Development Contributions Policy

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Background

The Hastings District has been experiencing considerable growth over the past few years, particularly in the urban and coastal communities. This growth is placing a significant strain on existing community infrastructure such as stormwater, wastewater and roading. On top of the upgrades required to existing infrastructure, there is also increased demand for new infrastructure.

Currently the Council requires financial contributions on subdivisions and building development under the Resource Management Act 1991 through its district plan. These financial contributions are intended to deal with adverse affects on the environment and do not easily address the financial costs of growth.

The Council has therefore decided to introduce a Development Contributions Policy (PDF 1.15MB) 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 as appropriate 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.

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

A summary of the steps in the process of developing the draft 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 (PDF 238kB) 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.

Development contributions may be required upon granting a subdivision, building consent or service connection. All new residential development will pay contributions for roading, community infrastructure and reserves.

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.

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 5.51MB) and other amendments to Long Term Council Community Plan 2006-2016.

More information

If you would like further information on the draft Development Contributions Policy, please contact the Development Contributions Officer on 06 8780510 Ext 8622.

Private Bag 9002, Hastings, New Zealand. Ph +64 06 878 0500 Fax +64 06 878 0555