City of Vincent holding more than $1.7m in unclaimed verge bonds

Stock image.
Stock image.

MORE than $1.7 million is being held by City of Vincent in an Infrastructure Protection Bonds trust.

The City requires a bond that ranges from $500 for small projects of less than $10,000, such as minor renovations, up to $20,000 for large commercial or residential developments.

The bond covers the entire verge including damage to the road surface, the kerb and footpath.

As of April 30, the City had $1,760,565 in unclaimed bond deposits.

It was reported in April the City of Melville was holding almost $5 million in unclaimed kerb security deposits and had not attempted to alert the owners of the money.

Melville chief executive Shayne Silcox said it was unfeasible and uneconomical for the City to monitor the progress of every single application to know when they are complete.

He said once work was complete, the verge was inspected to ensure it matched pre-works condition and the deposit was refunded, but it was up to the owner to remember to arrange an inspection and the City did not provide reminders.

Vincent chief executive Len Kosova said it was procedure to send reminders.

“The City sends out reminders as part of our annual audit process,” he said.

“However it’s not uncommon for a bond to be held considerably longer if the payee doesn’t respond, has gone into receivership, if it’s a large development that takes several years or if there’s extensive damage that the applicant hasn’t rectified.”

Perth councils including Canning, South Perth, Stirling, Bassendean, Wanneroo, Bayswater, Peppermint Grove and Cottesloe also hold unclaimed kerb security deposits.

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