Draft Development Contributions Policy FAQs

​​​​​​Frequently Asked Q​uestions​

What are Development Contributions for?
Why are Development Contributions going up?
Is this going to affect the economy?
How do these compare to other cities?
Will this affect housing affordability?
Why change the system to charge by the number of bedrooms?
Who would pay if developers don't?
Is this legal?
How can I have my say?

What are Development Contributions for?

A development contribution is a one-off charge on new developments to ensure any development creating additional demand on Council infrastructure contributes to the ex​tra cost that they impose on the community.

Development Contributions are collected for water supply, wastewater, stormwater, reserves and transport.

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Why are Development Contributions going up?

The Council is planning to invest more than $1B in projects (which Development contributions can be collected on) to support growth and development in the draft 2018-28 10-Year Plan, more than double under the current DC Policy. DCs are higher because there is more to recover. If DCs do not increase, the ratepayer will be left to pick up the bill.

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Is this going to affect the economy?

The Council has decided to cap certain charges to reduce the economic impact. Higher DC charges may have an impact on the financial viability of some developments.

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How do these compare to other cities?

Our proposed charges are similar to, or higher, then other major growth areas.

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Will this affect housing affordability?

A higher DC charge does add to the overall cost of building housing which could either be absorbed into profit margins or have an impact on the end sale price.

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Why change the system to charge by the number of bedrooms?

Charging by bedrooms is a better way to match demand for services with the level of DCs charged.

Development Contributions costs are based on the likely impact the development with have on the city's infrastructure. A house with more bedrooms is likely to have more people living in the house therefore putting more pressure on the city's infrastructure through more cars on the road, using more clean water, flushing the toilet etc.

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Who would pay if developers don't?

Increasing DCs is a way to have developers pay for their fair share of the cost of growth. If DCs do not increase, the ratepayer will be left to pick up the bill.

The Council does work hard to secure, where possible, outside funding deals including NZ Transport Agency subsidies and the Council's Housing Infrastructure Fund proposal to make it more affordable.

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Is this legal?

Yes. All the methodology behind the way DCs are calculated hasn't changed and has been through a stringent legal review.

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How can I have my say?

Anyone can put forward their feedback through our website. Click here to submit your feedback online.

Feedback is open from Thursday 29 March to Monday 30 April 2018.

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For more information on Development Contributions including who pays when, view our development Contributions page here.

Page reviewed: 03 Apr 2018 5:33pm