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15 December 2000 Version 2.2 Further Information Peter Mondy City Strategy Tel: 9205 5086

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15 December 2000

Version 2.2

Further Information

Peter MondyCity StrategyTel: 9205 5086

Our Future 2010 Context Statement 22/01/01 9:15 2

Disclaimer

Any representation, statement, opinion or advice expressed or implied in this publication ismade in good faith and no liability (whether by reason of negligence, lack of care orotherwise) is accepted by the City of Yarra or by any of its agent or employees. Noresponsibility for any damage or loss whatsoever, which has occurred or may occur in relationto taking action in respect of any representation, statement or advice referred to above isaccepted by the City of Yarra or by any of its agent or employees. The author reserves theright to revise and publish figures without notice.

Percentage Calculations

Some figures in this publication have been rounded and consequently minor discrepanciesmay occur in totals.

© Copyright 2001

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A Table of Contents

Introduction ............................................................................................................ 5A Changing World.................................................................................................. 5Recognizing the Limitations ................................................................................ 5The City Vision Project........................................................................................... 5A Profile of Yarra.................................................................................................... 6

A Summary of the Key Demographic Characteristics of Yarra ............................... 7The People......................................................................................................... 8How They Live.................................................................................................... 8How They Travel ................................................................................................ 9What Industries are in Yarra? ............................................................................. 9

The Metropolitan Policy Framework. .................................................................... 10Key Themes of the Strategy ............................................................................. 10Yarra's Response to the Metropolitan Strategy................................................. 10

The Existing Yarra Policy Framework .................................................................. 11The City Plan Context....................................................................................... 11The Municipal Strategic Statement (MSS) ........................................................ 12Our Sustainable Future: Yarra's Environment Strategy 2000............................ 13The Yarra Public Health Plan ........................................................................... 14Some Other Significant Policies & Strategies. .................................................. 14

The Role of Local Government ............................................................................ 16

The Functions of Councils.................................................................................... 17General Public Services ................................................................................... 17Health, Education, Welfare, and other Community Services............................. 17Planning and Land Use & Property Services ................................................... 17Recreational and Cultural Services................................................................... 17Roads............................................................................................................... 17Other Functions................................................................................................ 17

The City of Yarra Council ..................................................................................... 18The Elected Council ......................................................................................... 18Council Committees ......................................................................................... 18The Administration............................................................................................ 18A Profile of Yarra Services................................................................................ 18

Services & Programs & the 2000/01 Operating Budget........................................ 19Enhancing the Look and Feel of the City .......................................................... 19Living Together................................................................................................. 19Serving you Better ............................................................................................ 19Creating a Voice............................................................................................... 19Learning Leisure & Having Fun ........................................................................ 20Caring for Our Environment.............................................................................. 20Building Economic Strength.............................................................................. 20Managing Our Organisation.............................................................................. 20

Yarra's 10 Year Financial Strategy....................................................................... 21Operating Statement ........................................................................................ 21Balance Sheet .................................................................................................. 21Statement of Cash flows................................................................................... 21

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Yarra's Commitment to Best Value ...................................................................... 22The Local Government (Best Value Principles) Act 1999 ..................................... 22Best Value for the Community.............................................................................. 23Integrating Best Value - A Yarra Model ................................................................ 24Organisational Structure ...................................................................................... 25The City Vision: Yarra 2010 ................................................................................. 26City Plan .............................................................................................................. 26Best Value & Triple Bottom line Reporting ........................................................... 27An Introduction to the Key Strategic Trends & Issues .......................................... 27

Society: Key Issues & Future Trends....................................................................... 28Recent Trends in Victoria's Population................................................................. 28Yarra's Population Growth ................................................................................... 29Age Structure....................................................................................................... 30Mobility................................................................................................................. 30Ethnicity ............................................................................................................... 31Income................................................................................................................. 32Education............................................................................................................. 33Family Types & Households................................................................................. 34From a Doughnut City to Café Society ................................................................. 34Dwelling Structure................................................................................................ 35Drug Issues in the City of Yarra ........................................................................... 36Public Housing Issues.......................................................................................... 36

The New Economy: Key Issues & Future Trends .................................................... 37The New Economy............................................................................................... 37Some Characteristics of the New Economy ......................................................... 37Knowledge Industries........................................................................................... 37The Intersection of Telecommunications and Computing ..................................... 37Growth in Outsourcing ......................................................................................... 37Trends in New Economy Employment ................................................................. 38Spatial Aspects .................................................................................................... 38New Types of Workers......................................................................................... 38A Profile of a New Economy Industry: Cafes & Restaurants ................................ 39Arts & Culture: The Cultural Dimension................................................................ 41

Technology: Key Issues and Future Trends............................................................. 42Technology & its Impact on Yarra ........................................................................ 42The Internet & Telecommunications..................................................................... 43Information Technology & Intelligent Systems...................................................... 44

Environment: Key Issues & Future Trends .............................................................. 46Environmental Management ................................................................................ 46Natural Resource Management ........................................................................... 47Energy ................................................................................................................. 48Air Quality ............................................................................................................ 48Transport and Access .......................................................................................... 50Sustainable Buildings and Urban Form ................................................................ 52Biodiversity and Natural Heritage......................................................................... 53Indigenous Land Management............................................................................. 55

Some Principles to Guide the Future of Yarra.......................................................... 56A Commitment to a Sustainable Future................................................................ 56Towards a Sustainable Future ............................................................................. 56

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Introduction

The 21st century promises to be a challenging time for the people of Yarra. Manytechnological and social changes, like those occurring in the new economy and withinformation technology will revolutionise our lives - for better or worse. Otherchanges such as those resulting from continued global warming and the accelerateddeterioration of the natural environment are real causes for concern.

A Changing World

The Yarra of today is very different from the Yarra inhabited by the indigenous peoplewho lived here before European settlement. Change has occurred in technology, thenatural environment, the nature of Australian society and its institutions and thethinking of people in general. Yarra recognises that change will always be a part ofliving in a complex modern society.

Recognizing the Limitations

There are limitations to what any vision can achieve. Yarra today is the product ofmany direct & indirect historical forces. The legacy of this past will always stronglyinfluence the future of Yarra. Some past decisions, such as those concerning theremoval of Yarra's native vegetation are unchangeable in the medium term. Yarra'sfuture vision must accept and work with the reality of the past.

The elected Council can and does influence the future. However, sometimescircumstances are beyond anyone's direct control. The future is by its natureinherently unpredictable and policy makers will never have all the information theyneed to develop complete plans that take into account all the relevant factors.

A vision statement may never capture and respond to all issues, but if it capturesonly a few it can help the community to grow in a worthwhile direction. It is in thisspirit that Yarra welcomes the opportunity to develop a vision. A vision that Yarrabelieves can positively contribute to Yarra's greater well being.

The City Vision Project

The aim of the City Vision project is to help Yarra make an informed choice abouthow to influence its future both as a community and as a local governmentorganisation. This is what Yarra means by its vision.

The core goals are therefore:

• To identify the important universal issues.• To collate the relevant data and community views on the issues.• To identify gaps and develop strategies to collect information• To propose an organisational framework for achieving the vision• To build on past approaches and confirm or determine the key commitment areas

required to achieve the vision.

This context statement provides Yarra with information about some trends and issuesbut it is not the vision. It is a stepping stone toward providing the community withsome of the information it needs to plan its future.

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A Profile of Yarra

The City of Yarra comprises 19.5 square kilometres of inner Melbourne immediatelyNorth-East of the Central Business District. It includes the suburbs of Abbotsford,Burnley, Clifton Hill, Collingwood, Fitzroy, North Carlton, North Fitzroy, Richmond,and the southern portion of Alphington.

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A Summary of the Key Demographic Characteristics of Yarra

� … Densely populated, with 3,533 persons/km2. This density is the thirdhighest in the area of Metropolitan Melbourne, after Port Phillip and Stonnington.

� … Young population. Nearly 40% of residents are 20-34 years old.

� … Culturally diverse community. 30% of residents are from non-Englishspeaking background, with the main countries of origin including Vietnam,Greece, Italy and Indonesia.

� … High proportion of lone person and group households. These householdsaccount for nearly 50% of the municipality’s households.

� … Large low-income group and a growing high income group. 20% of thehouseholds earn less than $300 per week, while 15% earn $1,500 or more.

� … Significant student population. 13% of residents are attending university orother tertiary institutions.

� … High proportion of residents employed in public and communityservices. 31% of residents work in health, community, cultural and recreationservices, education or government administration.

� … Most adults are not married. 50% of the population aged 15 years and oldernever married and 17% are separated, divorced or widowed.

� … High proportion of non-religious residents. 29% of the population statedthat they had no religious denomination.

� … Lower level of car ownership. 24% of households do not own a car.

� … Significant proportion of public transport use to travel to work. 20% ofresidents use trains, trams, buses or public transport combined with othermethods to go to work.

� … Most residents are tenants. More than 12% of households live in publichousing and 39% in private rental accommodation.

� … Most occupied dwellings are terrace houses. 41% of households live interrace and other semi-detached houses.

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The People

In June 1999, Yarra had an estimated resident population of 68,900 people. TheVictorian Department of Infrastructure (DoI) forecast that Yarra's population willcontinue to grow by less than 1% per year and will slow further after 2005. 1

Yarra’s population is ethnically diverse. Approximately 30 per cent of the residentialpopulation are from non-English speaking backgrounds, with main countries of originincluding Vietnam, Greece, Italy and Indonesia.

The age structure of Yarra’s population is also distinctive. It contains a highproportion of persons in the 18 - 34 year age groups (42%, compared with 28% forMetropolitan Melbourne (MSD), but few in the 0-17 year age groups.

The above is reflected in the low proportion of traditional nuclear family households inthe City, which make up only 17.8% of households compared with 38.1% for theMSD. Yarra has similar proportions of people in older age groups (60 plus) whencompared with the metropolitan Melbourne area.

How They Live

More than one third of the population live in lone person households. This situation,coupled with the low proportion of family households means that the averagehousehold size in Yarra is low: 2.21 residents per dwelling compared to 2.69 inmetropolitan Melbourne (MSD).

While the proportion of one-parent families and couples without children are similar tothe metropolitan Melbourne (MSD), there is a significantly higher percentage of grouphouseholds (14.7% compared to 4.4% in the (MSD)), reflecting the living conditionsof tertiary students.

Within Yarra, there is a growing polarisation between those households with highincome and low incomes. In 1996, over 35% of households had an income below$500 per week compared with 32% for metropolitan Melbourne (MSD), whilst 15%had a weekly gross income more than $1,500 compared with 12% for metropolitanMelbourne (MSD).

Compared to metropolitan Melbourne (MSD), fewer households in Yarra own or arepurchasing their home, with majority renting their homes. Yarra also has a highproportion of its population (12.6 % of all residents) living in public housing.

Persons living in detached houses represent a small 25% of Yarra’s dwelling stock,compared with the metropolitan average of 82%, with the most abundant housingtypes being semi-detached / terrace houses (41%) and flats / apartments (30%).

The ‘gentrification’ process is also reflected in Yarra’s high qualification profile, aswell as the relatively high proportion of students. Nearly twice as many residentsthan in the MSD attend tertiary institutions or have a higher degree, postgraduatediploma or university degree.

1 Department of Infrastructure 2000, ‘Victoria in Future – Overview: the Victorian Government’sPopulation Projections 1996-2001’, Department of Infrastructure, Melbourne, Victoria, pp.11, 104.

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How They Travel

One positive consequence of Yarra’s central location is its access to establishedpublic transport networks (trams, trains, and buses), with some of the principal roadsbeing also major tram and bus routes. This has led to a significantly higherproportion of employed Yarra residents travelling to work by public transport, bicycleor foot.

Household size and composition are two important variables. Families with children,for example, have a significantly higher proportion of two or three car ownershipcompared with the Yarra average, while lone person households have a significantlyhigher proportion of no car owner ship.

