24.3.1 Purpose of Financial Contribution
|a)||Where the Council grants a resource consent for use, subdivision and/or development, the applicant, including network utility operators and/or requiring authorities, may be required, as a condition of consent, to make a financial contribution for the purposes of:|
|||i.||Providing and/or upgrading public network utility services and transport infrastructure.|
|||ii.||Providing and/or upgrading public reserves.|
|||iii.||Securing environmental compensation generating positive effects to offset any adverse effects of the subdivision, use or development that cannot be avoided, remedied or otherwise mitigated.|
24.3.2 Nature of Contributions
|a)||Financial contributions may, at Council’s discretion, take the form of money or land or a combination of money and land.|
|b)||Financial contributions shall not be imposed on a use, development or subdivision for the same purpose as a development contribution that is required, or has already been paid in relation to that use, development or subdivision.|
|c)||Where a financial contribution is, or includes the payment of money, the Council may specify any one or more of the following in the conditions of the resource consent.|
|||i.||The amount to be paid by the consent holder.|
|||ii.||How the payment is to be made, including whether payment is to be made by instalment and whether bonding or security can be entered into.|
|||iii.||When the payment is to be made:|
|||||A.||In the case of subdivision, generally before uplifting the section 224 certificate.|
|||||B.||In the case of land use, generally before the consent is given effect.|
|||iv.||If the amount of the payment is to be adjusted to take account of inflation and if so, how the amount is to be adjusted.|
|||v.||Whether any penalty is to be imposed for default in payment and if so, the amount of the penalty or formula by which the penalty is to be calculated.|
|d)||Where a financial contribution is, or includes land, the Council may specify any one or more of the following in the conditions of the resource consent.|
|||i.||The location and area of the land.|
|||ii.||The state the land is to be in before vesting in or transferring to the Council.|
|||iii.||The purpose of the land if it is to be classified under the Reserves Act 1977, or the general purpose of the land.|
|||iv.||When and how the land is to be vested in, or transferred to the Council or other infrastructure provider. In the case of subdivision consent the land shall be vested on the deposit of the survey plan under section 224 of the Act, or transferred as soon as legal certificate of title is available.|
|e)||Where any land is to be vested in Council or other infrastructure provider as part of a financial contribution a registered valuer shall determine its market value at the date on which the resource consent (imposing the financial contribution condition) commenced under section 116 of the Resource Management Act 1991.|
For the purposes of this rule, ‘market value’ has the same meaning as defined in the International Valuation Standard, as adopted by Australian Property Institute 2008 and Property Institute of New Zealand 2009, which is as follows:
‘Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, wherein the parties had each acted knowledgably, prudently and without compulsion.’
This rule does not apply to land that is to be vested in Council as a financial contribution in circumstances where the value of the land does not need to be determined.
24.3.3 Level of Contribution
|a)||The level of contribution shall be up to 100% of the actual or estimated costs, or land necessary to provide for the “Reasons for Financial Contribution” specified in the table below. |
|b)||Actual or estimated costs may include:|
|||i.||All reasonable costs incurred in providing the public utility service, transport infrastructure or reserve.|
|||ii.||Any reasonable costs in avoiding, remedying or mitigating any effects on the environment of providing or upgrading the public utility service, transport infrastructure or reserve.|
|c)||The level of financial contribution shall include any associated costs including but not limited to:|
|||i.||The reimbursement of legal costs incurred by Council in providing easements, encumbrances, covenants and the like.|
|||ii.||The reimbursement of fees charged to Council by Government departments, local authorities and the suppliers of public utilities and infrastructure.|
|||iv.||Any fees incurred by an adjoining local authority or network operator in processing the application.|
|||v.||Goods and Services Tax (GST).|
Water Supply Systems
Stormwater Disposal Services
Wastewater Disposal Services
Where an existing wastewater network and treatment plant are available, but their capacity is inadequate to meet the additional generated demand, the cost of connection and capacity upgrading
Where an existing wastewater network and treatment plant are not available, the cost of providing them
Transport infrastructure and Access
- The amount of money and/or land needed to ensure Council meets its agreed level of service for reserves as per Rule 24.4.1
Whether the need for reserves has been identified in a relevant Structure Plan
Whether other funding sources, including Development Contributions, apply
Whether neighbourhood reserve capacity exists within 500m of the proposed activity
The effects of the development or subdivision on the capacity of reserves that serve a city-wide or greater function
Whether shared use is available with stormwater disposal systems
Existing open space resources within close proximity
Existing open space resources that provide opportunity for unrestricted shared use
- The amount of money and/or land needed to offset any adverse environmental effects including river and gully restoration that cannot otherwise be avoided, remedied or mitigated.
1. For any allotment that has been created to accommodate a network utility service any financial contribution will be based on the service that the network utility uses.
|a)||Credits shall be entitled where: |
|||i.||A resource consent which includes a condition requiring a financial contribution lapses or is cancelled or surrendered without having been given effect in whole or in part, in accordance with the provisions of the Act.|
|||ii.||The activity in respect of which the resource consent was granted does not proceed.|
|b)||Council shall, on notice, pay or return to the person entitled the financial contribution less a value equivalent to the costs incurred by Council in relation to the activity and its discontinuance, provided that Council shall not pay for, or credit the value of, any work or services undertaken before the resource consent lapsing/being cancelled/surrendered or otherwise not proceeding.|
|c)||Where a financial contribution is made and Council subsequently resolves not to proceed with that work or to provide that service, the financial contribution shall be refunded to the person entitled, provided that in the case of a financial contribution of money no interest shall be paid.|
|d)||The amount of any previous payment shall be deducted from the level of the financial contribution payable in respect of any subdivision or land use consent in the following circumstances.|
|||i.||Where a previous financial contribution payment was made to provide an increase in capacity in a service, utility or facility necessitated by the proposal.|
|||ii.||If a financial contribution has previously been paid in respect of a land use consent for land now subject to an application for subdivision consent, where both the previous and proposed contributions relate to the same development and same purpose.|
1. Council shall keep a register of all financial contributions which shall contain the following information.
i. The amount of the financial contribution.
ii. The name of the person making the contribution and the date on which it was made.
iii. The purpose for which the financial contribution was made.
iv. The name of the consent-holder entitled to any refund or credit.
|a)||Security for compliance of resource consent conditions imposing financial contributions shall be in accordance with sections 108, 108A, 109 and 222 of the Act, further secured by deposits of money with the Council or bank guarantee. Where appropriate, securities shall be registered against the relevant titles.|