Special Charge Schemes

A special charge scheme is a funding method that allows the Shire to recover the cost of infrastructure works from property owners who will gain a special benefit as a result of the works.

Due to the increase of more permanent residents on the Mornington Peninsula, there is a greater expectation that roads are made or footpaths are provided. In response, the Shire has historically used special charge schemes to provide this infrastructure that otherwise would not be built through rate revenue alone.

No, the Shire has a long history of using special charge schemes to fund the construction of roads, car parks, footpaths and drainage works. All special charge schemes are conducted in accordance with the Special Charge provisions of the Local Government Act 1989 (the Act).

Your property has been included in a proposed scheme based on the special benefit that the land will receive as part of the works.

Special benefit is the benefit received by the land (rather than a particular person) as a result of the works which is above and beyond the benefit received by a member of the general public.

Infrastructure works as part of special charge schemes typically provide benefits such as improved amenity, safety, access, drainage, increased property values and other benefits depending on the nature of the works.

The distribution method of owner contributions varies from scheme to scheme; however it is calculated in a fair and equitable way for all properties within a scheme, by taking account of factors such as proximity to the works, frontage to the works and the area of the property.

The Shire’s contribution to a special charge scheme is calculated on a case by case basis in recognition of the benefit to the community. Criteria such as the classification of the road, zoning, vehicle traffic levels and community facility links are taken into account when deriving the Shire’s contribution.

Particular works proposed by the relevant strategies that include works that are funded by special charge schemes include:

• Unmade Roads Construction Strategy
• Unmade Carpark Construction Strategy
• Contributory Schemes Policy for Infrastructure Works.(DOC, 152KB)

No; at this stage no final decision has been made as to whether or not the scheme is to progress. The Shire is inviting submissions to be assessed by Council. The final decision to declare, modify or abandon the scheme will be made by Council at a later date.

You may lodge a submission that will be received and assessed by Council. Submissions must be received prior to the date specified in the Intention to Declare notice. Council may then decide whether to adopt the scheme with or without modification or to abandon the scheme entirely. If Council declares the Scheme, you have 30 days after the date of the declaration notice to lodge an appeal of Councils decision to the Victorian Civil Administrative Tribunal (VCAT).

You should include your name, contact details and reasons why you support or oppose the scheme. Be sure to list your reasons in a clear and concise manner as your submission will be put before Council. Please be aware that all submissions are made available for public inspection upon request.

You must state in your written submission that you wish to be heard. Following the close of submissions a committee of 3 councillors, called a section 223 committee, is formed to hear those who have requested to be heard.

It is impossible to determine the exact cost of a project until construction is complete. The estimated charge in the enclosed notice can increase by no more than 5% and can decrease by any amount.

The estimated cost of a project is not limited to the construction costs. Other costs typically involve development and administration of the scheme, design, contract procurement, construction supervision, civil works, permits, traffic management, tree removal, vegetation offsets, replanting/landscaping, drainage alterations, Cultural Heritage Management Plans and all other costs required.

If the proposal goes ahead, you will not be expected to pay the charge until you receive an invoice. Invoices are typically sent at the start of construction and are based on the initial project estimate. Once the project is finalised the total cost is tallied and adjusted invoices are sent to property owners within the scheme.

Should the scheme proceed, Shire officers are more than willing to discuss the options available to you in regard to your present financial situation to arrive at a solution that does not cause you further hardship. Applications for consideration of financial hardship will only be considered after the invoices have been sent.

The 6.97% interest rate covers the Shire’s current borrowing interest (5.97%) and includes a further 1% to cover the cost of administration of the payment plan.

Yes, however the construction of driveways is not typically included as part of the scheme. You may choose to have your driveway constructed during construction at your own cost. The Shire will provide the contractor’s contact details once the works have been awarded, allowing property owners to make their own arrangements to have their driveways constructed.