The District Council of Mount Barker Community Waste Management Scheme Infrastructure Fee Policy Page 1 of 6 14 3 TITLE COMMUNITY WASTE MANAGEMENT by wns17586

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									The District Council of Mount Barker Community Waste Management Scheme
Infrastructure Fee Policy                                            Page 1 of 6

14.3 TITLE:      COMMUNITY WASTE MANAGEMENT SCHEME
                 INFRASTRUCTURE FEE INTERIM POLICY

      RESPONSIBLE DEPARTMENT:             INFRASTRUCTURE AND PROJECT

      ASSOCIATED POLICY,                  LOCAL GOVERNMENT ACT 1999
      PROCEDURE(S) AND LEGISLATION:
                                          New Tax System (Goods and
                                          Services Tax) Act 1999

      ASSOCIATED DELEGATION(S):           AS PER COUNCIL’S REGISTER OF
                                          DELEGATIONS

      DATE OF LAST REVIEW BY COUNCIL      21 September 2009

      REFERENCES                          CODE FOR ESTABLISHING AND
                                          APPLYING PROPERTY UNITS ;LOCAL
                                          GOVERNMENT ASSOCIATION OF SOUTH
                                          AUSTRALIA

1.   PURPOSE

     The purpose of this policy is to ensure that Council administers the
     Community Wastewater Management Scheme Infrastructure Fee in a
     fair and consistent manner pursuant to Section 188 of the Local
     Government Act 1999.

2.   DEFINITIONS

     A Connection unit: Means a unit used to calculate the fee, as defined
     in section 6 of this policy.

     Community Waste water Management Scheme: Means any system or
     scheme provided or made available by Council for the collection,
     treatment or disposal (including by recycling) and sale of wastewater and
     includes a septic tank effluent drainage scheme.

     CWMS: Means a Community Wastewater Management Scheme.

     CWMS Property Units Code: Means the Code for Establishing and
     Applying Property Units as a Factor for the Imposition of Annual Service
     Charges for Community Wastewater management Systems published by
     the LGA on 20 April 2006.

     LGA: Means the Local Government Association.

     Maintenance: Regular ongoing day–to-day work and operations
     necessary to keep a CWMS operating. Example: pipe cleaning,
     treatment of wastewater and operating costs including electricity
     charges.
The District Council of Mount Barker Community Waste Management Scheme
Infrastructure Fee Policy                                            Page 2 of 6



     New: Is the creation of a new asset to meet additional service level
     requirements. Example: a new pumping station.

     Upgrade: Is the enhancement of an existing asset to provide a higher
     level of service. Example: increase in pipe diameter to increase capacity
     for flow rates.

3.   BACKGROUND

     Where a property owner connects to the CWMS, Council has applied a
     Developer Contribution (connection) fee. This fee is not tied to the actual
     operational and maintenance costs incurred by Council of providing the
     service, but is used by Council to provide for development, expansion
     (new estates) upgrading and renewal costs associated with the
     treatment and the disposal of the treated waste water that would result
     from the cumulative impact of new connections to the CWMS network.
     This fee is payable once only. The operational and maintenance cost
     associated with the general management of the CWMS is separately
     provided for by the Council’s annual CWMS service charge. This
     amount is determined annually and applied as part of the Council’s
     rating process.

4. OBJECTIVES

     The objectives of this policy are to ensure that:
        • Council administers the Community Wastewater Management
           Scheme Infrastructure Fee in a fair and consistent manner;
        • Council achieves the required future funding capacity for the
           increased needs of the CWMS as the district population grows;
        • As new users are connected to the network a CWMS
           Infrastructure Fee is applied to ensure intergenerational equity;
        • The CWMS Infrastructure Fee is maintained at an appropriate
           level to account for increases in construction and renewal costs
           and future CWMS Infrastructure needs;
        • Council complies with all regulatory requirements associated with
           CWMS.

5.   POLICY PRINCIPLES

     The following principles reflect Council’s commitment to maintain high
     standard of service delivery from the CWMS network meeting future
     needs.

     5.1.    The name of the fee: Is the “CWMS Infrastructure Fee“ to
             reflect that the income is for development expansion (new
             assets), upgrading and renewal not for maintenance and
             operational costs.
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     5.2.    Where the fee applies: In all townships that have CWMS
             available and where new allotments are created or existing
             allotments not connected to the scheme are to be.

     5.3.    When the fee is applied: The fee will be applied on application
             to connect into the CWMS, a connection being defined as per
             section 6 of the policy.

     5.4.    How the fee is applied: The fee will be applied per a
             Connection Unit as defined in section 6.

     5.5.    Use of funds: The funds generated from the CWMS
             Infrastructure Fee are to be used for future development,
             expansion (new assets), upgrading and renewal of the CWMS
             for the treatment and disposal of the waste water. They may also
             be used for research and development of the CWMS in
             accordance with councils budgeting process. These funds are
             not for general operating or maintenance of the CWMS, or the
             supply of CWMS collection networks within new green field
             developments.

     5.6.    Reserve funds: Cash funds generated from the CWMS
             connection fee shall be retained by council in a CWMS
             Infrastructure Fee Reserve together with any interest accrued.

