Transcript 10 year financial plan people`s panel

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 ($687.7M)
• Council: $91.4M cash, $187.7M
land
• Developers: $109.5M cash,
$299.1M land 15 year timeframe
STRUCTURE PLANS ($240M)
• 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
Options to close gap:
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 ($408.6M)
QVM RENEWAL ($250M)
• Subject to community
consultation
Developer Contributions ($55.2M)
NEW WORKS ($480M)
• Examples: Kathleen Syme,
bicycle lanes, climate adaptation,
return to Royal Park, Docklands
Library
RENEWAL WORKS ($1B)
• Examples: footpaths, parks,
drains, buildings, IT
F
$1.8 U
Billion N
D
E
D
Sale proceeds - QVM ($36M)
• Proposed land development
Parking Levy ($105M)
• Specific types of projects
Cash generated from operations ($1.2B)
• 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 $900M 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
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
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43 randomly selected Melburnians who were a descriptive match to CoM’s
demographic community
•
newDemocracy Foundation assisted with the methodology and recruitment
process and oversee the Panel assemblies
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Mix of business and community members (very few had participated in Council’s
work before)
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Six full Saturdays August - November
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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
Activate City
Advance Melbourne
Care for the older,
Events
vulnerable and people with
disabilities
Arts and Culture
Programs
Waste collection
Tourist services
Child care, maternal and
child health, family and
City Marketing
youth services
Urban planning and
design
Library services and
community centres
Design, build and manage
Assets
Regulate
New infrastructure
Building regulation
New parks and gardens
Car space
management
Sustainability initiatives
City Research
New buildings and
developments
Planning regulation
Business support and
development
Renewal and maintenance
of existing buildings
Food and public
health regulation
International
relationships
Renewal and maintenance
of infrastructure
Event regulation
Local Law regulation
Recreations services and
facilities
Renewal and maintenance
of parks and gardens.
City safety
Street and public place
cleaning
Community support groups
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
• Assets and revenue
• Asset management
• Strategies and plans
• Infrastructure planning
• Sustainability initiatives
• 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
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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
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Inform and education role ie today
Delivery function for future projects
Training role
Evaluation support
• ANY QUESTIONS