Development Contributions

NOTES ON DEVELOPMENT CONTRIBUTIONS

These notes are a summary of Council's Development Contributions Policy.  The full policy is available in the Long Term Council Community Plan 2006 to 2016. That policy takes precedence over this summary.

The information below relates to residential development only.  Commercial and Industrial development may incur roading charges under this policy.  Interested persons should enquire at the Council's Community Assets Department for details.

When are development contribution fees payable?
Development Contributions are incurred by the creation of “units of demand”. These can be either a subdivision/s, a new house/s or a new connection/s to the Council infrastructure. They will be charged at the following times:
• An application for certification of a subdivision under Section 224 of the
  Resource Management Act: or,
• The granting of a building consent: or,
• When Council agrees to a new connection to its services.

If the development involves more than one of the above, Council will normally require the contribution at the earliest event. 

The Council may withhold subdivision certification or a Code Compliance Certificate for the required payment.

Development contributions will only be charged once on each additional “Unit of Demand”.  The contribution per unit will not exceed the amount specified in the policy at the time of the issue of the first invoice. 

The contribution is due for payment on the issue of the invoice.

The following are examples of activities which would attract a development contribution:
- Any subdivision of land where additional titles are created
- The building (or relocation) of a new or additional house onto 
  a single title, including a family flat.
- The conversion of a single house into two units.
- The conversion of a garage or sleep-out into a family flat.
- An additional connection to the council’s water system.

The following would not incur a contribution:
- The building of a house to replace one on the same property which has
   previously been demolished.
- The building of a house on a vacant title issued before the start of 2000,
   on which there is not, or ever has been, an existing house.

Why have development contributions been introduced?
The Council expects growth to continue in the Horowhenua District. This policy will mean those people who want to develop and subdivide land will have to contribute towards community infrastructure and facilities.

Is there a chance of the Council double dipping?
The Local Government Act 2002 does not allow the Council to bill the same thing twice.  The LTCCP must state what contributions are to be made under the Local Government Act and/or the Resource Management Act. The policy explains what contributions are payable for a development or a subdivision, and gives regard to any similar contributions that have been paid in the past. 

What is the difference between development contributions and financial contributions?
Prior to July 2005 the Council did not charge any form of contribution. After that date financial contributions were introduced under the Resource Management Act 1991. These only applied to subdivisions up to July 2006. They have been largely replaced by development contributions under the Local Government Act 2002. This requires Councils to state, in the LTCCP, their policy for financial contributions and development contributions.

Where a financial contribution for any particular purpose/s is due, or has been paid, on a subdivision a development contribution cannot be taken for the same purpose/s.

What benefit is there in doing this?
• Ratepayers will not have to fund growth related capital expenditure on
  community facilities.
• Anyone who is developing or subdividing land will fund the growth-related
  costs of servicing that land. For example, if growth leads to a higher
  water demand then it will pay a contribution towards upgrading the supply.

What if I am not a developer?
The policy applies to any person who triggers a “unit of demand” whether they are “developers” or not.

What if the property has been previously vacant?
Unless the property was and has remained vacant since January 2000 a development contribution will due for any new dwelling or service connection unless a contribution has previously been made.

What about rates previously paid on a property?
Rates are paid to fund the maintenance of existing levels of services and not to extend them for new developments. Development contributions allow for services to be maintained at the existing level of services. 

How much will I have to pay?
The development contribution to be paid for each additional lot, household unit, or new connection differs to take into account varying services offered in each area and the different developmental demands of each area. Currently the contribution fees for a residential subdivision, a dwelling or any new service connection are (GST exc.):

Levin	$9,547
Waitarere Beach	$6,366
Foxton	$11,199
Foxton Beach	$12,050
All Other Areas*	$4,869

*‘All other areas’ includes all rural areas and small towns such as Shannon or Ohau.  

How are the amounts calculated?
The method to calculate these amounts is prescribed in the Local Government Act.  The figures are calculated by estimating projected growth over the next 10 years and estimating what infrastructure and services will be needed to accommodate that growth. Those are then costed out and apportioned against the projected growth.  These amounts are subject to review as costs and other circumstances change.

How are the development contributions allocated? 

	*Levin	*Waitarere Beach	*Foxton	*Foxton Beach	*All Other Areas
Water	$2,376	-	$1,611	$1,611	-
Stormwater	-	-	-	$851	-
Wastewater	$2,302	$1,497	$4,719	$4,719	-
Roading	$2,086	$2,086	$2,086	$2,086	$2,086
Community infrastructure	$1,268	$1,268	$1,268	$1,268	$1,268
Reserves	$1,515	$1,515	$1,515	$1,515	$1,515
Total	$9,547	$6,366	$11,199	$12,050	$4,869

*A map of these areas is available at the Council offices.

What happens if I don’t agree with the amount I have to pay?
You can apply to the Council to review the amount you have been charged. The circumstances the Council may take into account are specified in Section 10 of the policy.
 
Will the policy be reviewed?
The Council will review the policy in 2008/9 and every three years after that as part of the Long-term Council Community Plan process.

Why do different areas pay different amounts?
The different amounts are based mainly on the new services estimated to be required in each area as a result of new growth.  Details can be found in the LTCCP.

Further Information
Further details can be found in Council’s Long Term Council Community Plan 2006 – 2016, available from Council.