Policy on Development and Financial Contributions

The Policy on Development and Financial Contributions records how and when Council proposes to use development and financial contributions, what they fund and why.

Development contributions (DCs) are a payment made to Council that pay for the impact that new developments have on services and infrastructure, such as water supply, wastewater and community facilities. DCs may not be charged unless the proposed development creates a demand for new assets, or an increased capacity of assets; they may not be charged for the replacement or upkeep of assets.

DCs have not been charged to developers since 2015. Council’s current position is that they are a disincentive to development. Could wants to encourage development and economic growth, so proposes to fund the capital expenditure cost of new developments from other sources.

The draft policy puts DCs in remission, but outlines how they would be charged if Council chose to take DCs out of remission and charge for them.

Financial contributions (FCs) are a capital charge for works undertaken to mitigate the environmental effects of an activity.

How Council charges for FCs is set out in the District Plan. FCs are currently being charged to offset adverse effects of a subdivision, land use or development on Council’s roading or reserve infrastructure.

Only minor changes have been made to the draft policy to update the population growth projections, financial figures, dates and changes to legislation.

All councils are required by law to have either a development contributions policy or a financial contributions policy, and review it every three years. Southland and several other city and district councils have chosen to not have development contributions.

Council can adopt the amended draft policy as attached, or choose to make minor changes. Alternatively, Council could re-consult if it wishes to materially change the policy as a result of feedback received. Proposed changes are marked in the attached draft policy.

Your submission will be presented to Council for it to consider in a public meeting. Members of the public will be able to see your name and submission, but not your personal contact details.

Download the Draft Policy on Development and Financial Contributions