Car ownership is not equally distributed in the municipality. There are alsodifferences in car ownership rates between geographical areas. A comparison of thetwo Australian Bureau of Statistics (ABS) Statistical Local Areas of Yarra-South(Richmond) and Yarra-North, for example, reveals that Yarra-South has asignificantly higher proportion of households with no cars and consequentlysignificantly fewer households with one or two vehicles. Based on current trends, it isanticipated that total car ownership will continue to increase in the City of Yarra.

What Industries are in Yarra?

The City of Yarra has a diverse range of businesses operating in the municipality.These include those in the commercial services, retailing/wholesaling, communityservices, manufacturing, other services and activities and hospitality servicessectors.

Commercial services are the dominant business type in Yarra, accounting for 32% ofall businesses. Commercial services include business, personal and propertyservices. There has been significant business development in the City over the pastfew years. From 1994-1998, approximately 2,800 businesses and 16,000 additionaljobs emerged. Many of these new businesses were in the commercial servicesindustry group, which expanded by over 90% over the period.

Significant growth was also experienced in the community services and governmentsector and the retailing and wholesaling industry group. The strong overall growth inthe retailing and wholesaling industry was, however, due to the growth in the retailingsector but not in the wholesaling industry which recorded a 7% loss of employmentover the period.

The following table summarises the nature of Yarra's industry.

Industry Group No. of Businesses % of Total

Commercial services 2,550 32%Retailing/Wholesaling 2,260 28%Community services 1,270 16%Manufacturing 800 10%Other services and activities 700 9%Hospitality services 460 6%TOTAL 8,000 100%

Source: Ratio Consultants (2000) Industrial and Business Activity: Part A Trendsand Opportunities Analysis, Ratio Consultants

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The Metropolitan Policy Framework.

A critical policy framework influencing the future of all metropolitan municipalities likeYarra is the Victorian Metropolitan Strategy.

The strategy is one of a number of initiatives of the Brack's Government that willshape the future direction of Melbourne and Victoria. The strategy (currently underdevelopment) will concentrate on the ways in which land use management andtransport can best support the economic, social and environmental needs ofMelbourne.

The Strategy's main focus will be on metropolitan Melbourne and its immediatesurrounds. However, the development of Melbourne and the whole of Victoria arefundamentally linked, so the relationship between the two will be an importantconsideration of the strategy.

Key Themes of the Strategy

The Strategy identifies the following themes as significant to the future of Melbourne:

• Melbourne's Economic Place in the World.

• The Melbourne of Tomorrow - Key Demographic & Social changes

• Melbourne's Settlement - Housing & Urban Consolidation

• Melbourne at Work

• Melbourne at Play

• Respecting the Environment

• Travel & Transport

• Managing Urban Infrastructure

• Public Consultation

Yarra's Response to the Metropolitan Strategy

This Context Statement incorporates many of the important issues identified by theMetropolitan Strategy and tries to interpret their impact for a local level.

Many of the 'big picture' issues and themes identified by the Metropolitan Strategywill have only a marginal direct impact on the future of Yarra. However, it is vital thatYarra ensure that the Victorian government is made aware of the issues that do havean impact on Yarra's future.

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The Existing Yarra Policy Framework

The Council recognises that Yarra already has developed a range of strategies thattogether comprise a strong policy environment for the organisation. Some policiesare legally required under specific pieces of government legislation such the PlanningAct and the Health Act and others are discretionary such as the EnvironmentStrategy or the Multicultural Action Plan.

The City Plan Context

Yarra's key integrating policy document is the City of Yarra City Plan. The City Planexplains how Yarra will implement its the shared vision. It establishes a clearprogram for the coming years, builds on the community’s current strengths andestablishes new initiatives for a better future. Some of the new initiatives includeplanting more trees and improving car parking.

The Plan outlines the commitment to good local government, responsible financialmanagement and the delivery of community focussed services that meet the needsof both residents and businesses. The challenge for Yarra is to build on the vibrantand diverse character of the City of Yarra and its community. City Plan links togetherthe existing policies of Council on a range of issues and explains to our citizens howthe various proposed activities of the whole of Council will be completed and bywhen. The key themes and objectives of the existing 2001/03 City Plan are:

• living togetherTo improve the quality of life in Yarra

• enhancing the look and feel of the cityTo care for the City’s infrastructure, protect community amenity and ensuredevelopment is responsive to the character of the City

• serving you betterTo improve our services to you

• creating a voiceTo provide good governance and effective representation

• learning, leisure and having funTo provide and promote access to educational, cultural and recreationalopportunities

• caring for our environmentTo enhance and protect the natural environment

• building economic strengthTo support a strong local economy that provides a diverse range of employmentopportunities for local residents

• managing our organisationTo improve internal services and resources for the organisation

Each of the above objectives is tied to a program of key strategies and programs forimplementation over the next three or more years.

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The Municipal Strategic Statement (MSS)

Another key policy that the City of Yarra has developed is a local comprehensiveland use plan to provide direction for the city. The plan known as the municipalstrategic statement (MSS) for the City of Yarra was completed in May of 1999. It isan important part of the planning system. It details the strategic planning frameworkfor the city that includes the context and rationale for many statutory controls.

The municipal strategic statement (MSS) for the City of Yarra sets the context anddirection for the overall policy framework. The main issues identified by the MSS are:

• Maintaining diversity and identity through continuing to meet varied communityneeds in terms of services, employment and housing.

• Ensuring access to local opportunities for employment.

• Supporting residential development while addressing population decline.

• Maintaining sufficient land for relevant industrial activity.

• Managing the blurring distinction between many industrial and commercialactivities and their spatial separation requirements.

• Responding to changes in the nature of retailing and retail activity.

• Managing the impact of development on the urban environment and physicalinfrastructure.

• Facilitating urban renewal and ensuring sustainable development.

• Managing open space and balancing demands for access to the Yarra Rivercorridor.

• Protecting significant historic sites and areas of cultural significance.

• Protecting residential amenity and managing the urban transport network.

• Protecting remnant native flora, fauna and native habitat.

• Managing the impact of urban pollution and especially storm water runoff.

• Promoting high quality design.

• Planning and developing the social, cultural and physical infrastructure of thecommunity.

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Our Sustainable Future: Yarra's Environment Strategy 2000

Another significant policy is Yarra's newly adopted Environment Strategy. TheEnvironment Strategy 2000 assesses the environmental management issues facingthe City of Yarra community and how the Council needs to respond. It was adoptedby Council as policy in November 2000.

The Strategy sets out a clear framework of objectives and actions for achievingecological sustainability set within the context of a ‘working with others’ approach toimplementation. It is founded on a set of ecological values called ‘Yarra’sEnvironmental Charter’. These address the ecological, social, cultural and economicaspects of sustainability.

The first is ‘a commitment to working with the community and all levels ofgovernment to help achieve sustainability’. Other principles in the Charter relate tothe protection of the environment, recognition of the dependence of society on thenatural environment, a commitment to reverse adverse environmental trends,recognition of the right of other species to share the environment and social justice.

The Charter underpins the Strategy and will guide the management of theenvironment within the municipality. Partnerships between the Council and otherstakeholders form the basis for implementing the Strategy.

The Environment Strategy outlines objectives and actions that are divided betweenthe following chapters:

� Environmental Management;� Sustainable Resource Use;� Energy;� Air Quality;� Transport and Access;� Sustainable Buildings and Urban Form;� Biodiversity and Natural Heritage; and� Indigenous Land Management.

Each chapter explores current issues and work being undertaken by Yarra, outlinespotential levels of sustainability expressed as objectives and lists actions required forachieving these objectives. Some chapters also include quantitative targets.

The actions in the Strategy range from public education and consciousness raisingprograms to data collection, participation in forums, the development of new Councilpolicies and physical infrastructure improvements. There is also a significant focuson the City of Yarra as an organisation becoming more aware and reducing its ownimpact on the environment.

The Council has an important role to play leading and supporting the community toachieve a more sustainable future. The City of Yarra Environment Strategy 2000provides the vehicle for determining and delivering this role.

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The Yarra Public Health Plan

The Public Health Plan was adopted by Council in December 1998 and provides aframework for addressing public health issues, both existing and emerging, that havebeen identified through population based health planning.

The three year Plan is one of several plans that support the overall municipal effort inimproving the health of the community. It recognises that an improvement in healthstatus requires the co-operation and collaboration of all agencies and organisations –working together with the community. It also acknowledges that health status isdetermined by social and physical environments, biology, lifestyle and access toappropriate health care services.

The main strategy areas identified within the Plan are:

Planning for a Healthy Community

• Improvement in local area public health information and planning throughdevelopment of health indicators, access to data, distribution of information andservice mapping;

• Enhanced co-ordination, advocacy and health development capacity by activelymonitoring and informing the community of emerging issues, focusing on at riskpopulations and convening special interest groups.

Promoting a Healthy Community

• Supporting individuals and communities in making healthy lifestyle choicesthrough health promotion strategies and local action;

• Promoting social cohesion by supporting cultural diversity, communitydevelopment programs and taking action to reduce adverse factors impacting onvulnerable groups.

Protecting the Health of the Community

• Protecting the community from vaccine preventable diseases;• Reducing the risk of the transmission of blood borne infectious diseases such as

hepatitis C;• Improving food safety standards and illness prevention.

Providing for the Fundamentals for a Healthy Community

• Addressing housing related issues for the most vulnerable members of thecommunity;

• Improving the level of community safety through injury prevention andenvironmental design programs.

Some Other Significant Policies & Strategies.

There are a number of other policies such as the Multicultural Action Plan, the YouthStrategy and Economic Development Strategy referred to in the City Plan that help todefine Yarra's overall Strategic Framework. The following diagram highlights someof the key policies and their relationship to the City Vision process.

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A Diagram Illustrating how Selected Policies Impact on Yarra's Future Vision

City V ision forms the core values of of C ity P lan

Yarra R iver Corridor S trategy

W aste M anagem ent Strategy

M unicipal Health P lan

M ulti-cultural Action P lan

Econom ic Developm ent Strategy

O pen Space Policy

M unicipal S trategic S tatem ent

Environm ent S trategy

Youth Action Plan

Storm water M anagem ent Plan

The Yarra C ity Plan Context

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The Role of Local Government

The federal system of government in Australia is made up of the Commonwealth andthe six States. While local government in Australia is not recognised constitutionally,it is nevertheless a fundamental part of the democratic system of government in eachof State and therefore, plays a legitimate part in the State and national politic.

Typically, local government is referred to as the third tier or “grass roots” level ofgovernment in Australia. Municipal councils are public statutory bodies and rely uponlegislation as the main source of their powers.

In Victoria, the Local Government Act 1989, Planning and Environment Act 1987,Building Act 1993, Subdivision Act 1988, Health Act 1958 and Food Act 1984 aresome of the principal pieces of legislation where councils derive their powers andduties.

A local authority comprises “the Council” which is an elected body generallyresponsible for the peace, order and good government of the municipality and anadministrative arm primarily responsible for the operational management of thecouncil.

The elected Council is responsible for formulating the vision and strategic directionsof a council, policymaking, budget, corporate plan and performance review.

The administration is responsible for the implementation of policies and directives,provision of specialist advice and performance of the day to day operations.

Local government elections are held every three years to elect Councillors.

Local governments seek to provide good governance for their communities andincreasingly have an enhanced role in urban, economic, social and environmentalplanning within communities. In addition to the above role, local government has animportant advocacy role and regulatory function.

Broadly speaking, the role of local government is to:

• advocate;

• deliver services;

• regulate;

• provide program funding;

• plan.

Local governments provide a vast range of services to meet the needs ofincreasingly diverse and complex communities.

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The Functions of Councils

The Local Government Act (Schedule 1) specifies a range of Council functionscovering public safety, health education, community services, town planning andbuilding, cultural and recreational services. The act also allows discretion in theactivities carried out by municipalities, provided that good governance is intended.The range of functions include:

General Public Services

• Fire protection; Local Emergency services; animal and plant control; refusecollection.

Health, Education, Welfare, and other Community Services

• Child Care and, youth services;• Services for children and families;• Health Inspections; Public Conveniences;• Aged, disabled and disadvantaged persons services;• Migrant Services

Planning and Land Use & Property Services

• Planning and Building Controls• Street maintenance and land development schemes

Recreational and Cultural Services

• Halls and public buildings• Sport, recreation, leisure and arts• Parks, gardens and reserves• Libraries and museums• Historic buildings and places

Roads

• Bridges, footpaths, bicycle paths, traffic control, lighting and drainage of roads.

