The council had been issuing parking infringements between 0.2 and 0.5 penalty units, which amounts to $41 and $102.
The Road Safety Act 1986 requires local government penalties to be set at the default $41 fine.
A formal council resolution is required before officers can issue the higher amount.
Instead, the council had been issuing $102 infringement notices for 11 different types of infringements during this time period without a resolution.
“Unfortunately, the need for a formal resolution was not adequately communicated to councils in Victoria in 2009 or in 2019 when the guidelines were changed,” Mansfield Shire Council said in a statement.
An estimated $34,588 in fines had been collected above the default penalty rate, which amounts to around 765 fines dating as far back as 2009.
Another $10,000 may have also been paid in legal costs or late fees.
Mayor Councillor Steve Rabie said the council is committed to rectifying the issue.
“We are not scared to address errors. We’ve identified an issue and we will fix it,” Rabie said.
“I have every confidence that the current team will work quickly to rectify these legacy issues. We know the community trusts us and we will work to maintain that trust.”
“If this has affected anybody – we are sorry.”
Rabie said the discrepancy was “disappointing because it’s an avoidable situation”.
”It’s a small amount of money over many years,” he added.
“Mansfield Shire Council has not sought to make money on parking fines – we use fines to ensure fair use of parking resources for the community as a whole.”
The council said it will continue to investigate the matter and has sought legal advice to confirm the amount that had been overpaid.
Drivers who are eligible for a refund should expect to be contacted.
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