(i) Operating leases receivable
Future minimum lease receipts under non-cancellable
operating leases for rentals of property, contracted for
at balance date, but not recognised as assets:
         Not longer than 1 year                                       3,607       2,559         3,607     2,559
         Longer than 1 year but no longer than 5 years                8,488       5,714         8,488     5,714
         Longer than five years                                      25,024      24,009        25,024    24,009
                                                                     37,119      32,282        37,119    32,282




                                                            146
Notes to the Financial Statements                  City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Note 19. Contingent assets and liabilities
Guarantees
Melbourne City Council and the State Government of Victoria have indemnified, in equal shares, Regent
Management Company Pty Ltd against any liability, loss or expense incurred or suffered by the
company. Over the financial year, no calls on this indemnity were made.
Melbourne City Council, as a once-off arrangement, agrees to act as guarantor for Fencing Victoria’s
loan of $250,000 for their capital contribution towards the State High Performance Centre, which will be
completed as part of the Arden Street redevelopment. Over the financial year, no calls on this indemnity
were made.
At 30 June 2009 there are no outstanding Melbourne City Council bank guarantees.
Note 19a. Melbourne Wholesale Fish Market
In the financial year ending June 2007, the Melbourne Wholesale Fish Market Pty Ltd had offered the
business for sale through a tender process from a short-listed Expression of Interest Registrants. The
tender process was terminated. The Fish Market tenants were advised of the outcome of the process
and the company intended to close the Market for business by no later than 31 March 2009. The
company has extended the closure to 30 September 2009.
Concurrently, the company is continuing its negotiations with VicTrack for the sale of the site, subject to
a number of conditions including vacant possession.
Note 19b. Contributed assets
During 2009 total contributed assets of $18.8 million was received. This was comprised of assets from
Docklands including first time recognition of land under roads acquired from 1 July 2008 and assets from
the Commonwealth Games Village site.
Note 19b. Kensington and North Melbourne
Legislation to transfer the municipal responsibility for the Kensington and North Melbourne precinct to
Melbourne City Council received Royal Assent on the 11 December 2007. The transfer occurred on 1
July 2008. A receivable of $46.5 million was recognised at 30 June 2008 representing the value of
assets received on that date. This amount has since been transferred to assets.
An amount of $46.5 million has been taken to account in the profit and loss as contributed assets in
relation to the transfer for the year ended 30 June 2008.




                                                    147
Notes to the Financial Statements                            City of Melbourne        2008–09 Annual Report
For the year ended 30 June 2009


Note 20. Superannuation
The City of Melbourne makes employer superannuation contributions in respect of its employees to the Local
Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in profit or loss
when they are due. The Fund has two categories of membership, accumulation and defined benefit, each of which is
funded differently.

The Fund's accumulation category, Vision Super Saver, receives both employer and employee contributions on a
progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9% required
under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits
accruing to employees are represented by their share of the net assets of the Fund.

Defined Benefit Plan

The Fund's Defined Benefit Plan is a multi-employer sponsored plan. As the Plan's assets and liabilities are pooled and
are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs between
employers. As provided under Paragraph 32 (b) of AASB 119, City of Melbourne does not use defined benefit
accounting for these contributions.
City of Melbourne makes employer contributions to the defined benefit category of the Fund at rates determined by the
Trustee on the advice of the Fund's Actuary. On the basis of the results of the most recent full actuarial investigation
conducted by the Fund's Actuary as at 31 December 2008, City of Melbourne makes the following contributions:-


- 9.25% of members' salaries (same as previous year);
- the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contribution tax
(same as previous year);
The actuarial investigation concluded that although the Net Market Value of Assets was in excess of Accrued Benefits at
31 December 2008, based on the assumptions adopted, there was a shortfall of $71 million when the funding of future
benefits was also considered. The Actuary will undertake the next actuarial investigation at 30 June 2010 to ascertain if
additional contributions are required.
Accounting Standard Disclosure

The Fund's liability for accrued benefits was determined by the Actuary at 31 December 2008 pursuant to the
requirements of Australian Accounting Standard AAS25 follows:



                                                                                   31-Dec-08
                                                                                       $'000
Net Market Value of Assets                                                          3,630,432
Accrued Benefits (per accounting standards)                                         3,616,422
Difference between Assets and Accrued Benefits                                         14,010
Vested Benefits                                                                     3,561,588


The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were:

Net Investment Return                                               8.50% p.a.
Salary Inflation                                                    4.25% p.a.
Price Inflation                                                     2.75% p.a.