Other Functions (relating to the peace, order and good government of themunicipality)

• Parking, Transport, Tourism, Information, Supporting Employment Opportunities,Encouragement of commerce and industry

• Environment control, protection and conservation• Municipal enterprises

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The City of Yarra Council

The Elected Council

The City of Yarra Council is the elected body that represents the citizens resident in,or visitors to, the area called Yarra. The Council is comprised of the Mayor and eightother democratically elected members that meet monthly, and at other times, todetermine Council policy.

Council Committees

The Councillors sit on a range of formal committees that meet regularly to receivereports from Council officers and to make recommendations to the full Council. Thetwo main committees of Yarra Council are:

• Finance & Resources and• Planning and Community Development.

Additionally, some Councillors and other invited community representatives sit on anumber of non-voting community consultative and advisory committees whosecharters are based on specific issues including: the Environment, Human Servicesand City Link. The Internal Development Assessment Committee (IDAC) resolvesthe more contentious planning applications.

The Administration

A CEO, appointed by Council, manages an administration that delivers a wide rangeof services and functions. The core internal staff of Council delivers some of theservices and functions of government, such as planning, while private tenderersdeliver others such as rubbish collection via service contract managers and contractswith the City of Yarra.

The administration is presently divided into three divisions each headed by aCorporate Director, who in turn is directly responsible to the CEO. The presentadministrative divisions of Yarra are;

• The City Development Division• The Finance & Business Development Division• The Community Development Division

A Profile of Yarra Services

The range of services performed by the City of Yarra is extensive. Many of theservices are ‘core’ activities required of Local Government by legislation. Otheractivities are Council initiatives that respond to local circumstances, whether they besocial challenges or economic development opportunities.

Many of the services provided by Council are targeted to various groups within Yarra,while most of the facilities provided by Council can be enjoyed by the wider public.Yarra Services are described here, in line with the themes set out in the City Plan2001/03.

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Services & Programs & the 2000/01 Operating Budget

The Council 2000/01 Operating Budget is $67.0 million. The following profile ofprograms is broken down by the themes of the City Plan and gives an indication ofwhere the money will be spent.

Enhancing the Look and Feel ofthe City - $24.6 million (36.7%)

Infrastructure works:- drainage;- footpaths and kerbing;- road works and maintenance;- signage and street-numbering;- street planting & parks / gardens;- bicycle paths

Carparking control and trafficmanagement

Town Planning & Building;- Permit applications;- Compliance & enforcement;- Strategic Planning;- Heritage Planning;- Residential Design Standards

Asset Management:- Council buildings & furniture and

equipment, vehicles;

Living Together - $3.3 million(4.9%)

Multicultural Action PlanCommunity grants programPublic Health:- local public health coordination,

advocacy & development;- monitor air quality;- alcohol and drug issues;- vaccinations and infectious

diseases;- food safety standards;Yarra Drug Action PlanCommunity Safety:- Neighbourhood Houses;- School crossing supervision;- Street lighting; Animal controlAffordable HousingLocal law enforcement

Serving you Better - $10.4 million(15.5%)

Care & support:- adult day care;- vacation & after school care;- child care, family day care;- home care and home

maintenance;- Meals on wheels;- Youth services & centres;- Senior citizens centres;- Aged and disability services;- Early childhood support;- Community transport;- Emergency services;- Family counselling & support;- Financial counselling;- Maternal & child health care;- Social planning

Improving financial transactions withCouncil.Monitoring service performance

Creating a Voice - $1.5 million(2.2%)

Civic and Council facilities;Council support & measurement;Effective community consultationAdvocacy and partnerships:- develop strong links with all levels

of government;- actively participate in forums

dealing with local governmentissues;

- foster partnership between localgovernment bodies.

- Publications and Public Relations;Elections

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Learning Leisure & Having Fun -$10.0 million (14.9%)

Arts and cultural activities:- community events & festivals;- Arts grantsLeisure facilities:- Leisure centres and pools;- Parks, playgrounds;- Sports ovals and facilitiesTown hall hireLocal librariesGleadell Street Market

Caring for Our Environment -$5.4 million (8.1%)

Waste Management Strategy:- Promote waste minimisation;Hard rubbish and green wastecollection, Recycling;Improve water quality in localwaterwaysStreet cleaningTree pruning & managementEnvironment Action PlanMonitor air pollution

Building Economic Strength -$1.5 million (2.2%)

Economic Development StrategySupport for Retail Trader Groups:- assist with local trading issues;- footpath trading;- development of Retail Business

Plans;- business networking and

partnershipsSupport for Business Groups:- Streetlife Programs;- Brainfood Seminars

Facilitate new business andinvestmentStrategic policy and planning:- support role of activity centres;- facilitate private & public

investment;- strategic land use frameworkEconomic Development Strategy

Managing Our Organisation -$10.3 million (15.4%)

Community Feedback on serviceperformanceResponsible Financial ManagementEmployee support servicesStaff Training and DevelopmentContinuous improvementOccupational health and safetyRate and revenue collection,valuationsInsurance and risk managementInternal auditInformation systems and officeaccommodation

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Yarra's 10 Year Financial Strategy

Yarra is committed to developing a strong financial position to fund the manyservices it will provide to the community over the next 10 years. To assist thisprocess, the Council has developed a "financial model" forecasting the future state ofits operating statement, balance sheet and cash flow statement over the next 10 yearperiod. The model is based on a number of assumptions that are outlined below.

In summary, the 10 year plan indicates the following:

Operating Statement

The 10 year financial plan forecasts positive operating results of over $3M annually inthe years 2000/2001 to 2008/2009. This will allow Council to maintain its proposedcapital expenditure at a level at least $1M greater than depreciation withoutdependence on non-recurrent asset sales or further loan borrowings (above thoseplanned).

Balance Sheet

The Balance sheet indicates the financial health of the organisation. Council’sfinancial position (health) is improving steadily throughout the 10 year period of themodel. This being evident in the increasing level of ratepayer’s equity (RatepayersEquity is the sum of Accumulated Surpluses from prior years, Capital Reserves andAsset Revaluation Reserves), increased cash balances, and reducing levels of loanand superannuation debt.

The 2000/2001 capital expenditure budget prioritises a capital program to maintain,renew and improve Council’s existing asset base. This will ensure that Councilowned and controlled assets, ranging from buildings, open space, roads, footpathsand drains to arts and cultural assets will be protected and maintained for futuregenerations.

Statement of Cash flows

The sound financial management and planning of Council is evident in the statementof cash flows. The Council will have sufficient cash balances in future to supportCouncil’s operations between rate instalment dates and will maintain cash balances,while also commencing to repay Council’s loan borrowings at the expiration of theinterest only periods of the loans.

Main Assumptions

Rate income to increase by 2.5% annually.User charges to increase by 2% annuallyEmployee costs to increase by 3% annuallyThe cost of materials and services to increase by 2.5% annuallyGovernment Grants to remain constant in dollar termsNo new net borrowings after the year 2002The cost of contracts have been factored in where knownNew Initiative expenditure (non-cumulative) of $500,000 annually

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Yarra's Commitment to Best Value

The Victorian Government passed the Local Government (Best Value Principles) Act1999 in December 1999 effectively replacing Compulsory Competitive Tendering(CCT) for all Local Government.

The new legislation requires all Council services to comply with six Best ValuePrinciples:

� Best quality and value for money� Responsiveness to community needs� Services accessible to those who need them� Continuous improvement� Regular consultation with their community� Regular community reporting on Council achievements

The Legislation provides Council with the freedom and opportunity to tailor itsapproach to Best Value to suit the needs of its community. Our approach at Yarrawill be founded on a strong strategic planning framework.

City Plan 2000 ‘Creating a Better Future’ outlines our commitment to good localgovernment, responsible financial management and the delivery of communityfocussed services that meet the needs of both residents and businesses.

Council, through the City Vision Focus Groups of Excellence, will develop a 2010Vision that sets out its key directions and the values underpinning them. These keydirections will inform the range of services that Council will provide or support for theYarra community.

The following section provides a summary of the legislation and its requirements.

The Local Government (Best Value Principles) Act 1999

At the core of the Legislation is the requirement that Council must comply with theBest Value Principles. The six principles and some of the factors that need to beconsidered in applying them are:

1. All services provided by a Council must meet the quality and coststandards

� A Council must develop quality and cost standards for the provision of anyservice it provides for its community

� A Quality or cost standard must set out the performance outcomes determined bythe Council in relation to each service.

� A Council may develop different quality and cost standards for different classes ofservices.

� In developing quality and cost standards a Council must take into account thefollowing factors:

� the need to review services against the best on offer in both the public andprivate sectors

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� an assessment of value for money in service delivery

� community expectations and values

� the balance of affordability and accessibility of services to the community

� opportunities for local employment growth or retention

� the value of potential partnerships with other Councils and State and theCommonwealth governments

� potential environmental advantages for the Council's municipal district

2. All services provided by a Council must be responsive to the needs of itscommunity;

3. A Council must achieve continuous improvement in the provision ofservices for its community;

4. Each service provided by a Council must be accessible to those membersof the community for whom the service is intended

5. A Council must develop a program of regular consultation with itscommunity in relation to the services it provides

6. A Council must report regularly to its community on its achievements inrelation to the principles

The Act further requires that a Council must, on or before 31 December 2000,develop a program for the application of the Best Value Principles and ensure thatthe program is available to the public.

A Council must apply the Best Value Principles to all of the services it provides on orbefore 31 December 2005.

Best Value for the Community

Best Value is not a new thing. Traditionally more inferred than stated as policy, BestValue is in fact nothing more than a combination of common sense and goodgovernance. What the change in Legislation from CCT to Best Value does provide isgreater freedom and opportunity for a Council to tailor its approach to meetingcommunity needs.

A Council must now demonstrate to its community that it is providing best valuethrough its leadership and services.

At Yarra there is a firm belief that Best Value can only be achieved if the principlesbecome enshrined in the way every part of our business is enacted.

At the core of providing Best Value is a clear understanding of the needs andexpectations of all sections of our community. Engaging our community in effectiveconsultation and encouraging debate around the issues will be a key to our successin this regard.

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The City Vision Focus Group of Excellence is preparing a comprehensiveconsultation strategy around developing a long term vision for the city and itsservices - YARRA 2010. Arising from this work will be the creation of a flexible,service consultation strategy that will become part of the Service Review Programstarting in early 2001.

Achieving Best Value outcomes, affordability and the availability of new fundingsources will place some constraints on Yarra's ability to fully meet communityexpectations. Innovation will need to be encouraged to help us meet the challenge ofallocating and/or redeploying existing and future resources to achieve best outcomesfor our community.

Integrating Best Value - A Yarra Model

The City of Yarra has a strong commitment to respond to the demands of itscommunity. The current organisational structure has served Yarra well, but Yarrarecognises the need to prepare for the future. Best Value places emphasis on theneed to recognise the demands of the population we service.

Yarra's current systems provide a great foundation for the development of anintegrated framework for ensuring that the organisation can meet the challenge ofcomplying with the Best Value Principles. An example of this is the current servicequality framework for service provision and continuous improvement.

The organisation's commitment to continuous improvement is demonstrated by thesuccess of Yarra Service Reviews which have extended workplace reform andsystem improvement to areas that received little attention under the CompulsoryCompetitive Tendering (CCT) regime. Unlike CCT, the Service Reviews have beenstrongly supported by staff who are at the core of the improvement process that hasseen a strong emphasis on customer focussed service delivery.

The engagement of our Community through extensive consultation processes hasalso been a feature of the way we plan and monitor the provision of services and isan integral part of the Service Reviews as well as being critical to the development ofYarra’s City Plan.

Meeting the challenge of building on this foundation has already commenced. Toreinforce that Best Value is not just another process but is integrated into the way wefunction we have introduced a new organisational structure which includes thecreation of three Focus Groups of Excellence.

