1. 10 YEAR FINANCIAL PLAN PEOPLE’S PANEL

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

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

4. DEMAND SUPPLY / OPTIONS 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 NEW WORKS ($480M) Examples: Kathleen Syme, bicycle lanes, climate adaptation, return to Royal Park, Docklands Library Cash generated from operations ($1.2B) Underlying surplus + depreciation Parking Levy ($105M) Specific types of projects Sale proceeds - QVM ($36M) Proposed land development Developer Contributions ($55.2M) Open Space Contributions ($408.6M) Options to close gap: 1.Generate more cash from operations Higher revenue / lower cost 2.Assets sales / swaps 3.Borrowings 4.Innovation E.g. productivity, land configuration, etc. 5.External capital contributions FUNDEDFUNDED UNFUNDEDUNFUNDED $0.9 Billion $1.8 Billion QVM RENEWAL ($250M) Subject to community consultation RENEWAL WORKS ($1B) Examples: footpaths, parks, drains, buildings, IT

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

6. 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?’

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

8. 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

9. The Citizen’s Jury (People’s Panel)

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

13. People’s Panel – a deliberative process 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 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.

14. Lots to take in: service streams Deliver Community Services Activate CityAdvance Melbourne Design, build and manage Assets Regulate 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 Events Arts and Culture Programs Tourist services City Marketing Urban planning and design Sustainability initiatives City Research Business support and development International relationships 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 Building regulation Car space management Planning regulation Food and public health regulation Event regulation Local Law regulation

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

16. 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

17. Lots of Media Coverage

18. 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

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