Local Government Bill 2018

Division 5—Environmental upgrade agreements

Clause 133 provides for a Council to enter into environmental upgrade agreements. The purpose of an environmental upgrade agreement is to allow the Council to facilitate the provision of funds so that a land owner may upgrade a building to improve its environmental efficiency. The Council uses its capacity to raise a charge on the land as a way to ensure that money loaned to the land owner is repaid.

Subclause (1) specifies the purposes for environmental upgrade agreements and that the parties must include the Council, a lending body and the land owner. The lending body may be the Council.

Subclause (2) excludes certain provisions from applying where the land is residential land.

Subclauses (3) and (4) allows for the Minister responsible for the Victorian Energy Efficiency Target Act 2007 to issue guidelines on the types of works subject to an environmental upgrade agreement.

Subclause (5) specifies matters that must be addressed and included in an environmental upgrade agreement. This includes advancing funds for the works and the raising of an environmental upgrade charge.

Subclause (6) provides that an environmental upgrade agreement entered into under the Local Government Act 1989 continues to have effect after the relevant Division of that Act is repealed.

Clause 134 specifies conditions that must be satisfied before a Council enters into an environmental upgrade agreement.

The Council must be satisfied that the specified debts on the land (including if a mortgage is held against more than one property) will not exceed the value of the land prior to the works and, in the case of non-residential land, the owner must notify any existing mortgagee before entering into the environmental upgrade agreement.

Clause 135 provides for the Council to declare an environmental upgrade charge as part of an agreement under this Division. The Council may delegate this power to the CEO.

Clause 136 provides that an occupier of land that is subject to an environmental upgrade charge is not liable to pay the charge unless the occupier, or a previous occupier, has agreed to pay the charge.

Clause 137 states that a Council must use its best endeavours to recover an environmental upgrade charge but is not liable to pay the lending body if the charge is not paid. However, it remains a charge on the land and is subject to recovery, along with any penalty interest, in the same way as other rates and charges.

Division 6—Rate caps

Clause 138 sets out the purpose of Division 6.

Clause 139 provides for definitions of various terms used in this Division. These include the formulas for calculating the base average rate and the capped average rate.

Clause 140 provides for the setting of the average rate cap through a general Order issued by the Minister and published in the Government Gazette.

The average rate cap is the maximum percentage amount that the base average rate in that financial year can rise in the following financial year. The base average rate includes municipal rates, rates levied under the Cultural and Recreational Lands Act 1963 and any service charges prescribed in Regulation. Any Order relating to a cap on a prescribed service charge must take account of the expected costs of the service.

Advice from the Essential Services Commission (ESC) must be sought by the Minister and provided on the average rate cap before the Minister makes the Order.

The General Order must be issued on or before 31 December each year or on a later date fixed by the Minister. This enables Councils to consult early on their proposed Budgets.

Clause 141 enables Councils to apply to the ESC for a special Order that sets a higher cap for that Council for up to 4 years. This enables Councils to make the case to ESC for raising rates higher than the average rate cap.

Councils must apply for the Special Order by 31 March in the year before the proposed Special Order will apply. The Minister may fix a later date by notice in the Government Gazette.

Subclause (3) sets out what Councils must specify in an application for a special Order.

Subclause (4) enables the ESC to issue guidelines in relation to applications for a special Order.

Subclause (5) sets out what the ESC may do in receiving and assessing applications from Councils.

Subclause (6) enables the ESC to make a special Order if satisfied that a higher cap is appropriate with regard to the information detailed in the application and compliance with any directions issued and previous Orders made under Division 6.

Subclause (7) specifies that if a special Order is made for a Council, the cap for the relevant financial year is the higher of the average rate cap set out in the general Order and the higher cap set out in the special Order.

Subclause (8) requires the ESC to publish in the Government Gazette a notice of any special Order issued.

Clause 142 requires all Councils to comply with a general Order and any special Order that applies.

A failure to comply does not automatically affect the validity of the municipal rates or service charges levied that year. However, the Minister may declare all or part of a Council's municipal rates or service charges invalid if satisfied that the Council has repeatedly failed to comply with a general Order and any special Order that applies.

Clause 143 requires a review of Division 6 is undertaken and completed by 31 December 2021 and every 4 years thereafter.

Part 6—Council operations

Division 1—Service performance

Clause 144 provides that Councils must plan and deliver services in accordance with the service performance principles in subclause (2).

Subclause (2) sets out the service performance principles.

Clause 145 requires councils to develop and maintain a complaints policy for dealing with complaints made to the council. This policy must incorporate a review process, carried out by a person who is independent from the original decision maker or service provider. This policy must be in place within 6 months of the commencement of this clause.