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Friday
Nov222013

Local Govt Act Amendment Bill

Planning Team Leader Katina Conomos has provided an excellent summary of the changes proposed in her paper to next week's Council Meeting.
The one thing that caught my eye was the reference to changes to Development Contribution policy wherein the Government is clearly attempting to push costs through to the ratepayer. This has been the trend for years and is part and parcel of the embarrassment over Council costs that are currently met by developers, and that have caused so muuch concern as a component of building costs. 
This is the comment:
"Local Government New Zealand have already noted concern that the current proposal would transfer significant additional cost to rate funding and would result in future community facility projects being
cancelled, deferred or scaled back. The definition of community infrastructure is proposed to change
and be narrow in scope by comparison to its current meaning.
Community infrastructure "meaning the following assets when owned, operated, or controlled by a territorial authority:
- community centres or halls for the use of a local community or neighbourhood, and the land on which they are or will be situated.
- Play equipment that is located on a neighbourhood reserve.
- Toilets for use by the public."
There are new provisions for objections to development contributions"

I think it will get worse over time for rate-payers as these costs are further re-directed - It is so much easier to secrete these costs away in rates than have developers (and home buyers) have to pay them up-front. I just don't know how this trend can be combated - I think it is set in stone. 

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