This paper provides a general summary of the calculation and implementation of a Development Impact Fee for a rural based New Zealand Local Authority. The Impact Fee is derived from the general principle in that the new arrival in whatever form, is otherwise simply able to trade upon and consume or use up part of a resource which others who are already in the area have previously paid to establish. In 1992 the Western Bay of Plenty District Council, a rural based local authority but in a popular "life style" area, began to come under increasing pressure from the road users and residents within the district to deal with what was seen as a deteriorating level of service being provided by the road network. The key issues were drainage, road generated dust and traffic safety on the relatively narrow rural roads. The Council questioned the moral basis from which it could allow additional road users to be exposed to an already unsatisfactory situation. Consideration of this dilemma gave birth to the roading component of a variation to the already established District Plan. The initial variation consisted of extensive development controls and targeted Impact Fees but after an extended period of negotiation and legal hearings the variation was modified to incorporate a more general Impact Fee. This paper limits itself to the aspect of impact on the rural network, summarises the options considered and the calculation of the resulting Impact Fee. (a)
Abstract