IPOLAA 06 Training Program

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INFRASTRUCTURE PLANNING AND CHARGING UNDER THE
IPA REFRESHER TRAINING AND IPOLAA 06 AMENDMENTS
IPOLAA 06 Training Program May 2006
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THE HISTORY
LG (PE)
Infrastructure planning
No formal requirements
Water and Sewerage Headworks Open space
contributions Conditions
Contributions
IPA (Mk 1)
Infrastructure planning
Core matter for planning schemes Benchmark
Development Sequences
Development infrastructure - Infrastructure
Charges Plans (ICP) Additional cost conditions
only
Contributions
IPA (Mk 2)
Infrastructure planning
Priority Infrastructure Plans (PIP)
Development infrastructure - Infrastructure
Charges Schedule (ICS) Regulated Infrastructure
Charges Schedule (RICS) Non-trunk and additional
cost conditions
Contributions
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THE JARGON
Priority Infrastructure Plan (PIP) Priority
Infrastructure Area (PIA) Development
Infrastructure Trunk and non-trunk
infrastructure Plans for Trunk Infrastructure
(PFTI) Desired Standard of Service Infrastructure
Charges Schedule (ICS) Regulated Infrastructure
Charges Schedule (RICS) Infrastructure Charges
Notice Regulated Infrastructure Charges
Notice Conditions for Necessary or Additional
Trunk Infrastructure Costs State Infrastructure
Provider
Infrastructure plan in planning scheme
Existing and planned future development area
Infrastructure within the framework
PIP and ICS deal with Trunk infrastructure
Trunk networks to service future growth
Standard of performance of network that is basis
for PFTI
Instrument setting out charges for trunk
infrastructure
Simpler alternative to ICS using prescribed
charge rates
How infrastructure charges are imposed
Same as above
Conditions for trunk infrastructure that may be
applied in defined situations
State agency supplying defined State
infrastructure that has an IDAS concurrence
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THE ESSENTIALS

• PIPs about integrating land use and
  infrastructure plans (i.e. land is identified for
  urban purposes, how are you going to service it?)
• Every IPA planning scheme must include a PIP
• Essential for charging
• Cannot impose infrastructure charges or
  additional infrastructure cost conditions without
  one

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THE CONTENT

• Priority infrastructure area
• Growth assumptions
• Plans for Trunk Infrastructure
• Desired standards of service
• Infrastructure charges schedules
• References to State Plans

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PIA
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ASSUMPTIONS
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THE PIP PROCESS
Can have major impact on State infrastructure
supply
IPA planning scheme
Submit assumptions PIA
Submit draft PIP
Notify
Normal scheme amendment process
ICS can be made using planning scheme policy
process and may be added later
Resubmit
Adopt
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INFRASTRUCTURE CHARGES

• Charges for trunk infrastructure identified in
  PIP
• Must be based on principles of fair apportionment
  
• Set out in charges schedule (ICS) that identifies
  and costs trunk infrastructure for which charges
  are levied
• IPA also allows for regulated infrastructure
  charges

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INFRASTRUCTURE CHARGES

• Clear list of user pays infrastructure
• Development infrastructure
• Land and/or works for
• Urban and rural residential water cycle
  management
• Transport infrastructure
• Local public parks infrastructure

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CHARGES AND CONDITIONS

• Charges
• Infrastructure charges schedules
• Regulated infrastructure charges schedules
• Conditions
• Necessary trunk infrastructure
• Additional costs
• Non-trunk infrastructure
• Other
• Infrastructure agreements

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DA
IDAS assessment
Infrastructure assessment
No
Consistent PIP?
Additional cost requirements
Yes
Non-trunk requirements
ICS applicable
If permit
DA conditions
Infrastructure charge notice
Infrastructure agreements
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PREPARING PIPs

• Things to remember
• PIPs are scalable they dont need to be
  detailed complex documents if the LG doesnt have
  much urban growth or large networks
• In simplest form are about anticipating future
  growth, developing infrastructure plans and
  calculating charges
• The infrastructure identified in the PIP is what
  LGs can charge for
• For LGs, seriously consider regulated charges if
  the is close to enough

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PROCESS

• The PIP is part of the scheme, so preparing one
  follows the Schedule 1 amendment process with an
  extra step for assumptions and PIA sign-off
• Infrastructure Charges Schedules can be prepared
  under the Schedule 1 scheme process OR the
  Schedule 3 policy making process
• Regulated charges can simply be adopted by
  Council resolution

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ASSUMPTIONS

• Are the basis for all LG network planning
• Have to be agreed to by the State infrastructure
  providers (DMR, QT, DES and DEA) prior to the
  draft PIP
• Talk to PIFU and for SEQ LGs, take into account
  regional plan population and dwelling targets
• People, dwelling and jobs info only the starting
  point LGs need to interpret this in terms of
  what the scheme allows and where etc
• A methodology report is very useful

