Special Charge Scheme for Infrastructure Works Policy

The updated Special Charge Scheme for Infrastructure Works Policy was endorsed at the 24 April 2024 Council meeting which supercedes the 2018 version. This policy applies to SCS infrastructure projects such as upgrading roads and drainage installation. A special charge scheme (SCS) may be delivered under Section 163 of the Local Government Act 1989.

The policy outlines the decision-making process and criteria for a SCS, where providing these services or infrastructure items is deemed to provide a special benefit to property owners or certain community members. It also outlines cost apportionment principles in addition to the calculation of the maximum total levy for a SCS under Sections 163(2), (2A) and (2B) of the Act and the Guidelines made by the Minister for Local Government, according to Section 163(2C) of the Act.

Background

With external factors such as rate capping and extreme weather events in recent years, the demand for infrastructure improvements exceeds Council's currently available financial resources.

Special rate or charge scheme projects fill the gap between existing infrastructure, often provided as part of the original land development, and current community expectations.

Therefore, if it can be demonstrated that properties will receive a special benefit from implementing new infrastructure works and have a minimum two thirds (66.66 per cent) of support from benefiting property owners, Council will utilise the special charge or rate scheme process available in the Local Government Act to provide some or all of the necessary funds, depending on the level of special benefit and community benefit received from the works.

The calculation of the maximum total levy for a special charge scheme must comply with Section 163(2), (2A) and (2B) of the Act and the Guidelines made by the Minister for Local Government pursuant to Section 163(2C) of the Act.

In the case of typical road construction, the cost will be shared between Council and benefitting property owners. Refer to Table 2 of the updated endorsed policy. The apportionment of costs between individual benefiting property owners will be calculated based on the frontage length and access. Refer to Section 8.1. of the revised draft policy (Apportionment Principles). For drainage infrastructure, refer to Section 8.1.2. of the revised draft policy (Drainage Network).