Parking fines and construction fees pump up Town Hall’s bottom line

PARKING fines in central Melbourne poured about $120,000 a day into council coffers last financial year. But it was revenue from the construction boom that lifted the council’s surplus to a bumper year.

PARKING fines in central Melbourne poured a record $44.3 million — or about $120,000 a day — into council coffers last financial year.

This was $3.6 million above Town Hall’s forecast and 13 per cent up on the previous year.

Coupled with revenue from the construction boom it lifted the council’s surplus to a bumper $4.5 million for 2017-18, a report has revealed.

Money raised through charges for things such as planning permits, tree removals, footpath closures and permits for hoardings brought in a record $22.7 million, about 32 per cent above budget.

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Deputy Lord Mayor Arron Wood. Picture: AAP

The parking fines windfall almost overtook revenue from parking fees, which reached $46.6 million for the year.

In May, Deputy Lord Mayor and finance chairman Cr Arron Wood announced a 27 per cent hike in CBD parking fees, which pushed the hourly rate up to $7.

“It hasn’t occurred for five years, so an increase is well and truly justified,’’ they said.

Town Hall’s otherwise rosy bottom line was hit by higher-than-expected contract payments. These included $5.2 million spent on agency staff to backfill positions.

Central Melbourne’s construction boom has bolstered the city’s coffers. Picture: Ian Currie

The money was largely spent on information technology contractors working on customer services, as well as on an increased demand for library, recreation and planning services, a City of Melbourne spokeswoman said.

“In some instances, it makes commercial sense to engage external consultants to meet short-term organisational requirements,’’ she said.

Waste services, street cleaning, security and park maintenance were also over-budget.

This was blamed on the City of Melbourne’s growing residential population, which is expected to exceed 155,000 this year.

Council’s $4.5 million underlying surplus was more than double the forecast $2 million, but well down on last year’s $13.1 million.

The high number of parking fines proved a double-edged sword: it also led to more money being spent on court lodgements and on enforcement fees, resulting in $6.5 million in bad debts.

Parking fines reaped in $46 million for the City of Melbourne last financial year.

The latest council report has also revealed that the city received $3.3 million from the state government for the implementation of public security measures following the attacks in Bourke St and Flinders St.

The money collected from the city’s ratepayers has fallen by 0.4 per cent.

The financial performance document, once approved, will be included in the City of Melbourne’s annual report, which is expected to be published next month.

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@IanRoyall