Levy to drive up house prices

Saturday 13 March 2004

Developers warn new house prices will rise if they are forced to pay more to Manukau City Council.

By The Landlord

But the council says this will help ensure existing ratepayers don't continue to pay for facilities built in new subdivisions.

The council is looking for alternatives to rates to pay for the huge growth expected in the city during the next 10 years. Councillors also have to contend with a potential debt of $350 million by 2013.

OThe main solution is to increase the contributions paid to the council by developers. The council believes this could yield an extra $19m a year to help pay for roads, libraries and infrastructure.

The council plans to begin levying developer contributions in July.

Developers already pay contributions for reserves, water, wastewater, stormwater and some roading. The Local Government Act 2002 gave councils power to recover money for the cost of the extra community facilities and transport infrastructure needed for new subdivisions.

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