Agenda item

Austral Avenue, Upwey - Nevada Avenue, Upwey and Belbrook Road, Carween Avenue, The Highway, Weldon Grove & Mast Gully Road (service road), Upwey Intent to Levy a Special Charge

Minutes:

SUMMARY

This Intent to Levy a Special Charge Report involves the below road improvement projects, with each project being treated as an individual special charge scheme:

·           Austral Avenue, Upwey;

·           Nevada Avenue, Tecoma; and

·           Belbrook Road, Carween Avenue, The Highway, Weldon Grove & Mast Gully Road (service road), Upwey

When referred collectively they are known as The Subject Roads.

As part of its 2019 budgetary process, the Federal Government announced a nine-year, $150 Million funding initiative for Yarra Ranges Council to seal roads within the Dandenong Ranges and surrounding areas. This funding program has been named the Roads for the Community Initiative.

At its meeting on 24 September 2019 Council endorsed a list of roads to be constructed using this funding to be facilitated by means of Special Charge Schemes. The Subject Roads were included on this list of roads.

This report recommends affected landowners be notified of Council’s Intent to Levy a Special Charge for the construction of The Subject Roads.

Moved: Cr Fullagar
Seconded: Cr Higgins

That

1.        The affected landowners be advised of Council’s intent to declare a special charge (“the special charge”) at its meeting scheduled for 25 October 2022, or should this meeting not proceed then the next available Council meeting, for the purpose of defraying expenses associated with proposed improvement works in:

(a)       Austral Avenue, Upwey.

(b)       Nevada Avenue, Tecoma.

(c)        Belbrook Road, Carween Avenue, The Highway, Weldon Grove & Mast Gully Road (service road), Upwey.

2.          Subject to any variation of a scheme under Section 166 of the Local Government Act 1989, the amount to be levied under the scheme exclusive of interest payable under Section 172 of the Local Government Act 1989 will be:

(d)       Austral Avenue, Upwey. In total $125,974 (“the amount to be paid”); comprising of for the cost of works $105,000 and $20,974 for financing cost.

(e)       Nevada Avenue, Tecoma. In total $37,792 (“the amount to be paid”); comprising of $31,500 for the cost of works and $6,292 for financing cost.

(f)         Belbrook Road, Carween Avenue, The Highway, Weldon Grove & Mast Gully Road (service road), Upwey. In total $256,147 (“the amount to be paid”); comprising of $213,500 for the cost of works and $42,647 for financing cost.

(g)       On each date specified under Section 167 of the Local Government Act 1989 as being the date on which the whole of rates and charges (other than special rates and charges) is due (“the due date”) the amount represented by the formula: X/Y where X represents the amount to be paid and Y represents the number of due dates during the period which the scheme will remain in force.

3.          In accordance with Section 163 (3) of the Local Government Act 1989 Council specifies that the special charge:

(h)       Is proposed to be declared for the land in the “designated area” shown on the attached plan.

(i)          Will be payable in respect of all rateable land within the designated area.

(j)         Will be assessed and levied as set out in this resolution.

(k)        Will remain in force for the period commencing on 1 July 2023 and concluding on 30 June 2033.

4.      In accordance with Section 221 of the Local Government Act 1989 the special charge is also proposed to be declared in respect of land within the designated area which is not rateable land and is not Crown land.

5.      It is recorded that assessment of the special charge is calculated on the following basis:

(a)     $7,000 per development unit.

(b)     Plus financing cost of 3.995% per annum.

(c)     100% on a development unit basis as follows.

                             (i)         Special benefit where a dwelling or building is permitted.

                            (ii)        The degree of special benefit having regard to the use or future use of the land.

6.      The amount assessed, based on the assessment factors, is set out in the attached schedule of costs per property for the scheme.

7.      If works do not commence within 12 months of declaration of the special charge scheme, the financing cost rate applicable to landowners repaying the special charge over 10 years be reviewed, based on number of assessments involved, interest rate movements and the quantum of the project.

8.      Should the financing cost rate change after review, a further report be submitted to Council at the time of commencing works to confirm the financing cost rate that shall apply to the proposed special charge, and those persons liable to pay the special charge over a 10 year period be notified of the revised financing rate.

9.      In accordance with section 167 (4) of the Local Government Act 1989, landowners be offered an option to repay their charge as a lump sum payment. For landowners to undertake this option, full payment is to be made by 15 February 2024, and the proportion of the cost to finance the scheme attributable to the property is to be deducted from the total charge.

10.    The Chief Executive Officer be authorised to give public notice of the intent to declare the special charge in accordance with Section 163 (1A) and 223 of the Local Government Act 1989 in The Star Mail newspapers and on Council’s Internet Website.

11.    If required a consultation meeting with appropriate Council Officers, be arranged to discuss any submissions received relating to the Special Charge.

12.    If submissions are made:

(a)     Those submissions be considered, and any person (or their representative as specified in their submission) who has requested to be heard in support of their submission be heard, by a meeting of Council scheduled for 25 October 2022, or should this meeting not proceed then the next available meeting.

(b)     Those persons making submissions be advised copies of their submissions will be made available at the Council meeting held when their submission is considered.

13.    If no submissions are made, the matter be reported to Council at the meeting scheduled for 25 October 2022, or should this meeting not proceed then the next available meeting.

14.   Chief Executive Officer be authorised and directed to seek payment of and recover the special charge with any interest thereof.

The motion was Carried unanimously.

 

Supporting documents: