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Agenda Item 5.1 COUNCIL REPORT

31 July 2007 , , AFL GRAND FINAL WEEK, CUP CARNIVAL AND ARU INTERNATIONAL RUGBY MATCH 2007/2008 FUNDING

Committee Marketing and Events

Presenter Cr Jetter

Purpose

1. In accordance with a resolution of the Council at its Meeting on 26 June 2007, the purpose of this report was:

1.1. to seek approval from the Marketing & Events Committee to sponsor the city activation and leveraging program for one Melbourne Iconic Event, 2007 AFL Grand Final Week, as an interim measure prior to implementation of the new Triennial Sponsorship Process; and

1.2. to seek reaffirmation from the Marketing & Events Committee of the City of Melbourne Events Sponsorship Strategy approved on 8 May 2007 and funded through the 2007/2008 Council Budget Cycle which allocates sponsorship support to the city activation and leveraging programs for Melbourne International and Special Events (Australian Open, Australian Grand Prix, Carnival and ARU International Rugby).

Consideration at Committee

2. As a result of consideration at Committee, and after debate, the Marketing and Events Committee endorsed the recommendation as detailed below.

Recommendation

3. That Council:

3.1. approve on a triennial basis sponsorships for the staging of city activation and leveraging programs for the following events: AFL Grand Final Week ($250K), Australian Open ($120K), Australian Grand Prix ($100K), Melbourne Cup Carnival ($150K) and ARU International Rugby ($100K);

3.2. request a report to the Marketing and Events Committee on the Sustainability assessment of Melbourne Iconic Events, particularly the Australian Grand Prix; and

3.3. include triple bottom line assessment as part of the City of Melbourne’s Event Assessment Tool

Council Report Attachment: 1. Marketing and Events Committee, Agenda Item 5.4, 10 July 2007 Page 1 of 12

MARKETING AND EVENTS COMMITTEE Agenda Item 5.4 REPORT

10 July 2007 AUSTRALIAN OPEN, AUSTRALIAN GRAND PRIX, AFL GRAND FINAL WEEK, MELBOURNE CUP CARNIVAL AND ARU INTERNATIONAL RUGBY MATCH 2007/2008 FUNDING

Division Economic Development

Presenter Scott Chapman, Director Economic Development

Purpose

1. In accordance with a resolution of the Council at its Meeting on 26 June 2007:

1.1. To seek approval from the Marketing & Events Committee to sponsor the city activation and leveraging program for one Melbourne Iconic Event, 2007 AFL Grand Final Week, as an interim measure prior to implementation of the new Triennial Sponsorship Process; and

1.2. To seek reaffirmation from the Marketing & Events Committee of the City of Melbourne Events Sponsorship Strategy approved on 8 May 2007 and funded through the 2007/2008 Council Budget Cycle which allocates sponsorship support to the city activation and leveraging programs for Melbourne International and Special Events (Australian Open, Australian Grand Prix, Melbourne Cup Carnival and ARU International Rugby).

Recommendation from Management

2. The Marketing & Events Committee recommend that Council approve in the 2007/2008 financial year cash sponsorships for the staging of city activation and leveraging programs for the following events: 2007 AFL Grand Final Week ($250K), Australian Open ($120K), Australian Grand Prix ($100K), Melbourne Cup Carnival ($150K) and ARU International Rugby ($100K) in the 2007/2008 financial year.

Key Issues

3. The above Melbourne Iconic Event and Melbourne International and Special Events have played an integral role in shaping the city, attracting tourists and raising the profile of Melbourne nationally and internationally. Melbourne’s global reputation as a Sporting Capital can also be attributed to the role the City of Melbourne plays.

4. As per previous years, Council funding would not be directed into the staging of the actual ticketed event (e.g. Melbourne Cup at ), but rather to the running of city activation and leveraging programs to benefit businesses, profile the city and increase the number of city visitors. Funding would also be used to assist disadvantaged sectors of the municipality with access to ticketed events, sporting equipment and other opportunities which may otherwise be unavailable.

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5. With the exception of the Australian Grand Prix Corporation, all sporting bodies running these events are not for profit and any proceeds they make from ticketed events are invested back into the development of the sport at the “grass roots” level. Without Council funding the city activation and leveraging programs run by these sporting bodies would cease, be significantly reduced or relocated to another location outside the City of Melbourne.

6. The Australian Grand Prix Corporation is a Victorian statutory corporation, established by the State Government to promote Melbourne and to the rest of and the world, through staging global motor sport events. These events also provide business, social and sporting opportunities for Melburnians and Victorians.