6.   A CONNECTION UNIT

     6.1.    Residential allotments: One residential residence = one
             connection unit. A residential dwelling comprises a single
             household occupancy whether a flat, unit, semi-detached, row
             cottage or separate dwelling occupied or vacant.

     6.2.    Commercial premises (one occupancy per building): For
             example: shops, offices (including Government offices) or
             private agencies.
             The number of connection units is to be calculated per individual
             occupancy/tenancy as follows:
                    FTE
                     6
             Where:

             FTE = the total number of full time equivalent employees (not
             living on the site).

             In line with the LGA code for Establishing and Applying Property
             Units. The denominator figure 6 reflects the limited (working)
             hours during which facilities are used by employees compared
             with the domestic situation.
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Infrastructure Fee Policy                                            Page 4 of 6

       6.3.    Vacant land: Not subject to the fee – existing vacant allotment
               comprises any vacant parcel of land held under separate title,
               capable of sale without requiring approval for division and is able
               to be connected to the CWMS network.

       6.4.    Retirement villages: Due to higher than normal density
               housing, the following discount to the fee will be applied. This
               discount fee is based on the ABS Census data showing the
               average household occupancy to be 2.6 people per household1
               (Mount Barker district). This number therefore represents the
               average residential number for a connection for this policy. The
               expected maximum occupancy of this type of residence being
               retirement village accommodation, is two people.

               The formula to determine the number of connection units per
               tenancy

               =     (expected maximum occupancy / the average household
               occupancy of Mount Barker District)

               =      0.77

               The CWMS Infrastructure Fee for each tenancy in retirement
               villages would be discounted to be 77% of the connection unit.

       6.5.    Hospital, Nursing or Rest Home or other similar occupancy:
               The number of connection units will be calculated based on the
               following formula

                                    FTE + BEDS
                                        6
               Where:

               FTE = the total number of full-time equivalent employees (not
               living on the site)

               BEDS = the number of accommodation beds.

       6.6.    Hotel, motel or similar occupancies:
               The number of connection units is to be calculated as follows:

                     FTE + (BEDS x 0.7)
                           6
               Where:

               FTE = the total number of full-time equivalent employees (not
               living on the site)


1
    ABS 1345.4 - SA Stats, Jul 2008 New dwelling approvals in South Australia
The District Council of Mount Barker Community Waste Management Scheme
Infrastructure Fee Policy                                            Page 5 of 6

            BEDS = the number of accommodation beds.

            Note: The use of 0.7 in the formula is an assumed occupancy
            rate. (Reference LGA codes for Establishing and Applying
            Property Units.)


7.   THE CWMS INFRASTRUCTURE FEE

     7.1.   Application: The CWMS Infrastructure Fee will apply to the land
            owner per connection unit on application to council for the land to
            be connected to the CWMS. The number of connection units per
            property usage is as defined in section 6.

     7.2.   Good and Service Tax: The CWMS Infrastructure Fee is exempt
            from the goods and service tax in accordance with Division 81 of
            A New Tax System (Goods and Services Tax) Act 1999.

     7.3.   Pricing mechanism: Council will adjust the amount of the fee
            every six months at the first of January and the first of July based
            on Australian Bureau of Statistics Stage of Production

            Formula: Adjusted price = A x C / B

            Where:

            A = the amount of the fee immediately prior to the adjustment
            date.

            B = the value of the Index as first published for the March quarter
            prior to the most recent past price adjustment

            C = the value of the Index as first published for the most recent
            September quarter prior to the adjustment date

     7.4.   Payment: The payment of the CWMS Infrastructure Fee will be
            due and payable within Council’s thirty day trading terms.

8.   RESERVE FUNDS MANAGEMENT

     8.1.   Administration: The CWMS Infrastructure Fee reserve will be
            administrated by council. The projects designated to be funded
            from the reserve will be identified during the council’s budget
            process. The administration shall transfer funds to the council’s
            bank account monthly, ensuring that these projects are funded by
            the CWMS infrastructure fee. The cash receipts of the CWMS
            Infrastructure Fee shall be deposited to the reserve at the end of
            each calendar month.
The District Council of Mount Barker Community Waste Management Scheme
Infrastructure Fee Policy                                            Page 6 of 6

     8.2.   The Reserve: The cash balance of the reserve will be held at the
            Local Government Finance Authority.

     8.3.   Interest: Shall be applied to the reserve based on the minimum
            monthly balance at the current interest rate of the Local
            Government Finance Authority at that time.

     8.4.   Reporting: The administration of the reserve shall report to
            council on a quarterly basis and be published in the annual
            financial statements.

     8.5.   Audit: of the reserve will occur as part of the annual external
            audit process

9.   RESPONSIBILITY

     9.1.   Council Administration Role

            Council administration shall:

            • maintain and update reserve funds
            • meet all legislative requirements for the accounting for funds
              raised by the fee, to the satisfaction of internal and external
              audit
            • implement this policy
            • Monitor the effectiveness of this policy and recommend to
              council any proposals.

10. REVIEW DATE

     This Policy is intended to be an interim policy to be reviewed on the
     completion of the CWMS Strategic and Business Plan or within twelve
     months of being adopted by council which ever is the sooner.

								
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