Geelong Council has reviewed its special rates and charges process and will be recommending at its meeting to be held on Tuesday October 25, 2011 the adoption of the Policy Special Rates and Charges.
The policy defines what Council sees as a
"Special Benefit" enjoyed by ratepayers who are levied with a special rate or charge for roads, drainage, footpaths, carparks and streetscapes.
Below is an extract from the
Council Agenda 25 October 2011 (pdf format - 23.65mb) which includes the special rates policy and guidelines.
17. SPECIAL RATES AND CHARGES - REVIEW AND ADOPTION OF POLICY
Portfolio: Infrastructure - Cr Richards
Source: City Services - Engineering Services
General Manager: Gary Van Driel
Index Reference: Subject: Special Rates and Charges
Council Reports 2011
Summary
- A review of the special rate and charge process has been undertaken.
- A new Special Rates and Charges policy is presented to Council and this supersedes the relevant section of the currently used, Comprehensive Infrastructure Funding Policy.
- Council has in place Management Procedure, Debt Management – Special Rates and Charges, which addresses the issue of financial hardship.
- Part of the review process involved contact with all Councils in Victoria regarding the use of special rates and charges. Approximately two-thirds of Councils utilise the process.
- The special charge process has been particularly useful in facilitating a project forming part of the Geelong Ring Road Employment Precinct (GREP) and another major scheme is currently in the planning stage. It is doubtful whether those projects could proceed without the use of the special charge process.
- There are improvements which can be made in the community consultation phase along with the administration and particularly decision making and timing.
- There is scope within the existing administrative arrangements to evaluate and identify community benefit and apply this to schemes.
Recommendation
That Council adopt the Policy Special Rates and Charges (Appendix 17-1) and the attachment - Contribution Guidelines.
COUNCIL POLICY
1. PURPOSE
To set out the principles for the use of special rates and charges by Council, for the provision of infrastructure or services and their application in a fair, equitable and consistent manner.
2. SCOPE
This policy applies to the provision of "first up" infrastructure where it can be demonstrated that special benefit applies to those properties included in the scheme. The policy also covers the provision of on-going services to properties or a group of properties which also must satisfy the special benefit test.
The special rate and charge process broadly includes the following:
- Community consultation.
- The special benefit test.
- The relevant legislation and precedent.
- Scheme preparation and apportionment.
- Council processes leading to the scheme determination.
3. REFERENCES
- The Local Government Act 1989
- Special Rates and Charges Ministerial Guidelines – September 2004
- Planning and Environment Act 1987
- Various determinations by the Victorian Civil and Administrative Tribunal and other Courts.
- Council Policy – "Community Consultation" CPL 10.2
- Council Management Procedure – Debt Management – Special Rates and Charges" MPR510.2.1.1
4. DEFINITIONS
"Special benefit" – is a benefit received by those owners included in the scheme that is over and above that received by others who are not the subject of the scheme.
5. COUNCIL POLICY
This Council has utilised the special rate and charge provision since amalgamation in 1993. Some of the former member Council's also used private street scheme and drainage provisions of the Local Government Act 1958 from a period of around 1960 onwards.
Financial resources available, in most cases do not enable the construction of new infrastructure or if it can be programmed it would be significantly delayed. Council will continue with its special rate and charge program in order to provide new, up-front infrastructure and provide services. In the preparation, administration and execution of special rate and charge schemes, Council shall consider fairness, equity and consistency as fundamental principles.
The initiation of a special rate or charge scheme will generally come from the property owners themselves however there may be instances where for public safety or reasonable amenity, Council may promote a scheme. Council will attempt to provide obvious in-fill infrastructure through the special rate and charge process where applicable.
Drainage systems may be provided via the process and unless otherwise specified will be undertaken on the basis of alleviating public health issues, utilising Section 163B(1) of the Act.
As each special rate or charge scheme is unique, a consultation program shall be tailored to suit specific needs. Council policy CPL 10.2 shall be used as a guide. All property owners shall be given the opportunity to provide feedback to Council and discuss issues with Council Officers.