7. City of Melbourne’s Pedestrian Activity Reports clearly demonstrate increases in pedestrian activity during these events (reports are available to Council upon request). For example, Friday 29 September 2006 (AFL Grand Final Parade day) recorded the highest level of activity for the month and demonstrated a 17.7 per cent increase on the previous Friday. The level of pedestrian activity on this day was similar to the high levels recorded on the Fridays during the Commonwealth Games demonstrating the significant attraction of this event.

8. Council’s funding of the city activation and leveraging programs for these events provides many opportunities to the city that cannot be purchased outside of the sponsorship. For those remaining opportunities that can be purchased, the cost increases significantly as a non-partner rate applies.

9. All the sponsorships provide significant value for Council’s investments specifically via the delivery of city activation and leveraging programs. These programs deliver many benefits to Council and its constituents and these are summarized below. (Please note the figures quoted are from Federation Square counters, Police estimates, surveys and independent evaluations).

AFL Grand Final Week

10. The Australian Football League, with City of Melbourne’s input and support, has grown the AFL Grand Final Week into one of Melbourne’s Iconic Events. The week consists of the AFL Grand Final Parade, AFL Grand Final Live Site including an appearance by the AFL Premiership Team and AFL Grand Final Week Activities including the Brownlow Medal Footy Panel, Brownlow Medal Fashion Preview involving city businesses, Auskick Clinic, Kid’s Footy Show featuring Dipper, AFL player appearances, Australian Idol Concert, AFL Grand Final Footy Preview Panel, interactive activities and displays and a concert from a leading Australian band.

11. Over 248,000 people from Melbourne and interstate attended these free city activities in 2006 and the AFL Grand Final Week Activities recorded a 9.2 per cent increase in numbers from 2005. Importantly, 58 per cent of people surveyed attending the AFL Grand Final Parade were from interstate and 96 per cent of people were not working in the city on the day of the parade. These activities improve and extend the city experience and enable people without a ticket to join in all the excitement of the AFL Grand Final.

12. The 2006 AFL Grand Final injected almost $36 million of economic activity into the local economy. The level of economic activity has grown as the AFL Grand Final has been turned, from a one day event on a Saturday afternoon, to a six day festival of activity in the heart of Melbourne. It encourages interstate visitors to stay longer in the city and for Melburnians and tourists alike to visit the city to take part in the free activities.

13. Council funding enables the following:

13.1. running of the AFL Grand Final Parade to meet all risk/safety requirements with quality content and audio/visual provision;

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13.2. running of Grand Final Week Activities and a Live Site with quality content to appeal to football fans of all ages and meeting all risk/safety requirements;

13.3. provision of ticketing and equipment for Community Services and the Active Melbourne Program to aid disadvantaged groups in the municipality and to encourage participation amongst youth groups;

13.4. destination promotion of Melbourne nationally through prominent branding on the ground at the MCG and Telstra Dome throughout the Finals Series and Grand Final (valued at the equivalent of $108,000 of national television exposure for the three matches in 2006);

13.5. a range of marketing opportunities (eg. AFL Record) to promote different business sectors (eg. bars and restaurants) in the city and Docklands, to people attending matches at either the MCG or Telstra Dome; and

13.6. provision of ticketing for Triple M and Herald Sun promotions to encourage increased numbers of visitors to the city and Docklands.

14. The free AFL Grand Final Week city activities cost the AFL $575,000 to run in 2006 which includes dressing the city during September with city banners, Melbourne Visitor Centre signage and running extensive advertising to encourage people to visit the free activities. The AFL have also had to meet the continued rising costs of staging events in the city with limited increase in Council funding over the past four years.

15. The removal of or decrease in Council funding would result in a limited AFL Grand Final Week program of activity being run in the city which will negatively effect the city experience, reduce visitor numbers and the associated spend in city businesses by these visitors. All other destination, community and marketing opportunities would also cease or be significantly reduced.

Melbourne Cup Carnival

16. The City of Melbourne and Victoria Racing Club have worked together in partnership to make the Melbourne Cup Parade and the Melbourne Cup Carnival Live Site two week program of activity the largest free events of the Carnival held off the racetrack. The Live Site Program consists of press conferences, the Melbourne Cup Carnival Official Launch, live racing coverage, children’s activities, promotions and giveaways, autograph signings, live music including a post Melbourne Cup Party performance by a multi-award winning band and other Melbourne Cup Carnival related events.