The Focus Groups of Excellence (FGE) are charged with the task of:

CITY VISION FGEthe development of a long term vision – YARRA 2010

SERVICE IMPROVEMENT FGErelating service delivery to the City’s vision

CITY PERFORMANCE FGEensuring we meet our commitments

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The Focus Groups of Excellence are led by our Directors, include nominated portfolioCouncillors and comprise teams of people from throughout the organisation. Thesegroups will ensure that the three key focuses – City Vision, Service Improvement andCity Performance are reflected in each division and service units’ key performancecriteria.

The work of the Focus Groups of Excellence will assist in integrating the decisionmaking, organisational roles and the tools we use for assessing, managing andmeeting community expectations.

Organizational Structure

Yarra’s organisational structure is part of the framework to achieve the vision. Thestructure links to the City Plan. It should be flexible and responsive to the changingdemands of the community. In response to relevant key issues & trends and as ourpopulation changes, so must our organisation. Some services and functions wecurrently provide will no longer be relevant and will eventually be reduced in thefuture. New services and functions will emerge.

The new organisational structure reflects some clear messages from our community,Councillors and staff:

� That Yarra needs strong leadership and teamwork amongst its Managers

� The City’s infrastructure is important and must continue to be upgraded

� Urban character and the natural environment are very important to the community

VISION SERVICE PLANNING SERVICE DELIVERY OUTCOMES

COUNCILEstablishes a clear vision, corevalues, priorities and futuregoals

ORGANISATIONSupports, facilitates andadvises

COUNCILDetermines service outcomes,quality and cost standardsAdopts Best Value Timetable

ORGANISATIONSupports, facilitates andadvises

COUNCILDetermines method of delivery

ORGANISATIONReviews internal/externalprocess for best practice andcontinuous improvement

COUNCILMonitors against communityexpectations

ORGANISATIONMeasure and review outcomes.Reports regularly to communityon:• Quality and cost standards• Responsiveness to

community needs• Accessibility• Continuous improvement• Community consultations

Community ConsultationSurveysFocus GroupsAdvisory CommitteesCity Plan

Community ConsultationSurveysFocus GroupsAdvisory CommitteesBenchmarking

Service and Process ReviewsPerformance reportingSpecificationsTenderingService Agreements

Annual Report (Best Value)Yarra NewsCommunity Forums

We will say what we do We will do what we say We will check that we do itwell

COMMUNITY EXPECTATION

FOCUS GROUPS OF EXCELLENCE

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� We must improve our customer focus

� The City must place a greater emphasis on the natural environment

� Information systems are important for the organisation

� The community is demanding more e-commerce facilities

� The City’s assets need to be improved and managed

� The organisation needs to be accountable

� We need to be more focused on business support

� Our staff are important and need more assistance through improved humanresource management

� Amenity issues are important to the community. The organisation needs toconsider this at planning, policy, implementation and enforcement stages

� Community services and the policy arm need to be integrated

� The community services we provide need to be relevant to our population

The realignment and linking of services as part of the restructure of the organisationwill allow for service areas to have all of their service reviewed over a single block oftime.

The City Vision: Yarra 2010

The City Vision Focus Group of Excellence will work with the Community andCouncillors to fully outline the long term vision for the City of Yarra in terms of:

� Urban & natural environment and amenity� Community development and support� Business support, technology and economic development

The final vision document YARRA 2010 will be the result of extensive consultationand research. It will enable the organisation to base its decision making aroundproviding ‘Best Value’ services in the context of changing future needs.

City Plan

Just as YARRA 2010 sets the vision for Yarra and allows Council to establish servicedirection and long term priorities, each year City Plan will:

� review that direction and confirm the major strategies for the next three years,� establish and review performance targets� operationalise the necessary work activities over the coming year.

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Best Value & Triple Bottom line Reporting

The Best Value Victoria - Code of Reporting requires Council prepare a “Best ValuePrinciples Report” as part of its report of operations in the Annual Report. This reportwill contain information on:

� Council’s progress in conducting the reviews scheduled for the year in the BestValue Program; and

� Council’s application of the Best Value Principles to services for which it hascompleted reviews.

As stated elsewhere we will also be undertaking more tailored reporting so that ourcommunity and other stakeholders receive accessible and meaningful information onour Best Value and Service achievements. This may also include the option of so-called triple bottom line reporting methods to assess Yarra's performance withrespect to social, environmental and financial objectives.

The work of the Focus Groups of Excellence will provide guidance as to the best wayof achieving this.

An Introduction to the Key Strategic Trends & Issues

A Vision Statement that concentrates only on the values and priorities of thecommunity and other stakeholders and fails to respond realistically to wider emergingtrends and issues affecting Yarra's future will not be complete.

Consultation, while important and useful at identifying and balancing priorities andpolitical interests, will not provide Yarra with a complete list of all the significantissues for which it will need to respond.

The Vision 2010 program must be based on sound research and a clear andthorough analysis of relevant trends and issues likely to impact on Yarra's future.

No one can guarantee that all the important future issues will be identified by theresearch. Yarra's hope is that we will use the data to provide a critical researchcontext for assessing what we understand to be the main social & environmentaltrends based around the following critical themes:

• Society,• Economy,• Technology,• Environment.

It remains for the community, stakeholders and future generations of Yarra todetermine how well we managed the task.

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Society: Key Issues & Future TrendsThe purpose of this section is to illustrate some important issues and future trends inVictoria & Yarra's demography and population. The section raises questions posedas strategic challenges for consideration.

Recent Trends in Victoria's Population

Recent Australian Bureau of Statistics data shows that more people are choosing tolive in Victoria. The state's annual population growth rate of 1.2 per cent is higherthan the national average.

Key Issues & Trends

• The Australian Bureau of Statistics' demographic statistics for March 2000showed the number of people in Victoria had reached 4,753,900. Australia'spopulation grew 1.1 per cent - or 215,000 people - over the same year to19,104,600.

• Almost half Victoria's population growth occurred because there were more birthsthan deaths - 58,300 babies were born while 32,150 people died. Overseasmigration also contributed to the rise in Victoria's population - immigration into thestate from overseas exceeded the number of Victorians who permanently leftAustralia and added 24,154 to the population.

• The number of people who moved to Victoria from other states exceeded thenumber of Victorians who resettled elsewhere in Australia and this added afurther 6365 people. Most of the Australians who made Victoria their new homecame from New South Wales and Queensland, while Victorians mostly moved toeither NSW or Queensland.

• Victoria's infant mortality rate rose for the third year in a row to equal the nationalaverage of 5.4 deaths for every 1000 babies born, the highest rate in at leastseven years.

• Nationally, most of the population growth occurred because there were morebirths than deaths - 247,500 babies were born but 129,600 people died, resultingin a "natural" population increase of 117,900.

• Also adding to Australia's population growth over the year was a sizeableincrease in net migration - almost 297,400 people arrived (mostly from NewZealand, the United Kingdom, China, South Africa and the former Yugoslavrepublics) while just 191,700 people left and this increased the number of peoplein the country by 97,100.

• The figures also showed the rate of population growth in capital cities exceededregional and rural areas. The total population of Australian capital cities grew 7per cent from 1994 to 1999, while the population outside major capitals increasedjust 5.7 per cent.

• Between 1994 and 1999 the population of Melbourne grew 6.4 per cent to reach3,417,218 people.

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• The ABS data suggests that Australians were on average getting older. In justfive years the proportion of the population aged over 70 increased from 4.8 percent in 1995 to 5.4 per cent in 1999.

• The bureau predicted that over the next hundred years Australia's populationwould increase by as much as 68 per cent, from just over 19 million in 1999 to 32million by 3001.

• With Australia's population continuing to age, the contribution of natural increase(births over deaths) was expected to fall and become negative by about 2033.After this period the bureau said population growth would entirely be fed byoverseas migration to Australia.

Yarra's Population Growth

The resident population of the City of Yarra increased by 6.6% from 1993 to 1999.The latest Australian Bureau of Statistics (ABS) estimate suggests that there wereabout 69,000 persons currently resident in Yarra as of June 1999.

Estimated Resident Population 1993-1999

Region AreaKm2

1993 1997 1999 PopulationDensity1999persons/km2

1993-99% growth

Yarra 19.5 64,656 68,133 68,900 3,533 6.6%

Inner Melbourne 85.9 214,246 232,151 241,858 2,816 12.9%

Metropolitan Melbourne 7,698.4 3 197, 927 3 321, 788 3 417,218 444 6.9%

Source: ABS Regional Population Growth, Cat. No. 3218.0

Key Issues & Trends

• Recent Department of Infrastructure (DoI) forecasts suggest that the populationof inner Melbourne will continue to increase. The Victorian Department ofInfrastructure forecast that between 1999 and 2021, Yarra’s population willincrease by 7.5% or 5,129 people.

• The City of Yarra is more densely populated than Inner Melbourne. The densitytrend is expected to intensify with the construction of more medium and high-density housing development projects in the municipality.

Strategic Challenges

• Is it reasonable to expect Yarra's population to continue to grow?• What factors are driving the population increase in Yarra?• How do we account for the growth in population before we plan services?• Where will the new residents live, work & play?

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Age Structure

Presently, Yarra has a young population. Nearly 40% of residents are 20-34 yearsold. DoI forecasts suggest that the age structure of the Yarra population will varyover the next 22 years with the greatest net growth in the 35-49 and 60-69 agegroups and highest net loss in the 5-17 and 18-24 age groups.

Key Issues & Trends

• An ageing population with a shrinking proportion of persons in the under 25 yearsage group.

Strategic Challenges

• Will Yarra's population continue to lose the under 25 year olds?• What factors are driving the increase in the population's age in Yarra?• How do we account for the growth in an aged population before we plan?• What services are redundant?• Is our infrastructure "grey" or elderly friendly?• What additional services will our citizens require?

Mobility

One of the most profound statistics to arise from the 1996 Australian Bureau ofStatistics (ABS) census data concerns the mobility of Yarra residents. The chartbelow shows that 57% of Yarra's residents over five years of age were resident at adifferent address 5 years ago. This compares to 61% for inner Melbourne as a wholeand 40% for Metropolitan Melbourne.

Mobility of Yarra Residents: 1996 Census (g) persons over 5 years

43%

57%

Persons enumerated sameaddress 5 years ago(g)

Persons enumerated differentaddress 5 years ago(g)

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Key Issues & Trends

• Resident mobility is the key defining characteristic of both the Yarra and the innerMelbourne population. If the present trend continues, over half of the populationYarra plans services for will move out of the municipality in 5 years.

• Further research confirms that the bulk of new residents moving into Yarra arecoming from outside of the municipality.

Strategic Challenges

• Is it reasonable to expect mobility to continue at the present rate?• What factors are driving the mobility in Yarra?• How do we plan services for a highly mobile population?• Who are we planning services for?• What role should Yarra play in the future?

Ethnicity

The City of Yarra has a high proportion of its population from a non-English speakingbackground (NESB), especially of Vietnamese and Indonesian origin (mostlyTimorese) when compared to Metropolitan Melbourne. Ethnic groups in the City ofYarra experienced different trends from 1986-1996, reflecting Australia’s migrationand refugee policies and the importance of Yarra as a home for diversity.

Ethnic Groups in the City of Yarra 1986-1996

Country of Birth 1986Numbers

1986%

1991Numbers

1991%

1996Numbers

1996%

Australia 38,013 59.6 36,974 58.9 39,750 61.5United Kingdom 2,455 3.9 2,458 3.9 2,539 4.0New Zealand 845 1.3 943 1.5 980 1.5NESB background App.

33% App.33%

App.30%

Vietnam 4,370 6.9 4,882 7.8 4,762 7.4Greece 3,531 5.5 2,700 4.3 2,236 3.5Italy 2,237 3.5 1,833 2.9 1,518 2.4Indonesia 93 0.2 967 1.5 1,392 2.2China 408 0.6 1,397 2.2 938 1.5Others 10,551 16.5 10,321 16.4 9,324 14.4Total 63,833 100.0 62,788 100.0 64,643 100.0

Source: ABS Census 1996, table T08

Key Issues & Trends

• About 30% of Yarra’s residents are from non-English speaking background(NESB), with main countries of origin including Vietnam, Greece, Italy andIndonesia (mostly Timorese), while 5% of residents have not stated their origin.

