What are bulk contributions?
Also referred to as development charges or engineering service contributions, they are a financial charge or contribution that is levied by the municipality for the provision, installation, enhancement, or upgrading of engineering services. Bulk contributions for a development refer to larger sums of money made by the project owner or landowner and by businesses towards the funding of a specific development project. These contributions typically help to cover significant costs associated with the proposed development and upgrade of the municipal infrastructure system.
In most cases, bulk contributions are once-off payments and are payable to the local authority or municipality.
Will my land use application trigger the payment of bulk service contributions?
Payment of bulk contributions mainly depends on the type of land use application that is submitted.
The local authority or municipality and their respective engineering departments need to confirm what the impact will be on the engineering services and infrastructure of the area (water, sewer, roads, stormwater, and electricity). In most cases, bulk contributions will be payable for any change in land use that increases the demand for municipal services.
It is important for property owners to understand and properly budget for the payment of bulk contributions during the feasibility stage of a project.
When are bulk contributions payable?
Bulk contributions can form part of the conditions of approval of a land use application. Bulk contributions can be paid after the land use application is approved. It remains the responsibility of the property owner to ensure that the conditions of approval are complied with and that the relevant bulk contributions, as levied by the municipality, are paid.
In other cases, bulk contributions may be payable on submission of the building plans or as determined by the relevant municipality.