17. Over 440,000 people attended these free city activities in 2006 with many people visiting the city for the parade, on a day most Melburnians take off work, prior to the Melbourne Cup holiday the next day. These activities improve and extend the city experience and enable people without a ticket to join in all the excitement of the Melbourne Cup Carnival.

18. The Melbourne Cup Carnival continues to generate substantial economic benefits for the Victorian and Melbourne economies. In 2006, more than $419 million in gross economic benefit was generated by the Carnival, equating to two thirds of the entire benefit. It is therefore the key driver of the entire Spring Racing Carnival.

19. Council funding enables the following:

19.1. running of the Melbourne Cup Parade to meet all risk/safety requirements with quality content and audio provision;

19.2. running of the Melbourne Cup Carnival Live Site two week program of activity with quality content to appeal to people of all ages meeting of all risk/safety requirements;

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19.3. destination promotion of Melbourne nationally and internationally through prominent branding on the ground in the Mounting Yard throughout the Melbourne Cup Carnival (valued at the equivalent of $109,000 of national television exposure for the 2006 event);

19.4. a range of marketing opportunities (eg. race book advertising and TVC’s on the 14 super screen at Flemington) to promote different business sectors, such as retail in the city, to people attending the Melbourne Cup Carnival; and

19.5. provision of ticketing for a Herald Sun promotion to encourage shopping in the city for racing attire.

20. The free Melbourne Cup Carnival city activities cost the Victoria Racing Club $530K to run in 2006 with Council contributing $150K. Like the AFL, the Victoria Racing Club has had to meet the continued rising costs of staging events in the city, with limited increase in Council funding over the past three years. The Victoria Racing Club also, at its own expense, dresses the city during the Melbourne Cup Carnival with city banners at a cost of $45,000 and runs extensive advertising to encourage people to visit the free activities.

21. Demonstrating that the relationship is a genuine partnership the Victoria Racing Club sponsor, the City of Melbourne’s Motorola Melbourne Spring Fashion and has recently agreed to provide $40K of sponsorship to the 2007 event.

22. The removal of or decrease in Council funding would jeopardise some or all of the free Melbourne Cup Carnival program of activity being run in the city. This will negatively impact on the city experience, reduce visitor numbers and the associated spend in city businesses by these visitors. All other destination, community and marketing opportunities would also cease or be significantly reduced.

Australian Open

23. The Australian Open attracted a record 554,000 visitors from Melbourne/Victoria (67 per cent), interstate (23 per cent) and overseas (10 per cent) in 2007 with a gross economic benefit of $241.6 million. In 2007, the Australian Open generated 552,000 additional visitor nights to the city. A large number of event patrons tend to come from medium-high income groups with 67 per cent being female aged 45 plus. This event is particularly important because it increases the number of visitors to the city in January, which is a quiet time of year with a large number of people away on holidays. It is also a particularly quiet time for many city restaurants which normally rely on city workers for their day to day business. Consequently, with Tennis Australia’s support, the City of Melbourne conducts its largest sports marketing leveraging program around this event. This program is centred on $15, $30 and $45 city restaurant offers to increase patronage before and after the event, thereby increasing expenditure in participating business. Feedback over the years from participating businesses has been extremely positive with many reporting being at capacity for many days of the event.

24. The City of Melbourne also established a four day Live Site Program for the men’s and women’s semi finals and finals with Tennis Australia, in order for people without a ticket to join in all the excitement of the Australian Open finals. In 2005 over 10,000 people turned out to the Live Site to see Lleyton Hewitt go down to Marat Safin in the final.

25. Council funding enables the following:

25.1. a range of marketing opportunities to promote the restaurant offer including through the Australian Open Program (significant space is provided), Australian Open E-Newsletters, Australian Open Daily Draw & Schedule, Australian Open Radio (includes participating restaurant reviews from a leading food critic), Media Releases, PR opportunities, and distribution of flyers to staff and players;

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25.2. provision of ticketing and merchandise to run a Herald Sun newspaper competition linked to the promotion of the city restaurant offer;

25.3. provision of Ground Passes to participating restaurants in the lead up to the Australian Open to be able to offer to anyone spending $20 or more in their business as a means of increasing spend;

25.4. provision of merchandise display kits, free of charge, to city businesses (primarily retail);

25.5. provision of ticketing for Community Services to aid disadvantaged groups in the municipality; and

25.6. destination promotion of Melbourne nationally and internationally through the guarantee of a media photo of the men’s or women’s final winner in a city location. Involvement in the ball kid’s welcome and the subsequent media package that is aired world wide as part of the tournament coverage.

