New TRC policy guides deferral of infrastructure charges for not-for-profit community, health organi…

Toowoomba Regional Council (TRC) has approved a new policy to guide the deferral of infrastructure charges for not-for-profit/charitable community and health organisations.

TRC Planning and Development Committee chair Cr Megan O’Hara Sullivan said the Deferral of Infrastructure Charges for Public Benevolent Institutions, Health Promotion Charities and Community Organisations Policy would be effective for two years, starting on February 1, 2021.

Cr O’Hara Sullivan said the policy, that was approved at the January Ordinary Meeting of Council (January 19), would provide greater clarity for applicants and Council in relation to requests for the deferral of infrastructure charges.

“Council now has a clear policy for these specific uses that will offer a consistent approach and equitable framework for determining requests for waivers or deferrals of infrastructure charges that Council levies,” Cr O’Hara Sullivan said.

“Previously, the decisions were based on an established precedent in relation to the not-for-profit/charitable sector. The intent of these historic decisions has been captured in the new policy to ensure Council achieves its outcomes to deliver trunk infrastructure.

“The eligibility criteria offers greater clarity as it applies to the tax status of not-for-profit entities.

“Council regularly receives requests for waivers or deferrals of infrastructure charges from community and health organisations, in addition to clubs and sporting bodies. Requests have come from welfare and cultural organisations, emergency services, hospitals and high-care nursing homes that typically are run by a not-for-profit organisation.

“Under the new policy, all successful applicants will be required to sign an infrastructure agreement document that requires any successive entity that is not a not-for-profit or charitable organisation to accept liability for the payment of relevant infrastructure charges.”

Cr O’Hara Sullivan said any infrastructure charges would be subject to an automatic increase provision in line with the relevant Charges Resolution for the period of the deferral. Indexing the charge will ensure the correct payment can be applied if a change in status is triggered.

TRC Planning and Development Committee portfolio leader Cr Bill Cahill said the sum of the deferred Infrastructure Charges would be reported to Council in the monthly Regional Development Statistics report.

“Council will track the request trends over the initial two years of the new policy,” Cr Cahill said.

“Council considers it is unlikely that there will be additional financial or resource implications as a result of adopting the policy.

“The cost of building infrastructure in accordance with the Local Government Infrastructure Plan (LGIP) timelines and works schedules is, in part, recouped through the payment of infrastructure charges levied on development approvals.

“As Council has consistently granted discounts and deferrals of payments for the not-for-profit sector since 2012, in recognition of the services they provide to the region’s residents, we do not expect to see costs rise above the historic trend.

“The LGIP is the critical ingredient for responsibly delivering urban development in accordance with the Toowoomba Region Planning Scheme.

“The LGIP identifies trunk infrastructure (water, sewerage, stormwater, transport, parks and land needed for community facilities) that is required to service urban development at the desired standard for our future communities.

“The LGIP is Council’s financial commitment to the community and the Queensland Treasury Corporation for the sustainable provision of critical urban infrastructure,” Cr Cahill said.

Cr Cahill said Council in November 2020 approved a review of the Local Government Infrastructure Plan (LGIP), which would be renamed the Toowoomba Region Infrastructure Plan (TRIP) in line with complementary work to make a new Planning Scheme.