Geelong Council Meeting 14 December 2010 - Question Time - Issues related to the Drysdale Clifton Springs Drainage Proposal

Below are the questions asked by ratepayers and the answers provided by the City of Greater Geelong to issues raised regarding the Drysdale and Clifton Springs Drainage Proposal. The questions and answers were published in the Minutes of Council meeting (14 Dec 2010) provided in pdf format (3.64mb) on the Council's website

Question: Cheryl Hardy asked the following question on behalf of Joan Hardy: Re Agenda Section B Reports Item 3 14 Dec 2010. As governed by the Local Government Act 1989, the basic framework of a special rate or charge scheme is that there is an initial proposal, it is advertised, participants can place submissions or objections before Council and then Council arbitrates on the scheme. Owners of affected properties have not been afforded the opportunity by Council to comment on the deferral proposal as detailed in Recommendation B. This is a disappointing move by Council to not comply with the requirements of the Act. As such said owners won't have the usual allotted time to consider nor any time at all to consider and respond to this new addition to Council's proposal. Why is Council taking this path and not affording ratepayers the opportunity to comment on the deferred payment charge scheme?

Answer: Gary Van Driel, General Manager City Services, responded that Council has followed the Special Charge process under S163 of the Local Government Act; undertaken the Intention to Declare, notified owners, invited submissions, heard submissions via the submissions review panel and prepared the declaration report based on recommendations from the submissions review panel. Property owners will have the opportunity to lodge an application for review with VCAT within one month of receipt of the levy notice.

Question: Cheryl Hardy asked the following question on behalf of Bryce Hardy: Re Agenda Section B Reports Item 3 14 Dec 2010. Report Background. The report states the scheme includes 20 properties and 18 owners. 14 objections were received to the proposed scheme. Section 163B(6) of the Local Government Act 1989 states: Council cannot make a declaration if the Council receives objections from persons who will be required to pay the special rate or special charge in respect of a majority of the rateable properties in respect of which the special rate or special charge would be imposed. Council therefore should not proceed with this special charge. Why is Council ignoring the 14 objections and there not complying with the Act?

Answer: Gary Van Driel responded that under Section 163B (2) of the Local Government Act 1989 Council can make a declaration to levy a special rate or special charge to recover costs where the scheme is (a )a drainage scheme that Council has declared is required for reasons of public health. This includes recovery of more than two thirds of the cost and also be applied if the majority of rateable properties object.

Question: Cheryl Hardy asked the following question: Re Agenda Section B Reports Item 3 14 December 2010. 8 months ago you first raised this special charge scheme for drainage. 14 objections were received including those from pensioners. On Friday you have released revisions to this scheme and have not allowed the affected parties to comment. The affected ratepayers have not been able to examine this new proposal in detail and now you want Council to vote on it. Why are you not following due process as laid down by the Local Government Act?

Answer: Gary Van Driel responded Council has followed the requirements of the Local Government Act. Council is now in the position where it may abandon, modify or adopt the scheme. If objectors are unhappy with the position of Council they have the right to seek review through VCAT.

Patrick Hughes asked the following questions:

Question 1): When and from whom did council officers receive advice about the legality of proceeding with the option to defer payment - a policy that has not been exhibited for public scrutiny and comment?

Answer: Gary Van Driel responded that Council has taken legal advice – not a policy of Council but has been specific.

Question 2): Is the proposed 5% p.a. interest on a deferred special charge simple or compound; and how does the council justify charging landowners in Central Road 5% interest p.a., when the council will incur no continuing expense after it pays its share of the cost of the drain in Central Road?

Answer: Gary Van Driel responded that the 5% interest is compound. The 5% on the deferred payment scheme goes towards offsetting the interest that Council would incur at the end of a five year period should income not be recovered in a timely manner from the special charge scheme. Cr Farrell indicated that when Council discussed the scheme an undertaking was that Council would allow five years for residents to pay. When Council adopted the budget in June 2010 that deferment was not part of that process.

As was previously advised Council has deferred making a decision on this item until the Council meeting to be held on 25 January 2011.