2018-09-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                            17 SEPTEMBER 2018


      different calculations be undertaken for issuing a charge and 3 different calculations to
      determine the actual indexation to apply when time comes for payment (i.e. using
      variations in: CPI, current permissible maximum charge and/or 3-yearly PPI average). This
      creates an unnecessarily complex process of calculation.
      It is proposed to simplify Council’s “automatic increase provision” to one single indexation
      method that will apply uniformly on the issue and subsequent payment of the charge that
      will satisfy the current legislation i.e.
      “annual indexation per Financial Year using variations applicable to the “maximum amount”
      possible to be issued under the Planning Regulation 2017 as amended in accordance with
      the legislation, from the stipulated base date to the time of issue and payment.”
      The implication of Section 302 (Transitional provision) of the current Planning Act 2016 is
      unclear in relation to payment of previously issued adopted infrastructure charges. It is
      therefore proposed to apply the above indexation methodology to all remaining
      infrastructure charges issued after 1 July 2011 under all previous “adopted” Council
      charges resolutions to ensure consistency and limit potential legal risks.
      However, CPI indexation will need to continue for all infrastructure contributions and/or
      infrastructure charge notices remaining to be paid that were issued prior to 1 July 2011
      under the former Planning Scheme Policies (PSP’s) contained as a condition of a
      development permit and/or under the former Coastal Major Road Network Infrastructure
      Charges Plan (CMRNICP). This will ensure these contributions/charges comply with their
      specific legislative requirements under which they were issued. Similarly, infrastructure
      charges and/or contributions under delayed staged payment or other infrastructure
      agreements need to comply with the written legal agreements entered into at the time.
iv.   Section 120 (1) of the current Planning Act 2016 stipulates, “A levied charge may be only
      for extra demand placed on trunk infrastructure that the development will generate.”
      Under Council’s LGIP that took effect on 8 June 2018 replacing the former PIP, the
      stormwater network now only provides “trunk” infrastructure within the Priority Infrastructure
      Area (PIA) urban service catchments. Therefore, Council’s charges resolution should
      reflect that the stormwater component of the charge will only apply to development located
      inside the PIA.
      Since 8 June 2018, only five infrastructure charges notices have been issued on
      development approvals located outside the PIA. Accordingly, these notices should be
      reviewed and reissued with “amended” infrastructure charges notices removing the
      stormwater component of the charge if applicable.
v.    A number of recent court judgements have provided some clarity to a number of unclear
      legislative provisions. Amendments to the current charges resolution are included to help
      clarify some issues raised in recent court judgements.
vi.   Table 10.3 Schedule of adopted charges has been simplified to show Unitywater’s and
      Council’s charge rates according to the existing breakup agreement relating to the current
      “prescribed amounts” under the Planning Regulation 2017 for the 2018-2019 financial year.
      Any reductions for specific uses to Council’s charge rates as decided by Council, are then
      detailed where applicable.
      In accordance with discussions held during the Council workshop on 6 September 2018,
      Council’s reduced charge rates have been maintained from the current resolution at the
      CPI June 2018 indexed rates as the new 2018-2019 base rates for the following uses:
         Multiple housing Types 2, 4 and 5 for 1 bedroom units;
         Secondary dwelling to a detached house;
         Multiple housing Type 3 Retirement and special needs; and
         Entertainment and dining business Type 2 Recreation, amusement and fitness.
The amended Charges Resolution is provided as Attachment 1.

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