Tauranga City Council will go to public consultation in an attempt to turn the building department from a loss leader into a money maker via new building fees.
The new fees include across-the-board increases in charges for staff time, and are in line with charges currently laid by other city councils.
Building fees are set to increase. Photo: File.
Tauranga City Council currently charges $28 on each consent regardles of size. Other councils charge similar levels as a pecentage of building consent value. This percentage ranges from 35 cents per $1000, to 65 cents per $1000 of building works.
The Building Act hands council the ability to fix fees to recover the costs of the functions administered through the building services, including the ablity to prescribe a levy based on the esimated value of the work.
The law requires Building Consent Authorities like the city council to collect government levies for the Building Research Association of New Zealand at $1 per $1000 of bulding works, and $2.01 for $1000 of building works on behalf of the Ministry of Buisness Innovation and Employment.
To align with other councils who charge a levy in relation to the value of building works, a levy of 35c per $100 of building worlks is propsoed, along with 10 per cent rates funding.
Based on current estimates, the fee increases and a 35c BCA levy, will reduce Tauranga's total debt in building services from an estimted $3 milion at the end of 2016 to a cash balance of $600k in 2020.
Council staff estimate growth in the sector over the next four years will allow a surplus to be generated in the first half of the long term plan, which will mean that a change to reflect a 10 per cent public good element will not actually result in the need for any rates fuding.
If there is no change there will still be a deficit in the later years of the LTP, which would require the 10 per cent rate funding.
Council is also going to public consulation on a new regime of fees and functions under the Food Act 2014, which replaces the Food Act 1981 and the Food Hygiene Regulations 1974.
The new law will come into force from March 2016. The main differnece from the current legislation is a sliding scale based on risk, that will see businesses that have a higher food safety risk operate under more stringent requirements.
While existing business will transition to the new regime over a three-year period depending on the risk category, it will apply to all new businesses that begin trading from March 1, 2016.
Total annual revenue from current fees is $285,533, while total annual revenue exepcted from the new fees regime is an anticipated $436,380.
11 comments
Fair enough
Posted on 19-12-2015 07:17 | By Johnney
Sounds like the big developers are not paying their share but the article doesn't include all the other related fees for a consent. Just paid around $300 for all the photocopying for around 500 pages of paperwork for a small alteration. We appear to be bogged down in paperwork which all adds to cost and more ass covering.
Rubbish
Posted on 19-12-2015 08:20 | By FunandGames
While we are looking at what other councils do, Rubbish collection is covered by the rates.
Another thought
Posted on 19-12-2015 09:17 | By Johnney
If they make a profit then they are in the business of offering a service which they are accountable for. Will the buck stop with them if we continue to have bad buildings built which they approve and sign off.
At least two issues here
Posted on 19-12-2015 09:58 | By How about this view!
Well said "FunandGames", we seem to forget the CORE responsibilities of a council far too often. We pay separately for water supply and rubbish removal, so why not sub-contract the "Loss leader", the sewage treatment and water reticulation and let these Boof-heads spend all of our money and their valuable time, day-dreaming about the next white elephant for our city. Maybe consult with New York about building an annex to the Guggenheim to store our collection of stone axes and Victorian clothing. Secondly; Is consenting a "Loss leader" because the council workers in Porirua (Where our consents are being sent) know how to properly value their time? Yes, that right! It could be seen as empire building, as additional staff will no doubt be employed to actually do the work in-house for a change.
band4u
Posted on 19-12-2015 12:47 | By band4u
re The Building Act hands council the ability to fix fees to recover the costs of the functions administered through the building services... surely 'recover' doesn't mean profit. I seriously wonder what I pay rates for. Council have abandonded their core business of rubbish and water. Add this to my rates and we are paying some of the highest rates in the country and I cant even walk my little dog, who is a dammed side better behaved than many of the children we encounter, along the board walk !!
Eh?
Posted on 19-12-2015 16:46 | By commonsense
What about the exorbitant amount that TCC charge for building consents 'compared to other councils' We paid $15k to the council but if we had been 100m away in western bay it would hav been $7k This council needs a bloody good shake up, Just look at what New Plymouth achieve if you want a good example.
Two sides to every story
Posted on 19-12-2015 18:48 | By Mackka
Building works carried out with no consents will rise dramatically - as will the poor quality of work done as a consequence of the increase in fees! No winners here!
@ Mackka
Posted on 20-12-2015 08:08 | By Tga local
The leaking homes, and the mouldy council building I presume, were designed by professional architects, built by qualified builders and signed off by council building inspectors. That worked well. Qualifications, and belonging to trade associations, do not necessarily mean quality workers, nor does DIY mean substandard work. Also, some consent requirements are overzealous; soon you will need a permit to hang a picture frame. But yes, I do agree with you there will be a rise in unconsented work. Maybe that will help the council reduce their workload in this area so they can concentrate on new and exciting white elephants like Wharf Street, removing parking spaces in town to plant trees so as to provide ongoing expenses to ratepayers, etc.
Building fee hikes
Posted on 20-12-2015 13:08 | By Crash test dummies
The fees are already the highest in NZ by a healthy margin, so no idea where the idea of "align with other councils" actually means. This would be better listed as Pushing out the envelop and keeping the gross fees well ahead of all others. Even here in Auckland the fees to build are a quarter of that in Tauranga, just unbelievable.
@ commonsense
Posted on 20-12-2015 13:13 | By Crash test dummies
Yes the gap is big between even TCC and WBOP, I doubt it is only double, I doubt it is only $15,000 for TCC, the lowest I have ever seen for a new house is $18,000 and that was for a small shoebox thing. Normally it is around $25,000+ and cutting. The dodgy work is happening anyway. The non-consented also the same. They collect so much money from building yet are months behind in the consents, more money will only add more to the layers of officials running around doing who knows what besides mischief for Joe-public.
Cost plus mentality
Posted on 20-12-2015 13:18 | By Crash test dummies
As with most Councils, there is a "cost plus" mindset, the staff numbers, costs and everything all ratchet up, no effort is made to rationalize, be economical and efficient, these things are foreign concepts for sure. Don't expect any change soon, in the end the Council will strangle the life out of everything surely but slowly.
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