Annual report 2013/2014

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CITY OF MELBOURNE ANNUAL REPORT 2013–2014

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City of Melbourne Annual Report 2013–14 We are pleased to present the City of Melbourne’s Annual Report for 2013–14. This report describes the City of Melbourne’s performance over the 2013–14 financial year against the objectives of the 2013–14 Annual Plan and Budget and the four-year priorities of the Council Plan 2013-2017.

The report is designed to meet our obligations under section 131 of the Local Government Act 1989 (Vic).

It also draws on the Global Reporting Initiative (GRI) G4 framework for sustainability reporting, with a view to being able to report fully to core requirements of the G4 framework in future years.

The City of Melbourne has obtained external assurance for the financial and standard statements, as well as performance statement contained in this report (see pages 100 and 174). External assurance was not sought on the GRI components of the report.

FUTURE MELBOURNE COMMUNITY PLAN 10+ YEARS

MUNICIPAL PUBLIC HEALTH & WELLBEING PLAN

Our website at melbourne.vic.gov.au provides more information about City of Melbourne activities, policies and plans for the future.

We value your feedback on this report because it helps us make our next report better. If you’d like more information about any item in this report, just contact us and ask.

Email your feedback or questions to enquiries@melbourne.vic.gov.au Write to us at: Corporate Planning and Learning City of Melbourne GPO Box 1603 Melbourne VIC 3001

COUNCIL PLAN 4 YEARS

ANNUAL PLAN AND BUDGET YEARLY Ongoing evaluation and review including community input

ANNUAL REPORT

Speak to a Customer Relations Officer on +61 3 9658 9658.

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MELBOURNE STRATEGIC STATEMENT

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CONTENTS Welcome to the City of Melbourne

2-3

Comprehensive Income Statement

121

Year in review

4-10

Balance Sheet

122

Our Council

11-17

Statement in Changes in Equity

123

Our reporting framework

18

Statement of Cash Flows

124

Performance against our goals

19

Note 1.

Significant accounting policies

125

20-27

Note 2.

Operating result attributable to functions/activities 132

Goal 2

28-33

Note 3. Revenues

133

Goal 3

34-39

Note 4. Expenses

136

Goal 4

40-45

Note 5. Trade and other receivables

137

Goal 1

Goal 5

46-51

Note 6. Inventories

138

Goal 6

52-57

Note 7.

Other assets

138

Goal 7

58-61

Note 8. Other financial assets

138

Goal 8

62-66

Our Organisation

67

Overview

68-69

Note 9. Property, plant, equipment and infrastructure

139

Note 10. Intangible assets

149

Note 11. Investment property

151

Community and stakeholder engagement

70-71

Note 12. Trade and other payables

152

Continuous improvement

72-73

Note 13. Employee benefits

152

Our people

74-79

Note 14. Provisions

153

Environmental performance

80-82

Note 15. Reserves

153

Risk management

83-84

Note 16. Gain/(loss) on sale of fixed assets

156

85

Note 17. Cash flow information

157

87

Note 18. Leases and commitments

158

Note 19. Contingent liabilities

159

Note 20. Defined Benefits Superannuation Funds

159

Audit Procurement and supply chain Interacting with customers

88-89

KSA Performance Statement

90-101

Victorian Local Government Indicators

102

Note 21. Related party transactions

162

Our Reporting Approach

103-104

Note 22. Financial instruments

164

Global Reporting Initiative Index

105-109

Note 23. Financial ratios

171

Note 24. Events occurring after balance date

172

Statement by Councillors, Chief Executive and Principal Accounting Officer on the Financial Report

173

How to read the financial report

110-111

Standard Statements

112-120

Financial Report

121-175

City of Melbourne Annual Report 2013–2014 September 2014

Disclaimer This report is provided for information and it does not purport to be complete. While care has been taken to ensure the content in the report is accurate, we cannot guarantee it is without flaw of any kind. There may be errors and omissions or it may not be wholly appropriate for your particular purposes. In addition, the publication is a snapshot in time based on historic information which is liable to change. The City of Melbourne accepts no responsibility and disclaims all liability for any error, loss or other consequence which may arise from you relying on any information contained in this report.

To find out how you can participate in the decision-making process for City of Melbourne’s current and future initiatives, visit melbourne.vic.gov.au/getinvolved

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Welcome to the City of Melbourne Melbourne is the capital of Victoria, Australia, and is presided over by the Melbourne City Council. It is one of 79 municipalities in Victoria operating as a public statutory body incorporated under the Local Government Act 1989 (Vic).

FAST FACTS 16

SUBURBS

37.7 km2

486ha

AREA

parkland

62,090

dwellings at 30 june 2014

844,000

^

579,000^

weekDAY population

weekend population

incLuding residents

incLuding residents

438,972^

employment

Residential student population

languages

116,431^^

Our health and wellbeing priorities are to facilitate and encourage:

Residential population

138**

cultural

18,221

businesses

backgrounds

at 30 june 2014

PARKVILLE

FREEWAY

WELLINGTON PARADE

JOLIMONT

BR UN TO N

Southbank Promenade

W AY

AV EN UE

MELBOURNE

SOUTHBANK KI NG S

PUNT ROAD

EAST MELBOURNE

AS RC DO EET R ST

DOMAIN ROAD

AD RO DA KIL ST

YARRA

PORT MELBOURNE

SOUTH WHARF

G RIN SP

TE T GA WES

ST

S ER ND FLI

Federation Square

N

BO UN DA RY

CO

MELBOURNE EE QU

LORIMER STREET

INS

LL

N STO

DOCKLANDS

Victoria Harbour

AN

K EE CR

Waterfront City

E OB TR LA

R CE EN SP

R G RIVE YRNON MARIB

EE ON MO

S ND PO

EY AD DL DE DU RL EY

LT

SW

New Quay

VICTORIA PARADE

LE DA NS RKE U BO

LO

AM LLI WI

FOO TSC RAY ROA D

WEST MELBOURNE

CARLTON VICTORIA STREET

ANDERSON

VICTORIA STREET

TOORAK ROAD

SOUTH YARRA

COMMERCIAL

PUNT ROAD

RAILWAY

ST LL NE ON O'C

NORTH MELBOURNE

NICHOLSON STREET

GRATTAN

KENSINGTON

FISHERMANS BEND

LYGON STREET

ROAD

ST EY EL RK BE

RI VE R

MACAULAY

RO AD

SWANSTON

MELROSE STREET

SM ITH FIE LD

RO AD

FISH PAR ER ADE

FL EM IN GT ON

• social inclusion and opportunities to participate and connect with others

• access to community services, transport, education, affordable housing and open space.

PRINCES STREET

FLEMINGTON

• healthy eating and access to nutritious food

• improved environmental health including noise reduction, tobacco control and climate change management

MACPHERSON STREET

ROAD

RACECOURSE

ERROL ST

RO AD

• sufficient physical activity

• community safety, including reducing family violence and the use of alcohol and other drugs

CARLTON NORTH

PEEL

LEON CRES ARD CENT

EP SO M

ROYAL PARADE

AD RO

MAR IBY RNO NG

EN T W EN BO SC E CR

K REE DS C PON NEE MOO

S NG LA

GARTON STREET

*2010 **2011 ^2012 ^^2013

PARK STREET

This 2013–14 Annual Report is the first report of progress on our Council Plan 2013-2017. The report tells us where we are doing well and where we can do better in helping the community realise its long-term goals.

At the City of Melbourne, we have integrated our Municipal Public Health and Wellbeing Plan (developed in accordance with the Public Health and Wellbeing Act 2008) with our Council Plan to demonstrate that improving the quality of life of people in the municipality is the business of the whole organisation.

26,323*

121**

As a local government authority, the City of Melbourne strives to achieve the community’s vision for Melbourne to be a bold, inspirational and sustainable city, as outlined in Future Melbourne, the community plan created together with the public to guide how the city should evolve to 2020.

How the City of Melbourne contributes towards this vision is set out in the Council Plan 2013–2017, including the priorities that shape its program of work and the outcomes sought during the Council’s four-year term.

ER RIV

HIGH STREET

The City of Melbourne is the municipality which covers the central city and 16 inner city suburbs. More than 116,000 people call the municipality home and a further 728,000 people visit the central city every day for work and play. The City of Melbourne is the central precinct for Greater Melbourne and is a thriving residential, entertainment, cultural and educational precinct with a rapidly growing population as more people seek its many business, work, study and social opportunities.

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WELCOME TO THE CITY OF MELBOURNE

OUR VISION AND GOALS COMMUNITY VISION For Melbourne to be a bold, inspirational and sustainable city as expressed in the Future Melbourne community plan futuremelbourne.com.au/wiki/view/FMPlan

Our aim

Our customers

To achieve the community’s vision of Melbourne as a bold, inspirational and sustainable city.

We strive to make everything we do easier, better, faster and cheaper for our customers, gaining more value from our limited resources.

Our goals Our Council Plan 2013–2017 includes eight goals to guide us.

The first six reflect our aspirations for the city. The final two relate to our internal performance and the good governance and management of our organisation.

1.

Our services Our diverse services can be grouped under the following six headings.

A city for people

2. A creative city 3. A prosperous city 4. A knowledge city 5. An eco-city 6. A connected city 7. Resources are managed well 8. An accessible, transparent and responsive organisation

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Message from THE Lord Mayor

We are the fastest growing city in Australia: experiencing large increases in population, jobs, students and visitors.

Since I was elected Lord Mayor in 2008, 77,000 new jobs have been created in the City of Melbourne, increasing our contribution to the Australian economy by $20 billion.

What a remarkable economic achievement.

We have finished these ‘big ticket’ items which now positions us to look forward to and plan for the most ambitious project Council has ever undertaken: the redevelopment of Queen Victoria Market.

Our economic success is mirrored by our cultural and social strength. We are the world’s most liveable city and have been bestowed with numerous other accolades including the world’s friendliest city, most admired knowledge city, a C40 & Seimens City Climate Change Leadership Award and we also came third in the Monocle Quality of Life Survey.

We want to preserve QVM’s heritage and authentic atmosphere while upgrading the market precinct to satisfy the modern needs of traders, shoppers and our growing city.

These global recognitions are testament to the enviable lifestyle that Melbourne has to offer. Safety, sustainability and smart growth have been the keys to our liveability and prosperity.

At the end of the 2014-15 financial year, the Melbourne City Council will have net assets of $3.64 billion, an increase of $184 million on the year just gone. We have an operating surplus of $1.2 million.

We are a big business and we have a responsibility to our ratepayers, and the wider public, to run that business well.

This financial year we undertook two rounds of community consultation on the QVM project involving 1600 participants which will help to inform our master plan the market’s future.

Please read on to learn more about what we have achieved in 2013-14.

On behalf of my fellow Councillors, I thank the City of Melbourne’s hard working and dedicated staff and volunteers for their role in making Melbourne the most liveable city in the world.

I would also like to thank the City of Melbourne’s outgoing CEO Kathy Alexander who is an exceptional leader and should be proud of the contribution she has made to our great city. I wish you well in your future endeavours Kathy.

This report details how we have delivered in 2013-14.

Some of the highlights for me have been: • completion of Docklands Library and Community Centre (Library at the Dock): Australia’s first 6-Star Green Star public building • completion of major projects and master plan at Holland Park

Robert Doyle Lord Mayor City of Melbourne

• completion of Northbank Redevelopment and Jim Stynes Bridge • completion of Fitzroy Gardens Depot and Visitors Centre • completion of major water harvesting infrastructure at Fitzroy Gardens, Birrarung Marr and Queen Victoria Gardens resulting in a 35 per cent increase in our stormwater capacity from last year.

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YEAR IN REVIEW

Message from THE CEO

Packed with new information and interesting facts and figures, this year’s Annual Report demonstrates the City of Melbourne’s progress.

While this organisation has always acted in the best interests of Melbourne, it has not always been easy to prove whether our customers are any better off as a result of our work.

For several years we have been tackling this problem and this report demonstrates how that work is taking shape.

We made measurement a very strong focus in the creation of our Council Plan 2013–17. We have reported against this plan for the first time. Also, for the first time, the Council set out in its 2013–14 Annual Plan and Budget a list of more than 170 actions that we report against here and that indicate the progress we are making against our aims. This year’s results will pave the way for a more complete view in future years as our performance over time becomes known.

Our transformation as a Lean Thinking organisation has really hit its straps, having created an organisation-wide army of problem solvers who understand the role of meaningful measures to trigger and sustain improvement.

The compelling result: this year we identified savings of more than $1.5 million and released 1981 hours of staff time while making things better and easier for customers. You can read about that in the continuous improvement section of this report. A great measure of our progress is that in 2012–13 we had 66.9 rateable properties per employee and this year we have 68.24, a continuing productivity increase of which I am very proud.

Of course, this Annual Report documents all our essential financial data. We have all worked hard to improve our productivity so everyone at the City of Melbourne should be proud of the financials in this report.

Sustainability is fundamental to our work and is referenced throughout our vision, aims and the way we work. Indeed, each of our Council Plan goals is a response to the social, economic and environmental challenges we face and, together, they underpin our approach to making the city more sustainable. See the tables under each goal in this report, or our 2014–15 Annual Plan and Budget, to see our

priority work for next year, as we rise to the challenges posed by a changing climate, increasing population, changing political landscape, economic uncertainty and technological advancements.

The Global Reporting Initiative has lifted the bar for sustainability reporting with the release of its G4 reporting framework. The timing was perfect as we, too, were keen to invigorate our approach to sustainability reporting.

This document demonstrates our efforts to comply with the rigours of G4 core reporting. Along the way we have identified room for improvement, which helps us understand where we can get even better in our reporting in future years.

We also strive to improve our performance through other global sustainability initiatives including our involvement in the C40 Climate Leadership Group and 100 Resilient Cities Centennial Challenge.

We live in an age when governments large and small need to find ways to do more for their customers while consuming fewer resources. I hope that, with this report, readers will gain an insight into an organisation working hard at every level to achieve just that, while being increasingly open and transparent about its progress.

It gives me extra pleasure to present this Annual Report, seeing as it will be the last time I do so as Chief Executive of the City of Melbourne, and knowing that it sets up the organisation well for the future in terms of how it will track and report back on the progress it is making towards the city’s long-term vision.

Dr Kathy Alexander Chief Executive Officer City of Melbourne

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HIGHLIGHTS AND SUMMARY OF PROGRESS Below is a summary of our progress against each of our eight Council Plan goals.

For more detailed information see ‘Performance against our goals’ pages 19 to 66.

Goal 1 A city for people

Goal 2 A creative city

Looking back on 2013–14

Looking back on 2013–14

As part of implementing our Homelessness Strategy, we partnered with Central City Community Health to deliver an outreach program to people living in rooming houses (Key Strategic Activity 1a).

More than 1000 people participated in the development of our Arts Strategy 2014-2017 (Key Strategic Activity 2).

More than 1600 people participated in the community engagement for the Queen Victoria Market renewal project (Key Strategic Activity 1b).

• More than a third of 5670 arts and cultural program participants surveyed reported engaging in our programs for the first time

• 89% of residents lived within a 800-metre walk of community facilities and 96% lived within a 300-metre walk of open space

• 93% of respondents think Melbourne is an artistic and cultural city

• 89% of our customers thought the information received and 95% thought the support they received from our services helped them be healthier • 91% of participants in selected programs felt more a part of their community • 77% of respondents were satisfied with the quality of public spaces • 96% of respondents felt safe in public in the daytime and 57% at night

• More than 14,000 artists looking to work or base themselves in the municipality sought our support

• No trees were added to the Exceptional Tree Register as the planning scheme amendment had not yet passed • 87 more properties were added to the Heritage Register, resulting in 7506 protected properties

Looking ahead to 2014–15 A major initiative in the coming year is to grow the Arts House Program and create a strategic plan for the future of Arts House.

See page 28 for more information.

Looking ahead to 2014–15 A major initiative in the coming year will be to develop a master plan for the Queen Victoria Market renewal.

See page 20 for more information.

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YEAR IN REVIEW

Goal 3 A prosperous city Looking back on 2013–14 We produced a new Economic Development Framework, Building Prosperity Together, to support businesses to capitalise on future opportunities in key industry sectors (Key Strategic Activity 3).

• Business respondents gave an average satisfaction rating of 62.6 out of 100 for a broad range of City of Melbourne activities in terms of their contribution to economic resilience

Goal 5 An eco-city

• Trade connections increased nearly 5% as the result of our business matching activities

Looking back on 2013–14

Looking ahead to 2014–15 A major initiative will be the improvement of our City Yield Program to gain greater economic benefits from business event delegates and cruise ship passengers.

See page 34 for more information.

We planted more than 3000 new trees across the city towards our target of 40% canopy cover in the municipality by 2040 (Key Strategic Activity 5).

• We reduced greenhouse gas emissions from City of Melbourne operations nearly 6% and continued to be a certified carbon neutral organisation • Residential waste-to-landfill rose 15% (the number of households serviced this year also increased 12%) • The volume of complaints per capita about waste removal received by the City of Melbourne was 0.02, or 9% lower than the previous year

Goal 4 A Knowledge city Looking back on 2013–14 Library at the Dock began operations in May 2014 following extensive community engagement (Key Strategic Activity 4).

• 89% of student participants in our programs believed their involvement increased their positive experience of Melbourne • Library visitation increased slightly on the previous year • The number of attendees at knowledge-related events increased 62% from the previous year

• The capacity of our infrastructure to capture and reuse storm water increased 43% • Tree-canopy cover in the municipality was 24.38%, up from the previous year • Nearly three-quarters of residents were aware of climate change risks

Looking ahead to 2014–15 A major initiative in the coming year will be to lead Melbourne’s participation in the Rockefeller 100 Resilient Cities Challenge, appoint a Chief Resilience Officer, develop a Resilience Strategy and determine whole-ofcouncil opportunities to engage in the network.

See page 46 for more information.

• Nearly 80% of Knowledge Week participants felt more informed about the local knowledge sector

Looking ahead to 2014–15 A major initiative in the coming year will be the expansion of knowledge-related events in the municipality.

See page 40 for more information.

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Goal 6 A connected city

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• Residents’ satisfaction rating for our services was 74 out of 100 • Our voluntary and total workforce turnover was 6.28% and 13.22% respectively

Looking back on 2013–14 Cyclists as a proportion of vehicles entering the city during morning peak hours grew from 13.3% to 14.7% following improvements to our bicycling network (Key Strategic Activity 6).

Looking ahead to 2014–15

• There are numerous street connections allowing pedestrians to move easily within and between blocks in the city, with an average of 0.88 connections per block

See page 58 for more information.

• The average footpath space devoted to pedestrians in the city is 19% of the total carriageway area • The proportion of workers who travelled to the city primarily by bike or on foot increased 13% from 2006 to 2011.

Looking ahead to 2014–15 A major initiative in the coming year will be to roll out the first phase of pay-by-phone parking services across the municipality.

A major initiative in the coming year will be to implement the community engagement process agreed for the 10-year Financial Plan.

Goal 8 An accessible, transparent and responsive organisation Looking back on 2013–14 The newly launched Participate Melbourne hub, a platform developed to better engage our communities online, attracted 2050 registered users (Key Strategic Activity 8).

See page 52 for more information.

• There were 85 Council and Future Melbourne Committee items handled in confidential session, or 25% of agenda items

Goal 7 Resources are managed well

• Ten additional City of Melbourne registers and data publications were made available on our website, taking the total number of online publications to 19

Looking back on 2013–14

• Nearly half of residents surveyed had participated in our community engagement processes; nearly a third thought those processes were good or very good (a 15% increase from the previous year)

• Visits to web-pages with Council registers and Council decisions made under the Planning and Environment Act 1987 increased 64%

We developed a performance dashboard for the organisation to help us track progress towards making things better, faster, easier and cheaper for customers (Key Strategic Activity 7).

• The City of Melbourne’s long-term underlying surplus was $1.2 million • The rateable property assessments per employee at the City of Melbourne was 68.24, up from 66.91 the previous year, reflecting a continued increasing trend in organisational productivity

Looking ahead to 2014–15 A major initiative in the coming year will be to develop a suite of measures of interest to our community for publication on our corporate website.

See page 62 for more information.

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YEAR IN REVIEW

Financial summary 3.2%

$12,750,000

6.8%

Property rental and hire

$27,027,000

8.4%

Where does our money come from?

Other (including finance income, sales and recoveries)

54.1%

$33,041,000 Grants and other contributions

27.5%

$213,837,000

$108,836,000

Rates

Fees, charges and fines

TOTAL $395,491,000 Total revenue includes capital contributions which is used to fund our capital works program.

2.9%

16.2%

$10,548,000

$59,035,000

Governance, learning and development

Corporate services

39.8%

$144,782,000 Research, policy, infrastructure planning and delivery

$36,730,000 Urban design, parks and reserves

12.9%

18.2%

$46,846,000 Events, marketing, tourism and business promotion

$66,207,000 Community and cultural services and programs

10.1%

HOW DID WE MAKE our money WORK?

TOTAL $364,148,000

The Financial Summary represents the City of Melbourne’s annual result from ordinary operating activities, a surplus of $31,343,000.

For further details regarding our financial performance please refer to the Standard Statements and Financial Report (from page 110).

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YEAR IN REVIEW

EVENTS CALENDAR July

August

September

• Melbourne Celebrations: Docklands Winter Fireworks: July – August 2013

• Melbourne Writers Festival

• AFL Grand Final Week

• Melbourne Day

• Fringe Festival

• Melbourne Spring Fashion Week

• Melbourne Celebrations: Women in business lunch • The Age Run • Open House Melbourne • Melbourne International Film Festival

October

November

December

• Melbourne Festival

• Melbourne Celebrations: Melbourne Awards (Gala Ceremony)

• Myer Christmas Windows

• Melbourne Music Week • Melbourne Cup Carnival

• Melbourne Celebrations: Santa’s Grand Arrival, Christmas Celebrations

• Knowledge Week

• City 2 Sea

• Suit Up & Ride

• Melbourne Marathon

• Night Noodle market

• The Ring Cycle (ACM)

• Victorian Seniors Festival

• Melbourne Now (NGV)

• Boxing Day Test Cricket

• Carlton Italian Festa

• Raising the Rattler Pole (w Class tram)

• Carols by Candlelight

• Round the Bay in a Day

• Public Art Program

• New Year’s Eve

• Melbourne Celebrations: Lord Mayor’s Commendations (presentation ceremony)

• Vans Warped Tour

• 5 short blasts boat project Docklands • Fruition – Public Art in Royal Park

January

February

March

• Melbourne Celebrations: Sunset Series Events

• Chinese New Year

• Moomba

• White Night Festival

• Midsumma Festival

• Indigenous Arts Festival

• Virgin Australia Melbourne Fashion Festival

• Japanese Summer Festival

• Melbourne Cycle

• Melbourne Food & Wine Festival • Formula1 Australian Grand Prix

• Australian Open

• Sustainable Living Festival • Antipodes Lonsdale Street Festival

• Festival of Live Art

• Australia Day

• Cultural Diversity Week • International Women’s Day Breakfast • Windows by Design

April

May

June

• Dragonboat Festival

• Mother’s Day Classic

• Circus Oz

• Dutch Orange Day

• National Reconciliation Week

• Melbourne International Flower & Garden Show

• Melbourne Winter Masterpieces

• Melbourne International Comedy Festival • Melbourne International Design Week • Buddha’s Day & Multicultural Festival • Run for the Kids • Anzac Day

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OUR COUNCIL

Council governance 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).

The City of Melbourne comprises a lord mayor and deputy lord mayor and nine councillors.

Under the provision of the City of Melbourne Act 2001 (Vic): • Melbourne is not divided into wards • the leadership team is elected separately from councillors • the preferential voting system is used to elect the leadership team and proportional representation is used to elect councillors.

The current Council was elected for a four-year term in October 2012. The next Council election is scheduled for October 2016. More information about local government elections is available from the Victorian Electoral Commission at vec.vic.gov.au.

Council decisions Councillors make decisions at Council meetings and delegated committee meetings. Committee meeting decisions are subject to a ‘referral notice process’ meaning that where fewer than six committee members vote in favour of a motion, or the Chair uses their casting vote, members have the option of referring the matter to the next Council meeting for decision.

Delegations Melbourne City Council’s powers under the Local Government Act or any other Act may be delegated to a Council committee, to a City of Melbourne officer including the CEO, or sub-delegated to a City of Melbourne officer by the CEO. Staff members are accountable to the CEO. The Council and its committees provide policy and staff members make decisions in accordance with that policy.

The exercise of delegation is subject to the Council’s Delegations Policy.

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Councillor conduct The City of Melbourne’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. The code includes guidelines for rules of conduct, decision-making and use of City of Melbourne resources.

It also includes procedures for disclosure of interests and conflicts of interest that go beyond legislative requirements.

All councillors received training on conflict of interest and misuse of position provisions as part of the new Council induction program, which took place in 2012.

They receive regular communication via the City of Melbourne’s Governance Services Manager and the Victorian Government, in regards to updated information, guidance and tools on these areas.

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 – $175,769 • Deputy lord mayor – $87,884 • Councillors – $41,270 Councillors are also provided with a car park, office and executive support.

Expenses Councillors incur expenses in the course of fulfilling their roles. Expenditure is regulated by the Councillor Expenses and Resources Guidelines, as adopted by the Council in November 2013 and consistent with section 75 of the Local Government Act. Councillor expenses are reported in detail every quarter on our website.

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The City of Melbourne has an interest in other entities including: • Sustainable Melbourne Fund – the City of Melbourne holds all units in this trust, a strategic trust established to support and promote sustainable development.

• Regent Management Company Limited – shared with the Victorian Government, the City of Melbourne has a 50 per cent interest in this company, established to manage the historic Regent Theatre in Collins Street, Melbourne.

• MAPS Group Limited trading as Procurement Australia – the City of Melbourne is majority shareholder of this company.

Documents available for inspection The Local Government Act 1989 (Vic) and Local Government (General) Regulations 2004 require us to keep certain statutory registers and documents, most of which can be viewed on the City of Melbourne website, or, in certain cases, on application. Information on how to go about obtaining information and documents from the Council can be found in the ‘About Council’ section of our website.

Participating in Council The City of Melbourne welcomes community and stakeholder 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 meeting agendas. A register of public submissions made under section 223 of the Local Government Act 1989 (Vic) is available for viewing at the City of Melbourne’s offices.

Records of meetings, meeting dates and times and information on how to interact with the Council are provided on our website at melbourne.vic.gov.au.

Subsidiaries and trusts The City of Melbourne has two wholly-owned subsidiaries: • CityWide Service Solutions Pty Ltd – a company established to provide contract services on a competitive basis to local government and other public and private sector clients.

• Queen Victoria Market Pty Ltd – a company established to manage and develop the Queen Victoria Market.

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OUR COUNCIL

OUR councillors In 2013–14 the community was represented by the following office bearers on the Melbourne City Council. The positions held by office bearers in the profiles outlined below reflect membership of those bodies and committees which were operating during this time.

Lord Mayor Robert Doyle

• Council of Capital City Lord Mayors

First elected as Lord Mayor in 2008 and re-elected in 2012

• Shrine of Remembrance Trustees

The Lord Mayor is Chair of meetings of the Melbourne City Council. He is also the Chair of the Future Melbourne (Major Projects) Committee. The Lord Mayor also represents the City of Melbourne on following external organisations:

• Melbourne Art Trust

• Lord Mayor’s Charitable Foundation • Cancer Council of Victoria • United Nations Advisory Committee of Local Authorities • C40 Cities Climate Leadership Group • 2014 Ministerial Mayors Advisory Panel

Deputy Lord Mayor Susan Riley

• Inner South Metropolitan Mayors’ Forum

First served as Deputy Lord Mayor from 2001 to 2004. Elected again as Deputy Lord Mayor in 2008 and re-elected in 2012.

• Melbourne Art Trust

The Deputy Lord Mayor is Deputy Chair of the Future Melbourne (Marketing Melbourne) Committee. The Deputy Lord Mayor also represents the City of Melbourne on the following advisory committees and external organisations: • Audit Committee

• Melbourne Awards Advisory Board • Melbourne Retail and Hospitality Advisory Board • Melbourne Spring Fashion Week Advisory Board • Procurement Australia • Lady Mayoress’ Committee • Business Partner City Network

• Australian Intercultural Society

• Lord Mayor’s Commendations Advisory Group

Councillor Richard Foster

• Family and Children’s Advisory Committee

Elected in 2012

• Homelessness Advisory Committee

Cr Richard Foster is Chair of the Future Melbourne (People City) Committee and Deputy Chair of the Future Melbourne (Transport) Committee.

• Parks and Gardens Advisory Committee

Cr Foster also represents the City of Melbourne on the following advisory committees and external organisations:

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Councillor Rohan Leppert

• Audit Committee

Elected in 2012

• Victorian Local Governance Association

Cr Rohan Leppert is Chair of the Future Melbourne (Arts and Culture) Committee and Deputy Chair of the Future Melbourne (Finance and Governance) Committee.

• Melbourne Music Week Steering Committee • Music Strategy Advisory Committee • Melbourne Symphony Orchestra Board

Cr Leppert also represents the City of Melbourne on the following advisory committees and external organisations:

Councillor Kevin Louey First elected in 2008 and re-elected in 2012 Cr Kevin Louey is Chair of the Future Melbourne (Economic Development) Committee and Deputy Chair of the Future Melbourne (Knowledge City) Committee.

He is also Co-Chair of the Docklands Coordination Committee.

Councillor Stephen Mayne

Cr Louey also represents the City of Melbourne on the following advisory committees and external organisations: • Docklands Steering Group • City Licensing Approvals Forum • Business Partner City Network • Melbourne Retail and Hospitality Advisory Board

• Audit Committee, City of Melbourne

Elected in 2012

• Municipal Association of Victoria

Cr Stephen Mayne is Chair of the Future Melbourne (Finance and Governance) Committee and Deputy Chair of the Future Melbourne (Planning) Committee.

• Melbourne Art Trust

Cr Mayne also represents the City of Melbourne on the following advisory committees and external organisations:

Councillor Cathy Oke First elected in 2008 and re-elected in 2012 Cr Cathy Oke is Chair of the Future Melbourne (Transport) Committee and Deputy Chair of the Future Melbourne (Environment) Committee.

Cr Oke is also the alternate member of the Docklands Coordination Committee.

Cr Oke represents the City of Melbourne on the following advisory committees and external organisations:

Councillor Ken Ong

• International Council for Local Environment Initiatives (ICLEI) Global Executive Committee • ICLEI Regional Executive Committee • Melbourne Music Week Steering Committee • Victorian Road Based Public Transport Advisory Council • Metropolitan Transport Forum • Parts and Gardens Advisory Committee • Committee for Melbourne

First elected in 2008 and re-elected in 2012

• Disability Advisory Committee

Cr Ong is Chair of the Future Melbourne (Planning) Committee, Deputy Chair of the Future Melbourne (Major Projects) Committee. Cr Ong also represents the City of Melbourne on the following advisory committees and external organisations:

• Metropolitan Local Governments’ Waste Forum • Inner Melbourne Action Plan Implementation Committee

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OUR COUNCIL

Councillor Beverley Pinder-Mortimer Elected in 2012 Cr Beverley Pinder-Mortimer is Chair of the Future Melbourne (Marketing Melbourne) Committee and Deputy Chair of the Future Melbourne (Arts and Culture) Committee. Cr Pinder-Mortimer also represents the City of Melbourne on the following advisory committees and external organisations:

Councillor Jackie Watts

• Lord Mayor’s Commendations Advisory Group • Melbourne Awards Advisory Group • Melbourne Music Week Steering Committee • Melbourne Retail and Hospitality Advisory Board • Melbourne Spring Fashion Week Advisory Board • Committee for Melbourne

First elected in July 2011 and re-elected in 2012 Cr Jackie Watts is Chair of the Future Melbourne (Knowledge City) Committee and Deputy Chair of the Future Melbourne (People City) Committee. Cr Watts also represents the City of Melbourne on the following advisory committees and external organisations:

Councillor Arron Wood

• Police Community Consultative Committees - Carlton and Northwest Melbourne District and Central Activities District • Indigenous Advisory Panel • Lord Mayor’s Commendations Advisory Group • Business Partner City Network • Parks and Gardens Advisory Committee • Victorian Local Government Women’s Charter • Parks and Gardens Advisory Committee

Elected in 2012 Cr Arron Wood is Chair of the Future Melbourne (Environment) Committee and Deputy Chair of the Future Melbourne (Economic Development) Committee.

Cr Wood also represents the City of Melbourne on the following advisory committees and external organisations:

• Victorian Adaptation and Sustainability Partnership Ministerial Advisory Committee • Yarra Park Advisory Committee

Committee meetings

Council and committee meeting attendance Melbourne City Council meetings

Commitee meetings Future Melbourne

Inner Melbourne Action Plan

Docklands Coordination

Number of meetings

12

22

4

1

LM Robert Doyle

9

18

••

••

DLM Susan Riley

12

22

••

••

Cr Richard Foster

10

21

••

••

Cr Rohan Leppert

12

22

••

••

Cr Kevin Louey

9

21

••

0

Cr Stephen Mayne

11

21

••

••

Cr Cathy Oke

12

19

••

1*

Cr Ken Ong

11

21

4

••

Cr Beverley Pinder-Mortimer

10

18

••

••

Cr Jackie Watts

12

17

••

••

Cr Arron Wood

11

19

••

••

••Not a member *Alternate member

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Council special committees As well as Council meetings, Melbourne City Council has three special committees: 1.

Future Melbourne Committee (meets twice monthly) This committee has delegated powers, duties and functions directly relating to, or ancillary to, all aspects of our activities. The Future Melbourne Committee’s terms of reference are grouped into 10 themes or portfolios: • Planning • Finance and Governance • Arts and Culture • Major Projects • Transport • Environment • Economic Development

2. Docklands Coordination Committee (meets annually) This committee manages coordination between the City of Melbourne and Places Victoria to ensure an open public discussion in this developing area. The committee, which includes senior representatives from both organisations, meets annually to monitor place management services within the coordination area.

3. Inner Melbourne Action Plan Implementation Committee (meets quarterly) This committee has delegated powers, duties and functions directly relating to, or ancillary to, overseeing implementation of the Inner Melbourne Action Plan (IMAP) in accordance with the agreed three-year implementation program. The committee comprises representatives from the local governments of Melbourne, Port Phillip, Stonnington, Yarra and Maribyrnong. See page 89 for more details on IMAP.

• Marketing Melbourne • Knowledge City • People City All councillors participate in the Future Melbourne Committee.

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OUR COUNCIL

COUNCIL PLANNING framework Elected by the community, the Council is the decisionmaking body that sets the strategic direction and policy of the municipality.

The Council delivers: • The four-year Council Plan, which sets out what the Council will achieve during its four year term to further the community vision.

COUNCIL

REPRESENTING THE NEEDS AND VISION OF THE COMMUNITY

• The Annual Plan and Budget, which describes the Council’s key objectives and activities for each 12 month period.

The administration, headed by a Chief Executive Officer appointed by the Council, delivers the vision of the elected Council.

VISION DEVELOPED

• providing advice to the Council in a timely manner • resourcing the administration to deliver the results sought by the Council • complying with the statutory responsibilities required under legislation • delivering services to the community required under legislation or by the Council

CONTINUAL CONSULTATION

This is done this by:

COUNCIL PLAN 4 YEARS

ANNUAL PLAN AND BUDGET

• implementing the decisions made by the Council.

ADMINISTRATION BRINGING THE COUNCIL’S VISION TO LIFE

VISION DELIVERED

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OUR REPORTING FRAMEWORK

HOW TO READ THE FOLLOWING Sections The following section ‘Performance against our goals’ is divided into eight chapters, reflecting the eight goals that support our vision of being a bold, inspirational and sustainable city, per the Council Plan 2013–2017.

A city for people

A Creative city

A Prosperous city

A Knowledge city

An Eco-city

A Connected City

Resources are managed well

An accessible, transparent and responsive organisation

Each goal chapter describes: • the outcomes the Council aims to achieve within its four-year term, according to the Council Plan 2013–2017 • how well the Council performed over the last year, as measured by the indicators of progress towards the outcomes in the Council Plan • the priorities and actions within those priorities the Council has implemented to achieve the four-year outcomes it seeks, including whether these actions were completed or are ongoing

• Also listed in each chapter are the key strategic activities (KSAs) that relate to the goal (actions of particular strategic importance listed in the Annual Plan and Budget). Further detail on each KSA is provided in our Performance Statement on pages 90 to 101.

Goals one to six include a ‘Future Melbourne snapshot’.

These provide a picture of how the municipality is tracking as a whole against the goals of the Future Melbourne Community Plan. The Future Melbourne Community Plan is broader than the Council Plan, and sets out what the community and Melbourne City Council together aspire to achieve by 2020.

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Performance against our Goals

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GOAL 1 a CITY for people Melbourne will be accessible, inclusive, safe and engaging. Our streets, buildings and open spaces will be alive with activity. People of all ages and abilities will feel secure and empowered, freely participate in their community and lead healthy lives.

OVERVIEW

OUR APPROACH

4 PROJECTED OUTCOMES 8 progress indicators

20 priorities identified 36 actions for 2013-14 delivered via

13

service areas

32

strategies /PLANS

Future Melbourne snapshot How the city measures up as a ‘city for people’ based on: The percentage increase in residents, visitors and workers.

From 2013 to 2014 the daily population increased nearly 3% or 25,000 people and by 2020 is expected to surpass 1 million people in the municipality each day.

The City of Melbourne plays an important role in making sure our city remains a great place for people from all walks of life, whether their reason for coming here is to live, work or study, and whether they intend to stay long term or just a short while. As our city grows, we need to be nimble in responding to our community’s needs, particularly those who are most vulnerable.

Building a ‘city for people’ is about keeping pace with our changing population by having well-planned infrastructure and services, providing safe and welcoming public spaces, and supporting people to stay healthy, socially connected and engaged in their community.

issues and challenges Changing policy and funding priorities at state and federal levels continue to be a challenge. This year, the Victorian Government’s East West Link proposal caused delays to our planned urban renewal in the Arden-Macaulay area.

future directionS We will continue developing liveable, accessible neighbourhoods and spaces in the city, and continue to improve the quality of life for under-represented groups and those most at risk in society.

A major initiative in the coming year includes the development of a master plan for the renewal of the Queen Victoria Market, building on the community feedback we have received.

2.8% increase daily popuLation (2013–14)

Goal 1 service areas: Planning for population growth – Parks and gardens - Building, development and planning – Public health and safety – Libraries – Homelessness – City safety

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

75,000

1,426,000

visitors to Boyd people attended Community Hub 4 premier events

6-star Green Star building - Docklands Library

Redesignation as an International Safe Community

5th

birthday – Multicultural Hub

Summary of 2013–14 actions Detail about this year’s city for people actions and activities can be found later in this chapter.

28

complete

2

ongoing

2

discontinued

Key Strategic Activity 1a – Homelessness Strategy Why this KSA?

what did we do?

Next steps are…

Homelessness is a complex problem One key initiative included Implement our new of concern to all. To respond to the partnering with Central Homelessness Strategy needs of people experiencing or City Community Health to 2014–17, which was at risk of homelessness we must deliver an outreach program developed with the provide the right services, to people living in rooming input of 100 partners build strong partnerships houses. Details page 91. and people experiencing and foster a culture homelessness. of inclusiveness.

Key Strategic Activity 1b – Queen Victoria Market Renewal Engagement Why this KSA?

what did we do?

Next steps are…

As our city’s flagship, the Queen Victoria Market is at the centre of a major preservation and renewal effort so that its offerings continue to be enjoyed by generations to come.

We sought community Release the draft master views through an extensive plan by the end of 2014 engagement process over with a view to finalisation two phases, with more mid-2015. For more than 900 participants in information, or to get November 2013 and a involved, visit Participate further 700 in May 2014.

Melbourne at participate.

Details page 91. melbourne.vic.gov.au

Family, children and youth – Recreation and leisure – Street cleaning and waste management – Aged and inclusion – Sustainable environmental management – Urban policy and design

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: A well-planned municipality for a growing and diverse population

INDICATOR

INDICATOR

The proportion of the resident population that lives within a 15-to-20 minute walk (800m to 1 km radius) of community facilities, per year.

The proportion of the resident population that lives within a 300 metre walk to open space.

89.4%

96.3%

OF residents live within AN

800 metre walk

OF residents live within A

300 metre walk

of community Facilities

of open space

Our Progress Eighty-nine per cent of the estimated population lives within a 20 minute walk or 800 metre radius of community facilities, namely libraries and community hubs (i.e. buildings that share space and resources for public use, excluding recreation centres and neighbourhood houses).

Ninety-six per cent of the estimated population lives within a 300 metre radius of open spaces, including parks and reserves, sports fields and outdoor recreation areas, squares and publicly accessible private outdoor space.

JJ Holland Park completed At over 10 hectares, JJ Holland Park is Kensington’s largest open space. A tree planting ceremony in May marked the finishing touches to the park’s five-year transformation. The park now boasts more space, new trees, the world’s first AFL/Cricket Australia-standard synthetic sports field, a refurbished pavilion, new paths, jogging track, and an upgraded BMX track.

projected OUTCOME: People who are informed and supported to be healthy

INDICATOR

INDICATOR

The proportion of people using selected City of Melbourne services who reported the information they received from those services helps them to lead a healthier lifestyle.

The proportion of people using selected City of Melbourne services who reported the support they received from those services helps them to lead a healthier lifestyle.

88.6%

of customers surveyed believe

THE information received from our services helps them be healthier

95.1%

of customers surveyed believe

THE support

received from our services helps them be healthier

Our Progress Of customers surveyed who used the City of Melbourne’s services (including immunisation, maternal and child health services, parent support, home and community care programs, child care services, recreation and leisure centres)

nearly 89% reported the information they received helped them lead a healthier lifestyle, and 95% reported the support they received helped them lead a healthier lifestyle.

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OUR PERFORMANCE IN 2013–14

projected OUTCOME: People who participate and feel connected

INDICATOR

90.7%

of City of Melbourne program participants surveyed feel more a

part of their community

The proportion of service users who feel more a part of their community through participation in selected City of Melbourne programs per year.

Our Progress The significant majority of customers surveyed who participated in our programs (including planned activities, child care services, recreation and leisure centres, student programs and parent support) reported they felt more a part of their community (excluding those who responded ‘don’t know’).

Men’s Shed opens in the CBD The newly opened CBD Men’s Shed is a first for residents of the inner-city, Southbank and Docklands. With City of Melbourne funding over five years, the shed will allow locals to repair toys for the Royal Children’s Hospital, get information about a healthy lifestyle and take classes in cooking, digital photography and woodworking.

projected OUTCOME: Safe, high-quality and well-used public spaces and places

INDICATOR

INDICATOR

The proportion of city users satisfied with the quality of City of Melbourne public spaces and places, annually.

The proportion of city users satisfied with the safety of City of Melbourne public spaces and places, annually.

76.6%

of city users surveyed are

satisfied with the quality of our public spaces

96.2% 56.6%

(day)

(NIGHT)

Our Progress The majority of city users surveyed reported satisfaction with the quality of the city’s public spaces, based on several quality aspects of public open spaces, including sun and shade, sights and sounds, fresh air, greenery, presence of art and furniture, accessibility and ability to enjoy using the space.

Most (more than 96%) of people surveyed felt safe alone in public spaces during daytime, whereas just more than half (approximately 57%) reported feeling safe alone in public spaces at night.

‘Beyond the safe city’ social innovation forum Around 150 local residents, business owners, academics, students and professionals, along with visitors from across Australia, came together to explore how the municipality might go beyond being a safe city to become the most vibrant, safe and welcoming city in the world.

Their insights are helping inform our next Safer City Strategy for 2014–17.

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Our 4-year priorities are...

Begin implementing Melbourne’s Urban Renewal Areas plan

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Our 2013–14 focus was…

• Continue the advocacy, research, design and policy projects identified in the Arden Macaulay, City North and Southbank structure plans

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Over the next year we will...

• Complete planning scheme amendment C190 Arden-Macaulay • Draft a Lorimer structure plan for consultation • Draft a Moonee Ponds Creek master plan for consultation (subject to the East-West Link) • Prepare a West Melbourne structure plan for consultation and trial new pre-planning consultation approach

Provide community infrastructure commensurate with the municipality’s growing population and in anticipation of rapid growth in urban renewal areas

• Complete community consultation and commence design of North Melbourne Community Centre • Complete construction and fit out of the Docklands Library and Community Centre

• Build the Docklands Community Boating Hub and Family Services Centre • Carry out improvements to the park area between Collins and Bourke Streets as part of the Docklands Park project including

• Commence development of Docklands Community Boating Hub and Family Services Centre

– adaptation of the existing wetland along Collins Street into a new activity space

• Commence the construction of Kathleen Syme Library and Community Centre

– additional seating

• Review and revise the community infrastructure framework including the development of a strategy for cost effective family, children’s and aged services infrastructure and for renewal and expansion of recreation services • Complete additional capital works for and commence operations in Kensington Town Hall • Complete initial community engagement for Queen Victoria Market precinct renewal including project announcement and gaining input and agreement to vision (KSA 1b)

– improved path access – additional tree-planting • Open the Kathleen Syme Library and Community Centre • Install IT and furniture infrastructure and open Kensington Town Hall • Identify short and long-term options for City Library • Complete the community engagement and Precinct Renewal Master Plan for Queen Victoria Market • Work with Inner Melbourne Action Plan councils (IMAP) to develop a new IMAP plan for the region

Advocate to and cooperate with the Victorian Government in planning for new government schools

• Develop true understanding of current and future needs for schools within the City of Melbourne

• Work against this priority is included in our regular business

Facilitate private and public development of a diverse and more affordable housing stock to accommodate population growth

• Complete a City of Melbourne Housing Strategy

• Work with the Office of the Victorian Government Architect to develop the Victorian Apartment Design Standards, as part of our Housing Strategy implementation

Protect the community from passive smoking by expanding smoke-free areas

• Further implement smoke-free public spaces

• Implement up to six opportunities for smokefree public spaces for consideration

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Our 2013–14 focus was…

Over the next year we will...