                                                              148
Notes to the Financial Statements                  City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 20 Superannuation (continued)
City of Melbourne Superannuation Sub-plan (CMSSP) Members
A separate plan is operated for City of Melbourne defined benefit members. The CMSSP was closed to
new members on 23 December 1993.
The CMSSP is a multi-employer sponsored plan. As the fund's assets and liabilities are pooled and are
not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs
between employers. As provided under Paragraph 32 (b) of AASB 119, council does not use the defined
benefit accounting for these contributions, but as the majority of the members of the fund are employees
of the Melbourne City Council group, the surplus or deficit of the fund is recorded in accordance to
AASB119 at the consolidated level for reporting purposes. Member profiles will be reviewed periodically
to determine if and when reporting at the individual entity level became appropriate.
The Melbourne City Council makes employer contributions to the defined benefits category of the fund at
rates determined by the fund’s trustee on advice of the actuary. On the basis of the results of the most
recent update of the full actuarial investigation conducted by the fund’s actuary as at 31 December 2008,
the trustee has determined that the funding arrangements were adequate for the expected CMSSP
liabilities and Melbourne City Council makes the following contributions:
   8 per cent of members’ salaries (up until 30 November 2006), and 4 per cent thereafter
   the difference between resignation and retrenchment benefits paid to its retrenched employees
    (same as previous year).


The actuarial investigation concluded that although the Net Market Value of Assets was in excess of
Accrued Benefits at 31 December 2008, based on the assumptions adopted, there was a shortfall for
when the funding of future benefits was also considered. A Liability of $10.354 million has been
recognised in the consolidated financial statements as the council’s share of the scheme’s liabilities,
being the difference between the present value of employees’ accrued benefits and the net market value
of the scheme’s assets at balance date. The actuary will undertake the next actuarial investigation at 30
June 2010 to ascertain if additional contributions are required.
The CMSSP Fund’s liability was determined in the 31 December 2008 actuarial investigation pursuant to
the requirements of the Australian Accounting Standard AAS 25 as follows:

                                                                    31-Dec-2008
                                                                     $ millions
             Net Market Value of Assets                                 60.4

             Accrued Benefits (per accounting standards)                51.4

             Difference between Assets and Accrued                       9.0
             Benefits
             Vested Benefits                                            58.7

             Vested Benefits index                                     114%




                                                   149
Notes to the Financial Statements                 City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


The total amount of superannuation contributions paid by Melbourne City Council (inclusive of its wholly
owned subsidiaries Citywide Pty Ltd, Queen Victoria Market Pty Ltd and Melbourne Wholesale Fish
Market Pty Ltd.) during the year was $9,800,615 (2008: $8,540,040).
Council has an ongoing obligation to share in the future experience of the Local Authorities
Superannuation Fund Defined Benefits plan and the City of Melbourne Superannuation sub-plan.
Favourable or unfavourable variations may arise should the experience of the Funds differ from the
assumptions made by the fund’s actuary in estimating the fund’s accrued benefit liability.
CityWide Services Solutions Pty Ltd contributes in respect of its employees to the following sub-plans of
the Local Authorities Superannuation Fund:
   The City of Melbourne sub-plan,
   The Defined Benefits plan
   The Accumulation plan.




                                                   150
Notes to the Financial Statements                                      City of Melbourne           2008–09 Annual Report
For the year ended 30 June 2009


Note 21. Related party transactions
      (a) Names of persons holding the position of a Responsible Person at the Melbourne City Council during the financial year were:
      Councillors to 3/12/08:                                Councillors from 4/12/2008:
      LM John So                                             LM Robert Doyle
      DLM Gary Singer                                        DLM Susan Riley
      Carl Jetter                                            Carl Jetter
      Fiona Snedden                                          Kevin Louey
      Fraser Brindley                                        Jennifer Kanis
      David R. Wilson                                        Cathy Oke
      Brian Shanahan                                         Brian Shanahan
      Catherine Ng                                           Ken Ong
      Peter Clarke                                           Peter Clarke

      Chief Executive Officer                                 Kathy Alexander

      (b) Remuneration of Responsible Persons in bands of $ 20,000
                                                                                          2009        2008
         Income Range                                                                      No.         No.
         $0,000 - $19,999~                                                                  1
         $20,000 - $39,999~                                                                10           2
         $40,000 - $59,999~                                                                 3           5
         $60,000 - $79,999                                                                              1
         $80,000 - $99,999~                                                                 1           1
         $120,000 - $139,999                                                                            1
         $280,000 - $299,999                                                                            1
         $360,000 - $379,999                                                                1
                                                                                           16          11
         ~ Council Election in November 2008


