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16.2.2 Allocation of Costs to Five Zones and to Significant Activities within each Zone

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  7. 16.2.2 Allocation of Costs to Five Zones and to Significant Activities within each Zone

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The LGAA emphasises that the allocation of costs must match the benefits derived. However, to attempt to assess in monetary terms the benefit per se without regard to cost would be to depart from the directions of the LGAA. The process of allocating cost in accordance with benefits is the foundation and fundamental driving mechanism to develop the Funding Policy. There is a requirement to recognise where the costs originate from and there is a need for transparency in the links between costs allocated and expenditure needs to which those costs relate. In complying with the requirements of LGAA, Council is required to do so in such manner and include such detail as considered reasonable, having regard to significance of the matter, the cost and difficulty of obtaining information and the scale of Council’s operations.

To satisfy these requirements Council has deemed it appropriate to subdivide annualised scheme expenditure into five separate zones and within each zone, as appropriate, Soil Conservation (Direct, Indirect, Farm Plans and Transitional), River Management, River Improvements, Flood Protection and Catchment Oversight. Asset Management Plans and proposals for new works are the formal documents upon which the subdivision of expenditure has been made.

Council has developed the Funding Policy based on five zones with Soil Conservation (Direct, Indirect, Farm Plans and Transitional), River Management, River Improvements, Flood Protection and Catchment Oversight detailed within each zone. The cost for each zone and activity within each zone are set out in sections 11 to 15.