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Development Contributions Policy projected to ease rates $160m over next 10 years

13 March 2006

To help ease pressure on rates, the Council plans to bring in a revised Development Contributions Policy from 1 June 2006, which early financial projections indicate will net more than $160 million to help pay for city growth over the 10 years of the plan.

“The idea is to get those responsible for growth to help pay for the cost of that growth – whether it be new roads, footpaths, wastewater pipes or reserves and new leisure facilities. Under the current policy, developers and new section buyers, have paid about 40% of this cost and the city’s ratepayers have picked up the rest.
“The revised policy will ensure that developments requiring new or expanded infrastructure pay a  fairer proportion of the cost of providing that infrastructure. We think the new system more equitably shifts the cost of growth to developers without discouraging development,” says Council General Manager of Strategy and Planning, Michael Theelen.

An initial meeting has been held  with developers to get their views on the revised policy direction. The proposed policy has been adopted as part of Council’s proposed Long Term Council Community Plan.

Specific public consultation will be undertaken on the policy during the long-term community plan submission period of 28 March to 5 May. These meeting dates will be confirmed and advertised in the next few weeks, so developers and the public can have their say about whether they believe Council has struck the right balance, Mr Theelen says.

The policy has been included in the Long-Term Council Community Plan as an appendix and will be available from Tuesday, 28 March, for people to make submissions for or against. Submissions on the LTCCP close on Friday, 5 May, 2006.

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