Melbourne carparking fee hike announced in City Council budget

MELBOURNE’S acting mayor has tried to justify the council jacking up street parking prices to $7 an hour by saying it tries to keep the rate “not far off the price of a pot of beer”. The average beer price is not even close.

JOHN MASANAUSKASCITY EDITOR

3 min read

May 15, 2018 - 12:30PM

Inner city carparking fees are expected to rise with the City of Melbourne’s budget to be released today. Picture: Jake Nowakowski

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MOTORISTS parking in the CBD will be hit with a 27 per cent fee hike, bringing the hourly rate to $7.

The jump from the current $5.50 an hour rate will help fill City of Melbourne coffers with an extra $6 million in parking fee revenue, according to the council’s 2018-19 budget released today.

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The council justified the fee hike by pointing to a loss of revenue due to a 22 per cent reduction in CBD parking spots as the number of state projects like Metro Tunnel ramp up.

It said the new hourly fee — the first increase since 2013 — was in line with Sydney prices.

Parking fees outside the CBD, which are typically $3.20 per hour, will go up a maximum of 80 cents.

Acting Lord Mayor Arron Wood said the parking fee hike was justified and he compared the new $7 cost of one-hour parking in the CBD to the price of a pot of beer.

“We don’t take these decisions lightly,” he said.

“It hasn’t occurred for five years, so an increase is well and truly justified. It brings us into line with Sydney, so we know the price is about right.”

Cr Wood said the council’s policy had generally been to keep the parking cost similar to the price of a beer.

“When we look at the cost of parking in the CBD it’s not far off the price of a pot of beer,” he said.

Australian Hotels Association CEO Paddy O’Sullivan said the Melbourne pub industry average was about $5.60 for a pot.

Asked if the council wanted to discourage cars from entering the CBD, Cr Wood said: “Our transport plan is about getting people on to mass transit.

“We’re looking at a city metro-wide growing to eight to 10 million people over the next years. With that signifcant growth you can’t rely on a single occupancy car to ensure that liveability.”

Total parking fee revenue is expected to be $52 million in 2018-19 — a 12.7 per cent rise on last year.

A further $42 million will be raised from parking fines.

City council ratepayers will face an average 2.25 per cent rates increase in line with the state government-imposed cap.

This will bring rates revenue to an estimated $287 million- up $14.3 million or 5.3 per cent.

The council is touting this as its biggest ever budget, with more than $576 million set aside for community services, initiatives and capital works projects.

This includes $22.7 million to create open space at Southbank Boulevard and Dodds St and almost $20 million for work on the Queen Victoria Market redevelopment project, such as design work for a new park on the main car park site.

Acting Lord Mayor Arron Wood said the budget delivered for the city’s growth and liveability.

“(It) delivers record investment on programs and services to keep Melburnians safe, ensure they have access to the best parks and gardens, clean streets, new community infrastructure...so vital for our economic growth and prosperity,” he said.

The council’s wages bill will rise by almost $6 million to $162.2 million in 2018-19.

An underlying surplus of $14.9 million is projected over the next year.

The budget details come as the winner of the lord mayoral race is expected to be known over the next few days.

The poll closed last Friday evening, but valid postal votes can still be received until midday this Friday.

More than 30 Victorian Electoral Commission staff will start opening ballot papers today in preparation for counting, and candidates can appoint a scrutineer to each officer.

While the winner will not be officially announced until Friday, it is expected scrutineers will be able to pick the result well before then.

Property Council executive Sally Capp is the frontrunner, with Greens candidate and sitting councillor Rohan Leppert also expected to do well.

ALP member and former Manningham mayor Jennifer Yang is an outside chance depending on preference flows.

john.masanauskas@news.com.au