                                                                                          2009       2008
                                                                                          $'000      $'000
      Total Remuneration for the financial year for Responsible Persons included
      above, amounted to:                                                                  919        880

      (c) Senior Officers' Remuneration
      The number of Senior Officers, other than the Responsible Persons, whose total remuneration exceeded
      $100,000 during the financial year, are shown below in their relevant income bands:

                                                                                          2009        2008
         Income Range                                                                      No.         No.
         $100,000 - $119,999*~                                                             102         79
         $120,000 - $139,999*~                                                              11         23
         $140,000 - $159,999*~                                                              10         14
         $160,000 - $179,999*~                                                               8          9
         $180,000 - $199,999                                                                10          3
         $200,000 - $219,999~                                                                3          4
         $220,000 - $239,999                                                                 2
         $240,000 - $259,999                                                                 1          1
         $260,000 - $279,999                                                                            2
         $280,000 - $299,999
         $300,000 - $319,999                                                                1           2
         $320,000 - $339,999~                                                               2
         $360,000 - $379,999                                                                2
                                                                                           152        137

                                                                                          2009       2008
                                                                                          $'000      $'000
      Total Remuneration for the financial year for Senior Officers included above,
      amounted to:                                                                        20,335     17,895

      An additonal 9 staff moved into the >$100,000 band as a result of "Bracket Creep"
      * Includes seperation payments for 2007/08
      ~Includes seperation payments for 2008/09




                                                                        151
Notes to the Financial Statements                         City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 21. Related party transactions (continued)

(d)       Retirement benefits
          No retirement benefits were paid by the council in connection with the retirement of responsible
          persons during the financial year or in the previous financial year.
            (e)   Other transactions
          Other related party transactions requiring disclosure this financial year have been considered
          and there are no matters to report. There were no matters to report in the previous financial
          year.
            (f)   Wholly-owned group
          Melbourne City Council is the ultimate parent entity in the wholly-owned group. Transactions
          with the controlled entities, CityWide Service Solutions Pty Ltd, Queen Victoria Market Pty Ltd
          and Melbourne Wholesale Fish Market Pty Ltd during the year comprised of the following: car
          rental services, provision of accounting and administration services, property rental, contract
          sales, purchases of raw materials and plant and equipment and in accordance with the Tax
          Equivalence Policy, the receipt of payments which included tax equivalents for income tax,
          and payroll tax where applicable. These transactions were made on normal commercial terms
          and conditions and at market rates.


                                                                                           Council
                                                                                  2009               2008
      (g) Other related party transactions                                        $'000              $'000

        Debtor - CityWide Service Solutions Pty Ltd                               2,425               3,252
        Debtor - Queen Victoria Market Pty Ltd                                     435                 888
                                                                                  2,860               4,140
        Creditor - CityWide Service Solutions Pty Ltd                             9,460              10,401
        Creditor - Queen Victoria Market Pty Ltd                                   292                 195
                                                                                  9,752              10,596

        Interest bearing loan to CityWide Service Solutions Pty Ltd                47                 158

        Intercompany Revenue
        Dividends                                                                  7,032              3757
        Interest on loan to CityWide Service Solutions Pty Ltd (7.79%)               10                 15
        Other                                                                      9,014              9,427
        Total Intercompany Revenue                                                16,056             13,199

        Intercompany Expenditure
        CityWide Service Solutions Pty Ltd                                        47,152             47,230
        Total Intercompany Expenditure                                            47,152             47,230




                                                           152
Notes to the Financial Statements                  City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments
Accounting policy, terms and conditions
  Financial           Note Accounting policy                          Terms and conditions
  instruments
  Financial assets
  Cash and cash           17   Cash on hand, cash at bank and         Council: On call deposits returned a
  equivalents                  money market call account are          floating interest rate of 2.83% (6.41%
                               valued at face value.                  in 2007–08).
  Bank bills,             17   Interest is recognised as it           Council: Managed fund provided
  negotiable and               accrues.                               return of 5.11% (6.45% in 2007–08)
  transferrable                Investments and bills are valued       excluding unrealised gains/losses.
  certificates of              at cost.
  deposits and
                               Investments are held to maximise
  fixed interest
                               interest returns of surplus cash.
                               Fixed interest securities are
                               valued at fair value.
  Trade and other receivables
  Sundry debtors          5    Receivables are carried at             General debtors are unsecured.
  (including                   nominal amounts due less any           Credit terms are based on 30 days
  Docklands and                provision for doubtful debts. A        from date of invoice.
  Kensington/North             provision for doubtful debts is
  Melbourne)                   recognised when collection in full
                               is no longer probable.
                               Collectability of overdue accounts
                               is assessed on an ongoing basis.

