Why do we have Development Contribution Fees?
The development contribution fee is based on the demand your development will place on the District’s infrastructure. For example, a new house will require water to be supplied to it and will require its storm water, wastewater and solid waste to be removed and dealt with.
The Development Contribution Fee recognises the additional demand from your development and goes towards increasing and improving the District's infrastructure so that it can cope with the growth.
This policy sets out what monetary or land contributions will be required by the Council when development requires additional Council infrastructure.
Comprehensive information on Development Contributions is available in the policy document below.
- Development Contributions Policy - (PDF, 1.9 MB)
When do I have to pay a Development Contribution Fee?
You may have to pay a Development Contribution Fee when you do one of the following:
- Build a new house
- Undertake subdivision or other development
- Require a new service connection to water, sewerage, or storm water systems
You will not be required to pay at each of the above steps. You will only pay once, and this will be at the point of your final contact with the Council on the issue.
For a building consent, you will pay your Development Contribution Fee no later than the time you are issued a Code of Compliance Certificate. If your building is on land that has been subdivided since 2004, the Development Contribution should have already been paid.
For a resource consent, you will pay no later than the issue of Section224c certificate (RMA 1991) or when you take up your consent.
For a service connection, you will need to pay with your application to connect.
The level of your fee is assessed alongside your initial application, so you will have time to plan for and budget for the payment of the Fee.
My rates already pay for infrastructure. Why do I have to pay more?
If you are a current ratepayer in this District, your rates are related to the property that you already own. The rates are set at a level which recognises what it costs to provide services and facilities for that property and the people who use it. When you undertake a development, you are introducing new demand to the District. This demand is not covered by the payment of your current rates.
We are careful to ensure that you do not pay for the same thing twice when you make an application. We will explain what contributions are payable for a development or a subdivision, and we consider any similar contributions that have been paid in the past.
I have already paid some money – will I have to pay again?
You will not pay for the same thing twice. If you already paid some money, this will be taken into account when the calculation of the development contribution is made. Up until 2004, if you paid money when you subdivided, you probably only paid the reserves contribution. So you will have to pay for the other contribution covered under the new policy if you now build on the subdivided lot.
What is the difference between development contributions and financial contributions?
Development Contributions are a tool to deal with the financial impacts of growth, while Financial Contributions are intended to promote the sustainable management of natural and physical resources. Care is taken to ensure that these do not overlap.
Development Contributions under the Local Government Act 2002 are in addition to and separate from Financial Contributions under the Resource Management Act 1991.
The Financial Contribution provisions in the Proposed Plan will enable funding of roads (excluding State Highways), public car parking, service lanes, water, wastewater, storm water and reserves (excluding esplanade reserves), through the imposition of financial contribution conditions on a resource consent.
What is the benefit in doing this?
New development places strain on the water, storm water, and wastewater assets of the District if not well managed.
The challenge is to put in place a transparent, consistent, and equitable basis for acquiring contributions in order that those undertaking developments pay a fair share of the capital expenditure to provide for and cope with demand for services without inhibiting growth.
The benefit of growth is felt by both those undertaking developments and the general community. The cost of growth needs to be fairly balanced given the limited sources of funding available to the Council. The overall impact of requiring Development Contributions on the current and future social, economic, environment, and cultural wellbeing of the community needs to be considered. If Development Contributions are not taken from developments, the Council will not be able to provide the necessary community facilities to supply the new demand, or more revenue will need to come from rating. The latter scenario means that existing ratepayers meet the cost for new development. This situation will negatively impact on all aspects of wellbeing for the community.
It is recognised that development contributions will fall on those developing land at a time of high cost, but these costs appropriately fall on those creating the need for capital expenditure, not rate payers generally.
What are the figures based on?
The figures are calculated by projecting population growth over the next 10 years and estimating what infrastructure will be needed to accommodate that growth.
How much will I have to pay?
The Council will only charge Development Contributions for growth related works for:
- Water, sewerage and storm water infrastructure, in Whakatāne (including Coastlands), Piripai, Ōhope, Ōtarawairere and Huna/Shaw Road residential growth areas with a focus on residential accommodation, such as houses, units, apartments, and temporary accommodation.
- Water and sewerage infrastructure to be installed for industrial or commercial development in the Mill Road area (in the defined catchment).
Reconsideration Process and Objections
Reconsideration
An applicant may formally request the Council reconsider the Development Contributions required on the development concerned under Section 199A of the Local Government Act 2002 (LGA).
The applicant must have grounds to believe that:
- The Development Contribution was incorrectly calculated or assessed under the Council’s Development Contributions policy; or
- The Council incorrectly applied its Development Contributions policy; or
- The information used to assess the personal development against the Development Contribution policy, or the way the Council has recorded or used it when requiring a Development Contribution, was incomplete or contained errors.
Any such request shall be made in writing to the Council within 10 working days after the Council has advised in writing the Development Contributions are required on the development. The request shall include the reasons for reconsideration.
Objections
An application may, on any ground set out in Section 199D of the Local Government Act 2002, formally object to the assessed amount of the Development Contributions required under Section 199C of the LGA. The objection will be heard by Development Contribution Commissioners.
The applicant must lodge the objection, by serving notice of the objection to the Council within 15 working days of having been advised in writing by the Council that development contributions are required on the development, or the outcome of a reconsideration process.