Development Contributions key to helping Horowhenua fund growth fairly
Published on June 30, 2021
The Horowhenua District Council Development Contributions Policy comes into effect on 1 July 2021. It affects people developing new residential, commercial or industrial land and buildings.
Prior to the introduction of the policy, the cost of financing infrastructure to meet the demands of growth was met almost entirely by ratepayers.
Given we are in a period of unprecedented growth, it’s unfair to expect ratepayers to continue to subsidise the cost of growth. The Development Contributions Policy ensures that those who create the need for Council to provide additional infrastructure, are those who will pay for it.
What are development contributions?
Development contributions are charges that can be levied by the Council to enable it to recover the cost of infrastructure. This is the infrastructure it needs to service new development resulting from population and business growth. Council has adopted the Development Contribution Policy to give a transparent framework for requiring contributions and showing how they link to the various growth-related capital works being carried out.
How will they impact the general ratepayer?
Development contributions are one way to relieve pressure on the general ratepayer. They can be an efficient and fair mechanism to meet the costs of growth.
What do development contributions fund?
The Council is will use development contributions to fund the growth-related costs of the following activities:
• Community infrastructure and reserves
• Stormwater management
• Water supply
• Wastewater treatment.
Will development contributions discourage development by making homes and business premises unaffordable?
Ultimately the market will dictate the demand for new developments in the district. However there are a few factors that Council has considered to ensure charges are aligned with market expectations. These are -
- Development Contributions are directly related to the growth infrastructure Council is funding. This means developers can negotiate for reduced raw land prices, assess their margins and know what they can realistically pass on to the property buyer.
- Development contributions are clear, well understood and well communicated.
More information about Development Contributions and what they mean to you, will be available on Horowhenua.govt.nz from 1 July 2021.