10 YEAR FINANCIAL PLAN PEOPLE S PANEL The

10 YEAR FINANCIAL PLAN PEOPLE’S PANEL

The Authorising Environment The City of Melbourne aspires to be the most open and transparent in Australia.

Financial Strength 12 June 2013 S&P Definition ‘AAA’—Extremely strong capacity to meet financial commitments. Highest Rating. S&P Definition ‘AA’—Very strong capacity to meet financial commitments.

SUPPLY / OPTIONS DEMAND OPEN SPACE ($687. 7 M) • Council: $91. 4 M cash, $187. 7 M land • Developers: $109. 5 M cash, $299. 1 M land 15 year timeframe STRUCTURE PLANS ($240 M) • City North (10. 61%) • Southbank (18. 46%) • Arden Macaulay (31. 62%) 15 year time frame U N F $0. 9 U Billion N D E D • Subject to community consultation • Examples: Kathleen Syme, bicycle lanes, climate adaptation, return to Royal Park, Docklands Library RENEWAL WORKS ($1 B) • Examples: footpaths, parks, drains, buildings, IT 1. 2. 3. 4. 5. Generate more cash from operations • Higher revenue / lower cost Assets sales / swaps Borrowings Innovation • E. g. productivity, land configuration, etc. External capital contributions Open Space Contributions ($408. 6 M) QVM RENEWAL ($250 M) NEW WORKS ($480 M) Options to close gap: F $1. 8 U Billion N D E D Developer Contributions ($55. 2 M) Sale proceeds - QVM ($36 M) • Proposed land development Parking Levy ($105 M) • Specific types of projects Cash generated from operations ($1. 2 B) • Underlying surplus + depreciation

The drivers Economic uncertainty Rapid population growth Urban Renewal Climate change impact Technology disruption

The issue ‘How can we remain one of the most liveable cities in the world whilst addressing our future financial challenges? ’ More specifically…. . ‘What should our spending/revenue priorities look like if we are to avoid a $900 M shortfall? ’

What did we do? We embarked on our most comprehensive community engagement process to date…. .

Random stratified sample approach “people like me” • Randomly drawn sample from our databases • Randomly selected households • Stratified by location and selected criteria to encourage representation of the community: – Business 50% • Size (by number employees) • CBD / non-CBD – Residents and Students 50% • Age, gender • Small areas

The Citizen’s Jury (People’s Panel)

July-Aug 2014 Online budget simulator Workshops Discussion groups Mobile popups across the municipality Engagement reports to People’s Panel finalise recommendations to Council Panel meet 6 times Aug-Nov November Council responds to panel We are here 10 -Year Financial Plan developed Council endorses 10 -Year Financial Plan 2015

People’s Panel – a deliberative process • 43 randomly selected Melburnians who were a descriptive match to Co. M’s demographic community • new. Democracy Foundation assisted with the methodology and recruitment process and oversee the Panel assemblies • Mix of business and community members (very few had participated in Council’s work before) • Six full Saturdays August - November • The Panel were in charge of their learning and deliberation (call experts such as Bernard Salt, planners, climate change etc. ) • Tasked with developing recommendations to Council on its spending and revenue priorities for the next 10 years.

Lots to take in: service streams Deliver Community Services Care for the older, vulnerable and people with disabilities Waste collection Child care, maternal and child health, family and youth services Library services and community centres Recreations services and facilities City safety Community support groups Activate City Events Arts and Culture Programs Tourist services City Marketing Advance Melbourne Urban planning and design Sustainability initiatives City Research Business support and development International relationships Design, build and manage Assets New infrastructure New parks and gardens New buildings and developments Renewal and maintenance of existing buildings Renewal and maintenance of infrastructure Renewal and maintenance of parks and gardens. Street and public place cleaning Regulate Building regulation Car space management Planning regulation Food and public health regulation Event regulation Local Law regulation

To help build understanding…. The Panel requested expert opinion on The Panel requested information on • Climate change impact • Rates modelling • Demographic profile • Condition rating • Population growth impact • Community service roles and responsibilities • Planning for the city of the future • Asset management • Infrastructure planning • Sustainability initiatives • Assets and revenue • Strategies and plans • Developer contribution opportunities and constraints

What happened? • Panel made 11 recommendations to Council • Council agreed to give thorough consideration to all recommendations and make a formal response to Panel. • Council is incorporating recommendations into 10 year financial plan – expected by June 30. • Council will implement initial budget changes in 2015/16 • Already influential: rate rise, developer contributions, Citywide, property portfolio, solar, car parking etc

Lots of Media Coverage

The future for Local Government • • Greater transparency Easy access to information Involvement of citizens in collaborative problem solving Robust community engagement Deliberative processes with deep dive Popular with community – creates a mandate Challenge to keep cost of projects down

Potential role for the MAV – deliberative democracy • • Inform and education role ie today Delivery function for future projects Training role Evaluation support • ANY QUESTIONS