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• Compared with Inner Melbourne, the City of Yarra has an equivalent proportion ofthe population from non-English speaking backgrounds, but a higher proportion ofpersons of Vietnamese origin and a lower proportion of persons from the UK.

• More than 2/3 of the population on all the public housing estates in Yarra are fromnon-English speaking backgrounds, especially of Vietnamese and Indonesian(mostly Timorese) origin.

• Between 1991-1996, the proportion of Australian born citizens has risen from58.9% to 61.5%, while the percentage of NESB population has declined fromabout 33% to about 30%.

• Within the NESB population, the Indonesian (mostly Timorese) population hasincreased since 1986, in contrast to the Greek and Italian fraction, who's numberhas declined since 1986.

Strategic Challenges

• Is Yarra loosing is ethnic diversity?• Will the public housing estates continue to reflect Yarra's cultural diversity?• What factors might influence the future ethnic character of Yarra?• How do we sensitively plan services for a people of different cultures?• What role should Yarra play as a home for refugees in the future?

Income

A defining characteristic of Inner Melbourne is the accelerating trend known as"gentrification". In simple terms, gentrification means the driving out of poorer lowlyeducated and paid residents who mainly rent by wealthier, more educated residentswho mainly own their own homes.

The high proportion of public housing in Yarra has protected the economic diversityof the municipality. The divide between rich and poor is reflected in the growingpolarisation between those households with high income and low incomes withinYarra.

Key Issues & Trends

• In 1996, over 35% of households in Yarra had an income below $500 per weekcompared with 32% for Metropolitan Melbourne, while 15% had a weekly grossincome more than $1,500 compared with 12% for Metropolitan Melbourne.

• The growing gap between rich and poor resident is leading to the notion of adivided Yarra of two distinct but radically different socio-economic communities.

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Strategic Challenges

• How can Yarra intervene to halt the growing divide between rich and poor?• What factors might influence the future distribution of income of Yarra

residents?• How do we plan services for a people of different incomes?

Education

Thirteen per cent of Yarra residents are attending university or other tertiaryinstitutions. Compared with Metropolitan Melbourne, the City of Yarra has a higherproportion of citizens attending universities or other tertiary institutions, while theproportion in primary and secondary schools is significantly lower.

Key Issues & Trends

• The proportion of children of the 4-5 years age group who attended pre-schoolsin Yarra has dropped sharply from 72.7% to 43.8% from 1986 to 1996.

• The proportion of primary school attendance in Yarra has declined, as has theproportions of 5-9 and 10-14 years age groups. The decline in secondary schoolattendance reflects the declining 10-14 years age group and the decline in the15-19 years age group.

• The proportion of Yarra residents with a bachelor degree as highest qualificationhas risen significantly since 1986. The proportion of residents with other tertiaryqualifications - degrees or diplomas– has risen since 1986.

• The proportion of people with a skilled vocational qualification has remainedstable over the last decade. The proportion of residents with a basic vocationalqualification has declined since 1986.

• The jump in attendance of universities and other tertiary institutions from 1986 to1991 has slowed in recent years. This trend is expected to continue or willprobably shift to a slight decline, depending on the projected decline in the 20-24years age group

Strategic Challenges

• How can Yarra capitalise on the resource of its educated residents?• Are students the people most mobile?• Are there differences in the education of the population across the

municipality?• How do we plan services for students?

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Family Types & Households

Couples without children and lone person and group households account for nearly70% of all households in the City of Yarra. Compared with Inner Melbourne, the Cityof Yarra has a higher proportion of families with children, but a lower proportion oflone person households.

Key Issues & Trends

• Lone person and group households & 1-person- and 2-person householdsaccount for nearly 70 % of all households in the City of Yarra.

• DoI forecasts suggest that the number of Yarra households will rise by 16.4% or5,051 between 1999 and 2021.

• The average household size in Yarra will drop from 2.2 to 2.0 between 1999 and2021.

Strategic Challenges

• How can Yarra support the growing number of households withoutchildren?

• What are the implications of a declining household size?• How do we plan services for group and lone person households?

From a Doughnut City to Café Society

The Victorian Department of Infrastructure (DoI) has identified two significant trendsin Melbourne's urban development occurring over the last five to ten years, thatrepresent a substantial shift from earlier patterns.

The term "From Doughnut City to Café Society" encapsulates the nature of suchdevelopment trends in Melbourne over the last decade. Before 1990, in terms ofpopulation growth, Melbourne was a city growing on its edges and stagnating in itsinner core, hence the term doughnut city. Recent development activity has reversedthis trend and brought large numbers of people back to the core inner suburbs. Suchpersons are usually older, wealthier couples without children who tend to dine out formost of their meals, hence the term Café society.

Key Issues & Trends

• There is a revival of population growth and residential development in the innercity, and a boom in the development and demand for medium density housing.The move into the inner core is also a trend observed in most other Australiancapital cities that share similar property characteristics to Melbourne.

• Repopulation of the inner city is occurring alongside redevelopment of land forresidential purposes. Alot of this development is occurring on infill sites or onindustrial land left vacant by the departure of industry from the inner suburbs. Oldschools, warehouses and factories are also increasingly popular with developers.

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• Recent DoI analysis shows that the demographic profile of the people moving intoinner Melbourne are young, childless couples predominantly 20-29 years old.Many have post-graduate qualifications. Although there are some older people,they are not the empty nesters in the 50+ age groups whom many assume aremoving into the inner city. The young people moving into the inner area tend tohold managerial or professional jobs reflecting the growth in demand for 21st

century workers found by many newly establishing inner Melbourne technologycompanies. They have high incomes with 11% earning over $1000 per week in1996, compared to 6% for metropolitan Melbourne.

• Migrants to Inner Melbourne come mainly from the eastern suburbs of Melbournefrom the local government areas of - Manningham, Whitehorse, Monash,Bundoora, Bayside and Glen Eira. Most are not from the western suburbs ofMelbourne, as such persons tend to buy land and build new homes on the urbanfringe.

• The DoI argues that the key factors driving the changes are the declininghousehold size, the ageing of the population, fewer births and families, changesin culture favouring higher density living and changes to the national andmetropolitan economy as Melbourne moves into the so-called new economy.

Strategic Challenges

• Will the trend to the inner city continue to grow?• Will the new migrants to inner city living stay longer than 5 years?• What demands on services does the growth place on inner Melbourne?

Dwelling Structure

Compared with Inner Melbourne, the City of Yarra has a higher proportion ofseparate houses and semi-detached houses, but a lower proportion of units in multi-dwelling buildings.

Key Issues & Trends

• More than 40% of dwellings in the City of Yarra are semi-detached houses, suchas terrace houses. Units in multi-dwelling buildings and separate houses accountfor more than 30% and 20% respectively

• More than 70% of families with children live in semi-detached houses or separatehouses, while less than ¼ live in units. More than 50% of couples withoutchildren live in semi-detached houses, while 25% live in separate houses and20% in units.

• More than 40% of one parent families and lone person households live in units,while 35% live in semi-detached houses and 19% or 16% respectively inseparate houses.

• More than 50% of group households live in semi-detached houses, while equallyhigh proportions of 20% each live in separate houses or units.

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Strategic Challenges

• How does Yarra plan for increasing population density and its attendantimpact on the amenity of local neighbourhoods?

• What are the implications for individual personal mobility for anincreasingly older population living in walk up multi-unit developments?

Drug Issues in the City of Yarra

Licit and illicit drug use is increasing in our society, with many factors contributing toexperimentation with and continued use of various drugs. Even with recent efforts todevelop and implement additional strategies to address substance abuse issues, theincreasing availability of a range of substances will mean that the City of Yarra willcontinue to experience the effects of this use.

Key Issues & Trends

• The popularity of injecting drug use presents particular safety and healthconcerns which will continue to be a challenge for the management of communityamenity and community health in the City.

Strategic Challenges

• What is Yarra's role in facilitating responses, advocating for resources, andin some cases developing service responses to problematic drug use andits associated health, social and safety issues?

Public Housing Issues

Yarra has the largest amount of public housing of any LGA in Victoria with over 4800units of stock. The majority of the housing is concentrated on three high-rise estatesand in the areas immediately surrounding them.

Key Issues & Trends

• The lack of investment in housing stock and community development on theestates over the last five years has led to the degeneration of the estates. Druguse and drug related crime has increased dramatically

• There has been a significant increase in the turnover of residents, there are lesspeople on the estates that work and people feel unsafe. The housing estates arenot currently functional communities and they are not effectively integrated intothe wider community.

Strategic Challenges

• How can Yarra best equip itself to manage future challenges in this area?• Who will inhabit public housing in the future and what will be their needs?

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The New Economy: Key Issues & Future TrendsThe Yarra economy is part of the wider global & metropolitan economic system. Theglobal economic system is experiencing profound change and will continue toexperience further reorganisation over the next century. The movement towardknowledge intensive industries, manufactures and systems will affect Yarra.

The New Economy

In the following context, the "new economy" is a term coined to describe a relativelynew group of industries associated with information technology, telecommunications,media and professional services. Finance and property services, media, andcomputers are prominent in the picture of this new economy. The focus of theseindustries is often global but production may be local. Another important feature isthat they produce knowledge intensive products and services, often using advancedInternet and information technologies.

Some Characteristics of the New Economy

According to Dr Kevin O'Connor of Monash University, in a paper presented at arecent City of Melbourne Benchmarking Cities conference (2000), the "neweconomy" is characterised by three interrelated dimensions:

• Knowledge as a factor of production• The intersection of telecommunications and information technologies and• The reorganisation of both public and private businesses to favour outsourcing

The above three factors are responsible for new ways of production, thedevelopment of new creative industries and a spatial reorganisation and orconsolidation of new industry in particular locations.

Knowledge Industries

According to Dr O'Connor, many researchers have identified that the distinguishingfeature of successful corporations, new products and metropolitan economiesworldwide is the emphasis on knowledge. The older business paradigmconcentrating mainly on reducing the cost of services and goods has given way to anemphasis on factors for generating and disseminating information and for learning inboth corporations and communities.

The Intersection of Telecommunications and Computing

An important characteristic of the new economy is the intersection oftelecommunications and computing and the accelerating convergence of electronicdevices. Much of the new economic activity involves information storage,transmission and analysis on a global scale, but often with local centre, usingadvanced communications networks.

Growth in Outsourcing

The growth in outsourcing of many services (many knowledge-intensive) has alsogenerated a spatial growth in new economy industries with similarinterdependencies. Many outsourced firms tend to locate close to one another tocapitalise on, and share technical skills and ensure the continuation of work.

Our Future 2010 Context Statement 22/01/01 9:15 38

Trends in New Economy Employment

The literature identifies some important discernible trends associated with the growthof industries in the new economy. For Yarra, two important characteristicsassociated with new economy activity are significant: (1) its spatial location and (2)the new types of workers employed.

Spatial Aspects

Economic activity in new economy industries such as finance, media, sales andmarketing, is often concentrated in particular world cities in a corporation's globalnetwork. It is specific areas within such cities that industries experience growth.Such areas often contain universities and research institutes associated with thedevelopment of knowledge intensive products and services.

O'Connor, argues that where the utilisation of knowledge and the role of learning areimportant in the change in an industry or activity, it is likely that change withinindustries will favour a few (often the established) locations.

New Types of Workers

According to O'Connor, the new economy is generating new structures ofemployment. Three new types of worker are emerging.

Symbolic Analysts

There is a strong growth in what is termed the "symbolic analyst" or more commonlythe "knowledge worker". Such workers are often found in management andleadership positions. Symbolic analysts are highly skilled workers who performproblem solving, problem identifying and strategic brokering activities in a globalmarket place. The "symbolic" refers to the ability of such workers to manipulate data,word and visual representations to complete their work. Typical professions are theweb analyst, computer engineer, professional business analysts, economists andother specialist professions in finance, business, science and engineering.

