Development Contributions

Despite the economic climate, the Hastings District is experiencing considerable growth, particularly in the urban and coastal communities. Growth places a significant strain on existing community infrastructure such as stormwater, wastewater and roading. In addition to upgrading existing infrastructure, there is also increased demand for new infrastructure and the need to purchase new Parks; Reserves for the growing community to enjoy.

Prior to July 2007, Council required financial contributions on subdivisions and building development under the Resource Management Act 1991 through its district plan. Whilst these financial contributions dealt with adverse affects on the environment, they did not address the financial costs of growth.

In July 2007, the council introduced a Development Contributions Policy under the Local Government Act 2002 (PDF 127kB). The purpose of the Development Contributions Policy is to ensure that new reserves and infrastructure are funded by those who cause the need for that infrastructure.

This is done by establishing a transparent, consistent and equitable method for determining the contributions developers must make towards reserves, community infrastructure and network infrastructure.

• Development Contributions Factsheet (PDF 667kB)
  

Six services have been defined for which development contributions have been calculated. The activities are:

• Parks; Reserves
• Transport
• Water Supply
• Wastewater
• Stormwater
• Community Infrastructure (this includes Facilities and activities on parks and reserves and Community facilities e.g. Libraries, Leisure, Halls, or Community buildings)

A summary of the steps in the process of developing the policy include:

• The adoption of capital expenditure requirements to support implementation of the community outcomes and levels of service through the LTCCP.

• A cost allocation methodology to examine and determine the shares of project costs into:

• Renewal: The gross cost of replacing an existing asset with a modern equivalent asset to the same function and capacity at the end of its life.
• Backlog: The portion of a planned (or completed) capital project that is required to rectify a shortfall in service capacity to meet existing community demand at the current agreed levels of service.
• Growth: The portion of a planned (or completed) capital project providing capacity in excess of existing community demand at the current agreed levels of service. 

• A Growth Model presenting projected growth in the community by contributing catchment and service type. The model takes into account the differing demands in services between the residential and business communities.
• A funding model to determine the Development Contribution charges taking account of the cost of growth, timing of the expenditure, growth of demand forecasts, interest costs and funding periods.

All documents and metholody are avaliable for viewing at Council offices at Lyndon Road East on request.

Development contributions may be required upon granting a subdivision, a land use consent, a building consent or service connection.

All new business will pay contributions toward roading infrastructure. Where new residential and business activities intend to utilise water, waste water or stormwater infrastructure, a relevant contribution for those activities will also be required.

The latest Development Contributions Policy supercedes its previous version and encompasses its the Schedule of Charges.

Note: The information contained in this introduction is intended to be a guide only. For a full and detailed review of the Development Contributions Policy, please read the Development Contributions Policy (PDF 1.3MB) and other amendments to Long Term Council Community Plan 2009-2019.

Contributions calculator

You can work out an estimate of your development contributions using the spreadsheet below. Please note this is a guide only.

• Development Contributions Calculator (XLS 103kB) 

Frequently Asked Questions

• Residential FAQs (PDF 23kB)
• Non-Residential FAQs (PDF 18kB)

More information

If you would like further information on the Development Contributions Policy, please contact the Development Contributions Officer on 06 871 5012.