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Development Contributions

When Does a Developer Have To Pay Development Contributions?

Council requires development contributions at the time of resource consents, building consents and service connections.  However different types of activities cause different effects, therefore Council may collect contributions in slightly different ways for some services.  The table below shows the different types of applications that may be made and the services for which development contributions will be assessed and will be collected.

Application

Services for which development  contributions will be collected

Resource Consent/
Subdivision

Roading, Stormwater, Waterworks and Wastewater Services, Reserves and Community Infrastructure.

Building Consent

Roading, Stormwater, Waterworks and Wastewater Services, Reserves and Community Infrastructure.

Service Connection

Waterworks and Wastewater Services - Please note when connecting to Council reticulated services the related development contribution will need to be paid in full before the connection can be completed.
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Non-Residential Development

While most of the development in the Far North is residential, contributions will also be taken from non-residential development, except for reserves. Note that a cap of up to 6% for roading contributions also applies.

Non-residential developments will be charged on the amount of Traffic Intensity Factors (TIF), water usage, wastewater discharge and increased impermeable surface.

Also refer to District Plan Appendix 3A re: Traffic Intensity Factors

Relocating Businesses: Council has recognised the importance of small businesses to the district and wishes to encourage these to grow. It has therefore decided that when a business relocates from one site to another it will not be required to pay additional roading contributions unless there is likely to be a significant increase in traffic movements.

Small Businesses: Council has recognised the importance of small businesses to this district and acknowledges that many of these that are established in fully serviced towns have a minimal impact on the district’s infrastructure. Council is willing to consider requests from such businesses for a reconsideration of their assessed development contributions.

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Adjustment Factor - Residential

The adjustment factor introduces a gradient of payment whereby residential subdivision and residential developments with a value of less than $122,000 per lot or $140,000 per residential unit receive a further discount from what would otherwise be required of them.

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Esplanade Contributions

Esplanade Contributions are still collected under the Resource Management Act as a 'Financial Contribution'.

For further information about Esplanade Contributions, please contact a Resource Planner using our normal contact details

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Overall Impact

The following table shows the 2008/09 contributions for a residential property liable for all categories of development contributions. Note: Roading and Reserve contributions are applicable for any second or subsequent dwellings on the site.

Group of Activities (Northern Ward)

Amount (includes GST)

Roading $ 4,752.00
Water Services $ 585.00
Wastewater Services $ 1,905.75
Stormwater Services $ 2,412.00
Community Infrastructure $ 3,742.88
Reserves $ 4,752.00
Total $16,878.38

Group of Activities (Western Ward)

Amount (includes GST)

Roading $ 4,703.63
Water Services $ 2,768.63
Wastewater Services $ 1,534.50
Stormwater Services $ 1,834.88
Community Infrastructure $ 1,515.38
Reserves $ 3,983.63
Total $16,340.65

Group of Activities (Eastern Ward)

Amount (includes GST)

Roading $ 6,127.88
Water Services $ 3,442.50
Wastewater Services $ 4,032.00
Stormwater Services $ 1,249.88
Community Infrastructure $ 4,681.13
Reserves $ 5,654.25
Total $25,187.64
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How Much Will a Developer Have to Pay?   

How Much Will a Developer Have to Pay?
(Please note all contributions are GST incl.)
Activity Ward Household Charge Unit Charge Charge Basis
Roading Eastern
Northern
Western		 $6,127.88
$4,752.00
$4,703.63

$612.78
$475.20
$470.36

per additional daily traffic movement generated (a household generates 10 traffic movements). Non-residential developments will have the amount of roading contribution payable restricted to between 1% and 6% of the development value.
Waterworks Eastern
Northern
Western		 $3,442.50
$585.00
$2,768.63		 $5.94
$1.01
$4.77		 per litre per day of additional demand for water (a household requires 580 litres per day of additional demand). Non-residential uses will be collected at the relevant unit charge per litre per day of additional demand.
Wastewater Eastern
Northern
Western		 $4,032.00
$1,905.75
$1,534.50		 $7.33
$3.47
$2.79		 per litre per day of additional wastewater generated (a household generates 550 litres per day of additional demand). Non-residential uses will be collected at the relevant unit charge per litre per day of additional demand.
Stormwater Eastern
Northern
Western		 $1,249.88
$2,412.00
$1,834.88		 $6.24
$12.06
$9.17		 Lots less than 600m2 per M2 of increased impermeable surface area (min 200M2) per residential unit or if increasing impermeable surface area by more than 30%. Lots greater than 600m2 per M2 of increased impermeable surface area (min 200M2) per residential unit or per 200m2 of increased impermeable surface area if greater than 200m2. Non-residential uses will be collected at the same amount per m2 of increased impermeable surface.
Reserves* Eastern
Northern
Western

$5,654.25
$3,480.75
$3,983.63

$5,654.25
$3,480.75
$3,983.63		 per lot (based on a minimum lot size of 1,200m2). The contribution will increase on a prorata basis where a residential lot size exceeds 1,200m2. Note: where any rural subdivision makes provision for one or more house sites, the contribution will be based on the minimum lot size per house site. No reserve contribution shall be payable on any non residential activity in rural or urban areas.
Community Infrastructure Eastern
Northern
Western		 $4,681.13
$3,742.88
$1,515.38		 $4,681.13
$3,742.88
$1,515.38		 per new household unit. For non residential development contributions will be assessed on an individual basis related to identified demand.

