Media Releases
“Catch-Up” Time for Building and Planning Fees
3 November 2009
Far North building and resource consent processing fees are tipped to rise by 10 per cent across the board following a meeting of the Far North District Council last month.
Building consent fees will increase by 10 per cent from November 16 while a proposed 10 per cent rise in resource consent fees will be advertised for public consultation from November 11 to December 16.
Environmental Management General Manager Fran Mikulicic says the increases are needed to keep pace with inflation, recoup a shortfall in projected fees revenue, and avoid a massive increase in the next financial year when the council would otherwise find itself in ‘catch-up’ mode.
A shortfall of about $650,000 between fee income and controllable expenses had arisen because fee increases approved by the council in December last year were lower than had been requested and the number of consents processed had dropped from the high levels of the 2007/08 financial year, she said.
“A 10 per cent fees increase this year enables the council to regain some ground and sets a course that will bring the fees closer in line with inflationary pressures. It will generate an income of around $140,000 in the next six months which will be supplemented by around $250,000 expected to come from current cost savings, increased efficiencies and short-term redeployment of staff.”
Ms Mikulicic said comparisons with some other local authorities showed that the Far North District Council’s building consent fees were in the lower 50 per cent of those charged by other councils contacted within New Zealand.
The council’s planning hourly rates were about 10 per cent less than the other authorities, indicating that the FNDC was undercharging for the services provided.
She advised that the council should assess and adjust its consent fees each year with implementation dates of July 1 to enable better forward planning. “This would allow the fees to be advertised at the beginning of the calendar year as part of the annual plan, and the consequences to be measured before budgets are set,” she said.
A working party of four elected representatives will work with Ms Mikulicic to develop recommendations for further streamlining processes and improving customer services.
Among other changes, the ‘base monitoring fee’ for building will be replaced with a more equitable ‘levy’ set at $1.30 for every $1000 of the value of the application. “This is fairer than the present system which doesn’t differentiate between a carport and a million dollar home,” Ms Mikulicic noted. “They both are currently charged the same base fee regardless of value, the processing skill level required and the risk to the council.”
The Code of Compliance certificate will increase from $88 to $150 which more accurately reflects the work involved in processing the document and a ‘planning check fee’ will be isolated out from the Project Information Memorandum (PIM) process, which becomes voluntary under new legislation to be introduced early next year.
Page created/updated: 4 November 2009 at 10:02 am
