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.

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.

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.

Special charge schemes enable councils to support the delivery of projects that provide a direct and special benefit to a select group of property owners. These projects may otherwise not be funded or delivered by Council. The current Council policy/program is to maintain existing road conditions – unsealed roads to be maintained as unsealed condition and sealed roads to be maintained as sealed condition.

A special charge scheme enables Council to support the upgrade of unsealed roads to sealed roads, particularly within township boundaries.

A 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 amenities, safety, access, drainage, increased property values and other benefits depending on the nature of the works.

It is important to note that Council currently maintains the road as per the agreed level of services identified in the Road Management Plan.

All residents who receive a direct or special benefit from a project funded through a special charge scheme would be required to pay an apportioned contribution.

Under the revised draft policy, for a special charge scheme to progress beyond the initial request, it must have the support of at least two thirds (66.6 per cent) of benefitting property owners. Exceptions to this include where the infrastructure is required for public health reasons, or the Council is a significant contributor to the scheme.

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 revised draft 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).

If more than two thirds (66.66 per cent) of residents support a proposal that would be funded through a special charge scheme, any resident who opposes the project would still be required to contribute to the scheme.

All affected property owners by the scheme, regardless of their property location or level of contribution, have an equal “vote” indicating if they wish to object to or support a proposed scheme. Under the draft revised policy, the Council will discontinue a scheme if more than a third (33.33 per cent) of affected owners object to the proposal.

Benefitting property owners will be allowed to pay the special charge in instalments over a period. Any property owner can also choose to make a lump sum.

Council can facilitate the following payment options:

• Pay in four instalments over one year with no interest; or
• If the special charge for a property is over $5,000, the payment may be made quarterly over a 10-year period. This works out to be a total of 40 instalments. Interest will be charged from the second instalment onwards at the interest rate applied to the principal amount. Interest will be calculated at a fixed rate for the term of the special charge. The interest rate to be charged will be equivalent to the RBA Cash Rate, plus a one (1) per cent administration fee that Council charges to administer the loan over the 10-year period.

Ratepayers experiencing difficult financial circumstances may seek relief in accordance with Council’s Financial Hardship Policy.