Important Notes:

All amounts quoted above are inclusive of GST for your convenience. Council's Development Contribution Policy in full, excludes GST. This explains any discrepancies in amounts, between the two.

Also refer to District Plan Appendix 3A re: Traffic Intensity Factors

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At what stage are Development Contributions due to be paid?

If your application has had Development Contributions assessed as payable, they are payable at the following stages:

Building Consent - due for payment the day the Building Consent is granted.

Land Use Consent - prior to the commencement of the activity to which the consent relates.

Subdivision Consent - prior to the Section 224 (c) Certificate being issued, unless an agreement has been made for these to be paid at some other time.

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Development Contributions Information Sheet

Council acknowledges that the development contributions policy is a complex document that can be difficult to understand. This information sheet has been prepared to outline some matters that may be of assistance to the developer.

Why does the FNDC have a development contributions policy?
The development contributions policy has been prepared strictly in accordance with the Local Government Act. Its purpose is to ensure that developers contribute enough to pay for the cost that their development will place on Council’s infrastructure.

The growth in this district causes a need to enlarge such things as sewerage, water services, particularly reticulation and treatment. A need to increase the availability of recreational facilities such as libraries, reserves. Improve the carrying capacity of the roading network and to provide all the facilities that a growing community demands.

New infrastructure can only be paid for in one of two ways. Either Council borrows the money and every ratepayer pays that cost, or the new developers that cause the need for the increased infrastructure, pay for it.

There is often an argument that new developments pay more rates so that should pay for the new infrastructure. That is not the case, new developments do add to the rating base, but the additional rates they pay only cover the maintenance costs on the new infrastructure, not its capital costs.

It is for this reason that this Council, like most other councils in New Zealand, have taken the view that the developer should pay.

If I have to undertake works as a result of my resource consent, do I also have to pay a contribution?
In general, yes. The works that a developer undertakes as a result of the resource consent are generally those that relate to the development itself rather than as an offset against the additional infrastructural demand caused by the growth.

The types of works that may be required include the provision of reticulation, footpaths, internal or access road works, street lighting etc within the subdivision. None of these things reduce the cost of the demand on the Council’s infrastructure so generally will not provide a credit against contributions.

Sometimes a developer will be asked to undertake works that are outside of the immediate area of their development and/or provide for a capacity that is greater than is needed for the development as proscribed by Council’s engineering standards or the district plan. In such instances, Council will consider whether there should be a credit against the contributions. Such a credit will not exceed Council’s calculation of the public good of those additional works. It is important that any credit is negotiated and agreed early in the process to avoid future misunderstandings.

Can I pay my contributions over time?
Generally Council will require some form of security where it allows someone to delay paying their contributions. This security may take the form of a bank guarantee, a statutory land charge (a form of mortgage) over the property or some other mechanism that will ensure that the monies will be paid in the future. Where Council does allow a delay in payment, it will charge interest and costs to the applicant to cover the cost of the money and the administrative costs.

Can I object to my contributions?
Yes. There is a two stage process.

Step One
When you receive the initial advice letter you are invited to contact Council if you believe that there is anything in the calculation of the contributions that is wrong or where you have information that may allow for a reduction. During this time we are more than happy to work with you to see whether there are any grounds for a reduction. There is no cost for this step.

This is the time that you should consider the valuation of your development to see whether it falls below the adjustment levels. When you make an application under this provision you will be required to provide suitable evidence of the claimed valuation. This evidence can include a valuation by a registered valuer that is not more than three months old, or some other method acceptable to Council. It is important to note that the valuation must be a true market value not a valuation for the purposes of considering development contributions.

If we don’t hear from you within 15 days, we will issue a formal development contributions notice which will form the basis of your subsequent invoice.

Step Two
Once you receive your assessment, or earlier if you wish, you can lodge an application for a review of contributions. This is a formal process where you have the ability to present a case, in writing, that you believe would justify a reduction of the contribution on your development.
The policy sets out a number of grounds that Council will use to consider whether a reduction may be allowed, these include:

  • Appropriate statutory considerations, reasonableness.
  • Fairness.
  • Consistency.
  • Integrity of the development contributions scheme.
  • Hardship.
  • Appropriateness of the development contribution policy to a particular development.
  • The period that the owner has owned the land that is the subject of the proposed contribution.
  • Whether a residential development is being undertaken on behalf of a first home buyer.
  • Whether a small business to be developed in a fully reticulated and serviced township will give rise to a significant demand for growth related additional infrastructure.
  • Other sources of funding.

There is a non-refundable fee of $500 to cover the administrative costs of undertaking a formal review of a development contribution. This is why it is important to make sure that all possible avenues are considered at the step one stage to avoid the need for the formal review process.

Council or officers acting under delegated authority will consider any applications for a review that are received. All information necessary to consider the application should be provided by the applicant to ensure that a fair and reasonable outcome is achieved. The application for a review does not include the right to be heard by Council.

Please feel free to discuss your proposed application for a review with the Development Contributions Team.

Other information
Please do not hesitate to contact the Development Contributions Team if you have any questions or concerns about your contributions or if you would like more information about any of the matters outlined in this information sheet.

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For any further information please contact us using our e-mail form or if you would prefer to speak to one of our staff regarding your query, please telephone us instead using our normal contact details.

Page last updated:27 August, 2008