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Section 64 – Development Servicing Plan for Water Supply and Sewerage

What are Section 64 (Headworks) development contributions?

The Development Servicing Plans have been prepared in accordance with the 2016 Developer Charges Guidelines for Water Supply, Sewerage and Stormwater issued by the Minister for Lands and Water, pursuant to section 64 of the LG Act 1993, exercising its function under section 306 (3) of the Water Management Act, 2000.

How much do I need to pay and how is the levy calculated?

The Development Servicing Plans cover water supply and sewerage developer charges for the areas serviced by Lithgow City Council. The service areas are shown in the maps in Appendix A of the Development Servicing Plan document (DSP).

The DSP comprises two water supply Development Servicing Plans and four sewerage Development Servicing Plans. The developer charges per equivalent tenement (ET) at the time of adoption are provided below. Developer charges will be adjusted annually on the basis of the movements in the CPI for Sydney, excluding the impact of GST. For the applicable rate in the current year refer to Council’s Fees and Charges.

DSP areaCalculated developer chargeAdopted developer chargeCross subsidy: Resulting increase in TRB
Water supply
Lithgow2,9212,921N/A
PortlandNilNilN/A
WallerawangNilNilN/A
Sewerage
Lithgow2,7302,730$2
Portland8,0778,077$2
South Bowenfels14,21314,213$2
Wallerawang14,6229,622$2

Council will determine the ET loadings of new development and redevelopment and levy developer charges by multiplying the ET loadings by the charge per ET applicable to the service area.

Developer charges relating to this DSP will be reviewed after a period of 4 to 8 years. In the period between any review, developer charges will be adjusted annually on the basis of the movements in the CPI for Sydney, excluding the impact of GST. For the applicable rate in the current year refer to Council’s Fees and Charges.

The developer shall be responsible for the full cost of the design and construction of water supply and sewerage reticulation works within subdivisions.

 

Disclosed Cross Subsidies

Council reduced the developer charges for the Wallerawang area. The reason is that that Council considers that the calculated charge was cost-prohibitive and would have discouraged development in this Wallerawang. The developer charges income difference needs to be subsidised by existing customers through annual bills (i.e. typical residential bill – TRB). To balance the difference in income from the calculated developer charge and proposed developer charge, Council will need to increase the TRB as shown in the table below.

OptionRequired annual TRB (2016/17)TRB differenceResulting increase in TRB (%)
Calculated-weighted average developer Charge - $6 100$878*
Proposed - weighted average developer charge - $5,704$880$20.3%

When do I have to pay the levy?

Generally, S64 contributions must be paid prior to the release of the Occupation certificate (OC) or Subdivision Certificate (SC).

What are the funds to be used for?

The assets that will serve the areas covered by these Development Servicing Plans are described in section 5. The levels of service to be provided by Council are included in section 6 of the DSP.

How can I find out more information?

Background information containing all the critical data including calculation models behind the DSP is available on request by contacting Council’s Water & Wastewater Department.

Download Development Servicing Plans for water Supply and Sewerage