Develop an electronic gaming machine policy for the municipality

• Develop an electronic gaming machine policy for the City of Melbourne

• Work on the policy will continue

Increase community participation in physical activity through our sport and recreation services

• Develop targeted physical recreation activities for groups with low physical activity

• Deliver phase one of the work related to sporting and park facilities in the Council’s Memorandum of Understanding with the Linking Melbourne Authority to reduce the impact from the proposed East-West Link • Complete Carlton Baths stage two design and tender phase for new filtration plant, toddler pool and landscaping • Develop a plan to provide more outdoor gym equipment and promote its use to the community • Develop and deliver physical recreation programs and services targeting underrepresented groups and those with low physical activity, including by carrying out a gender equity audit of selected Council facilities

Support the community to access nutritious and sustainable food through our Food Policy

• Implement the food policy

Address gender and equity issues in all new Council strategies and plans

• Draft and implement a communications plan informing managers of the need to address gender and equity issues in all new Council strategies and plans

• Support urban food production and encourage the purchase of local food

• Build knowledge and skills to improve food security for all people in the municipality, as part of our Food Policy implementation

• Work against this priority is included in our regular business

Strengthen partnerships • Complete and begin implementation to prevent crime and of a 2013–16 strategy for a safer city improve community safety • Review and advocate for improvements in safety standards for rental housing

• Advocate to the State Government for better late night (after 1am) and early morning transport options in the central city

Apply crime-preventionthrough-environmentaldesign principles to increase safety in public spaces

• Implement crime-prevention-throughenvironmental-design improvements at Enterprize Park, King Street, Swanston Street, Flinders Street and North Melbourne, as per last year’s audit

• Undertake an audit of the safety of public spaces to guide priority setting and work on crime prevention through design • Consider CCTV placement following recommendation by Victoria Police

• Consider the need to improve lighting in the Arden Street precinct, including the area used by The Huddle youth project Support the prevention of violence against society’s most vulnerable people with a focus on women and children

Discontinued

• Complete and implement a Preventing Violence Against Women Strategy and Action Plan which will include options to improve accommodation (refuge) for women and children

Ongoing

• Identify safe, welcoming and inclusive spaces and service sites in the municipality for women and children experiencing or at risk of violence

Completed

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Our 4-year priorities are...

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Our 2013–14 focus was…

Provide programs and • Support the development of a Men’s Shed events for people to association which facilitates the development participate in community of men’s sheds across the municipality activities and civic life and • Include in the community or recreation grants connect with each other program funds and guidelines to support community sports events

AcD

Over the next year we will...

• Investigate opportunities for involving local schools in civic events such as citizenship ceremonies

• Develop a register of low-cost spaces for community meetings and events • Research options for connecting international students with locals through social media networks, residents groups and other local organisations • Research feasibility of maximising opportunities for community members to attend events that have City of Melbourne grant funding, especially individuals who would not otherwise attend such events Celebrate cultural and language diversity through a range of cultural activities

• Implement priorities from the reconciliation and indigenous heritage action plans including the Tunnerminnerwait and Maulboyheenner monument

• Develop the Indigenous Heritage Action Plan 2015–2018

• Contribute to the welcoming and support processes for new refugees

• Review the Refugee Welcome Zone Declaration and recommit to activities that fall within local government’s responsibility

• Develop and implement the Reconciliation Action Plan 2014–2017

• Renew the City of Melbourne Multicultural Policy or draft a Cultural Diversity Statement containing an acknowledgment and recognition of the contribution refugees and asylum seekers make Provide youth, aged and family-focused services for a growing community

• Further develop the hub model of service delivery to families, children and youth

• Work against this priority is included in our regular business

Facilitate the sufficient availability of quality childcare services in local areas and plan for future demand

• Identify supply and demand for childcare and develop a plan

• Implement the supply and demand plan for child care

Support the social and economic development of Aboriginal and Torres Strait Islander people

• Explore opportunities to support Aboriginal and Torres Strait Islander social enterprises and business development

• Work against this priority is included in our regular business

Contribute to developing sustainable pathways out of homelessness

• Complete initiatives from the Homelessness Strategy which contribute to sustainable pathways out of homelessness (KSA 1a)

• Work with the homelessness sector to develop a register of rough sleepers in the central city

• Discontinued action: Progress Westward Place homelessness accommodation with the Salvation Army

• Identify the feasibility of 24-hour safe and inclusive spaces and medium and long-term housing options in the central city using the following models: 1) short term accommodation; 2) housing-first; 3) women-specific accommodation

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Our 2013–14 focus was…

Over the next year we will...

Improve the municipality’s • Complete and implement an social and physical ‘age friendly city’ strategy accessibility for all ages • Review and revise the disability action plan

• Implement high priority actions identified in the Melbourne for All People Strategy

• Review and revise the children’s plan Expand and improve public spaces through our Open Space Strategy with a particular focus on areas designated for rapid growth

• Commence implementation of the Open Space Strategy • Identify short-term opportunities to lease or use space for public parks • Discontinued action: Progress HighlineSandridge Bridge proposal • Undertake ‘Places for People’ analysis

discontinued ACTIONS Two actions were discontinued this year due to decisions by third parties which meant their achievement was not possible.

Discontinued

Ongoing

• Complete the Neil Street and Return to Royal Park projects and progress the Eastwood/ Rankins, Hawke/Adderley and University Square Precinct projects as part of the Open Space Strategy implementation • Publish the results of the Places for People 2014 study and case studies

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Completed

‘Moonlight synchro’ at the City Baths An estimated 9000 people walked through the doors of Melbourne City Baths over the 12-hour White Night event to witness a spectacular display of ‘Moonlight synchro’ – synchronised swimming in the lap pool to music and lighting. The show proved one of the most popular of White Night.

2014 Craig Silitoe Courtesy of Victorian Major Events Company

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GOAL 2 a Creative city Melbourne will be a place that inspires experimentation, innovation and creativity and fosters leaders of ideas and courage. It will build upon long-standing heritage and embrace Aboriginal and Torres Strait Islander history and culture.

OVERVIEW

OUR APPROACH

5 PROJECTED OUTCOMES 5 progress indicators

7 priorities identified 21 actions for 2013-14 delivered via

5

service areas

12

strategies /PLANS

Future Melbourne snapshot How the city measures up as a ‘creative city’ based on: The size of the creative sector: people employed in the creative industries as a proportion of total employment in the municipality.

Historically, the creative sector makes up about 4% or less of the city’s total employment.

The City of Melbourne recognises that artistic expression, risk-taking and the new ideas that flow from it are part of the lifeblood of a truly great city. Just as we seek to support new forms of cultural expression, we also recognise the importance of the city’s heritage as a major contributor to our shared cultural identity.

Building a ‘creative city’ is about supporting artists, creating opportunities for everyone to share in creative activity, growing our reputation as Australia’s art and cultural capital, and protecting our cultural and natural heritage for the enjoyment of current and future generations.

issues and challenges Helping artists build sustainable careers and gain access to the right support and appropriate spaces in the city continues to be a challenge.

Part of catering for a changing, growing city is also ensuring our programs and activities are socially inclusive and enable people of diverse backgrounds to have access to the arts and to creative outlets.

future directionS We will continue to provide support, funding, spaces and opportunities for artists and organisations, and implement key planning and Indigenous heritage priorities.

A major initiative in the coming year is to grow the Arts House Program and create a strategic plan for the future of Arts House.

3.4%

creative sector size (2012, based on latest available data)

Goal 2 service areas: Arts and cultural policy, planning, infrastructure, asset management and programming – Building, development and planning

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OUR PERFORMANCE IN 2013-14

Performance Summary KEY HIGHLIGHTS

Paperless online arts funding system introduced

290,000

47,500

Creative Spaces web visitors

74,000

Melbourne Music Week attendees

Indigenous Arts Festival attendees

13,000

artists employed through grants

Summary of 2013–14 actions Detail about this year’s creative city actions and activities can be found later in this chapter.

15

complete

6

ongoing

Key Strategic Activity 2 – Arts Strategy Why this KSA?

what did we do?

Next steps are…

Access to and participation More than 1000 people participated Implement our in creative expression in our comprehensive community strategic commitments through the arts and engagement process to develop that support our vision cultural experiences a new arts strategy through public for a bold, inspirational, is an important part forums, discussions and online sustainable city and of individual and polls. The Arts Strategy 2014–17 achieve our goal community was endorsed by the Council in as a ‘creative city’ well-being.

June 2014. Details page 92. through the arts.

City Gallery Postcode 3000: A city transformed The exhibition celebrated how, since the early 1990s, the ‘marvellous’ has been put back into Melbourne with a return to city living and a revitalised city experience while also acknowledging future challenges for the city. Some 16,263 visitors attended the exhibition, part of the City Gallery’s annual program of exhibitions showcasing the city’s civic history.

Urban policy and design – International and national connections – Arts participation and activation

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOMES: Artists are supported to present and work locally Artistic enterprises choose to base themselves in the municipality

14,052

artists sought support from the Arts and Culture branch this year

INDICATOR The proportional increase in the number of artists and creative enterprises seeking support from the City of Melbourne to work or base themselves in the municipality.

Our Progress This year’s result represents the baseline number of artists seeking support. Proportional change will be shown in future reporting years.

The Inaugural Festival of Live Art (FOLA) FOLA was presented over 17 days in March, the outcome of a partnership between Arts House, Footscray Community Arts Centre and Theatre Works. A particularly proud achievement was the Arts House season which supported 115 artists in 28 events over four days, and attracted 12,000 participants to the North Melbourne Town Hall and Meat Market.

projected OUTCOME: People participate in creative expression and attend arts and cultural activities

37%

of participants in our arts and cultural activities reported engaging in these for the

FIRST TIME

Indicator The proportion of people participating in selected arts and cultural activities provided by the City of Melbourne who report engaging in these for the first time.

Our Progress More than a third of 5670 people surveyed who participated in selected City of Melbourne activities (including through ArtPlay, the Arts House Program, Melbourne Conversations, the Organ Program and Arts Participation Program) reported engaging in these for the first time.

5 Short Blasts: Docklands ‘5 Short Blasts’ unveiled the sounds and stories of our marine environment and city’s waterfronts. Passengers on five quiet electric boats participated in artist Madeleine Flynn and Tim Humphrey’s creative project, exploring the city’s waterways, ports, jetties and harbor-life. The project won an ‘Outstanding Hybrid Work’ Green Room Award.

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OUR PERFORMANCE IN 2013-14

projected OUTCOME: A growing reputation as the centre for vibrant artistic and cultural life

93.4%

INDICATOR of people surveyed think Melbourne is an

artistic and cultUral city

The proportion of survey respondents who agree Melbourne is an artistic and cultural city.

Our Progress A significant majority of residents, workers, visitors and students surveyed agree the City of Melbourne is an artistic and cultural city.

ArtPlay 10th birthday ArtPlay has hosted more than 100,000 children and 1,000 artists since opening in 2004, and on 2 March 2014, ArtPlay celebrated its 10th birthday with more than 600 families.

Children involved with the MSO ArtPlay Ensemble throughout the past decade composed and performed a piece of music for the event.

projected OUTCOME: The municipality’s cultural and natural heritage is protected for the appreciation of future generations

INDICATOR

INDICATOR

The percentage increase in the number of exceptional trees in the Exceptional Tree Register.

The percentage increase in the number of buildings and places with statutory heritage protection.

1.2% increase

178

The number of

registered trees

in 2012-13

172 7419 in 2013-14

in 2012-13

7506

the number of protected heritage buildings and places

in 2013-14

Our Progress

Our Progress

No trees were added to the Exceptional Tree Register in 2013–14 as the planning scheme amendment to protect trees on the Exceptional Tree Register had not been passed. This figure may change in the future when the planning scheme amendment is passed and adequate resources are available to increase tree protection.

Eighty-seven more properties were added in the Heritage Register from 2012–13 to 2013–14.

Melbourne Indigenous Arts Festival The 74,000 attendees of the second Melbourne Indigenous Arts Festival in February were treated to a lively offering of theatre, dance, music and visual arts and crafts.

The festival featured an expanded program over 12 days, with more than 42 events held across 18 venues.

2014 James Henry Koorioboree, Melbourne Indigenous Arts Festival 2014

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Our 4-year priorities are...

Develop sustainable cultural physical infrastructure and programming

Increase access to and participation in creative expression and arts and cultural experiences, including music

Strengthen national and international artistic and cultural connections

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Our 2013–14 focus was…

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Over the next year we will...

• Finalise discussions with the State Government regarding the future ownership and management of the Meat Market

• Review and develop sustainable operating models for our current and future cultural infrastructure and programming

• Identify opportunities for the development of cultural infrastructure in partnership with the private and public sectors

• Develop a cultural infrastructure framework related to the Community Infrastructure Framework to include the:

• Investigate the feasibility of an independent arts precinct in North Melbourne

– potential conversion of 602 Little Bourke Street into a mixed-use creative space

• Develop a framework for Public Art (permanent and temporary) which may incorporate opportunities for private sector involvement and include its relationship to open space and future infrastructure developments in the city

– feasibility of an international live/work artists’ facility

• Develop the City of Melbourne 2014–17 Arts Strategy (KSA 2)

• Upon adoption of the Arts Strategy, identify and implement 2014–15 components

• Implement the City of Melbourne Artist in Residency program

• Evaluate and review the 2014 Melbourne Indigenous Arts Festival and provide recommendations to the Council regarding its future

• Build the profile and programming of the Melbourne Indigenous Arts Festival • Establish a Music Strategy Advisory Committee of industry and non-industry backgrounds to (a) review the 2010 City of Melbourne Music Strategy with a view to expanding its scope and (b) provide ongoing advice on the City of Melbourne’s relationship with musicians, live music venues and music public programming

• Implement the renewed City of Melbourne Music Strategy and continue to support the Music Strategy Advisory Committee

• Develop a planning policy to encourage the development and operation of live music venues

• Deliver the first of the Melbourne-designed pavilions as part of the Melbourne Pavilions Program

• Implement the pilot Greenie in Residence program in Melbourne in partnership with the Australia Council

• Partner with the State Government in the establishment of a City of Literature role

• Actively participate in and contribute to the development of a national Participatory Arts Incubator, led by Deakin University.

• Implement a planning scheme amendment to encourage the development and operation of live music venues • Explore the Yarra Trams proposal for an ‘arts line’

• Develop and run the Biennial Dance Massive Festival • Deliver the biennial Going Nowhere international sustainable arts festival

• Deliver the Osaka/Signal arts partnership project • Develop a creative partnerships action plan that builds Council’s connections and presence nationally and internationally • Partner with the State Government in the establishment of a City of Literature Office role Support emerging artists

• Encourage emerging artists to develop and test new ideas through the delivery of the CultureLab initiative through the Arts House Program

• Grow the Arts House Program and create a strategic plan for the future of Arts House

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OUR PERFORMANCE IN 2013-14

Our 4-year priorities are...

Contribute to artistic, cultural and heritage outcomes for the Aboriginal and Torres Strait Islander people

Our 2013–14 focus was…

• Implement the City of Melbourne’s Indigenous Heritage Action Plan

Over the next year we will...

• Implement the Indigenous Heritage Action Plan 2012–2015 priorities including: – implement the final stages of the process to publicly mark and acknowledge the events related to the Tunnerminnerwait and Maulboyheener story and its connection to the history of Melbourne – develop a GIS mapping tool that could support the further development of self-guided tours and/or a walking trail to celebrate Aboriginal culture in the municipality

Implement the Heritage Strategy

• Commence implementation of the City of Melbourne Heritage Strategy • Complete the planning Scheme Amendments C186 Central City Heritage, C197/198 City North Heritage, C206/207 Arden Macaulay Heritage and the Kensington Heritage Review • Complete Planning Scheme Amendment C211/212 to protect trees in the Exceptional Tree Register • Review Melbourne Planning Scheme local policies 22.04 Heritage Places within The Capital City Zone and 22.05 Heritage Places outside the Capital City Zone • Set priorities for the Melbourne Heritage Restoration Fund, develop its funding model and ensure it supports the objectives of the Heritage Strategy

Build on the municipality’s • None (work against this priority is included in our regular business) cultural heritage in creative and dynamic ways, ensuring appreciation by future generations

• Complete the heritage planning scheme amendments C198 City North Heritage, C207 Arden Macaulay Heritage and C215 Kensington Heritage • Finish reviewing the planning scheme heritage policies 22.04 Heritage Places within the Capital City Zone and 22.05 Heritage Places outside the Capital City Zone • Complete a Bourke Hill Precinct heritage review and coordinate results with the State Government’s Bourke Hill Precinct planning review • Complete the planning scheme amendment C211/212 Exceptional Tree Register • Investigate the establishment of a City of Melbourne heritage information portal that provides access to all Melbourne’s heritage information repositories including the City of Melbourne’s own collection • Work against this priority is included in our regular business

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Ongoing

Completed

CREATIVE SPACES Artists looking for space in which to produce, develop or perform creative work have been flocking in the hundreds of thousands to the City of Melbourne-inspired website, Creative Spaces. This is part of our broader Creative Spaces program that brokers available space and develops affordable space for artists who need it.

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GOAL 3 a prosperous city Melbourne will have a global focus with first-rate infrastructure and services, a highly skilled workforce and affordable business accommodation. It will share knowledge, mentor emerging businesses, collaborate and attract global investment and visitors.

OVERVIEW

OUR APPROACH

2 PROJECTED OUTCOMES 2 progress indicators

7 priorities identified 17 actions for 2013-14 delivered via

The City of Melbourne supports entrepreneurs and enterprises, small and large, to thrive and prosper in the local and global economy, in turn helping to create a high standard of living for all Melburnians. The changing face of local businesses, coupled with changes abroad in the global marketplace, new digital technology and consumer behaviour, require us to become agile in supporting the city’s continued prosperity.

Building a ‘prosperous city’ is about supporting a sustainable and resilient municipal economy, as well as fostering a globally connected municipal economy by strengthening partnerships locally, nationally and globally.

issues and challenges This year saw significant energy and resources devoted to the development of an Economic Development Framework, the new Fitzroy Gardens Visitor Centre, preparation for the International Aids Conference as well as the implementation of the Western Gateway Visitor service trial.

future directionS

7

service areas

We will continue to seek growth opportunities, invest in the right infrastructure and services, support our local economy and workforce, and position the city as a successful business, education and tourist destination.

6

strategies /PLANS

A major initiative will be to gain greater economic benefits from cruise ship and business event visits via our City Yield Program.

Future Melbourne snapshot How the city measures up as a ‘prosperous city’ based on: Business growth: total number of businesses in the municipality.

The total number of businesses reveals an upward trend from almost 14,000 businesses in 2006 to more than 18,000 businesses in 2014.

18,221

total businesses in the municipality (At 30 June 2014)

Goal 3 service areas: Business – International connections – City promotion and tourism

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

80%

increase in business grant applications

$100,000

awarded to 25 business events sponsorship recipients

4

key business events bids won in 2013–14

60th

anniversary – MoombA

Music Strategy Advisory Committee formed

Summary of 2013–14 actions Detail about this year’s prosperous city actions and activities can be found later in this chapter.

17

complete

2

ongoing

Key Strategic Activity 3 – Create a four-year Economic Development Framework Why this KSA?

what did we do?

Next steps are…

Supporting businesses to capitalise We produced Building Prosperity Use the framework to on future opportunities in key Together, a framework that guide our economic industry sectors is an important addresses the municipal economy development part of how the City of and articulates how the City of activities, including Melbourne helps the city Melbourne, together with the a renewed approach respond to economic business community, will build to our international opportunities and prosperity for the longer term engagement activities. challenges. while preserving the city’s identity and liveability. Details page 93.

Melbourne and Osaka 35th anniversary 2013 A visit by a delegation from the City of Osaka, led by the Vice Mayor and the President of Osaka City Council marked the 35th anniversary of the Melbourne Osaka sister city relationship. Both sides exchanged information on issues of shared interest including on sustainability issues and urban renewal.

Building, development and planning – Events – Local laws compliance – Urban policy and design

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

Melbourne Retail and Hospitality Strategy The City of Melbourne and Victorian Government produced the first combined Melbourne Retail and Hospitality Strategy 2013–2017. The strategy recognises the significance of the retail and hospitality sectors that contributed a combined $8.7 billion or 10% to the municipality’s $86.7 billion economy in 2012.

projected OUTCOME: A sustainable and resilient municipal economy

62.6%

average satisfaction rating by businesses surveyed on our contribution to local

economic resilience

INDICATOR Business sentiment about the City of Melbourne’s contribution to the resilience of the municipality’s economy, per year.

Our Progress The score of 62.6 out of a possible 100 reflects the average satisfaction rating given by businesses surveyed about a broad range of City of Melbourne activities that support local economic resilience. Respondents were the most satisfied with street cleaning and waste collection and least satisfied with the management of parking.

Business Partner City members flock to Melbourne The City of Melbourne hosted 10 member cities from the Business Partner City network in September. Highlights included the ‘Design in the Asian century’ business forum, held at RMIT University’s design hub, where a panel of experts discussed the link between good design, productivity and innovation.

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OUR PERFORMANCE IN 2013–14

projected OUTCOME: A globally connected municipal economy

4.6%

increase in trade connections made through our business matching activity

INDICATOR The proportional change in trade connections made through business matching and information sessions with in-bound business delegations, per year.

Our Progress From 2012–13 to 2013–14 there was an increase of nearly 5% in the number of trade connections made by the City of Melbourne (defined as introductions between local and overseas businesses and governments).

Business mission to Japan and China In March 2014, the Lord Mayor, Councillor Kevin Louey and Councillor Beverly Pinder Mortimer led a 15-strong delegation representing the bio-technology, clean technology and sustainable urban design sectors to Osaka, Tianjin and Beijing. Delegates participated in one-on-one business matching and networking events, benefiting from long-standing sister-city connections with Osaka and Tianjin.

Volunteers In addition to our paid workforce, we also have a volunteer workforce of approximately 400 individuals. Our volunteers, collectively known around the world as the ‘red coats’, work within our Tourism Branch across six programs: • • • • • •

Melbourne Visitor Centre Melbourne Visitor Booth City Ambassador Program Melbourne Greeter Service Annual cruise ship season Cooks’ Cottage and the soon to open Fitzroy Gardens Visitor Centre.

The work of our volunteers in encouraging visitors to see more, do more, stay longer and spend more in the city is highly valued by our businesses, arts and cultural institutions and attractions. Extensive training and ongoing support is provided to all volunteers to enhance their general knowledge of all things happening in our city.

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Our 4-year priorities are...

Support innovative and emerging sectors

PrM

Our 2013–14 focus was…

• Deliver a four-year economic development framework (EDF) that will support and grow the key, innovative and emerging sectors that contribute to Melbourne’s economic, social and environmental sustainability (KSA 3) • Deliver retail and hospitality strategies • Implement outcomes from the review of Small Business Grant (SBG) program guidelines

AcD

Over the next year we will...

• From the Economic Development Framework, identify two key priority areas and develop/deliver business improvement activities • Work with stakeholders to improve the City Yield Program to gain greater benefits to the city from business event delegates and cruise ship passengers

• Investigate opportunities for supporting the development of a Melbourne-based technical workshop with a tertiary institution and other key stakeholders Support businesses • Develop and deliver a business-to-business through marketing, events campaign to promote opportunities (including micro grants) to assist the creation of content and tourism activities including a special • Implement a four-year Destination Marketing program for Docklands Strategy to ensure Melbourne’s prominence locally, nationally and internationally • Produce an annual city activation program that integrates Council’s funding and support of events, cultural activities and marketing programs • Develop and implement programs to assist visitor orientation and engagement of the city including visitor facilities, way finding and information services • Establish visitor information centres at Southern Cross Station, Fitzroy Gardens Visitor Centre • Develop strategic plans for all premier events that drive social and economic benefits.

Includes growth strategy for Melbourne Music • Implement findings of Melbourne Business Precinct program review • Work with the State Government to explore the concept of an ‘art tram’ Build on city-to-city connections and identify opportunities in BPC member cities within the ASEAN region for the municipality’s businesses

• Develop ASEAN statement with a focus on Business Partner City (BPC) member cities, in the context of the International Engagement Framework

• Explore opportunities to engage and educate businesses in digital content development as part of the Destination Marketing and Retail and Hospitality Strategy • Attract events and people to Docklands by: – raising awareness of the Events Partnership Program – promoting the Melbourne Star – working with the Docklands Chamber of Commerce and Destination Docklands Ltd – extending City of Melbourne and other events to Docklands where appropriate and beneficial to the overall event concept • Develop retail focused events and activities as part of Melbourne Spring Fashion Week and a Melbourne Music Week sponsorship strategy • Develop a café licensee operating partnership at the Fitzroy Gardens Visitor Centre • Improve the capacity of consumers to provide content as part of the Destination Marketing Strategy

• Implement the actions from the ASEAN statement for Business Partner Cities in the context of the International Engagement Framework

• Evaluate Council’s role in leading international business missions • Deliver Business Partner City (BPC) Roundtable in Melbourne

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Our 2013–14 focus was…

Over the next year we will...

Improve retail and hospitality experience in laneways and shopping strips through good design, cultural and artistic activities and infrastructure

• Leverage existing laneway programs and identify further laneway opportunities

• Identify five new laneways across the central city for improvement as part of the Love Your Laneway Program

Make information about the municipality available to businesses and investors

• Develop online capacity to communicate and consult with businesses and potential investors

• Work against this priority is included in our regular business

Support the development of a vibrant social enterprise sector

• Implement outcomes from the review of Social Enterprise (SE) and Micro Business (MB) grant program guidelines

• Work against this priority is included in our regular business

• Implement Corporate Social Responsibility initiatives (including social enterprise, sustainability and reconciliation actions plan objectives) as part of Procurement Strategy Support the development • None of and access to a Melbourne waterfront, and support the local port status of Victoria harbour

• Complete the Melbourne City Marina Facility fit-out • Complete the feasibility work for the boating ramp as part of the Waterways Strategic Plan • Continue to advocate with Places Victoria to advance the: – Harbour Esplanade Masterplan – Metropolitan Fire Brigade facility – marine services facility, Bolte Precinct, Docklands • Develop a program or processes to raise awareness of accessibility issues amongst Melbourne retailers through the Melbourne for All People Strategy

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Ongoing

Completed

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GOAL 4 a knowledge city Melbourne will be a place where ideas and talent thrive, based on a well-resourced education and research sector and knowledge networks. It will have a dynamic online culture to amplify our knowledge capability.

OVERVIEW

OUR APPROACH

4 PROJECTED OUTCOMES 4 progress indicators

7 priorities identified 16 actions for 2013-14

service areas

Building a ‘knowledge city’ is about capitalising on our knowledge-city credentials to foster new businesses and grow our networks of talent. This includes supporting international students to have a positive experience, investing in our infrastructure, and facilitating knowledgesharing between people and businesses.

issues and challenges A key challenge has been to determine the most effective roles the City of Melbourne can play to support the knowledge sector. The draft Knowledge Strategy defined five roles to be explored: promoter, leader, partner, enabler and facilitator.

delivered via

7

The City of Melbourne supports those at the forefront of knowledge and innovation to ensure the fruits of that knowledge benefit the whole city. We know that tomorrow’s success depends on growing our capacity today to participate in the currency of ideas. We also recognise that participation in lifelong learning is intrinsic to individual wellbeing and the growth of ideas that enrich our society as a whole.

5

future directionS

strategies /PLANS

Future Melbourne snapshot How the city measures up as a ‘Knowledge City’ based on: Skilled and talented professionals: workers employed in highly skilled occupations in the municipality as a proportion of the total workforce.

This reflects a small decline in the proportion of residents in highly skilled occupations from 49% in 2009.

We will seek feedback from the knowledge sector on these roles and continue to support the sector through the implementation of our Knowledge Strategy. A major initiative in the coming year includes the expansion of knowledge-related events in the municipality.

47.9%

Residents employed in highly

skilled occupations (2011, based on latest available data)

Goal 4 service areas: Libraries – Visitor and resident information – Building, development planning

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

> 1 million library visitors, 92% of customers satisfied with our services

> 10,000 people attended Melbourne Knowledge Week

60,000

new items at Library at the Dock

2

funded expert visits to Melbourne

3X

Melbourne named ‘Most Admired Knowledge City’ for 3rd time

Summary of 2013–14 actions Detail about this year’s knowledge city actions and activities can be found later in this chapter.

15

complete

1

ongoing

1

discontinued

Key Strategic Activity 4 – Library at the Dock Why this KSA?

what did we do?

Earlier extensive community We built Library at The Dock, engagement in Docklands through a partnership with reinforced the importance of Lend Lease and Places Victoria. community facilities and the The library and community need for more comfortable, centre was opened by the Lord functional and intimate Mayor and Victorian Premier, public spaces and and began operating in May amenities.

2014. Details page 94.

Next steps are…

Allow members of the community and visitors to take advantage of the offerings of the new library.

International student volunteer program Fifteen international students graduated after a six-month placement with the City of Melbourne’s City Ambassador Program. The program provides students with workplace experience while developing their knowledge of the city, and the students bring diversity, language skills and a passion for learning. Twelve have continued to volunteer following graduation.

Urban policy and design – International connections – Research – Information technology

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: International students to have a positive experience

INDICATOR

89.4%

of student participants in our programs had a

MORE POSITIVE EXPERIENCE OF MELBOURNE

The proportion of student service users who feel their participation in selected City of Melbourne programs increased their positive experience of Melbourne, per year.

Our Progress Most international students surveyed believed their involvement in our student programs, as users and/or as volunteers in helping run events, has increased their positive experience in Melbourne.

International Student Strategy Recognising the need to improve the wellbeing of international students and their experiences living in Melbourne, the City of Melbourne adopted A great place to study – International Student Strategy 2013-17. The strategy is the culmination of extensive community engagement and input.

projected OUTCOME: Infrastructure that supports knowledge and learning

2012-13

1,105,276

NUMBER OF VISITORS

INDICATOR The proportional increase in the number of visitors to City of Melbourne libraries per year.

Our Progress The number of library visitors from 2012–13 to 2013–14 trended very slightly higher by 0.6%.

TO OUR LIBRARIES

1,111,972 2013-14

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OUR PERFORMANCE IN 2013–14

projected OUTCOME: People to participate in knowledge-related activities

INDICATOR The proportional increase in the number of attendees participating at City of Melbourne knowledge events.

62.2%

increase in People attending City of Melbourne

knowledge events compared to last year

Our Progress The 62.2% increase in the number of attendees at Knowledge Week and Melbourne Conversations from 2012–13 to 2013–14 is based on attendance figures provided by event organisers. This figure does not take into account the audience for Melbourne Conversations that engages via YouTube.

Knowledge Melbourne Partnership: ‘Smart Australia 2030’ We partnered with veski to bring together research, industry, business, academia and government leaders for a symposium to discuss the necessity of a ‘smart Australia’ built on research innovation to overcome fundamental threats to the future of Australian industry.

The call to action was for more strategically focused, cross-sector and global collaboration.

projected OUTCOME: Businesses that are better informed about the knowledge sector

79.6%

INDICATOR of Knowledge Week participants surveyed felt

more informed

about the local knowledge sector

The proportion of Knowledge Week participants who feel more informed about the municipality’s knowledge sector, per year.

Our Progress The majority (nearly 80%) of participants who completed the audience survey reported that Melbourne Knowledge Week activities made them feel more informed about the municipality’s knowledge sector. Note this result is based on a small sample size.

Melbourne Knowledge Week Participants to Knowledge Week 2013 chose from 59 events across topics as diverse as innovation and technology, creativity and culture, design and urban planning, community learning, health and medical, big data and research. The program has tripled in size since its inception four years ago.

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Our 4-year priorities are...

PrM

Our 2013–14 focus was…

Develop programs, relationships and initiatives to support the wellbeing of international students

• Implement the first year actions of the International Student Strategy

Provide high-quality municipal data and information to the knowledge sector and public

• Develop an open data policy

• Leverage opportunities, particularly for international students and vulnerable communities, for training, adult education and community development through provision of existing services, grants and funding agreements

• Audit City of Melbourne data and prepare a report to the Council on data issues and connections with the Smart City Strategy and online knowledge portal

AcD

Over the next year we will...

• Host and participate in forums with the education sector, local governments and the State Government to explore opportunities to collaborate on international student wellbeing, housing and employment

• Implement the Smart City Strategy and the associated governance body

• Develop a virtual platform to enable information sharing Support the development of knowledge precincts and innovation hubs as part of the City North Structure Plan

• Deleted: Implement the City North Structure Plan

• Work with the proponent to complete a planning scheme amendment for the Carlton Connect precinct as per the City North Structure Plan

Continue to provide comprehensive highquality libraries and support neighbourhood learning programs

• Commence planning for relocation and updating of the City Library

• None (covered under Goal 1 Priority 2 Kathleen Syme and City Library actions)

Develop a strategy for wi-fi hotspots in the municipality

• Explore options for wi-fi and report back to Council on feasibility of a strategy

• Develop a full library service and community space at the Kathleen Syme Centre • Commence operations at the Docklands Library and Community Centre (KSA 4) • Work against this priority is included in our regular business

International expert visit CEO of Friends of the New York High Line, Robert Hammond, enthralled an audience of more than 500 with amazing images and tales of the former railway track-turned-aerialpark in New York at a Melbourne Conversations event for Melbourne Knowledge Week.

Hammond was also the keynote speaker at the Thriving Neighbourhoods Conference in Melbourne, where he inspired participants to explore emerging techniques for the planning, design and management of local neighbourhoods that will radically improve health, social engagement, environmental conservation and productivity of communities.

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Encourage knowledge sector engagement and promote the municipality’s knowledge sector

Our 2013–14 focus was…

Over the next year we will...

• Develop a Knowledge City Strategy

• Implement the Knowledge Strategy

• Deliver Melbourne Knowledge Week as a signature event

• Develop a growth strategy for Melbourne Knowledge Week

• Determine complementary knowledge activities and events

• Deliver one event consistent with the Knowledge Strategy per quarter in 2014–15

• Develop appropriate mechanisms for engagement of the knowledge sector with Council

• Provide a City of Melbourne knowledge fellowship and communicate the knowledge gained by the fellow via our libraries

• Develop a research partnerships program for the City of Melbourne

• Explore with Melbourne-based entrepreneurs, makers and service providers the potential for a high-tech, high-value manufacturing network and make recommendations in relation to the City of Melbourne’s role

• Explore the feasibility of developing a membership-based technical workshop in Melbourne in partnership with a university and other relevant stakeholders Develop strategies in partnership with the knowledge sector to attract experts to the municipality

• Work with the knowledge sector to establish a program of visits from world-renowned experts to share knowledge in Melbourne

discontinued ACTIONS The action relating to the City North Structure Plan is occurring under Goal 1 ‘A city for people’ and was removed from this Goal.

Discontinued

Ongoing

• Work against this priority is included in our regular business

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some of these relate to projects that span multiple years.

Some actions were delayed due to unforeseeable external factors.

Completed

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GOAL 5 an ECO-CITY As an eco-city, City of Melbourne and its community take shared responsibility for building and maintaining a healthy and resilient environment for Melburnians today and far into the future.

OVERVIEW

OUR APPROACH

5 PROJECTED OUTCOMES 6 progress indicators

9 priorities identified 28 actions for 2013-14 delivered via

8

service areas

14

strategies /PLANS

Future Melbourne snapshot How the city measures up as an ‘Eco-City’ based on: Municipal emissions: tonnes of greenhouse pollution (C02 - e) per resident and per worker in the municipality.

This includes emissions from electricity, gas, landfill waste and transport. Municipal emissions in 2012–13 totalled 6,442,240 tC02e.

We partner with the community to respond to impacts from our changing climate, population and economic growth - challenges that prompt us to explore new ways to adapt, while maintaining our status as one of the world’s most liveable cities. We lead by example by setting ambitious climate and environmental targets for the city and our operations.

Transforming Melbourne into an ‘eco-city’ is about the whole community coming together to help the city prosper while minimising environmental impacts, managing climate change risks and leading the way on renewable energy, biodiversity, waste and water management.

issues and challenges Policy uncertainty at state and national levels around greenhouse gas emissions and renewable energy has posed ongoing challenges to us meeting our target of 25% renewable electricity generation across the city by 2018.

We will continue focusing on actions not reliant on state and federal policy, while advocating for strong action by all levels of government.

future directionS We will continue improving our built environment and ensuring our open spaces are well-preserved and accessible to all. We will help the community make positive resource, energy and transport choices. See more on page 80 on how the City of Melbourne manages its environmental impacts.

6.07 tco2e 14.24 tco2e per resident

per worker (2012-13 data)

Goal 5 service areas: Sustainable environmental management - Parks and gardens - Street cleaning and waste management

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

2

key strategies updated

3,000

trees planted across the city

160

MORE building owners participating in 1200 Buildings program Activities

3

mAJOR stormwater HARVESTING PROJECTS

4

awards received including the International C40 Siemens Climate Leadership Award

Summary of 2013–14 actions Detail about this year’s eco-city actions and activities can be found later in this chapter.

21

complete

6

ongoing

1

discontinued

Key Strategic Activity 5 – Tree planting Why this KSA?

what did we do?

Doubling the city’s urban We planted 3000 new trees forest canopy by 2040 across the city this year, to create to reduce the urban heat an instant canopy of one hectare island effect is a key that is expected to grow to priority in addressing approximately 30 hectares by 2040. the effects of This contributes to our goal of 40% climate change. canopy cover in the municipality to achieve a four-degrees centigrade cooling effect. Details page 95.

Next steps are…

Continue growing the canopy and develop Urban Forest Precinct Plans for Fisherman’s Bend, Southbank and Parkville.

Town hall vegie patch and Grow Show For three weeks in February, the flower boxes outside the Town Hall were filled with herbs, veggies and edible flowers as part of our Grow Show program. City-dwellers and workers took part in free workshops, talks, demonstrations and giveaways to help them grow their own herbs, fruit and flowers and eat them too.

Property and assets - Public health and safety - Roads, transport and infrastructure - Building, development and planning - Urban policy and design

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: Our greenhouse gas emissions are reduced

-5.82% 3028.46 tCO2-e

The change in greenhouse gas emissions from City of Melbourne activities

The gross reduction we achieved in

GREENHOUSE GAS EMISSIONS

INDICATOR The proportional change in greenhouse gas emissions generated by City of Melbourne activities, per year.

Our Progress From 2011–12 to 2012–13 we reduced direct and indirect emissions associated with our operations, with the highest amount of reductions occurring within our supply chain.

All greenhouse gas emissions are offset and the City of Melbourne is a carbon-neutral certified organisation.

from 2011–12 to 2012–13 in tonnes of CO2 equivalent

What is a carbon neutral organisation?

Our operations have been certified carbon-neutral since 2011–12. As part of reducing the city’s emissions under our Zero Net Emissions by 2020 strategy, we maintain carbonneutrality in our own operations by measuring, auditing and reporting our greenhouse gas emissions through the National Carbon Offset Standard Carbon Neutral Program.

projected OUTCOME: Less municipal waste-to-landfill with less negative impact on amenity from collecting waste

INDICATOR

INDICATOR

The proportional change in total tonnes of waste to landfill.

The volume of complaints per capita about waste removal the City of Melbourne receives, per year.

waste-to-lanDfill increased

15%

from last year

0.02

the number of

Complaints per capita (or 2435 total complaints) about waste removal

Our Progress

Our Progress

In 2012–13 and 2013–14, there was an increase of 3852.14 total residential tonnes of garbage-to-landfill based on Citywide Waste (contractor) data (including street litter bins but excluding hard waste). Note that also during this period, the average number of households serviced increased from 46,468 to 52,067 (by 12%).

Most (79%) of the 2435 total complaints received in 2013–14 related to missed recycle and general waste bin collection.

The total number of complaints reflects a decrease of 9% from 2012–13 (i.e. 230 fewer complaints).

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OUR PERFORMANCE IN 2013–14

projected OUTCOME: Sustainable water management

43%increase

stormwater storage capacity

21308 KL

30508 KL

2012–13

2013–14

INDICATOR The proportional change in the capacity of infrastructure to capture and reuse storm-water, per year.

Our Progress The 2012–13 data is the total potential storage capacity of Royal Park wetland, while this year (2013–14) storage potential is the total storage capacity for Fitzroy, Birrarung Marr and Queen Victoria Market system in addition to potential storage at Royal park wetland.

projected OUTCOME: Increased biodiversity and tree canopy cover in the municipality

23.7%

INDICATOR in 2012-13

tree canopy cover in 2013-14

24.38%

The percentage of tree canopy cover of the municipality, annually.

Our Progress Note this excludes private land. Canopy-growth is expected to be slow in the next two decades due to losses of about 0.4% per year, before resuming at 1% annually from 2030 to 2040 if planting rates are met. This year we planted 3190 new trees towards our goal of 40% canopy cover by 2040.

Citizen foresters In February, we launched the ‘Citizen forester’ program, which attracted more than 30 volunteers. The first volunteers collected samples from the city’s oldest elm trees for a scientific study of elm diversity. The genetic diversity of elms is not yet well understood and the foresters’ samples will be used to guide future propagation of replacement elms.

projected OUTCOME: Climate change impacts on the municipality are managed

72.5%

INDICATOR are aware of

climate change risks

The proportional change in the number of residents who are aware of climate change-related risks and the actions they should be taking, annually.

Our Progress Almost three-quarters of residents are aware of climate change, connect extreme weather to climate change and have done or intend to do something to prepare for extreme weather events. No baseline data is available for 2012–13.

Residents embrace sustainable living though eco-city initiatives This year saw a flood of community interest in eco-related initiatives, including the Sustainable Living Festival, Garage Sale Trail and Carlton One Planet Living campaign.

North Melbourne, Kensington, Southbank, Docklands and CBD residents embraced energy-saving solutions from the Positive Charge and Smart Blocks program.

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Our 4-year priorities are...

Update and continue to implement our Zero Net Emissions Strategy

PrM

Our 2013–14 focus was…

• Finalise the update of Zero Net Emissions by 2020 Strategy

AcD

Over the next year we will...

• As part of the Zero Net Emissions Strategy: - work with the local energy distributor to plan the city’s future energy grid - develop a plan to leverage the Federal Government’s Direct Action Plan to attract investment in business - investigate the viability of providing a carbon offset service for businesses and residents

Provide services to enable • Deliver energy-efficiency programs for commercial and higher-density residents and businesses to transition to zero net residential buildings. emissions through energy efficiency and renewable energy sources

• Promote the Council of Capital City Lord Mayors CitySwitch and the City of Melbourne 1200 Buildings programs to low-participation precincts and approach the Federal Government for funding under its Direct Action Plan • In conjunction with the Department of Human Services, real estate agents and student housing providers, expand the high-rise recycling program to incorporate waste-reduction education programs and target high-rise communities, renters and low-income groups

Develop low-carbon and renewable-energy infrastructure through structure plans and planning approvals

• Investigate options and requirements for commercial-scale solar energy systems (including precinct, community investment and solar farm schemes) • Deliver solar program for residents that increases accessibility and affordability • Develop plans for embedded precinct energy systems in urban renewal areas, Queen Victoria Market, the Town Hall Precinct and facilitate private sector investment • Lead the C40 Sustainable Urban Development Network • Investigate the feasibility of discretionary height limits for solar/green roofs (non-habitable)

Embed municipal-wide waste management practices to increase recycling, reduce waste generation and lessen amenity impacts

• Install local technology solutions to reduce waste to landfill and limit the impact of waste collection within the central city resulting in fewer trucks, less bins in the public space and less dumped rubbish

• Develop and run programs that improve the uptake of renewable energy generation in the city, particularly in commercial buildings, and drive investment in large-scale renewable energy • Implement the planning scheme recommendations from the Solar Access Options Study • Work with the Sustainable Melbourne Fund to adapt Environmental Upgrade Agreements to support investment in renewable energy • Lead the C40 Sustainable Urban Development Network and determine whole-of-council opportunities to engage in the network • Install an additional waste compactor in the city

• Work with high-rise apartments to ensure that appropriate recycling facilities and/or processes are provided within their premises • Work in partnership with government and business to monitor waste generation and recycling trends • Increase support to programs that reduce the amount of waste going to landfill and improve commercial recycling rates • Prepare for Planning Scheme Amendment requiring apartment buildings to have on-site waste compactors • Investigate the feasibility of extending the ‘Degraves Street Shared Recycling Facility’ to another area of the central city • Install additional new waste compactors in two central city laneways that are hotpots for litter and dumped rubbish, bringing the total to four compactors

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Our 2013–14 focus was…

Over the next year we will...

Improve sustainable water • Finalise the update of management by updating Total Watermark strategy and implementing our Total Watermark Strategy

• Produce an integrated water management plan for the Elizabeth Street catchment as part of the Total Watermark Strategy

Develop integrated water management infrastructure through structure plans and planning approvals

• Complete the planning scheme amendment C208 Developer Contribution Plans

• Develop and implement integrated storm water management infrastructure (harvest, reuse and retention) including progressive upgrade of the drainage network and water sensitive urban design • Plan precincts with integrated water management in urban renewal areas

Improve resilience to environmental impacts by implementing our Urban Forest and Open Space strategies, and also develop a Biodiversity Strategy

• Develop a Biodiversity Strategy

Update and continue to implement our Climate Change Adaptation Strategy and Action Plan

• Develop and implement a four-year action plan for the Climate Change Adaptation Strategy

• Present the draft Biodiversity Strategy to the Council

• Increase the resilience of the city’s parks and street trees to climate change

• Increase the resilience of the city’s parks and street trees to climate change and plant at least 3000 trees to reduce the urban heat island effect

• Undertake tree planting to contribute to doubling the municipality’s urban forest canopy by 2040 to reduce the urban heat island effect (KSA 5)

• Complete urban forest precinct plans for Southbank, Parkville and Fishermans Bend

• Develop and deliver community information on climate change resilience • Convene the Inner Melbourne Climate Adaptation Network

• Embed sustainability into branch business Embed a stronger planning processes, systems and tools focus on sustainability and climate change • Maintain carbon neutrality and set adaptation in our systems, corporate waste reduction and water governance, tools and conservation targets knowledge and in our • Retrofit Council assets for energy and water interactions with the efficiency where audits identify appropriate community financial feasibility • Develop and deliver a sustainability learning and development program for all staff • Investigate improvements to sustainable food use within corporate operations and hospitality

discontinued ACTIONS Planned development of a district energy system for the Town Hall precinct has been placed on hold indefinitely due to gas price increases and regulatory barriers for precinct energy. Our focus has shifted to broader renewable energy solutions.

Discontinued

Ongoing

Completed

• Lead Melbourne’s participation in the Rockefeller 100 Resilient Cities Challenge, appoint a Chief Resilience Officer, develop a Resilience Strategy and determine whole-of-council opportunities to engage in the network

• Undertake a pilot study to measure the environmental impact of a premier event and complete an analysis of all event delivery models to identify opportunities to reduce their impact • Review sustainability reporting within the organisation • Develop a sustainability leadership training program • Implement year one of the Lighting Strategy including energy-efficient technology

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Regarding sustainable solutions for the Queen Victoria Market, a sustainable infrastructure plan and delivery model will occur as part of the development of the Queen Victoria Market master plan, a key focus for 2014–15 under Goal 1 A city for people.

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GOAL 6 a CONNECTED CITY In Melbourne, all people will be able to move freely to communicate and trade without sacrificing essential social or ecological values. Melbourne’s connections will give people access to a rich seam of opportunities.

OVERVIEW

OUR APPROACH

2 PROJECTED OUTCOMES 2 progress indicators

4 priorities identified 22 actions for 2013-14 delivered via

6

service areas

6

strategies /PLANS

The City of Melbourne manages movement in and around our city to help people trade, meet and move about safely and freely. We know that catering for our growing city and safeguarding its continued prosperity means planning for an efficient and sustainable transport network of the future.