Production Workers

There is also a growth is a second type of worker for jobs that typically involveproduction tasks such as routine coding for computer software and the building ofprinted circuit boards. A classic example of 21st C production workers is that of thecall centre operator. Increasingly such jobs are found in many international locationsfar removed from final destination markets because of modern telecommunications.

Service Workers

A third type of worker whose work is growing in significance is that where the serviceis provided locally and where it offers in-person-to-person contact. Retail sales, taxiworkers, waiters and travel agents are typical examples of this type of employment.

The literature also suggests that the presence of a modern high technology activityemploying symbolic analysts, like computer programming, will have more impact on alocal community's prosperity than if it involves routine person to person or productionworkers.

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A Profile of a New Economy Industry: Cafes & Restaurants

Aside from its eclectic mix of residents and the beauty of its remaining naturalenvironment, one of the key defining features of Yarra is the recent growth in thenumber of cafes and restaurants.

The growth in café and restaurant industry is not a Yarra specific phenomenon.According to the Australian Bureau of Statistics (ABS) {ref. in Cafes and Restaurants,Australia 1998-99 (Cat. No. 8655.0)}, cafe and restaurant businesses in Australiagenerated $7,174 million in total income during 1998-99. This comprised 12,845businesses employing 152,107 people.

The ABS analysis suggests that of the total income of $7,174 million, a little over half(55 per cent) was accounted for by takings from food consumed on the premises, afurther 18 per cent from catering services and 16 per cent from the sale ofbeverages. Licensed cafes and restaurants generated $3,050 million (43 per cent) ofthis income followed by catering businesses ($1,497 million) and unlicensed cafesand restaurants ($1,010 million).

According to the Australian Bureau of Statistics (ABS), during 1998-1999, theindustry recorded an operating profit before tax of $334 million, which represented anoperating profit margin of 4.8 per cent. The operating profit before tax per seat(excluding caterers) represented an annual return per available seat of $251.

Total expenses for the cafe and restaurant industry during 1998/99 were $6,805million. The largest items of expenditure were purchases ($2,917 million) and labourcosts ($2,109 million) which represented 43 per cent and 31 per cent respectively oftotal expenses for the industry.

The ABS analysis states that at the end of June 1999, total employment in theindustry was 152,107 people, of whom 63,093 (41 per cent) were waiters andwaitresses. Female employment (85,223) accounted for more than half (56 per cent)of total industry employment. Just over 51 per cent of the people in the industryworked as casual employees, which was reflected in the average labour cost peremployee of $15,000.

According to the Australian Bureau of Statistics (ABS) analysis, cafe and restaurantindustry businesses in 1998-99 were concentrated in the eastern mainland states,with 79 per cent operating in either New South Wales, Victoria or Queensland.Industry income per head of population was $387.

The highest average was for cafes and restaurants operating in the AustralianCapital Territory ($579 per head of population) while the lowest was in Tasmania($230 income per head).

The ABS analysis concludes that the cafe and restaurant industry was dominated bysmall businesses during 1998-99 with 91 per cent of businesses having employmentof less than 20 people. These small businesses accounted for 55 per cent ofindustry employment and 52 per cent of industry income.

In contrast there were 61 businesses (less than 1 per cent of total businesses) withemployment of 100 or more people, which accounted for 22 per cent of industryemployment and 27 per cent of industry income.

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Some Trends in Yarra's New Economy

The new economy has particularly important implications for Yarra, as there hasbeen a significant growth in the number of knowledge worker and service industries,such as cafes & restaurants, in the municipality over the last ten years. This growthin employment is across the all three types of new economy workers.

Key Issues & Trends

• More than 50% of the municipality’s employed residents work in services relatedto business and social/public services

• Compared to metropolitan Melbourne, there are significantly higher proportions ofresidents in Yarra who work in business services, social/public services andaccommodation/cafes/ restaurants, but lower proportions who work inmanufacturing & supply, construction, wholesale & retail trades or transport &storage.

Industry of Employment in the City of Yarra 1986 - 1996

1986Numbers

1986%

1991Numbers

1991%

1996Numbers

1996%

Agriculture &Mining 99 0.3 109 0.4 177 0.6

Manufacturing &Supply 5,697 19.5 4,195 14.3 3,720 11.7

Construction 885 3.0 708 2.4 806 2.5

Wholesale &Retail Trades 4,066 13.9 4,211 14.4 4,597 14.5

Accommodation,Cafes, Restau-rants

1,427 4.9 1,930 6.6 2,152 6.8

Transport &Storage 1,264 4.3 1,016 3.5 941 3.0Business Serv-ices 4,385 15.0 5,152 17.6 7,600 24.0Social/ PublicServices 9,074 31.0 8,985 30.6 9,716 30.7Personal & otherServices 1,012 3.5 1,042 3.6 1,181 3.7

Not stated 1,326 4.5 1,970 6.7 809 2.6

Total 29,235 100.0 29,318 100.0 31,699 100.0

Source: ABS Census 1996, table T15

• The changes in employment industries in the City of Yarra between 1986 and1996 reflect the general trend of a decline in manufacturing industry and anincrease in services related to business and hospitality

• The proportion of residents employed in manufacturing & supply has droppedsignificantly from 19.5% to 11.7% between 1986 and 1996.

• The proportion of residents employed in business services has increaseddramatically from 15.0% to 24.0%.

Our Future 2010 Context Statement 22/01/01 9:15 41

• Another growth area was the hospitality sector, which experienced an increasefrom 4.9% to 6.8% between 1986 and 1996.

• The other industries remained stable (construction, social/public services,personal & other services), increased slightly (wholesale & retail trades) ordecreased slightly (transport & storage).

Strategic Challenges

• Will the new economy industries continue to grow in Yarra?• What support services should Yarra provide to help the economy grow?• How should Yarra become involved in the new economy?• What is Yarra's role in providing communications infrastructure?

Arts & Culture: The Cultural Dimension

An important element of the new economy and society is the sector focused onproducts and services related to media, arts and culture. Some would argue thatculture is not an industry in the same way that making cars is an industry. Theywould be both right and wrong.

Arts & Culture is a global industry with many implications for the Yarra communitygiven the high concentration of artists, culture producers and festival activities in themunicipality. Yarra has vital interest in knowing about what its Arts & Culture sectoris and how it can support it. In many ways, the Arts & Culture sector links mostclosely into the global culture.

Key Issues & Trends

• 5.3% (3,719) of all jobs in Yarra are "Arts related". More than 800 designers andillustrators work in Yarra, making up 31% of Yarra's total arts work force. 25% ofpeople employed in television in Melbourne work in Yarra

• More than 10% of all Melbourne designers and illustrators live in Yarra. Morethan 10% of Melbourne's architects live in Yarra

• There are 23 galleries and exhibition spaces in Yarra. Yarra has twice as manyjobs in the arts as most other Melbourne municipalities.

• In 1996 the value of the Yarra Arts Industry was estimated at $94.5 million withthe largest categories being TV & radio ($22.6m), Architecture ($15.6m), Servicesto Printing ($15.2m) and Commercial Art & display ($12.6m).

Strategic Challenges

How does Yarra support the Arts community?What strategic links can be made between the Arts industries, and Yarra'sfestivals?

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Technology: Key Issues and Future TrendsTechnology does not exist in isolation from the rest of society. It is both the driverand the product of complex social and economic forces. This makes predicting futuretrends in technological development affecting Yarra somewhat difficult given that noone knows for sure which technological developments will actually find their way intoour lives.

The table below highlights some of the technological developments that were bothexpected and unexpected. Many of the concepts were around for thousands ofyears others were totally unexpected. Not all are yet realised. The exciting thingabout the future is that we almost never know what is going to be the next majordevelopment that will influence the future.

The Unexpected The Expected

X-raysNuclear EnergyRadio, TVElectronicsPhotographySound-recordingQuantum MechanicsRelativityTransistorsMasers, LasersSuperconductorsCarbon 14 datingThe Internet & Computer TechnologyCloningQuantum computers

AutomobilesFlying MachinesSteam EnginesSubmarinesSpaceshipsTelephonesRobotsDeath-raysArtificial life & IntelligenceImmortalityLevitationTeleportationTelepathyTime machines

Source: Adapted from A. Clarke: Profiles of the Future 1962.

Technology & its Impact on Yarra

So many technological developments have a potential to impact on the future ofYarra - everything from biotechnology to the Internet. New forms of transportationmay yet be invented. The difficulty seems to be trying to relate future technologicaltrends to their local impact, if any, in Yarra's future.

Yarra cannot know what all the trends will be. It cannot know whether they will besignificant. However, some of the future technological trends are more likely to becandidates for influencing Yarra's future in a major way because they are thecontinuation of an impact of present trends. Using this as a criterion suggests thatsome of the important future trends might be related to:

• The Internet• Telecommunications• Information Technology & Intelligent Systems

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The Internet & Telecommunications.

Computers and the information technology revolution are significantly affecting theway work is performed and services delivered in the western world.

Numerous examples from everyday life highlight the growing direct & indirectdependence that people now have on information technology systems,telecommunications and computer networks - mobile phones, ATM's, email,automated bill pay, the Internet, etc.

One of the most influential future trends will be the continued growth of the Internet.The Internet is a vast international network of networks that enables computers of allkinds to share services and communicate directly, as if it were part of one giantcomputer. It has something like billion users worldwide, but no one has actuallydevised an accurate way to measure total usage of the system.

According to Scott McNealy, Chief of Sun Microsystems (a leading computersoftware house), the Internet will play host to four major revolutions in our lives. TheInternet revolutions are in:

• Messaging• E-commerce• Telephony• Entertainment

Messaging

Messaging is the use of electronic mail and has touched the lives of most people whoown and use a computer.

E-commence

E-commence is the next growing revolution and involves the purchase of goods andservices on-line via the access of on-line stores hosted via Internet web pages.

Telephony

The telephony revolution involves the growth in various means of connection to theInternet and other communications networks. Futurists are predicting that anystandard consumer device containing a microprocessor, such as a fridge or even acar, could be linked to the Internet for the purpose of monitoring or repair - thuslinking the consumer ever closer to the manufacturer and bypassing the wholesaler.

Entertainment

Entertainment is a strength of the Internet. Recent developments in file filter &compression technologies, (such as MPEG & MP3) the increase in the availablebandwidth of networks, cable modems and the use of wireless (WAP) protocols willallow the producers of Internet entertainment the capacity to pump new and morevoluminous media into computer networks. Further developments in Internet radioand audio-video streaming will improve picture quality and build on the existingtechnological base.

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Key Issues and Trends

• Yarra has a substantial investment in communications infrastructure, networksand information technology. A future challenge will to maintain the quality andquantity of the network and Internet access in face of growing usage.

• Access to the Internet is widespread in the Yarra community but there are stillmany barriers preventing all residents access to the on-line world. Some of thebarriers include poverty, language, lack of training or the unavailablity of thetechnology. A future issue is to examine ways of providing better access.

• E-commerce will affect retail trade. The extent to which it influences localretailing and strip shopping in Yarra is unknown.

• The demand for on-line services will grow as the technological literacy of thepublic grows. Services that Yarra currently delivers in person-to-person formatsuch the payment of bills may need to be provided on-line in a 7 day, 24 hourservice format.

• The role of Yarra in the digital domain is yet to be determined. The potential foron-line voting and for improving local democracy is a potential issue.

Strategic Challenges

• What is yarra's role in managing the on-line revolutions?• Is the communications infrastructure adequate?• What services will Yarra need to provide on-line?• How can access to the Internet be improved?

Information Technology & Intelligent Systems

A persistent goal of computer scientists and researchers since the beginning ofcomputing is the development of an electronic brain capable of duplicating some orall of the thinking functions of a human being and perhaps even modelling humanconsciousness.

The enterprise to develop artificial intelligence has so far not been able to overcomethe technical problems involved in getting a machine to think or indeed to perceive inthe way a human being does. The challenges are partly the result of incompleteknowledge of the way humans actually do think and the limitations of trying to modelthe human brain which is a biological entity using a silicon based computer. Theremay even be metaphysical barriers to building a thinking robot.

