Local Government Act 1989 Section 163(2C) – Special Rates and Special Charges: Calculating Maximum Total Levy Ministerial Guideline (Published in the Government Gazette on 23 September 2004) INTRODUCTION 1. This Guideline is made under section 163(2C) of the Local Government Act 1989 (the Act). It relates to the application of sections 163(2), 163(2A) and 163(2B) of the Act. It specifically addresses the calculation of the maximum total amount that may be levied as a special rate or special charge (referred to as the total “maximum levy”). 2. Some terminology used in this Guideline should be noted: a. refers to a special rate or special charge scheme. “Scheme” b. or refers to the functions or powers being exercised by “Works services” the Council for which it is proposed to levy a special rate or charge. c. refers to property in the form of land. “Property” 3. The calculation of the maximum total levy requires the following: a. Calculation of the of the works or services, “total cost” b. Calculation of the which depends on reasonable estimates of: “benefit ratio”, special to properties included in the scheme, • “Total benefits” special to properties not included in the scheme (if any), • “Total benefits” and community (if any). • “Total benefits” STEPS IN CALCULATION 4. The following steps apply to the calculation of the maximum total levy. A. DEFINE PURPOSE ENSURE COHERENCE. B. C. CALCULATE TOTAL COST D. IDENTIFY SPECIAL BENEFICIARIES E. DETERMINE PROPERTIES TO INCLUDE F. ESTIMATE TOTAL SPECIAL BENEFITS G. ESTIMATE COMMUNITY BENEFITS H. CALCULATE THE “BENEFIT RATIO” I. CALCULATE THE MAXIMUM TOTAL LEVY
Local Government Act 1989 – Section 163(2C) Special Rates and Special Charges: Calculating Maximum Total Levy Ministerial Guideline (Published in the Government Gazette on 23 September 2004) INTRODUCTION 1. This Guideline is made under section 163(2C) of the Local Government Act 1989 (the Act). It relates to the application of sections 163(2), 163(2A) and 163(2B) of the Act. It specifically addresses the calculation of the maximum total amount that may be levied as a special rate or special charge (referred to as the “maximum total levy”). 2. Some terminology used in this Guideline should be noted: a. “Scheme” refers to a special rate or special charge scheme. b. “Works or services” refers to the functions or powers being exercised by the Council for which it is proposed to levy a special rate or charge. c. “Property” refers to property in the form of land. 3. The calculation of the maximum total levy requires the following: a. Calculation of the “total cost” of the works or services, b. Calculation of the “benefit ratio”, which depends on reasonable estimates of: • “Total special benefits” to properties included in the scheme, • “Total special benefits” to properties not included in the scheme (if any), and • “Total community benefits” (if any). STEPS IN CALCULATION 4. The following steps apply to the calculation of the maximum total levy. A. DEFINE PURPOSE B. ENSURE COHERENCE. C. CALCULATE TOTAL COST D. IDENTIFY SPECIAL BENEFICIARIES E. DETERMINE PROPERTIES TO INCLUDE F. ESTIMATE TOTAL SPECIAL BENEFITS G. ESTIMATE COMMUNITY BENEFITS H. CALCULATE THE “BENEFIT RATIO” I. CALCULATE THE MAXIMUM TOTAL LEVY
pol201_-_special_rate_and_special_charge_scheme_policy.docx