Development Contributions

We expect our district will continue to grow at a moderate rate over the next 10 years. This may be population growth, visitor growth, growth in the number of households and intensification of economic activity. As a result of growth, more demand is placed upon our key infrastructure - roads, water supply, and wastewater disposal.

Development Contributions and Financial Contributions Policy

Council reviews its Development Contributions Policy every three years as part of the Long Term Plan. The 2021Policy on Development Contributions and Financial Contributions has been adopted, and is effective from 1 July 2021.

Any application submitted with all the required information on or after 1 July 2021 will be subject to being assessed for development contributions based on the 2021 Policy.

Document links

The 2021 Policy is an update of the 2018 Policy. There have been some key changes to the policy which are listed below:

  • The standard updates have been made to the policy including the application of actual capital expenditure over the past three years and inclusion of the latest LTP capital budgets. In most areas, these updates have resulted in increases in the development contribution. Most noticeably in water and wastewater due to higher costs budgeted for treatment upgrades.
  • The 50% remission on roading development contributions for residential developments has been removed.
  • Apartments have been added to the land use categories for retirement villages to provide simpler administration of the policy.
  • Council has reviewed development contributions to incentivise development of residential housing units where there are two or more units of 80m2 (or less) on a single site, to create more affordable homes.
  • Council may seek to recover all reasonable costs incurred in debt recovery proceedings and interest on outstanding development contributions.
  • Council may require a fee for considering a request for reconsideration, and Council will require a deposit prior to responding to an objection to development contributions.

 

Why do we charge Development Contributions?

Development Contributions help pay for new infrastructures - such as roads and water supplies, or help us upgrade current infrastructure assets to cater for extra demand. Our Development Contributions are calculated so that the people who benefit from the development pay their fair share without extra burden on ratepayers who have already paid their share.

Land use

We have calculated Development Contributions in different ways depending on the type of development. There are different charges for residential developments, commercial developments, rural-residential developments, industrial, accommodation and dairy farm conversions.

Under 'accommodation' a 'family flat' or ‘granny flat’ defined as self-contained living accommodation, whether contained within a residential unit or located separately to a residential unit on the same site, which is occupied by a family member who is dependent in some way on the household living in the residence will incur a development contribution. Self-contained means a residential unit which has cooking, toilet and bathroom facilities (cooking facilities means a room, or part thereof, where, and the equipment by which, meals may be prepared).

Reductions or waivers of Development Contributions

There are certain situations when a Development Contribution does not have to be paid in full. These include:

  • 50% reduction on the roading contribution for each new residential, rural-residential or accommodation development
  • 50% reduction on the Ohau water supply development contributions for any Ohau properties paying a water half-charge
  • 50% reduction on Moeraki wastewater development contributions for any Moeraki properties paying a wastewater half-charge

There are other instances when a reduction may apply or a refund may be given. Go to the ‘Reconsiderations and Objections’ section to find out more. If you believe you are entitled to a reconsideration of your Development Contribution, please contact us at service@waitaki.govt.nz or call 03 433 0300.

When payment needs to be made

We expect payment before we issue certain certificates or before a supply connection is made. Payment will be required for all development contributions (water supply, wastewater and roading) as follows. For the purpose of this section, the following definitions apply:

  • Residential development includes the following land uses; residential, rural residential, family flat.
  • Non-residential development includes the following land uses; accommodation, retirement village residential unit, campground, primary industry-dairy, commercial and industrial.

Residential development

  • Resource consent (subdivision) at the time of applying for an s224(c) certificate.
  • Where the full development contribution has not been paid at resource consent stage, then development contributions will be payable at building consent or service connection.

Non-residential development

  • Where a building consent will be required for a development, no contribution will be sought at any initial stage resource consent stage. The full development contribution will be required at building consent.
  • Where a building consent will not be required (eg land use consent), then a development contribution will be assessed at resource consent stage.

For subdivision consents, the development contributions invoice will be sent at the time the certificate under s224(c) is applied for. For land-use consent, building consents, or service connection, the development contribution invoice will be sent when these consents are granted.

