Development Contribution Fees | Units of Demand |
Why do we have development contribution fees?
The development contribution fee is based on the level of demand your activity will place on the District’s infrastructure. For example, a new house will require water to be supplied to it, and will require its stormwater, wastewater and solid waste to be removed and dealt with. The people that live in the house will use and therefore place additional demand on the District’s roads, reserves and community infrastructure. The development contribution fee recognises the additional demand being generated by your development and goes towards increasing and improving the District’s infrastructure so that it can cope with the growth.
The Council’s Development Contributions Policy has been developed under section 106, sections 197-211 and schedule 13 of the Local Government Act 2002.
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
- build a commercial or industrial development
- undertake subdivision or other development
- get a new service connection to water, sewerage or stormwater 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. So for a building consent you will pay your development contribution fee no later than the time of issue of the Code Compliance Certificate.
For a resource consent you will pay no later than the issue of the section 224c (RMA 1991) certificate 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 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; demand which 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 give regard to 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 have 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 parts covered under the new policy if you now build on a lot subdivided before 2004. Of course, you pay for different community facilities depending on where you are building or developing.
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.
Development contributions relate directly to the assumed cost of development on current and future infrastructure networks. Financial contributions are for local effects directly related to the impacts of a proposed activity and are charged through the resource consent process as a financial contribution on the activity proposed.
If a development contribution is collected from a rural area or rural settlement such as Taneatua, Edgecumbe, Matata, Murupara or Te Teko, it will be put towards roads, refuse services, community recreational facilities and parking. In the southern area of the District, contributions are only payable towards roads and refuse services. On the Rangitaiki Plains, a contribution towards the Plains water scheme upgrade is payable if a service connection is being made.
If the contribution is collected in Whakatane (including Piripai) or Ohope, it will be used for water, wastewater, roading, refuse services, community and recreational facilities and parking. In Otarawairere, an additional contribution is payable for stormwater. The contribution can only be spent on projects planned for in the Long Term Plan.
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What is the benefit in doing this?
New development places strain on the water, stormwater, wastewater, solid waste, roading, car parking, community infrastructure and reserve 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, and 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, environmental and cultural wellbeing of the community needs to be considered. If development contributions are not taken from developments, then either the Council will not be able to provide the necessary community facilities for 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 through land development or construction costs, but those costs were determined to appropriately fall on those creating the need for capital expenditure, not the ratepayers generally.
What are the figures based on?
The figures are calculated by projecting population growth over the next 10 years and estimating what infrastructure and services will be needed to accommodate that growth.
The current growth calculations are based on the medium growth projections for the District and the number of building consents issued over the past five years as well as industrial and commercial development.
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How much will I have to pay?
The development contribution to be paid for each lot, household unit, or area of commercial or industrial development differs to take into account varying services offered in each area, the different developmental demands of each area, and the amount of demand the development will place on infrastructure. The level of a contribution is reduced on a sliding scale if the total floor area of a household unit is less than 75m2 in area.
The likely contribution fee for each new lot or additional household unit is (exclusive of GST):
|
Ohope Maraetotara |
Otarawairere |
Piripai |
Plains Water Scheme |
Whakatane - South of River |
Whakatane - North of River (excluding Piripai) |
Northern Community |
Matahina - Mininui; Murupara |
| Solid Waste |
$111.66 |
$111.66 |
$111.66 |
$111.66 |
$111.66 |
$111.66 |
$111.66 |
$111.66 |
| District Roading |
$684.79 |
$684.79 |
$1684.79 |
$684.79 |
$684.79 |
$684.79 |
$684.79 |
$684.79 |
| Northern Community Roading |
$30.13 |
$30.13 |
$30.13 |
$30.13 |
$30.13 |
$30.13 |
$30.13 |
- |
| Reserves |
$327.00 |
$327.00 |
$327.00 |
$327.00 |
$327.00 |
$327.00 |
$327.00 |
- |
| Community Infrastructure |
$831.70 |
$831.70 |
$831.70 |
$831.70 |
$831.70 |
$831.70 |
$831.70 |
- |
| Wastewater |
$1,997.37 |
$9,454.51 |
$2,446.98 |
- |
$1,529.13 |
$1,529.13 |
- |
- |
| Water |
$126.16 |
$126.16 |
$126.16 |
$667.67 |
$126.16 |
$126.13 |
- |
- |
| Stormwater |
$1,167.57 |
$11,674.29 |
- |
- |
$2,711.07 |
- |
- |
- |
| Total Contribution |
$5,276.38 |
$23,240.24 |
$5,341.94 |
$2,652.95 |
$6,351.64 |
$3,640.57 |
$1,985.28 |
$796.45 |
For commercial and industrial developments the contribution is calculated on a household equivalent basis, determined by the size of the development, with calculations based on units of demand. The figures above show the cost per unit of demand.
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What is a unit of demand?
It is a way of measuring the expected demand on community facilities from a particular development or subdivision. It is based on one household unit or one lot created being one unit of demand. The construction of a second house on a property would create one additional unit of demand.
A commercial and industrial development may create several equivalent units of demand depending on its impact on services, roads and the like.
It would pay the relevant contributions based on the number of units created.
|
Example 1: Residential subdivision at Ohope.
An owner subdivides their property containing one house into two lots.
The development contribution is based on one additional lot being created.
|
|
Amount per Unit of Demand |
Units of Demand |
Amount payable
excl GST |
| Solid Waste |
$111.66 |
1 |
$111.66 |
| District Roading |
$684.79 |
1 |
$684.79 |
| Northern Community Roading |
$30.13 |
1 |
$30.13 |
| Reserves |
$327.00 |
1 |
$327.00 |
| Community Infrastructure |
$831.70 |
1 |
$831.70 |
| Wastewater |
$1,997.37 |
1 |
$1,997.37 |
| Water |
$126.16 |
1 |
$126.16 |
| Stormwater |
$1,167.57 |
1 |
$1,167.57 |
| Total |
$5,276.38 |
|
$5,276.38 |
Fees current as at 1 July 2012
What happens if I don’t agree with the amount I have to pay?
You can apply to the Council to review the amount you have been charged. You have 15 working days to do that. The Council’s Hearings Committee will hear your case and you will be given an opportunity to speak at the meeting. You will be formally advised of the Committee’s decision within 10 working days of the meeting. There is also a $400 (deposit) charge for a review.
Who should I contact for more information?
In the first instance you should discuss your query with someone at the Council’s Customer Service Centre.
If they cannot help you, they will either be able to find out the information you want to know or refer you to the correct person. Phone 07 306 0500 or email: information@whakatane.govt.nz