Special rate and charge schemes

Special Rate and Charge (SRC) schemes are a funding option for building civil infrastructure projects such as roads, drains and footpaths.

Special Rate and Charge (SRC) Schemes are used to pay for roads, footpaths and drains that benefit peoples land.

The cost is shared by the property owners who will benefit from these improvements. If you live in an area where a project is planned, you may have to pay a special rate or charge to help cover the costs.

Special rates or charges can help fund infrastructure and services that the City provides including:

  • Sealed roads
  • Kerb and channel
  • Footpaths
  • Underground drainage
  • Other capital infrastructure
  • Marketing and promotion of businesses and activities within the municipality
Water/gas/sewerage mains are not City managed infrastructure. You
should contact the relevant managing authority to request these services:
  • Barwon Water for water and sewer mains
  • Tenix/SP Austnet for gas
  • Powercor for electricity

Residents of an area are often the ones to request new footpaths, road construction or other infrastructure in their local area.

Property owners often use petitions, or a multi-signatory letter signed by themselves and their neighbours asking us to build a particular piece of infrastructure. 
At the City, to account for property owners changing their minds during the process, we will not commence the process of a scheme without a minimum of 60% support from benefiting property owners.

Because of privacy laws, we do not share the names of those who make these requests.

Once we receive a proposal for works, we assess the need and feasibility of the proposal. We consult with property owners through letters, e-mails, text, surveys, leaflets, public meetings and personal contact before the mandated process can begin.
Councillors and officers are available for information and feedback at this stage.

It’s important to keep your details up to date.  If you need to update your details, you can do so online.

When we start a project, we notify residents by letter. If a project gets enough support through surveys and feedback, we will plan and budget for the work.

Special Rate and Charge Scheme Process

Section 163 of the Local Government Act 1989 and the Local Government Act 2020 - Amendment mandates specific steps for implementing SRC schemes.

The stages and typical timeframes for the Special Rate & Charge Scheme Process are: 

In most cases, this is initiated by property owners using petitions or a multi-signatory letter signed by the other property owners. Without the evidence, the City will not investigate the request. In some cases, the City will initiate the request.
In order to investigate the request, we need to see evidence that approximately 60 per cent of benefitting property owners have indicated their support or interest for the proposed upgrade.
Potential SRC projects are determined by whether the project meets with the strategic aims of the City, regardless of how the project was initiated (i.e. the City or the property owners).
A preliminary assessment is undertaken. If the assessment finds the proposed project has merit, we will commence an early engagement. A proposed SRC scheme is initiated once all strategic requirements and beneficiaries are identified. 
Property owners are invited to participate in a survey to gauge the level of support for a project and if property owners are likely to participate in a future SRC scheme.
If support is demonstrated at early engagement, we will proceed to the detailed design stage. If not, we will close the proposed project noting there wasn’t enough support from property owners.
Roads and drainage schemes can be complex and expensive. When this is the case, a community meeting with property owners may be arranged as part of the early engagement. 
We will undertake detailed design which will provide more accurate information on the scope of works, estimated total project cost, and estimated timeframes. This stage also includes working out the cost apportionment for the City and benefitting property owners.
We will write to property owners again asking them to participate in a survey for the SRC scheme. If property owners support the proposed SRC scheme (60%), we will proceed to the ‘intention to declare’ stage. If not, we will close the proposed SRC scheme noting there wasn’t enough interest from property owners.
To proceed to the next step, 60% support must be achieved from responding property owners. 
A Council report is prepared based on the outcome of the survey findings with a recommendation to Council to give notice of its intention to declare an SRC scheme. Council will not declare a Scheme without 60% support from benefiting property owners.  
If Council supports the proposed SRC scheme, we move into the formal process of community engagement in line with the Local Government Act 1989 and Local Government Act 2020 - Amendment. If Council resolves to abandon (or not declare) an SRC scheme, the benefitting property owners will be informed of this decision. 
If Council resolves to give notice of its intention to declare an SRC scheme, a letter advising of this decision will be sent to all benefitting property owners.  A copy of the published Public Notice, including advice that submissions may be lodged by any benefitting property owner, will be sent within 3 working days of the day on which the Public notice is published in line with the Local Government Act 1989 and Local Government Act 2020 Amendment. 
Property owners will have 30 days to submit their feedback.  A Council Submission Review Panel will review and consider all submissions. Submitters may wish to address the Panel.  The Panel makes a recommendation to Council. 
If Council resolves to declare an SRC scheme, the Finance team will send a Levy Notice advising of this decision to all benefitting property owners.  This notice will include the information contained in the Declaration, including details of the levy and date when the contribution is payable, in accordance with sub-section 163 of the Local Government Act 1989.  The notice will also advise that VCAT submissions may be lodged by any interested party. 

We understand that significant hardship can be experienced by members of our community.  The City will consider an application for financial hardship relief confidentially and objectively based on the information provided by the person in the
application and will advise of its decision in writing after receiving the application and all supporting information. You can apply for financial hardship online. 

Under Section 185 of the Local Government Act 1989, benefitting property owners may lodge an application for review with the Victorian Civil and Administrative Tribunal (VCAT) within one month of issue of the Levy Notice.  The benefitting property owners are not required to make a submission to the City at the same time although this would be desirable. An appeal is listed, heard, and determined by VCAT and this process generally takes three to four months. Decisions made by VCAT are binding on all parties. 
Should no appeals be received by VCAT or that VCAT confirms the scheme, it will be cleared to progress to procurement and subsequent construction.
Should VCAT rule to abandon a scheme, it will not be re-initiated for a minimum period of five years. 
A Finalisation report will be submitted for adoption on each special rate or special charge scheme when it has been finalised.  The report will outline the following points:
  • The date of commencement of the scheme and the date of commencement of the construction works.
  • The date of completion of the scheme.
  • The actual cost of the project.
  • The actual amount of cost to be recovered from benefitting properties.
  • The estimated cost of execution of the project; and
  • Any variation that has occurred between the original estimated and the final actual recoverable costs and the action to be taken to adjust contributors cost liabilities. Noting that the LGA 1989 legislation allows for up 10% extra to be charged if required at any Special Rate and Charge scheme.
The City does not make any profit from Special Rate and Charge schemes.  Any over-payments will be reimbursed at finalisation of a scheme.
On completion of all the above stages, this infrastructure is handed to the City’s Assets team. 

Need to know more...

If you have any queries, please contact our Civil Infrastructure team on 5272 5272 or email [email protected]




Page last updated: Thursday, 19 December 2024

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