After 14 years of going with the flow, it’s proposed to better align development charges with the true cost of connecting water to new builds.

The City of Coffs Harbour (City) is proposing an update of the Water Supply Development Servicing Plan (DSP).

The Water Supply DSP allows the City to levy contributions on developers for projects such as subdivisions, flat buildings, and commercial and industrial developments.

Purpose of the Water Supply Development Servicing Plan

The Water Supply DSP provides the framework for calculating the appropriate developer charge to be levied on developers by The City.

Developer charges are up-front charges levied to recover part of the infrastructure costs incurred in servicing new developments or additions/changes to existing developments. Developer charges serve the following related functions:

• They provide a source of funding for infrastructure required for new urban development;
• They provide signals regarding the cost of urban development and thus encourage less costly forms and areas of development; and,
• They are an integral part of the fair pricing of water related services.

The DSP developer charge hasn’t been fundamentally updated since 2010 (barring Consumer Price Index adjustments), and the consequence is serviced residents subsidise the real cost of water connection to new developments. Developers are currently charged $12,599 for water connection to a standard detached dwelling on an urban block.

The updated DSP proposes to lift the developer charge to $17,828, with the increase in charge to be phased in over a three-year period in equal increments.

Once the full developer change is realised, there will be no further cross-subsidation by serviced residents towards developers.

The City is seeking feedback on the updated Water Supply DSP and subsequent increase in developer charge.

Have your Say

You are invited to review the Water Supply Development Servicing Plan and FAQs.

Submissions can be made by:

• The online submission form
• email: coffs.council@chcc.nsw.gov.au
• post: Locked Bag 155, Coffs Harbour NSW 2450

Submissions close 5pm on the 22^nd of May 2024

Next steps

After the exhibition closes, your feedback will be reported to Council which will decide whether to endorse the updated Water Supply Development Servicing Plan and developer charge. Anyone who makes a submission will be notified of the Council meeting.

Upon adoption of the DSP by the Council, the DSP is to be registered with DPI Water. The final DSP documents are to remain on the Council’s website until replaced by subsequent DSP documents.