The City of Melbourne continues to provide high-quality services and facilities to our community. We remain debt free – with a AAA credit rating from Standard & Poor’s – and our 2008–09 investments in systems and staff are set to benefit the organisation well into the future.

A year of transition and planning for the future
The financial year began with the reunification of Kensington and North Melbourne (parts of which were in Moonee Valley) under Melbourne’s municipal boundary, adding 1.1km2 to our city.

A milestone was reached in September 2008 with the adoption of the award-winning Future Melbourne Community Plan. The new Melbourne City Council, sworn in on 4 December 2008, embraced Future Melbourne as the basis of its Council Plan 2009–2013. The many roles of the council are reflected in the plan’s objectives and the priority areas of activity in the 2009–10 Annual Plan and Budget.

Delivering services to the community
Three of the five key strategic activities of our 2008–09 Annual Plan and Budget were completed during the year. Our business and international strategy is in place, affordable housing commitments are met and our organisational improvements have been made.

The remaining two key strategic activities were substantially completed by year’s end: the timeframe for delivering the Office of Knowledge Capital’s strategic plan was unavoidably extended, and interim protection measures for parks were put in place while our events policy is revised in 2009.

Significantly, the council adopted the Docklands Waterways Strategic Plan 2008–2018. Developed with our partner agencies VicUrban and Parks Victoria, the plan will ensure outstanding, quality development on Melbourne’s waterfront over the next decade.

Recommendations from the 2007 Ernst & Young review of the organisation continue to be implemented. In 2008–09 we made a significant investment in our assets and financial systems and began our journey toward a Lean Thinking culture that will result in cost savings and the continual improvement of our services. The Lean Thinking operating system was first introduced by Toyota to improve quality and efficiency in the manufacture of motor cars. It has since been applied to a range of service industries and has much to offer the City of Melbourne as we continue to review and improve our processes and services.

Sustaining the organisation
Pleasingly, staff turnover decreased again in 2008–09. Our new attraction and retention framework, an important recommendation of the Ernst & Young review, provides opportunities for every person in the organisation to develop professionally and understand how their work fits into the bigger picture.

Sustainability is an inherent and crucial part of our work. The launch of our CoM Green program taps into staff enthusiasm for sustainability, with practical measures such as greener information technology. Measures to reduce our power and water use have cut water consumption by half in the past decade and our 2008–09 investments in drought proofing will continue to pay off into the future.

In 2008–09 we have once again reported against the Global Reporting Initiative. We have also reported against our series of strategic indicators, including Victorian local government indicators.

Toward 2009–10
I welcome the new council and leadership team and look forward to implementing Council Plan 2009–2013 as we work towards the community’s Future Melbourne vision. I thank my directors and the organisation’s management and staff for their quality outcomes and continuing commitment to a bold, inspirational and sustainable city.