A few months ago, I sat in on a public meeting to discuss subdivision options for certain blocks in Bungendore. One resident was quite surprised to discover that they couldn’t simply put up a fence across their yard and sell the part they weren’t living on.
In fact, quite apart from the need for development approval from council, a developer (that’s effectively what you are if you’re undertaking any type of property development, even if you’re just dividing your block in two) must also provide access to certain utilities and make financial contributions to various funds established by council to offset the cost of public infrastructure that will be impacted by any potential increase in use resulting from the new development.
These charges are levied under Section 64 of the Local Government Act and Sections 94 and 94A of the EP&A Act. As a result, they are generally referred to as s.64 and s.94 contributions.
Section 64 Contributions
Section 64 contributions relate to the provision of water and sewerage services. These are simply contributions to offset the cost of providing water and sewerage infrastructure and are listed in council’s annual schedule of fees and charges. These are one-off charges when a new lot is established, and are quite independent of annual water and sewerage access and usage charges. These charges are, however, only levied in areas where reticulated water and/or sewerage services are provided.
For the 2012/2013 financial year, s.64 charges for water and sewerage are $8,702 and $10,443 per lot respectively.
Section 94 Contributions
Section 94 contributions are more general in nature, and are required to fund s.94 Plans that have been established to provide specific services in a given area. Examples of current s.94 plans include the following:
Yarrowlumla Council section 94 Contribution Plan (No. 2)
Provision of Access Roads
Applies to new developments in all areas of the former Yarrowlumla Shire to offset the cost of construction of access roads
Yarrowlumla Section 94 Plan No.3
Provision of Community Facilities
Applies to new developments in various areas of the former Yarrowlumla Shire to offset the cost of community facilities such as halls and playing fields
Tallaganda Section 94 Plan No.4
Bush Fire Control and Suppression
Applies to new developments in areas of the former Tallaganda Shire to offset the cost of bush fire fighting assets
Cooma-Monaro Section 94 Contributions Plan
Roads & Open Space
Applies to all land in the former Cooma-Monaro Shire Council area
Palerang Section 94 Plan No.7
Recreation Facilities at Bungendore
Applies to new developments in Bungendore and the surrounding rural area
Palerang Section 94 Plan No.10
Provision of Kings Highway Culverts at South Bungendore
Applies to land in Bungendore between King Street and Trucking Yard Lane
Section 94 contributions are levied on any new development, in the area specified in a s.94 Plan, that would be deemed to increase the demand on the services covered by the s.94 Plan in question. Details of all current Section 94 Plans are available from the Palerang Council website under Section 94 and 64 Contributions Plans.
Section 94 contributions vary with the works covered under the relevant plan. Contributions for residential developments, however, are currently capped under state government legislation at a total cost of $20,000 per lot (i.e. the total s.94 contributions for a residential development on an individual lot will not exceed $20,000).
Council may also set conditions on individual developments that involve costs over and above the aforementioned contributions. Such conditions may include, for example, the sealing of an access lane way, the construction of an access road, or the installation of a culvert on a driveway or access road.
The bottom line is that it’s important to consider all of the applicable costs before undertaking any property development. There can be more to it than meets the untrained eye.
Comment from karen broadhurst
15 December 2012 @ 13:21
I have recently sub divided a block in Bungendore. This block had no access to the sewer system and I therefore had to pay $23,000 to have it upgraded. Then I had to pay over $10,000 again in section64 charges. Surely this is double dipping and I should not have to pay twice. I did question it and was told that it was just bad luck that I did not have the services available. The $23,000 I paid upgraded the service and has allowed the neighbours the opportunity to be able to tap into it if the develop their land. I think I have more than contributed. Your advice would be appreciated as I am about to go to the Land and Environement Court.
Reply from Pete
18 December 2012 @ 09:21
The $10,000 charge is the contribution to the sewerage headworks—the treatment works and all the pipes and pumping stations that provide a sewerage system for Bungendore. This is separate from any additional construction required by a particular development.
The charge of $23,000 was levied for the extension of the sewer main, specifically to the new lot, so that a connection can be made. If the main had not been extended, the new lot could not be serviced and the subdivision could not be approved.
The cost of the extension is higher than it might otherwise have been because it is was not feasible to connect to the line that services the existing house, due to inadequate depth (to provide sufficient cover over the extended line) and the fact that a shed on a concrete slab has been erected over the end of the exiting line. As a result, the required extension runs across the rear of the two adjoining lots.
If these adjoining lots are subdivided in future, the new lots would logically connect to the extended line, but since the area is already serviced (i.e. they could, even if the extension did not exist, connect to the existing main) the issue of additional charges does not arise.
The Section 64 plan notes that the applicant is responsible for the full cost of the design and construction of sewerage reticulation works within subdivisions and any external connections to existing mains.
In summary then, the two amounts are for different things:
1. A contribution to the cost of the Bungendore sewerage system due to the fact that the development is creating an additional user of the system; and
2. Necessary works to enable connection of the new lot to the system. These works are not required to enable the system to function, but simply to provide the new connection.
Pete Harrison ~ The Palerang Blog cross-reference
16 May 2016 @ 16:08
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