Building a ‘connected city’ is about working closely with our partners and advocating for the free movement of people and goods in the city. It is about making it easier for more people to make more sustainable choices as they travel to and around the city, whether by foot, bicycle, tram or train.

issues and challenges This year we have had to divert significant resources to respond to the Victorian Government’s proposed East West Link project.

Various initiatives in our Transport Strategy such as the Melbourne Metro Rail Link and improvements to the reliability and frequency of the airport SkyBus service have been contingent on the actions of the Victorian Government.

future directionS Our focus in the coming year includes continuing to improve the pedestrian and bicycle network, introducing road safety measures, working with the Victorian Government on tram and train initiatives, as well as rolling out the first phase of pay by-phone parking services across the municipality.

Future Melbourne snapshot How the city measures up as a ‘connected city’ based on: Shift to sustainable travel: proportion of trips of all purposes to and within the municipality using bus, train, tram, bicycle or walking as the main mode on weekdays and weekends.

Melbourne added about 63,000 workers between 2006 and 2011. Four out of five (80%) travelled to the city by train (52%), tram (12%), bike (8%), foot (6%) or bus (2%).

Percentage of WORKERS

travelled 56% WHO sustainably 60% in 2006

in 2011

Goal 6 service areas: Roads, transport and infrastructure – Parking Management – Street cleaning and waste management

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

7km

new and upgraded bike lanes

50%

more cyclists entering the CBD since 2008

> 3300

11

new shared zones with expanded pedestrian access

Ride2Work Day participants

1st

YEAR of road safety education program delivered

Summary of 2013–14 actions Detail about this year’s connected city actions and activities can be found later in this chapter.

16

complete

9

ongoing

Key Strategic Activity 6 – Bicycle routes Why this KSA?

what did we do?

Through the bicycle infrastructure We built or improved bike and programs in our Bicycle lanes at Adderley Street, Plan 2012–2016 we make Neil Street, Victoria Street, the city safer and more Collins Street in Docklands attractive for cyclists. and Bourke Street. Cyclists as a proportion of vehicles entering the city grew from 13.3% to 14.7% in the last year.

Details page 96.

Next steps are…

Complete improvements in the Bicycle Plan including Flemington Road separated lanes and other bicycle routes.

Share Our Streets Based on a theme of odd couples, this program encourages all Melbourne’s road users to show courtesy and respect to other road users – be they skaters, cyclists, runners, pedestrians or drivers. Launched in March, the campaign features residents, workers and visitors and tackles road issues of particular concern in our busy city.

Local laws compliance – Urban policy and design – Building, development and planning

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: People and goods can move efficiently within the municipality

INDICATOR The number of street connections that allow pedestrian movement in the municipality.

0.88

19%

average connections

average footpath space

per block for pedestrians

out of total carriageway area

Our Progress The number of pedestrian street connections is measured in two ways. The first relates to the average connections per block allowing pedestrians to travel safely from one side of the street to the other, and from one street to another, including via mid-block pedestrian crossings, lanes and

arcades. The second measure relates to the average area of footpaths, roads and nature-strips combined that is devoted to pedestrians. We are widening footpaths in the central city, which may see the average ratio of footpaths-tocarriageway increase over time.

A city for walking Projects that helped make it safer and easier for people to get around the city on foot this year included traffic signal upgrades in Collins, Lonsdale, William and Rathdowne streets and new pedestrian refuges in Eades, Bayles, Berkeley, Drummond, Fawkner and Bedford streets.

The Council’s response to East West Link On 30 June 2014, the Minister for Planning approved the East West Link (Eastern Section) road project. Prior to the project’s approval, we made detailed submissions, informed by feedback from our community, to the East West Link Project Assessment Committee.

We recommended changes including reducing the impact on Royal Park and West Parkville, better catering for the area’s sporting, recreational and open space needs and creating opportunities to improve water collection and storage. Our full submission is provided in the Building and Planning section of our website. We will continue to represent the community’s interests as the project progresses.

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OUR PERFORMANCE IN 2013–14

projected OUTCOME: More people walking, cycling or using public transport to travel to and from the municipality

INDICATOR

Percentage of

workers walking or cycling to the city

8.3% in 2006

9.2% in 2011

The proportional change in the number of city users reporting walking or cycling as the main mode of travelling to and within the municipality.

Our Progress Latest available data is from 2006 and 2011. The proportion of workers who used cycling or walking as their main mode of transport to the city increased 13% between Census periods.

Accessible street signs in the central city This year, we designed and installed 80 tactile street signs to help people with vision impairment move around safely. We worked with Vision Australia, VicRoads and Health Science Planning Consultants on the signs, which feature high-contrast colours and braille labels. This is the first of a five-year roll-out as part of our Disability Action Plan.

Improving access around railway stations We have made safety and access for pedestrians around major railway stations a top priority. This year we introduced new fencing outside Flinders Street Station to encourage people to cross the road safely between the station and the tram platform. Shorter traffic signal cycle times at Spencer Street near Southern Cross Station have allowed people to get to their destination quicker and reduced foot-traffic congestion.

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Our 4-year priorities are...

Expand and prioritise a connected, safe and easy to access pedestrian network

PrM

Our 2013–14 focus was…

• Prepare pedestrian accessibility plans for the precincts around Flinders Street Station and Southern Cross Station • Work with stakeholders to provide improvements for pedestrian access to public transport

AcD

Over the next year we will...

• Implement the Walking Plan including planning scheme amendments to support through-block links and other pedestrian network benefits

• Finalise Walking Plan and deliver first year actions • Deliver planning scheme amendments as per the Walking Plan to support through block links and other pedestrian network benefits • Expand the program of opening streets for temporary pedestrianisation • Continue to advocate for changes to traffic signals to prioritise pedestrian and public transport operation • Investigate street designs that would make ‘little’ streets in the city more pedestrian-friendly Make the municipality more bicycle friendly through our Bicycle Plan 2012–16 and endorse a new bicycle plan by March 2016

• Complete the 2013–14 annual capital works program for on and off-road routes as part of the Bicycle Plan 2012–16 (KSA 6) • Implement facility upgrades including more bicycle hoops, corrals, way finding and signals as listed in the Bicycle Plan • Undertake safety education for road users concentrating on known hotspots • Complete research to understand barriers and enablers of Melburnians cycling and cycling more often • Complete Bicycle Account 2013 and monitor and evaluate all major routes.

• Investigate the feasibility of a link between Albert Street bike lane and La Trobe Street bike lane • Investigate street designs that would make ‘little’ streets in the city more bicycle-friendly

Ongoing

• Implement year three actions of the Bike Plan including capital works on: - Lorimer Street and Dynon Road shared paths - Spring Street, The Avenue, Gisborne Street, Albert Street-to-La Trobe Street connection - Arden Street route and pedestrian/bicycle bridge - Leveson Street at Courtney Street - Smithfield Epsom and Macaulay Roads upgrades - Flemington Road separated lanes - Queensbridge Street-to-Market Street and Bridge Road-to-Yarra Park connections - Elizabeth Street and Chelmsford contra-flow - bike corrals

Completed

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Implement the Transport Strategy 2012 for flexible and adaptable private transport, effective and integrated public transport and efficient urban freight, so as to: • Integrate transport and land use planning

Our 2013–14 focus was…

• Work with State Government to ensure the municipality’s urban renewal areas are planned with improved transport links around new and existing stations • Work with State Government, Yarra Trams and VicRoads to develop a plan and implementation strategy for the upgrading of Elizabeth Street commencing with the construction of level access stops in Elizabeth Street

• Support ‘go anywhere, anytime’ public transport • Finalise improvements to King Street traffic signals with VicRoads to improve east/west for inner Melbourne tram movements and pedestrian safety • Optimise the transport • Develop Bike Futures Melbourne as a effectiveness of inner multi-stakeholder approach to making Melbourne’s roads Melbourne a cycling city • Develop high-mobility • Work with State Government on Melbourne pedestrian and public Metro Rail Capacity and other rail capacity transport streets in the improvements central city • Make Melbourne a true cycling city

• Consider approach to State Government East West Link proposal when details are known

• Foster innovative, low-impact freight and delivery in central Melbourne

• Develop a City Road Masterplan in line with Southbank Structure Plan objectives • Work with State Government to deliver level access tram stops in Melbourne which enhance the pedestrian and other transport networks and ensure a whole-of-streetscape approach • Work with State Government to improve the reliability, travel times and frequencies of the SkyBus service and the introduction of standard public transport fares to encourage greater public transport access to Melbourne Airport

Over the next year we will...

• Complete a masterplan for Elizabeth Street in consultation with Yarra Trams and stakeholders • Work with the State Government on the Melbourne Metro Rail Capacity Project and other rail improvements • Complete a City Road master plan in line with Southbank Structure Plan objectives • Implement Road Safety Plan actions including work on: - a Motorcycle Plan - the Spring Street footpath at Collins Street - footpaths and pedestrian crossing on Flinders Lane between Spring and Exhibition streets - the O’Connell Street pedestrian refuge at Peel Street • Roll out the first phase of pay-by-phone parking services across the municipality • Amend the planning scheme to require motorcycle and bicycle parking that better matches current and predicted use • Trial a safe city taxi rank in Bourke Street, including upgrading the evening Bourke Street rank between Russell Place and Russell Street • Work with the State Government and other partners to develop an approach to lastkilometre freight for central Melbourne • Complete a desk-top review of the carshare policy to assess benefits to the city and capitalise on new business models and technologies

• Complete a strategy to address increased crowds around major railway stations Facilitate access by water transport in the municipality

• Facilitate the introduction of water transport/ferry services to Docklands

• Continue to facilitate the introduction of water transport-ferry services to Docklands

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Ongoing

Completed

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GOAL 7 resources are managed well An organisation that manages its resources well will use what it has available efficiently and effectively to achieve its goals and ensure the community will continue to grow and prosper locally, nationally and internationally.

OVERVIEW

OUR APPROACH

3 PROJECTED OUTCOMES 4 progress indicators

5 priorities identified 7 actions for 2013-14 delivered via

10

service areas

9

strategies /PLANS

As an organisation where ‘resources are managed well’ we continue to look for ways to achieve this in every facet of what we do. Find out more on how we apply this approach throughout our business in these sections:

As an organisation, the City of Melbourne’s aims to constantly improve what we deliver and how we deliver it.

We strive to make everything we do easier, better, faster and cheaper for our customers, gaining more value from our limited resources.

Ensuring our ‘resources are managed well’ is about making sure we are financially sustainable as an organisation, our customers are satisfied with the service they receive and that we attract, retain and develop the workforce we need.

issues and challenges The need to contain costs while delivering more for our community presents a constant challenge for the organisation. This is particularly so when the task of addressing climate change, accommodating a growing population, keeping abreast of technological advancements and supporting a resilient local economy becomes ever more pressing.

future directionS In the coming year, we will continue to improve the way we deliver for our customers and introduce strategic workforce planning. We will engage the community in developing our very first 10-year Financial Plan, through broad-based engagement as well as a ‘People’s Panel’ of residents, business owners and students randomly selected to represent a wide cross section of the community.

• Our people (pages 74 to 79) describing our approach to fostering a talented, engaged workforce as well as safe and diverse workplace • Our procurement and supply chain (page 87).

• Continuous improvement (pages 72 to 73)

Goal 7 service areas: Finance – Information technology – Customer relations – Human resources – Learning and development

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

1981

days released by improving our processes

$1,541,799

saved by improving our processes

2,000,000+ inquiries and contacts from tourists

263,741

calls to our customer centre

87,778

texts to our customer centre

Summary of 2013–14 actions Detail about this year’s actions and activities to ensure resources are managed well can be found later in this chapter.

6

complete

2

ongoing

Key Strategic Activity 7– Organisational performance measures Why this KSA?

what did we do?

Measures of performance We produced a monthly dashboard that are robust and verifiable containing nine graphs that track help organisations like how we are performing in relation ours demonstrate the to our customers, productivity and value we provide, people. Each month our management identify gaps and team reviews the results, discusses motivate us progress and agrees what the to improve. improvement actions will be for the month. Details page 97.

Next steps are…

Begin producing the measures at branch level and develop a similar dashboard of interest to the public.

Spending more time with mothers and babies This year our maternal and child health staff developed a template which, combined with their new booking process, resulted in time for 84 more appointments in February alone and a sustained reduction from 10% to 3% of mothers failing to attend appointments (often the mothers most in need). With a rapidly growing population, this is vital work.

Property and assets – Building, development and planning – Lean thinking – Corporate planning and performance – Sustainability

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: Financial sustainability as an organisation

INDICATOR

INDICATOR

Long-term underlying surplus.

Rateable property assessments per full-time employee.

$1.2 million

rateable 66.91 property 68.24

The City of Melbourne’s long-term

in 2012-13

underlying surplus

assessments per employee

in 2013-14

Our Progress

Our Progress

Our budgeted underlying surplus was $1.1 million; the actual underlying surplus for the year was $1.2 million.

The figure 68.24 represents the rateable property assessments per equivalent full-time City of Melbourne employees (1290.6) at 30 June 2014.

Stand-up meetings Short stand-up huddles around information boards are replacing sit-down meetings to improve information sharing and identify improvement work. One branch estimates its huddle saved 416 hours a year. Our CEO huddles daily and managers weekly, with question one: what’s gone wrong for customers this week and how will we fix it?

projected OUTCOME: Customer satisfaction with how City of Melbourne staff deliver services

74 100

INDICATOR

satisfaction rating Residents gave for City of Melbourne’s services

Customer satisfaction with how City of Melbourne staff deliver services.

Our Progress The score of 74 out of a possible 100 is drawn from an annual survey by the Department of Transport, Planning and Local Infrastructure of residents’ satisfaction with their local council’s customer service performance. This reflects a slight increase of three points from 2012–13 performance.

projected OUTCOME: Staff retention rate / workforce turnover

workforce turnover rate

13.22% TOTAL

6.28% voluntary

INDICATOR Staff retention rate / workforce turnover.

Our Progress Our workforce turnover rate (including voluntary and involuntary turnover) for all staff types is 13.22% which is similar to the previous year (in 2012–13) of 13.35%. See also ‘Our people’ on pages 74 to 75.

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OUR PERFORMANCE IN 2013–14

Our 4-year priorities are...

Our 2013–14 focus was…

Over the next year we will...

Develop and endorse a 10 year Financial Strategy

• Approve a 10-year Financial Plan including revenue stream analysis, asset management tools and policy development, procurement strategy review, real estate management framework and financial management principles

• Implement the community engagement process agreed for the 10-year Financial Plan

Maximise the return on our existing or potential commercial assets

• In conjunction with a City of Melbourne staff accommodation strategy, complete feasibility studies for the redevelopment of CH1, 225 Bourke Street, 602 Little Bourke Street and the Town Hall precinct

• Review the Town Hall venue management contract taking into consideration the existing Council grant programs to determine the optimum operational and financial model • Complete a feasibility study for the future use of Council owned land known as Council House precinct (including Council House One, 225 Bourke Street and associated properties) • Review governance and processes for decision-making on capital works projects to embed Corporate Social Responsibility and transparent reporting

Improve customer experience while increasing organisational productivity

• Identify key high-volume, high-cost service areas for improvement and implement improvements • Develop and trial simple and effective measures of organisational performance including a measure or measures associated with customer experience (KSA 7) • Further enhance the City of Melbourne Management and Leadership framework to embed a consistent, customer-focused approach to service delivery and facilitate increased awareness of the importance of customer experience in service/process design

• Deliver measurable improvements to three high-volume, high-cost services that contribute to improved customer experiences or increased organisational productivity • Deploy new organisational measures to relevant branches and services and remove obsolete measures

• Progress implementation of the City of Melbourne Management and Leadership framework across the organisation

Improve information management and systems by implementing our IT Strategy

• Implement key components of IT Strategy including specifications for and tender for an information and data exchange architecture platform

• Work against this priority is included in our regular business

Implement a workforce planning model

• Begin implementation of workforce planning

• Progress People Strategy by introducing a strategic workforce planning model, determine immediate high-risk areas and develop managers who have high-risk areas to implement and manage action plans

ONGOING ACTIONS Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Ongoing

Completed

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GOAL 8 an accessible, transparent and responsive organisation An accessible, transparent and responsive organisation is willing to share what it has done and why it has done it with people who need to know. It acts in a professional, timely manner and ensures the community can feel a sense of pride in its operations.

OVERVIEW

OUR APPROACH

3 PROJECTED OUTCOMES 7 progress indicators

3 priorities identified 7 actions for 2013-14 delivered via

5

service areas

As an organisation, the City of Melbourne strives to improve opportunities for the community to participate in and engage with our decision-making. We seek to share information about our decisions and performance with our community.

Ensuring we are an ‘accessible, transparent and responsive organisation’ is about increasing public disclosure of and access to information to become one of the most transparent councils in Australia, fostering a more involved community as well as a better informed community.

issues and challenges We recognise that many of our customers want 24-hour, online access to services and information. However, our website is outdated and many of our systems and processes are not easily transferable to an on-line world. Our challenge is to transition to a digital first model while continuing to deliver robust and reliable services to all our customers.

future directionS Over the coming year, we will be introducing more transparency measures as well as improving our capacity to engage our community and stakeholders via digital channels.

3

strategies /PLANS

A major initiative will be to develop a suite of measures of interest to our community for publication on our corporate website.

To become an ‘accessible, transparent and responsive organisation’ we continue to look for ways to achieve this in every facet of what we do. Find out more on how we apply this approach in different areas of our business in these sections:

• Involving the community in our decisions (page 70 to 71) demonstrating our commitment to being accessible and responsive to our community • Our reporting approach (pages 103 to 104) describing how we have tried to improve the transparency of our reporting.

Goal 8 service areas: Legal, governance and corporate – Finance – Community engagement

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OUR PERFORMANCE IN 2013–14

Performance Summary KEY HIGHLIGHTS

50,000

user sessions – REFLECTing GROWING online engagement

15

minutes question time at the start and end of Future Melbourne Committees

Lease register published on our website

57

City of Melbourne datasets in open data pilot

VCAT planning decisions listed on website

Summary of 2013–14 actions Detail about this year’s actions and activities to achieve an accessible, transparent and responsive organisation can be found later in this chapter.

10

complete

3

ongoing

1

discontinued

Key Strategic Activity 8 – Online engagement Why this KSA?

what did we do?

Next steps are…

To provide an on-line way for people to have a say about Council projects that interest and affect them.

Developed the Participate Continue to engage Melbourne hub, through which we our community via were able to ask the community Participate Melbourne for feedback on projects ranging including a budget from the Queen Victoria Market simulator to help renewal to the naming of a park. stakeholders show us In the process, we reduced online how they would spend engagement costs. Details page 98. ratepayers’ money over the next decade.

Exploring open government In our quest to be one of the most transparent councils in Australia, we took a look at how other cities – from London to New York – approach ‘open government’, the sharing of their data and information to benefit their communities. What we learned is being applied across the organisation, including within our open data trial (see over-page).

Communications, media and publications – Information technology

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How we’re performing against our indicators of progress The City of Melbourne aims for several outcomes over the four years of its Council Plan 2013–2017.

We measure progress by the indicators below. In some instances, it is not possible to show a trend against an indicator as this is the first year we have collected data. We expect to show this in future years.

projected OUTCOME: Increased public disclosure and access to information to become one of the most transparent councils in Australia

INDICATOR

INDICATOR

A decrease in the number of Future Melbourne Committee and Council agenda items dealt with in confidential session, per year.

A decrease in the proportion of Future Melbourne Committee and Council agenda items dealt with in confidential session, per year.

85

the number of items handled in

25%

the proportion of items handled in

confidential session

confidential session

in 2013–14

in 2013–14

INDICATOR

INDICATOR

An increase in the level of online publication of data and information about the Council’s decision-making.

An increase in the number of visits to web-pages where the Council registers and decisions made under delegation under the Planning and Environment Act 1987 are published, per year.

the number of

publications ONLINE

9

in 2012–13

19

in 2013–14

TOTAL

visits to web pages

8,204 in 2012–13

13,473

in 2013–14

Our Progress Ten additional registers and data publications were made available online from 2012–13 to 2013–14 as part of the City of Melbourne’s commitment to increased transparency of information. This includes a report on expenditure in excess of $500,000 that is made available each quarter.

Visits to web pages with Council registers and Council decisions made under the Planning and Environment Act increased 64.2% (5269 more visits). Proportional change in the number and proportion of agenda items dealt with in confidential session will be reported in future years.

Our city on your laptop Mountains of data – from the location and canopy size of every tree to hourly pedestrian traffic in the city – were released to the public this year as part of our open data policy and pilot website: data.melbourne.vic.gov.au. Sharing information this way increases transparency and supports social and business enterprise through innovative use of data.

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OUR PERFORMANCE IN 2013–14

projected OUTCOMES: A more involved community A better informed community

INDICATOR

63%

An increase in community awareness of the Council’s community engagement processes.

OF residents surveyed are aware of our

COMMUNITY ENGAGEMENT

Our Progress There is no baseline data for 2012–13 so this figure reflects the proportion of residents surveyed who are aware of our community engagement processes.

PROCESSES

INDICATOR

INDICATOR

An increase in participation in the Council’s community engagement processes.

An increase in satisfaction with the Council’s community engagement processes.

48%

percentage of residents who rated our community engagement as

Of residents surveyed have participated in our

‘Good’ or ‘very good’

32%

COMMUNITY ENGAGEMENT PROCESSES

in 2012–13

47% in 2013–14

Our Progress Nearly half of residents surveyed participated in a City of Melbourne community engagement activity in the past 12 months. There is no baseline data from 2012–13 so it is not possible to measure an increase in participation. Increasing numbers of people are engaging with us online (50,000 visits from August 2013 to June 2014).

Our 4-year priorities are...

Improve transparency by increasing accessibility to information, advice or consultation we consider when making decisions

The percentage of residents reporting satisfaction with our community engagement processes (i.e. as ‘good’ or ‘very good’) increased 15% from 2012–13 to 2013–14.

Our 2013–14 focus was...

• Research best practice in open government in other comparable cities and organisations to identify actions and benchmarks which Council could adopt

Over the next year we will...

• Implement an online system for disclosing public submissions to Future Melbourne Committee and Council meetings

• Identify gaps for Melbourne, propose actions and report to the Council

• Develop and propose to the Council a suite of measures of interest for publication on the website

• Collate and publish Lease Register on the City of Melbourne website

• Publish on the website a list of City of Melbourne properties valued over $5 million

• Identify all registers Council is required to maintain and assess if these can be published on the website • Implement increased opportunities for public questions at Future Melbourne Committee meetings • Monitor the number of questions from the public and diversity of those asking them

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Our 4-year priorities are...

Continue to increase and improve opportunities for our community to participate and engage with us

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Our 2013–14 focus was...

Over the next year we will...

• Annual plan and budget consultation process approved by Council by December 2013 and implemented for the 2014–15 financial year annual plan and budget • Develop [and publish] a detailed 10-year capital works plan as part of the 2014–15 budget

• Evaluate the results of community engagement forums, our community engagement audit and community engagement research and implement the findings

• By December 2013 report to Council on: - an audit of existing mechanisms for community and stakeholder engagement - the level of activity in engaging in Council decisions by different communities - evidence of what Melbourne communities want to be engaged in - evidence of preferred methods for engagement and, - how best would Council use this information • Based on the above information, report to Council on what changes should be made to current practice of engaging community in Council decision-making processes as a result of the above research by March 2014 • Advocate to the Minister of Local Government regarding the potential to improve access to and participation in Council elections by all eligible electors Make our information and data accessible to our community and stakeholders where possible

• Develop our organisational capacity to engage our communities online (KSA 8)

• Deliver mobile, accessible, transparent and engaging digital communications via:

• Discontinued action: Create a social data research portal for use by external parties (covered by action 4.2.3)

- a redeveloped corporate site (including all current sub-sites) supported by a new governance framework and processes

• Publish on the City of Melbourne website a list of all VCAT planning decisions related to the municipality

- a redeveloped intranet - a redeveloped service directory - improved functionality (based on a new content management system) - content renewal and migration based on a content strategy • Continue to build our capacity to engage our community and stakeholders via digital channels (e.g. Participate Melbourne)

discontinued ACTIONS

ONGOING ACTIONS

The action on a social data research portal is covered by an action under Goal 4 ‘A knowledge city’ and was removed from this Goal.

Discontinued

Ongoing

Several actions not completed in 2013–14 will continue to be delivered in the 2014–15 financial year. Some relate to projects that span multiple years. Some actions were delayed due to unforeseeable external factors.

Completed

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OUR ORGANISATION

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OUR FUNCTIONS The City of Melbourne’s functions are prescribed by the Local Government Act 1989.

on Swanston Street and CH1 and CH2 on Little Collins Street.

The organisation also operates facilities, services and additional administrative functions from more than 30 other locations including childcare centres, parks and gardens and swimming pools.

A list of our major functions and services is provided on our website at melbourne.vic.gov.au/AboutCouncil/ financegovernance/Pages/Listmajorfunctions.aspx There also are several acts and local laws we enforce, listed at melbourne.vic.gov.au/AboutCouncil/financegovernance/ Pages/Listactslocallaws.aspx For more information on how we perform our functions, provide services and exercise our powers visit our website.

Our core administrative and operational functions are conducted out of three buildings; Melbourne Town Hall

The organisation comprises five divisions and 30 branches.

Governance Services, Corporate Planning and Lea(r)ning and the Lord Mayor’s Chief of Staff report directly to the Chief Executive Officer. All branches are responsible for providing quality services that provide maximum benefits at the best cost for all stakeholders. They do this by building partnerships with the community, business and government to promote the growth, prosperity and quality of Melbourne.

City of Melbourne Organisation structure LOrd mayor and deputy LORD mayor Chief Executive Officer

Lord Mayor’s Chief of Staff Amelia Bitsis

Kathy Alexander

Councillors Manager Governance Services Keith Williamson Manager Corporate Planning and Lea(r)ning Denise Bennett

Director, Community Development Linda Weatherson

Director, City Design Rob Adams

Director, City Planning and Infrastructure Geoff Lawler

Director, City Business Martin Cutter

Director, Corporate Business Mark Stoermer

Manager Arts and Culture Jane Crawley

Manager Urban Design and Docklands Rob Moore

Manager Strategic Planning David Mayes

Manager Business and International Jane Sharwood

Chief Financial Officer Financial Services Phu Nguyen

Manager Community Safety and Wellbeing Dean Griggs

Manager Urban Landscapes Ian Shears

Manager Sustainability Krista Milne

Manager Corporate Affairs and Strategic Marketing Jenny Ford

Chief Information Officer Business Information Services Colin Fairweather

Manager Community Services Jane Foley

Manager Design Ian Winter

Manager City Research Austin Ley

Manager Tourism Melbourne Barry McGuren

Manager Human Resources Clive Peter

Manager Community Strengthening Ian Hicks

Manager Capital Works Bob Rosen

Manager Planning and Building Angela Meinke

Manager Events Melbourne Stephen Nagle

Chief Legal Counsel Legal Services Kim Wood

Manager Customer Relations Joelene Schembri

Manager Parks Services (inc. Waterways) Francis Khoo

Manager Engineering Services Geoff Robinson

Manager Health Services Russell Webster

Manager Property Services Greg Stevens

Manager Parking and Traffic Alistair Miller

Manager Recreation Services Graham Porteous

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OUR ORGANISATION: OVERVIEW

Executive Team The City of Melbourne has an organisational structure of five divisions, each led by a Director who reports to the CEO. The CEO and directors manage our operations and ensure the Council receives the strategic information and advice it needs to plan for the municipality and make decisions.

Branches within each division perform specific functions, collaborate on projects and share their particular knowledge and expertise across the organisation. Information on the directors and their divisions is provided below.

Dr Kathy Alexander, Chief Executive Officer When Kathy took the helm at the City of Melbourne in 2008 she already was well known as the former CEO of Women’s and Children’s Health, which governed Melbourne’s Royal Children’s and Royal Women’s hospitals. Before joining us the former South Australian Telstra Businesswoman of the Year was CEO of several hospitals and service organisations in her home state and managed a successful consultancy, with projects around the country.

Professor Rob Adams, Director of City Design Rob’s 30 years at the City of Melbourne, and 40 years’ experience as an architect and urban designer, have seen him and his team receive more than 120 local, national and international awards. Rob was awarded the Prime Minister’s Environmentalist of the year Award in 2008, has an Order of Australia for his contribution to architecture and design and is a member of the World Economic Forum’s Urbanization Council.

Martin Cutter, Director of City Business Martin joined the City of Melbourne 10 years ago as the Director of Corporate Business before leading our City Business division. Prior to that Martin was Chief Financial Officer at the Federal Government’s national shipping line ANL Limited, playing a critical role in its privatisation, wind up and the management of its residual assets. Previously Martin served as a senior audit manager with KPMG.

Linda Weatherson, Director of Community Development A home-grown success story, Linda Weatherson has risen progressively through the ranks at the City of Melbourne. Since starting with us in 1987 working with our childcare centres and kindergartens, Linda managed Family and Children’s Services, Human Resources, Business Development and Best Value before being appointed as a Director in 2004, initially responsible for Corporate Performance and now for Community Development.

Geoff Lawler, Director OF City Planning and Infrastructure With qualifications in architecture and public policy, Geoff spent 17 years in urban planning and heritage conservation with the State Government before joining the City of Melbourne. His first role with us was in 1996 as Manager of Capital City Planning before he was appointed to the role of Director within a few short years.

Mark Stoermer, Director of Corporate Business Mark is the newest member of the City of Melbourne’s executive team and comes to us after a career in the finance, consulting and IT sector. With qualifications from New York University and the University of California at Berkeley, Mark cut his teeth at JP Morgan and Merrill Lynch before migrating to Australia, where he worked in a series of senior roles before joining us as a Director in 2010.

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Involving the community in our decisions • naming of our newest park in Docklands • The Causeway smoke-free zone • Precinct plans • Walking Plan • Council’s response to the East West Link • Music Strategy.

In addition, we held four major community forums to learn more about our work and allow people to talk to us about any subject of their choosing.

For five years the City of Melbourne has been systematically building a culture where engaging the public in decisions that interest and affect them is standard practice. Our employees are expected to engage the community and are supported to do so via an organisation-wide community engagement framework.

The framework includes: • a small specialist team to support the organisation • training and mentoring programs

This year we took the time to look back and assess how we’ve been performing and, while the results of our independent audit showed we were approaching international best practice in some respects, there also were areas we could improve.

The review found we are an organisation that goes far beyond its legislative requirements in relation to involving our community. Our engagement philosophy, commitment and framework are particularly strong. More than 700 people have been trained in how to engage the public and most of us use a common language and techniques to ensure good results for everyone involved.

Room for improvement includes being more consistent in applying our engagement techniques and in developing better ways to evaluate projects.

• facilitators’ network • practitioners’ network • an online hub Participate Melbourne • formal processes from planning through to evaluation.

Projects that involved significant discussions with the public this year included the: • Housing Strategy • Building a Cycling City • Queen Victoria Market renewal project (see Goal 1 chapter) • Arts Strategy • City Road Masterplan • Melbourne for all People Strategy • Harbour Esplanade redevelopment

Who is our community?

To decide which members of the diverse Melbourne population to involve in a public discussion, our standard practice is to use a stakeholder mapping matrix. Against this we plot all the groups likely to be interested and impacted by our project. From there we work out the most appropriate way to include each group in our work.

Stakeholders typically include: government agencies and departments; utilities such as power and water; business, community and residents groups; the education sector; peak bodies; churches and charitable organisations; residents, ratepayers, students and visitors.

Online or in person?

This year we commissioned research to discover how Melburnians wanted us to contact them about matters that affect them. We spoke to a broad range of residents, visitors, workers and special interest groups to understand our communities’ understanding of and appetite for community engagement. Generally they were keen to be involved in discussions and preferred on-line and face-to-face methods.

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OUR ORGANISATION: COMMUNITY AND STAKEHOLDER ENGAGEMENT

City of Melbourne Community Engagement (CE) Framework FRAMEWORK

OUTCOMES

People • • • • •

Specialist team Training program Mentoring program Facilitator network Practitioner network

Increased capacity of staff to design and deliver CE

PRACTICE • • • • •

Portal Planning Template Contractor Guideline Participate Melbourne Planning, advice and support

POLICY

• Council Plan • Strategic Plan • Policy and Charter

CE is embedded in our organisational culture

City of Melbourne communities and stakeholders provide input to decisions that affect them

The CE policy commits the organisation to practice that is underpinned by our corporate values and IAP2 foundations

Councillors have quality information to make sustainable decisions

Council staff has quality information for policy advice to Council and to support decisions on service delivery

Performance • • • •

Better decisions that result in improved policy and services and greater community satisfaction and wellbeing

City of Melbourne learns and improves its CE practice

Audit Research Program Evaluation Toolkit Lessons Learned Process

People’s panel to budget for our future To manage resources well, we all need to understand the big picture so this year we began work on our boldest, most significant community engagement project yet – inviting members of the public to recommend to us how to prioritise our spending during the next 10 years.

We began by developing a 10-year financial outlook, factoring in service and infrastructure commitments, resourcing projections and climate, population, technological and other challenges.

We hired the newDemocracy Foundation to run an independent process to establish a people’s panel, or citizen’s jury, comprising 43 business people, residents and students who represent the municipality of Melbourne.

Throughout 2014 this panel will learn about and discuss the challenges and opportunities facing the city. They will call upon experts to help inform their views and consider the results of conversations with people across Melbourne, feedback from a budget simulator where people have shown their priorities for a balanced budget and our current 10-year financial outlook.

The people’s panel will develop recommendations for the Council to consider prior to next year’s budget cycle.

(See participate.melbourne.vic.gov.au/10yearplan for more information).

What’s in a name?

Topping the list of hot topics our community took part in this year was not a major strategy development but the naming of a small local park in Docklands. Three potential names were suggested and communicated widely to the active Docklands community, generating significant interest on our Participate Melbourne hub. The result was an overwhelming vote for an indigenous name: Buluk Park.

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CONTINUOUS IMPROVEMENT Continuous improvement – the City of Melbourne Way Lean Thinking, based on the world-renowned Toyota Management System, is the City of Melbourne’s approach to continually improve everything we do to better serve our customers.

Easier

BETTER

FASTER

CHEAPER

Our application of Lean Thinking has evolved over five years from our early trials to an organisational way of working where problem-solving and improvement on behalf of customers is expected of every staff member every day.

staff time allows our people to focus on other important elements of their work, manage backlog and/or absorb the ever-increasing demand created by a rapidly growing population and by our need to provide more services.

Easier, better, faster and cheaper for our customers is our mantra as we chalk up small, medium and large improvements across the organisation.

This year we created a winlog to collect our improvements and set targets, which we met, in the following categories: financial savings, productivity release or gain and increased revenue collection or savings.

Our workforce is transforming into an army of problem solvers as employees at every level of the organisation are trained and supported to spot problems and waste in their work processes and develop a lasting solution their customers will value.

Some save large amounts of time, natural resources and money, others just a bit and some merely relieve a little stress. Collectively, however, every bit adds up, particularly if you consider the benefits over the years. Savings in Winlog measures

The year’s larger-scale improvement work included increasing maternal and child health service capacity, reducing catering costs, improving budgeting and business planning processes and starting to examine how we manage permits across all branches.

The following extract shows the diversity of some of the other improvements achieved for our internal and external customers.

Target

Final

Better for customers (number of quality improvements)

200

223

More productive (number of staff days released)

1500

1981

Cheaper (volume of savings identified)

$1,500,000

$1,541,799

Uncovering our biggest customer interactions To ensure the maximum number of customers are benefitting from our improvement focus, this year we counted and ranked processes that affect the most customers.

All have been or are now being examined to see if we can improve them for customers.

The top 10: visitor booth enquiries, library loans, parking infringement notices, customer calls, valuations and rates, permits, single entries to the Carlton and City Baths, immunisations, Maternal Child Health visits and recreation services.

Our fledgling training business Applying Lean improvement to local government is different to other service organisations.

As word has spread about our improvement model, councils have begun hiring us to teach them because they value our first-hand experience and support we can provide. This year we ran training in New South Wales and Victoria and took a growing number of bookings for the year ahead. Training ranges from a one-day basics session to practitioner courses over several months and organisational lean coaching.

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OUR ORGANISATION: CONTINUOUS IMPROVEMENT

A cross-section of organisational wins from this year’s winlog Action

Result

Redesigned printing process for corporate file labels

Reduced costs by $2000 and staff time by 100 hours a year

Redesigned process for retrieving corporate files from off site

Improved file retrieval time by 12% and saved 200 hours of staff time a year

Improved the process for syringe bin collection

Reduced the contract cost by 40%

Introduced a telephone payment transfer option for customers

Reduced calls to the contact centre by 404 calls a month

Introduced an on-line system for award nominations in one branch

Saved 4500 sheets of paper and between one and four hours per person (applicants and judges)

Improved volunteer recruitment process

Reduced recruitment time from four to two weeks

Improved street trading application process for customers

Number of forms received with the correct information increased by 17%

Introduced shared equipment and resources across our child care centres

Reduced inventory and duplication and removed the need to spend $33,000 a year

Improved scheduling processes at a child care centre

Increased the utilisation rate, increasing revenue by $15,751 and helping to meet high customer demand

Agreed a new process for banking at a recreation centre

Reduced process errors from 50% to 2%

Improved the process for the destruction of confidential documents

Reduced by 25% the amount of confidential information being disposed of incorrectly and reduced costs by $21,600 a year

Improved Valuations Standard Procedures process

Reduced retrieval time by 80%, saving 288 hours a year, while reducing paper use and saving space, worth $12,000 a year

Changed the recycling bin sizes in Degraves Street

Reduced traffic and the number of bins collected, thus removing the need for 40 hours of contractor time a year

Reviewed newspaper use across the organisation

Reduced subscriptions by 20% and costs by $9500 a year

Redesigned and simplified process for impounding abandoned vehicles

The accuracy of the process has increased by 80% and customers can now collect vehicles 61km closer to the city

Reviewed legal subscriptions

Saved $19,092 a year

Converted sit-down branch meetings into a short standing-up meeting at an information board

Saved 416 hours a year

The City of Melbourne Way To help all our employees understand what is expected of us and how we will be evaluated, this year we created the CoMWay pyramid. This simple structure brings together years of thinking related to our aim, our services and the way we are expected to work and act. At the top are our customers, reminding us who we serve, and at the base a list of the climate, population, technological and economic challenges we face, a pressing reminder of why we need to follow the guidance of the pyramid opposite.

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Our people The City of Melbourne strives to make Melbourne great. Our high-calibre, talented workforce is vital to the daily delivery of excellent service to the community and achievement of our long-term vision.

Our people matter to us.

We monitor our staff retention rates as part of Council Plan Goal 7 We recognise that having a healthy and engaged workforce is critical to the long-term sustainability of our organisation.

Creating a safe and diverse workplace, and offering opportunities for learning and development, ensures we will continue to attract and retain the workforce we need to deliver on our commitments.

The National Employment Standards (NES) and the Melbourne City Council (MCC) Award underpin the MCC Enterprise Agreement (EA), which provides the legal framework through which our employment terms and conditions are established for most of our employees.

For executive employees, employment terms and conditions are governed by the NES and individual employment contracts. Policies and procedures are developed at the discretion of the organisation to support good governance and to provide transparency and clarity to all employees about the principles, rules and guidelines that apply.

People managers are required to ensure their employees know the policies to guide their behaviour and to encourage a workplace culture that is safe, supportive and respects differences.

All employees (full-time, part-time and casuals) have access to a range of benefits and services designed to help them maintain a healthy work-life balance and reach their full potential. This includes access to a range of professional and personal development activities, flexible work arrangements, health and wellbeing advice and programmes, and leave variations. We also host The Club, a non-profit association that aims to improve morale and quality of life and create a cooperative work environment. Our people benefit from a wide range of social, recreational and sporting activities and services organised by The Club, ranging from discounted zoo and cinema tickets to subsidised gym memberships and entry to sporting and theatre events.

Currently we are in the process of crafting a People Strategy. The People Strategy aligns to Goal 7: ‘Resources are managed well’. Over the next year we will progress the strategy by introducing a strategic workforce planning model, determine immediate high-risk areas and develop managers who have high-risk areas to implement and manage action plans.

Employee Code of Conduct All our employees are expected to adhere to our Employee Code of Conduct. The code also applies to service providers, representatives and agents who act on our behalf. The document is given to all new employees with their letter of offer.

Enterprise Agreement The City of Melbourne has a single enterprise agreement that covers 95% of employees. The current agreement includes sustainability targets, work conditions and employee benefits. To maintain our position as a fair and flexible employer, we monitor the agreement’s operation and application through a staff consultative committee that meets quarterly.

The EA was operational from December 2013 and has a nominal expiry date of 30 June 2016.

Staff classifications • Classification 1 and 2 – child care workers, school crossing supervisors, fitness instructors, information officers • Classification 3 – child care workers, parking and traffic, office administrative support • Classification 4 – administrative support, environmental health, project officers, kindergarten teachers • Classification 5 and 6 – professionals, analysts, programmers, technical staff, maternal and child health nurses, immunisation nurses, event managers • Classification 7 – team leaders and professionals • Executive – managers, directors and the CEO

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OUR ORGANISATION: OUR PEOPLE

STAFF pROFILE As of 30 June 2014, we employed 1466 people.* Most of our work is undertaken by direct employees of the organisation.

Our staff numbers increase slightly during summer as we have a seasonal operating pool. A breakdown of our direct employees is:

• • • •

984 full-time permanent 273 part-time permanent 147 maximum-term temporary (full-time and part-time) 62 casual staff.

While most employees work in the central city, some are based at other sites across the municipality.

New staff by gender and age 68

80 – 60 –

50

40 –

33

21

20 –

38 12

0– Female < 29 years 11 months

Male

13.22%

6.28%

voluntary and involuntary turnover*

30-49 years 11 months

voluntary turnover only

*Note 13.22% is similar to previous year’s rate of 13.55%

> 50 years

Total number of employees by employment contract and gender

Total number of permanent employees by employment type and gender

800 –

800 –

708

600 –

549

600 –

400 – 200 – 0–

400 –

145 Female

Fixed term/temporary

64

205 503

68 481

200 – 0–

Male Permanent

Female

Permanent Full Time

Male Permanent Part Time

Total workforce by gender

58% 853

42% 613

Male Female *All employee data excludes supervised worker data as this is currently unavailable.

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City of Melbourne executive remuneration Position

Total employment package

Name

Start at COM

Current contract start

Current contract end

CEO

Dr Kathy Alexander $460,000

10 April 2008

1 January 2014

Has resigned, effective 3 December 2014

Director City Design

Rob Adams

$383,617

14 October 1986

15 September 2011

14 September 2014 Has signed new contract

Director City Planning Geoff Lawler and Infrastructure

$361,187

7 October 1996

25 October 2013

24 October 2016

Director

Martin Cutter

$346,967

16 August 2004

1 November 2012

31 October 2015

Director Community Development

Linda Weatherson

$341,231

7 December 1987

19 July 2012

18 July 2015

Director Corporate Business

Mark Stoermer

$311,604

19 April 2010

19 April 2013

18 April 2016

City Business

Equality and diversity Embracing equality and diversity involves recognising the value of our individual differences and treating everyone fairly, equally and with respect.

We strive to provide a work environment that is safe and supportive, free of discrimination, harassment and bullying, and where all individuals associated with the organisation treat each other fairly and with respect. We are an equal opportunity employer and we strive to lead in demonstrating the value of diversity in the workplace by: • promoting equity in employment • providing a work environment that is free of discrimination

We have a network of volunteer contact officers trained to help employees identify options and resources to deal with workplace discrimination and harassment. Every few years we conduct a Diversity Census to gain a snapshot of the current diversity make-up within our organisation. This helps us develop programs, policies, initiatives and strategies to suit the diversity of our employees now and in the future, allowing us to grow in the area of diversity. The next diversity Census will be in 2016.

• making employment decisions based on merit.

In 2014, three branches got together to develop and implement a suite of policies and procedures to support people managers and staff to identify and address gender inequality in the workplace and change social norms that condone violence against women. We participated in the United Gender Equity Staff Attitude Survey and these results have formed our benchmark. Our new policies and procedures, in addition to our existing work supporting equal opportunity and diversity, include: Gender Equity; Preventing Violence against Women; Response to Family Violence; Preventing Violence Bystander, and Sexual Harassment.

Training for employees and people managers will be rolled out in 2014–15.

Improves Employee Satisfaction and Performance

Improves Organisational Perceptions and Reputation

Increases Recruitment Options

Enhances Attraction and Retention

BENEFITS OF DIVERSITY

Strengthens Equal Opportunity

Improves teamwork

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Sustains Innovation and Creativity

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OUR ORGANISATION: OUR PEOPLE

1

female to

0.73

1

males

award employees*

1 1.45 male to

female to

2.18

males

executive employees**

1 0.46

females

male to

females

Ratio of basic salary and remuneration of women to men by employee category Definitions: *Award employees: Class 1 to Class 7 (also including Exec A staff) **Executive employees: Exec 1 to Exec 5

Employee classification by age group Age Group

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

Class 7 / Exec A

Exec

Grand total

Under 29 years 11 months

27

32

49

36

28

8

2

0

182

30-49 years 11 months

13

61

150

171

188

163

100

22

868

Over 50 years

20

34

89

47

68

74

52

32

416

Grand Total

60

127

288

254

284

245

154

54

1466

Employee classification by GENDER Gender

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

Class 7 / Exec A

Exec

Grand total

Female

31

83

162

167

176

136

81

17

853

Male

29

44

126

87

108

109

73

37

613

Grand Total

60

127

288

254

284

245

154

54

1466

Employee health and safety We strive to provide a safe and healthy workplace and environment for our staff, suppliers, contractors, volunteers and visitors. Each person is responsible for recognising workplace hazards and correcting or reporting them in a timely manner.

Our Occupational Health and Safety Policy Statement outlines our approach to safety in the workplace. We manage risk and occupational hazards by continuously evaluating and improving work environments and our occupational health and safety (OHS) management system.

Total Recordable Injury Lost Time Injury Frequency Rate (LTIFR)* Frequency Rate (TRIFR)** 7.6

16.3

This system is audited against the Australian Safety Standard AS/NZS 4801:2001 and our accreditation was maintained in 2013–14. This is the first year we have reported OHS rates data. The data below is representative of our employees only; currently we do not record this data for contractors. There were zero fatalities recorded during 2013–14.

We have a proactive injury prevention strategy and an early intervention approach to all work-related injuries and illnesses that focuses on sustainable return-to-work programs.

Occupational Disease Rate (ODR)

Absentee Rate (AR)***

0

3.46

Total work-related fatalities 0

* LTIFR calculated as number of Lost Time Injuries recorded in the reporting period divided by total hours worked times 1,000,000 ** TRIFR calculated as number of Lost Time Injuries plus number of Medical Treatment Injuries (MTI’s) recorded in the reporting period divided by total hours worked times 1,000,000 *** Absentee Rate is total sick leave absences as a percentage of ordinary time available. Last year’s AR rate was 3.42% as reported in Annual Report.

