Special Charge Schemes

Sometimes residents ask Council to seal or upgrade roads, or fund the construction of new infrastructure like drains, kerbs, channels and footpaths. To manage these requests, Council uses Special Charge Schemes (SCS) and needs at least 65% support among the affected property owners.

SCS are a formal process councils can use in the Local Government Act 1989 to introduce infrastructure upgrades while also sharing the costs with owners of property next to the area of the upgrades. Costs of the upgrades can be collected through a levy on the rates bill of the properties involved or as a lump sum.

We recognise the significant cost of infrastructure improvements on property owners and to help Council contributes 33% of the costs. This contribution helps support the successful implementation of any improvements through Special Charge Schemes.

Overview and making a request

The steps listed provide details to support property owners interested make a request. The steps also provide an end-to-end overview of the Special Charge Scheme process with Council. 

Step 1.Check where the nearest sealed roads are

A suggested start is to work out how big an area would potentially be involved for what you've got in mind. There are many factors to determine this in detail, but a good guide is to include the unsealed areas starting and ending with sealed roads.

For example, start from the closest turn-off where cars enter the unsealed road. The area to include goes from the 'start' and continue up to the first intersection with another road. Alternatively when there is no other road involved, right to the end of the no-through-road.

This will help give you and your neighbouring property owners an idea of how long the stretch of road is that is under consideration.

Step 2.Prepare a petition

To show there is support for improving the local infrastructure, a signed full petition is needed. Full petitions need to include signatures and personal information of signatories. We help by providing a template, publish timing information and set out specific details that need to be followed to make sure an acceptable petition is prepared. 

Learn about petitioning Council

As part of preparing a petition, it's recommended you also think about how you are going to attract attention of the right people to consider it, and the practical side of how they can sign it.

Step 3.Get your neighbours involved and collect signatures

Share details about what you've got in mind. Give property owners abutting the area under consideration, or directly next to the area, a chance to consider signing the petition.

Step 4.Phase 1: Initiation of special charge scheme

The start of the special charge scheme process with Council, otherwise known as initiation, occurs when a signed petition is lodged. 

Lodge petition with Council 
A minimum threshold should be met before lodging the petition.
Owners of at least 65% of properties abutting the portion of road or area under consideration have to sign the petition to start the process with Council. 

There are several steps in this process, and one main decision point by Council to determine if this proposal can progress into Phase 2.

Full details about the other parts to this phase can be found in Section 2 of the Special Charge Scheme Policy(PDF, 692KB).

Step 5.Phase 2: Development of special charge scheme

This phase shapes the development of the special charge scheme.

There are no main decision points, though there are several steps that all determine the design for the works. The design will be used at the start of Phase 3 for formal consideration.

Full details about this phase can be found in Section 3 of the Special Charge Scheme Policy(PDF, 692KB).

Step 6.Phase 3: Statutory process, works and payments of special charge scheme

This final phase has many steps to follow with most steps and time lines set by legislation. After formal processes in this phase are concluded in favour of proceeding, works can start and will continue until completed. When works start, a Notice of Payment will also be issued with different payment options made available. A year after works are complete any differences between estimated costs and actual costs are determined and a final cost statement issued. 

There are several decision points, with decisions made as part of public Council meetings.

Full details about this phase can be found in Section 4 of the Special Charge Scheme Policy(PDF, 692KB).

Scheme's that do not proceed

If Council decides not to go ahead with a scheme, we do not reconsider the same project, or a similar one, for at least 3 years.

We may revisit the idea sooner, only if circumstances change in a significant way.

Council contributes to the cost of the scheme

Council makes a financial contribution in several ways.

  • contribution as a landowner where Council owns land within the scheme area.
  • contribution where the works deliver broader community benefits, such as roads that carry through‑traffic.

In all cases, Council contributes at least 33% of the total scheme cost, unless its land ownership or community benefit contributions exceed that amount.

Costs are shared fairly across property owners

We calculate how much each property will pay using one or more practical measures. These help make sure each property contributes in a way that reflects its benefit from the scheme. Measures may include:

  • Property area
  • Frontage length
  • Capital Improved Value (CIV)
  • Access type, such as primary or secondary access

We provide an initial cost estimate during early consultation. This estimate is indicative only.

If property owners support the scheme, we form a task group. The group works with us to confirm how costs are shared and to agree on the final distribution.

Property owners can choose from flexible payment options

We offer payment options to help owners manage their costs.

You can choose to pay by either:

  • quarterly instalments over 10 years - equal to 40 instalments, aligned with Council rate payment dates - interest will apply and a request for an early payout can be made at any time.
  • lump sum.

If you are experiencing financial difficulty, you can apply for support under Council’s Rates Financial Hardship Assistance Policy.

Completed works

Within 12 months of completing the works, we issue a final cost statement.

We compare the estimated costs with the actual costs and adjust contributions where needed. If the difference is more than 10%, we must re‑declare the scheme. This gives everyone involved another opportunity to make submissions before costs are finalised.

Questions

To discuss your circumstances contact our Asset Management Team by emailing AssetManagementTeam@banyule.vic.gov.au

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