                               Docklands debtors and
                               Kensington/North Melbourne
                               debtors have been recognised at
                               carrying value, as recorded at the
                               time of transition per the financial
                               records of the responsible entity.


  Investments             7    Investments for the council            Investments in other entities are
                               include all wholly owned               valued at historical cost.
                               subsidiaries, wholly controlled
                               trusts of the council and
                               associated entities.
                               Investments the consolidated
                               entity includes interests in other
                               entities and associated entities.
  Financial liabilities




                                                   153
Notes to the Financial Statements              City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


  Trade and other      12   Liabilities are recognised for       General creditors are unsecured, not
  payables                  amounts to be paid in the future     subject to interest charges and are
                            for goods and services provided      normally settled within 30 days from
                            to council as at balance date        date of invoice.
                            whether or not invoices have
                            been received.
  Borrowings                Borrowings are carried at their      CityWide: The bank overdraft and bill
                            principal amounts, which             acceptance and discount facilities
                            represent the present value of       are unsecured facilities. The bank
                            future cash flows associated with    facilities may be drawn at any time
                            the servicing of debt. Interest is   and may be terminated by the bank
                            recognised as an expense as it is    subject to default under the loan
                            incurred.                            agreement. Subject to the
                                                                 continuance of satisfactory covenant
                                                                 achievement, the bank facilities may
                                                                 be drawn at any time. The facilities
                                                                 expire on the 1 December 2009. The
                                                                 weighted average interest rate was
                                                                 4.81% in 2009 (7.12% in 2008).

                                                                 Council: The Melbourne City Council
                                                                 has no borrowings.

                                                                 No defaults or breaches of any
                                                                 loan/debt facility arrangements
                                                                 involving council or its consolidated
                                                                 group occurred during the financial
                                                                 year ended 30 June 2009.




                                               154
Notes to the Financial Statements                                                                               City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments (continued)
(a) Interest rate risk
(i) The consolidated entity's exposure to interest rate risk, repricing maturities and effective weighted average interest rates on financial instruments at
balance date is set out below:
                                              Weighted
                                               Average                                      Fixed Interest
                                               Interest           Floating                 Rate Maturities           Non interest
                                               rate %           Interest rate               1 year or less             bearing                      Total
                                            2009      2008    2009         2008          2009          2008        2009         2008       2009              2008
                                             %          %    $ '000       $ '000         $ '000        $ '000     $ '000       $ '000      $ '000           $ '000
          Financial Assets
          Cash                              2.83%    6.41%    3,803       (293)             -               -       64          71         3,866              (222)
          Short term deposits               3.48%    7.22%       -            -             -            -           -              -        -                  -
          Bank Bills & NCD's                5.11%    6.45%       -            -          121,878
                                                                                            -         134,812
                                                                                                            -        -              -     121,878           134,812
                                                                                                                                                                -
          Sundry debtors                                         -            -             -               -     35,661       39,368     35,661             39,368
          Kensington/North Melbourne
          Receivable                                                                                                  -        46,590        -               46,590
          Investment in unlisted entities                        -            -            -                -      3,042        3,042      3,042             3,042
                                                              3,803       (293)           121,878     134,812     38,767       89,071     164,448           223,589
          Financial Liabilities
          Trade creditors                                         -           -             -            -        18,203       29,555     18,203            29,555
          Deposits & retentions                                   -           -             -            -         3,775        3,383      3,775            3,383
          Borrowings                        4.81%    6.46%      7,500      10,600                                                          7,500            10,600
                                                                7,500      10,600           -            -        21,978       32,938     29,478            43,538

          Net financial assets                               (3,697)    (10,893)         121,878     134,812      16,789      56,133      134,970           180,051




