WDC set to increase costs

The cost of living in Whangarei is about to rise as the area's district council prepares to raise charges for rates, rubbish and land development.
The Whangarei District Council yesterday voted to increase significantly charges to property developers to cover an estimated $76million of infrastructure needed to support growth over the next 10 years. At the same meeting, councillors voted to put rates up by five percent - while also moving toward a user-pays system for rubbish collection with a $1.40 bag charge. All charges are open for public consultation through the council's annual planning process.
Mayor Pamela Peters said the draft "development contribution policy" would pass costs created by new development on to developers, rather than to ratepayers.
The council calculates existing ratepayers have already paid about $27,000 per household for existing infrastructure.
For services the council now charges developers $4000, under the draft policy the council would charge between $13,053 and $24,317 as follows:
* Transport, $3797 (currently $1000 for roading).
* Water supply, $3183 in Whangarei city; or $2437 in Bream Bay (currently $1000 in all reticulated areas).
* Wastewater, $1999 in Whangarei city (currently $1000); or $14,009 in coastal communities (currently up to $3146).
* Stormwater, $480 (currently $1000 in reticulated areas).
* Facilities and activities in parks, $2000.
* Libraries, $918.
* Public toilets, $115.
* Solid waste, $561.
Under the draft policy, for each household created developers would also pay a reserves contribution of up to $1600 - the same as they pay now. For non-residential development the reserves contribution would be either 4.5 percent of the land value or the value of 20sq.m of land, whichever figure was higher. The policy would be used on subdivision applications lodged after March 30 and not granted before July 1, and on all subsequent applications.
Mrs Peters said the policy would be reviewed annually. She said ratepayers had indicated a reluctance to increase council debt to pay for infrastructure. The proposed charges were fairer. But Cr Merv Williams said the policy was likely to impact on people saving to buy their first property.
Whangarei builder and property developer Roger Raymond said higher charges would "slow down the Whangarei economy" as they would put properties out of reach of many people. Developers would pass extra costs on to customers. "The end user ends up paying. People think the rich developer has to pay. At the end of the day if we have to pay another $5000 - that section, instead of being $50,000 is going to be $55,000."
Mr Raymond, who has been developing small lots for 12 years, said that if the new charges were approved he wanted to see a big improvement in council infrastructure such as better maintained parks and playgrounds.
He said councils should give "rates holidays" to developers who boosted rates revenue every time a new land title was created.
The council's draft annual plan will be available to the public on April 29. Submissions close on May 30.
The final plan must be adopted by June 30, following hearings in June.