Back in 1990 Melbourne City Council took on a mission to make the City debt free. In October this year, it achieved that aim, and believes it is the first Capital City in Australia to do so.
Owing $102 million just six years ago, Council has managed to not only eliminate this debt, but also reduce rates and maintain investment in major City projects.
The temptation to take the easy road and wipe out the debt with the dividends from the sale of one of the City’s major financial assets, Citipower, was avoided. The $206 million from that sale has been allocated to various major capital works projects, as well as Council’s current bid for control of Melbourne Airport, which will yield commercial rates of return.
The decision to eliminate debt was initially made by the elected Council. It was continued by Commissioners appointed in 1994, who established a debt elimination policy and followed through to fruition by the recently elected Council.
“The City’s debt free status is a tribute to the City of Melbourne’s economic management and sound business principles,” said Lord Mayor Ivan Deveson.
He said that Councillors, Commissioners and management at Melbourne all made a concerted effort to achieve this remarkable outcome. It has come about as a result of increasing the overall efficiency of operations, reducing operating costs, implementing the City’s Competitive Business Strategy and bringing about continual improvement of systems, work practices and customer focus.
For further information contact Scott Darkin, telephone (03) 9658 9740.