                                                                                   155
Notes to the Financial Statements                                                                              City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments (continued)
(ii) The council’s exposure to interest rate risk, repricing maturities and effective weighted average interest rates on financial instruments at balance date
is set out below:
                                                Weighted
                                                 Average                                   Fixed Interest
                                                 Interest           Floating              Rate Maturities            Non interest
                                                 rate %           Interest rate            1 year or less              bearing                   Total
                                              2009      2008    2009         2008       2009          2008         2009         2008    2009              2008
                                               %          %    $ '000       $ '000      $ '000        $ '000      $ '000       $ '000   $ '000           $ '000
            Financial Assets
            Cash                               2.88%   6.41%   2,283         10               -            -         32         32       2,315              42
            Bank Bills & NCD's                 5.14%   6.45%        -             -     110,997      123,330          -             -   110,997          123,330
            Sundry debtors                                          -             -           -            -       22,153      20,548   22,153            20,548
            Kensington/North Melbourne
            Receivable                                              -             -          -             -         -         46,590      -             46,590
            Investment in unlisted entities                         -             -           -            -       32,818      31,870   32,818            31,870
                                                               2,283         10         110,997      123,330       55,004      99,040   168,284          222,380
            Financial Liabilities
            Bank Overdraft
            Trade creditors                                         -             -          -             -       14,848      23,483   14,848           23,483
            Deposits & retentions                                   -             -          -             -        2,778       2,745    2,778           2,745
                                                                    -             -          -             -       17,626      26,228   17,626           26,228

            Net financial assets                               2,283         10         110,997     123,330       37,378      72,811    150,658          196,151




                                                                                  156
Notes to the Financial Statements                                                                                        City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments (continued)
(b) Reconciliation of net financial assets to net assets
                                                                                             Consolidated                         Council
                                                                                                  2009        2008                   2009        2008
                                                                                                 $ '000       $ '000       Note     $ '000       $ '000

                       Net financial assets as above                                             134,970     180,051               150,658      196,151

                       Non financial assets and liabilities:
                         Inventories                                                                 382         497        6            -           -
                         Intangible Assets                                                         13,499      12,975      10         3,647        3,744
                         Other assets                                                               3,933       6,732                 6,559        9,684
                         Rate debtors                                                               1,705       1,139                 1,705        1,139
                         Property, Infrastructure, Plant & Equipment                             2,659,254   2,604,309      9      2,598,941    2,535,238
                        Investment Properties                                                      89,446      79,336                89,446       79,336
                        Net Assets/(Liabilities) of City of Melbourne' Defined Super. Fund        (10,355)      3,784                    -           -
                         Accruals                                                                 (29,478)    (35,684)     12       (24,946)     (27,101)
                         Income in advance                                                         (2,486)     (2,431)     12        (1,099)       (526)
                         Employee Entitlements                                                    (30,688)    (27,705)     13       (21,771)     (19,791)
                         Provisions                                                                 (622)       (755)      14         (467)        (555)
                         Non Current Payables                                                      (6,849)     (7,954)     12a       (6,849)      (7,954)

                       Net assets per Statement of Financial Position                           2,822,709    2,814,296            2,795,823     2,769,365



Note: Refer to note 5i page 130 for detail on trade debtors, provisions and bad debts.




                                                                                                157
Notes to the Financial Statements                                                                          City of Melbourne         2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments (continued)
(c) Net fair values
The aggregate net fair value of financial assets and financial liabilities, both recognised and unrecognised at balance date are as follows:


                                                            Consolidated                                               Council
                                                                 Carrying           Net Fair   Carrying    Net Fair              Carrying   Net Fair   Carrying   Net Fair
                                                                  Amount              Value     Amount       Value                Amount      Value     Amount      Value

                                                                   $ 000's           $ 000's    $ 000's     $ 000's               $ 000's    $ 000's    $ 000's    $ 000's
                                                                     2009              2009       2008        2008                  2009       2009       2008       2008
 Assets

 Cash                                                                3 866             3 866     ( 222)       ( 222)                2 315      2 315         42         42
 Sundry Debtors                                                     35 661            35 661     39 368       39 368               22 153     22 153     20 548     20 548
 Kensington and North Melbourne                                          0                 0     46 590       46 590                    0          0
 Short term deposits                                                     0                 0          0            0                    0          0          0          0
 Bank bills & NCD's                                                121 878           121 878    134 812      134 812              110 997    110 997    123 330    123 330
 Investment in unlisted entities                                     3 042             3 042      3 042        3 042               32 818     32 818     31 870     31 870
 Total financial assets                                           164 448           164 448    223 589      223 589              168 284    168 284    175 790    175 790

