Very few municipalities are imposing development charges for the provision of bulk infrastructure for new land developments, a situation that the Treasury wants to correct with the introduction of draft legislation that will standardise how these charges can be applied.
There has also been underinvestment in economically crucial infrastructure by financially constrained municipalities. Treasury senior economist Sandra Sekgetla said in a presentation to parliament’s finance committee on Wednesday that the lack of clarity over the application of development charges had created legal ambiguity and increased the scope for litigation.
The benefits of a standardised, clear regulatory framework on development charges for municipalities would be to enhance revenue streams to finance municipal infrastructure, which could be used to raise loans for infrastructure projects. It would create uniformity across municipalities thereby eliminating unfair competition/and or treatment of applicants both within and between municipal jurisdictions.
Municipalities will have the choice whether or not to impose development charges, but if they decide to do so, they will be obliged to comply with the act and incorporate the policy in a bylaw. They will be allowed to provide developers with rebates or exemptions.
Law Law Latest News, Law Law Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Treasury bill seeks to regulate payment for bulk municipal infrastructureThe lack of clarity over the application of development charges had created legal ambiguity and increased the scope for litigation
Source: BDliveSA - 🏆 12. / 63 Read more »