A DC is "Development Contribution" and is a levy by Council on each new lot created by subdivision.
DC’s are also levied for certain land-use consents. The purpose of a DC is to cover the cost of Council infrastructure and other District wide services and is covered by Council’s Development Contribution Policy. For example, the Waipa District Council DC is made up of the following components:
• water supply
• parks and reserves
The DC’s are not trivial – to create a new residential lot in Cambridge, the DC is $13,672 incl GST A new lot in Cambridge North residential area has a DC of $44,789 incl GST. A rural house site is levied at $736 incl GST. The DC for a rural house site was reduded drammatically on the last review.
DC’s are levied under the Local Government Act rather than the Resource Management Act. DC’s may therefore increase annually as per the Governments Construction Cost Index. This means that payment of a DC is not part of the usual subdivision condition imposed on a subdivision or land-use consent and may need to be paid within 1 year of gaining consent.