Council contributions?

Our Experts Answer:

Development contributions and financial contributions provide ways of recovering some of the costs of growth from those who create new developments. The council needs to manage the impacts of this growth, such as extra rain water going down our drains, more vehicles on our roads and greater use of public space and community facilities.

Council adopted development contributions policy under the Local Government Act 2002 allowing charges to be made as part of approval of development projects such as subdivisions, new houses or apartments and commercial, retail or industrial buildings. Charges may also be applied to expansions to existing buildings and some changes of use. The money collected from development contributions is used to pay for the cost of the infrastructure needed to meet the additional demand created by growth including open space, drainage, roads and community facilities.

Financial contributions (sometimes called reserve contributions) may be charged when resource consents are granted for new developments. They typically apply to consents for new houses or apartments, subdivisions, most types of non-residential developments (including those that result in new floor area) and some changes of use. They are imposed under the Resource Management Act 1991 and councils district and regional plans. The revenue raised is used to help fund the cost of projects that manage the adverse effects of these developments typically open space, drainage, roads, parking or community facilities.