In spite of the much disappointment, a lot of the basic research has led to manyuseful devices - spelling and grammar checkers, ever-better software for translatingbetween languages, automated mechanical robots, intelligent software agents andexpert systems. Many of these software entities already have and will have acontinuing impact on the future as researchers further refine the technologies. Thenext generation of information technology software and so-called quantum computerspromises vast improvements on these basic advances. Some perhaps within thenext 10 years.

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Artificial Intelligence and its impact seems like a long way from Yarra but considerthat researchers have already developed Geographical Information Systems andother similar software agents that perform complex human tasks such as decision-making, reporting and analysis of consumer behaviour. Yarra already uses someforms of expert systems to provide diagnostic and service advice to its citizens.

An intelligent software agent is a computer software program that can analyseinformation and make recommendations to its author/user for future action based onthe internal rules of the computer code. A recent Internet example is a softwareprogram/ database called "firefly" that can quiz consumers about their musical tastesand monitor their spending behaviour. The software can use this information tomake a report recommending future purchases in music and related products that theconsumer may wish to consider. The Internet abounds with similar examples.

Expert systems are presently little more than very advanced databases orInformation Systems that attempt to capture the flavour of the expertise ofprofessionals such as trades-persons, engineers, mechanics, doctors and perhapseven lawyers. Advances in the field have already led to the availability of suchdatabases on-line via the Internet to provide expert advice in areas ranging fromhome repairs to medical diagnosis.

An expert system providing information on Yarra's services, road and serviceinfrastructure planning connected to our website is not beyond the realm ofpossibility.

Key Issues & Trends

• Intelligent software agents and expert systems are already providing somedecision making support for a range of on-line business across the Internet. Theimpact of such artificial technology systems is going to grow and influence theway Yarra manages information. Knowledge management is becoming a crucialissue for all organisations as they start to come to terms with how they providegoods and services to communities.

• The role that geographical information systems play in Yarra's futuremanagement of infrastructure and road use and maintenance will increase as thecomplexity of management becomes apparent.

• Convergence is bringing together previously separate media to provideinterrelated and connected systems. An example is where the television setbecomes a computer and provides access to the Internet via the telephone cableor even the mobile phone network.

Strategic Challenges

• What is yarra's role in managing information?• What AI services will Yarra need to provide on-line?• What role does Yarra play in facilitating the convergence of electronic

media?• What is the appropriate service model (ie: 24 hour, 7 day per week) for

Yarra's future?

Our Future 2010 Context Statement 22/01/01 9:15 46

Environment: Key Issues & Future TrendsThe Yarra community expects its Council to address many of the globalenvironmental problems that the world now faces. Nearly all of these challenges - airand water pollution, greenhouse gas emissions, the depletion of natural resourcesand biodiversity - are caused by the way in which communities organize themselves,consume resources, use technologies and interact with the natural environment.

Yarra is not solely responsible for addressing every environment issue. Indeedresolution of the issues will require a whole range of partnerships to be formed withLocal, State & Federal government, industry and the community. A small steptoward achieving Yarra's objectives is the Yarra Environment Strategy 2000: OurSustainable Future.

Yarra's environment strategy identifies the key challenges Yarra faces over the nextdecade and suggests that they are interrelated and that Yarra's response to them willrequire a coordinated and full organizational response. Some of the significantchallenges are in the areas of:

• Environmental Management• Natural Resource Management• Energy• Air Quality• Transport and Access• Sustainable Buildings and Urban Form• Biodiversity and Natural Heritage• Indigenous Land Management

Environmental Management

Yarra already plays an active role in environmental management. This role willincrease in future years if impending changes to State and Commonwealth legislationoccur. This is likely given that the pressure on the environment is increasing and thecost to humans is escalating (eg; floods, severe storms, bushfires, etc).

Reliable forecasts for climate change suggest that Australia will come underincreasing international pressure to reduce its greenhouse gas emissions. FutureCommonwealth Governments may also tie State funding for other initiatives toreductions in greenhouse gas emissions.

Key Issues & Trends

• Yarra needs more environmental education programs relevant to the needs ofspecific groups including low-income households, student households, high-income households and non-English speaking households.

• The importance and understanding of sustainability issues within the organisationis a continuing challenge.

• The need to work cooperatively with other local governments, the State and theCommonwealth to achieve ecological sustainability is a continuing challenge.

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Strategic Challenges

How does Yarra:

• Work with and lead the community in the pursuit of a more ecologicallysustainable future?

• Work with community environmental organisations, other localgovernments and the State and Commonwealth governments in the pursuitof a more ecologically sustainable future?

• Develop an adaptive approach to the management of the environment?• Give greater recognition to the importance of the environment in

organisational and Council decisions?• Increase organisational understanding of the environmental issues facing

Yarra and of the importance of achieving ecological sustainability?

Natural Resource Management

Material use – both as an input to consumption, manufacturing and other processesand as an output as waste – lies at the heart of the world’s most pressingenvironmental problems.

Resources & material use is leading to a decline in the world’s biodiversity and isadversely affecting the Earth’s natural ecological cycles. For example, the use ofenergy derived from the burning of fossil fuels has led to a 30 per cent increase in theamount of gases such as carbon dioxide in the atmosphere since the industrialrevolution. This increase is implicated as a factor now affecting the global climate.

Key Issues & Trends

• Australia has very little information on the flow of materials through our economy.This means that local areas also have very limited information about how to bestuse materials. A key challenge for Yarra and its community is to obtaininformation on the amount of water and energy that we consume.

• The cost associated with the amount of waste produced in the City of Yarra.(Council actually pays almost $1 million each year to contractors to collectrecyclable products & $1.6 million for garbage collection & disposal).

Strategic Challenges

• How does Yarra reduce the amount of materials used in the City andincrease the efficiency with which materials are used?

• How does Yarra increase the re-use of materials and, where appropriate,the use of recycled products & minimise the environmental impacts of theCity’s wastes?

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Energy

Energy derived from burning fossil fuels has substantial ecological effects. Theburning of fossil fuels for electricity releases large amounts of carbon dioxide into theatmosphere. The additional carbon dioxide (and other greenhouse gases) affects theglobal climate. The resulting climate change will have both direct and indirectimpacts on the City of Yarra. An increase in the frequency and intensity of stormswill cause more storm damage. There may also be other health effects related topoorer air quality because of higher temperatures.

Key Issues & Trends

• The City of Yarra derives a substantial proportion of the electricity it uses fordomestic, commercial and industrial purposes from inefficient-coal poweredpower stations.

• Yarra is increasing its amount of greenhouse gas emissions (predominantlycarbon dioxide emissions produced by the City;

• The City of Yarra inefficiently uses energy for domestic, commercial and industrialpurposes;

• Yarra does not access renewable energy sources within the City;

• Yarra shares the concern that the high initial cost of conversion to more energyefficient equipment for low-income households.

Strategic Challenges

How does Yarra

• Work with and lead the community in the reduction of the City’sgreenhouse gas emissions?

• Lead and support the community in the uptake of renewable energysupplies?

• Develop Council’s energy consumption and use data base?

Air Quality

The quality of our air is consistently rated as the environmental issue of greatestconcern to most Australians. This reflects the fact that air quality is perceived tohave a substantial impact on human health and well being.

Improving air quality in Yarra and the metropolitan area is a complex task that no-onegroup can achieve alone. The City of Yarra can make a positive contribution to airquality by implementing actions that will encourage residents, workers and thosetravelling through the City to use alternatives to the car. To be effective such actionneeds to be carried out in cooperation with other agencies and municipalities.

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The Victorian Environment Protection Agency plays a major role in ensuring that thequality of the air is maintained. This agency is currently developing an Air QualityImprovement Plan for the Port Phillip Airshed. The Plan covers the need for actionrelated to integrated transport planning, better public transport, controls on emissionsfrom industry, vehicle improvement and community education.

Key Issues & Trends

• The impact of poor, outdoor air quality on human health depends on the nature ofthe pollutant, the concentration of that pollutant and the length of exposure. Fineparticles are of particular concern with studies showing that exposure to fineparticles increases the rate of heart and lung disease. While all people can beaffected by air pollution, young children, older people, asthmatics and thosesuffering from existing respiratory ailments are particularly ‘at risk’. For Yarraresidents, this issue is compounded by the fact that the recently released EPAstudy of mortality associated with air quality identified Yarra as a high-risk area.

• As in other urban areas, motor vehicles are the major source of air pollutionwithin the City of Yarra, contributing proportionally high amounts of carbonmonoxide, lead, nitrogen dioxide and fine particle emissions. Open fireplacesand wood heaters are two other important sources of fine particles and carbonmonoxide emissions and have a significant effect on air quality over the coolermonths of the year - typically from May through to October. Industry is also amajor contributor of noxious gases and other pollutants.

• Indoor air quality is also a potential problem for residents and workers since thequality of indoor air is often worse than outdoor air. Important sources of indoorair pollution are fireplaces, smoking, carpets, paints and building products. Theimpact of indoor air pollution on people’s health is heightened by the largeamount of time that they spend indoors and by some building designs which havereduced the flow of air between the outdoor and indoor areas.

• Air quality within the City of Yarra is influenced by air quality within the Melbourneregional airshed. Over the past twenty years, air quality in Melbourne hasimproved largely due to emissions controls on new motor vehicles and the use ofunleaded fuels. For the Port Phillip region of Victoria, emissions of commonpollutants from motor vehicles all fell between 1990 and 1996, with leademissions falling by more than 60 percent. The fall in lead concentrations hasalso been observed locally.

• Before 1995, annual average lead concentrations in Alphington and Collingwoodexceeded the State Environment Protection Policy (SEPP) objective. They noware much lower than the standard. The Australian Academy of TechnologicalSciences and Engineering warns that improvements will not last if the number ofcars on the road keeps increasing - which it currently is.2 Each year an extra50,000 to 200,000 motor vehicles are added to the roads nationally.

• 2 Australian Academy of Technological Sciences and Engineering, Urban Air Pollution in Australia:

An Inquiry by the Australian Academy of Technological Sciences and Engineering, Commonwealthof Australia, Canberra, 1997, p.43.

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Strategic Challenges

• Despite improvements, air quality remains a problem for Melbourne withcurrent levels of some pollutants having a detrimental impact on humanhealth.

• The rising number of cars travelling through the City has a detrimentalimpact on air quality;

• The on-going use of older vehicles without suitable emission controls andthe widespread use of open fireplaces and older wood heaters poses athreat to air quality.

• Does the City Link tunnel vent stack impact on air quality, particularly inareas close to the stack?

• What is the long term effect on air quality caused by the rising number ofmulti-car owned households in the City?

Transport and Access

Within Yarra, thousands of travel decisions are made each day. These traveldecisions; particularly those involving the use of the car can have significantenvironmental effects. Car use indirectly affects the environment through theinefficient use of energy (in terms of the energy required to produce a car duringproduction and throughout the life of the vehicle) and directly thorough the vehicle'semissions (including both greenhouse gases and other pollutants).

High rates of car use may lead to social problems; air pollution impacts upon humanhealth, and noise pollution affects the City’s amenity. The sheer number of vehiclesin the City also affects the quality of urban life by reducing the amount of public openspace, and in some circumstances, by affecting streetscape values.

There are viable options to the use of the car in the City of Yarra, particularly for shorttrips within the metropolitan area. Compared with outer suburban areas, Yarraresidents are fortunate to be well serviced by public transport, including bus, trainand tram and bicycle lanes. The City’s grid-like street network also provides for easyconnections between different parts of Yarra for pedestrians and bicyclists.

Key Issues & Trends

• The motor vehicle is the dominant form of transport in Yarra. Most Yarraresidents travel to work by car, although the proportion that does is significantlylower than the Metropolitan average.

• The dominance of the car is reflected in Yarra car ownership rates. In 1996,approximately 40% of all Yarra households owned 1 car and 25% owned 2 ormore cars. While the proportion of households with 2 or more cars is significantlylower than for the Melbourne Statistical Division, this still represents a relativelyhigh rate of car ownership especially when compared with internationalmetropolitan areas of similar density. Yarra’s rate of car ownership perhousehold is comparable with other inner Melbourne metropolitan areas.

