Development Contibutions
Are you looking at developing either through subdivision of property, building a dwelling or non-residential building, relocating a house or connecting services to an existing site?
Council has adopted a new Policy for taking contribution levies toward developments. A Development Contributions Policy (the Policy) has been prepared under the Local Government Act 2002 and replaces previous provisions Council were using to take contributions.
What are Development Contribution Levies?
Development Contributions are levies paid toward Council funded infrastructure services that are required as a result of growth in new households and development. The Development Contribution levies are based on the cost of providing these services to new developments, on a city-wide basis, and these costs are fairly attributed across all new developments.
Every new development that connects into Council infrastructure services places a demand and impact on those services. Infrastructure services include roading, water, wastewater, stormwater, parks and reserves
Please note that costs associated with the local 'site' effects of a particular development are not covered in the Development Contributions levy. For example, costs to provide adequate site access or provide a local road to service a development to a newly subdivided property incurred by an applicant are separate from the Development Contribution levy.
Don't I already Pay for Infrastructure Services through my rates?
Rates contribute toward the cost of maintaining and upgrading infrastructure services only. Development Contribution levies go toward the new infrastructure services required for new growth and development and are not funded additionally through rates.
When does the new system come into effect?
Any subdivision consent, building consent or service connection applied on or after 1 July 2004 will be subject to an assessment of a development contribution levy under the new Policy.
Am I affected?
Your development may be subject to a Development Contribution levy in one or more of the following circumstances:
- Subdivision
- Building or relocation of a new or additional dwelling or non-residential building in the absence of subdivision
- Service Connection for the relocation of a new or additional dwelling or non-residential building in the absence of subdivision or building consent
What Infrastructure Services will I Pay For and How Much will it be?
What development contribution levy you will pay will depend on the type of development you are undertaking and the location of the development.
Type of Development:
There are three different types of development in the City, Residential, Rural and Non-Residential i.e commercial and industrial. Below is a summary of the levies for infrastructure services that will apply to your development depending on the type of development you are undertaking:
Residential Development
Residential Development will be subject to a Roading, Water, Wastewater and City Reserves levy. In some cases residential development will also be subject to a Stormwater and Local Reserves levies if it is in the Kelvin Grove or Aokautere suburbs.
Rural Development
Rural Development will be subject to a Roading and City Reserves levy (dwellings only), except where a rural development connects into other Council infrastructure services i.e. water.
Non-Residential Development
Non-Residential Development will be subject to a Roading, Water and Wastewater levy. In some cases non-residential development will also be subject to a Stormwater and Local Reserves levies if it is in the Kelvin Grove or Aokautere suburbs.
The amount of development contribution levy you will pay will depend on the above factors.
Council Consent Planning staff in the City Contact Unit will work out your development contribution levy payable when you apply for your consent or service connection.
1 The exception to this is Ashhurst, developments here will not be subject to a Water and Wastewater charge
Who Pays the Development Contribution Levy and When is it payable?
The applicant and eventual consent holder for subdivision consent, building consent or service connection will be responsible for paying the Development Contributions levy.
Depending at what stage the development contribution levy applies it will be payable prior to either final approval of subdivision, upon granting of building consent or before final service connection.
Right of Objection to a Development Contribution Levy?
At the request of the applicant, the development contribution required on a development may be considered for remission at Council's discretion on a case-by-case basis. Council recognise that in certain circumstances there will be no extra demand placed on infrastructure services, a contribution may have already been paid for an infrastructure service in the past or a contribution applicable to a particular development could be deemed to be manifestly excessive for any other reason. Council has put in place a remissions process to deal with these circumstances and may be considered for remission at Council's discretion on a case-by-case basis.
An applicant may request a further review by a Hearings Committee of an officer's determination on a request for remission, for more exceptional circumstances. No further review would be available unless the further request is received by Council within 20 working days of receipt of the officer's decision and the Hearings Committee gives leave for a further review.
The Hearings Committee will determine an application for leave on the papers. The Hearings committee may give leave for a further review only if it is clearly arguable that the development contributions are manifestly excessive.
Remissions must be applied for before a development contribution payment is made to Council. Council will not allow remissions retrospectively.
Where can I find Further Information?
The full Policy on Development Contributions sits in the Long Term Council Community Plan.