26. Tennis Australia also, at its own expense dresses, the city during the Australian Open with city banners and Melbourne Visitor Centre signage. They also pay to hire the top level of the Melbourne Visitor Centre to sell Australian Open tickets, hire City of Melbourne’s information booth and staff to promote Melbourne on site at the event and continue to drive the free Live Site Program at Federation Square which 125,800 people visited in 2007.

27. The removal of or decrease in Council funding would cease or decrease the leveraging program which would result in a negative impact to city restaurants. Whilst some of the marketing opportunities can be purchased without a sponsorship agreement, the cost increases significantly as there is a different rate for non-event partners. In addition, many of the other marketing opportunities would no longer be available, as they require the use of Australian Open intellectual property. All other destination and community opportunities would either cease or be significantly reduced.

Australian Grand Prix

28. The Australian Grand Prix occurs approximately three kilometres outside of the city centre in the City of Port Phillip. The City of Melbourne has worked with the Australian Grand Prix Corporation to establish an activation and leveraging program to ensure that the city also shares in the economic, visitation and destination profiling benefits this event brings. This consists of a five day free program of activity titled the “F1 Family Experience” which incorporates displays, interactive activities, racing identity appearances, movies, live bands, giveaways and competitions.

29. Over 90,000 people attended these free city activities in 2007, which improve the city experience and enable people without a ticket to join in all the excitement of the Australian Grand Prix. To profile the City of Melbourne, the Australian Grand Prix Corporation also conducts a media activity in the city which has, in the past, included the unveiling of the Celebrity Race Drivers, Pit Stop Challenges with V8 and F1 cars and celebrity Go-Kart races. The City of Melbourne also uses the event to conduct a marketing leveraging program to encourage patrons back into the city rather than other destinations to increase city business spend. Over the four days of the 2007 Australian Grand Prix approximately 150,000 people traveled between the city and the event by tram.

30. Council funding enables the following:

30.1. running of the F1 Family Experience with quality content to appeal to motor racing fans of all ages meeting of all risk/safety requirements;

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30.2. provision of ticketing for Community Services to provide an opportunity not normally available to disadvantaged groups in the municipality;

30.3. destination promotion of Melbourne nationally through a city media activity;

30.4. a range of marketing opportunities (eg. Official Program and TVC’s on screen at the track) to promote the city as “the place to go” post event; and

30.5. provision of ticketing for a MX promotion to encourage an increase in the number of city visitors.

31. Council funding does not cover all costs associated with running the free F1 Family Experience city activities and the media activity. The Australian Grand Prix Corporation also provides significant funding and has had to meet the continued rising costs of staging events in the city. The Australian Grand Prix Corporation also at its own expense dresses the city with city banners and runs extensive advertising to encourage people to visit the free activities.

32. The removal of or decrease in Council funding would result in a limited Australian Grand Prix program of activity being run in the city which will negatively effect the city experience, reduce visitor numbers and the associated spend in city businesses by these visitors. All other destination, community and marketing opportunities would either cease or be significantly reduced. As previously stated the event is held in another municipality and for City of Melbourne to fully leverage this Melbourne International and Special Event, an ongoing financial contribution from Council is required.

ARU International Rugby Matches

33. In the past the Australian has forged an excellent working relationship with the City of Melbourne on the highly successful matches at the MCG in 1997, 1998 & 2007, the 2001 British & Irish Lions Tour and the 2003 .

34. Council last provided funding in 2003 for the establishment and running of a highly successful free Rugby World Cup City Festivities and Live Site Program. Council has not provided funding since then, however it was approached in 2006 by the Australian Rugby Union after Melbourne was awarded a four year program (2007 – 2010) of Test Matches including two Bledisloe Cup Matches.

35. Australian Rugby Union is seeking City of Melbourne funding for the upcoming 2008 International Test Match between Australia and Ireland with additional funding in subsequent years for the 2009 (Australia vs. Italy) & 2010 (Bledisloe Cup) matches, which would need to be assessed through the Council Budget Cycle as outlined in the City of Melbourne Events Sponsorship Strategy 2007- 2010.

36. Previous Bledisloe Cup and International Rugby Test Matches have attracted significant numbers of international and interstate visitors to Melbourne, delivered considerable economic benefit to the city and have been extremely well-received with strong attendances at all matches. For example:

36.1. the historic British and Irish Lions Test in 2001 drew more than 15,000 international visitors to Melbourne;

36.2. matches of the , including quarter-finals and the Australia vs. Ireland pool match, delivered approximately $170M in economic impact to Victoria; and

36.3. 20,300 (as per ticket sales at 8 June) international and interstate visitors to the 2007 Bledisloe Cup (attended by 79,000 people).