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• In 1996, City of Yarra Households had a total of about 27,000 motor vehicles,which is on average one car per household. The rate of car ownership in Yarra isgrowing as it is in other areas of metropolitan Melbourne. The total number ofcars is expected to increase in line with an increase in the total number ofhouseholds. The number of cars that are travelling within and through the City ona daily basis is also increasing. Public transport services bicycling and walkingas alternative forms of travel are by comparison under utilised.

Strategic Challenges

• How does the City of Yarra decrease the number of cars travelling in andthrough the City?

• How does the City of Yarra stop motorists from using Yarra’s streets inorder to avoid tolls on City Link roads thereby leading to further increasesin current traffic volumes?

• How does the City of Yarra decrease the number of households with two ormore cars?

• How does the City of Yarra decrease the decrease demand for car-parkingspaces and the finite amount of space available?

• How does the City of Yarra stop the under-utilisation of public transportservices in the City particularly for short trips?

• How does the City of Yarra encourage social change in the community’stravel behaviour?

• How does the City of Yarra support the development of an integratedapproach to transport management for the metropolitan area and for theCity of Yarra?

• How does the City of Yarra minimise the impact of the car on theenvironment and local community?

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Sustainable Buildings and Urban Form

The nature of a City’s buildings and its urban form has a significant influence on itsoverall environmental performance. Some of the characteristics, which contribute toa buildings environmental performance, include:

• ‘energy use during construction, maintenance, refurbishment and demolition aswell as operational energy use and greenhouse gas emissions.

• energy and resources consumed to produce materials used in construction andfit-out

• impacts of mining/harvesting of resources for use in the building (e.g. sources oftimber)

• impacts on immediate surroundings of the building (e.g. local ecosystems, noise)• indoor air quality• ozone depletion effects• provision of facilities that encourage environmentally sound behaviour of

occupants (e.g. recycling facilities)• efficiency of utilisation of water and• management of sewage and run-off’3

Buildings that address these issues and are good environmental performers and areconsidered to be ‘sustainable buildings.’ Some of the characteristics whichcontribute to the ecological sustainability of a City’s urban form include:

• the dwelling density of the housing stock;• the size of the population living in the area;• the proximity of the population to good public transport services; and the• the proximity of the population to shopping facilities.

Key Issues & Trends

• The City of Yarra is fortunate to be built on an urban form that is largelysupportive of sustainable urban living. Significant employment areas, forexample, are located within and proximate to the City, which has led to 60 percent of residents being employed locally. This has important environmentalimplications since short travel times reduce the use of the car and shouldencourage the use of public transport, bicycling or walking.

• Another important characteristic of the City’s urban form is the mixture of land useactivities within the City, which also decreases travel times. Other importantcharacteristics are the City’s grid like street network that provides easy access toall parts of the City for pedestrians. Yarra is fortunate to be serviced by arelatively good public transport system that includes relatively frequent tram, busand train services.

• Yarra’s building stock does not perform well from an environmental perspective –a characteristic of most Australian urban areas. Most buildings in Yarra, forexample, would have a low energy rating and are not designed to reduce waterconsumption, nor to reduce the amount of water released into the City’sstormwater system.

3 Adapted from A. Pears, pers. comm.

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Strategic Challenges

• How does the City of Yarra decrease the relatively poor environmentalperformance of the existing building stock and new developments?

• How does the City of Yarra manage the tensions between the developmentof ‘green’ buildings and the retention of the City’s heritage and generalurban character. This issue has arisen because elements of thesedevelopments were perceived to have a detrimental effect on the urbancharacter of a particular area?

• How does the City of Yarra manage the continuing decrease in the City’stotal population despite an increase in the number of dwellings in the City?

• How does the City of Yarra decrease the loss of mixed land uses largelydue to the conversion of industrial and commercial buildings to residentialones?

• How does the City of Yarra decrease the resident opposition to increasedhousing density?

Biodiversity and Natural Heritage

Biodiversity is defined as the variety of all life forms, the different plants, animals andmicroorganisms, the genes they contain and the ecosystems and populations ofwhich they form a part.4 Biodiversity conservation is about the conservation ofecosystem, species and genetic diversity. The conservation of natural heritage alsorefers to the conservation of living things, but it also includes the conservation of thenon-living things, like the City’s geology.

The conservation of biodiversity is important for ethical reasons, but for economicand ecological ones too. Biodiversity provides humans and other species with thoseecosystem services that support life on Earth. These services include the provisionof fresh water, clean air, healthy soil etc.

In the City of Yarra, there are three important waterways - the Merri and DarebinCreeks and the Yarra River – all of which support numerous native plants andanimals (including those living in the waterways themselves). The threats to Yarra’splants and animals include development pressures, particularly along the Yarra RiverCorridor, the impact of introduced species, which includes both exotic species likedogs and cats and native species outside their natural range, and pollution includingboth air and water pollution.

City areas also have an impact on the biodiversity of surrounding areas. The amountof litter, sediment and other pollutants entering the City’s waterways has a significanteffect on the condition of Port Phillip Bay. The City affects the biodiversity ofsurrounding areas in ways that are often much harder to see. For example, theCity’s consumption of electricity derived from fossil fuels is contributing to globalclimate change that in turn has a dramatic impact on the range and distribution of theworld’s ecosystems and species. 4 State of the Environment Advisory Council, Australia: State of the Environment 1996, CSIROPublishing, Canberra, p.4-23.

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Key Issues & Trends

• Like most other urban areas, the City of Yarra has lost much of its originalbiodiversity over the past two centuries. The clearing of land for urbandevelopment has been a major cause of this loss. Before European settlement,approximately eight ecological vegetation communities (EVCs) covered the City.The dominant ECV was the Plains Grassy Woodland. Others included theRiparian Woodland and the Floodplain Riparian Woodland, which were foundalong the Yarra River. Today, ‘few remnants of the native vegetation remainapart from those along the Yarra River and in small patches along northerncreeks.’5

• The loss of terrestrial habitat has had a dramatic impact on the number of plantand animal species that the City of Yarra now supports. From an estimated 200fauna species present at the time of European settlement, only 13 remain, mostof which are bats. Over the last twenty years, habitat restoration works havehelped restore the ecological integrity of degraded environments and have helpedbring native species back to the area. Improvements in the condition of the MerriCreek have led to an estimated 20 species of birds and animals returning to thecreek. This turn around is largely due to the work of the Merri Creek ManagementCommittee, the Friends of the Merri Creek and other community members.

• In its management of the natural environment, Council is fortunate to besupported by the work of the Merri Creek Management Committee and theDarebin Creek Coordinating Committee, both of which play a key role in natureconservation work in the City. Working with other Councils in the catchment, theyare involved in habitat restoration and community education.

Strategic Challenges

• How does the City of Yarra stop the continuing loss of vegetation from theCity, particularly along the Yarra River Corridor, due to a range of pressuresand threats?

• How does the City of Yarra stop the continuing impact of populations ofintroduced species (e.g. cats, rats, foxes and mice as well as overpopulations of native species (e.g. possums) and their impact on nativespecies and habitats?

• How does the City of Yarra manage the City’s biodiversity and naturalheritage with limited ecological information (e.g. information related to theprecise location of ecologically significant vegetation on properties alongthe Yarra River Corridor)?

• How does the City of Yarra manage the multiple organisations involved inland management within the City (including State departments andagencies and non-government organisations) and the need to ensure thatthe activities of each are coordinated to ensure the best outcomes for theCity’s biodiversity?

5 Biosis Research, ‘Past and Present Environmental Values of the City of Yarra, Australia’, reportcommissioned by the City of Yarra, 1999.

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Indigenous Land Management

Yarra has recognised that local indigenous people have a special connection andrelationship to the land. The city of Yarra is committed to recognising IndigenousLand management issues and therefore proposes that there be specific actions inthis strategy to address these issues

Key Issue & Trend

• The limited opportunities available to Indigenous people to participate in themanagement of the Yarra environment, particularly those sites of specialsignificance.

Strategic Challenge

• How does Yarra work progressively towards the recognition of indigenousissues in all relevant aspects of land management?

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Some Principles to Guide the Future of YarraMany of the major challenges Yarra faces require it to adopt and refine the conceptof a sustainable future in virtually every area of the organization. A strongcommitment to Best Value and to a sustainable future will also help Yarra as acommunity to better address the impact of the many global challenges we all face.

A Commitment to a Sustainable Future

The future of Yarra is intimately bound to a commitment to a new set of commonvalues and to the concept of a sustainable future. Sustainability is a difficult conceptto define because it is so all encompassing. It involves notions of balance, tolerance,respect for each other and the environment and acceptance of the natural limits ofsystems.

The literature on sustainability identifies four interlinked pillars of sustainability. Theyare ecological, social, economic and cultural sustainability. A commitment tosustainability recognises that all forms of sustainability are important, interrelated andintegrated.

Yarra's vision of sustainability is about:

• the maintenance of all kinds of diversity (the range of cultures, lifestyles, religions,businesses ecosystems, species and genes);

• the protection of natural, social, cultural and economic capital (the overall stock ofresources)

• the maintenance of the health and resilience of all life support, economic, socialand cultural systems and natural cycles, and,

• A commitment to quality and excellence in everything we do.

Towards a Sustainable Future

Yarra is committed to working with stakeholders including other municipalities andlevels of government, business and the community to help achieve sustainability.Yarra also acknowledges its pivotal role in helping inspire, organise and encouragethe community to act on its own behalf.

The Council acknowledges that it should state clearly the values that will put Yarra ona more sustainable path. To help achieve this end we have proposed a set ofprinciples forming a Sustainability Charter that states that Yarra will:

1. Work with the community and all levels of government to help achievesustainability and to find more sustainable ways of managing the future;

2. Acknowledge that we are dependent upon natural and social systems & helpreverse, where possible, adverse natural and social trends.

3. Recognize that humans share environments with others & many other species.

4. Recognize that accepted habits must change.

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Selected Bibliography

Australian Academy of Technological Sciences and Engineering (1997) Urban AirPollution in Australia: An Inquiry by the Australian Academy of TechnologicalSciences and Engineering, Commonwealth of Australia, Canberra, p.43.

B. Cotter & K. Hannon, (1999) Our Community Our Future: A Guide to Local Agenda21, Environment Australia, Canberra.

Biosis Research (1999) ‘Past and Present Environmental Values of the City of Yarra,Australia’, report commissioned by the City of Yarra.

Cities of Collingwood and Richmond, (1994) Collingwood-Richmond EnvironmentAction Plan, City of Yarra.

Commonwealth of Australia, (1992) National Strategy for Ecologically SustainableDevelopment, Commonwealth of Australia, Canberra,

D. Yencken & D. Wilkinson, (2000) Resetting the Compass: Australia’s Journeytowards Sustainability’, CSIRO Publishing, Melbourne.

M. Lumb (1997) ‘Towards a Sustainable City’, Discussion paper prepared for the Cityof Melbourne’, Enviro-Futures, Melbourne.

City of Melbourne, (1999) Benchmarking Melbourne Conference Papers, Melbourne.

Department of Infrastructure, (2000) Population Projections, Victorian Government.

Department of Infrastructure, (2000) Challenge Melbourne, The Draft MetropolitanStrategy, Victorian Government.

The Australian Bureau of Statistics 1996 Census of Population and Housing,Australian Commonwealth Government

CDATA 1996, The Australian Bureau of Statistics 1996 Census of Population andHousing, Australian Commonwealth Government

The Australian Bureau of Statistics Website (www.abs.gov.au), AustralianCommonwealth Government

The Melbourne Age, John Fairfax, (various articles Jan 2000 - Dec 2000)

The Melbourne Herald Sun, News Corp (various articles Jan 2000 - Dec 2000)

Clarke, A.C., (1964) Profiles of the Future, Pan Piper, London.

Jones B., (1982) Sleepers, Wake, Technology & the Future of Work, OxfordUniversity Press.

Gates, B. (1995) The Road Ahead, Penguin Books, England

City of Yarra (2000) Strategic Directions Draft document (unpublished)

City of Yarra (2000) Best Value Statement & Report (John Anderson)