Docklands keeps giving to city

The City of Melbourne made almost $4 million profit from Docklands over the last financial year.

According to the Docklands Finance and Infrastructure Plan 2013-14 presented to the Docklands Co-ordination Committee last month, council’s Docklands surplus was $5.9 million, a variance of almost $5.5 million against the budget.

However, the report also stated that an estimated $2 million worth of indirect costs and corporate overheads had not been included, leading to an understatement of overall Docklands expenditure and an overstatement in the surplus.

The $5.5 million variance was down to higher revenue and lower costs than anticipated.

Council had budgeted for a total revenue of more than $23.3 million but ended up making $24 million.

It had estimated expenses of $14.3 million but only spent $13.4 million.

The almost $1 million variance was put down to lower expenditure on community services due to the timing of the library opening, lower expenditure on engineering services due to lower than anticipated electricity costs and lower expenditure on urban design due to lower than anticipated employee costs.

Council also spent almost $4 million less on new capital than it had budgeted for, spending $8.33 million against a budget of $12.10 million.

Delays with the community services and boating hub, Waterfront City Marina Renewal and landscaping work at the Jim Stynes Bridge meant budgeted funds were unspent and have been carried over to the current financial year.

The Docklands Co-ordination Committee was also presented with a five-year finance and infrastructure plan, which revealed council plans to make more than $73 million from Docklands by the end of the 2019 financial year.

However, this figure doesn’t take into account capital investments council will make in Docklands, which are subject to annual budgets and will reduce the surplus figure.

The most recent Docklands Co-ordination Committee meeting is likely to be the last, with a request for legislative changes to dismantle the committee currently progressing through Parliament.