This approach is considered more efficient to administer as a single contribution is levied at a single stage. In the case of non-residential development, the information at building consent stage provides more certainty about the nature and size of the development. This provides developers and applicants with greater certainty.

Deferred payments

We may agree to enter into a deferred payment arrangement by request under certain circumstances. We will review deferred payment arrangements on a case-by-case basis but please contact us as soon as possible so that a possible deferred payment can be investigated.

Credits

There are two types of credits anticipated:

  1. Actual credits will apply to those subdivisions or developments where contributions have been paid under this or a previous policy.
  2. Existing activities will be given credit based on the Household Equivalent Units (HEU’s) assessed in terms of the relevant unit (ie GFA, dwelling, accommodation units) prior to redevelopment. A development contribution will only be levied if the redevelopment creates additional demand.

Credits for the relocation of activities or dwellings

Where a business activity or dwelling relocates from one site in the district to another site in the district, credits are not transferable to the new site. Any credit will remain with the original site until such time as service connections are removed.

Reconsiderations and objections

An applicant may request Council to reconsider the requirement for development contributions under S199A of the Local Government Act 2002, if the applicant has grounds to believe that:

  • The development contribution was incorrectly calculated or assessed under the Council’s Development Contribution Policy; or
  • Council incorrectly applied its Development Contributions Policy; or
  • The information used to assess the person’s development against the Development Contributions Policy, or the way Council has recorded or used it when requiring a development contribution, was incomplete or contained errors.

If a reconsideration is sought in relation to grounds a) or b), no fee will be charged.  If a reconsideration is sought on ground c), if the information used to assess the person’s development against the policy is incomplete or contains errors and these errors are attributable to the applicant, a fee of $255+GST will be charged. 

A request for reconsideration must be made within 10 working days after the date on which the person lodging the request received notice from Council of the level of development contributions Council requires; and the request for reconsideration must either be in writing, or by completing the form for Reconsideration of Development Contributions (below) and emailing the completed form to service@waitaki.govt.nz.

Please refer to the 2021 Policy on Development Contributions and Financial Contributions(PDF, 863KB) for more details on how to request a reconsideration, and the process that follows the receipt of a reconsideration.

If the applicant is not satisfied with the outcome of the reconsideration, they may lodge an objection as specified in the LGA, sections s199C to s199N. The right to object does not apply to challenges to the content of the Policy, and can only be made on the ground that Council has:

  • Failed to properly take into account features of the objector’s developments that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities; or
  • Required a development contribution for community facilities not required by, or related to, the objector’s development, whether on its own or cumulatively with other developments; or
  • Required a development contribution in breach of section 200 of the LGA; or
  • Incorrectly applied its development contribution policy to the objector’s development.

Council requires a deposit of $2,750+GST prior to commissioner(s) being selected, with the balance to be paid on invoice. The LGA allows for the full cost of the hearing and/or the administration and Commissioner costs associated with the objection to be paid by the objector.

Any objection must be lodged with the Council within 15 working days of receiving notice to pay a development contribution, or, in the case where a request for reconsideration has been considered, within 15 working days of receiving the outcome of any request for reconsideration; and the objection must either be in writing, or by completing the form for Objection to Development Contributions (below) and emailing the completed form to service@waitaki.govt.nz.

Please refer to page 12 and 13 of the 2021 Policy on Development Contributions and Financial Contributions(PDF, 863KB) for more details on how to make an objection, the costs incurred by the objector, and the process that follows the receipt of an objection. 

 

Refunds

We may allow a refund to be made when a Development Contribution has been paid but the development has not gone ahead. We may, however, retain a portion of the contribution should we have incurred some administration costs.

Applications for refunds must be made in writing and sent to The Chief Executive, Waitaki District Council, Private Bag 50058, Oamaru 9444. Alternatively, an application can be emailed to service@waitaki.govt.nz.



Previous Development Contribution policies