The Melbourne City Council has been forced to refund more than $3.2m in parking fines because of an administrative error. It turns out that Council staff who issued infringements over a two year period were not technically authorised to do so. The un-budgeted expense (the refunds) will come from the Councils operating surplus and this is where QVM comes in.
The Melbourne City Council had decided to distribute any surplus from its operations to the QVM Renewal project. Essentially, what is left over at the end of the year goes to QVM funding. The $3.2m could have gone to the QVM project but now it won’t. According to the Lord Mayor, the surplus is a component of the overall funding but not a specific budgeted item, so it will not impact on the project.
Hopefully, that all makes sense. It is a bit like saving up for a holiday at the end of the year and then finding the kids need expensive dental work - not good either way.
POSTSCRIPT: - Our CEO has confirmed that this year’s expenditure plans won’t be adversely affected in any way and the CoM has released the following statement in relation to QVM funding -
Have Your Say – click here.
The Melbourne City Council had decided to distribute any surplus from its operations to the QVM Renewal project. Essentially, what is left over at the end of the year goes to QVM funding. The $3.2m could have gone to the QVM project but now it won’t. According to the Lord Mayor, the surplus is a component of the overall funding but not a specific budgeted item, so it will not impact on the project.
Hopefully, that all makes sense. It is a bit like saving up for a holiday at the end of the year and then finding the kids need expensive dental work - not good either way.
POSTSCRIPT: - Our CEO has confirmed that this year’s expenditure plans won’t be adversely affected in any way and the CoM has released the following statement in relation to QVM funding -
"In
May 2014, Melbourne City Council committed to putting any underlying
surplus from 2013-14 into a Queen Victoria Market Renewal Fund. This
week, Council also voted unanimously
to establish a trust to manage these funds. By establishing a trust
Council has ensured this money is quarantined from other Council
accounts. It is a clear demonstration of our commitment to the market
renewal.
You may have seen media reports this week indicating that
the
City of Melbourne has decided to refund and withdraw a large number of
parking fines due to an administrative error. Some media reported that
the $3.2 million it will cost Council to refund
and withdraw the parking fines was money that was expected to be
invested in the Queen Victoria Market Renewal Fund.
While
this is correct, it does not in any way impact upon the longer term
vision for and commitment to the renewal of the market.
Factoring
in the $3.2 million cost to refund and withdraw the 34,800 parking
infringements, the revised estimated underlying surplus for 2013-14 is
$1.2 million. The $1.2 million
will be invested in the Queen Victoria Market Renewal Fund.
While
City of Melbourne will not be able to make the contribution to the
Queen Victoria Market Renewal Fund it had hoped this financial year, it
is important to remember that this
is the first year of a long-term project to which the City of Melbourne
is completely committed.
The
renewal of the market remains a key Council priority. Despite the
budget impact of this administrative error, the City of Melbourne
remains in a strong financial position and
is committed to progressing the renewal project without delay. This
includes the release of a draft master plan by year’s end."
Have Your Say – click here.