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PIA

• Includes all of the LGs existing urban land and
  additional land for 10 to 15 years urban growth
• The amount of additional land should be related
  to the growth assumptions
• All land included in the PIA has to be serviced
  LG has to plan the required infrastructure
  upgrades/extensions
• Rural residential land is an optional extra in
  the PIA
• Charges can apply outside the PIA

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PFTI

• Should be based on the Assumptions, DSS and PIA
• Covers both existing and future networks
• Convert the assumptions data to appropriate units
  of demand for each network
• The infrastructure identified in the PFTI is the
  basis for infrastructure charging
• (i.e. not shown no charge)
• A schedule of works is required
• LGs only have to include networks they intend to
  provide

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INFRASTRUCTURE CHARGING

• Things to remember
• IPA infrastructure charging is about cost
  recovery
• Simple (RICS) and complex (ICS) options
• RICS is simple to adopt and calculate but
  delivers less
• ICS delivers more , but is more complex and
  detailed (requires cost apportionment, detailed
  works schedules including timing, and complex
  financial calculations)

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IPOLAA 06 INFRASTRUCTURE AMENDMENTS

• IPOLAA 06 passed by Parliament on 28 March 2006
• Received assent on 30 March 2006
• All infrastructure related provisions have
  commenced
• Fundamentals of the framework remain the same
  amendments about transitionals and refining
  details

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TRANSITIONAL ARRANGEMENTS

• Operation of the transitional infrastructure
  charging arrangements under sections 6.1.20 and
  6.1.31 extended to 30 June 2007
• Further extendable with the Ministers approval
• PIPs not required until 30 June 07 or extended
  date

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Section 6.1.20

• Transitional arrangements have and will continue
  to operate much longer than originally intended
• Considerable confusion as to the scope of the
  transitional charging arrangements (networks and
  methodology)
• Significant increases in charges under the
  transitional arrangements in some LGs
• Intended that LGs that have done work for their
  PIP/ICSs can begin to implement this through the
  transitional arrangements

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Section 6.1.20 continued

• Given extended operation of these arrangements,
  considered reasonable to introduce some of the
  transparency and accountability measures from the
  ICS framework
• 6.1.20 has been substantially amended to clarify
  the scope of transitional charging arrangements
  and calculation methodology
• Expected all policies prepared or significantly
  amended after 30 March 06 will comply with these
  requirements

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Section 6.1.20 continued

• Clarifies that under transitional policies
• Charges can be levied for all development
  infrastructure networks
• Charges can be calculated under ICS or headworks
  methodology
• Policy must state the required contribution,
  where and what it applied to, identify the
  infrastructure to be provided and when, provide
  cost estimates and state the proportion of the
  cost to be recovered
• Cannot overlap with an ICP, ICS or RICS

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Section 5.1.4

• Restriction on mixing ICS and RICS removed.
• LGs now able to use ICS for some networks and
  RICS for others
• Also clarifies that LGs can also mix ICS, RICS
  and transitional policies (at least for as long
  as the transitionals remain in effect)
• Must only be charge under one instrument

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Section 5.1.6

• Increased flexibility for how charges stated
• Charges can be stated as or charge units
• Amount of a charge unit to be set by LG
  resolution and stated in the LGs Infrastructure
  Charges Register (refer s5.7.2 (1)(na) and (3))
• Method for indexing and the indices to be used
  must be identified in the relevant ICS

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DMR matters

• 5.1.10 amended to allow local function charges to
  be spent on local roads if DMR agrees and works
  deliver an equivalent benefit
• 5.1.29 amended to require DMR to refund any
  unspent contributions for safety and efficiency
  if development doesnt proceed
• LGs can introduce local function charging under
  6.1.20 transitional policies if they wish

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Miscellaneous

• S3.5.4 and 3.5.5 amended to clarify superseded
  scheme applications are assessed against the
  current contributions policies
• 5.4.4 amended to clarify that compensation is not
  payable if the change is about a contributions
  policy
• Both amendments extend existing arrangements for
  charges to the transitional arrangements

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Definitions

• development Infrastructure s(a)(iii) now refers
  to public parks infrastructure supplied by a
  local government
• establishment cost -
• (a) added to clarify PIP preparation costs that
  can be recovered through charges and
• (d)(iii) reworded to clarify how existing land is
  to be valued (original value adjusted for
  inflation)

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Definitions continued

• priority infrastructure area - (iv) added to
  clarify the PIA includes related community and
  government purposes
• urban area (a) amended to clarify that a
  rural residential or future rural residential
  area included in the PIA is not an urban area for
  the purposes of the Vegetation Management Act
  1999 (VMA). Therefore such areas are not exempt
  from the referral and assessment requirements for
  significant remnant vegetation under the VMA.