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37. As an Australian Rules city, Rugby Union has traditionally been a minority sport in Melbourne. The success of previous International Test Matches, the launch of the new national rugby competition, (including the newly established Melbourne Rebels team and the construction of the new, purpose-built rectangular pitch stadium), not only demonstrates that a significant base of Rugby Union supporters exists in Melbourne (who are keen to attend quality matches involving provincial and international teams). It also shows that Rugby Union is set to take a permanent place in Melbourne’s sporting landscape and major events calendar.

38. In 2007/2008 City of Melbourne funding will be directed by the Australian Rugby Union towards the promotion of the 2008 Ireland versus Australia Test Match locally and internationally and to the creation of a festival atmosphere truly reflective of a major international Test Match. This will capitalise on the increased visitor numbers to the economic benefit of city stakeholders and to ensure city activation is maximised.

39. The proposed program of support for the 2008 event includes:

39.1. team appearances;

39.2. open training session including signing session;

39.3. city decorations/dressing;

39.4. local marketing and ambient activity;

39.5. bar and restaurant promotions (specifically targeting the Irish community);

39.6. dedicated marketing and promotion leveraging campaign;

39.7. dedicated PR and communications leveraging campaign;

39.8. destination promotion of Melbourne through a city media activity; and

39.9. grass roots/junior club promotional activity.

40. The financial support provided by the City of Melbourne will enable the Australian Rugby Union to significantly strengthen and enhance the event experience for visitors and Melburnians alike, most specifically via the surrounding and supporting event activity listed above, to ensure maximum value-return to the city and its stakeholders. In addition, the staging of International Test Matches at this time of the year helps to build Melbourne’s events calendar during a traditionally quiet time of year.

41. Not funding or reducing the level of funding for the 2008 International Test Match against Ireland will significantly impede City of Melbourne’s ability to fully leverage the stated benefits to the city.

City of Melbourne’s Event Assessment Tool

42. The above Melbourne Iconic Event and Melbourne International and Special Events and their city activation and leveraging programs have been assessed by the City of Melbourne’s Event Assessment Tool. (Event Assessment summaries can be provided to Council upon request). Each event scores well by meeting the following objectives:

42.1. build relationships: the events provide the City of Melbourne with an opportunity to meet key people and stakeholder groups. These relationships will be developed locally, nationally and internationally and could be further leveraged into formal or informal networks;

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42.2. build reputation: the events enhance the City of Melbourne’s reputation either broadly or specifically within a particular sector;

42.3. increase visitors: the events add to the number of people who would normally come into the city at that time, thereby providing potential benefit to businesses within the municipality. To increase economic benefit, building business links or developing targeted business programs is strongly encouraged;

42.4. promote location: the events highlight particular areas, precincts or venues within the municipality;

42.5. raise profile: the events lift the status, awareness and profile of the City of Melbourne through the media exposure it receives. To help position Melbourne as the events capital - international profiling is the most desirable while national profiling carries more weight than local profiling; and

42.6. support a community: the events engage a well defined sector of the community and through the activity foster a spirit of togetherness and well-being; educate both the community group and the wider population; promote tolerance and understanding throughout the broader population; encourage participation; and enable the essence of the activity to be celebrated and experienced widely.

Time Frame

43. The events outlined in this report all fall within the 2007/2008 financial year.

Relation to Council Policy

44. Council policies that relate to this report include:

44.1. City Plan 2010 Strategic Direction 3.3: “Promote, celebrate and further develop Melbourne as a City for the Arts and a Sporting Capital with a rich and vibrant cultural life” has objective to: “Support and encourage cultural activity within the public domain”.

44.2. City Plan 2010 Strategic Direction 3.9: “Attract, facilitate and maximise benefits of major city events and festivals: has the objective to: “Facilitate the provision of event facilities and encourage major city events and festivals in a range of public spaces throughout the city”.

45. Council strategies that relate to this report include:

45.1. Melbourne Marketing Strategy 2007-2011; “Melbourne’s destination strengths are: Bars and Nightlife, Dining, Culture & Arts, Events, Parks & Gardens, Precincts, Laneways & City Character, Retail (shopping & fashion), Sport, Melbourne’s Waterfront, Design, Creativity & Innovations and Attractions & Entertainment”.