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Lost Time and Medically Treated Injuries by type Number of reported incidents

Nature of injury (medically treated) Manual handling

3

Occupational overuse syndrome

5

Other types of accident

7

Slips, trips and falls

8

Striking against stationary object

1

Vehicle accident

3

Mental stress

7

Total

34

WorkCover claims We received 26 WorkCover claims in 2013–14. Our WorkCover premium rate is now at 0.52%. Although this is a rise from

last year’s 0.34%, it still remains significantly lower than the local government sector rate of 1.3566%.

Standard claims

Minor claims

Premium incl GST ($)

Premium as % of remuneration

2013–14

14

12

697,432.82

0.52

2012–13

15

7

420,264.55

0.34

Financial year

Employee development and training For the City of Melbourne to derive greatest benefit from its development dollar, it is critical to know the capabilities we need from our employees and leaders and where there are gaps. From there, our comprehensive range of staff training and development services can be tailored accordingly.

and our people are met by our on-the-job learning and experiences (70%); coaching and feedback (20%); and formal training (10%). This ranges from developing core skills needed by employees to ongoing professional and leadership development.

During the past 12 months, groups of leaders have been involved in robust debates to consider the culture we desire, along with the behaviours we expect and capabilities we require.

Last year we ran 112 courses through our City of Melbourne Learning program – a total of 5710 hours. A breakdown of average training hours by gender and classification can be seen on page 79. We also welcomed four trainees into the organisation as part of our Indigenous Traineeship for Aboriginal and Torres Strait Islanders.

Results include refreshing the set of behaviours expected of staff that are aligned to our corporate values (summarised on our City of Melbourne Way pyramid, see page 73), agreeing a set of nine capabilities expected of our leaders (see next page) and drafting a list of the capabilities expected of other staff.

Collectively this work is making its way into position descriptions and performance reviews, giving us the information we need to ensure the needs of the organisation

As outlined on page 83, the City of Melbourne’s Fraud and Corruption Policy is a key part of its risk management approach. All employees are made aware of updated policies, procedures and training requirements via regular CEO messages. Page 79 shows the total number of employees who received training on anti-corruption.

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OUR ORGANISATION: OUR PEOPLE

The nine skills expected of our leaders As agreed in 2013–14, a City of Melbourne leader is expected to: coach and develop others; lead improvement; collaborate and build partnerships; align services to customer needs; think strategically; manage resources well; develop themselves; build effective teams; and manage performance.

Average training hours by gender and classification Gender

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

Class 7 / Exec A

Exec

Total Ave.

Female

4.9

3.5

8.4

8.3

9.0

9.7

10.1

9.9

8.0

Male

4.4

2.6

19.3

11.7

11.1

8.8

10.5

8.1

9.6

Anti-corruption training by classification Class 1 Number

21

Class 2 11

Class 3 43

Class 4 29

Class 5 29

Class 6

Class 7 / Exec A

26

12

Exec 2

Total 173

Koori trainee shines In 2008 we established an Indigenous Traineeship for Aboriginal and Torres Strait Islanders. Each year four-to-five trainees are recruited to work in different areas for 12 months, gaining work experience and on-the-job skills, while obtaining a nationally recognised certificate in Business Administration through APlus Apprentice and Trainee Services.

In September, one of our trainee graduates, Latoya Baker, was awarded the Koori Trainee-of-the-Year at the Aplus graduation ceremony. It was a fantastic achievement for Latoya, who completed her traineeship in Engineering Services in February and successfully obtained a fixed-term role in the same team until December this year.

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Our Environmental Performance The City of Melbourne works across Melbourne to improve environmental outcomes by meeting ambitious targets, introducing new technologies and supporting others to take action.

We also monitor our environmental actions as part of Council Plan Goal 5 Our approach to managing our environmental performance is driven by our Eco City goal and the strategies that support it, including Zero Net Emissions by 2020, Total Watermark – City as a Catchment and the Climate Change Adaptation Strategy. We have identified four core impact areas to focus our efforts; greenhouse gas emissions, energy, water and waste.

This year we updated our strategic direction for greenhouse gas emissions and water management and focused on getting the basics right by improving the systems and process associated with measuring and reporting our environmental impacts.

We also have focused on improving the way we support our staff to achieve better environmental outcomes from the work they do. A new sustainability learning and development program, Sustainability Basics, was developed and launched to support this.

Water management Our ambition is a healthy city in a healthy catchment. We want the whole of Melbourne’s community – residents, workers and businesses alike – to think about water and its role in our future.

As one of the biggest water users in the municipality, we have a leadership role to play in continuing to implement integrated water cycle management. Rapid climate change is resulting in less but more intense bursts of rainfall.

We need to be clever about how we design our city to ensure we use the right water for the right purpose, while minimising flood risks.

Total water withdrawal by source Source

Volume of water withdrawn

Surface water, including water from wetlands, rivers, lakes and oceans*

68,804 KL

Groundwater

Not applicable

Rainwater collected directly and stored by the organisation**

16,000 KL

Wastewater from another organisation

Not applicable

Municipal water supplies or other water utilities***

817,000 KL

* Surface water is total water withdrawn from Royal Park wetland ** From stormwater harvesting systems; manual and automatic (IRRInet) water meters readings *** Municipal water supplies or other water utilities has been estimated from total potable water cost for this year (2013–14) from Tech One data. The figure quoted here refers only to the water used in open space areas and does not include water used in City of

Melbourne buildings. Total water consumption is reported under the National Carbon Offset Standard (NCOS). As NCOS data is published later in the year, this report includes partial data only. With the move to a new environmental data management system, we expect to be able to include total water consumption in future reporting years. # Standards, methodologies, and assumptions used: data calculated from water meter readings and water bills data.

Continuously improving water management Using water efficiently in landscaping and open space areas is one of the most important elements in the way the City of Melbourne manages water. We are continuously improving the way we do this by: • programming irrigation to make the most efficient use of rainfall • using stormwater harvesting systems efficiently • continuously monitoring and carefully managing irrigation systems, water use, soil moisture and plant performance • developing soil maps and improving the capability of soil to hold and store water.

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OUR ORGANISATION: ENVIRONMENTAL PERFORMANCE

Energy and emissions The largest contributor to the City of Melbourne’s greenhouse gas emissions footprint is our electricity consumption. We use electricity in our administration buildings, community buildings such as childcare centres and, most significantly, in public lighting. Direct greenhouse gas emissions also include the use of natural gas, transport, stationary fuels and refrigerants. Importantly, we also take into account indirect emissions from our subsidiaries and supply chain, which includes air travel, paper use, employee commuting, the use of taxis and hire cars, street cleaning, tourist shuttle buses, waste disposal and postage.

The baseline year for our energy and emissions data is 2010–11. This was the year we created our corporate inventory. This inventory was first audited in 2011–12 and submitted for us to become accredited as a carbon neutral organisation under the Federal Government’s National Carbon Offset Standard. All of our emissions and energy reporting is guided by the National Greenhouse and Energy Reporting Act (2007) and National Carbon Offset Standard (NCOS) Carbon Neutral Program. Due to issues around the timing of the Annual Report and our reporting obligations within these frameworks, this Annual Report only includes data for 2012–13. Final 2013–14 data will be published online within the sustainability section of our website following re-certification of our carbon neutral status.

We aim to reduce our greenhouse gas emissions 10% by 2018 based on baseline year 2010–11. You can see how we are tracking against this target under our Goal 5 performance section Energy consumption within the organisation (GJ) 2010–11

2011–12

2012–13

Total fuel consumption from non-renewable sources

23,446

26,465

25,568

Total fuel consumption from renewable sources

2

-

3

Total electricity consumption from non-renewable sources

91,980

55,954

71,523

Total electricity consumption from renewable sources

144*

36,197

15,042

Total energy consumption

115,571

118,616

112,136

2010–11

2011–12

2012–13

Scope 1

1,193.34

1,449.75

1,394.66

Scope 2

18,026.02

16,964.28

16,704.77

Scope 3**

34,290.19

33,644.58

30,930.73

Total

53,509.56

52,058.62

49,030.15

Gross greenhouse gas emissions* (tCo2-e)

Source of emission and conversion factors for energy and emissions data: Department of the Environment National Greenhouse and Energy Reporting (Measurement) Technical Guidelines – 2013. * This figure includes only solar and co-generation from City of Melbourne operations (GreenPower data not available) ** Notes on categories and activities included in Scope 3 calculation: • Transport (flights, hire car, taxis, employee commuting, public transport)

• Subsidiaries (Queen Victoria Market services, city maintenance - roads & trees) • Services (civil design and traffic engineering services, courier services, parks and gardens services, postage, promotion and marketing services, street cleaning, tourist shuttle bus, vehicle towing, coin collection, security, waste collection, recreation services, building and property maintenance, asphalt production) • Goods (office paper, water, oils, solvents, lubricants)

• Energy (electricity scope 3, natural gas scope 3, unleaded petrol scope 3, street lighting not under operational control)

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OUR ORGANISATION: ENVIRONMENTAL PERFORMANCE

Waste management We are working hard to improve recycling, reduce waste sent to landfill and minimise the amenity and environmental impact of collecting and storing waste.

Waste in landfill releases greenhouse gases into our atmosphere and by-products into our soil whereas recycling allows embodied energy and natural resources to be captured for further use. Waste storage is linked with dumped rubbish, vermin and overflowing bins.

In 2014–15 we will review and update the Integrated Waste Management Program – including setting a waste-to-landfill target – and build on the success of programs that have recently been trialled. These include the high-rise recycling program, laneway compactor installation, Degraves St Recycling Facility and Green Money recycling rewards program. We will continue to introduce better ways to manage waste, increase recycling and improve amenity and environmental outcomes.

Total weight of waste by type and disposal method for Council operations*

105.34

tonnes

recycling

282.74

tonnes

landfill

*Information provided by waste disposal contractor. Waste data provided by contractor on monthly basis (kilograms of paper, number of cardboard boxes, number of 240L bins collected for commingled recycling and landfill).

There is no waste-to-landfill target set for Council operations. A target will be developed during FY2014–15 as part of broader work developing a waste strategy for the municipality.

Knowledge, skills and systems – getting it right for a sustainable city Our ambition is to be a world-leading sustainable organisation. To achieve this we must constantly develop new ways to build a culture of sustainability within our organisation. 2013–14 was a busy year in this regard.

We developed new staff training and engagement opportunities to inspire and educate all employees to have a consistent understanding of our sustainability impacts, performance and targets.

Sustainability Basics is an interactive foundation course that has trained more than 200 participants since its launch in July 2013. It helps staff understand some of the systemic global issues exposing the city to future vulnerability and actions each of us can do to improve sustainability outcomes for the city.

Greenway, a staff sustainability expo, was held in May as part of our staff engagement program, CoM Green.

More than 250 employees attended to learn, discuss, hear from industry experts, meet green suppliers and hear case studies from colleagues. It was about making the sustainable attainable.

We also made an investment in C-CAP Council, an environmental data management system to measure, manage and report on our environmental performance.

This will help us manage assets to meet sustainability targets and assess future scenarios.

Understanding biodiversity’s importance For the past year we have been working with research partners to better understand our city’s biodiversity and ecology. In February, more than 600 community members joined our conversation with the Stockholm Resilience Centre in the Deakin Edge to discuss the potential of cities to take a leadership role on biodiversity.

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OUR ORGANISATION: RISK MANAGEMENT

RISK MANAGEMENT The City of Melbourne has four policies to help guide our risk management approach: the Risk Management Policy, Business Continuity Policy, Crisis Management Policy and Fraud and Corruption Policy. These are enacted through the Risk Management Framework and various processes and procedures. They also detail the objectives and key responsibilities and timeframes for the review, reporting and approval of risks. Our risk management approach is based on the international standard for risk management, AS/NZS ISO 31000:2009.

Risk management planning is done as an organisationwide exercise, covering the top strategic risks as well as operational and project risks. It also is part of the daily business activities of individual branches and contractors.

Integrated quarterly and annual reporting of strategic risks is undertaken by the CEO and directors; key risks are reported to the Audit Committee throughout the year.

Emergency management: ‘Exercise Afloat’ Each year we test our emergency response and recovery plans in conjunction with business continuity, crisis and issues management plans to ensure they align well.

This year we ran Exercise Afloat, a simulated emergency to practise our responses to a vessel collision in Victoria Harbour, Docklands. This was the first field and deployment exercise organised and led by us and a first for a major Victorian marina. Representatives from the Victoria Police, Metropolitan Fire Brigade, Victoria State Emergency Service, Department of Health and Human Services, Department of Transport, Planning and Local Infrastructure and Ambulance Victoria were members of the Exercise Steering Group and participated, along with City of Melbourne staff. There were about 170 participants and observers from other organisations including marinas across Victoria and the exercise attracted significant positive coverage in the major television and radio news broadcasts on the day.

We are acting on recommendations arising from the exercise, which will strengthen our ability to respond to an emergency in Melbourne.

Adapting to climate change Adapting to climate change is considered one of our key strategic risks. Our strategy and four-year action plan outlines what we will do in the next four years to prepare the city and our organisation for our changing climate, based

Consequences for the organisation

on the following associated risks: reduced rainfall, drought, extreme heatwaves, bushfires, intense rain, wind storms and sea level rises. Failure to respond to these risks could have the following potential consequences:

Consequences for the municipality

• Inability of our workforce to provide community services

• Negative impact on public health and mortality

• Increased severity and frequency of floods, drought and fires may cause major damage or the loss of key uninsured assets and infrastructure: parks and gardens, roads, drains, infrastructure and buildings valued below the excess level. Assets may be uninsured due to a financial justification (for example we do not insure our trees or roads) or because certain classes of insurance protection are unavailable

• A community not adequately prepared • Community concern if we fail to respond • Negative impact on the liveability and economic prosperity of Melbourne • Interruption to critical infrastructure such as transport, utilities and health services

• Reputational issues and potential liability exposure • Adverse effects on economic investments

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OUR ORGANISATION: RISK MANAGEMENT

Managing Climate Change Risks

Our study of heat intensification in the city found the cost of transport delays, increased energy demand, health impacts, increased mortality, anti-social behaviour and environmental impacts could reach $1.86 billion over a 40-year period from 2011 to 2051. Following the 4-day heat wave in February 2014, businesses reported a downturn of approximately $37 million.

Our actions in response to these risks and consequences fall in four main areas: 1.

Raising awareness in the community about preparing for intense climate events

2. Ensuring infrastructure and planning considers adaptation strategies

In terms of the costs of actions taken to address climate change, in 2013-14, we allocated $10 million on research and knowledge generation and enhancing and adapting our drainage and green infrastructure.

3. Building the resilience of our natural environment 4. Developing our knowledge of best-practice adaptation and sharing this with the community.

Broader environmental sustainability is addressed at a strategic and operational level across the organisation.

It is central to the way we work.

Building a resilient city This year Melbourne was named one of the first 32 cities to join the 100 Resilient Cities Challenge. The Rockefeller Foundation defines resilience as ‘the capacity of individuals, communities, institutions, businesses and systems within a city to survive, adapt, and grow no matter what kinds of chronic stresses and acute shocks they experience’. Our Chief Resilience Officer will work with our community to develop a Resilience Strategy for Melbourne to build on work to address the impact of heat on the city including the continued implementation of our Urban Forest Strategy, research on economic impacts and community education.

Financial implications and costs of climate change As part of developing our understanding of the potential financial implications of climate change, we studied the economic impact of flooding in two areas of the municipality, Southbank and Arden-Macaulay (see Port Phillip Bay Adaptation Pathways Project www.abm.org.au).

We found the cost of flooding in Southbank could increase from an average $3 million per year currently to more than $19.3 million per year by 2100 if no adaptive action is taken, and in Arden-Macaulay, from $220,000 per year to $2.5 million per year in 2100.

Integrated

Accepting of change and uncertainty Meet basic needs

Inclusive

Foster economic prosperity

Support livelihoods

Diverse

Generate and share information and innovation

Resourceful

Safeguard human life and health

Protect, maintain and enhance assets

City

Enforce the rule of law and justice

Reflective

Build cohesive communities with engaged citizens

Adaptive

Robust

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OUR ORGANISATION: AUDIT

AUDIT Operations Audit Committee

Internal audit

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. The committee oversees the activities of our external and internal auditors and gives us independent advice on appropriate accounting, auditing, internal control, business risk management, compliance and reporting systems, processes and practices within the organisation.

Our internal audit service helps us, and our subsidiaries, CityWide Solutions Pty Ltd and the Queen Victoria Market Pty Ltd, maintain strong, relevant and effective internal controls. It reports to the Audit Committee and, since July 2009, has been contracted to Deloitte Touche Tohmatsu.

This year we completed a tender process for a new contract, which was awarded to Oakton Services Pty Ltd from July 2014.

The Audit Committee met five times during 2013–14 and considered issues including our: • risk profile • statement of annual accounts and performance report as well as reports on our wholly owned subsidiaries

External audit The Victorian Auditor-General’s Office is responsible for our external audit and that of our subsidiary companies.

It focuses on three key areas: strategic planning, detailed audit system testing and financial statements.

• occupational health and safety risks • information technology risks • fraud and corruption risks • business continuity planning and exercises • governance responsibilities applicable to associated entities and trusts in which we have either an indirect interest or stake • legal action reports • internal audit reports • performance audits by the Victorian Auditor General’s Office.

Audit Committee members Our Audit Committee comprises three Council representatives and four independent members. For 2013–14 they were: Chair Richard Moore, Chair Theresa Glab, Therese Ryan, Stuart Hall, Deputy Lord Mayor Susan Riley, Future Melbourne (Finance and Governance) Committee Chair Councillor Stephen Mayne, Councillor Rohan Leppert.

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Our partnerships and charters The following is a list of external charters and principles (including city-to-city memoranda of understanding) the City of Melbourne subscribes to or endorses. All are nonbinding and voluntary.

Date of adoption

The range of stakeholders involved in the development and governance of the initiative

International Safe Communities

2014

World Health Organisation Collaborating Centre on Community Safety Promotion

Cooperative Memorandum of Understanding between the City of Melbourne and the Tianjin Municipal People’s Government

2014

Tianjin Municipal People’s Government and City of Melbourne

100 Resilient Cities Centennial Challenge

2013

Various cities as part of the global network

The Global Reporting Protocol

2013

C40 and International Council for Local Environmental Initiatives (ICLEI) Local Governments for Sustainability

White Ribbon Australia

2012

White Ribbon Board

Memorandum of Understanding between the City of Melbourne and the Confederation of Indian Industry

2006

Delhi–Melbourne Strategic City Alliance

C40 Climate Leadership Group

2005

Sixty-seven global cities

Milan–Melbourne Sister City Relationship

2004

City of Milan, City of Melbourne, Italian Chamber of Commerce and Industry, RMIT and Monash Universities, Melbourne Movement, Victorian Government, Italian Consulate General

Business Partner City Network

1999

Cities and chambers of commerce of 13 Asian regions

St Petersburg–Melbourne Sister City Relationship

1989

City of St Petersburg and City of Melbourne

Boston–Melbourne Sister City Relationship

1985

City of Boston, City of Melbourne, Melbourne-Boston Sister Cities Association

Mayors for Peace

1985

Various cities as part a global network hosted by the City of Hiroshima

Thessaloniki–Melbourne Sister City Relationship

1984

City of Thessaloniki, City of Melbourne, White Tower Association, European Youth Capital

Tianjin–Melbourne Sister City Relationship

1980

Tianjin Municipal Government Foreign Affairs Office, Tianjin District Government Agencies and industry development zones, Tianjin Commission of Commerce, China Council for the Promotion of International Trade, Tianjin Education Commission, City of Melbourne, RMIT University, peak industry bodies

Osaka–Melbourne Sister City Relationship

1978

Municipal, prefectural governments of Osaka, City of Melbourne, Australian and Victorian governments, peak industry bodies, Japanese Consulate

Name

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OUR ORGANISATION: PROCUREMENT AND SUPPLY CHAIN

Our Procurement And Supply Chain In accordance with the Local Government Act 1989 (Vic) the City of Melbourne has developed a procurement policy encompassing the principles, processes and procedures applied to the purchase of all goods, services and work by the organisation.

Our procurement policy states that in procuring goods, work and services under a contractual arrangement, we will: • support our corporate strategy, aims and objectives • ensure we achieves best value in terms of time, cost and value • establish and put in place appropriate performance measures • commit to achieving sustainability objectives • provide effective and efficient commercial arrangements.

The policy uses a sustainable approach to procurement to reduce the social, financial and environmental impact of the procurement cycle. As a result we seek to procure environmentally preferred products and services and to do business with contractors and providers who have similar sustainability objectives and policies. However, we do not screen new suppliers using sustainability criteria per se.

Whenever practicable and relevant, we give preference to the supply of goods, machinery or material manufactured or produced in Australia or New Zealand, and work collaboratively with suppliers to achieve these objectives.

The organisation has a procurement and corporate contract management system that prescribes best practice methodologies in its contract management and processes and is adhered to at all times.

During 2013–14, we processed 52 tenders and awarded 49 service and capital contracts.

Contracts were awarded or extended in the following key service categories (not including miscellaneous one-off services): • marketing of the city and events • event delivery • town hall venue management • media services • tourist shuttle • consultancy and other work.

See also melbourne.vic.gov.au/AboutCouncil/Tenders/ Pages/Registerofmajorservicecontracts.aspx for a list of all current major service contracts greater than $1 million annually.

For large service contracts with a value greater than $500,000, strategic service reviews are carried out to determine whether or not the service is still required, if it should continue to be contracted out or brought in-house and whether the service meets our sustainability objectives.

However, there is no centralised system for monitoring compliance. Note: these reviews do not apply to capital works contracts.

We are carrying out a review of our procurement delivery model to explore possible improvements to current practice.

This includes looking at a variety of options to deliver better value for the organisation and achieve more sustainable outcomes through procurement.

There were no major changes in 2013–14 in our procurement structure, the methods of carrying out procurement objectives and functions, nor in our supplier relationships.

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Interacting With Customers Our customers are our community. In interacting with them, we are guided by certain legislative standards and requirements. We also have a general commitment towards providing a positive experience to those we serve. For further information on the latter, see our performance under Goal 7 on pages 58 to 61.

Legislative compliance The following pieces of legislation set out basic standards for how we look after our customers’ interests.

Information Privacy Act Standards set out by the Information Privacy Act 2000 (Vic) and our 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 help staff and members of the public with privacy-related queries or issues.

Two privacy complaints were received by the organisation during the 2013–14 financial year. Both were resolved internally. No complaints from regulatory bodies were received and no losses of customer data occurred.

Disability Discrimination Act The City of Melbourne strives to ensure equity of access in all in planning, community support and service delivery functions in accordance with the Disability Discrimination Act 1992 (Cth) and the Disability Act 2006 (Vic).

Carers Recognition Act We have taken all practicable measures to comply with our responsibilities under the Carers Recognition Act 2012 (Vic). We have promoted the principles of the Act to people in care relationships who receive City of Melbourne Home and Community Care (HACC) services, to people in care relationships and to the wider community through ways including: • providing information via our intake and information service • assessing and responding to the needs of primary carers • recognising the role of carers by including carers in the assessment, planning, delivery and review of services that impact on them and their role as carers • providing respite and planned activity services to provide the primary carer a break from caring responsibilities • providing links to Victorian Government resource materials on our website • providing information to organisations represented in Council and community networks.

We made progress this year towards our vision of an accessible and inclusive city for all through implementation of our Disability Action Plan. This work included mobility equipment for hire, access upgrades on footpaths and access audits at the Boyd and Kathleen Syme community centre developments. The capital works program allocated $660,000 to ensure compliance with the Disability Discrimination Act. The MetroAccess Community Building Program co-ordinated the engagement and participation of people with a disability in community grants programs, Neighbourhood Development projects and advocacy for reforms such as the Disability Insurance Scheme and the Parliamentary Inquiry of Social Inclusion of Victorians with a Disability 2014.

Our services have policies that satisfy Community Care Common Standard, which incorporate recognition of carers in relation to services that impact on them in their role as carers.

Protected Disclosure Act To access our procedures, please refer to melbourne. vic.gov.au/AboutCouncil/financegovernance/Pages/ ProtectedDisclosures.aspx

Our four-year plan recognises the importance of balancing the needs of pet owners and those of other community members in our ever growing and developing city.

Domestic Animals Act We prepare a Domestic Animal Management Plan every four years, in consultation with the Victorian Department of Environment and Primary Industries, as a framework to guide our decisions.

As part of delivering the 2013–2017 plan we have continued to increase engagement with the community, including increasing the presence of officers in parks and holding popup events to provide responsible pet ownership education.

During 2013–14 no disclosures were notified to the Independent Broad-based Anti-corruption Commission.

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OUR ORGANISATION: INTERACTING WITH CUSTOMERS

Customer health and safety Customer health and safety is addressed through our risk management procedures and responsibilities under occupational health and safety legislation (see pages 83 and 77). Health and safety impacts are assessed for all our services and products in accordance with legislation, our occupational health and safety management system

and internal policies and procedures. This requirement is evidenced through internal and external audit results.

Due to the diverse nature of our services and products, no statistical evaluation is undertaken on the percentage of services and products for which health and safety impacts are assessed for improvement.

INNER MELBOURNE Action plan 2013-14 The Inner Melbourne Action Plan (IMAP) is a long-running collaboration between the cities of Melbourne, Port Phillip, Stonnington, Yarra and Maribyrnong. IMAP has identified 11 regional strategies and 57 actions for the inner Melbourne region. About 75% of these actions are complete or are being implemented.

In addition, the Victorian Government approved the Water Sensitive Urban Design local planning policy, jointly developed by the IMAP Councils, and IMAP was awarded a University of Western Sydney Partnership Award for involvement in the Australian Community Land Trust Manual research and development.

Two major IMAP projects were completed this year.

The Green Roofs, Walls and Facades project team, led by the City of Melbourne and in conjunction with the University of Melbourne, developed the Growing Green Guide Manual, its website growingggreenguide.org and the Policy Options and Demonstration Sites reports. This project was funded

by IMAP councils and the Victorian Government through the Victorian Adaptation and Sustainability Partnership.

Subsequently, IMAP councils partnered with the University of Melbourne and Melbourne Water on a research project ‘Mimicking natural ecosystems to improve green roof performance’, which has been awarded a three-year Australian Research Council (ARC) grant.

Looking ahead With the addition of the City of Maribyrnong, which became a full IMAP committee member in July 2013, and in response to the publication of Plan Melbourne, the IMAP Implementation Committee agreed to review the Inner Melbourne Action Plan in 2014. A new draft plan is to be developed by the end of the year, with input from all partner councils and their staff.

The City of Stonnington led the Reduced Through-Traffic Study, which looked at metropolitan area car trips based on information from the Victorian Integrated Survey of Travel and Activity (VISTA). By assessing the roads on each trip, through-traffic could be estimated for each municipality.

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KSA PERFORMANCE STATEMENT

City of Melbourne 2013–14 Performance Statement Introduction

100% Complete = Achieved

In accordance with section 127 of the Local Government Act 1989 (Vic), the City of Melbourne must provide a description of Key Strategic Activities (KSAs) to be funded in the 2013–14 Annual Plan and Budget.

80-89% Complete = Partially achieved

Each year the City of Melbourne conducts a thorough planning process to identify the KSAs and they are published in the Council’s Annual Plan and Budget.

The City of Melbourne again adopted the framework from the Victorian Auditor General’s Office Better Practice Guide to prepare the KSAs. In doing so, we developed cost, time, quality and quantity measures and targets for the KSAs. Depending on the nature of the KSA some of these elements were found to be more relevant and material than others, therefore not all KSAs have measures and targets for all four elements.

Rating Scale For the 2013–14 Performance Statement, the City of Melbourne has used a rating scale based on a ‘percentage complete’ result against targets set at the beginning of the year and published in the 2013–14 Annual Plan and Budget. This year we have continued to use the ‘percentage complete’ rating as we believe it gives stakeholders a very specific indication of the actual result. However, in recognition of the importance of a clear statement of achievement, we have applied the following consistent rating scale to the Performance Statement:

90-99% Complete = Substantially achieved Less than 80% Complete = Not achieved Cost measures are not included in the above rating.

The method for determining percentage complete starts with the professional judgement of the responsible officer who weighs up what has been achieved against what was planned. A review process then occurs where the percentage is reviewed by the appropriate manager and then the responsible director. The final determination of percentage complete is jointly reviewed by the CEO and directors.

Summary At year end, 23 of the audit measures were achieved and four were substantially achieved.

External factors impacting on achievement of KSAs The City of Melbourne’s ability to implement KSAs can be impacted upon by external matters outside of its control.

In most cases, KSA measures are established to focus on matters specific to our role. However, this is not practical in all cases, especially where an external reader needs to understand the full context of the KSA. The following Performance Statement outlines the City of Melbourne’s achievement against the 9 KSAs for 2013–14.

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GOAL 1 a CITY for people Priority: Contribute to developing sustainable pathways out of homelessness

KSA 1A HOMELESSNESS STRATEGY Complete initiatives from the Homelessness Strategy that contribute to sustainable pathways out of homelessness Overall Rating

Performance Statement The Homelessness Strategy had nine deliverables, which included the provision of services and activities to people experiencing homelessness, completion of research projects and delivery of year one actions in the Prevention of Violence against Women Strategy. All deliverables were completed with budget savings.

Measures

Achieved

Type

Target

Year End Actual

Rating

Project completed on time

Time

30 June 2014

All deliverables completed as planned.

Achieved

Contracts with service providers for those experiencing homelessness have quality frameworks and a track record of delivering outcomes for the target group

Quality

100%

100%

Achieved

The number of people participating in projects or initiatives that foster pathways out of homelessness

Quantity

210

439 total participants in 2013–14.

Achieved

Project completed within budget

Cost

$543,200

$491,566

Not rated

Priority: Provide community infrastructure commensurate with the municipality’s growing population

KSA 1B QUEEN VICTORIA MARKET RENEWAL ENGAGEMENT Complete initial community engagement for Queen Victoria Market precinct renewal including project announcement and gaining input and agreement to vision Overall Rating

Performance Statement The report from the second phase of community engagement for the Queen Victoria Market (QVM) renewal project was released in June. Overall, this report shows good alignment between the City of Melbourne and community and traders’ expectations in relation to the QVM precinct renewal. The draft QVM master plan is expected to be released for community engagement by 31 December 2014.

Measures

Achieved

Type

Target

Year End Actual

Rating

Project completed on time

Time

30 June 2014

Phase One and Phase Two engagement completed on time.

Achieved

Level of trader endorsement to vision

Quality

70% of traders endorse vision.

General consensus achieved around the case for change as recorded by independent consultants.

Achieved

Number of people consulted about proposal

Quantity

500 people participate in engagement.

More than 900 actively engaged participants in November 2013 and a further 700 in May 2014.

Achieved

Project completed within budget

Cost

$100,000

$113,000.94

Not Rated

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GOAL 2 a CREATIVE CITY Priority: Increase access to and participation in creative expression and arts and cultural experiences, including music

KSA 2 ARTS STRATEGY Develop the City of Melbourne 2014-17 Arts Strategy Overall Rating

Performance Statement The Council endorsed the Arts Strategy 2014–2017 on 10 June 2014. The strategy aligns with the Creative City goal and associated four-year priorities of the Council Plan 2013–2017. It provides a strategic vision for the Council’s delivery of the Creative City goal through the arts.

Achieved

More than 1000 people participated in the first phase of community engagement in November and December 2013 and 1262 contributions were received. Thirty-seven written stakeholder submissions were received during the four-week public exhibition of the draft strategy.

Measures

Type

Target

Year End Actual

Rating

Project completed on time

Time

Final draft of the Arts Strategy available to the public by 30 June 2014.

Final draft strategy presented to Future Melbourne Committee for endorsement and available for public viewing 10 June 2014.

Achieved

Proportion people (surveyed) reported endorsing the Council's vision for a Creative City through the Arts Strategy

Quality

70%

Of the 37 submissions received on the draft strategy, 89% of survey respondents reported the commitments of the strategy as very or extremely important.

Achieved

Number of people consulted and/or surveyed in the development of the Arts Strategy

Quantity

500

About 1000 people engaged in the consultation period during November and December 2013.

Achieved

Project completed within budget

Cost

$31,470

$30,853.16

Not rated

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GOAL 3 a Prosperous CITY Priority: Support innovative and emerging sectors

KSA 3 FOUR-YEAR ECONOMIC DEVELOPMENT FRAMEWORK Deliver a four-year economic development framework that will support and grow the key innovative and emerging sectors that contribute to Melbourne’s economic, social and environmental sustainability Overall Rating

Performance Statement Overall the project has been successfully completed. Following several iterations, the resulting product is a well-researched written statement about the municipal economy and what the City of Melbourne does and will do to “build prosperity together” with the local business community. The document aims to provide information to the business and investment community and also serves as a promotional tool to market the municipality to different sectors.

Measures

Substantially Achieved

Type

Target

Year End Actual

Rating

Project completed on time

Time

The framework is complete and presented to the Council by 31 December 2013.

The document required a number of revisions that resulted in delays.

Document completed May 2014.

Substantially Achieved

Stakeholder awareness

Quality

Increased stakeholder awareness.

An executive summary document was distributed to 210 direct stakeholders in July 2014. Broader engagement is scheduled for 2014–15.

Substantially Achieved

Project completed within budget

Cost

$0 Budget. Leverage existing resources in the City Business Division to complete the Economic Development Framework within agreed scope and on time.

Overspend of $47,460 due to unbudgeted production and design costs.

Not rated

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GOAL 4 a Knowledge CITY Priority: Continue to provide high-quality libraries and support neighbourhood learning programs

KSA 4 DOCKLANDS LIBRARY Complete construction and commence operations at the Docklands Library and Community Centre Overall Rating

Performance Statement The construction and fit-out of the Docklands Library and Community Centre was completed to plan and operations began on 31 May 2014 following the official opening by the Premier of Victoria and the Lord Mayor.

Measures

Achieved

Type

Target

Year End Actual

Rating

Construction of the base building completed

Time

31 March 2014

Certificate of Practical Completion issued by independent assessor 26 March 2014.

Achieved

Building fit-out completed

Time

30 June 2014

Building fit-out completed prior to the official opening on 31 May.

Achieved

Independent assessment of practical completion (base building)

Quality

Certificate of Practitioner Completion issued.

Certificate of Practical Completion issued by independent assessor 26 March 2014.

Achieved

Fit-out complete to commence operations

Quality

Library operations commenced.

Fit-out work completed ahead of the official opening and commencement of operations on 31 May 2014.

Achieved

Budget allocated for 2013-14 spent

Cost

$6,500,000

$6,457,022

Not rated

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GOAL 5 an eco-CITY Priority: Implement the Urban Forest and Open Space strategies and develop a biodiversity strategy

KSA 5 URBAN FOREST STRATEGY – TREE PLANTING Undertake tree planting to contribute to doubling the city’s urban forest canopy by 2040 to reduce the urban heat island effect Overall Rating

Performance Statement Three draft Urban Forest Precinct Plans (UFPPs) have been completed and published for final community comment. A highly successful community engagement process for the development of the UFPPs attracted more than 300 workshop participants and 18,970 unique visits to the UFFPs online participation forum.

Achieved

Our 2013–14 Capital Tree Planting Program target of 3000 trees was reached, with 3190 new trees planted.

More than 90 per cent of trees were planted in line with City of Melbourne planting specifications. New standards were developed for tree stock procurement to increase the quality of the program. The Climate Adaptation of Streetscapes Program to improve growing conditions for existing trees was completed for Grey, Hotham, Leicester, Abbotsford and Anderson streets.

Measures

Type

Target

Year End Actual

Rating

Urban Forest Precinct Plans completed to draft

Time

30 June 2014

Draft plans for Docklands, North and West Melbourne and Kensington completed on time.

Achieved

Number of trees planted

Quantity

3000

3190 new and juvenile trees planted between 1 July 2013 and 30 June 2014. This includes new tree planting and replacement planting.

Achieved

Trees planted meet the City of Melbourne's tree planting specifications

Quality

90%

90.7% of plantings audited met City of Melbourne’s specification. Citywide instructed to rectify any non-compliance with these standards.

Procedures have been put in place to ensure all trees planted from 2014 will meet planting and stock procurement specifications.

Achieved

Project completed within budget

Cost

$4,050,000

$4,055,311. A slight overspend occurred within the streetscape renewal programs.

Not rated

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GOAL 6 a Connected CITY Priority: Make the municipality more bicycle friendly through our Bicycle Plan 2012–16 and endorse a new bicycle plan by March 2016

KSA 6 BICYCLE ROUTES Complete construction and commence operations at the Docklands Library and Community Centre Overall Rating

Performance Statement The 2013–14 annual capital works program for on and off-road routes as part of the Bicycle Plan 2012–2016 included the Adderley Street bike lane, Neil Street bike lane, Victoria Street enhanced bike lane, Collins Street enhanced bike lane and the Bourke Street bike lane and cycle-friendly devices.

Substantially Achieved

In addition to these completed works, construction began on William Street enhanced bike lanes and will finish in 2014-15. Construction was delayed due to the need to identify a preferred design option following community consultation through the April 2014 Bicycle Forum public meeting and subsequent delays in third party approvals.

The only job that did not commence construction in 2013-14 was the Yarra River ramp, due to extended project time requirements for design. The design is now complete and construction will occur in 2014-15 when funds of $900,000 will become available as per the fourth quarter capital works report.

Measures

Type

Target

Year End Actual

Project completed on time

Time

30 June 2014

William Street construction Substantially is incomplete. Morrell Bridge Achieved ramps to be constructed in 2014–15. Nineteen other projects are complete.

Survey of cyclists before and after works

Quality

Cyclists feel like the municipality is more bicycle friendly.

To be reliable, perception Substantially data should be collected achieved three-to-six months after completion of the work and at the same time of year as previously. However, an indicator of cyclists’ response to infrastructure is cyclists’ behaviour. Bikes as a proportion of vehicles entering the city in the morning peak grew from 13.3% in March 2013 to 14.7% in March 2014.

The number of improved bike lane projects commenced

Quantity

7

Seven: Princes Bridge northbound; Elizabeth Street; St Kilda Rd southbound; Neill St Carlton; Bourke St city; Collins St Docklands; and Swanston St Carlton.

Achieved

Project completed within budget

Cost

$2,650,000

$1,439,169

Not rated

Variance of $1,210,831 is the requested carryover into 2014–15 to complete the William Street bike lane works and Yarra Trail bike ramp.

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Rating

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GOAL 7 Resources are managed well Priority: Improve customer experience whilst increasing organisational productivity

KSA 7 ORGANISATIONAL PERFORMANCE MEASURES Develop and trial simple and effective measures of organisational performance including a measure or measures associated with customer experience Overall Rating

Performance Statement An organisational performance dashboard has been developed following an audit of more than 450 existing measures in the organisation and an analysis of the types of measures found in high-performing organisations.

The measures selected relate to making things better, faster, easier and cheaper for customers and engaging our staff. The dashboard is reviewed by the management team each month to identify what organisational improvements can be made and three initiatives to improve performance are under way.

Measures

Achieved

Type

Target

Year End Actual

Rating

Project completed on time

Time

30 June 2014

Completed by 30 June 2014.

Achieved

Number of measures trialled

Quantity

3 (including people, customer and productivity).

12

Achieved

Number of improvement actions initiated after trialling organisational measures

Quantity

3

A number of initiatives undertaken to improve performance on:

Achieved

1. Closing the loop with customers 2. Formal learning hours and 3. Leave managementexcessive leave.

Project completed within budget

Cost

Within budget.

Leverage existing resources to develop organisational performance measures within agreed scope and on time.

Within budget.

KSA delivered within existing branch resources.

Not rated

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GOAL 8 An accessible, transparent and responsible organisation Priority: Make Council information and data accessible to our communities and stakeholders where possible

KSA 8 ONLINE ENGAGEMENT Develop our organisational capacity to engage our communities online Overall Rating

Performance Statement Since August 2013, project teams across four divisions and 10 branches have published 27 individual projects on the Participate Melbourne hub. The site recorded more than 140,000 individual page views, 2580 pieces of individual feedback and attracted 2050 registered users. Prior to the establishment of Participate Melbourne, the cost to teams for an episode of online engagement was $10,000. This cost has been reduced to $3000 per project delivering a saving to the organisation of $169,000. All deliverables have been met or exceeded.

Measures

Achieved

Type

Target

Year End Actual

Rating

Project completed on time

Time

Project completed by 30 June 2014.

Project has been completed on time.

Achieved

Project Steering Committee representative of the organisation

Quality

Five divisions are represented in the Project Steering Committee.

All divisions are presented on the Project Steering Group.

Achieved

Hold Project Steering Committee meetings throughout the year

Quantity

Six meetings held with 75% attendance throughout the year.

Six of the six meetings have been held.

Achieved

Project completed within budget

Cost

$154,424

$108,281

Not rated

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KSA PERFORMANCE STATEMENT

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100 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r10_COME_Annual_Report_2013_2014_PAGES_68-111_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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KSA PERFORMANCE STATEMENT

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VICTORIAN LOCAL GOVERNMENT INDICATORS

Victorian Local Government Indicators Indicator Overall performance

Indicator

2011-12

2012-2013

2013-14

#

66

67

71

#

55

53

55

#

56

55

60

$

$2,427

$2,375

$2,424

$

$974

$963

$997

$

$4,130

$4,052

$3,854

$

$1,206

$1,264

$1,114

Community satisfaction rating for overall performance generally of the Council Advocacy Community satisfaction rating for the Council’s advocacy and community representation on key local issues Engagement Community satisfaction rating for the Council's engagement in decision-making on key local issues All rates Average rates and charges per assessment (all rates) Residential rates Average rates and charges per residential assessment Operating costs Average operating expenditure per assessment Capital expenditure Average capital expenditure per assessment Infrastructure

%

97%

86.7%

85.3%

Renewal and maintenance gap

%

97%

88.8%

87.6%

Debts

$

$1,174

$978

$1,062

$

$364

$581

$332

Renewal gap

Average liabilities per assessment Operating result Operating results per assessment

Community satisfaction ratings derived from Department of Transport, Planning and Local Infrastructure Community Satisfaction Survey.

Response scale and values: 100 - Very good

25 - Poor

75 - Good

0 - Very poor

50 - Average

Excluded - Can’t say

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OUR REPORTING APPROACH

Our Reporting Approach The City of Melbourne seeks to improve its understanding and management of the issues that matter most to the way we operate and the community we serve.

To help us meet this ambition, we have applied the newest Global Reporting Initiative Sustainability Reporting Framework (version G4) in the development of the Annual Report 2013–14. Where possible, we have reported fully against the core requirements of the G4 framework; in other areas we have noted where our current reporting and data collection approaches allow us to enter a partial report only. We have not sought external assurance for the GRI components of this report.

Global Reporting Initiative

Identifying the issues that matter most

The Global Reporting Initiative (GRI) is an international not-for-profit organisation. GRI’s mission is to make sustainability reporting standard practice for all companies and organisations. It promotes the use of sustainability reporting as a way for organisations to become more sustainable and contribute to sustainable development.

The City of Melbourne’s Annual Report contents are substantially determined by the requirements of the Local Government Act 1989 (Vic) and Council Plan 2013–17.

The Council Plan in turn reflects the community’s goals identified in the development of Future Melbourne in 2008, representing some 15,000 views from across the community to guide the city’s development to 2020.

GRI has developed a comprehensive Sustainability Reporting Framework that is the most widely used sustainability reporting standard in the world. The framework provides metrics and methods for measuring and reporting sustainability-related impacts and performance.

A sustainability report conveys disclosures on an organisation’s most critical impacts – be they positive or negative – on the environment, society and the economy.

Like most local governments, we have a long history of reporting both financial and non-financial performance to stakeholders. Many of these disclosures align with the GRI Framework. Therefore we have used these ‘must report’ disclosures as the starting off point in understanding the most important issues for the City of Melbourne.

Creating a report that matters A robust sustainability report is far more than a mere data gathering or compliance exercise. It makes abstract issues tangible and concrete, helping organisations to set goals, measure performance, and manage change.

As part of our effort to be an accessible, transparent and responsive organisation that manages its resources well, a commitment was made in 2012–13 to develop the 2013–14 Annual Report in accordance with GRI’s newest Sustainability Reporting Framework, G4. This year’s report, as an attempt to incorporate the G4 framework and as the first Annual Report under our Council Plan 2013–2017, represents a departure from the approach in previous annual reports in terms of scope and reporting methodology.

The driver to adopt the G4 framework for our Annual Report is to ensure we identify, measure and report on the issues that matter most to our organisation. These are the issues that reflect our organisation’s most significant economic, environmental and social impacts or those that substantively influence the assessments and decisions of our stakeholders.

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OUR REPORTING APPROACH

Identification

Prioritisation

Map ‘must report’ indicators from:

Workshop held with key personnel from each branch to:

• Local Government Act 1989 (Vic) • Council Plan 2013–17 • Corporate Risk Register

• sense check ‘must report’ issues and identify new ones • categorise and prioritise all issues

Validation •

Outputs aggregated into final issues list and reviewed against GRI’s principle of ‘completeness’

• Review of issues list by Annual Report working group • Presentation and approval of issues list by Annual Report leadership group

Our material issues G4 places the concept of materiality at the heart of sustainability reporting. This means encouraging reporting organisations to only provide information on the issues that are really critical in order to achieve the organisation’s goals for sustainability and manage its impact on environment and society.

and social impacts or those that substantively influence the assessments and decisions of our stakeholders. The issues identified this year are summarised in the table below.

See also the Global Reporting Initiative (GRI) index page 105 for information on how these issues have been addressed in this report.

We define material issues as those issues which matter most to our organisation. These are the issues that reflect our organisation’s most significant economic, environmental

City of Melbourne material issue

Related GRI aspects

Boundaries

Creating opportunities for all

Indirect Economic Impacts, Local Communities

Customer

Community participation

Local Communities, General Standard Disclosure (stakeholder engagement)

Customer

Sustainable economic development

Indirect Economic Impacts

Customer

Climate change/resilience

Energy, Water, Biodiversity, Emissions, Effluence and Waste

Organisation and Customer

Leadership and innovation

General Standard Disclosure

Organisation and Customer

Workforce capability/learning and development

Training and Education, Anti-corruption

Organisation

Sustainable financial management

Economic Performance

Organisation

Customer satisfaction (including health and safety)

Customer Health and Safety, Product and Service Labelling, Customer Privacy

Customer

Staff health and safety

Occupational Health and Safety

Organisation

Diverse and fair work environment

Employment, Diversity and Equal Opportunity, Equal Remuneration, Non-discrimination

Organisation

Supply chain management

Supplier Assessments (Environment, Labour, Human rights, Society)

Supply Chain

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GLOBAL REPORTING INITIATIVE INDEX

Global Reporting Initiative Index The following includes an index of the Global Reporting Initiative (GRI) disclosures contained in this report, the location they can found, an indication of the level of disclosure and an explanation where appropriate.

