As a growing district, it is important that we have the right infrastructure above and below ground to cater for more people living and working in our communities.
To make sure everything’s in place and we can meet the increased demand for our services, we have a development contributions policy. This sets out how much money developers or property owners must contribute towards new infrastructure when they are undertaking new residential, commercial or industrial developments.
- Roads and pathways
- Street lighting
- Parks and playgrounds
- Drinking water infrastructure
- Sewerage systems
- Stormwater networks
Plus other essential infrastructure that benefits the community.
Development contribution levies are determined through a process in the Local Government Act 2002. This prevents additional burden being placed on existing ratepayers through general rates.
Development contributions are typically charged as a one-time payment for residential (new houses), non-residential (commercial, industrial, or retail) development, subdivisions, and changes in land use.
What has changed?
Proposed changes in the draft Development Contributions Policy 2025 include:
The draft policy allows for different levels of development contributions to be applied to minor dwellings based on size and number of bedrooms, as set out in the table below.
* Minor dwellings with a Gross Floor Area (GFA) up to 45m2 will be charged as a 0.5 Household Equivalent Unit (HEU).
* Minor dwellings with a GFA between 45m2 and 70m2 will be assessed on a per-bedroom basis using three categories - one, two, or three bedrooms with an HEU of 0.5, 0.75 or 1 HEU, respectively.
* Dwellings less than 70m2 GFA, which are part of papakaainga housing, will be assessed in the same way as minor dwellings.
We are proposing to alter how retirement villages are assessed under the new DCP, by codifying assessment rates and shifting the point at which DCs get assessed and charged. The policy now addresses how retirement villages are assessed for development contributions, considering the types of buildings and their impact on Council infrastructure.
The draft policy includes best practice advice from the Department of Internal Affairs (DIA), and considerations for Maaori land as required by the Te Ture Whenua Maaori Act 1993, in accordance with the Local Government Act 2002. This aspect is not open for consultation.
The updated plan for capital projects in the 2025–2034 Long Term Plan is likely to affect development contribution charges. Later this year, Council staff will review those charges based on the confirmed Capital Works Programme, updated growth forecasts, and any new direction from government reforms or Council decisions around water services (such as the proposed CCO).
In the meantime, the 2025 Development Contributions Policy will keep using the 2021 policy schedules and maps, along with the 2024 Enhanced Annual Plan charges. These charges will be adjusted for inflation using the Producer Price Index from 1 July.
The updated proposed capital expenditure programme included in the 2025-2034 Long Term Plan affects development contribution charges. Full details are included in the Development Contributions Policy consultation material.
What's the process?
He aha te tukanga?
