City of Melbourne staff told to cut costs, despite “year of delivery” pledge

City of Melbourne vowed 2024 would be a “year of delivery” on a range of unfulfilled promises — though looming budget cuts would suggest otherwise.

City of Melbourne staff claim they’re being asked to cut costs, despite the council’s pledge 2024 would be a “year of delivery”. Picture: Luis Enrique Ascui

Cuts are expected to be part of this year’s City of Melbourne budget, despite 2024 being billed as the “year of delivery” on a range of unfulfilled promises.

Town Hall sources said senior managers were being asked to find savings of several per cent in their respective areas.

It is understood councillors will start to receive budget briefings from next month before the document is put out for public consultation – a requirement under the Local Government Act – in May.

However, the drive for savings comes at the same time as the council is promising to start delivering on major projects and promises such as Lord Mayor Sally Capp’s pet project, the $316m Greenline, and improving city cleanliness with a new multi-year contract.

“I’m not sure how the CEO expects us to deliver on major commitments while finding savings across the board,” a senior Town Hall source said.

“We’ve very publicly promised 2024 is the year of delivery and we’re now desperately trying to balance making budget cuts and delivering projects that have languished for years.”

The Herald Sun put several questions to the City of Melbourne about the scale of any potential budget cuts, the risk of job losses and when the organisation would return to surplus.

The 2023-24 City of Melbourne budget included a $17.5m deficit and predicted a return to surplus in the 2025-26 financial year.

Greenline is Lord Mayor Sally Capp’s $316m pet project.

The state government’s grant funding to reboot the CBD post-Covid is also expected to be largely spent, eroding the council’s bottom line further.

Council Watch president Dean Hurlston said City of Melbourne should make cuts and reduce waste within Town Hall.

“What we know is that the City of Melbourne is over staffed, inefficient and full of fat cat bureaucrats,” he said.

“What needs to happen in order to deliver high quality services and improve the city, is Town Hall must shed significant waste and funnel those resources into tangible improvements in the CBD.

“Ratepayers within the City of Melbourne, particularly those in business, are struggling more than ever.”

Mr Hurlston also savaged the Lord Mayor’s financial record for time in the role.

“Capp’s legacy is debt and deficit and the destruction of what was great about the Melbourne CBD,” he said.

“The City of Melbourne needs new leadership that can restore confidence – sadly that is not Sally Capp.

“I urge all councillors to seriously reconsider what they have delivered for the community and businesses in the City of Melbourne.”

Victorian Chamber of Commerce and Industry Acting Chief Executive Chanelle Pearson said Town Hall needed to refocus and address key concerns from local businesses.

“The Victorian Chamber has consistently advocated for the City of Melbourne to prioritise improving amenity, accessibility and safety to cultivate a thriving and welcoming business environment,” she said.

“Back to basics is what business is asking for.”

A City of Melbourne spokeswoman did not answer any of the supplied questions.