Introduction
The following guidelines have been prepared to assist municipal councils in preparing a submission for a loan and grant approval under the Local Government Infrastructure Assistance Program (LGIAP).
The LGIAP is a Tasmanian Government initiative aimed at providing a greater capacity for municipal councils to meet the local infrastructure needs within their respective communities.
The program will enable municipal councils to increase their borrowings for approved infrastructure projects, assisted with a grant from the Tasmanian Government to meet the interest repayments in the first three years of any approved loan.
Importantly the program is intended to assist in generating employment opportunities at the local level and enable municipal councils to play an active part in supporting local employment through these infrastructure initiatives.
Examples of the types of projects which may be considered under the LGIAP include (but are not limited to):
For eligible projects the LGIAP will provide assistance to local government in three ways:
Applications
for funding from the LGIAP will be considered in two rounds. The first
round will close 30 November 2009 the second round will close 31 March
2010.
Eligibility criteria
To be eligible for assistance under the program, councils will be required to demonstrate that the project:
Priority will be given to projects outside of the state’s major population centres, which provide local employment opportunities.
Applications by councils will be assessed against the above eligibility criteria. It is not necessary for projects to satisfy all criteria. However, priority will be given to projects which demonstrably satisfy the majority of criteria.
Assistance will be provided on the basis
that all borrowing to finance the project must be undertaken through
Tascorp. Any borrowings through other credit providers will not be
eligible for support.
Level of assistance provided
Assistance for eligible projects will be provided over a period of three years. The level of subsidy to be provided each year will be based on the total amount of interest paid on borrowings for approved projects in the preceding year and the applicable rate of subsidy.
The rate of subsidy for each of the three years is detailed in Table 1 below.
Table 1: Interest subsidy provided for eligible projects
Interest subsidy | ||
| 2010-11 2011-12 2012-13 2013-14 Onwards | 100 100 100 0 | |
The subsidy will be paid to councils each year as a grant.
The
total level of assistance will be limited to providing assistance for
up to $20 million in borrowings for all projects. Whilst the level
of assistance for each project will generally be limited to projects
not exceeding $500 000 in capital cost, councils may receive
assistance for more than one project.
Submission details
Submissions should be no longer than 5 or 6 pages. Where necessary any detailed supportive information (loan repayment schedules, project timetables, maps, diagrams, background reports etc) should be attached in the form of appendices. Applications can be in a form which is suitable for the municipal council in question however the following details must be provided as a minimum.
Applicant and introduction
Details must be provided of the council lodging the submission along with a very brief introductory description of the purpose of the project, the loan funds required and the size of the grant being sought. (It needs to be noted that the maximum grant available under the LGIAP is the total interest repayable during the first three years of the loan).
Details must be provided of the management team council intends to put in place to oversee the project, and the reporting and governance arrangements.
In the case where a joint proposal is being lodged by one or more councils, a single submission can be lodged. However separate details will need to be provided of the loans and grants being sought by each individual council, along with details of the combined management structure and governance arrangements intended to be put in place.
Detailed project descriptions
A detailed project description is then required which provides full details of the purpose and objective of the project, the scale and nature of the infrastructure to be developed, the means by which the project will be implemented (eg tender and contract for services), the project timetable and loan repayment schedule.
Where appropriate the project description should be supported with maps, diagrams and photographic images.
Details also need to be provided of any design work required to be undertaken before the project is able to proceed, as well as any development application and approvals process necessary before works can commence. Any approval for a loan and grant will be subject to the proposal being granted planning permission and building permits, where these are necessary in order for the project to proceed.
Other funding sources
Where the project includes funding from other sources (such as Australian Government grants) details of these funds must be provided, along with any specific obligations that may be attached to this funding and any reporting requirements.
Project benefits
A
description of the community and employment benefits must be provided.
While a lengthy description is not required it is important to provide
sufficient detail in this regard to assist the Treasurer is considering
the merits and value of the project. This will be an important
consideration in approving the loan and grant funds.
Assessment of applications
The
assessment of applications and payment of subsidies under the LGIAP
will be administered and managed by the Department of Treasury and
Finance and the Department of Economic Development, Tourism and the
Arts. Other agencies including the Local Government Division of the
Department of Premier and Cabinet will be consulted when assessing
applications against the eligibility criteria and prior to making
recommendations to the Treasurer. Projects to receive assistance
through the LGIAP will be approved by the Treasurer.
Submission of applications
Applications should be prepared in consultation with and lodged with the relevant regional officers of the Department of Economic Development, Tourism and the Arts. Applications for funding from the LGIAP will be considered in two rounds. The first round will close 30 November 2009 the second round will close 31 March 2010.
The regional offices are located as follows;
Regional Office - North-West
2nd Floor Harris Building
Cnr Alexander & Cattley Streets
PO Box 672
Burnie Tasmania, Australia 7320
ph: 1800 440 026
fax: 03 64317220
email: Northwest_Office@development.tas.gov.au
Regional Office - North
Level 1 Cornwall Square Transit
12-16 St John Street
PO Box 1186
Launceston Tasmania, Australia 7250
ph: 1800 440 026
fax: 03 63341131
email: launceston@development.tas.gov.au
Regional Office – South
Level 1 Reception
22 Elizabeth Street
GPO Box 646
Hobart Tasmania, Australia 7001
ph: 1800 440 026
fax: 03 6233 5800
email: info@development.tas.gov.au
web: www.development.tas.gov.au
