Council doesn’t believe it is fair for ratepayers to cover the interest component of development loans and has decided that when infrastructure is loan-funded by Council, the developer should bear the cost of interest.
Council charges development contributions to help recover the cost of any additional infrastructure (for example pipes, roads, footpaths) needed to support growth in residential, commercial or industrial development.
Council believes that growth, and the cost of infrastructure to meet that growth, should be funded by those who genuinely create the need for, and benefit from, that infrastructure. In a nutshell, growth should pay for growth.
Council has decided that if infrastructure is loan-funded by Council, the developer should bear the cost of interest and inflation. Waipā ratepayers would no longer cover the interest portion of the loan. This meets legal requirements and is what most other councils in New Zealand already do.
Council will review development contributions every year to ensure they reflect the latest costs – this may result in reduced or increased fees from those currently proposed.