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Development Contributions Policy

The following are extracted from the recommendations going to Council tomorrow on this matter:

3. Determines that it will use development contributions, rather than financial contributions with the exception of parking, as a tool for funding capital expenditure on an individual activity basis, as outlined in the Activity Analysis section of the draft Revenue and Financing Policy, and that it has made this decision after considering the factors outlined in section 101(3) of the Local Government Act 2002.
4. Endorses the proposed changes to the Development Contributions Policy.
5. Determines that a summary of the Development Contributions Policy is to be included in the draft 2012-2022 Ten Year Plan.
6. Notes that the decisions that it is making through this report relate to the review of its Development Contributions Policy and that any decisions it makes on possible changes to this policy will be subjected to the special consultative procedure in association with the 2012-2022 Ten Year Plan.

These recommendations were based on the following considerations:

The Council has made its considerations under section 101(3) about appropriate sources of funding in the preparation of its Revenue and Financing Policy. These included considerations about development contributions as a source of funding. In summary the Council has determined that:

  • Development contributions are an appropriate source of funding for recovering capital expenditure for a range of community facilities.
  • While visitors and tourists benefit from and cause capital expenditure on community facilities, expenditure cannot always be cost-effectively determined or recovered from these groups.
  • Subsidies and grants provide an appropriate source of funding in combination with rates and development contributions for capital expenditure under some activities.
  • Capital expenditure (including past expenditure) can provide benefit to the existing community, new members of the community arriving in the Ten Year Plan period and future residents and businesses arriving after the Ten Year Plan period. It is appropriate to fund community infrastructure capital expenditure over an extended period of time. To distribute the benefits accordingly, the Development Contributions Calculation Period should cover assets provided in the past (in anticipation of growth), with remaining spare capacity and assets provided in the Ten Year Plan period with capacity up to twenty years into the future.
  • It is appropriate to identify and source development contributions funding from a range of areas (catchments) as shown in the Revenue and Financing Policy, ranging from district wide areas for activities such as transportation and community infrastructure to local areas for activities such as water supply and wastewater treatment.

Review the full paper in the attached enclosure. It does not appear to have any fish hooks on first examination, and proposes relatively minor changes that may be significant from a developers standpoint. These  proposals will be subject to full public consultation later in the year.




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