History of the Specified Area Rate

Prior to 1^st January 1999 the developer undertook all maintenance in Iluka, however as outlined in the Caveat documents signed by purchasers, the Developers had always intended to hand over responsibility for ongoing maintenance to the Beaumaris Beach Home Owners Association (BBHOA).

The hand over of maintenance commenced with the Council taking up responsibility for some maintenance from 1^st January 1999 prior to formal hand over to the BBHOA Committee. In order to maintain the suburb to the standard established by the developer it was necessary to agree on a mechanism to raise additional funding.

Options to fund the ongoing maintenance included:

1. Funding from Council’s General Rate Revenue
   This would involve minimal BBHOA involvement. However as funding is sourced from Councils general revenue, the rates collected from a specific area are not necessarily directly used in that area. Furthermore, revenues would only be used to fund maintenance at Council’s normal standards not enhanced standards.
2. Collection by Council through a Specified Area Rate (SAR).
   The BBHOA would play an active role in assessing and monitoring performance of activities funded through member contributions which would vary between members due to different Gross Rateable Values. The SAR would be collected as an addition to the normal general rates notice but all revenue raised would be used exclusively in the maintenance of Iluka to the enhanced standards.
3. Collection by Council through Service Charges.
   A flat fee applied to all properties Can be used to collect funds to meet the costs of prescribed services, however State legislation would need to be amended to permit such funds to be used for area maintenance and enhanced landscaping.
4. Self Collection by the BBHOA
   This option also raised the possibility of a flat fee being applied to all properties but would have meant a higher degree of involvement and responsibility on behalf of the BBHOA Committee to manage contracts, employ levy collectors etc.

The City of Joondalup’s stated position was that it was prepared to implement a Specified Area Rate (SAR) from 1^st July 1999. In the event of rejection of the proposal to implement a SAR by the Home Owner’s Association, Council would still be prepared to maintain the area but only to its normal standards, which are below those applied in Iluka.

The BBHOA Committee was of the opinion that the general feeling from the previous General Meetings of the Home Owner’s Association is that the enhanced standards should be maintained. The option of collection of the SAR was adopted as the most appropriate and manageable form of funding for the continued maintenance of Iluka.

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