The preparation of special rate or charge schemes shall be undertaken by experienced Council Officers. The precedent created by reviewing bodies such as the Victorian Civil and Administrative Tribunal, Courts and Review Courts shall be taken into consideration when formulating schemes.
In every instance, special benefit to properties and owners, shall be evaluated and schemes will only proceed where this can be established.
The preparation and administration of special rate and charge schemes shall be in accordance with the Act and the Ministerial Guidelines, September 2004. The attachment to this policy "Contribution Guidelines" provides guidance. As schemes are generally unique there is no set method of apportioning costs, however, the Unit Cost method is preferred.
The basic, relevant infrastructure shall be included in a special charge scheme. Any works outside the scope or re-working of existing infrastructure shall be funded by Council.
In providing infrastructure, Council shall apply the standard which is used for other non-scheme projects. References used may be standard drawings, specifications, current practice and the application of reasonable standards and practice. In instances where property owners request a standard of infrastructure over and above the standard referred to above, the full cost attributed to the higher standard shall be funded by the property owners.
Where required, a Submissions Panel Hearing will take place, affording property owners the opportunity to address Councillors in a relatively informal setting. The Panel will formulate their recommendation as quickly as is practicable and this will form the basis for the recommendation to Council.
From time to time, Council may receive, or provide from its own range of funding streams, ex-gratia contributions to special rate or charge schemes. These funds are to be applied to offset the overall cost of the project and not specific components. Council may consider schemes from time to time, of a particular and special nature. For reasons unique to a particular scheme Council may resolve to apply a funding arrangement which differs to that shown in the attached "Contribution Guidelines". This shall be project specific, only.
Council, in considering a scheme, may elect to adopt, abandon or modify a project. The Victorian Civil and Administrative Tribunal may review a scheme on owners request. Council Officers will represent Council's decision including reasons why the scheme should proceed.
Where an infrastructure Scheme is adopted, with or without review, a public tender process shall be used to appoint a suitable contractor. Council's Supervising Engineer shall manage the project including any further discussions and negotiations with property owners.
Once the project has reached final completion and all costs have been aggregated, a finalisation report will be presented to Council. Any cost adjustments will be in accordance with requirements of the Act.
6. QUALITY RECORDS
Quality Records shall be retained for at least the period shown below.
| Record Retention/Disposal |
Responsibility |
Retention Period |
Location |
| Council Reports |
Corporate Records |
Ongoing |
DataWorks |
| Minutes |
Engineering Services |
7 years |
DataWorks |
| Scheme details, working documents |
Engineering Services |
7 years |
EngineeringServices |
7. ATTACHMENTS
CONTRIBUTION GUIDELINES
The following provides a guide for Council regarding financial contribution arrangements for the various types of special rate and charge schemes.
1. Road Infrastructure
Property owners, where special benefit can be established, pay for full cost of works as base case. In certain circumstances a contribution to a scheme, by Council or other parties is warranted and this includes:
- Council owned land abutting the works.
- Land owned by the Crown or other Authority which is unable to be joined in the scheme.
- A standard road pavement width of 7.5m for residential areas and 10.0m for industrial areas shall be used as a benchmark and any width greater than this is to be funded from sources other than property owners.
- Community benefit shall be assessed on each project and the cost attributable to this benefit, paid for by Council.
- Footpaths shall be funded on the basis of 50% Council and 50% property owners. Owners contribution may be reduced subject to community benefit analysis.
- Rural roads will be assessed for charging purposes on a 6.0m road pavement and a maximum charge of $15,000 applied to property owners. This will be the subject of CPI increases commencing 1 July 2012.
2. Drainage Infrastructure
- Easement drainage over private property shall be fully funded by benefiting owners.
- Main drainage shall be considered on a catchment basis and funded by benefiting owners.
3. Carparks and Streetscapes
- Generally to be the subject of consideration by Council on an individual basis.
4. Marketing, Promotion and Business Development
- Program to be fully funded by business / commercial owners within the specified catchment.
- Properties used exclusively for residential purpose to be exempted.
Update 7 November 2011 - Council adopted / passed the recommendations on 25 October 2011. The minutes are available in
pdf format (23mb)