 Liabilities

 Trade creditors                                                    18 203            18 203      29 555      29 555               14 848     14 848     23 483     23 483
 Deposits and retentions                                             3 775             3 775       3 383       3 383                2 778      2 778      2 745      2 745
 Borrowings                                                          7 500             7 500      10 600      10 600                               0                     0
 Total financial liabilities                                       29 478            29 478      43 538      43 538                17 626    17 626      26 228    26 228




                                                                              158
Notes to the Financial Statements                   City of Melbourne     2008–09 Annual Report
For the year ended 30 June 2009


Note 22. Financial instruments (continued)
The following methods and assumptions are used to determine the net fair values of financial assets and
liabilities:
   cash, cash equivalents and short-term deposits – the carrying amount approximates fair value
    because of their short term to maturity
   trade debtors and creditors – the carrying amount approximates fair value
   bank bills and negotiable certificates of deposits – there are market prices quoted daily for securities
    issued by any of the major four banks
   for any other securities, a reasonable estimate of the fair value has been determined by reference to
    the current market value of a quoted security, and adding a credit risk margin, which is determined by
    reference to historical data
   fixed interest investments are valued at fair value.
(d) Credit risk exposures
The credit risk on financial assets of the economic entity which have been recognised in the balance
sheet is generally the carrying amount, net of any provisions for doubtful debts.
(e) Risks and mitigation
The risks associated with our main financial instruments and our policies for minimising these risks are
detailed below.
Market risk
Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate
because of changes in market prices. The council's exposures to market risk are primarily through
interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency
risk. Components of market risk to which we are exposed are discussed below.
Interest rate risk
Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with
the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest
bearing financial assets and liabilities that we use. Non derivative interest bearing assets are
predominantly short-term liquid assets. Our interest rate liability risk is limited to our subsidiary
company’s (CityWide) borrowings. Council has no direct borrowings.
Our subsidiary company CityWide has a borrowing and overdraft facility which has been arranged with a
major Australian bank. Our subsidiary company manages the interest rate risk by:
   ensuring access to diverse sources of funding
   an ongoing review or borrowing levels
   having a limit imposed on the maximum borrowing amount allowed by council.
Investment of surplus funds is made with approved financial institutions under the Local Government Act
1989 (Vic). We manage interest rate risk by adopting an investment policy that ensures:
   conformity with Victorian and Australian government regulations and standards
   adequate safety
   appropriate liquidity
   diversification by credit rating, financial institution and investment product
   monitoring of return on investment




                                                     159
Notes to the Financial Statements                     City of Melbourne      2008–09 Annual Report
For the year ended 30 June 2009


   benchmarking of returns and comparison with budget.
Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.
Credit risk
Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument
and cause us to make a financial loss. We have exposure to credit risk on all financial assets included in
our balance sheet. To help manage this risk:
   we have a policy for establishing credit limits for the entities we deal with
   we may require collateral where appropriate
   we only invest surplus funds with financial institutions which have a recognised credit rating specified
    in our investment policy.
Trade and other receivables consist of a large number of customers, spread across the consumer,
business and government sectors. Credit risk associated with the council's financial assets is minimal
because the main debtor is the Victorian Government and other councils. Apart from the Victorian
Government and councils we do not have any significant credit risk exposure to a single customer or
groups of customers. Ongoing credit evaluation is performed on the financial condition of our customers
and, where appropriate, an allowance for doubtful debts is raised.
We may also be subject to credit risk for transactions which are not included in the balance sheet, such
as when we provide a guarantee for another party. Details of our contingent liabilities are disclosed in
note 19.
Liquidity risk
Liquidity risk includes the risk that, as a result of our operational liquidity requirements:
   we will not have sufficient funds to settle a transaction on the date
   we will be forced to sell financial assets at a value which is less than what they are worth
   we may be unable to settle or recover a financial assets at all.
To help reduce these risks we:
   have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be
    maintained
   have readily accessible standby facilities and other funding arrangements in place
   have a liquidity portfolio structure that requires surplus funds to be invested within various bands of
    liquid instruments
   monitor budget to actual performance on a regular basis
   council has no direct borrowings.
The council’s exposure to liquidity risk is deemed insignificant given our high levels of cash and cash
equivalents and nil borrowings and our current assessment of risk.
The table below lists the contractual maturities for financial liabilities
These amounts represent undiscounted gross payments including both principal and interest amounts.




