Home > News > Archive > 8th April 2004

Development Impact Fees Ease Burden on Ratepayers

Story Courtesy of Waipa District Council

Waipa District Council has recently introduced additional Development Impact Fees or "DIFs" into the Waipa District Plan. Development Impact Fees are financial contributions imposed at the time of granting a subdivision or land use consent.

Prior to the latest DIF's being introduced, Waipa District Council was limited in its ability to charge developers fees for the impact of their developments on the services and infrastructure supplied by Waipa District Council.

DIFs have been charged for reserves and urban street upgrades for several years, but development impacts on services such as water, sewage and roading have continued to be paid out of general rates, The new DIF charges are based on the anticipated infrastructure costs for roading, sewage and water services that are associated with new development in the District.

The introduction of these Development Impact Fees is part of Waipa District Councils goal, under its Annual Plan, to minimise money needed from the general rate, and where it considers it appropriate, to enure that the user pays for the costs associated with proposed development.

DIFs will be imposed at the time of granting a subdivision or land use consent, however not all developments will incur a fee.

In the case of residential developments DIFs are payable on the second and any subsequent dwelling constructed on any allotment in the Rural Zone, or for any second and subsequent dwelling house on the same allotment that has access to a reticulated sewage scheme or water supply scheme. DIFs are also payable on any additional new allotment that is created by a subdivision.

Development Impact Fees are not payable on the first dwelling constructed on any allotment, or on upgrading or additions to an existing dwelling. DIF's are also not collected on industrial and commercial development, except where required under the Cambridge North Structure Plan. Full details of the DIF requirements can be obtained from Waipa District Council Offices in Cambridge and Te Awamutu.

The new DIFs will apply to relevant applications for land use or subdivision lodged within Waipa District Council on or after April 13 2004.