GRI reference

Level of reporting

G4-1

Full

Name of organisation

G4-3

Full

Primary products and services

G4-4

Full

Location of headquarters

G4-5

Full

Melbourne, Victoria

-

Country of operations

G4-6

Full

Australia

-

Nature of ownership and legal form

G4-7

Full

• Our Council - page 11

Sectors served

G4-8

Full

• Welcome to the City of Melbourne - page 2

Scale of organisation

G4-9

Full

• Our organisation: our people - page 75 • Financial summary - page 9 • Our organisation: overview - page 68

Employees and workforce

G4-10

Partial

Employees covered by collective bargaining

G4-11

Full

• Our organisation: our people - page 74

Organisational supply chain

G4-12

Full

• Our organisation: procurement and supply chain - page 87

Changes in organisational size, structure, ownership or supply chain

G4-13

Full

• Financial report - page 111 • Our organisation: procurement and supply chain - page 87

Comment

Report section / page

GRI standard disclosure Strategy and analysis Statement from CEO

• Year in review - page 5

Organisational profile Melbourne City Council

• Welcome to the City of Melbourne - page 3 • Our organisation: overview - page 68 • Goal chapters 1 to 8 - page 20-66

Reporting covers permanent, fixed-term and • Our organisation: our people temporary employees only; gender breakdown - page 75 for supervised workers (non-employees) not available. Detailed data unavailable on work performed by non-employees; however, substantial portion of work is performed by employees.

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GRI reference

Level of reporting

Precautionary approach

G4-14

Full

• Our organisation: risk management - page 83-84

External charters

G4-15

Full

• Our organisation - page 86

Organisational memberships

G4-16

Full

Comment

Report section / page

The City of Melbourne holds memberships to various organisations it has a strategic interest in. In 2013–14 our memberships were: melbourne.vic.gov.au/AboutCouncil/ financegovernance/Documents/Council_ Memberships_year_ended_June_2014.pdf

Identified material aspects and boundaries Organisational entities

G4-17

Full

• Financial report- page 125-172

Report content and material issues

G4-18 - 23 Full

• Our reporting approach - page 103-104

G4-24 - 27

Full

• Our organisation: community and stakeholder engagement - page 70-71

Reporting period

G4-28

Full

Financial year 2013–14

-

Date of previous report

G4-29

Full

2012–13. See melbourne.vic.gov.au/ Pages/default.aspx for earlier reports

-

Reporting cycle

G4-30

Full

Annual

-

Contact point for questions

G4-31

Full

• Inside cover

Reporting option chosen and external assurance

G4-32 33

Full

• Our reporting approach - page 103-104

G4-34

Full

• Our Council - page 11-16

G4-56

Full

• Our Council - page 12 • Our organisation: continuous improvement - page 73 • Our organisation: our people - page 79

Economic performance management approach

G4-DMA

Full

• Goal 7 chapter - page 58-60 • Financial report - page 110-172

Direct economic value generated and distributed

G4-EC1

Full

• Financial report - page 110-172

Financial implications and other risks and opportunities for the organisation's activities due to climate change

G4-EC2

Full

• Our organisation: risk management - page 83-84

Indirect economic impacts management approach

G4-DMA

Full

• Goal 3 chapter - page 34-37 • Goal 2 chapter - page 28-31 • Goal 4 chapter - page 40-43

Significant indirect economic impacts

G4-EC8

Full

• Goal 3 chapter - page 34-37 • Our organisation: procurement and supply chain - page 87

Stakeholder engagement Stakeholder groups, stakeholder identification, engagement approach and concerns Report profile

Governance Governance structure Ethics and integrity Values, principles, standards and norms and codes of conduct

GRI specific disclosures Economic

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GLOBAL REPORTING INITIATIVE INDEX

GRI reference

Level of reporting

Energy management approach

G4-DMA

Full

• Our organisation: environmental performance - page 80-82 • Goal 5 chapter - page 46-49

Energy consumption in the organisation

G4-EN3

Full

• Our organisation: environmental performance - page 80-82

Water management approach

G4-DMA

Full

• Our organisation: environmental performance - page 80 • Goal 5 chapter - page 46-49

Total water withdrawal by source

G4-EN8

Partial

Biodiversity management approach

G4-DMA

Full

Habitats protected or restored

G4-EN13

Partial

Emissions management approach

G4-DMA

Full

• Our organisation: environmental performance - page 80-82 • Goal 5 chapter - page 46-49

Direct greenhouse gas (GHG) emissions (Scope 1, 2 and 3)

G4-EN15 - 17

Full

Energy and emissions data is for 2012-13.

• Our organisation: environmental Data for 2013-14 will be reported under the performance - page 81 National Carbon Offset Standard (NCOS) • Goal 5 chapter - page 46-48 published at a later date. We are introducing a new environmental data management system in 2014-15 that should enable current energy and emissions data to be part of future annual reporting.

Greenhouse gas (GHG) emissions intensity

G4-EN18

Full

Latest available data is 2012–13. Emissions are • Goal 5 chapter - page 46 calculated for the international Carbon Disclosure Project and are higher than previous years in part due to improved data and a change in calculation methodology to meet evolving international standards.

Reduction of greenhouse gas (GHG) emissions

G4-EN19

Full

• Our organisation: environmental performance - page 81 • Goal 5 chapter - page 48

Effluents and waste management approach

G4-DMA

Full

• Our organisation: environmental performance - page 80-82 • Goal 5 chapter - page 46-49

Total weight of waste by type and disposal method

G4-EN23

Partial

Comment

Report section / page

Environmental

Management of supplier G4-DMA assessments for environmental impacts

Full

Percentage of new suppliers that were screened using environmental criteria

Partial

G3-EN32

Municipal water data relates to water used • Our organisation: environmental in open spaces and excludes water used performance - page 80 in buildings. Total water consumption is reported under the National Carbon Offset Standard (NCOS) published at a later date.

We are introducing a new environmental data management system in 2014–15 that should enable total water consumption to be part of future annual reporting.

• Our organisation: environmental performance - page 82 • Goal 5 chapter - page 46-49 Tree canopy cover is used as an indicator of biodiversity. We aim to report more comprehensively on biodiversity in future years.

Reporting based on recycling and landfill data only.

• Goal 5 chapter - page 49

• Our organisation: environmental performance - page 82 • Goal 5 chapter - page 46-48 • Our organisation: procurement and supply chain - page 87

We do not systematically screen for sustainability criteria, although such criteria may be included in the tendering process.

We are reviewing our procurement model to identify a variety of options to achieve better sustainability outcomes.

• Our organisation: procurement and supply chain - page 87

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GRI reference

Level of reporting

Employment management approach

G4-DMA

Full

• Our organisation: our people - page 74

Total number and rates of new employee hires and employee turnover

G4-LA1

Full

Based on GRI calculations, staff turnover rate • Our organisation: our people is 7.56. However, for the purposes of reporting - page 75 turnover based on voluntary and voluntaryplus-involuntary staff departures under Goal 7 of our report, we use the common industry standard calculation, which results in a 6.28 per cent (voluntary) and 13.22 per cent (total) turnover rate respectively.

Occupational health and safety management approach

G4-DMA

Full

• Our organisation: our people - page 77

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of workrelated fatalities

G4-LA6

Partial

Training and education management approach

G4-DMA

Full

• Our organisation: our people - page 78 • Goal 7 - page 58-60

Average hours of training per year per employee

G4-LA9

Full

• Our organisation: our people - page 79

Diversity and equal opportunity management approach

G4-DMA

Full

• Our organisation: our people - page 76

Composition of governance bodies and breakdown of employees per employee category according to indicators of diversity

G4-LA12

Full

• Our organisation: our people - page 77

Equal remuneration for G4-DMA women and men management approach

Full

• Our organisation: our people - page 76

Ratio of basic salary and remuneration of women to men

G4-LA13

Full

• Our organisation: our people - page 77

Management of supplier assessment for labour practices

G4-DMA

Full

• Our organisation: procurement and supply chain - page 87

Percentage of new suppliers that were screened using labour practices criteria

G4-LA14

Partial

Non-discrimination management approach

G4-DMA

Full

Total number of incidents of discrimination and corrective actions taken

G4-HR3

Partial

Management of supplier assessment for human rights practices

G4-DMA

Full

Comment

Report section / page

Social

Occupational health and safety rates relate to • Our organisation: our people employees only. No contractor data available.

- page 77-78 Subject to improved data collection procedures we may be able to report this data in subsequent years.

We do not systematically screen for sustainability criteria, although such criteria may be included in the tendering process.

We are reviewing our procurement model to identify a variety of options to achieve better sustainability outcomes.

• Our organisation: procurement and supply chain - page 87

• Our organisation: our people - page 76 Data not available for 2013-14 but should be available in future reporting years.

• Our organisation: our people - page 76 • Our organisation: procurement and supply chain - page 87

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GLOBAL REPORTING INITIATIVE INDEX

GRI reference

Level of reporting

Percentage of new suppliers that were screened using human rights criteria

G4-HR10

Partial

Local communities management approach

G4-DMA

Full

Percentage of operations with implemented local community engagement, impact assessments, and development programs

G4-SO1

Partial

Anti-corruption management approach

G4-DMA

Full

• Our Council - page 12 • Our organisation: our people - page 78-79

Communication and training on anti-corruption policies and procedures

G4-SO4

Full

• Our Council - page 12 • Our organisation: our people - page 79

Management of supplier assessment for social impacts

G4-DMA

Full

• Our organisation: procurement and supply chain - page 87

Percentage of new suppliers that were screened using criteria for impacts on society

G4-SO9

Partial

We do not systematically screen for sustainability criteria, although such criteria may be included in the tendering process.

We are reviewing our procurement model to identify a variety of options to achieve better sustainability outcomes.

• Our organisation: procurement and supply chain - page 87

Customer health and safety management approach

G4-DMA

Partial

The diverse nature of our services and products means no data is available on the percentage for which health and safety impacts are assessed for improvement.

• Our organisation: interacting with customers - page 88-89

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

G4-PR1

Partial

All products and services are assessed for • Our organisation: interacting health and safety impacts in accordance with customers - page 89 with our legislative obligations and policy procedures. The diverse nature of our services and products means no statistical evaluation is available.

Product and service labelling management approach

G4-DMA

Full

Results of surveys measuring customer satisfaction

G4-PR5

Full

Customer privacy management approach

G4-DMA

Full

• Our organisation: interacting with customers - page 88

Full

• Our organisation: interacting with customers - page 88

Total number of substantiated G4-PR8 complaints regarding breaches of customer privacy and losses of customer data

Comment

We do not systematically screen for sustainability criteria, although such criteria may be included in the tendering process.

We are reviewing our procurement model to identify a variety of options to achieve better sustainability outcomes.

Report section / page • Our organisation: procurement and supply chain - page 87

• Our organisation: community and stakeholder engagement - page 70-71 • Goal 1 chapter - page 20-23 • Goal 8 chapter - page 62-65 No data available on percentage of operations with implemented community engagement. We are developing an evaluation framework that may allow more comprehensive reporting in future years.

• Our organisation: community and stakeholder engagement - page 70-71

• Our organisation: continuous improvement - page 72-73 • Our organisation: interacting with customers - page 88-89 • Goal 7 chapter - page 58-60 State government community survey score has historically been used to measure customer satisfaction with City of Melbourne services. We are introducing a new organisational measure for customer satisfaction in 2014-15 which may provide an alternative basis for future reporting.

• Goal 7 chapter - page 60 • Victorian Local Government Indicators - page 102

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How to read the financial report Reading our financials

How are the financial statements audited?

Our financial statements provide an insight into the City of Melbourne’s financial health.

These Financial Statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Local Government Act 1989 (Vic), including the requirements of the Local Government (Finance and Reporting) Regulations 2014 (Vic).

Our financial statements show: • how the City of Melbourne and its subsidiaries performed during the year • the value of assets held by the City of Melbourne • the ability of the City of Melbourne to pay its debts.

What’s 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.

They are audited by the Victorian Auditor-General, approved in principle by the City of Melbourne’s Audit Committee and

by Melbourne City Council. These auditing measures ensure the information provided is correct.

The City of Melbourne has received a clear audit of its financial statements for 2013–14.

The four financial reports are: • income statement • balance sheet • statement of cash flows • statement of changes in equity.

The explanatory notes detail the City of Melbourne’s accounting policies and the make-up of values contained in the statements.

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HOW TO READ THE FINANCIAL REPORT

property HOLDINGS 2014 Consolidated value $million

2013 Consolidated value $million

Royal Park, Flemington Road, PARKVILLE VIC 3052

$287.1

$307.8

Fawkner Park, 24-88 Commercial Road, SOUTH YARRA VIC 3141

$190.1

$189.6

Fitzroy Gardens, 230-298 Wellington Parade, EAST MELBOURNE VIC 3002

$162.8

$162.9

Kings Domain, Alexandra Avenue, MELBOURNE VIC 3004

$130.9

$130.9

Queen Victoria Market, 65-159 Victoria Street, MELBOURNE VIC 3000

$103.3

$80.8

Princes Park, 200-590 Royal Parade, CARLTON NORTH VIC 3054

$97.4

$97.1

Melbourne Town Hall – "including Administration Building" 90-130 Swanston Street, MELBOURNE VIC 3000

$96.3

$81.1

Council House 2, 218-242 Little Collins Street, MELBOURNE VIC 3000

$53.7

$51.1

Flagstaff Gardens, 309-311 William Street, WEST MELBOURNE VIC 3003

$50.3

$49.3

Birrarung Marr, Batman Avenue, MELBOURNE VIC 3000

$40.4

$41.1

Carlton Gardens South, Victoria Street, CARLTON VIC 3053

$36.2

$36.3

Alexandra Gardens, St Kilda Road, MELBOURNE VIC 3004

$33.7

$33.7

Queen Victoria Gardens, St Kilda Road, MELBOURNE VIC 3004

$33.0

$32.7

Alexandra Park, Alexandra Avenue, MELBOURNE VIC 3004

$31.6

$31.7

Council House, 196-212 Little Collins Street, MELBOURNE VIC 3000

$31.0

$25.9

Carlton Gardens North, 1-111 Carlton Street, CARLTON VIC 3053

$29.6

$29.6

Treasury Gardens, 2-18 Spring Street, EAST MELBOURNE VIC 3002

$29.3

$29.4

J.J. Holland Park, 67-121 Kensington Road, KENSINGTON VIC 3031

$27.8

$23.1

Carlton Baths, 216-248 Rathdowne Street, CARLTON VIC 3053

$25.0

$29.0

City Square, 199-209 Collins Street, MELBOURNE VIC 3000

$19.0

$19.3

Address

• All valuations as at 30 June of the respective year.

• The consolidated values contained within this list include both land and building asset values applicable to the specific sites.

• The land values included in the Council Asset Register relate to land holdings both owned and controlled by Council.

• The city has significant crown land holdings controlled on behalf of the Crown via various structures including crown grants, committees of management and other reservations.

• Council is required to value land and building assets pursuant to the provisions of AASB 116 and AASB 13. The ‘fair value’ applicable to land value assessments, specifically parks and alike, are significantly adjusted against full market value reflecting legislative provisions, site control, use restrictions and other limitations directly associated with their public use.

Significant changes to our facilities in 2013–14 • We opened The Library at the Dock, Docklands • Purchased the Harbour Masters Office, Docklands • Built the new Cook’s Cottage visitor centre and café at Fitzroy Gardens

• Progressed construction of the Kathleen Syme Library and Community Centre • Progressed the renovation of the Kensington Town Hall

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STANDARD STATEMENTS FOR MELBOURNE CITY COUNCIL ANNUAL REPORT 2013 – 2014 BUDGET V ACTUAL Note 1. Significant Accounting Policies The significant policies, which have been adopted in the preparation of these Standard Statements, are: a) Basis of preparation Melbourne City Council is required to prepare and include audited Standard Statements within its Annual Report. The following four Standard Statements and explanatory notes form a special purpose financial report prepared specifically to meet the requirements of the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2014.

The Standard Statements have been prepared on an accounting basis consistent with those used for the General Purpose Financial Report and the Budget.

The results reported in these Statements are consistent with those reported in the General Purpose Financial Report. The Standard Statements are not a substitute for the General Purpose Financial Report. They have not been prepared in accordance with all Australian Accounting Standards or other authoritative

The budget figures included in the Standard Statements are those adopted by the Council at its meeting on 25 June 2013. The budget was based on assumptions that were relevant at the time of adoption of the budget.

The Council set guidelines and parameters for revenue and expense targets in this budget in order to meet the Council’s business plan and financial performance targets for both the short and long term. The budget did not reflect expected changes to equity resulting from asset revaluations, as their impacts were not considered predictable.

Detailed information on the actual financial results are contained in the General Purpose Financial Report.

The detailed budget can be obtained by reference to Council’s web site. The Standard Statements must be read with reference to those documents.

professional pronouncements.

The Standard Statements compare Council’s Financial Plan, expressed through its Annual Budget, with actual performance. The Local Government Act 1989 requires explanation of any material variances. The Council has adopted a materiality threshold of 10 per cent.

Explanations have been provided for variations below the materiality threshold if considered to be material because of their nature.

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STANDARD STATEMENTS FOR THE YEAR ENDED JUNE2014 2014 STANDARD STATEMENTS FOR THE YEAR ENDED 3030 JUNE

Standard Income IncomeStatement Statement Standard Actuals 2013-14 $'000's Revenues Rates Grants and Subsidies - Operating (recurrent) - Operating (non- recurrent) - Capital Contributions (recurrent) - Capital Contributions (non-recurrent) Parking Fees Parking Fines Sundry Fees & Charges Property Rental and Hire Sales & Recoveries Finance Income Intercompany Revenue Total Revenue

Budget 2013-14 $'000's

Variance $'000's

Ref %

213,837

215,568

(1,731)

(1%)

9,380 2,312 13,743 7,606 46,796 38,495 24,131 7,110 5,085 3,884 12,826 385,205

9,781 901 7,890 5,207 47,364 40,418 21,467 7,466 3,156 3,505 16,372 379,095

(401) 1,411 5,853 2,399 (568) (1,923) 2,664 (356) 1,929 379 (3,546) 6,110

(4%) 157% 74% 46% (1%) (5%) 12% (5%) 61% 11% (22%) 2%

129,481 147,246 7,677 13,348 813 55,281 10,305 364,151

128,199 146,944 10,188 12,656 1,334 55,332 10,399 365,052

(1,282) (302) 2,511 (692) 521 51 94 901

(1%) (0%) 25% (5%) 39% 0% 1% 0%

Fair Value Adjustment of Investment Properties* Net Gain on Asset Disposal Derecognition of assets to external parties* Contributed Assets* Result from Ordinary Activities

5,640 954 (4,200) 7,895 31,343

154 14,197

5,640 800 (4,200) 7,895 17,146

519% 121%

Net asset revaluation increment* Other Comprehensive Income

76,569 76,569

-

76,569 76,569

-

Total Comprehensive Income

107,912

14,197

93,715

660%

Less Capital Contributions Less Net asset revaluation increment* Less Fair value adjustment of investment properties* Less Contributed Assets* Add Derecognition of assets to external parties* Add Written down on Investment* Underlying Surplus/(Deficit)

(21,349) (76,569) (5,640) (7,895) 4,200 541 1,200

(13,097) 1,100

(8,252) (76,569) (5,640) (7,895) 4,200 541 100

63% 9%

Expenses Employee Cost Materials and Services Financial and Insurance Cost Grants and Contributions Government Taxes & Levies Depreciation and Amortisation Maintenance Costs Financial Performance Expenditure

1 1 2 2

3 4 5 6

7 8

9 10 11 2

* Not budgeted

3 of 10

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STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

StandardIncome Income Statement – Comparison Report Standard Statement – Comparison Report Ref.

Item

Commentary

1

Operating Grants

Due to additional grants for various programs and projects, mainly the Active Cities program ($0.90 million) and arts programs ($0.53 million).

2

Capital and Asset Contributions

Due to additional public open space capital contributions ($5.85 million), external capital contributions for Northbank Promenade development ($3.00 million) and Docklands land and building asset contributions ($3.88 million).

3

Sundry Fees and Charges

Due to higher fees and charges, including tree removal fees ($0.84 million), building fees ($0.54 million), event income and planning fees.

4

Sales & Recoveries

Mainly due to additional recoveries received in relation to Grants in Kind revenue ($0.92 million, fully offset from Grant in Kind payments).

5

Finance Income

Due to higher interest revenue generated by higher cash balances.

6

Intercompany Revenue

Due to lower returns from subsidiaries.

7

Financial and Insurance Cost

Mainly due to lower doubtful parking infringement provisions.

8

Government Taxes & Levies

Due to lower than budgeted fire services levy expenditure.

9

Fair Value Adjustment of Investment Properties

Due to the revaluation of the Council’s investment properties.

10

Net Gain on Asset Disposal

Mainly due to the sale of portions of laneways including Bensons Lane and Mary Street Lane.

11

Derecognition of assets to external parties

Due to the derecognition of the Flinders Park Reserve to external party.

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STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

StandardBalance Balance Sheet Standard Sheet Actuals 2013-14 $'000's

Budget 2013-14 $'000's

$'000's

%

99,339 26,626 3,920 129,885

76,275 24,041 3,900 104,216

23,064 2,585 20 25,669

30% 11% 1% 25%

Non-Current Assets Investments Intangibles Investment Properties Property, Plant and Infrastructure Total Non-Current Assets

32,316 11,004 113,789 3,340,611 3,497,720

31,632 89,446 3,337,959 3,459,037

684 11,004 24,343 2,652 38,683

2% 100% 27% 0% 1%

TOTAL ASSETS

3,627,605

3,563,253

64,352

2%

65,966 29,358 1,991 97,315

62,499 23,819 401 86,719

(3,467) (5,539) (1,590) (10,596)

(6%) (23%) (397%) (12%)

3,042 3,042

6,307 6,307

3,265 3,265

52% 52%

100,357

93,026

(7,331)

(8%)

NET ASSETS

3,527,248

3,470,227

57,021

2%

EQUITY Accumulated Surplus Reserves TOTAL EQUITY

1,838,385 1,688,863 3,527,248

1,783,401 1,686,826 3,470,227

54,984 2,037 57,021

3% 0% 2%

ASSETS Current Assets Cash Assets Receivables Other Assets Total Current Assets

LIABILITIES Current Liabilities Payables Employee Entitlements Provisions Total Current Liabilities Non-Current Liabilities Employee Entitlements Total Non-Current Liabilities TOTAL LIABILITIES

Variance

Ref

1 2

3 3 3

4 5

4

115

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STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Standard Balance Sheet – Comparison Report Standard Balance Sheet – Comparison Report Ref.

Item

Commentary

1

Cash assets

The higher cash balance is due to some capital works projects carried forward to 2014-15.

2

Receivables

Mainly due to higher GST input tax credit receivable and Fire Services Levy debtors.

3

Intangible Assets, Property, Plant & Infrastructure & Investment Properties

The higher balances are due to revaluation increments in assets such as land buildings and infrastructure following valuations conducted in 2014. Intangible assets increase relates to the capitalisation of IT software.

4

Employee Entitlement

Total employee entitlements are higher than budget due to higher provisions of annual leave and long service leave as well as classification between current and non-current liabilities.

5

Provisions

Primarily due to higher Rate Objection provisions.

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STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

StandardStatement Statement Cash flows Standard of of Cash flows

Cash Flows from Operating Activities Receipts Rates, Fees and Charges Grants and Other Contributions Interest Other (including Sales & Recoveries) Payments Employee Cost Materials and Services Other Costs Net Cash Provided by Operating Activities Cash Flows from Investing Activities Proceeds from Sale of Property, Plant Equipment and Infrastructure Payments for Property, Plant Equipment and Infrastructure Net Cash Used by Investing Activities Cash Flows from Financing Activities Dividend Received Net Cash Used by Financing Activities Net Decrease in Cash Held Cash at Beginning of the Financial Year Cash at End of the Financial Year

Variance

Ref

Actuals 2013-14 $'000's

Budget 2013-14 $'000's

$'000's

%

342,735 34,801 4,585 26,599

316,639 23,779 3,505 38,935

26,096 11,022 1,080 (12,336)

8% 46% 31% (32%)

(128,422) (166,573) (17,505) 96,220

(126,404) (172,191) (10,188) 74,075

(2,018) 5,618 (7,317) 22,145

(2%) 3% (72%) 30%

1,819

726

1,093

151%

6

(105,238)

(89,725)

(15,513)

(17%)

7

(103,419)

(88,999)

(14,420)

16%

-

3,662 3,662

100% 100%

(3,537)

(14,925)

11,388

76%

102,876

91,200

11,676

13%

99,339

76,275

23,064

30%

3,662 3,662

1 2 3 4

5

8

117 7 of 10

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STANDARD STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Standard Statement Cash Flows – Comparison Report Standard Statement of of Cash Flows – Comparison Report Ref.

Item

Commentary

1

Rates, Fees and Charges

Mainly due to project income, property revenue and intercompany revenue (excluding dividends) categorised differently in the budget under Other (Including Sales & Recoveries).

2

Grants and Other Contributions

Due to additional operational grants for various programs and projects, public open space capital contributions ($5.85 million) and external capital contributions for the Northbank Promenade development project ($3.00 million).

3

Interest

Higher cash inflow from interest was due to higher cash balances during the year.

4

Other (including Sales & Recoveries)

Mainly due to project income, property revenue and intercompany revenue (excluding dividends) categorised differently in the budget under Other (Including Sales & Recoveries).

5

Other Costs

Due to higher grants and contributions paid.

6

Proceeds from Sale of Property, Plant Equipment and Infrastructure

Mainly due to sale of Bensons Lane and Mary Street Lane.

7

(Payments) Receipts for Property, Plant Equipment and Infrastructure

Higher payment for property, plant equipment and infrastructure was due to carry forward capital projects from 2012-13 completed during the year.

8

Dividend Received

Due to reclassification of dividends received.

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STANDARD STATEMENTS THE YEAR ENDED 30 JUNE STANDARD STATEMENTSFOR FOR THE YEAR ENDED 30 JUNE STANDARD STATEMENTS FOR THE YEAR ENDED 30 2014 JUNE 2014 2014

Standard Statement Cash Flows -- Reconciliation Standard ofof Flows - Reconciliation StandardStatement Statement ofCash Cash Flows Reconciliation Actuals Actuals 2013-14 2013-14 $'000's $'000's

Budget Budget 2013-14 2013-14 $'000's $'000's

$'000's $'000's

% %

Net Net Surplus Surplus from from Operations Operations

31,343 31,343

14,197 14,197

17,146 17,146

121% 121%

Add Add Back: Back: Depreciation Depreciation and and Amortisation Amortisation Loss/(Profit) on Sale Loss/(Profit) on Sale of of Assets Assets Increase in Investment* Increase in Investment* Contributed Contributed Assets* Assets* Derecognition Derecognition of of assets assets to to external external parties* parties* Movement of of Investments Investments Held* Held* Movement Surplus Surplus Before Before Non Non Cash Cash Items Items

55,281 55,281 (954) (954) (5,640) (5,640) (7,895) (7,895) 4,200 4,200 541 541 76,876 76,876

55,332 55,332 -----69,529 69,529

(51) (51) (954) (954) (5,640) (5,640) (7,895) (7,895) 4,200 4,200 541 541 7,347 7,347

(0%) (0%) (100%) (100%) ----11% 11%

1 1 2 2 3 3 4 4 5 5

Net Net Movement Movement in in Working Working Capital Capital

23,006 23,006

4,545 4,545

18,461 18,461

406% 406%

6 6

Funds Funds Available Available for for Investing Investing Activities Activities

99,882 99,882

74,074 74,074

25,808 25,808

35% 35%

(105,238) (105,238) 1,819 1,819 (3,537) (3,537)

(89,725) (89,725) 726 726 (14,925) (14,925)

(15,513) (15,513) 1,093 1,093 11,388 11,388

17% 17% 151% 151% 76% 76%

Capital Capital Capital Capital Expenditure Expenditure Proceeds Proceeds from from Sale Sale of of Assets Assets Cash Outflow Cash Outflow

Variance Variance

Ref Ref

7 7 2 2

** Not Not budgeted budgeted

Standard Statement Cash Flows -- Reconciliation Comparison StandardStatement Statement ofCash Cash Flows Reconciliation Comparison Report Standard ofof Flows - Reconciliation Comparison ReportReport Ref. Ref.

Item Item

Commentary Commentary

1 1

Loss/(Profit) Loss/(Profit) on on sale sale of of assets assets

Mainly Mainly due due to to the the sale sale of of portions portions of of laneways laneways including including Bensons Bensons Lane and Mary Street Lane.

Lane and Mary Street Lane.

2 2

Increase Increase in in Investment Investment

The The revaluation revaluation of of Councilâ&#x20AC;&#x2122;s Councilâ&#x20AC;&#x2122;s investment investment properties properties has has resulted resulted in in a a non-cash gain. non-cash gain.

3 3

Contributed Contributed assets assets

Due Due to to contributed contributed land land and and building building assets assets including including land land at at Docklands.

Docklands.

4 4

Derecognition Derecognition of of assets assets to external parties to external parties

Due Due to to derecognition derecognition of of Flinders Flinders Park Park Reserve Reserve to to external external party. party.

5 5

Movement Movement of of Investments Investments held held

Revaluation Revaluation loss loss of of Sustainable Sustainable Melbourne Melbourne Fund.

Fund.

6 6

Net Net movement movement in in working working capital capital

The The net net movement movement in in working working capital capital reflects reflects an an increase increase in in creditors due to a higher level of accrued expenditure creditors due to a higher level of accrued expenditure and and lower lower creditor creditor payments. payments.

7 7

Capital Capital expenditure expenditure

Due Due to to higher higher than than budgeted budgeted capital capital works works carried carried forward forward from from 2012-13.

2012-13.

119 9 9 of of 10 10

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STANDARD STATEMENTS FOR THE YEAR ENDED STANDARD 30 JUNE 2014 STANDARD

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STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

StandardStatement Statement of Capital Works Standard Works Standard StatementofofCapital Capital Works Variance Variance

Ref Ref

Actuals Actuals 2013-14 2013-14 $'000's $'000's

Budget Budget 2013-14 2013-14 $'000's $'000's

$'000's $'000's

% %

Council Works Council Works Maintenance Maintenance Capital Works Capital Works Total Council Works Completed Total Council Works Completed

10,305 10,305 98,982 98,982 109,287 109,287

10,399 10,399 88,225 88,225 98,624 98,624

(94) (94) 10,757 10,757 10,663 10,663

(1%) (1%) 12% 12% 11% 11%

Carried Forward Capital Works Carried Forward Capital Works Total Council Works Proposed Total Council Works Proposed

21,452 21,452 130,739 130,739

-

-

-

1 1 1 1

Standard Statement of Capital Works – Comparison Report

StandardStatement Statement Capital Works – Comparison Report Standard ofofCapital Works – Comparison Report Ref. Ref. 1 1

Item Item

Commentary Commentary

Capital Expenditure Capital Expenditure

The value of capital and maintenance works completed for 2013-14 The value of capital and maintenance works completed for 2013-14 is $109,287 million. A carry forward of $21.45 million into 2014-15 is is $109,287 million. A carry forward of $21.45 million into 2014-15 is required to complete the programs. required to complete the programs.

The major projects within the carry forward are: The major projects within the carry forward are: • Living Victoria Fund ($3.25 million) • Living Victoria Fund ($3.25 million) • Docklands Community Boating/Family Services Hub ($2.85 • Docklands Community Boating/Family Services Hub ($2.85 million) million) • New Neighbourhood Recreation Area Neill Street Carlton • New Neighbourhood Recreation Area Neill Street Carlton ($1.94 million) ($1.94 million) • Streetscape Improvements and Design ($1.33 million) • Streetscape Improvements and Design ($1.33 million) • Property Services Corporate Renewal Works ($1.29 million) • Property Services Corporate Renewal Works ($1.29 million) • Bicycle Improvement Program ($1.21 million).

• Bicycle Improvement Program ($1.21 million).

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT Comprehensive Comprehensive Income Income Statement Statement

Revenues Rates

Consolidated 2014 2013 $'000 $'000

Note

2014 $'000

Council

2013 $'000

213,837

203,576

3(a)

213,837

203,576

Grants and other contributions Parking fees Fines Property revenue Other fees & charges Intercompany revenue Dividend income Finance income Sales & recoveries

33,187 50,828 40,258 24,227 199,195 4,339 18,249 370,283

40,769 43,744 43,006 23,872 210,688 6,539 16,240 384,858

3(b) 3(c)

33,041 46,796 40,258 7,110 22,368 9,164 3,662 3,884 5,085 171,368

40,375 40,022 43,006 7,126 20,335 12,380 7,593 5,907 5,776 182,520

Total Revenue

584,120

588,434

385,205

386,096

Expenses Employee benefit expense Contract payments, materials and services Depreciation and amortisation Other expenses Total Expenses

221,828 243,095 69,467 24,126 558,516

209,301 252,315 67,328 31,392 560,336

129,481 157,551 55,281 21,838 364,151

117,939 157,820 52,822 28,482 357,063

Fair value adjustment of investment properties Net gain on disposal of assets Contributed assets Derecognition of assets to external parties Surplus

5,640 1,097 7,895 (4,200) 36,036

1,468 2,450 20,611 52,627

5,640 954 7,895 (4,200) 31,343

1,468 102 20,611 51,214

Other Comprehensive Income Fair value adjustments for investment assets Net asset revaluation increment Gain/(loss) on defined benefits plans

76,569 4,024

4,649 31,554 7,455

76,569 -

4,649 29,521 -

Total Other Comprehensive Income

80,593

43,658

76,569

34,170

116,629

96,285

107,912

85,384

Total Comprehensive Income

3(d)

4(a) 4(b) 4(c) 4(d)

16

15 20

The Comprehensive Income Statement should be read in conjunction with the accompanying notes to the financial report.

121 Page 2 of 58

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

BAlance Sheet Balance Sheet Consolidated 2014 2013 $'000 $'000

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Accrued income Inventories Other assets Total Current Assets

110,724 57,695 5,316 656 1,307 175,698

114,001 57,563 7,649 491 1,470 181,174

Note

17(b) 5 6 7

2014 $'000

Council

2013 $'000

99,339 26,626 1,109 2,811 129,885

102,876 29,131 879 3,081 135,967

Non-Current Assets Other financial assets Net assets of City of Melbourne's Defined Benefits Superannuation Fund Property, plant equipment and infrastructure Intangible assets Investment property Total Non-Current Assets

7,675

7,675

8

32,316

32,856

423 3,407,643 38,207 113,789 3,567,737

3,291,114 28,978 108,149 3,435,916

20 9 10 11

3,340,611 11,004 113,789 3,497,720

3,219,798 8,738 108,149 3,369,541

TOTAL ASSETS

3,743,435

3,617,090

3,627,605

3,505,508

96,897 42,230 2,283 141,410

90,068 39,271 826 130,165

12 13 14

65,966 29,358 1,991 97,315

56,660 26,351 518 83,529

5,551 6,000

5,279 4,500

13 22

3,042 -

2,643 -

11,551

3,301 13,080

20

3,042

2,643

152,961

143,245

100,357

86,172

NET ASSETS

3,590,474

3,473,845

3,527,248

3,419,336

Equity Accumulated surplus Reserves TOTAL EQUITY

1,897,574 1,692,900 3,590,474

1,861,508 1,612,337 3,473,845

1,838,385 1,688,863 3,527,248

1,811,036 1,608,300 3,419,336

LIABILITIES Current Liabilities Trade and other payables Employee benefits Provisions Total Current Liabilities Non-Current Liabilities Employee benefits Interest bearing liabilities Net liabilities of City of Melbourne's Defined Benefits Superannuation Fund Total Non-Current Liabilities TOTAL LIABILITIES

15

The Balance Sheet should be read in conjunction with the accompanying notes to the financial report.

122 Page 3 of 58 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU Š OPTIMO 2014

2014

-

-

1,861,508

(3,692)

64,723

31,343 31,343 (3,152) (842) 1,838,385

1,811,036

2014 $'000

-

-

4,641

7,455

52,627

1,800,477

51,214 51,214 (3,692) 1,811,036

1,763,514

2013 $'000

Accumulated Surplus

(842) 1,897,574

(3,152)

40,060

2013 $'000

2013

1,596,934

76,569 76,569 1,669,466

1,592,897

2014 $'000

-

26,913

-

31,554

(4,641)

-

-

1,570,021

$'000

29,521 29,521 1,592,897

1,563,376

2013 $'000

Asset Revaluation Reserve

1,673,503

-

76,569

-

76,569

-

-

-

1,596,934

$'000

2014

Asset Revaluation Reserve 2014

15,403

3,692

4,649

4,649

3,152 842 19,397

15,403

2014 $'000

-

-

-

-

7,062

4 of 58

4,649 4,649 3,692 15,403

7,062

2013 $'000

Other Reserves

842 19,397

3,152

-

-

-

-

-

-

15,403

$'000

2013

Other Reserves

$'000

The Consolidated and Council Statements of Changes in Equity should be read in conjunction with the accompanying notes to the financial report.

15(d) 15(e)

51,214 29,521 4,649 85,384 3,419,336

31,343 76,569 107,912 3,527,248

Surplus for the year Asset revaluation Investments Revaluation Reserve Total Comprehensive Income Reserve for Public Open Space Tree Compensation Reserve Balance at the end of the financial year

2013 $'000 3,333,952

15(b) 15(c)

-

3,419,336

2014 $'000

4,649 96,285

-

-

4,024

36,036

1,861,508

$'000

2014

Accumulated Surplus

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Balance at beginning of the financial year

Note

31,554

3,473,845

Total Equity

3,590,474

15(e)

Tree Compensation Reserve Balance at the end of the financial year

Council

-

15(d)

Reserve for Public Open Space

116,629

15(c)

Investments revaluation reserve

-

7,455

52,627

36,036 4,024

3,377,560

76,569

Total Comprehensive Income

2013 $'000

3,473,845

$'000

15(a)

Note

Total Equity

Asset revaluation

Transfer to accumulated surplus

Defined Benefits Superannuation Fund

Surplus for the year

Balance at beginning of the financial year

Consolidated

Statement in Changes in Equity

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Statement in Changes in Equity

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Statement of Cash Flows Statement of Cash Flows Consolidated

Council

2014

2013

$'000

$'000

Note

2014

2013

$'000

$'000

Cash Flows from Operating Activities Receipts Rates, fees and charges Grants and Other Contributions Interest Tax equivalents Fire Services Levy

553,263

548,891

342,735

333,641

34,962

43,268

34,801

42,835

4,339

6,497

4,585

5,867

-

-

3,994

7,256

1,781

-

1,781

-

23,713

24,502

20,824

23,572

Employee cost

(224,245)

(221,509)

(128,422)

(125,178)

Materials and services

(262,388)

(294,051)

(166,573)

(192,056)

(20,569) 110,856

(23,828) 83,770

(17,505) 96,220

(20,719) 75,218

infrastructure, plant and equipment

2,866

12,123

1,819

1,726

Proceeds from sale of investments

-

-

-

5,000

(111,905)

(124,369)

(105,238)

(111,422)

(6,594)

(62)

-

-

(115,633)

(112,308)

(103,419)

(104,696)

-

43

3,662

2,869

(Repayments)/Proceeds of borrowings

1,500

(6,000)

-

-

Net Cash used by Financing Activities

1,500

(5,957)

3,662

2,869

(3,277)

(34,495)

(3,537)

(26,609)

Cash and cash equivalents at beginning of the financial year

114,001

148,496

102,876

129,485

Cash and cash equivalents at the end of the financial year

110,724

114,001

99,339

102,876

Other (including sales & recoveries) Payments

Grants and Other Payments Net Cash provided by Operating Activities

17(a)

Cash Flows from Investing Activities Proceeds from sale of properties

Payments for property, infrastructure, plant and equipment Purchase of investments Net Cash used by Investing Activities Cash Flows from Financing Activities Dividends received

Net decrease in cash and cash equivalents

17(b)

The Statement of Cash Flows should be read in conjunction with the accompanying notes to the financial report.

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTES TO AND FORMING PART OF THE FINANCIAL REPORT Introduction These Financial Statements are for the entity the Melbourne City Council (the “Council”) and controlled entities.

The Council is a body corporate, domiciled in Australia, constituted pursuant to the Local Government Act 1989 to provide for the peace and good government of its municipal district. The Town Hall is located at 90-120 Swanston Street, Melbourne VIC 3000.

The purpose of the Council is to: • Promote the social, economic and environmental viability and sustainability of the municipality.

• Ensure that resources are used efficiently and effectively.

The Council’s external auditors, advisers and bankers as at 30 June 2014: • External Auditor - Victorian Auditor-General’s Office • Internal Auditor - Deloitte Touché Tohmatsu • Solicitors - Hunt & Hunt, Ashurst, Maddocks • Bankers - Westpac Banking Corporation.

The Council’s website is melbourne.vic.gov.au.

The Consolidated Financial Statements of the Council as at and for the year ended 30 June 2014 comprise the Council, controlled entities and interest in associated entities.

Note 1. Significant accounting policies The significant policies, which have been adopted in the preparation of this Financial Report, are: a) Basis of preparation These Financial Statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Local Government Act (Vic) 1989, including the requirements of the Local Government (Finance and Reporting) Regulations (Vic) 2014. The Melbourne City Council and Sustainable Melbourne Fund are not-forprofit entities and CityWide Service Solutions Pty Ltd and its subsidiaries and the Queen Victoria Market Pty Ltd are for-profit entities for the purpose of preparing the financial statements.

The Financial Statements have been prepared on an accrual basis and on the historical cost basis except where specifically stated in notes.

The functional and presentation currency of the Council and consolidated entity is Australian Dollars.

b) Change in accounting policies AASB 13 Fair Value Measurement Council has applied AASB 13 for the first time in the current year. AASB 13 establishes a single source of guidance for fair value measurements. The fair value measurement requirements of AASB 13 apply to both financial instrument items and non-financial instrument items for which other A-IFRS require or permit fair value measurements and disclosures about fair value measurements, except for share-based payment transactions that are within the scope of AASB 2 Sharebased Payment, leasing transactions that are within the scope of AASB 17 Leases, and measurements that have some similarities to fair value but not fair value (e.g. net realisable value for the purposes of measuring inventories or value in use for impairment assessment purposes).

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. Fair value under AASB 13 is an exit price regardless of whether that price is directly observable or estimated using another valuation technique. AASB 13 includes extensive disclosure requirements. Other than the additional disclosures, the application of AASB 13 has not had any material impact on the amounts recognised in the financial statements.

AASB 13 requires prospective application from 1 January 2013. In addition, specific transitional provisions were given to entities such that they need not apply the disclosure requirements set out in the Standard in comparative information provided for periods before the initial application of the Standard. In accordance with these transitional provisions, Council has not made any new disclosures required by AASB 13 for the 2013 comparative period.

In addition, Council determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

AASB 119 Employee benefits In the current year, Council has applied AASB 119 Employee Benefits and the related consequential amendments for the first time. AASB 119 changes the definition of short-term employee benefits. These were previously benefits that were due to be settled within twelve months after the end of the reporting period

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in which the employees render the related service, however, short-term employee benefits are now defined as benefits expected to be settled wholly before twelve months after the end of the reporting period in which the employees render the related service. As a result, accrued annual leave balances which were previously classified

by Council as short-term benefits no longer meet this definition and are now classified as long-term benefits.

This has resulted in a change of measurement for that portion of annual leave provision from an undiscounted to discounted basis.

This change in classification has not materially altered Councils measurement of the annual leave provision. c) Principles of consolidation The consolidated results in this Financial Report include all funds through which the Council controls resources to carry on its functions. In the process of reporting on the Council as a consolidated unit, all intra and inter entity balances and transactions have been eliminated.

In the Council’s Financial Statements, investments in subsidiaries are carried at cost.

CityWide Service Solutions Pty Ltd and its subsidiaries and the Queen Victoria Market Pty Ltd are wholly owned subsidiaries of the Council incorporated in Australia and are included in the consolidated Financial Report.

The Sustainable Melbourne Fund Trust is wholly controlled trust of the Council and is included in the consolidated Financial Report.

MAP’s Group Pty Ltd (Trading as Procurement Australia) and Regent Management Company Pty Ltd are not consolidated as Council does not have a controlling interest. d) Business combinations Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value which is calculated as the sum of the acquisition date fair values of assets transferred to the consolidated entity, liabilities incurred by the consolidated entity to the former owners and the equity instruments issued by the consolidated entity in exchange for control of the acquiree.

Acquisition related costs are recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the acquisition date, except that: • deferred tax assets or liabilities and liabilities or assets related to employee benefit arrangements are recognised and measured in accordance with AASB 112 ‘Income Taxes’ and AASB 119 ‘Employee Benefits’ respectively;

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• liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in accordance with AASB 2 Share Based Payment at the acquisition date; and • assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 ‘Non-Current Assets Held for Sale and Discontinued Operations’ are measured in accordance with that Standard.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition date amounts of the identifiable assets acquired and the liabilities assumed.

Where the consideration transferred by the Consolidated Entity in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date fair value. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill.

Measurement period adjustments are adjustments that arise from additional information obtained during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. e) Taxation The 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 Council.

The wholly owned subsidiaries are subject to the Council’s tax equivalent policy. Where the subsidiary is exempt from certain taxes it pays an equivalent of the tax to 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 statements of cash flow on a gross basis, except for the GST component of investing and financing activities, which are shown in the operating activities.

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 f) Fees, fines, charges, rates, grants, and other contributions Fees and charges are recognised as revenue when services are provided or earned.

Sales and recoveries are recognised when received and included merchandise sales, sale of publications and sundry sales not elsewhere included.

Fines are recognised as revenue when the penalty is imposed.

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.

Rates, grants, and other contributions are recognised as revenues when the 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 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 the Council’s operations during the current financial year.

Dividends from subsidiaries are recognised as income when received or amounts have been declared at the FINANCIAL respective subsidiary company’s board meeting.

ii.

g) Intangibles i. Goodwill Where an entity or operation is acquired, the identifiable net assets acquired are measured at fair value. 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 annually for impairment. ii. Software Software, that is not an integral part of the related hardware, is classified as intangibles, recorded at cost and REPORT FOR THE YEAR ENDED 30 JUNE 2014 amortised on a straight line basis over a 5 year period.

Finance income and tax equivalents are recognised when Software it is earned and finance income includes interest on Software, interest that is on notrates an and integral part of the related investments, bad debt recoveries.

hardware, is classified as intangibles, recorded at cost and amortised on a straight line basis over a 5 year period.

iii.

Goodwill

Software

Useful lives

Indefinite

Finite

Method used

Not depreciated or re-valued

5 years – straight line

Internally generated / acquired

Acquired

Acquired

Impairment test / recoverable amount test

Reviewed annually for indication of impairment

Amortised method reviewed at each financial year end and reviewed annually for indication of impairment

Customer relationship assets The fair value of customer relationships acquired is calculated considering the estimated future recurring revenues from existing customers in the acquired operations at the date of the acquisition. Any deferred tax liabilities related to customer relationships are calculated and recorded as a part of goodwill. Customer relationships have a useful life of 5 years and are amortised on a straight-line basis.

h)

Employee benefits i.