                                                       160
Notes to the Financial Statements                     City of Melbourne       2008–09 Annual Report
For the year ended 30 June 2009


Consolidated
                             2009 6 mths       6-12         1-2         2-5         >5           ContractedCarrying
                                  or less      months       years       years       years        Cash FlowAmount
                                  $'000        $'000        $'000       $'000       $'000        $'000     $'000
T rade and other payables               75,458          -   -           -           -               75,458    75,458
T rust funds and deposits                  847      1,000       1,500       4,349        -           7,696     7,696
Interest-bearing loans and                 -          -         9,101         -              -       9,101     9,101
borrowings
T otal financial liabilities            76,305     1,000      10,601       4,349             -     92,255    92,255

Council
                             2009 6 mths       6-12         1-2         2-5         >5           ContractedCarrying
                                  or less      months       years       years       years        Cash FlowAmount
                                  $'000        $'000        $'000       $'000       $'000        $'000     $'000
T rade and other payables               43,671              -           -           -               43,671    43,671
T rust funds and deposits                    -     1,000        1,500       4,349   -                6,849     6,849
Interest-bearing loans and                 -         -            -           -                          -       -
borrowings
T otal financial liabilities            43,671     1,000       1,500       4,349             -     50,520    50,520
(f) Sensitivity disclosure analysis
Taking into account past performance, future expectations, economic forecasts, and management's
knowledge and experience of the financial markets, the council believes the following movements are
'reasonably possible' over the next 12 months (Base rates are sourced from Reserve Bank of Australia):
 - A parallel shift of +1 per cent and -1per cent in market interest rates (AUD) from year-end rates of 3.00
per cent.
At reporting date, if interest rates had been higher or (lower) by 1 per cent and all other variables held
constant, council’s surplus would have increased or reduced by approximately $1 million. ($1.2 million
for 2008) This is mainly attributable to council’s exposure to interest rates on its investment portfolio.




                                                       161
Notes to the Financial Statements                                                                                                  City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Note 23. Financial ratios
                                                                                                         Consolidated                                   Council
                                                                                             2009                  2008     2007          2009                2008     2007
    (a) Debt Servicing Ratio
      Debt servicing cost                                                                     670        0.15%          0    0              0           0         0     0
      Total revenue                                                                         434,939                                       325,024
    To identify the capacity of the Council to service its outstanding debt.
    Council's ability to meet it's Debt servicing cost is extremely strong. When
    rounded the ratio of revenue to debt is less than 0.15%


    (b) Debt Commitment Ratio
      Debt servicing and redemption costs                                                     7500        4%            0    0              0           0         0     0
      Rate revenue                                                                          170,541                                       170,541
    To identify Council's debt redemption strategy.
    Council's ability to meet it's Debt commitment is extremely strong. When
    rounded the ratio of rate revenue to debt is less than 0.4%

    (c) Revenue Ratio
      Rate revenue                                                                          170,541       39%      37%      38%           170,541      52%    50%      52%
      Total revenue                                                                         434,939                                       325,024
    To identify Council's dependence on rates.
    (d) Debt Exposure Ratio
      Total indebtedness                                                                    109,957       4%        4%      4%            72,759       3%         3%   3%
      Total realisable assets                                                               2,932,667                                    2,868,581
    To identify Council's exposure to debt.
    4 per cent of realisable assets is required to cover debt in 2008.
    (e) Working Capital Ratio
      Current assets                                                                        167,426      209%      241%     423%          143,729    231%     283%     534%
      Current liabilities                                                                    80,043                                       62,254
    To assess Council's ability to meet current commitments.
    For every dollar of current liabilities, Council has $2.31 of current assets in 2009.




                                                                                                        162
Notes to the Financial Statements                   City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Note 23. Financial ratios (continued)
Definitions
 To assess council's ability to meet current commitments.

 For every dollar of current liabilities, council has $2.31 of current assets as at 30 June 2009.

 Current assets               Total current assets as shown in the balance sheet.

 Current liabilities          Total current liabilities as shown in the balance sheet.

 Debt redemption              Includes the principal component of repayments on loans and financial
                              leases and capital items purchased on vendor terms.

 Debt servicing costs         Includes interest and charges on loans, overdrafts and interest on
                              payments for capital items purchased on vendor terms.

 Rate revenue                 Includes revenue from general rates, municipal charges, special rates,
                              special charges, service rates and service charges.