45.2. Melbourne Retail Strategy 2006-2012: “Facilitate greater integration of Melbourne’s events calendar and the retail offer”; “Influence event programming to encourage activity within the retail core”;

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“Encourage events to extend into the public domain and streets beyond just the ticketed venues to increase city visitation and experience”; “Continue to theme the city’s retail core to reflect major events”; “Ensure the greater city experience is communicated in all major events supported by the City of Melbourne”; “Work with retailers on joint promotions and marketing campaigns that leverage off of key events”; and “Develop a varied year round events calendar to stimulate visitation to the city and retail core”.

Consultation

46. Consultation was conducted in line with the City of Melbourne Events Sponsorship Strategy 2007- 2010.

Government Relations

47. The City of Melbourne Events Sponsorship Strategy 2007-2010 support the “10 Year Tourism and Events Industry Strategy” released by the State Government of Victoria in October 2006.

Finance

48. Funding has been approved through the Council 2007/2008 Budget for Melbourne Iconic Events and Melbourne International and Special Events.

Legal

49. It is open to Council to make the recommendation as put in this report as it is within the objectives and functions of the Council.

Comments

50. The City of Melbourne has a number of objectives that are supported by strategies prepared by various Branches of the City of Melbourne and approved by Council. The City of Melbourne is committed to ensuring events conducted within the municipality make an effective contribution to Council achieving its’ corporate objectives. The City of Melbourne Events Sponsorship Strategy 2007-2010 and the Melbourne Iconic Events and the Melbourne International and Special Events outlined within the Strategy support and complement a range of recently adopted Council policies and strategies.

Background

51. On 8 May 2007 the Marketing and Events Committee approved the City of Melbourne Events Sponsorship Strategy 2007-2008.

52. The Strategy classified the Melbourne Food & Wine Festival, Melbourne Cycling Festival and AFL Grand Final Week as Melbourne Iconic Events.

53. The Strategy classified the Homeless World Cup, Australian Open, Australian Grand Prix, Melbourne Cup Carnival and ARU International Rugby Matches as International and Special Events.

54. Melbourne Iconic Events will be directed to apply through the new Triennial Sponsorship Process.

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55. Funding decisions relating to some Melbourne Iconic Events need to be made before the implementation of the new Triennial Sponsorship Process due to timing issues.

56. The Strategy approved the funding of International and Special Events through the yearly Council Budget Cycle.

57. On 26 June 2007 in the course of adopting the 2007/2008 budget, the Council resolved:

“1.1.6 That the grants and sponsorship funding allocated in the 2007/08 annual plan and budget for the following events are referred back to the Marketing & Events Committee before final approval of the allocation of funding is made: 1.1.6.1 Australian Open (Tennis Australia); 1.1.6.2 Australian F1 Grand Prix; 1.1.6.3 AFL Grand Final Week; 1.1.6.4 Melbourne Cup Carnival; and 1.1.6.5 Rugby International (Bledisloe Cup)”.

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FINANCE ATTACHMENT

AUSTRALIAN OPEN, AUSTRALIAN GRAND PRIX, AFL GRAND FINAL WEEK, MELBOURNE CUP CARNIVAL AND ARU INTERNATIONAL RUGBY MATCH 2007/2008 FUNDING

Funding has been approved through the Council 2007/2008 Budget under Grants & Sponsorships for the five events noted in the report. A total $720,000 in total has been provided.

Joe Groher Manager Financial Services

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LEGAL ATTACHMENT

AUSTRALIAN OPEN, AUSTRALIAN GRAND PRIX, AFL GRAND FINAL WEEK, MELBOURNE CUP CARNIVAL AND ARU INTERNATIONAL RUGBY MATCH 2007/2008 FUNDING

No direct legal issues arise from the recommendation made in the report.

Section 3C (2) of the Local Government Act 1989 (“the Act”) provides that the facilitating objectives of Council include:

"(a) to promote the social, economic and environmental viability and sustainability of the municipal district;

(c) to improve the overall quality of life of people in the local community;”.

Section 3E(1) of the Act sets out the functions of Council including:

“(a) advocating and promoting proposals which are in the best interests of the local community;”.

Section 7 of the City of Melbourne Act 2001 sets out additional objectives, including:

“(a) to ensure a proper balance within its community between economic, social, environmental and cultural considerations within the context of the City of Melbourne’s unique capital city responsibilities;”.

It is open to Council to make the recommendation as put in the report as it is within the objectives and functions of the Council.

Kim Wood Manager Legal Services