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 2013/14 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 3.02% 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.

For employee entitlements, long service leave entitlements for employees with over 7 years of service and all annual leave entitlements are classified as current. Long service leave entitlements for employees with less than 7 years of service is classified as non-current. Long service leave expected to be taken in the next twelve months is recorded at nominal value and

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iii. Customer relationship assets The fair value of customer relationships acquired is calculated considering the estimated future recurring revenues from existing customers in the acquired operations at the date of the acquisition. Any deferred tax liabilities related to customer relationships are calculated and recorded as a part of goodwill.

Customer relationships have a useful life of 5 years and are amortised on a straight-line basis. h) Employee benefits i. 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 2013/14 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 3.02% 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.

For employee entitlements, long service leave entitlements for employees with over 7 years of service and all annual leave entitlements are classified as current.

Long service leave entitlements for employees with less than 7 years of service is classified as non-current. Long service leave expected to be taken in the next twelve months is recorded at nominal value and long service leave not expected to be taken over the next twelve months is recorded at present value. ii. Superannuation - defined contribution plans A defined benefit contribution plan is a postemployment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

Obligations for contributions to defined contribution plans are recognised as an employee benefits expenses in profit or loss in the periods during which the services are rendered by employees.

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that benefit is discounted to determine its present value.

Any unrecognised past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on Government bonds that have maturity dates approximating the terms of the Council’s obligations.

The calculation is performed periodically by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Council, the recognised asset is limited to the total of any unrecognised past service costs and the present value of the economic benefits available in the form of any future refunds from the plan or reduction in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in the Council. An economic benefit is available to the Council if it is realisable during the life of the plan, or on settlement of the plan liabilities. When the benefits of a plan are improved, the portion of the increased benefit related to past service by employees is recognised in the profit or loss on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in profit or loss.

The Council recognises all actuarial gains and losses arising from defined benefits plans in other comprehensive income and all expenses relating to defined benefit plans in employee benefits expense in profit or loss.

The Council recognises gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, change in the present value of defined benefit obligation and any related actuarial gains and losses and past service cost that had not previously been recognised.

However, where the Council participates in multiemployer defined benefits plans for which sufficient information is not available to use defined benefits accounting as set out above, it accounts for contributions to those plans as if they were defined contributions plans.

Details of these arrangements are set out in Note 20 ‘Defined Benefits Superannuation Funds’.

iii. Superannuation - defined benefits plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Council’s net obligation in respect of defined benefits pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods;

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plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any Hi-Res PDF - GOOD For Print resultingSIGN change in the assets, change in the present value of defined benefit AcD PrM of plan GrD fair value OFF BOX obligation and any related actuarial gains and losses and past service cost that had not previously been recognised.

However, where the Council participates in multi-employer defined benefits plans for which sufficient information is not available to use defined benefits accounting as set out above, it accounts for contributions to those plans as if they were defined contributions plans.

Details of these arrangements are set out in Note 20 â&#x20AC;&#x2DC;Defined Benefits Superannuation Fundsâ&#x20AC;&#x2122;. i)

Depreciation

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Depreciation measures the service potential of buildings, infrastructure assets, plant and equipment i) Depreciation the useful lives of the assets to the economic entity. consumed during the year.

Trees, land and artworks are not depreciated as they are considered to Depreciation measures the service potential of buildings, Depreciation rates are reviewed each financial year. have either unlimited useful lives or to be self-generating assets. Depreciation is recognised on a infrastructure assets, plant and equipment consumed periods for the majorDepreciation classes of assets straight-line basis over the useful lives ofThe thedepreciation assets to the economic entity. rates are during the year. Trees, land and artworks are not are shown below which represent a range of useful lives reviewed each financial year. depreciated as they are considered to have either for each class of asset.

The periods for the major classes of assets are shown below which represent a range of unlimited useful lives or to depreciation be self-generating assets. usefulonlives for each class asset.

Depreciation is recognised a straight-line basis of over 2013/14

2012/13

10-50 Years

10-50 Years

100 Years

100 Years

40-94 Years

40-100 Years

5-20 Years

5-20 Years

Statues, sculptures and artworks

0-100 Years

0-100 Years

Roads and laneways - seal

10-17 Years

10-20 Years

Roads and laneways - substructure

30-80 Years

30-90 Years

Footpaths

10-50 Years

10-50 Years

Kerb and channel

30-50 Years

30-50 Years

Bridges

50-94 Years

50-94 Years

Drains

50-165 Years

50-185 Years

Irrigation systems

10-20 Years

10-20 Years

Parks and gardens infrastructure

10-50 Years

10-50 Years

Other structures

5-50 Years

5-50 Years

Furniture and fittings

5-10 Years

5-10 Years

Buildings Heritage assets Promenades and wharves Plant and equipment

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset the time an asset is completed and held ready for use. is completed and held ready for use. j) Cash and cash equivalents For purposes of the balance sheet, cash and cash equivalents includes short term deposits, bank bills, transferrable certificates of deposit 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.

recognition of the asset, and that loss event had a 10 of 58 negative effect on the estimated future cash flows of that asset that can be reliably measured. Objective evidence that financial assets are impaired can include indications of significant financial difficulties, debtor bankruptcy, financial reorganisation or default in payment. In addition, for an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment.

k) Receivables and payables Trade and other receivables are initially recognised at fair value and subsequently at recoverable amount. They are classified as current assets except where the maturity is greater than 12 months after the reporting period date, in which case they are classified as non-current.

All individually significant trade and other receivables are assessed for specific impairment. All individually significant receivables and those that are not individually significant are then assessed for impairment on a collective basis, by grouping those with similar risk characteristics. An impairment loss in respect of a financial asset measured at amortised costs is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the assetâ&#x20AC;&#x2122;s original effective interest rate.

Losses are recognised in profit or loss and reflected in an allowance account against receivables. When a subsequent event (e.g. repayment) causes the amount of the impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. No allowance for impairment is made for rate debtors because the debts are collectable against the property.

Trade and other payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed. Trade and other payables are recognised initially at fair value and subsequently at amortised cost. l) Impairment of financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired.

A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial

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m)Property, plant, equipment and infrastructure i. Capital and recurrent expenditure As a general rule, 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 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. ii. 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 is defined in AASB 13(9) as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. iii. Construction work in progress The cost of property, plant, equipment and infrastructure constructed by the Council includes the cost of materials and direct labour. iv. Leases The 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. v. Asset revaluation 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.

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. vi. Valuation Consistent with AASB 13 ‘Fair Value Measurement’, Melbourne City Council determines the policies and procedures for both recurring fair value measurements such as property and infrastructure assets and for nonrecurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13.

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vii. 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 depreciated replacement cost, is compared to the assets carrying value. Any shortfall of the assets carrying value over its recoverable amount is expensed to the comprehensive income statement. n) Non-cash donations Non-cash donations in excess of $2,000 value are recognised as revenue. o) Rounding Unless otherwise stated, amounts in the Financial Statements are rounded to the nearest thousand dollars. p) Web site costs Costs in relation to web sites controlled by the 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. q) 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 twelve months, being the Council’s operational cycle. r) 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. Any changes to fair value are recorded in the comprehensive income statement.

Investment properties are not depreciated. s) Interest-bearing liabilities All loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds, net of transaction costs, and the redemption amount is recognised over the life of the instrument using the effective interest rate method. Borrowings are derecognised when the obligation specified in the contract has been discharged, cancelled or expires. The difference between the carrying amount of the derecognised borrowing and the consideration paid is recognised as other income or finance costs. Borrowings are classified as current liabilities unless unconditional right to defer settlement of the liability exists for at least 12 months after the reporting date.

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 effective interest rate method. Borrowings are derecognised when the obligation specified in the contract has been discharged, cancelled or expires. The difference between the carrying amount of the derecognised borrowing and the consideration paid is recognised as other income or finance costs. Borrowings are classified as current liabilities unless unconditional right to defer settlement of 30 JUNE 2014 FINANCIAL REPORT FOR THE YEAR ENDED the liability exists for at least 12 months after the reporting date. t)

Income received in advance

u) Pending Accounting Standards t) Income received in advance A liability is recognised in respect of revenue in nature Australian to the extent that the requisite The following Accounting Standards have A liability is recognised in respect of revenue that is that is reciprocal service has not been provided date in relation been to feeissued for services. or amended and have been adopted where reciprocal in nature to the extent that at thebalance requisite service has not been providedStandards at balance date in relation applicable to the Council. u) Pending Accounting to fee for services.

The following Australian Accounting Standards have been issued or amended and have been adopted where applicable to the Council.

v)

Effective Date

Pronouncement

Summary

Impact/Action

AASB 9 Financial Instruments

AASB 9 simplifies the classifications of financial assets into those to be carried at amortised cost and those to be carried at fair value – the ‘available for sale’ and ‘held-to-maturity’ categories no longer exists. AASB 9 also simplifies requirements for embedded derivatives and removes the tainting rules associated with held-to-maturity assets.

The impact is not likely to be extensive in the local,government sector.

1 Jul 2015

AASB 10 Consolidated Financial Statements

This Standard forms the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 10 defines ‘control’ as requiring exposure or rights to variable returns and the ability to affect those returns through power over an investee, which may broaden the concept of control for public sector entities.

Council will need to reassess the nature of its relationships with other entities, including those that are currently not consolidated.

1 Jul 2014

AASB 11 Joint Arrangements

This Standard deals with the concept of joint control, and sets out a new principles-based approach for determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.

Council will need to assess the nature of arrangements with other entities in determining whether a joint arrangement exists in light of AASB 11.

1 Jul 2014

AASB 12 Disclosure of Interests in Other Entities

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures.

Impacts on the level and nature of the disclosures will be assessed based on the eventual implications arising from AASB 10, AASB 11 and AASB 128 Investments in Associates and Joint Ventures.

1 Jul 2014

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

The impact of this standard will need to be assessed in line with the final deliberations by the AASB on the application of this standard to not for profit entities.

1 Jul 2014

AASB 128 Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

FINANCIAL REPORT FOR

The impact of this standard will need to be assessed in line with the final deliberations by the AASB on ENDED the THE YEAR 30 application of this standard to not for profit Impact/Action entities.

1 Jul 2014

Pronouncement

Summary

AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounts Standard arising from Reduced Disclosure Requirements

These standards set out the tiers of financial reporting and the reduced disclosure framework.

Council has yet to determine the impact of this standard.

JUNE 2014 Effective Date 1 Jul 2014

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Critical accounting judgements and key sources of estimation uncertainty In application of the Council's policies, Council is required to make judgements, estimates and 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 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.

Information about critical assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

w)

•

Note 9. Property, plant, equipment and infrastructure (fair value measurement)

•

Note 10. Intangible assets (goodwill impairment assessment)

•

Note 11. Investment property (fair value measurement)

•

Note 13. Employee benefits (leave provisions)

•

Note 20. Defined benefits superannuation funds (measurement of plan assets and liabilities).

Comparative Figures

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v) Critical accounting judgements and key sources of estimation uncertainty In application of the Council’s policies, Council is required to make judgements, estimates and 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 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.

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• Note 9. Property, plant, equipment and infrastructure (fair value measurement) • Note 10. Intangible assets (goodwill impairment assessment) • Note 11. Investment property (fair value measurement) • Note 13. Employee benefits (leave provisions) • Note 20. Defined benefits superannuation funds (measurement of plan assets and liabilities). w) Comparative Figures When necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.

Information about critical assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Note 2.

2. Operating Operating result attributabletotofunctions/ functions/activities Note result attributable activities a) Revenues and expenses attributed to functions/activities

a)

Revenues and expenses attributed to functions/activities

Functions/ Activities

Revenues

Expenses

Net Surplus/ (Deficit) for the year

2012/13

$'000 112,699

$'000 (143,822)

$'000 (31,123)

2013/14

104,352

(145,402)

(41,050)

2012/13 2013/14

19,990 20,725

(65,196) (66,208)

(45,206) (45,483)

2012/13

22,064

(35,251)

(13,187)

2013/14

15,336

(40,930)

(25,594)

City Business

2012/13 2013/14

4,778 6,618

(46,104) (46,846)

(41,326) (40,228)

Chief Executive

2012/13 2013/14

488 600

(11,805) (10,548)

(11,317) (9,948)

Corporate Business

2012/13 2013/14

249,881 252,926

(56,508) (59,280)

193,373 193,646

2012/13

204,686

(203,273)

1,413

2013/14

199,057

(194,364)

4,693

2012/13

614,586

(561,959)

52,627

2013/14

599,614

(563,578)

36,036

City Planning & Infrastructure Community Development City Design

Subsidiaries TOTAL

b)

A brief description of the goal of each function is as follows: i.

Functions/activities providing quality support functions to the Council City Planning and Infrastructure Advises the Council on city planning for the sustainable development of Melbourne through research, policy development, program and infrastructure delivery and planning.

Community Development

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Provides a range of services, specific programs and recreation services for residents and visitors, contributing to building strong local communities that are inclusive and supportive.

This, with the delivery of cultural programs and the management of the City’s cultural infrastructure, enhances the Council’s reputation as a safe, attractive, liveable and accessible city. The Division is also responsible for providing a direct customer liaison, information and JOB organisation's SIZE. 297mm(h) x 210mm(w) advocacy serviceDATE. and29.09.2014 driving the approach to the delivery of high quality JOB NO. REV. CLIENT. JOB NAME. customer service.033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA City Design

93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU

© OPTIMO 2014 Responsible on behalf of the Council for providing urban design policy, advice, design, project management and management of parks and reserves.

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 b) A brief description of the goal of each function is as follows: i. Functions/activities providing quality support functions to the Council City Planning and Infrastructure

Corporate Business To provide a range of quality support functions to the Council. This assists the Council in providing the highest standard of services to the city. ii. Subsidiaries supporting Council in providing services to the community CityWide Service Solutions Pty Ltd and its controlled entities Sterling Group Services Pty Ltd, AWD Earthmoving Pty Ltd and Technigro Australia Pty Ltd.

Advises the Council on city planning for the sustainable development of Melbourne through research, policy development, program and infrastructure delivery and planning.

Community Development

To meet the contract service needs of local government, Provides a range of services, specific programs and other governments, and private and public sector recreation services for residents and visitors, contributing corporations by providing a comprehensive range of to building strong local communities that are inclusive quality, physical services at competitive rates. and supportive. This, with the delivery of cultural FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Queen Victoria Market Pty Ltd programs and the management of the City’s cultural To ensure that the maintains and enhances an ii.

Subsidiaries supporting Council services tomarket the community infrastructure, enhances the Council’s reputation as a in providing industry reputation as Australia’s foremost leading market, safe, attractive, liveable and accessible city. The Division CityWide Service Solutions Pty Ltd and its controlled entities Sterling Group Services Pty Ltd, whilst meeting world’s best practice standards. is also responsible for providing a direct customer AWD Earthmoving Pty Ltd and Technigro Australia Pty Ltd. liaison, information and advocacy service and driving the Sustainable Melbourne Fund Trust To meet to the contract needs of local government, other governments, and private and organisation’s approach the delivery service of high quality A self-sustaining fund of setquality, up by the Council services which invests public sector corporations by providing a comprehensive range physical at customer service. funds in projects with environmental benefits to the City. competitive rates.

City Design The projects may extend beyond the boundaries of the Queen Victoria Market Pty Ltd Council to the broader state of Victoria, reflecting the Responsible on behalf of the Council for providing urban position an of Melbourne as the capital of Victoria. design policy, advice, design, project management and To ensure that the market maintains and enhances industry reputation ascity Australia’s management offoremost parks andleading reserves. market,

whilst meeting world’s best practice standards. iii. Significant interests

The Council has a majority ownership of the MAPS Group Ltd (Trading as Procurement Australia) through its Provides leadership in events management, A self-sustaining fund set up by the Council which invests funds withofenvironmental holdings, however due in to projects the structure the company communications and marketing, promoting tourism may extend beyond the boundaries of the Council to the benefits to the City.

The projects the Council does not have a majority of voting rights. within the city and providing to business andthe position of Melbourne as the capital city of Victoria. broader stateguidance of Victoria, reflecting The Council and the State Government each have a international interaction. iii.

Significant interests 50% shareholding in Regent Management Company Chief Executive Ltd. Group The Company was incorporated to oversee the The Council has a majority ownership of the Pty MAPS Ltd (Trading as Procurement To ensure a well-managed and leading organisation reconstruction of the Regent Theatre, operate as landlord Australia) through its holdings, however due to the structure of the company the Council does through the delivery of effective and accountable of the Regent Theatre and to enter into a refurbishment not have a majority of voting rights. governance and business processes. agreement for the restoration and lease of the theatre.

City Business

Sustainable Melbourne Fund Trust

The Council and the State Government each have a 50% shareholding in Regent Management Company Pty Ltd. The Company was incorporated to oversee the reconstruction of the Regent Theatre, operate as landlord of the Regent Theatre and to enter into a refurbishment agreement for the restoration and lease of the theatre.

REVENUES REVENUES Note 3. 3.Revenues Note Revenues a) Rates a)

Rates

General rates - Residential - Com m ercial and retail Cultural & recreational land rates Supplem entary rates Objections/Exem ptions

Consolidated 2014 2013 $'000 $'000 67,703 145,773 383 3,968 (3,990) 213,837

62,735 138,730 370 3,139 (1,398) 203,576

2014 $'000

Council

67,703 145,773 383 3,968 (3,990) 213,837

2013 $'000 62,735 138,730 370 3,139 (1,398) 203,576

The 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 five 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 2012 and the valuation first applied to the rating period commencing 1 July 2012. The valuation for rating purposes is performed on a two year cycle.

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The Council uses ‘net annual value’ as the basis of The date of the general valuation of land for rating valuation of all properties within the municipal district. purposes within the municipal district was 1 January The net annual value of a property approximates 2012 and the valuation first applied to the rating period the annual net rental for a commercial property and commencing 1 July 2012. The valuation for rating five per cent of the capital improved value for a purposes is performed on a two year cycle. residential property.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 b) Grants other contributions b) and Grants and other contributions

State Grants - Operating Roads Corporation Libraries Grant Victoria Grants Commission Pre School Services Support Services for Families Maternal & Child Health Home & Community Services Grant Arts Grant Disability Services Grant Other Federal Grants - Operating Federal Grant - Aged & Disability Federal Grant- Other State Grants - Capital Parking Levy Buildings & Equipment Cultural Precincts Enhancement Fund Northbank Promenade Park & Gardens Road & Streets Living Victoria Fund Federal Grants - Capital Road & Streets Park & Gardens Total Other Non-Government - Capital Public Open Space Contributions Other Contributions Child Care Benefit Sponsorships Total Grants & Other Contributions

Grants – Operating (recurrent) Grants – Operating (non-recurrent) Grants – Capital (recurrent) Grants – Capital (non-recurrent) Total Grants & Other Contributions

Consolidated 2014 2013 $'000 $'000

2014 $'000

Council

2013 $'000

132 685 1,166 323 493 493 2,634 111 117 2,239 8,393

157 977 1,960 270 307 461 2,479 10 111 1,125 7,857

132 685 1,166 323 493 493 2,634 111 117 2,239 8,393

157 977 1,960 270 307 461 2,479 10 111 1,062 7,794

175 534 709

185 327 512

175 534 709

185 327 512

7,000 1,812 2,997 682 1,500 13,991

5,000 571 375 8,743 4,591 3,435 22,715

7,000 1,812 2,997 682 1,500 13,991

5,000 571 375 8,743 4,591 3,435 22,715

428 14 442

347 347

428 14 442

347 347

173 6,743 239 1,597 900 9,652 33,187

418 6,334 152 1,500 934 9,338 40,769

173 6,743 239 1,597 754 9,506 33,041

418 6,334 152 1,500 603 9,007 40,375

Consolidated 2014 2013 $'000 $'000 9,526 10,081 2,312 874 13,743 11,334 7,606 33,187

18,480 40,769

Council 2014 2013 $'000 $'000 9,380 9,687 2,312 874 13,743 11,334 7,606 33,041

18,480 40,375

134 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

c) Parking fees c) Parking

c) c)

fees Parking fees Parking fees

On street parking On Off street parking On street parking Off Towstreet awayparking fees Off Towstreet awayparking fees Tow away fees

d)

Finance income income Finance income

d) Finance income d) Finance

d)

Interest received from investments Interest received investments due from from overdue rates Interest investments Interest due from from overdue rates Other received Interest Other due from overdue rates Other

e) Conditions over contributions e) Conditions over contributions e) Conditions over contributions e) Conditions over contributions Grants recognised as revenues during the Grants as revenues during the financialrecognised year and which were obtained on Grants recognised as be revenues during financial year that and they which were obtained on the condition expended in athe financial year that andthat which obtained the condition they bewere expended in aaton specific manner had not occurred the condition theyhad be not expended in aat specific manner occurred balance date:thatthat specific manner that had not occurred at balance date: Grants for capital works balance date: Grants for capital works other purposes Grants for capital works other purposes Grants for other purposes Deduct Deduct Grants Deductwhich were recognised as revenues Grants were recognised as revenues in prior which year and which were expended Grants which were recognised as revenues in priorthe yearcurrent and which were during year in the expended manner in prior year and which were expended during thewere: current year in the manner specified during currentworks year in the manner specified Grants the forwere: capital specified were: Grants for capital works other purposes Grants for capital works other purposes Grants for other purposes Net increase/(decrease) in restricted Net increase/(decrease) in restricted assets resulting from grant revenue for the Net increase/(decrease) in restricted assets resulting from grant revenue for the financial year assets resulting from grant revenue for the financial year financial year

EXPENSES EXPENSES EXPENSES Note 4. Expenses

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Consolidated Consolidated 2014 2013 Consolidated 2014 2013 $'000 $'000 2014 2013 $'000 $'000 39,498 33,433 $'000 $'000 39,498 33,433 9,993 8,873 39,498 33,433 9,993 8,873 1,337 1,438 9,993 8,873 1,337 1,438 50,828 43,744 1,337 1,438 50,828 43,744 50,828 43,744

Council Council 2014 2013 2014 Council $'000 2013 $'000 2014 2013 $'000 $'000 39,498 33,433 $'000 $'000 39,498 33,433 5,961 5,151 39,498 33,433 5,961 5,151 1,337 1,438 5,961 5,151 1,337 1,438 46,796 40,022 1,337 1,438 46,796 40,022 46,796 40,022

Consolidated Consolidated 2014 2013 Consolidated 2014 2013 $'000 $'000 2014 2013 $'000 $'000 3,735 5,367 $'000 $'000 3,735 5,367 321 732 3,735 5,367 321 732 283 440 321 732 283 440 4,339 6,539 283 440 4,339 6,539 4,339 6,539

Council 2014 Council 2013 2014 Council $'000 2013 $'000 2014 2013 $'000 $'000 3,535 5,122 $'000 $'000 3,535 5,122 321 732 3,535 5,122 321 732 28 53 321 732 28 53 3,884 5,907 28 53 3,884 5,907 3,884 5,907

Consolidated Consolidated 2014 2013 Consolidated 2014 2013 $'000 $'000 2014 2013 $'000 $'000 $'000 $'000

Council 2014 Council 2013 2014 Council $'000 2013 $'000 2014 2013 $'000 $'000 $'000 $'000

5,266 5,266 1,038 5,266 1,038 6,304 1,038 6,304 6,304

6,150 6,150 317 6,150 317 6,467 317 6,467 6,467

5,266 5,266 1,038 5,266 1,038 6,304 1,038 6,304 6,304

6,150 6,150 317 6,150 317 6,467 317 6,467 6,467

6,150 6,150 317 6,150 317 6,467 317 6,467 6,467

666 666 824 666 824 1,490 824 1,490 1,490

6,150 6,150 317 6,150 317 6,467 317 6,467 6,467

666 666 824 666 824 1,490 824 1,490 1,490

(163) (163) (163)

4,977 4,977 4,977

(163) (163) (163)

4,977 4,977 4,977

Note 4. Expenses a) Employee benefit expenses Note 4.

Expenses a) a)

Employee benefit expenses Employee benefit expenses

Wages and salaries Wages leave and salaries Annual and long service leave Wages and salaries Annual leave and long service leave Fringe benefits Annual leave Fringe benefits WorkCover and long service leave Fringe benefits WorkCover Superannuation WorkCover Superannuation Superannuation

Consolidated Consolidated 2014 2013 Consolidated 2014 2013 $'000 $'000 2014 2013 $'000 $'000 180,832 168,981 $'000 $'000 180,832 168,981 18,863 20,123 180,832 168,981 18,863 20,123 2,112 1,995 18,863 20,123 2,112 1,995 2,943 2,891 2,112 1,995 2,943 2,891 17,078 15,311 2,943 2,891 17,078 15,311 221,828 209,301 17,078 15,311 221,828 209,301 221,828 209,301

Council 2014 Council 2013 2014 Council $'000 2013 $'000 2014 2013 $'000 $'000 105,349 96,652 $'000 $'000 105,349 96,652 12,231 12,677 105,349 96,652 12,231 12,677 585 571 12,231 12,677 585 571 567 388 585 571 567 388 10,749 7,651 567 388 10,749 7,651 129,481 117,939 10,749 7,651 129,481 117,939 129,481 117,939

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Hi-Res PDF - GOOD For Print Grants which were recognised as revenues AcD PrM SIGN OFF BOX GrD in prior year and which were expended during the current year in the manner specified were: Grants for capital works 6,150 666 Grants for other purposes 317 824 6,467 1,490 Net increase/(decrease) in restricted assets resulting from grant revenue for the financial year (163) 4,977

EXPENSES EXPENSES

6,150 317 6,467

666 824 1,490

(163)

4,977

Note 4. Expenses Note 4. EXPENSES a) Employee benefit expenses a) Employee benefit

expenses Consolidated 2014 $'000 180,832 18,863 2,112 2,943 17,078 221,828

Wages and salaries Annual leave and long service leave Fringe benefits WorkCover Superannuation

2013 $'000 168,981 20,123 1,995 2,891 15,311 209,301

Council 2014 $'000 105,349 12,231 585 567 10,749 129,481

2013 $'000 96,652 12,677 571 388 7,651 117,939

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 b) Contract payments,payments, materials and services b) Contract materials

and FINANCIAL services REPORT FOR THE YEAR ENDED 30 JUNE 2014

b)

Contract payments, materials and services Consolidated 2014 Consolidated 2013 $'000 $'000 2014 2013 Contract payments 133,360 $'000 $'000140,986 Other materials and services 109,077 110,632 Contract payments 133,360 140,986 Auditors remuneration (e) 658 Other materials and services 109,077 110,632697 243,095 252,315 Auditors remuneration (e) 658 697

c) Depreciation and amortisation c) Depreciation and amortisation c) Depreciation and amortisation

Buildings Buildings Buildings leasehold improvements Buildings leasehold improvements Heritage assets Heritage assets Wharves and promenades Wharves and promenades Plant and equipment Plant and equipment Statues, sculptures, and artwork Statues, sculptures, and artwork Roads & laneways - substructure Roads & laneways - substructure Roads & laneways - seal Roads & laneways - seal Footpaths Footpaths Kerb & channel channel Kerb & Bridges Bridges Drains Drains Irrigationsystems systems Irrigation Parks and gardensinfrastructure infrastructure Parks and gardens Other structures Other structures Furnitureand andfittings fittings Furniture Amortisation Amortisationof ofintangibles intangibles

d) d)

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2014 2013 Council $'000 $'000 2014 2013 $'000114,523$'000 115,112 42,667 115,112 42,368 114,523 361 42,667 42,368 340 157,551 157,820 361 340 157,551 157,820

Consolidated Consolidated 2013 2014 2014 2013 $'000 $'000 $'000 4,963 $'000 4,849 4,963461 4,849327 461 327 1,145 1,093 1,145 1,093 1,037 1,035 1,037 1,035 18,865 17,943 18,865 17,943 598 589 598 589 6,165 6,066 6,165 6,066 3,386 3,614 3,386 3,614 13,841 12,833 13,841 12,833 5,326 5,113 5,326 5,113 1,365 1,437 1,365 1,437 1,039 1,021 1,039 1,021 1,615 1,520 1,615 1,520 4,692 4,689 4,692 4,689 205205 284284 714714 771771 65,417 63,184 65,417 63,184 4,050 4,144 4,050 4,144 69,467 67,328 69,467 67,328

Council Council 2014 2013 2014 2013$'000 $'000 $'000 4,770$'000 4,665 4,770 162 4,665 146 162 1461,093 1,145 1,145 1,093 1,037 1,035 1,037 1,035 6,072 5,175 6,072 5,175 598 589 598 589 6,165 6,066 6,165 6,066 3,386 3,614 3,386 3,614 13,841 12,833 13,841 12,833 5,326 5,326 5,1135,113 1,365 1,365 1,4371,437 1,039 1,039 1,0211,021 1,615 1,615 1,5201,520 4,692 4,692 4,6894,689 205 205 284 284 538 538 536 536 51,956 49,816 49,816 51,956 3,325 3,0063,006 3,325 55,281 55,281 52,822 52,822

Consolidated Consolidated 2014 2013 2014 2013 $'000 $'000 $'000 $'000 2,786 3,207 2,786 3,207 2,719 2,360 2,719 2,360 13,347 13,465 13,347 13,465 111 3,907 111 3,907 1,596 672 1,596 672 6 199 6 3,561 7,582199 3,561 7,582 24,126 31,392 24,126 31,392

Council Council 20142014 20132013 $'000 $'000 $'000 $'000 1,622 1,658 1,622 1,658 2,494 1,604 2,494 1,604 13,347 13,465 13,347 13,465 111 3,907 111 3,907 702 158 702 158 1 108 1 108 3,561 7,582 3,561 7,582 21,838 28,482 21,838 28,482

Other Otherexpenses expenses

Insurance Insurance Other costs Other costs Grants and contributions Grants and contributions Fire brigade levy Fire brigade levy Taxes and levies Taxes and levies Impairment - Trade debtors Impairment Trade debtors Impairment --Parking infringements notices Impairment - Parking infringements notices

e) e)

243,095

Council

Auditors' remuneration Auditors' remuneration

Consolidated Council Council 2014 Consolidated 2013 2014 2013 2014 2013 2014 $ 297mm(h) x 210mm(w) $ $ $ 2013 DATE. 29.09.2014 JOB SIZE. JOB NO. REV. CLIENT. JOB NAME. $ Audit services - Victoria Auditor-Generals $ $ $ 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA Office 224,000 217,000 126,000 122,000 Audit services - Victoria Auditor-Generals Audit 434,000 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA 235,000 Officeservices - Internal 224,000 479,903 217,000 126,000 217,998 122,000 | E. PRODUCTION@ OD.COM.AU PH. (03) 9686 7766 | W. 658,000 WWW.OD.COM.AU 361,000 Audit services - Internal 434,000 696,903 479,903 235,000 339,998 217,998 Š OPTIMO 2014 658,000 696,903 361,000 339,998

Footpaths 13,841 12,833 13,841 12,833 Roads & laneways - seal 3,386 3,614 3,386 3,614 Hi-Res PDF - GOOD Kerb & channel 5,326 For Print 5,113 5,326 5,113 Footpaths 13,841 12,833 13,841 12,833 AcD PrM SIGN OFF BOX GrD Bridges 1,365 1,437 1,365 1,437 Kerb & channel 5,326 5,113 5,326 5,113 Drains 1,039 1,021 1,039 1,021 Bridges 1,365 1,437 1,365 1,437 Irrigation systems 1,615 1,520 1,615 1,520 Drains 1,039 1,021 1,039 1,021 Parks andsystems gardens infrastructure 4,692 4,689 4,692 4,689 Irrigation 1,615 1,520 1,615 1,520 Other 205 284 205 284 Parks structures and gardens infrastructure 4,692 4,689 4,692 4,689 Furniture and fittings 714 771 538 536 Other structures 205 284 205 284 65,417 63,184 51,956 49,816 Furniture and fittings 714 771 538 536 Amortisation of intangibles 4,050 4,144 3,325 3,006 65,417 63,184 51,956 FINANCIAL REPORT FOR THE YEAR ENDED 3049,816 JUNE 2014 69,467 67,328 55,281 52,822 Amortisation of intangibles 4,050 4,144 3,325 3,006 d) Other expenses

d) d)

Other expenses Other expenses

Insurance Other costs Insurance Grantscosts and contributions Other Fire brigade levy Grants and contributions Taxes and levies Fire brigade levy Impairment - Trade debtors Taxes and levies Impairment - Parking infringements notices Trade debtors Impairment - Parking infringements notices

e) Auditors' remuneration e) Auditorsâ&#x20AC;&#x2122; remuneration e) Auditors' remuneration

Audit services - Victoria Auditor-Generals Office Audit services - Victoria Auditor-Generals Audit Officeservices - Internal Audit services - Internal

ASSETS ASSETS

69,467

67,328

Consolidated 2014 2013 Consolidated $'000 $'000 2014 2013 2,786 3,207 $'000 $'000 2,719 2,360 2,786 3,207 13,347 13,465 2,719 2,360 111 3,907 13,347 13,465 1,596 672 111 3,907 6 199 1,596 672 3,561 7,582 6 199

55,281

Council 2014 Council 2013 $'000 $'000 2014 2013 1,622 1,658 $'000 $'000 2,494 1,604 1,622 1,658 13,347 13,465 2,494 1,604 111 3,907 13,347 13,465 702 158 111 3,907 1 108 702 158 3,561 7,582 1 108

3,561 24,126

7,582 31,392

3,561 21,838

7,582 28,482

24,126

31,392

21,838

28,482

Consolidated 2014 2013 Consolidated $ $ 2014 2013 $ 224,000 434,000 224,000 658,000 434,000 658,000

$ 217,000 479,903 217,000 696,903 479,903 696,903

Council 2014 Council 2013 $ $ 2014 2013 $ $ 126,000 122,000 235,000 217,998 126,000 122,000 361,000 339,998 235,000 217,998 361,000

Rates Parking infringement debtors Provision for doubtful debts - Parking infringement Trade debtors Provision for doubtful debts - Trade debtors GST receivable

19 of 58 19 of 58

Consolidated 2014 2013 $'000 $'000 2,878 3,101 27,814 27,995

Council 2014 2013 $'000 $'000 2,879 3,101 27,814 27,995

(14,732) (16,189) (14,732) 33,502 36,196 5,044 (556) (610) (246) 8,789 7,070 5,867 57,695 57,563 26,626 Trade debtors are unsecured and have credit terms of 30 days from the date of invoice.

Trade Debtors Ageing of past due but not impaired Current and less than 60 days 60-90 days 90-120 days 120+ days Total

339,998

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Note 5. Trade and other receivables Note 5. Trade and other receivables Current

52,822

Consolidated 2014 2013 $'000 $'000 31,879 34,777 493 355 381 452 749 612

(16,189) 9,878 (286) 4,632 29,131

Council 2014 2013 $'000 $'000 4,844 9,555 123 91 43 187 34 45

9,878 33,502 36,196 5,044 This disclosure relates only to Trade Debtors. Rates and Parking Infringement Debtors are not financial instruments and are therefore not included.

Provision for doubtful debts Provision for doubtful debts - Parking infringement Provision for doubtful debts - Trade debtors Total Movement in doubtful debts - Parking infringement Balance at the beginning of the year New provisions recognised Amounts written off as uncollectible Balance at the end of the year Movement in doubtful debts - Trade debtors Balance at the beginning of the year New provisions recognised

Consolidated 2014 2013 $'000 $'000 14,732 556 15,288

16,189 610 16,799

2014 $'000

Council

14,732 246 14,978

2013 $'000 16,189 286 16,475

Consolidated 2014 2013 $'000 $'000 16,189 16,039 3,561 7,582 (5,018) (7,432) 14,732 16,189

Council 2014 2013 $'000 $'000 16,189 16,039 3,561 7,582 (5,018) (7,432) 14,732 16,189

Consolidated 2014 2013 $'000 $'000 610 440 6 199

Council 2014 2013 $'000 $'000 286 207 1 108

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Rates Parking Infringement Debtors are not AcD PrM SIGN OFF BOX GrD 120+ days 749 612 34 45 instruments and are therefore not included.

Total 9,878 33,502 36,196 5,044 Council This disclosure relates only to Trade Debtors. RatesConsolidated and Parking Infringement Debtors are not financial Provision forand doubtful debts not included.

2014 2013 2014 2013 instruments are therefore $'000 $'000 $'000 $'000 Consolidated Council Provision for doubtful debts - Parking Provision for doubtful debts 2014 2013 2014 2013 infringement 14,732 16,189 14,732 16,189 $'000556 $'000610 $'000246 $'000286 Provision for doubtful debts - Trade debtors Provision for doubtful debts - Parking Total 15,288 16,799 14,978 16,475 infringement 14,732 16,189 14,732 16,189 Provision for doubtful debts - Trade debtors 556 610 246 286 Consolidated Council Movement in doubtful debts - Parking Total 15,288 16,799 14,978 16,475 2014 2013 2014 2013 infringement $'000 $'000 $'000 $'000 Consolidated16,039 Council 16,039 Balance at the beginning of the year 16,189 16,189 Movement in doubtful debts - Parking 2014 2013 2014 2013 New provisions recognised 3,561 7,582 3,561 7,582 infringement $'000 $'000 $'000 $'000 Amounts written off as uncollectible (5,018) (7,432) (5,018) (7,432) beginning of the year 16,189 16,039 16,189 16,039 Balance at the end of the year 14,732 16,189 14,732 16,189 New provisions recognised 3,561 7,582 3,561 7,582 Amounts written off as uncollectible (5,018) (7,432) (5,018) (7,432) Consolidated Council Movement in doubtful debts Balance at the end of the year- Trade 14,732 16,189 14,732 16,189 2014 2013 2014 2013 debtors $'000 $'000 $'000 $'000 Consolidated Council Balance at the beginning of the year 610 440 286 207 Movement in doubtful debts - Trade 2014 6 2013 199 2014 1 2013 108 New provisions recognised debtors $'000(60) $'000(29) $'000(41) $'000(29) Amounts written off as uncollectible beginning of the year 610 440 286 207 Balance at the end of the year 556 610 246 286 New provisions recognised 6 199 1 108 Note 6. Inventories Amounts written off as uncollectible (60) (29) (41) (29) Balance at the end of the year 556 610 246 286 Consolidated Council

Note 6. Inventories Note 6. Inventories

2014 2013 $'000 $'000 Consolidated 661 496 2014 (5) 2013 (5) $'000656 $'000491 661 496 (5) (5) 656 491

Stores and raw materials Provision for obsolete stock Stores and raw materials Provision for obsolete stock

2014 $'000 2014 $'000

2013 $'000

Council 2013 $'000 20 of -58 -

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 20 2014 of 58

Note 7. Other assets Note 7. Other assets

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Consolidated Council 2014 2013 2014 2013 $'000 $'000 $'000 $'000 Consolidated Council Prepayments 1,307 1,470 156 337 2014 2013 2014 2013 Tax equivalents & dividends 2,655 2,744 $'000 $'000 $'000 $'000 1,307 1,470 2,811 3,081 Prepayments 1,307 1,470 156 337 Tax equivalents & dividends 2,655 2,744 Note 8. Other financial assets 1,307 1,470 2,811 3,081 Consolidated Council Non-Current 2014 2013 2014 2013 Note 8. Other financial assets $'000 $'000 $'000 $'000 Consolidated Council Interests in Controlled Entities: Non-Current 2014 2013 2014 2013 CityWide Service Solutions Pty Ltd 18,406 18,406 $'000 $'000 $'000 $'000 Queen Victoria Market Pty Ltd 200 200 Interests in Controlled Entities: Investment in Sustainable Melbourne Fund 6,035 6,575 CityWide Service Solutions Pty Ltd 18,406 18,406 24,641 25,181 Queen Victoria Market Pty Ltd 200 200 Investments in Associates Investment in Sustainable Melbourne Fund 6,035 6,575 Regent Management Company Pty Ltd * 7,425 7,425 7,425 7,425 24,641 25,181 MAPS Group Ltd (Procurement Australia) 250 250 250 250 Investments in Associates 7,675 7,675 7,675 7,675 Regent Management Company Pty Ltd * 7,425 7,425 7,425 7,425 7,675 7,675 32,316 32,856 MAPS Group Ltd (Procurement Australia) 250 250 250 250 7,675 7,675 7,675 7,675 * Reflects a 50% shareholding. The latest valuation of the Regent Management Company Pty Ltd's assets 7,675 32,856 was undertaken on 25 October 2012 by AssetVal Pty7,675 Ltd. Given the nature of the asset32,316 and associated

Note 7. Other assets

Note 8. Other financial assets

revaluation cost it is intended that the asset will be revalued periodically. * Reflects a 50% shareholding. The latest valuation of the Regent Management Company Pty Ltd's assets was undertaken on 25 October 2012 by AssetVal Pty Ltd. Given the nature of the asset and associated revaluation cost it is intended that the asset will be revalued periodically.

138 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU Š OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NoteNote 9. Property, andinfrastructure infrastructure 9. Property,plant, plant, equipment equipment and Consolidated

Council

2014

2013

2014

2013

$’000

$’000

$’000

$’000

Land - Freehold At Council's valuation (i)

217,393

196,643

217,393

196,643

At cost

11,508 228,901

11,510 208,153

217,393

196,643

Land - Other Controlled At Council's valuation (i)

1,379,783

1,389,240

1,379,783

1,389,240

Total Land

1,608,684

1,597,393

1,597,176

1,585,883

15,450

15,450

15,450

15,450

At Council's valuation (i)

95,307

77,156

91,437

73,289

At cost Accumulated depreciation

727 (1,942)

700 (1,746)

-

-

94,092

76,110

91,437

73,289

49,687

49,684

49,687

49,684

6,839 (3,296) 3,543

6,094 (2,857) 3,237

2,776 (1,008) 1,768

2,460 (846) 1,614

Heritage Buildings At Council's valuation (ii)

142,110

112,251

142,110

112,251

Total Buildings

289,432

241,282

285,002

236,838

60,506

61,507

60,506

61,507

Footpaths At Council's valuation (iii)

177,247

169,780

177,247

169,780

Kerb & Channel At Council's valuation (iii)

176,897

166,120

176,897

166,120

Bridges At Council's valuation (iii)

93,100

94,419

93,100

94,419

Drains At Council's valuation (iii)

108,395

104,654

108,395

104,654

Roads & Laneways Substructure At Council's valuation (iii)

452,946

447,631

452,946

447,631

Land - Under Roads At Council's deemed cost Buildings on Freehold Land

Buildings on Other Controlled Land At Council's valuation (i) Buildings - Leasehold Improvements At cost Accumulated depreciation

Promenades and Wharves At Council's valuation (iii)

Roads & Laneways - Seal At Council's valuation (iii) Total Civil Infrastructure

42,332

39,256

42,332

39,256

1,111,423

1,083,367

1,111,423

1,083,367

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Consolidated 2014 $’000

Council 2013 $’000

2014 $’000

2013 $’000

18,557

22,276

18,557

22,276

-

(4,285)

-

(4,285)

18,557

17,991

18,557

17,991

74,479

73,279

74,479

73,279

38,460

39,389

38,460

39,389

131,496

130,659

131,496

130,659

3,156,485

3,068,151

3,140,547

3,052,197

188,802 (109,586)

169,310 (95,224)

65,502 (35,738)

51,728 (31,781)

79,216

74,086

29,764

19,947

Irrigation At Council's valuation (iv) Accumulated depreciation Parks and Gardens Infrastructure At Council's valuation (iv) Trees At Council's valuation (iv) Total Parks Infrastructure Sub-Total Land, Buildings and Infrastructure Plant and Equipment At cost Accumulated depreciation Furniture and Fittings At cost Accumulated depreciation

7,141

6,851

5,180

5,081

(4,865)

(4,095)

(3,711)

(3,173)

2,276

2,756

1,469

1,908

Statues, Sculptures and Artworks At cost

53,834

52,811

53,834

52,811

Accumulated depreciation

(6,067)

(5,469)

(6,067)

(5,469)

47,767

47,342

47,767

47,342

Other Structures At cost Accumulated depreciation-cost

5,776

5,776

5,776

5,776

(2,073)

(1,868)

(2,073)

(1,868)

3,703

3,908

3,703

3,908

118,196

94,871

117,361

94,496

3,407,643

3,291,114

3,340,611

3,219,798

Works in Progress At cost Total Property, Plant, Equipment and Infrastructure

a)

Valuations Valuations were completed as at 30 June 2014 for Council. Valuations for 30 June 2014 are at fair

a) Valuations All land and buildings are valued at fair value, being the value. Unless otherwise stated the carrying value of each class of asset measured at fair value at Valuations were completed as at 30 June 2014 for price that would be received to sell an asset or paid balance date materially reflects their fair value at that date.

Council. Valuations for 30 June 2014 are at fair value. to transfer a liability in an orderly transaction between The basis of valuation is included Note 1(m)(vi) in theparticipants Financial Statements have been Unless otherwise stated the carrying value of under each class market as at 30 Juneand 2014. conducted as follows: of asset measured at fair value at balance date materially Non Specialised Land & Buildings – Values of freehold reflects their fair value at that date. i.

Land and buildings land that are not adversely encumbered by reservations The basis of valuation is included under Note 1(m)(vi) planning provisions are based on observable market Valuations of Council land and buildings wereordetermined

by Pauline Lawson Certified in the Financial Practising StatementsValuer and have been conducted evidence for comparability and condition. within the Property Services Branch adjusted of Melbourne City Council. as follows: The value of land is based on market based direct All land and buildings are valued at fair value,comparison being the price that and would received an approach thebe added valueto ofsell structural i. Land and buildings asset or paid to transfer a liability in an orderlyimprovements transaction between market participants as at 30of on this land is calculated by deduction Valuations of Council land and buildings were determined June 2014. the land value from the total fair value of the asset.

by Pauline Lawson Certified Practising Valuer within the Non Specialised Land & Buildings – Values of freehold land that are not adversely encumbered Property Services Branch of Melbourne City Council.

Specialised Land & Buildings – Values of all other land are

by reservations or planning provisions are based on observable market evidence adjusted for based on a combination of observable and unobservable 23 of 58

140 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 market evidence adjusted for comparability and condition. The value of land is based on a market based direct comparison approach and a significant adjustment is made for the land tenure and/or planning provisions that restricts the use or associated rights to deal with the asset. The values of structural improvements on this land are valued at fair market value using an estimated depreciated replacement cost approach. ii. Heritage Buildings Values of structural improvements included in the Victorian Heritage Register (Heritage Assets) are recognised to have a useful life or remaining useful life period beyond the normal life periods. The useful life/ remaining useful life periods applied reflect that the Heritage Asset is likely to remain in perpetuity and are valued at fair market value with an estimated new replacement cost. iii. Civil Infrastructure assets Valuations of infrastructure assets, including roads and laneways, footpaths, kerb and channel, bridges and drains, were determined by Thyagie Wettasinghe, Asset Officer Melbourne City Council.

