Federation Council’s draft Developer Plan levies a percentage based on the cost of the overall development ranging from 0.5% for development with an estimated cost of between $100,000 and $200,000 to 1.0% over $200,000.
For example, for a proposed 10-lot subdivision with a capital investment of $500,000 the levy will be $50,000.
The contributions are held in a separate account for uses specified in schedule 1 of the plan, which include roadworks- upgrades, drainage works – upgrades, capital works to buildings and capital works to reserves.
“The levy money cannot be used for maintenance works or for water and sewerage projects,” director development and environment services Susan Appleyard said at council’s monthly meeting on June 25.
“Water and sewer headwork changes are a separate developer levy under the Local Government Act.”
Council’s plan is on public exhibition for at least 28 days.