163Special rate and special charge

163 Special rate and special charge (1) A Council may declare a special rate, a special charge or a combination of both only for the purposes of— (a) defraying any expenses; or (b) repaying (with interest) any advance made to or debt incurred or loan raised by the Council— in relation to the performance of a function or the exercise of a power of the Council, if the Council considers that the performance of the function or the exercise of the power is or will be of special benefit to the persons required to pay the special rate or special charge. S. 163(1A) inserted by No. 27/1997 s. 10. (1A) A Council must not make a declaration under subsection (1) unless it has given public notice of its intention to make the declaration at least 28 days before making the declaration. S. 163(1B) inserted by No. 27/1997 s. 10. (1B) In addition to any other requirements specified by this Act, the public notice must— (a) contain an outline of the proposed declaration; and (b) set out the date on which it is proposed to make the declaration; and S. 163(1B)(c) amended by Nos 109/2003 s. 80(1), 30/2022 s. 6(1). (c) advise that copies of the proposed declaration are available for inspection at the Council office for at least 28 days after the publication of the notice; and S. 163(1B)(d) inserted by No. 30/2022 s. 6(2). (d) advise that the proposed declaration will expire if the special rate or special charge is not levied to each person liable to pay it within 12 months after the day on which the declaration to which the rate or charge relates is made. S. 163(1C) inserted by No. 109/2003 s. 80(2). (1C) A Council must send a copy of the public notice to each person who will be liable to pay the special rate or special charge within 3 working days of the day on which the public notice is published. S. 163(2) substituted by No. 109/2003 s. 81(1). (2) Before making a declaration under subsection (1), the Council must determine— (a) the total amount of the special rates and special charges to be levied; and (b) the criteria to be used as the basis for declaring the special rates and special charges. S. 163(2A) inserted by No. 109/2003 s. 81(1). (2A) For the purpose of subsection (2)(a) the total amount of the special rates and special charges to be levied must not exceed the amount calculated in accordance with the formula— R × C = S R is the benefit ratio determined by the Council in accordance with subsection (2B); C is the total cost of the performance of the function or the exercise of the power under subsection (1); S is the maximum total amount that may be levied from all the persons who are liable to pay the special rates or special charges. S. 163(2B) inserted by No. 109/2003 s. 81(1). (2B) The benefit ratio is the estimated proportion of the total benefits of the scheme to which the performance of the function or the exercise of the power relates, including special benefits and community benefits, that will accrue as special benefits to all the persons who are liable to pay the special rates or special charges. S. 163(2BA) inserted by No. 67/2008 s. 56. (2BA) A Council must not make a declaration under subsection (1) which has been altered from the proposed declaration specified in the public notice if the effect of the alteration is to increase the liability of any person to pay the special rate or special charge to be imposed by the proposed declaration unless— (a) the alteration is made in response to a submission or objection received by the Council in response to the proposed declaration; and (b) the increase in the liability of any person to pay the special rate or special charge does not exceed 10%. S. 163(2C) inserted by No. 109/2003 s. 81(1). (2C) The Minister may make guidelines for the purposes of subsections (2), (2A) and (2B). S. 163(2D) inserted by No. 109/2003 s. 81(1). (2D) Guidelines made under subsection (2C) must be published in the Government Gazette. S. 163(3) amended by No. 109/2003 s. 81(2). (3) The Council must specify in the declaration— (a) the wards, groups, uses or areas for which the special rate or special charge is declared; and S. 163(3)(ab) inserted by No. 109/2003 s. 81(3). (ab) a description of the function to be performed or the power to be exercised; and S. 163(3)(ac) inserted by No. 109/2003 s. 81(3). (ac) the total cost of the performance of the function or the exercise of the power; and S. 163(3)(ad) inserted by No. 109/2003 s. 81(3). (ad) the total amount of the special rates and special charges to be levied; and (b) the land in relation to which the special rate or special charge is declared; and (c) the manner in which the special rate or special charge will be assessed and levied; and S. 163(3)(d) amended by No. 30/2022 s. 6(3). (d) details of the period for which the special rate or special charge remains in force; and S. 163(3)(e) inserted by No. 30/2022 s. 6(4). (e) that the declaration expires if the special rate or special charge is not levied to each person liable to pay it within 12 months after the day on which the declaration to which the rate or charge relates is made. S. 163(4) substituted by No. 30/2022 s. 6(5). (4) A Council must— (a) levy a special rate or special charge within 12 months after the day on which the declaration under subsection (1) to which the rate or charge relates is made; and (b) levy the special rate or special charge by sending a notice to each person liable to pay it. S. 163(4A) inserted by No. 30/2022 s. 6(5). (4A) If a special rate or special charge is not levied to each person liable to pay it within 12 months after the day on which the declaration to which the rate or charge relates is made, the declaration expires. S. 163(5) amended by No. 30/2022 s. 6(6). (5) The notice under subsection (4)(b) must contain— (a) the prescribed information; and (b) a statement about when the special rate or special charge is payable; and (c) details of the period for which the special rate or special charge remains in force. (6) A Council may use the money from a special rate or special charge for any or all of the following— (a) any purpose for which the rate or charge was made and the purchase of land and materials required for that purpose (including land acquired before the Council declared the rate or charge); (b) repayment of money borrowed for anything mentioned in paragraph (a) and of interest on that money; (c) maintenance and repair of damage, management, advertising or security; and (d) any expenses related— (i) to anything mentioned in paragraphs (a) to (c); or (ii) to the declaration or levying of the rate or charge. (7) If a private street (within the meaning of section 575(1) of the **Local Government Act 1958**) is constructed wholly or partly at the cost of the owners or occupiers of any land which abuts or fronts the street, the Council may not at any future time recover any further costs in respect of the construction of a component of the private street if that component has been previously constructed to the satisfaction of the Council from the owners or occupiers of the land under this section by way of a special rate or special charge. (8) For the purposes of subsection (7) and section 221(6), ***construct*** and ***component*** have the same meanings as in section 12 of the **Local Government (Consequential Provisions) Act 1989**. S. 163(9) inserted by No. 67/2008 s. 56(2). (9) For the purposes of subsections (1) and (6), ***expenses*** does not include any expenses incurred or anticipated to be incurred which relate to any proceedings or anticipated proceedings before VCAT, including an application for review under section 185 or an application for a declaration under section 185AA. S. 163A inserted by No. 34/1996 s. 21, substituted by No. 27/1997 s. 11.