Infrastructure assets managed by Engineering Services Branch are valued using the information derived from the Council’s asset register. The asset register has all details of asset type, area, age, condition of assets and replacement costs.

The valuation is derived by determining the written down replacement cost of each asset. The written down replacement cost is calculated based on the remaining life of the asset, which in turn is determined based on their condition for roads, footpaths, kerb and channel, street furniture or on age for drains.

Replacement costs of infrastructure assets are based on current Civil Infrastructure Services contracts or current market prices for standalone type assets.

A significant increase or decrease in the condition of the asset or replacement costs would result in a significantly higher or lower valuation. iv. Parks and Gardens Infrastructure Infrastructure assets and park assets are valued at fair value being replacement cost less accumulated depreciation, taking into account the asset condition and their remaining lives.

Asset condition is assessed annually using internal and external experts for particular asset classes, and stored in Council’s register.

Replacement cost for lineal assets (i.e. fences) and surface assets (paths, artificial turf) are based on unit rates per lineal or square meter based on industry standards or recent Capital Works. Replacement cost for standalone assets (barbeques, seats, bins) are based on costs for a suitable replacement at current market prices.

Replacement cost for irrigation assets is a rate per square meter derived from recent projects and applied to all irrigated coverage.

Trees are valued at replacement cost which is arrived at from current on ground costs, current tree prices, tree planting works and maintenance through the establishment period of the tree.

Valuation of parks and gardens were determined by Eugene Stackpole, Asset Management Officer Melbourne City Council.

A significant increase or decrease in the condition of the asset or replacement costs would result in a significantly higher or lower valuation. b) Fair value All assets and liabilities for which fair value is measured or disclosed in the Financial Statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, Council has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

141

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Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, Council has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value Details ofhierarchy the Council’s land, buildings and as explained above.

infrastructure and information about the fair value Details of the Council’s land, buildings and infrastructure and information about the fair value hierarchy hierarchy as at 30 June 2014 are as follows:

as at 30 June 2014 are as follows:

Level 1

Level 2

$’000

Level 3

Total

Land - Freehold Land - Other Controlled Total land

-

$’000 96,869 8,655 105,524

$’000 120,524 1,371,128 1,491,652

$’000 217,393 1,379,783 1,597,176

Buildings on Freehold Land Buildings on Other Controlled Land Heritage Buildings Total buildings

-

54,781 1,206 55,987

36,656 48,481 142,110 227,247

91,437 49,687 142,110 283,234

Promenades and Wharves Footpaths Kerb & Channel Bridges Drains Roads & Laneways Substructure Roads & Laneways - Seal Total Civil Infrastructure

-

-

60,506 177,247 176,897 93,100 108,395 452,946 42,332 1,111,423

60,506 177,247 176,897 93,100 108,395 452,946 42,332 1,111,423

Irrigation Parks and Gardens Infrastructure Trees Total Parks Infrastructure

-

-

18,557 74,479 38,460 131,496

18,557 74,479 38,460 131,496

Total

-

161,511

2,961,818

3,123,329

No transfers between levels occurred during the year.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Reconciliation 2014 Opening Balance Depreciation Impairment Loss Revaluation Acquisitions (Disposals) Transfers Closing Balance

Land

Buildings

Civil Parks Infras tructure Infras tructure

1,585,883 -

235,224 (5,913)

1,083,367 (32,160)

130,659 (6,307)

6,606 3,365 1,322

29,783 141 23,999

41,787 (53) 18,482

(1,609) 8,753

1,597,176

283,234

1,111,423

25 of 58 131,496

This reconciliation excludes land under roads and leasehold improvements on buildings as these amounts are not revalued and are recorded at cost.

This reconciliation excludes land under roads and as being at Level 2 which indicates that the valuation leasehold on buildings amounts techniques for which lowest Citywideimprovements Service Solutions Pty Ltdas- these The last revaluation ofinvolved land held by the Group wasthe based onlevel an input in are not revaluedbyand are recorded at cost.Knight Frank on 8 March the measurement directly or indirectly observable. assessment independent valuers, 2013. Underwas AASB 13, this assessment of fair

value is viewed as being at Level 2 which indicates that the valuation involved techniques for which the

Citywide Service Solutions Pty Ltd - The last revaluation Queen Victoria Market – No assets are revalued at Queen lowest level input in the measurement was directly or indirectly observable. of land held by the Group was based on an assessment Victoria Market.

Victoria Market – No Frank assets revalued byQueen independent valuers, Knight onare 8 March 2013.at Queen Victoria Market.

Under AASB 13, this assessment of fair value is viewed

142 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 c) Description of significant to Level 3 valuations c) Description ofunobservable significant inputs unobservable inputs to

Valuation Technique

Land - Specialist Freehold

Significant Observable Inputs

Community Service Market approach Obligation (CSO) adjustment

Community Service Land - Other Controlled Market approach Obligation (CSO) adjustment

Buildings on Specialist Freehold Land

Depreciated Replacement Cost

Direct cost per square metre

Useful life of buildings

Buildings on Other Controlled Land

Heritage Buildings

Depreciated Replacement Cost

Depreciated Replacement Cost

Direct cost per square metre

Useful life of buildings

Direct cost per square metre

Useful life of buildings

Promenades and Wharves

Depreciated Replacement Cost

Per item useful life of asset

Footpaths

Depreciated Replacement Cost

Per square meter useful life of footpath

Level 3 valuations

Range (weighted average)

Sensitivity of fair value measurement to changes in significant unobservable inputs

60 - 80%

A significant increase or decrease in the CSO adjustment would result in a significantly lower or higher fair value

80 - 90%

A significant increase or decrease in the CSO adjustment would result in a significantly lower or higher fair value

A significant increase or decrease in direct cost per $1,600 - $23,150 square metre would result in a significantly lower or higher fair value A significant increase or decrease in direct cost per 10 - 50 years square metre would result in a significantly lower or higher fair value A significant increase or decrease in direct cost per $275 - $34,715 square metre would result in a significantly lower or higher fair value A significant increase or decrease in the estimated useful 10 - 50 years life of the asset would result in a significantly lower or higher valuation A significant increase or decrease in direct cost per $1,000 - $6,000 square metre would result in a significantly lower or higher fair value A significant increase or decrease in the estimated useful 100 Years life of the asset would result in a significantly lower or higher valuation $267,000 $19.1million 40 - 94 years

A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation

A significant increase or decrease in the cost per unit or $6.83 - $532.17 estimated useful life of the asset 10 - 50 years would result in a significantly lower or higher valuation

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Valuation Technique

Significant Observable Inputs

Range (weighted average)

Sensitivity of fair value measurement to changes in significant unobservable inputs

Kerb & Channel

Depreciated Replacement Cost

Per lineal meter useful life kerb or channel

$76.22 $1,032.63 30-50 years

A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation

Bridges

Depreciated Replacement Cost

Per item useful life of asset bridge

$330,000 $22.7million 50 - 94 years

Drains

Depreciated Replacement Cost

Per lineal meter useful life kerb or channel drain

$290 - $1,142 50 - 165 years

Roads & Laneways Substructure

Depreciated Replacement Cost

Per square meter useful life of footpath road

$220 - $448 30 - 80 years

Roads & Laneways Seal

Depreciated Replacement Cost

Per square meter useful life of footpath road

Irrigation

Depreciated Replacement Cost

Parks and Gardens Infrastructure

Depreciated Replacement Cost

Trees

$21.19 - $24.31 10 - 17 years

A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation A significant increase or decrease in the cost per unit or estimated useful life of the asset would result in a significantly lower or higher valuation

A significant increase or Per square decrease in the cost per unit or meter condition $8-$9 / sq meter, estimated useful life of the asset 10-20 years rating and useful would result in a significantly life lower or higher valuation A significant increase or $31-$254 per Rates per lineal decrease in the cost per unit or lineal metre, $51or square meter, estimated useful life of the asset $146 per sq cost per unit, would result in a significantly meter, $204condition rating lower or higher valuation $40,000 per unit and useful life 10-50 years

At Replacement Cost

Cost per Unit

$540 per unit

A significant increase or decrease in the cost per unit would result in a significantly lower or higher valuation

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Land - Freehold Land - Other Controlled Land Under Roads Buildings on Freehold Land Buildings on Other Controlled Land Buildings - Leasehold Improvements Heritage Assets Promenades and Wharves Footpaths Kerb & Channel Bridges Drains Roads & Laneways - Substructure Roads & Laneways - Seal Irrigation Parks and Gardens Infrastructure Trees Plant and Equipment Furniture and Fittings Statues, Sculptures and Artworks Other Structures Works in Progress

30 June 2013 $’000 208,153 1,389,240 15,450 76,110 49,684 3,237 112,251 61,507 169,780 166,120 94,419 104,654 447,631 39,256 17,991 73,279 39,389 74,086 2,756 47,342 3,908 94,871 3,291,114

Carrying amount at $’000 13,835 (7,229) 3,847 (1,209) 27,145 (212) 13,291 13,700 (114) 3,008 11,480 636 15 1,032 (2,656) 76,569

$’000 6,913 650 28 332 419 8,400 99,767 116,509

Revaluations Additions

Summary of Property, plant, equipment and infrastructure

Consolidated 30 June 2014 Asset Classes

d)

(2,694) (2,271) (461) (1,145) (1,037) (13,841) (5,326) (1,365) (1,039) (6,165) (3,386) (1,615) (4,692) (18,863) (714) (598) (205) (65,417)

$’000

Depreciation

1,322 16,800 3,340 348 3,859 248 8,047 2,408 160 1,772 5,847 2,166 4,860 1,727 16,691 234 1,023 (76,442) (5,590)

$’000

Transfers

30 June 2014 $’000 228,901 1,379,783 15,450 94,092 49,687 3,543 142,110 60,506 177,247 176,897 93,100 108,395 452,946 42,332 18,557 74,479 38,460 79,216 2,276 47,767 3,703 118,196 3,407,643

Carrying amount at

PrM

(21) (1,098) (5,543)

(4,200) (189) (30) (5) -

$’000

Disposals

d) Summary of Property, plant, equipment and infrastructure

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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145

Land - Freehold Land - Other Controlled Land Under Roads Buildings on Freehold Land Buildings on Other Controlled Land Buildings - Leasehold Improvements Heritage Assets Promenades and Wharves Footpaths Kerb & Channel Bridges Drains Roads & Laneways - Substructure Roads & Laneways - Seal Irrigation Parks and Gardens Infrastructure Trees Plant and Equipment Furniture and Fittings Statues, Sculptures and Artworks Other Structures Works in Progress

Consolidated 30 June 2013 Asset Classes Carrying amount at Revaluations Additions Disposals 30 June 2012 $’000 $’000 $’000 $’000 209,278 1,443 872 (7,640) 1,386,501 (2,241) 2,740 12,920 2,530 66,527 (3,294) 154 (308) 43,022 962 167 (334) 2,103 995 (1) 95,578 3,439 62,552 (10) 141,892 16,279 5,671 137,673 19,455 5,245 85,186 (7,780) 100,060 1,605 1,100 442,006 8,708 2,983 35,118 (5,830) 174 18,284 71,287 439 38,934 (1,621) 69,580 16,610 (1,385) 2,450 559 (1) 47,510 3,696 (4) 121,410 105,879 3,193,567 31,554 145,679 (9,673) (2,597) (2,252) (327) (1,093) (1,035) (12,833) (5,113) (1,437) (1,021) (6,066) (3,614) (1,520) (4,689) (17,943) (771) (589) (284) (63,184)

$’000

Depreciation $’000 4,200 2,240 15,628 8,119 467 14,327 18,771 8,860 18,450 2,910 13,408 1,227 6,242 2,076 7,224 519 421 500 (132,418) (6,829)

Transfers

Carrying amount at 30 June 2013 $’000 208,153 1,389,240 15,450 76,110 49,684 3,237 112,251 61,507 169,780 166,120 94,419 104,654 447,631 39,256 17,991 73,279 39,389 74,086 2,756 47,342 3,908 94,871 3,291,114

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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Land - Freehold Land - Other Controlled Land Under Roads Buildings on Freehold Land Buildings on Other Controlled Land Buildings - Leasehold Improvements Heritage Assets Promenades and Wharves Footpaths Kerb & Channel Bridges Drains Roads & Laneways - Substructure Roads & Laneways - Seal Irrigation Parks and Gardens Infrastructure Trees Plant and Equipment Furniture and Fittings Statues, Sculptures and Artworks Other Structures Works in Progress

Council 30 June 2014 Asset Classes Carrying amount at Revaluations Additions Disposals 30 June 2013 $’000 $’000 $’000 $’000 196,643 13,835 6,915 1,389,240 (7,229) 650 (4,200) 15,450 73,289 3,847 49,684 (1,209) 332 (189) 1,614 112,251 27,145 61,507 (212) 169,780 13,291 (30) 166,120 13,700 (5) 94,419 (114) 104,654 3,008 447,631 11,480 39,256 636 (21) 17,991 15 73,279 1,032 39,389 (2,656) 19,947 (621) 1,908 47,342 3,908 94,496 98,961 3,219,798 76,569 106,858 (5,066) 1,322 16,800 3,340 316 3,859 248 8,047 2,408 160 1,772 5,847 2,166 4,860 1,727 16,510 99 1,023 (76,096) (5,592)

$’000

$’000 (2,499) (2,271) (162) (1,145) (1,037) (13,841) (5,326) (1,365) (1,039) (6,165) (3,386) (1,615) (4,692) (6,072) (538) (598) (205) (51,956)

Transfers

Depreciation

Carrying amount at 30 June 2014 $’000 217,393 1,379,783 15,450 91,437 49,687 1,768 142,110 60,506 177,247 176,897 93,100 108,395 452,946 42,332 18,557 74,479 38,460 29,764 1,469 47,767 3,703 117,361 3,340,611

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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147

Land - Freehold Land - Other Controlled Land Under Roads Buildings on Freehold Land Buildings on Other Controlled Land Buildings - Leasehold Improvements Heritage Assets Promenades and Wharves Footpaths Kerb & Channel Bridges Drains Roads & Laneways - Substructure Roads & Laneways - Seal Irrigation Parks and Gardens Infrastructure Trees Plant and Equipment Furniture and Fittings Statues, Sculptures and Artworks Other Structures Works in Progress

Council 30 June 2013 Asset Classes Carrying amount at Revaluations Additions Disposals 30 June 2012 $’000 $’000 $’000 $’000 193,173 (590) (140) 1,386,501 (2,241) 2,740 12,920 2,530 63,663 (3,294) (296) 43,022 962 168 (334) 1,568 95,578 3,439 62,552 (10) 141,892 16,279 5,671 137,673 19,455 5,245 85,186 (7,780) 100,060 1,605 1,100 442,006 8,708 2,983 35,118 (5,830) 174 18,284 71,287 439 38,934 (1,621) 19,095 (850) 1,935 47,510 3,696 (4) 120,629 105,653 3,122,282 29,521 126,264 (1,624) (2,412) (2,253) (146) (1,093) (1,035) (12,833) (5,113) (1,437) (1,021) (6,066) (3,614) (1,520) (4,689) (5,175) (536) (589) (284) (49,816)

$’000

Depreciation $’000 4,200 2,240 15,628 8,119 192 14,327 18,771 8,860 18,450 2,910 13,408 1,227 6,242 2,076 6,877 509 421 500 (131,786) (6,829)

Transfers

Carrying amount at 30 June 2013 $’000 196,643 1,389,240 15,450 73,289 49,684 1,614 112,251 61,507 169,780 166,120 94,419 104,654 447,631 39,256 17,991 73,279 39,389 19,947 1,908 47,342 3,908 94,496 3,219,798

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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Intangible assets

24,166 (17,289) 6,877 4,867

4,867

-

-

(3,006)

(3,006) (3,006)

$’000

$’000

-

(3,006)

(3,006) (3,006)

$’000

Impairment Amortisation

(1,138)

6,877 4,867 Intangible assets, excluding goodwill, are amortised over 5 years.

Computer software Cost Accumulated amortisation Net book value

Carrying amount at Additions 30 June 2012 $’000 $’000

4,867

28,255

-

-

(1,138) (1,138)

$’000

Impairment Amortisation

13,279

5,591 5,591

1,500

6,188

6,188

8,738

29,033 (20,295) 8,738

5,591

5,591

5,591

Carrying amount at Additions 30 June 2013 $’000 $’000

28,978

29,033 (20,295) 8,738

-

21,378 (1,138) 20,240

Carrying amount at Additions 30 June 2013 $’000 $’000

(3,550)

(3,325) (3,325)

(225)

-

38,207

34,624 (23,620) 11,004

1,275

27,566 (1,638) 25,928

-

-

(3,325)

(3,325) (3,325)

33 of 58

11,004

34,624 (23,620) 11,004

Carrying Impairment Amortisation amount at 30 June 2014 $’000 $’000 $’000

(500)

-

-

(500) (500)

Carrying Impairment Amortisation amount at 30 June 2014 $’000 $’000 $’000

PrM

Council Asset Classes

4,867 4,867

24,166 (17,289) 6,877

Computer software Cost Accumulated amortisation Net book value

-

-

Customer Relationships Net book value

-

21,378 21,378

Carrying amount at Additions 30 June 2012 $’000 $’000

Goodwill Net book value Accumulated amortisation Net book value

Consolidated Asset Classes

Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the financial year are set out below:

a)

Note 10. Intangible assets

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Note 10. Intangible assets

a) Intangible assets

149

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PrM

AcD

b) Impairment testing for cash generating units FINANCIAL REPORT FOR THE containing goodwill Goodwill has been reviewed for impairment for the year b) ending Impairment 30 June 2014. testing for cash generating units containing goodwill

YEAR ENDED 30 JUNE 2014

been reviewed for impairment for the year ending 30 June 2014.

For theGoodwill purposes ofhas impairment testing, goodwill is FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 allocated to the consolidated entity’s operating divisions.

For the purposes of impairment testing, goodwill is allocated to the consolidated entity's operating The aggregate carrying amounts allocated to each Cash b) Impairment testing for cash generating units containing goodwill divisions.

The aggregate carrying amounts allocated to each Cash Generating Unit (CGU) are as Generating Unit (CGU) are as follows:

follows: Goodwill has been reviewed for impairment for the year ending 30 June 2014.

2014 2013 For the purposes of impairment testing, goodwill is allocated to the consolidated entity's operating $'000 $'000Unit (CGU) are as divisions. The aggregate carrying amounts allocated to each Cash Generating Asset maintenance services 8,714 8,714 follows: Arboriculture NSW 2014 2013 Open space NSW 7,868 7,868 $'000 $'000 Infrastructure services 3,158 3,658 Asset maintenance services 8,714 8,714Open Space Queensland 6,188 Arboriculture NSW 25,928 20,240Open space NSW 7,868 7,868 The recoverable amount of each CGU has been determined in use, determined by Infrastructure services 3,158 based on its value3,658 The recoverable amount of each CGU has been discounting the future cash flows to be generated from the continuing use of the CGU. The Open Space Queensland 6,188 determined based on its value in use, determined by recoverable amount of each unit was determined to be in excess of the carrying value of each CGU, 25,928 20,240 discounting the future cash flows to be generated and therefore nothe impairments have been recognised other than detailed below. from the continuing use of CGU. The recoverable The recoverable amount of each CGU has been determined based on its value in use, determined by amount of each unit was determined to be in excess discounting the future cash flows of the carrying value of each CGU, and therefore to no be generated from the continuing use of the CGU. The recoverable of other each unitdiscounted was determined be in excess of the carrying value of each CGU, impairments beenamount recognised c) Key have assumptions used in than the cashtoflow projections detailedand below. therefore no impairments have been recognised other than detailed below.

The key assumptions used in the calculation of recoverable amounts are discount rates and Earnings c) Key assumptions used in the discounted before Interest, Tax, Depreciation and Amortisation (EBITDA) growth. These assumptions are as cash flow projections follows: c) assumptions used in the The keyKey assumptions used in the calculation of discounted cash flow projections recoverable amounts are discount rates and Earnings 2014 2013 The key assumptions used in the calculation of recoverable amounts are discount rates and Earnings before Interest, Tax, Depreciation and Amortisation before Interest, Tax, Depreciation and Amortisation (EBITDA) growth. These assumptions are as (EBITDA) growth.

These assumptions are as follows: Discount Rate 3.54% 3.89% follows: EBITDA Growth Rate

2.50% 2014

2.50% 2013

The discount rate used is a pre-tax measure based on the risk free rate for 10-year bonds issued by Discount RateGovernment.

3.54% 3.89% the Australian EBITDA Growth Rate 2.50% The long term Each CGU has five years of cash flows included in its2.50% discounted cash flow models. compound annual growth rate in EBITDA is estimated by management using past experience and The discount rate used is a pre-tax measure based on the risk free rate for 10-year bonds issued by expectations for the future.

Budgeted growth is as the compound annual growth The discount rate used is a pre-tax measure based on EBITDA d) Sensitivity to expressed change in assumptions the Australian Government. in for the10-year initialbonds five years impairment testing and has been based on past the riskrates free rate issued of by the the plans used for Citywide has modelled a 30% reduction in base EBITDA Australian Government. in each CGU and a 3% increase in themodels. discountedThe rate. long In Each CGU has years of cash flows included in its discounted cash flow term experience and five expectations for the future. each case, by the management value in use would not be lower than the compound annual growth rate in EBITDA is estimated using past experience and Each CGU has five years cash flows in d) Sensitivity to ofchange inincluded assumptions and therefore no impairment charges expectations the future.

EBITDAcarrying growthamount is expressed as the compound annual growth its discounted cash flowfor models.

The longBudgeted term would arise. rates in the five years ofestimated the plans in used forEBITDA impairment testing and has been based on past Citywide hasinitial modelled a 30% reduction base in each CGU and a 3% increase in the compound annual growth rate in EBITDA is experience and expectations for the future. by management using past experience and expectations discounted rate. In each case, the value in use would not be lower than the carrying amount and for the therefore future. Budgeted EBITDA growth is expressed as arise. no impairment charges would d) Sensitivity change inthe assumptions the compound annual to growth rates in initial five years of the plans used for impairment testing and has been Citywide has modelled a 30% reduction in based on past experience and expectations for the future.

base EBITDA in each CGU and a 3% increase in the discounted rate. Inproperty each case, the value in use would not be lower than the carrying amount and Note 11.

Investment therefore no impairment charges would arise. a) Amounts recognised in Income Statement for Investment Properties

Consolidated 2014 2013 $’000 for Investment $’000 a) Amounts recognised in Income Statement Properties Property rental 11,006 10,166 Consolidated Operating expenses for rental generating 2014 2013 properties 1,531 1,058 $’000 $’000 Property rental 11,006 10,166 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) Operating expenses for rental generating JOB NO. REV. CLIENT. JOB NAME. properties 1,531 1,058 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA

Note 11. Investment property

150

Council 2014 2013 $’000 $’000 11,006 10,166 Council 2014 2013 1,531 1,058 $’000 $’000 11,006 10,166 1,531

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1,058 34 of 58

Each CGU has five years of Hi-Res cash flows itsPrint discounted cash flow models. The long term PDFincluded - GOOD in For AcD PrM GrD compound annual growthSIGN rateOFFinBOX EBITDA is estimated by management using past experience and expectations for the future. Budgeted EBITDA growth is expressed as the compound annual growth rates in the initial five years of the plans used for impairment testing and has been based on past experience and expectations for the future. d)

Sensitivity to change in assumptions Citywide has modelled a 30% reduction in base EBITDA in each CGU and a 3% increase in the discounted rate. In each case, the value in useFINANCIAL would notREPORT be lowerFOR than the carrying amount and THE YEAR ENDED 30 JUNE 2014 therefore no impairment charges would arise.

Note 11. Investment property

Note 11.

Investment property a) Amounts recognised in Income Statement for Investment Properties a) Amounts recognised in Income

b)

Statement for Investment Properties

Property rental Operating expenses for rental generating Reconciliation of carrying amounts properties b) Reconciliation of carrying amounts b) Reconciliation of carrying

Consolidated Council 2014 2013 2014 2013 $’000 $’000 $’000 $’000 11,006 REPORT 10,166FOR THE YEAR 11,006 FINANCIAL ENDED10,166 30 JUNE 2014 1,531 1,058 1,531 1,058 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Consolidated amounts 2014 2013 $’000 $’000 Consolidated

Land Carrying amount at beginning of period Land Net gain from fair value adjustment Carrying amount at of beginning Carrying amount at end period of period Net gain from fair value adjustment Buildings Carrying amount at end ofof period Carrying amount at beginning period Buildings Net gain/(loss) from fair value adjustment Carrying amount at beginning of period Additions Net gain/(loss) from fair value adjustment Carrying amount at end of period Additions Carrying amount at end of period

Total investment properties

Total investment properties

2014

Council 2014 2013 $’000 $’000 Council

2013 41,174 $’000

2014 41,174 $’000

5,190 46,364 66,975

41,174 63,544

41,174 46,364 5,190 46,364 66,975

41,174 41,174 41,174 63,544

66,975 450 67,425 67,425

63,544 1,963 1,468 66,975 1,963 66,975

66,975 450 67,425 67,425

63,544 1,963 1,468 66,975 1,963 66,975

41,174 $’000 5,190 41,174 46,364

41,174 41,174

450

1,468

113,789

108,149

113,789

108,149

5,190

2013 41,174 $’000 34 of 58

-

450

1,468

113,789

108,149

113,789

108,149

Investment properties comprise a number of commercial properties that are leased to third parties.

Council has a significant ofaleases from short term tothat long rental amounts Investment propertiesnumber comprise numbervarying of commercial properties areterm. leasedThe to third parties.

Council hasterm, a significant number of leases varying from termnet to market long term.

The rental amounts are either fixed annual CPI of reviews or market reviews.

Investment properties comprise a number commercial on each short property’s income, which is assumed

are either fixed to term, reviews reviews. properties that are leased thirdannual parties.CPI Council has or market to be a level annuity in perpetuity, and a capitalised rate Valuations of the investment properties were determined by the Certified Practising Valuers within a significant number of leases varying from short term derived from analysis of market evidence.

Valuations of the investment properties were determined by the Valuers within Property Services.

The determination of fair value was based on Certified either a Practising capitalisation of net rental to long term. The rental amounts are either fixed term, Property Services.

The determination of fair value was based on either a capitalisation of net rental is The principal assumptions underlying the valuer’s income approach or a depreciated replacement cost approach.

The valuation approach selected annual CPI reviews or market reviews. income approach or a depreciated replacement cost approach. valuation approach is of fairThe value include those relatedselected dependent on the nature of the legal tenure and or estimations planning provisions of the asset.

Thetocapitalisation dependent on the properties nature of were the legal tenure and or provisions the asset.

The capitalisation Valuations of the investment determined theplanning amount of contractualofrentals, vacancy periods, of net rental income approach is based on each property's net market income, which is assumed to be of net rental income approach is based on each property's net market income, which is assumed to be by the Certified Practising Valuers within Property incentives, maintenance and capital expenditure a level annuity in perpetuity, and a capitalised rate derived from analysis of market evidence.

Services. aThe determination of fair value was based on requirements, and appropriate discount rates.

The level annuity in perpetuity, and a capitalised rate derived from analysis of market evidence. either a capitalisation of net rental income approach or a expected future market rentals are based on current The principal assumptions underlying thethe valuer's value include includethose thoserelated related to the The principal assumptions underlying valuer'sestimations estimations of of fair fair value to the depreciated replacement cost approach. The valuation market rentals for similar properties in the same location amount of contractual rentals, vacancy periods, incentives, andcapital capitalexpenditure expenditure amount of contractual rentals, vacancy periods, incentives,maintenance maintenance and approach selected is dependent on the nature of the and condition. requirements, and appropriate discount rates. rentalsare arebased based requirements, and appropriate discount rates.The Theexpected expectedfuture future market market rentals onon legal tenure and or planning provisions of the asset.

Investment properties were valued at 30 June 2014. current market rentals for similar properties in the same location and condition. current market rentals for similar properties in the same location and condition.

The capitalisation of net rental income approach is based Investment properties valued at 30 June 2014.

Investment properties werewere valued at 30 June 2014.

Level Level 11

Level 22 Level

Level Level33

$’000

$’000

$’000

88,077

25,712

113,789

$’000

$’000 Investment Property

Investment Property

-

$’000

-

88,077

$’000

25,712

Total Total

$’000

113,789

LIABILITIES

LIABILITIES

Note 12. Trade and other payables

Note 12. Trade and other payables Current Trade creditors general Current Deposits and retention amounts Trade creditors general Accruals Deposits and in retention Income advanceamounts

Accruals Income in advance

Consolidated 2014 2013 Consolidated $'000 $'000 2014 2013

$'000

23,893 4,116 23,893 65,625 4,116 3,263 65,625 96,897

3,263

$'000

19,243 4,089 19,243 63,339 4,089 3,397 63,339 90,068

3,397

Council 2014 Council 2013 $'000 $'000 2014 2013

$'000

13,077 1,960 13,077 49,681 1,960 1,248 49,681 65,966

1,248

$'000

6,323 2,166 6,323 46,575 2,166 1,596 46,575 56,660

151

1,596

Trade creditors are unsecured, not subject to interest and are normally settled within 30 days from 96,897 charges90,068 65,966 56,660 the date of invoice.

Trade creditors are unsecured, not subject to interest charges and are normally settled within 30 days from the date of invoice.

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The principal assumptions underlying estimations of fair value include those related to the AcD PrM GrD SIGN OFF the BOX valuer's amount of contractual rentals, vacancy periods, incentives, maintenance and capital expenditure requirements, and appropriate discount rates. The expected future market rentals are based on current market rentals for similar properties in the same location and condition.

Investment properties were valued at 30 June 2014.

Level 1

Level 2

Level 3

Total

$’000

$’000

$’000

$’000

-

88,077

25,712

113,789

LIABILITIES LIABILITIES Investment Property

Note 12. Trade and other payables Note 12. Trade and other payables

Current Trade creditors general Deposits and retention amounts Accruals Income in advance

Consolidated 2014 2013 $'000 $'000 23,893 4,116 65,625 3,263 96,897

Council 2014 2013 $'000 $'000

19,243 4,089 63,339 3,397 90,068

13,077 1,960 49,681 1,248 65,966

6,323 2,166 46,575 1,596 56,660

Trade creditors are unsecured, not subject to interest charges and are normally settled within 30 days from

the date of invoice.

Trade creditors are unsecured, not subject to interest charges and are normally settled within 30 days from the date of invoice.

Note 13. Employee benefits Note 13. Employee benefits

(a) Current expected to be settled within 12 months Annual leave Long service leave Redundancy provision (b) Current expected to be settled after 12 months Annual leave Long service leave Sub-Total Current (c) Non-Current Long service leave Total Employee Benefits

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 35 of 58 Council 2014 2013 $'000 $'000

Consolidated 2014 2013 $'000 $'000

13,542 8,169 2,359 24,070

13,357 8,265 21,622

9,485 1,328 2,359 13,172

9,326 1,153 10,479

2,174 15,986 18,160 42,230

2,614 15,035 17,649 39,271

200 15,986 16,186 29,358

194 15,678 15,872 26,351

5,551 5,551 47,781

5,279 5,279 44,550

3,042 3,042 32,400

2,643 2,643 28,994

Note 14. Provisions Consolidated 2014 2013 $'000 $'000

(a) Current Insurance claims Other

152

Council 2014 2013 $'000 $'000

741 1,542 2,283

518 308 826

741 1,250 1,991

518 518

(b) Reconciliation of movements Insurance claims Balance at the beginning of financial year Additional provisions Amounts used Balance at the end of the financial year

518 529 (306) 741

519 395 (396) 518

518 529 (306) 741

519 395 (396) 518

Other* Balance at the beginning of financial year Additional provisions Amounts used Balance at the end of the financial year

308 1,250 (16) 1,542

952 (644) 308

1,250 1,250

630 (630) -

* Includes provision for rate objection and payroll tax

DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

Hi-Res PDF - GOOD For Print (b) Current expected to be settled after AcD PrM SIGN OFF BOX GrD 12 months Annual leave 2,174 2,614 Long service leave 15,986 15,035 18,160 17,649 Sub-Total Current 42,230 39,271

(c) Non-Current Long service leave Total Employee Benefits

Note 14. Provisions Note 14. Provisions

(a) Current Insurance claims Other

5,551 5,551 47,781

5,279 5,279 44,550

200 15,986 16,186 29,358

194 15,678 15,872 26,351

3,042 3,042 32,400

2,643 2,643 28,994

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Consolidated 2014 2013 $'000 $'000

Council 2014 2013 $'000 $'000

741 1,542 2,283

518 308 826

741 1,250 1,991

518 518

(b) Reconciliation of movements Insurance claims Balance at the beginning of financial year Additional provisions Amounts used Balance at the end of the financial year

518 529 (306) 741

519 395 (396) 518

518 529 (306) 741

519 395 (396) 518

Other* Balance at the beginning of financial year Additional provisions Amounts used Balance at the end of the financial year

308 1,250 (16) 1,542

952 (644) 308

1,250 1,250

630 (630) -

* Includes provision for rate objection and payroll tax

EQUITY EQUITY

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Note 15. RESERVES Note 15. Reserves

Composition Asset revaluation Reserve for public open space Investments revaluation reserve Tree Compensation Reserve

Consolidated 2014 2013 $'000 $'000

2014 $'000

1,673,503 13,906 4,649 842 1,692,900

1,669,466 1,592,897 36 of 58 13,906 10,754 4,649 4,649 842 1,688,863 1,608,300

1,596,934 10,754 4,649 1,612,337

Council

2013 $'000

The asset revaluation reserve records the revaluations of the Council's property, plant and equipment which

The asset revaluation reserve revaluations is carried at fair value.

The records reserve the for public open spaces records amounts of accumulated surpluses set ofaside the Councilâ&#x20AC;&#x2122;s property, plant and equipment is for the development of public spaces inwhich the City. carried at fair value. The reserve for public open spaces records amounts of accumulated surpluses set aside for the development of public spaces in the City.

153

Land Buildings Roads & Laneways Footpaths Kerb & Channel Bridges Drains Promenades and Wharves Parks and Gardens Infrastructure Trees Other structures P&G Irrigation Artworks

Carrying amount at Increment 2012 (Decrement) $’000 $’000 1,046,445 (798) 42,708 1,108 153,708 2,878 79,940 16,279 119,728 19,455 22,145 (7,780) 28,090 1,605 2,835 (11) 48,739 439 13,304 (1,621) 206 6,769 5,404 1,570,021 31,554

Movement in Consolidated Reserves - Asset revaluation reserve

Consolidated

a) Transfer to Accum Surplus $’000 (4,641) (4,641)

Carrying amount at Increment 2013 (Decrement) $’000 $’000 1,041,006 6,606 43,816 29,784 156,586 12,116 96,219 13,290 139,183 13,700 14,365 (114) 29,695 3,008 2,824 (212) 49,178 1,032 11,683 (2,656) 206 6,769 15 5,404 1,596,934 76,569

Transfer to Accum Surplus $’000 -

Carrying amount at 2014 $’000 1,047,612 73,600 168,702 109,509 152,883 14,251 32,703 2,612 50,210 9,027 206 6,784 5,404 1,673,503

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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Land Buildings Roads & Laneways Footpaths Kerb & Channel Bridges Drains Promenades and Wharves Parks and Gardens Infrastructure Trees Other structures P&G Irrigation Artworks

Carrying amount at Increment 2012 (Decrement) $’000 $’000 1,039,800 (2,831) 42,708 1,108 153,708 2,878 79,940 16,279 119,728 19,455 22,145 (7,780) 28,090 1,605 2,835 (11) 48,739 439 13,304 (1,621) 206 6,769 5,404 1,563,376 29,521

Movement in Council Reserves - Asset revaluation reserve

Council

b) Transfer to Accum Surplus $’000 -

b) Movement in Council Reserves - Asset revaluation reserve

Carrying amount at Increment 2013 (Decrement) $’000 $’000 1,036,969 6,606 43,816 29,784 156,586 12,116 96,219 13,290 139,183 13,700 14,365 (114) 29,695 3,008 2,824 (212) 49,178 1,032 11,683 (2,656) 206 6,769 15 5,404 1,592,897 76,569

Transfer to Accum Surplus $’000

-

Carrying amount at 2014 $’000 1,043,575 73,600 168,702 109,509 152,883 14,251 32,703 2,612 50,210 9,027 206 6,784 5,404 1,669,466

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 REPORT FOR THE YEAR ENDED 30 JUNE 2014 c) Movement in Reserves Investments revaluationFINANCIAL reserve c) Movement in –Reserves – Investments revaluation reserve c)

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Movement in Reserves – Investments revaluation reserve Consolidated Council

2013 2014 Council 2013 Movement in Reserves – Investments2014 revaluation reserve Consolidated $'000 $'000 $'000 2014 2013 2014 Council $'000 2013 Consolidated FINANCIAL REPORT- FOR THE YEAR ENDED 30 JUNE 2014Balance at the beginning of the year 4,649 4,649 $'000 $'000 $'000 $'000 2014 2013 2014 2013 Regent Management Company 4,649 4,649 Balance at the beginning of the year 4,6494,649c) Movement in Reserves – Investments revaluation reserve$'000 $'000 $'000 $'000 Revaluation Regent Company 4,6494,649BalanceManagement at the beginning of the year 4,6494,649Consolidated Council 4,649 4,649 4,649 4,649 Revaluation Regent Management Company 4,649 4,649 20144,649 20134,649 20144,649 20134,649 Revaluation d) Movement in Reserves – Reserve for$'000 Public Open$'000 Space $'000 $'000 4,649 4,649 4,649 4,649 d) Movement in Reserves – Reserve for Public Open Space d) Movement in Reserves – Reserve for Public Balance at the beginning of the year 4,649Open Space 4,649 Consolidated Council RegentMovement Management Company – Reserve for2014 -Open2013 4,649 4,649 2014 2013 d) in Reserves Public Space Consolidated Council Revaluation $'000 $'000 $'000 $'000 2014 2013 2014 Consolidated Council 20134,649 4,649 4,649 4,649 Balance at the beginning of the year 10,754 7,062 10,754 7,062 $'000 $'000 $'000 $'000 2014 2013 2014 2013 Transfers to accumulated reserv es 6,412 6,334 6,412 6,334 Balance at the beginning of the year 10,754Open$'000 7,062 10,754 7,062 $'000 $'000 d) Movement in Reserves – Reserve for$'000 Public Space Transfers from accumulated reserv es (3,260) (2,642) (3,260) (2,642) Transfers accumulated reserv 6,412 6,334 6,412 6,334 Balance attothe beginning of the es year 10,754 7,062 10,754 7,062 Consolidated Council (2,642) Balance atfrom the accumulated end of the financial year 13,906 10,754 13,906 10,754 Transfers reserv (3,260) (2,642) (3,260) Transfers to accumulated reserv es es 6,412 6,334 6,412 6,334 2014 2013 2014 2013 Balance atfrom the accumulated end of the financial year 13,906 10,754 13,906 10,754 Transfers reserv es (3,260) (2,642) (3,260) (2,642) e) Movement in Reserves – Tree Compensation reserve $'000 $'000 $'000 $'000 Balance at the end of the financial year 13,906 10,754 13,906 10,754 e) Movement in Reserves – Tree Compensation reserve7,062 Balance at the beginning of the year 10,754 10,754 7,062 Consolidated Council Transfers toReserves accumulated reserv es 6,412 reserve 6,334 6,412 6,334 e) Movement in Tree Compensation reserve 2014 2013 2014 2013 e) Movement in –Reserves – Tree Compensation Consolidated Council Transfers from accumulated reserves (3,260) (2,642) (3,260) (2,642) $'000 $'000 $'000 $'000 2014 2013 2014 Council 2013 Consolidated Balance at at the the beginning end of the of financial year 13,90610,75413,90610,754Balance the year $'000 $'000 $'000 $'000 2014 2013 2014 2013 Transfers from accumulated surplus 842 842 Balance at the beginning of the year $'000 - reserve $'000 $'000 $'000 e) Movement in Reserves – Tree Compensation 842 842 Transfersatfrom surplus 842842--Balance the accumulated beginning of the year -Consolidated Council 842 842 Transfers from accumulated surplus 842 -842 -2014 2013 2014 2013 842 842 $'000 $'000 $'000 $'000 Balance at the beginning of the year Note 16. from Gain/(loss) onsurplus sale of fixed assets842 Transfers accumulated 842 Note 16. Gain/(loss) on sale of fixed assets842 842 ConsolidatedCouncil

c)

OTHER DISCLOSURES OTHER DISCLOSURES OTHER DISCLOSURES

OTHER DISCLOSURES OTHER DISCLOSURES

Note 16. Gain/(loss) on sale of fixed assets2014 2013 Consolidated

$'000 $'000 2014 2013 Consolidated Land & Buildings & Infrastructure $'000 $'000 2014 2013 Proceeds from sales 1,302 10,854 Land16. & Buildings & Infrastructure Note Gain/(loss) on sale of fixed assets$'000 $'000 Carrying amount of assets sold (245) (8,282) Proceeds from sales 1,302 10,854 Land & Buildings & Infrastructure Consolidated Gain/(Loss) on sale 1,057 2,572 Carrying amount of assets sold (245) (8,282) Proceeds from sales 1,302 10,854 2014 2013 Gain/(Loss) on sale 1,057 2,572 Carrying amount of assets sold (245) (8,282) Plant, Equipment $'000 $'000 Gain/(Loss) on sales sale& Infrastructure 1,057 2,572 Proceeds from 660 1,269 Plant, Land &Equipment Buildings Carrying amount of assets sold/disposed (620) (1,391) Proceeds from sales 660 1,269 1,302 10,854 Plant, Equipment (Loss)/Gain on sale 40 (122) sold/disposed (620) (1,391) Carrying amount of assets sold (245) (8,282) Proceeds from sales 660 1,269 (Loss)/Gain 40 (122) Gain/(Loss) on sale 1,057 2,572 Carrying amount of assets sold/disposed (620) (1,391) Total proceeds from sale of assets 1,962 12,123 (Loss)/Gain on sale 40 (122) Plant, Equipment Total of assets sold (865) (9,673) Total carrying proceedsamount from sale of assets 1,962 12,123 Proceeds from sales 660 1,269 Total Gain onamount Sale of assets sold 1,097 2,450 Total carrying (865) (9,673) Total proceeds sale ofsold/disposed assets 1,962 12,123 Carrying amountfrom of assets (620) (1,391) Total Gain onamount Sale 1,097 2,450 Total carrying (865) (9,673) (Loss)/Gain on sale of assets sold 40 (122) Total Gain on Sale 1,097 2,450

Note 16. Gain/(loss) on sale of fixed assets

Total proceeds from sale of assets Total carrying amount of assets sold Total Gain on Sale

1,962 (865) 1,097

12,123 (9,673) 2,450

2014Council 2013 $'000 2014Council$'000 2013 $'000 $'000 2014 2013 1,302 1,071 $'000 $'000 (245) (771) 1,302 1,071 Council 1,057 300 (245) (771) 1,302 1,071 2014 2013 1,057 300 (245) (771) $'000 $'000 1,057 300 517 655 (620) (853) 517 655 1,302 1,071 (103) (198) (620) (853) (245) (771) 517 655 (103) (198) 1,057 300 (620) (853) 1,819 1,726 (103) (198) (865) (1,624) 1,819 1,726 517 655 954 102 (865) (1,624) 1,819 1,726 (620) (853) 954 102 (865) (1,624) (103) (198) 954 102 1,819 (865) 954

1,726 (1,624) 102

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40 of 58 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Note 17.17.

Cash flow Note Cash flowinformation information

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

a) Reconciliation from flow net cash provided byprovided operating by activities to surplus a.

Reconciliation from net cash operating activities to surplus Note 17.

Cash information

a.

Reconciliation from net cash provided by operating activities to surplus Consolidated

Profit Adjustments for: Profit Depreciation and amortisation Adjustments for: Investment properties revaluation Depreciation and amortisation Gain on sale of property, plant and Investment properties revaluation equipment Gain on sale of property, plant and Contributed assets equipment Dividends received Contributed assets Transfer of assets to external parties Dividends received Movement of Investments held Transfer of assets to external parties Movement in capital accruals Movement of Investments held Movement in capital accruals Changes in assets and liabilities in relation to operating activities: Changes in assets and liabilities in (Increase)/Decrease in trade and other relation to operating activities: receivables (Increase)/Decrease in trade and other (Increase)/Decrease in other assets receivables (Increase) in Inventories (Increase)/Decrease in other assets (Increase)/Decrease in accrued income (Increase) in Inventories (Decrease)/Increase in trade and other (Increase)/Decrease in accrued income payables (Decrease)/Increase in trade and other (Decrease)/Increase in superannuation payables liability (Decrease)/Increase in superannuation (Decrease)/Increase in employee benefits liability (Decrease)/Increase (Decrease)/Increase in in employee provisions benefits

Net cash provided by operating (Decrease)/Increase in provisions activities Net cash provided by operating b.activities Cash and cash equivalents

2014 Consolidated 2013 $'000 $'000 2014 2013 36,036 52,627 $'000 $'000 36,036 52,627 69,467 67,328 (5,640) (1,468) 69,467 67,328 (1,097) (2,450) (5,640) (1,468) (1,097) (2,450) (7,895) (20,611) (43) (7,895) (20,611) 4,200 (43) 4,200 4,947 5,771 4,947 5,771

Council 2014Council 2013 $'000 $'000 2014 2013 31,343 51,214 $'000 $'000 31,343 51,214 55,281 52,822 (5,640) (1,468) 55,281 52,822 (954) (102) (5,640) (1,468) (954) (102) (7,895) (20,611) (3,662) (2,869) (7,895) (20,611) 4,200 (3,662) (2,869) 540 4,200 6,277 5,771 540 6,277 5,771

(132)

(1,167)

2,505

692

(132) 163 (165) 163 2,333 (165) 6,829 2,333 6,829 -

(1,167) (274) (55) (274) (718) (55) (2,964) (718) (2,964) (15,860)

2,505 270 270 (230) 9,306 (230) 9,306 -

692 1,741 1,741 1,417 (5,518) 1,417 (5,518) (9,812)

353

(15,860) 4,299

3,406

(9,812) 2,572

353 1,457 110,856 1,457 110,856

4,299 (645) 83,770 (645) 83,770

3,406 1,473 96,220 1,473 96,220

2,572 (631) 75,218 (631) 75,218

b) Cash and cash equivalents Cash at the end the financial year as shown in the Balance Sheet and Statement of Cash Flows b.

