Contributory Schemes Policy
for Infrastructure Works.
PURPOSE
This policy is a tool that will assist Council and residents to develop a built
environment that meets the community’s needs for access, ecological protection,
amenity and safety.
This policy operates in a legislative environment that recognizes there is a
responsibility on those living on an unmade road or partly serviced roads to pay for
its development at least once. Council’s role is to maintain it, after it has been built
to appropriate standards. Similar principals can be applied to other infrastructure
works.
SCOPE
The policy relates to infrastructure provision within the urban growth boundary
within the Shire.
This policy, together with referenced documents, covers contributory schemes for:
 local road construction (full or partial e.g. kerb and channel),
 footpath construction,
 drainage works, and
 car park construction in commercial centres.
OUTCOMES
Working towards a Sustainable Peninsula this policy will enable Council to help the
community to develop appropriate local access infrastructure to suit the
community’s specific and foreseeable needs.
Some key outcomes of the adopted processes will be to minimize community
conflict and to be open and transparent in a manner that is fair to all.
Development of this infrastructure will match land owner costs to function and need
and help Council to manage its’ maintenance responsibilities.
POLICY
OBJECTIVES



DEFINITIONS
CONSULTATION
PROCEDURE
To manage the contributory scheme process in an effective manner that is
fair to all.
To ensure the solutions developed are cost effective and affordable.
To maximize support for schemes and manage any conflicts associated with
these schemes.
A Contributory Scheme shall be in accordance with the Special Rate and Special
Charge provisions of the Local Government Act, 1989 (Section 163).
Community consultation shall be undertaken in accordance with the Peninsula Way
values and be appropriate for the works being undertaken. Where a more detailed
strategy or process exists this should be followed.
Consultation in accordance with the Statutory Procedure set out in Figures 1 of this
policy must be followed as a minimum for all schemes. In most situations additional
consultation should be undertaken prior to commencement of the Statutory
Procedures.
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Contributory Schemes Policy
for Infrastructure Works.
A.
STATUTORY
PROCEDURE
The Statutory Procedures for a Contributory Scheme are set out in Section 163 of
the Local Government Act 1989 and summarised in Figure 1 attached.
APPORTIONMENT
OF COSTS
The Local Government Act 1989 does not provide details on how costs are to be
apportioned. It only requires that a property must receive benefit from works before
a cost can be levied. It is therefore up to Council to determine an appropriate
method of apportionment keeping in mind that the underlying requirement is to be
fair, reasonable and equitable.
To ensure the method is appropriate, the apportionment should generally be in line
with previous determinations of the Victorian and Civil Administrative Tribunal.
COUNCIL
CONTRIBUTION
TENDERING OF
WORKS
NOTICE OF
REQUIREMENT
FOR PAYMENT
Council may contribute to the construction costs of Schemes:
 local road construction - in accordance with attached Contributory
Schemes Strategy for Road Construction in Urban Areas.
 footpath construction – in accordance with Footpath Construction Strategy
 drainage works – as determined
 car park construction in commercial centres – as determined
Public tenders shall be called for the construction of the works.
Following acceptance of a tender by Council, the community is to be advised that
works will be undertaken, including details of the approximate timing of works,
contact details for the Contractor and Council’s Officer supervising the works.
Following the decision of Council to proceed with the Scheme and its
implementation through the Tender Process, a Notice of Requirement for Payment
will be served on all contributors indicating all of the relevant details.
The notice shall clearly indicate that this request for payment is based on the
estimated scheme total cost.
At the same time the property database should be updated so that all new Land
Information Certificates show the potential for a further charge on the property after
finalization.
PAYMENT
Council shall allow contributors to pay their contributory charges in quarterly
installments including interest charged at Council’s adopted current rate.
Owners with a demonstrated genuine financial hardship are to be considered on a
case by case basis in accordance with the Council’s Hardship Policy.
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Contributory Schemes Policy
for Infrastructure Works.
FINALISATION OF
SCHEME AND
CONTRIBUTOR
COSTS
Schemes shall be finalized and reconciled within 3 months of Practical Completion
of the scheme contract works.
A report to Council immediately upon scheme reconciliation shall include the
following:
 that the works are complete and the costs are finalized
 that the final apportioned costs are presented for adoption by Council
 where any variation has occurred between the original estimate and the final
apportioned cost, the detail of such variation
 Council shall bear all costs of the variation in excess of 5% of the total scheme
estimated cost apportioned to the contributors.
In any case where the Special Rate or Charge is varied by any amount, notice is
required to be given to all affected parties pursuant to Section 166 (2) of the Local
Government Act 1989.
RESPONSIBILITY
Council’s Sustainable Infrastructure Group is responsible for :

reporting to Council requests for the implementation of Contributory Schemes
for infrastructure works.

determining the program of Contributory Schemes and ensuring the overall
integrity and purpose of the policy is maintained.

RELATED
LEGISLATION AND
POLCIIES
ensuring the policy and procedures are implemented and maintained.
supervising the operation of the policy and procedures
 Local Government Act 1989.
 Council’s Road Classifications – adopted 2 Aug 2004
 Unmade Roads Construction Strategy – adopted 10 April 2006
 Footpath Construction Strategy – adopted on 7 Nov 2007
ATTACHMENTS
REVIEW
Figure 1: Statutory Procedure
This policy shall take effect for five (5) years from the date of Council adoption.
Note: This Policy was adopted by Council on 31 January 2011.
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FIGURE 1
Contributory Schemes Policy
for Infrastructure Works.
Statutory Procedure
Council considers scheme and resolves to
make known its “Intention to Declare” the scheme.
Notice of “Intention to Declare” in local newspaper
and formal notice with cost to owners
Greater than 50% object
Council may
receive
submissions and/or
objections within
28 Days?
Submissions
Report to Council
(Council considers all submissions)
Council
abandons
scheme
Council must abandon
scheme where Council
contribution < 1/3rd
Council declares
scheme
Hearing of Submissions
only if requested
(Section 223 Hearing)
Council modifies scheme.
(May need to go back to
“Intention to Declare” for
major modification)
Formal notice and
letter to owners
No
Appeals
Appeals to VCAT
permitted by owners
within 30 days
VCAT
Determination in
favour with or
without
modifications
Yes
No
Council calls for tenders and
constructs road
Works complete and scheme /
apportionment finalised.
Approved by Council
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Scheme set
aside by VCAT
Page 4