Contributions policy to change

After a nationwide change to the way councils approach development contributions the Thames Coromandel District Council has released an amended draft policy this week.

The district council no longer collects development contributions toward new infrastructure projects for harbour facilities, solid waste, libraries, swimming pools, airfields or cemeteries.


The Thames Coromandel District Council has released an amended draft Development Contributions Policy this week. Photo: File

This is part of an amended draft Development Contributions Policy and if adopted by the TCDC it will not take effect until July 1, 2015.

'Public consultation will begin in March of next year, at the same time as the Long Term Plan consultation,” says the TCDC.

'The government changed its development contributions legislation for new projects, but projects already underway will continue to be funded from development contributions.”

The TCDC has amended three areas of the policy in this draft; community infrastructure contributions, new Purpose and Principles provisions, and reserves contributions for non-residential developments.

The new legislation also requires another small change to the process. Development contributions will now be calculated on the charges that apply at the time a consent is lodged, not granted.

Provisions are also now included in the legislation to allow for private developer agreements.

The current TCDC Development Contributions Policy already allows this, but the Local Government Act 2002 now includes specific requirements about the content and process that must be followed.

'Either councils or developers can propose agreements, and if a council does not wish to enter into an agreement, it must provide a written response setting out reasons for this.”

Developers will also now have the ability to object to an independent commissioner over the development contributions assessed.

The Government has appointed a pool of potential commissioners with a range of experience and skills and councils may appoint one or more commissioners to consider an objection.

Contributions are collected on new developments to cover costs for projects council needs to build, or otherwise provide to supply services to new developments in the Coromandel, says the TCDC.

'The concept is that existing ratepayers shouldn't have to pay for infrastructure needed for new developments, and that it's fairer if those costs are covered by the new development that needs it.”

What services do Development Contributions pay for?

  • District and community transportation
  • Public conveniences
  • Halls and community centres
  • Play equipment on neighbourhood reserves
  • Water supply
  • Wastewater
  • Stormwater
  • Reserves (for residential development only)

What services do Development Contributions no longer pay for?

Contributions for the following services are no longer collected for new Council infrastructure projects on consents lodged on or after August 8, 2014:

  • Cemeteries, land and building
  • Solid waste
  • Parks and reserves
  • Harbour facilities
  • Swimming pools
  • Libraries
  • Airfields

To download the amended draft visit www.tcdc.govt.nz/developmentcont

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