Cash andof cash equivalents Cash at the end of the financial year as shown in the comprises: Cash atSheet the end the financial year as shown in the Balance Sheet and Statement of Cash Flows Balance and of Statement of Cash Flows comprises:

comprises:

Cash on hand Cash at bank Cash on hand Bank Bills, Transferable Certificates of Cash at bank Deposit Bank Bills, Transferable Certificates of Cash and Cash Equivalents Deposit and Cash Equivalents c.CashRestrictions on investments

Consolidated 2014 2013 $'000 Consolidated $'000 2014 2013 $'000 80 $'000 79 8,509 6,980 80 79 102,135 106,942 8,509 6,980 102,135 106,942 110,724 114,001 110,724

114,001

Council 2014 2013 $'000Council$'000 2014 2013 $'000 41 $'000 43 6,875 4,733 41 43 92,423 98,100 6,875 4,733 92,423 98,100 99,339 102,876 99,339

102,876

Council has cash and equivalents (note 17b) that are subject to restrictions as at the reporting date, c.

Restrictions oncash investments Council had legislative restrictions in relation to reserve funds (Recreational Lands Reserves).

Council has cash and cash equivalents (note 17b) that are subject to restrictions as at the reporting date, Council Council had legislative restrictions in relation to reserve Consolidated funds (Recreational Lands Reserves).

2014 2013 2014 2013 Consolidated Council $'000 $'000 $'000 $'000 2014 2013 2014 2013 $'000 $'000 $'000 $'000 Reserve Funds 13,906 10,754 13,906 10,754 Reserve Funds

13,906

10,754

13,906

10,754

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Cash and cash equivalents

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2014 $'000

Consolidated 2013 $'000

Cash on hand 80 Cash at bank 8,509 Bank Bills, Transferable Certificates of 102,135 Deposit c) Restrictions on investments Cashhas and Cash 110,724 Council cash and Equivalents cash equivalents (note 17b) that are

Council 2014 2013 $'000 $'000

79 6,980 106,942

41 6,875 92,423

43 4,733 98,100

114,001

99,339

102,876

subject to restrictions as at the reporting date, Council c.

Restrictions on investments had legislative restrictions in relation to reserve funds Council hasLands cash and cash equivalents (note 17b) that are subject to restrictions as at the reporting date, (Recreational Reserves).

Council had legislative restrictions in relation to reserve funds (Recreational Lands Reserves).

2014 $'000

Consolidated 2013 $'000

13,906

Reserve Funds

10,754

Council 2014 2013 $'000 $'000 13,906

10,754

The Council invests cash at call which is available for Interest these ENDED instruments are fixed 412014 of 58 FINANCIALperiods.

REPORT FORrates THEonYEAR 30 JUNE FINANCIALforREPORT THE ENDED 30withdrawn JUNE 2014 withdrawal on demand. It also invests in term deposits a specificFOR period andYEAR the funds are not The Council invests cash of at deposit call which is available for withdrawal on demand. It also invests in term deposits and transferable certificates for fixed until maturity.

The Council invests cash at call which is available for withdrawal on demand. It also invests in term deposits and transferable certificates of deposit for fixed periods. Interest rates on these instruments are fixed for a and transferable certificates of deposit for fixed periods. Interest rates on these instruments are fixed for a specific period and the funds are not withdrawn until maturity. specific period and the funds are not withdrawn until maturity.

Note Leases and commitments Note 18.18.

Leases and commitments Note 18.

Leases and commitments a) Operating leases receivable a. Operating leases receivable

a.

Operating leases receivable

Future minimum lease receipts under nonFuture minimum lease receipts under noncancellable operating leases for rentals of cancellable operating leases for rentals of property, contracted for at balance date, property, contracted for at balance date, but not recognised as assets: but not recognised as assets: Not longer than 1 year Not longer than 1 year Between 1 and 5 years Between 1 and 5 years Longer than 5 years Longer than 5 years

b.

Consolidated Consolidated 2014 2013 2014 2013 $'000 $'000 $'000 $'000

3,269 3,269 7,290 7,290 33,484 33,484 44,043 44,043

4,579 4,579 7,507 7,507 34,446 34,446 46,532 46,532

Council Council 2014 2013 2014 2013 $'000 $'000 $'000 $'000

3,269 3,269 7,290 7,290 33,484 33,484 44,043 44,043

4,579 4,579 7,507 7,507 34,446 34,446 46,532 46,532

Operating commitments

b. Operating commitments b) Operating commitments

Operating leases at balance date but not Operating leases at balance date but not recognised as liabilities: recognised as liabilities: Property rentals Property rentals Not longer than 1 year Not longer than 1 year Between 1 and 5 years Between 1 and 5 years Longer than 5 years Longer than 5 years Operating maintenance commitments Operating maintenance commitments Payable within 1 year Payable within 1 year Between 1 and 5 years Between 1 and 5 years Service commitments Service commitments Payable within 1 year Payable within 1 year Between 1 and 5 years Between 1 and 5 years Longer than 5 years Longer than 5 years

Consolidated Consolidated 2014 2013 2014 2013 $'000 $'000 $'000 $'000

Council Council 2014 2013 2014 2013 $'000 $'000 $'000 $'000

921 921 2,785 2,785 76 76 3,782 3,782

779 779 2,735 2,735 92 92 3,606 3,606

921 921 2,785 2,785 76 76 3,782 3,782

779 779 2,735 2,735 92 92 3,606 3,606

13,692 13,692 13,692 13,692

11,927 11,927 307 307 12,234 12,234

14,517 14,517 14,517 14,517

13,325 13,325 1,134 1,134 14,459 14,459

20,373 26,733 47,991 58,818 20,373 26,733 47,991 58,818 24,132 12,211 93,237 106,543 24,132 12,211 93,237 106,543 48 62 48 234 48 62 48 234 44,553 39,006 141,276 165,595 44,553 39,006 141,276 165,595 Council's leasing profile comprises of largely crown land. Others in the portfolio include freehold or lease Council's leasing profile comprises of largely crown land. Others in the portfolio include freehold or lease commitments.

Council has aofvarying number of leases leases varying from monthly over over holding to short termterm Councilâ&#x20AC;&#x2122;s leasingThe profile comprises largely crown varying from monthly holding to short commitments.

The Council has a varying number of leases varying from monthly over holding to short term to long term.

Theportfolio rental amounts are either fixed term, some are annual CPIrental reviews or market reviews. land.

Others in the include freehold or lease to long term.

The amounts are either fixed to long term. The rental amounts are either fixed term, some are annual CPI reviews or market reviews. term, commitments. The Council has a varying number of

some are annual CPI reviews or market reviews

158 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU Š OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 c) Capital commitments c.

Capital commitments

Consolidated Council 2014 2013 2014 2013 $'000 $'000 $'000 $'000 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

Expenditure contracted at balance date but not recognised in financial report as c.

Capital commitments liabilities: Consolidated Council Payable within 1 year 2014 2013 2014 2013 - Plant and Equipment 2,077 1,701 2,077 1,701 $'000 $'000 $'000 $'000 Between 1 and 5 years Expenditure contracted at balance date - Plant and Equipment 1,279 1,279 but not recognised in financial report as 3,356 1,701 3,356 1,701 liabilities: Payablecapital within 1 year commitments are a combination of fixed and variable over the tender period Council contract Council capital contract commitments are a combination of - Plantbetween and Equipment 2,077 1,701 2,077 1,701 varying one and five years. fixed and variable over the tender period varying between one Between 1 and 5 years and five years.

Note 19.and Contingent - Plant Equipment liabilities 1,279 1,279 3,356 1,701 3,356 1,701 Council has not identified any contingent liabilities as at balance date.

Note 19. 20.

Contingent liabilities Note Defined Benefits Superannuation Funds Council capital contract commitments are a combination of fixed and variable over the tender period varying between one and five years.liabilities Fund Council has not identified any contingent a.

Local Authorities Superannuation as at balance date.

Note 19. Contingent liabilities Defined benefits fund

Council has not identified any contingent liabilities as at balance date.

Employer contributions to Local Authorities Superannuation Note 20.20.

Defined Benefits Superannuation Funds Note Defined Benefits Superannuation Funds Fund (Vision Super) a) Local Authorities Superannuation Fund a.

Localcontributions Authorities Superannuation Employer payable to LocalFund Authorities Superannuation Fund (Vision Super) at reporting date Defined benefits fund

2014 000's

145 38

2013 000's

140 35

2014 2013 000's Fund, a multi-employer 000's 14 Council staff are members of Visions Local Authorities Superannuation Authorities Employer contributions to Local Superannuation 145 140 defined benefit fund with a total of 4,380 members. Funding of the fund is primarily through employer Fund contributions (Vision Super) (in 2014 at 9.5% of members’ salaries) and returns on investment, however Council may Employer contributions payable to Local Authorities 38 funds provided35are be required to provide additional funds should they be required. Any additional Superannuation Fund (Vision Super) at reporting date contributed in proportion to membership of the total fund.

14 staff and are members of Visionscalculations Local Authorities Superannuation Fund, a multi-employer TheCouncil complexity timing of actuarial required to allocate assets and liabilities to

14 Council staff are members of Visions Local Authorities b) Accumulation Fund defined benefit fund results with a total of 4,380 members. of the the necessary fund is primarily through individual Council’s in it being impractical to Funding determine information to employer account for Superannuation Fund, a multi-employer defined benefit The Fund’s accumulation category, Vision Super Saver, contributions (in 2014 at 9.5% of members’ salaries) and returns on investment, however Council may the fund as a defined benefit fund within the financial statements, as such Council accounts for the fund with a total of 4,380 members. Funding of the fund receives both employer and employee contributions on a be required to provide additional funds should they be required.

Any additional funds provided are fund as a contribution plan. is primarily through employer contributions (in 2014 at progressive basis. Employer contributions are normally contributed in proportion to membership of the total fund.

9.5% salaries)Fund and returns on investment, based on a fixed percentage of employee earnings b. of members’ Accumulation however The Council may be required to provide additional in 2013/14 (9% inassets 2012/13) as liabilities required under complexity and timing of actuarial calculations(9.25% required to allocate and to The Fund's accumulation category, Vision Super Saver, receives both employer and employee funds should they beCouncil’s required. results Any additional funds Legislation).

Noto further individual in it being impractical toSuperannuation determine theGuarantee necessary information account for contributions on a progressive basis. Employer contributions are normally based on a fixed providedthe are fund contributed in proportion tofund membership of financial liability accrues toas thesuch employer as the superannuation as a defined benefit within the statements, Council accounts for the percentage of employee earnings (9.25% in 2013/14 (9% in 2012/13) as required under the total fund fund. as a contribution plan. benefit accruing to employees is represented by their Superannuation Guarantee Legislation). No further liability accrues to the employer as the share of the Fund net assets. b. complexity Accumulation The and timingFund of actuarial calculations superannuation benefit accruing to employees is represented by their share of the Fund net assets. required to allocate assets and liabilities to individual The Fund'sfund accumulation category, Vision Super Saver, receives both employer and employee Accumulation 2014 2013 Council’s results in it being impractical to determine contributions on a progressive basis.

Employer contributions are normally based on a fixed 000's 000's the necessary information to account for the fund as a percentage of employee earnings (9.25% in 2013/14 (9% in 2012/13) as required under Employer Visionstatements, Super as 7,156 6,719 defined benefitcontributions fund within theto financial Superannuation Guarantee Legislation). No further liability accrues to the employer as the such Council accounts for the fund as a contribution plan.

superannuation benefit accruing to employees is represented by their share of the Fund net assets.

Employer contributions to other non-vision super funds 1,524 1,359 Accumulation fund 2014 2013 c.

Melbourne City Council Superannuation Sub Plan (CMSSP) Members 000's 000's A separate plan is operated Council defined benefit members under7,156 the Local Authorities Employer contributions to Visionfor Super 6,719 Superannuation Fund (the Fund). This separate plan (the CMSSP) is a multi-employer sponsored plan and was closed to new members on 23super December the members in the CMSSP Employer contributions to other non-vision funds1993. The majority of1,524 1,359 are employees of the participating employers that are wholly owned subsidiaries of the Council. c.

Melbourne City Council Superannuation Sub Plan (CMSSP) Members As provided under paragraph 34 of AASB 119, the Council does not use the defined benefit A separate plan operated for Council defined benefit the Localentity Authorities accounting for itsisdefined benefit obligations under the members CMSSP atunder the individual level. As a multiSuperannuation Fund (the Fund). This separate plan (the CMSSP) is a multi-employer sponsored plan and was closed to new members on 23 December 1993. The majority of the members in the CMSSP 43 of 58 are employees of the participating employers that are wholly owned subsidiaries of the Council.

159

As provided under paragraph 34 of AASB 119, the Council does not use the defined benefit accounting for its defined benefit obligations under the CMSSP at the individual entity level. As a multi43 of of 58 58 43

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c) Melbourne City Council Superannuation Sub Plan (CMSSP) Members A separate plan is operated for Council defined benefit members under the Local Authorities Superannuation Fund (the Fund). This separate plan (the CMSSP) is a multi-employer sponsored plan and was closed to new members on 23 December 1993. The majority of the members in the CMSSP are employees of the participating employers that are wholly owned subsidiaries of the Council.

As provided under paragraph 34 of AASB 119, the Council does not use the defined benefit accounting for its defined benefit obligations under the CMSSP at the individual entity level. As a multi-employer sponsored plan, the CMSSP is a mutual scheme between participating employers it allows for the mobility of the workforce between the participating employers without attaching a specific CMSSP liability to employees and their current employer. There is no proportional split of the CMSSP defined benefit liabilities, assets or costs between the participating employers as the CMSSP defined benefit obligation is a floating obligation between the participating employers and the only time that the aggregate CMSSP obligation is allocated to specific employers is when a call is made. As a result, the level of participation of the Council in the CMSSP cannot be measured as a percentage compared with other participating employers in the Council’s individual entity level financial statements. While there is an agreed methodology to allocate any CMSSP shortfalls identified by the Fund Actuary for funding purposes, there is no agreed methodology to allocate CMSSP benefit liabilities, assets and costs between participating employers for accounting purposes. Therefore, the Fund Actuary is unable to allocate CMSSP benefit liabilities, assets and costs between employers on an individual entity basis for purposes of AASB 119.

However, as the majority of the members of the CMSSP are employees of the Council group, the surplus or deficit of the CMSSP is recorded in accordance to AASB119 at the consolidated level for reporting purposes.

CMSSP member profiles are reviewed periodically to determine if and when reporting at the individual entity level became appropriate.

Funding arrangements The Council makes employer contributions to the CMSSP at rates determined by the Fund’s Trustee on advice of the Fund’s Actuary. The CMSSP’s employer funding arrangements comprise of three components (which are detailed below) are: 1) Regular contributions – which are ongoing contributions needed to fund the balance of benefits for current members and pensioners; 2) Funding calls – which are contributions in respect of each participating employer’s share of any funding shortfalls that arose; and

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3) Retrenchment increments – which are additional contributions to cover the increase in liability arising from retrenchments.

The Council is also required to make additional contributions to cover the contribution tax payable on the contributions referred to above.

Employees are also required to make member contributions to the CMSSP. As such, assets accumulate in the CMSSF to meet member benefits, as defined in the Trust Deed, as they accrue.

Employer contributions Regular contributions On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s Actuary as at 31 December 2011, the Council makes employer contributions to the CMSSP at rates determined by the Fund’s Trustee. For the year ended 30 June 2014, this rate was 13 per cent of salary for active defined benefit members.

In addition, the Council makes employer contributions to the CMSSP for exiting members equal to the exiting member’s benefit payment less the existing member’s vested benefit adjusted for the CMSSP’s vested benefit index (VBI) where the VBI is less than 100%.

Funding calls The Fund is required to comply with the superannuation prudential standards. Under the superannuation prudential standard SPS 160, the Fund is required to target full funding of its vested benefits for each of its sub-plans (including CMSSP). There may be circumstances where: • A fund is in an unsatisfactory financial position at an actuarial investigation (i.e. its vested benefit index (VBI) is less than 100% at the date of the actuarial investigation); or • A fund’s VBI is below its shortfall limit at any time other than at the date of the actuarial investigations.

If either of the above occur, the fund has a shortfall for the purposes of SPS 160 and the fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. There may be circumstances where the Australian Prudential Regulation Authority (APRA) may approve a period longer than three years.

The Trustee’s monitor the CMSSP’s VBI on a quarterly basis and the CMSSP’s shortfall limit is set at 97%.

In the event that the Fund Actuary determines that there is a CMSSP shortfall based on the above requirement, CMSSP’s participating employers (including the Council) are required to make an employer contributions to cover the shortfall. The methodology to be used to allocate a shortfall should result in a fair and reasonable apportionment of the shortfall between the participating employers. A number of factors are

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 taken into consideration when determining the fairness/ reasonableness of the apportionment including: • the salary of the CMSSP members in participating CMSSP employer; • the vested benefit of each CMSSP members.

Due to the nature of the obligations between the participating CMSF employers and the CMSSP, it is unlikely that the CMSSP will be wound up. In the unlikely event the CMSSP is wound up and there is a surplus in the CMSSP, the surplus cannot be applied for the benefit of the CMSSP employers where there are on-going CMSSP obligations. The surplus would be transferred to the fund accepting those CMSSP obligations of the CMSSP. In the event that a participating CMSSP employer is wound up, the CMSSP defined benefit obligations of the CMSSP employer will be transferred to that employer’s successor.

Difference between calculations

Retrenchment increments During 2013/14, the Council was not required to make payments to the CMSSP in respect of retrenchment increments ($0.3 million in 2012/13).

Shortfall amounts The Fund’s latest actuarial investigations as at 31 December 2011 identified an unfunded liability of $6.02 million (including contributions tax) in the CMSSP of which the Council is a contributing employer.

The Council was made aware of the expected shortfall during the 2011/12 year. The Council has not been advised of any further adjustments.

The amount of the unpaid CMSSP shortfall at 30 June 2014 is $0 ($0 for 2012/13). An amount of $6.02 million was paid on 4 January 2013 as the Council’s share of the CMSSP’s liabilities, being the difference between the present value of employees’ accrued defined benefits and the net market value of the CMSSP’s assets at 31 December 2011. This amount was accounted for in the 2012/13 Statement of Financial Position note 20. No further payments have been made or accounted for during the 2013/14 year.

The CMSSP surplus or deficit (i.e. the difference between fund assets and liabilities) is calculated differently for funding purposes (i.e. calculating required contributions), for the calculation of accrued benefits as required in AAS Accrued benefits 25 and for the values needed for the AASB 119 disclosures The CMSSP Fund’s liability was determined in the 31 in the Council’s financial statements. AAS 25 requires December 2011 actuarial investigation pursuant to the that the present value of the defined benefit liability be FINANCIAL REPORT THEAccounting YEAR ENDED 30 JUNE requirements of theFOR Australian Standard calculated based on benefits that have accrued in respect AAS 25 as follows: of membership of the CMSSP up to the measurement date, Accrued benefits with no allowance for future benefits that may accrue.

2014

The CMSSP Fund’s liability was determined in the 31 December 2011 actuarial investigation pursuant to the requirements of the Australian Accounting Standard AAS 25 as follows: 31 December 2011 $ Millions Net market value of assets

52.4

Accrued benefits (per Accounting Standards)

54.5

Difference between Assets and Accrued benefits

(2.1)

Vested benefits

59.6

Vested benefits index

88%

The financial assumptions used to calculate the Accrued Benefits of the CMSSP were: •

Net investment return 7.5% pa

•

Salary inflation 4.25% pa

•

Price inflation 2.75% pa.

Favourable or unfavourable variations may arise should the experience of the CMSSP differ from the assumptions made by the Funds’ Actuary in estimating the CMSSP’s accrued benefit liability.

The next full actuarial investigation of the CMSSP’s liability for accrued benefits will be based on the CMSSP’s position as at 30 June 2014. The anticipated completion date of this actuarial investigation is 19 December 2014.

Superannuation contributions The total amount of superannuation contributions paid by the Council (inclusive of its wholly owned subsidiaries Citywide Service Solutions Pty Ltd and Queen Victoria Market Pty Ltd) during the year was $2.47 million (2013: $10.54 million).

The Council has an ongoing obligation to share in the future experience of the Local Authorities Superannuation Fund Defined Benefits Plan and the Melbourne City Council Superannuation SubPlan. 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.

161

CityWide Service Solutions Pty Ltd contributes in respect of its employees to the following sub-plans of the Local Authorities Superannuation Fund: •

The Melbourne City Council sub-plan,

•

The Defined Benefits plan, and

•

The Accumulation plan.

Melbourne City Council Superannuation Sub Plan

2014 000's

2013 000's

Accrued benefits (per Accounting Standards)

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54.5 (2.1)

Vested benefits

59.6

Vested benefits index

88%

The financial assumptions used to calculate the Accrued Benefits of the CMSSP were: •

Net investment return 7.5% pa

•

Salary inflation 4.25% pa

•

Price inflation 2.75% pa.

Favourable or unfavourable variations may arise should experience of the CMSSP differ from the The financial assumptions used to calculate the Accrued The the Council has an ongoing obligation to share thefuture CMSSP’s accrued benefit Benefitsassumptions of the CMSSPmade were: by the Funds’ Actuary in estimating in the experience of the Localliability.

Authorities Superannuation Fund Defined Benefits Plan and the The next full actuarial • Net investment return 7.5% painvestigation of the CMSSP’s liability for accrued benefits will be based on the Melbourne City date Council Sub-Plan.

CMSSP’s position as at 30 June 2014. The anticipated completion of Superannuation this actuarial investigation • Salary inflation 4.25% pa Favourable or unfavourable variations may arise should is 19 December 2014.

• Price inflation 2.75% pa. the experience of the Funds differ from the assumptions Superannuation contributions made by the Funds’ Actuary in estimating the Funds’ Favourable or unfavourable variations may arise should accrued liability.

The total of superannuation contributions paid by thebenefit Council (inclusive of its wholly owned the experience of amount the CMSSP differ from the assumptions subsidiaries Citywide Solutions Pty Ltd made by the Funds’ Actuary in Service estimating the CMSSP’s $2.47 million (2013: $10.54 million). accruedwas benefit liability.

and Queen Victoria PtyPty Ltd) during the year CityWide ServiceMarket Solutions Ltd contributes in respect

of its employees to the following sub-plans of the Local Authorities Superannuation The an ongoing obligation future experience of the Fund: Local Authorities The next fullCouncil actuarialhas investigation of the CMSSP’sto share in the Fund Plan and the •Melbourne City Council Superannuation Subliability Superannuation for accrued benefits willDefined be basedBenefits on the CMSSP’s The Melbourne City Council sub-plan, Favourable unfavourable variations may arise should the experience of the Funds differ from positionPlan. as at 30 June 2014.orThe anticipated completion • The Defined Benefits plan, and made byisthe Funds’ Actuary date of the this assumptions actuarial investigation 19 December 2014. in estimating the Funds’ accrued benefit liability.

• The Accumulation plan.

CityWidecontributions Service Solutions Pty Ltd contributes in respect of its employees to the following sub-plans of Superannuation

the Local Authorities Superannuation Fund:

The total amount of superannuation contributions paid • The Melbourne City Council sub-plan, by the Council (inclusive of its wholly owned subsidiaries Citywide Service Solutions Pty Ltd and Queen Victoria • The Defined Benefits plan, and Market Pty Ltd) during the year was $2.47 million (2013: • The Accumulation plan. $10.54 million).

Melbourne City Council Superannuation Sub Plan

2014 2013 000's 000's FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Asset/(Liability) Recognised in Balance Sheet 423 (3,301) Total amount in Other 4,024 7,455 Noterecognised 21. Related party Comprehensive transactions Income

a.

Names of persons holding the position of a Responsible Person at the Council during the financial year

Note 21. Related party transactions i.

Councillors

a. Names of persons holding the position of a Responsible Lordthe Mayor Robert Person at the Council during financial year Doyle

Richard Foster Deputy Lord Mayor Susan Riley Rohan Leppert i. Councillors Cathy Oke Stephen Mayne Lord Mayor Robert Doyle Richard Foster Ken Ong Kevin Louey Kevin Louey Arron Wood Deputy Lord Mayor Susan Riley Rohan Leppert Beverley Pinder-Mortimer Arron Wood Ken Ong Stephen Mayne Beverley Pinder-Mortimer Cathy Oke Jackie Watts Jackie Watts ii. Chief Executive Officer

ii.

Dr Kathy Alexander

Chief Executive Officer

Dr Kathy Alexander

b. Remuneration of Responsible Persons in bands of $20,000

b.

$0,000 - $19,999 $20,000 - $39,999 $40,000 - $59,999 $80,000 - $99,999 $180,000 - $199,999 $420,000 - $439,999 $460,000 - $479,999

Total remuneration for the financial year for Res pons ible Pers ons included above

Reflects remuneration packages Reflects remuneration packages for the period that thefor Councillors are also provided with responsible person was a Councillor. Councillors are alsoa provided with park, office and executive support. c. a carSenior Officers' Remuneration

162

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Remuneration of Responsible Persons in bands of $20,000 2014 9 1 1 1 12

2013 3 5 4 1 1 1 15

$'000 1,154

$'000 1,080

the period that the responsible person was a Councillor. car park, office and executive support.

The number of Senior Officers, other than the Responsible Persons, whose total remuneration exceeded $133,000 during the financial year, are shown below in their relevant income bands: 2014 2013 $130,000 - $132,999 13 53 $133,000 - $159,999 91 37 $160,000 - $179,999 14 11 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) $180,000 - $199,999 14 15 JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA $200,000 - $219,999 7 8 $220,000 - $239,999 2 93 MONTAGUE ST. STH MELBOURNE 4 VIC 3205 AUSTRALIA @ OD.COM.AU PH. (03) 9686 7766 | W. WWW.OD.COM.AU $240,000 - $259,999 4 | E. PRODUCTION 2 © OPTIMO 2014 $260,000 - $279,999 1 $300,000 - $319,999 1 1

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1 1 1 12

1 1 1 15

$'000 $'000 1,154 1,080 Total remuneration for the financial year for FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 Res pons ible Pers ons included above

Reflects remuneration packages for the period that the responsible person was a Councillor. c) Senior Officers’ Remuneration Councillors also The number of Senior Officers, otherare than theprovided with a car park, office and executive support.

Responsible Persons, whose total remuneration exceeded c.

Senior Officers' Remuneration $133,000 during the financial year, are shown below in The number of Senior Officers, other than the Responsible Persons, whose total remuneration their relevant income bands:

exceeded $133,000 during the financial year, are shown below in their relevant income bands: $130,000 - $132,999 $133,000 - $159,999 $160,000 - $179,999 $180,000 - $199,999 $200,000 - $219,999 $220,000 - $239,999 $240,000 - $259,999 $260,000 - $279,999 $300,000 - $319,999 $320,000 - $339,999 $340,000 - $359,999 $360,000 - $379,999 $380,000 - $399,999

Total remuneration for the financial year for Senior Officers included above

2014 13 91 14 14 7 4 4 1 1 2 1 1 153

2013 53 37 11 15 8 2 2 1 2 1 1 133

$'000 24,826

$'000 21,298

The remuneration threshold for Senior Officers' is reviewed each year by the Minister for Local

The remuneration threshold for Senior Officers’ is reviewed each year by the Minister for Local Government.

The threshold amount in 2013/14 was $133,000 ($130,000 in 2012/13). Note, in order to maintain consistency the 2013 comparative numbers are not indexed and have not been altered from the values recorded in the 2013 Financial Statements.

Total employment package for senior officers includes; • Under an executive contract, taxable salary, superannuation and motor vehicle component • For award staff, salary, superannuation, leave loading and overtime • Includes staff with termination payments. d) 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. e) Wholly-Owned Group The Council is the ultimate parent entity in the whollyowned group. Transactions with the controlled entities, Citywide Service Solutions Pty Ltd and its subsidiaries, Queen Victoria Market Pty Ltd, and Sustainable Melbourne Fund Trust during the year are included in sub-sections (f) – (h) following All subsidiaries are established and are resident in Australia.

f) Transactions with Citywide Service Solutions Pty Ltd Transactions with the Citywide Service Solutions Pty Ltd during the financial year were based on a contract for the

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provision of services comprising property rental, contract sales and the payment of charges (tax equivalents) which includes income tax and payroll tax.

Intercompany revenue and expenditure Revenue received from Citywide amounted to $414,000 (2012/13 $403,000) during the financial year.

Expenditure to Citywide amounted to $56,713,000 (2012/13 $64,426,000) during the financial year.

Income Tax and Payroll Tax Equivalent, and Dividend $7,170,000 (2012/13 $9,097,000) during the financial year. g) Transactions with Queen Victoria Market Pty Ltd Transactions with the Queen Victoria Market Pty Ltd during the financial year were based on a contract for the provision of services comprising a Licence fee, IT charges and in accordance with the Tax Equivalent Policy, the payment of charges (tax equivalents) which includes income tax.

Intercompany revenue and expenditure Revenue received from Queen Victoria Market amounted to $4,740,000 (2012/13 $4,740,000) during the financial year.

Income Tax Equivalent and Dividend $680,000 (2012/13 $970,000) during the financial year.

163

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h) Transactions with Sustainable Melbourne Fund The Council has expenditure to Sustainable Melbourne Fund for services provided of $10,000 (2012/13 $63,000).

The Council has received revenue from Sustainable Melbourne Fund of $34,000 (2012/13 $32,000).

NoteNote 22. 22.

Financial instruments Financial instruments

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

a) Accounting policy, terms and conditions

a.

Accounting policy, terms and conditions

Financial Instruments

Note

Accounting Policy

Terms and Conditions

Cash on hand, cash at bank and money market call account are valued at face value

Consolidated: On call deposits returned a floating interest rate of 2.58% (2.75% in 2012/13)

Financial Assets Cash and cash equivalents

17

Council: On call deposits returned a floating interest rate of 2.55% (2.75% in 2012/13) Short term deposits

17

Interest is recognised as it accrues Investments are valued at cost Investments are held to maximise interest returns of surplus cash

Bank Bills, Negotiable and Transferable Certificates of Deposits and Fixed Interest

17

Sundry debtors

5

Interest is recognised as it accrues Investments and bills are valued at cost Investments are held to maximise interest returns of surplus cash Fixed interest securities are valued at fair value

Consolidated: On call deposits returned a floating interest rate of 3.85% (4.09% in 2012/13) Council: On call deposits returned a floating interest rate of 2.73% (4.10 % in 2012/13) Consolidated: Transferrable Certificates of Deposit provided a return of 0.00% (3.81% in 2012/13) excluding unrealised gains/(losses) Council: Transferrable Certificates of Deposit provided a return of 0.00% (3.81% in 2012/13) excluding unrealised gains/(losses)

Receivables are carried at nominal amounts due less provision for doubtful debts. A provision for doubtful debts is recognised when collection in full is no longer probable.

Collectability of overdue accounts is assessed on an ongoing basis.

Trade debtors are unsecured. Credit terms are based on 30 days from date of invoice.

Investment for the Council include all wholly owned subsidiaries, wholly controlled trust of the Council and associated entities

Investments in other entities are valued at historical cost

Financial Liabilities Investments

7

Investments in the consolidated entity includes interests in other entities and associated entities Trade and other payables

Borrowings

12

Liabilities are recognised for amounts to be paid in the future for goods and services provided to Council as at balance date whether or not invoices have been received

Trade creditors are unsecured, not subject to interest charges and are normally settled within 30 days from date of invoice.

Borrowings are carried at their principal amounts, which represent the present value of future cash flows associated with the servicing of debt. Interest is recognised as an expense as it is incurred

Consolidated: st

Bank overdraft is secured with a 1 ranking fixed and floating charge Bill acceptance/discount facility is secured st with a 1 ranking fixed and floating charge The weighted average interest rate for borrowings is 2.67% (3.22% in 2012/13) Council: 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 2014.

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i.

2,509

6,000 6,000

8,509

8,509 -

16,480

4,500 4,500

14,000 20,980

6,980 -

2013 $ '000

102,135

-

102,135

102,135

2014 $ '000

92,942

-

92,942

92,942

2013 $ '000

Fixed Interest Rate Maturities 1 year or less

12,692

23,893 4,116 28,009

32,946 7,675 40,701

80 -

2014 $ '000

20,007

19,243 4,089 23,332

35,585 7,675 43,339

79 -

2013 $ '000

Non interest bearing

117,336

129,429

19,243 4,089 4,500 27,832

14,000 35,585 7,675 157,261

32,946 7,675 151,345

23,893 4,116 6,000 34,009

7,059 92,942

2013 $ '000

8,589 102,135

2014 $ '000

Total

Sundry Debtors have been adjusted to exclude Rates, Parking Infringements and GST receivable debtors to be consistent with the current year.

Net Financial Assets

3.22%

3.81%

0.00%

2.67%

2.75% 4.09%

2.58% 3.58%

2014 $ '000

Floating Interest Rate

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Financial Liabilities Trade creditors Deposits & retentions Borrowings Total Financial Liabilities

2013 %

2014 %

Weighted Average Interest Rate %

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:

Interest rate risk

Financial Assets Cash Short term deposits Bank Bills and Transferrable Certificates of Deposit Sundry debtors Investment in unlisted entities Total Financial Assets

b.

b) Interest rate risk i. The consolidated entityâ&#x20AC;&#x2122;s exposure to interest rate risk, repricing maturities and effective weighted average interest rates on financial instruments at balance date is set out below:

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

165

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:

© OPTIMO 2014

3.81%

0.00%

6,875

-

6,875

-

6,875 -

18,733

-

18,733

14,000 -

4,733 -

2013 $ '000

92,423

-

92,423

-

92,423

2014 $ '000

84,100

-

84,100

-

84,100

2013 $ '000

Fixed Interest Rate Maturities 1 year or less

22,118

13,077 1,960 15,037

32,316 37,155

4,798

41 -

2014 $ '000

34,002

6,323 2,166 8,489

32,856 42,491

9,592

43 -

2013 $ '000

Non interest bearing

32,856 145,324

32,316 136,453

121,416

136,835

6,323 2,166 8,489

14,000 9,592

4,798

13,077 1,960 15,037

4,776 84,100

2013 $ '000

6,916 92,423

2014 $ '000

Total

Sundry Debtors have been adjusted to exclude Rates, Parking Infringements and GST receivable debtors to be consistent with the current year.

Net Financial Assets

2.75% 4.10%

2.55% 2.73%

2014 $ '000

Floating Interest Rate

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Financial Liabilities Trade creditors Deposits & retentions Total Financial Liabilities

Investment in unlisted entities Total Financial Assets

2013 %

2014 %

Weighted Average Interest Rate %

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:

Financial Assets Cash Short term deposits Bank Bills and Transferrable Certificates of Deposit Sundry debtors

ii.

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 c.

Reconciliation of net financial assets c) Reconciliation of net financial assets to net assets

Net financial assets as above Non financial assets and liabilities: Inventories Intangible assets Other assets Rate debtors Property, plant, equipment & infrastructure Investment properties Net Assets/(Liabilities) Defined Super Fund Accruals Income in advance Employee entitlements Provisions Net assets per Balance Sheet

d.

Net fair values

to net assets Consolidated 2014 2013 $ '000 $ '000 Note 117,336 129,429

656 38,207 28,494 2,878 3,407,643

491 28,978 27,996 3,101 3,291,114

6 10

113,789 423

108,149 (3,301)

(65,625) (3,263) (47,781) (2,283) 3,590,474

(63,339) (3,397) (44,550) (826) 3,473,845

d) Net fair values The amounts carryingofamounts of assets all financial assets and The carrying all financial and liabilities value due to the short-term are a reasonable approximation of their to fairtheir valuematurity. due to the their Exposures maturity. e. short-term CredittoRisk

Council 2014 2013 $ '000 $ '000 121,416 136,835 11,004 22,869 2,879 3,340,611

8,738 20,398 3,101 3,219,798

11 20

113,789 -

108,149 -

12 12 13 14

(49,681) (1,248) (32,400) (1,991) 3,527,248

(46,575) (1,596) (28,994) (518) 3,419,336

5 9

ii. Interest rate risk

liabilities arerisk a reasonable ofoftheir Interest rate refers to the approximation risk that the value a fair

financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest e) Credit Risk Exposures The credit risk on financial assets of the economicbearing entity financial which have been recognised assets and liabilities thatin wethe use.Balance Non The credit risk on financial assets of the economic entity Sheet is generally the carrying amount, net of anyderivative provisions for doubtful debts.are predominantly interest bearing assets which have been recognised in the Balance Sheet is short term liquid assets. Council’s interest rate liability f.

Risks and mitigation generally the carrying amount, net of any provisions for risk is limited to our subsidiary company’s Citywide doubtful debts.

The risks associated with Council’s main financialService instruments and Council’s policies for minimising Solutions Pty Ltd borrowings.

Council has no these risks are detailed below. f) Risks and mitigation direct borrowings.

The risks associated with Council’s main financial i.

Market risk Council’s subsidiary company Citywide Service Solutions instruments and Council’s policies for minimising these Pty Ltd has a borrowing and overdraft facility which has risks are detailed below. risk is the risk that the fair value or future cash flows of our financial instruments will Market been arranged with a major Australian bank. Council’s fluctuate because of changes in market prices. The Council's exposures to market risk are i. Market risk subsidiary company manages the interest rate risk by: primarily through interest rate risk with only insignificant exposure to other price risks and no Market risk is the risk that the fair value or future cash • ensuring accessrisk to diverse sources of funding; exposure to foreign currency risk. Components of market to which we are exposed are flows of our financial instruments will fluctuate because discussed below.

• an ongoing review or borrowing levels; and of changes in market prices. The Council’s exposures to marketii. risk are primarily interest rate risk with • having a limit imposed on the maximum borrowing Interestthrough rate risk only insignificant exposure to other price risks and no amount allowed by Council.

Interest rate risk refers to the risk that the value of a financial instrument or cash flows exposure to foreign currency risk. Components of market risk to which weassociated are exposed.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. Council's interest rate liability risk is limited to our subsidiary company’s Citywide Service Solutions Pty Ltd borrowings. Council has no direct borrowings.

Council's subsidiary company Citywide Service Solutions Pty Ltd has a borrowing and overdraft facility which has been arranged with a major Australian bank. Council's subsidiary company manages the interest rate risk by: •

ensuring access to diverse sources of funding;

•

an ongoing review or borrowing levels; and

•

having a limit imposed on the maximum borrowing amount allowed by Council.

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Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. Council manages interest rate risk by adopting an investment policy that ensures: • conformity with State and Federal regulations and standards, • adequate safety; • appropriate liquidity; • diversification by credit rating, financial institution and investment product; • monitoring of return on investment; • benchmarking of returns and comparison with budget; and • Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk. iii. 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. The Council has exposure to credit risk on all financial assets included in our balance sheet. To help manage this risk:

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g) Borrowings With respect to borrowings at Citywide Service Solutions Pty Ltd the following should be noted. The bank overdraft facility is a secured facility. In February 2012 the Bill Acceptance and Discount Facility was increased.

This facility is also a secured facility. There is a 1st ranking fixed and floating charge. The bank facilities may be drawn at any time and may be terminated by the bank subject to default under the loan agreement. Subject to the continuance of satisfactory covenant achievement, the bank facilities may be drawn at any time. The facilities expire on the 2 June 2017.

The Council 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. h) Liquidity risk Liquidity risk includes the risk that, as a result of our operational liquidity requirements: • The Council will not have sufficient funds to settle a transaction on the date;

• The Council has a policy for establishing credit limits for the entities we deal with;

• The Council will be forced to sell financial assets at a value which is less than what they are worth; or

• The Council may require collateral where appropriate; and

• The Council may be unable to settle or recover financial assets at all

• The Council only invests surplus funds with financial institutions which have a recognised credit rating specified in our Treasury 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 risk is spread across many debtors. Ongoing credit evaluation is performed on the financial condition of our customers and, where appropriate, an allowance for doubtful debts is raised. The aging of receivables is disclosed in Note 5.

- To help reduce these risks the Council: - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; - 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; and - Council has no direct borrowings.

The Consolidated Entity’s exposure to liquidity risk is deemed insignificant given our high levels of cash and cash equivalents, Citywide Service Solutions Pty Ltd borrowing levels and our current assessment of risk.

168 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 The table below lists the contractual maturities assessment of risk. for financial liabilities. These amounts represent undiscounted gross payments including both principal The table below lists the contractual maturities for financial liabilities. These amounts and interest amounts. undiscounted gross payments including both principal and interest amounts.

Consolidated Trade and other payables Trust funds and deposits Interest-bearing loans and borrowings Total financial liabilities

Consolidated Trade and other payables Trust funds and deposits Interest-bearing loans and borrowings Total financial liabilities

Council Trade and other payables Trust funds and deposits Interest-bearing loans and borrowings Total financial liabilities

Council Trade and other payables Trust funds and deposits Interest-bearing loans and borrowings Total financial liabilities

represent

2014 6 mths 6-12 1-2 2-5 >5 Contracted Carrying or less months years years years Cash Flow Amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 84,847 84,847 84,847 2,967 2,967 2,967 6,000 6,000 6,000 87,814

-

-

6,000

-

93,814

93,814

2013 6 mths 6-12 1-2 2-5 >5 Contracted Carrying or less months years years years Cash Flow Amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 78,957 78,957 78,957 2,813 2,813 2,813 4,500 4,500 4,500 81,770

-

-

4,500

-

86,270

86,270

2014 6 mths 6-12 1-2 2-5 >5 Contracted Carrying or less months years years years Cash Flow Amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 57,828 57,828 57,828 1,456 1,456 1,456 59,284

-

-

-

-

59,284

59,284

2013 6 mths 6-12 1-2 2-5 >5 Contracted Carrying or less months years years years Cash Flow Amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 49,762 49,762 49,762 1,374 1,374 1,374 51,136

-

-

-

-

51,136

51,136

Trade and other payables have been recorded excluding GST on balances where GST is applied as per not-for-profit entities] paragraph AG12.

Trade and other payables have been recorded excluding AASB 132 Financial Instruments: Presentation [for GST on balances where GST is applied as per AASB 132 Financial Instruments: Presentation [for not-for-profit entities] paragraph AG12.

169

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i. Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts and management’s FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 knowledge, and past experience of financial markets, the believes a disclosure shift of +1.0%analysis and -0.5% in the i. Council Sensitivity Australian Dollar market interest rates from year end rates Taking into account future expectations, economic forecasts and management's is ‘reasonably possible’ over thepast nextperformance, 12 months.

knowledge, and past experience of financial markets, the Council believes a shift of +1.0% and -0.5%

The table below discloses the impact on net operating in the Australian Dollar market interest rates from year end rates is 'reasonably possible' over the next result and equity for each category of financial 12 months. instruments held by the Council at year end, if the above Thewere table movements tobelow occur. discloses the impact on net operating result and equity for each category of financial

instruments held by the Council at year end, if the above movements were to occur.

Consolidated Financial assets Cash and cash equivalents Financial liabilities Interest-bearing loans and borrowings Council Financial assets Cash and cash equivalents

2014 $'000

Interest rate risk -50 basis points +100 basis points Profit Equity Profit Equity $'000 $'000 $'000 $'000

110,644

(553)

(553)

1,106

1,106

6,000

(30)

(30)

60

60

99,298

(496)

(496)

993

993

The cash balances above exclude amounts held as petty cash balances. These amounts are not held due to changes in interest rates.

The cash exclude amounts as petty onbalances deposit above and are therefore not held subject to vary cash balances. These amounts are not held on deposit and are therefore not subject to vary due to changes in interest rates.

170 55 of 58 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

Consolidated

Council

e. Working Capital Ratio Current assets Current liabilities 175,698 141,410

152,961 3,743,435

213,837 584,120

124.25%

4.09%

36.61%

139.19%

3.96%

34.51%

151.73%

4.67%

35.78%

129,885 97,315

100,357 3,627,605

213,837 385,205

133.47%

2.77%

55.51%

162.78%

2.46%

52.23%

171.62%

2.90%

53.96%

0.00%

0.00%

2012

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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d. Debt Ex posure Ratio Total indebtedness Total assets To identify Council's exposure to debt.

c. Revenue Ratio Rate revenue Total revenue To identify Council's dependence on rates.

b. Debt Commitment Ratio Not required on 0 0.00% 0.00% Debt servicing and redemption costs Consolidation Rate revenue 213,837 To identify Council's debt redemption strategy.

Council's ability to meet its Debt commitment is extremely strong. When rounded the ratio of rate revenue to debt is less than 2.5%

2014 2014 2013 2012 2013 a. Debt Servicing Ratio 353 0.06% 0.10% 0.11% 0 0.00% 0.00% Debt servicing cost Total revenue 584,120 385,205 To identify the capacity of the Council to service its outstanding debt.

Council's ability to meet its Debt servicing cost is extremely strong. When rounded the ratio of revenue to debt is less than 1%

Note 23. Financial ratios

Note 23. Financial ratios

FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

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Definitions

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FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

To assess the Consolidated Entity and Councilâ&#x20AC;&#x2122;s ability to Definitions meet current commitments.

Toevery assess theof Consolidated Entity and Council's ability to meet current commitments.

For dollar current liabilities, the Consolidated Entity has $1.24 of current assets as at 30 June 2014 For every dollar of current liabilities, the Consolidated Entity has $1.24 of current assets as at 30 June 2014 ($1.39 as at 30 June 2013) and Council has $1.33 of ($1.39 as at 30 June 2013) and Council has $1.33 of current assets as at 30 June 2014 ($1.63 as at 30 June current 2013).assets as at 30 June 2014 ($1.63 as at 30 June 2013). a. Debt servicing costs

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

b. Debt redemption

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

c. Rate revenue

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

Total revenue d. Total assets Total indebtedness e. Current liabilities Current assets

Total revenue as shown in the Comprehensive Income Statement.

Total assets, both current and non-current, as shown in the Balance Sheet Total liabilities, both current and non-current, as shown in the Balance Sheet Total current liabilities as shown in the Balance Sheet.

Total current assets as shown in the Balance Sheet.

Note 24. Events occurring after balance date

There no events that have occurred balance date that need to be reflected in the Financial Note 24.areEvents occurring after after balance date Statements.

There are no events that have occurred after balance date that need to be reflected in the Financial Statements.

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174 DATE. 29.09.2014 JOB SIZE. 297mm(h) x 210mm(w) JOB NO. REV. CLIENT. JOB NAME. 033345r09_COME_Annual_Report_2013_2014_PAGES_112-178_FA 93 MONTAGUE ST. STH MELBOURNE VIC 3205 AUSTRALIA PH. (03) 9686 7766 | W. WWW.OD.COM.AU | E. PRODUCTION@ OD.COM.AU © OPTIMO 2014

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How to contact us Online: melbourne.vic.gov.au Telephone: 03 9658 9658 7.30am to 6pm, Monday to Friday (public holidays excluded) Translation services

National Relay Service: If you are deaf, hearing impaired or speech-impaired, call us via the National Relay Service: Teletypewriter (TTY) users phone 1300 555 727 then ask for 03 9658 9658 9am to 5pm, Monday to Friday (Public holidays excluded) In person: Melbourne Town Hall - Administration Building 120 Swanston Street, Melbourne 7.30am to 5pm, Monday to Friday (Public holidays excluded) In writing: City of Melbourne GPO Box 1603 Melbourne VIC 3001 Australia Fax: 03 9654 4854

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