 Total indebtedness           Total liabilities, both current and non-current, as shown in the balance
                              sheet.

 Total realisable assets      Total current assets and total realisable non-current assets.

 Total revenue                Total revenue as shown in the income statement.




                                                    163
Notes to the Financial Statements                  City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


Statement by Councillors, Chief Executive Officer and Principal Accounting
Officer on the Financial Report
For the year ended 30 June 2009


In my opinion the accompanying financial report and standard statements have been prepared in
accordance with the Local Government Act 1989, the Local Government (Finance and Reporting)
Regulations 2004, Australian Accounting Standards and other mandatory professional reporting
requirements.




Joe Groher (CPA)
Principal Accounting Officer


In our opinion the accompanying financial report presents fairly the financial transactions of the
Melbourne City Council Group and Melbourne City Council for the year ended 30 June 2009 and the
financial position of the Melbourne City Council Group and Melbourne City Council as at that date.
As at the date of signing, we are not aware of any circumstance, which would render any particulars in
the financial report to be misleading or inaccurate.
We were authorised by the council on 26 August 2009 to certify the financial report in its final form.




Robert Doyle                                  Brian Shanahan
Lord Mayor                                    Councillor




Kathy Alexander
Chief Executive Officer


Melbourne
26 August 2009
Notes to the Financial Statements    City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009


Auditor-General’s report on the financial report




                                     165
Notes to the Financial Statements   City of Melbourne   2008–09 Annual Report
For the year ended 30 June 2009




                                    166
Notes to the Financial Statements               City of Melbourne         2008–09 Annual Report
For the year ended 30 June 2009


Five year statistics
                                      2005           2006          2007          2008          2009
 Rates
 Number of
 assessments
 (rateable)              number         47,665            52,742     57,191        66,737        71,923
 Rate in $
 - residential           cents               5.00           5.15          5.13          5.30          4.58
 - commercial            cents               5.82           6.00          5.98          6.17          5.38
 Increase in rate
 revenue                 %               2.0%              3.0%       3.8%          3.2%          3.5%
 Net rate Income         $ millions      119.2             127.8      139.2         156.8         170.6
 Financial1
 Total revenue           $ million       247.9             264.1      269.6         312.2         325.0
 Total operating
 expenditure             $ million       230.4             247.3      275.0         276.6         293.0
 Total capital works
 expenditure             $ million           65.4           94.7          57.5          63.0          78.0
 Surplus/(deficit) for
 the year 2              $ million           14.2           14.8      174.0             94.0          25.0
 Debt service cost       %                    0.0            0.0           0.0           0.0           0.0
 CPI increase            %               2.5%              2.8%       2.7%          3.5%          2.8%
 Human resources 1
 Total number of
 employees               number          1,101             1,147      1,120         1,134         1,211
 Staff turnover -
 permanent staff         %              11.5%             15.0%      14.5%         12.7%          7.9%
 City development
 Building applications
 received                number              223            170           181            68           103
 Planning applications
 received                number          1,241             1,234      1,166         1,122         1,077
 Transport and
 traffic




                                                    167
Notes to the Financial Statements                City of Melbourne    2008–09 Annual Report
For the year ended 30 June 2009


 Construction and        sq. mtr
 resurfacing             asphalt laid     131,528     152,099      162,942        na    125,221
 Bluestone footpath      sq metre laid      3,716          2,275       na         na         1,143
 Parking revenue *       $ million           26.4           27.7      27.9      28.0          28.8
 Refuse
 Weight of refuse
 collected               000 tonnes          17.6           18.4      21.1      23.6          22.1
 Mass of material
 recycled                000 tonnes           5.1            4.2       4.9       5.4           5.4
 Parks and gardens
 Parks and gardens
 maintained              hectares            482            482      482.5     470.6     466.05
 Child care
 Number of full-time
 child care places       number              167            167       167        178          225
 Home delivered meals
 Number of meals
 delivered               number            35,362         37,516   32,974    35,789      36,484
 Recreation
 Attendance at
 recreation centres      number           962,201     865,630      861,575   826,617    789,862
 Attendance at golf
 course                  number            41,343         38,335    35,271    35,314     36,424
 Notes:
 *includes parking meters and car parks
 1: Council only
 2: Prior to asset revaluations, surplus 2007 includes Docklands Transition, 2008 includes
 Kensington/Nth Melbourne transfer to council
 na: Information not available




                                                    168

				
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