Financial contributions are imposed to avoid, remedy, or mitigate adverse environmental effects on infrastructure networks resulting from subdivision and associated development, and for the purpose of achieving the objectives and policies of the district plan. Under Section 108(9) of the RMA Council may impose consent conditions requiring financial contributions to be paid for purposes specified in the plan.
Financial contributions are imposed so that the costs associated with new development from subdivisions do not fall inequitably upon existing ratepayers. Subdivision and development adds incrementally to demands on the infrastructure of the District. Council considers new developments should contribute a fair and reasonable sum towards meeting the cost of additional demand. Financial contributions are intended to cover a fair share of the cost of expanding the capacity of existing infrastructure systems to meet demand created from new development. Contributions are imposed in respect of car parking where required, roading, water supply, stormwater, wastewater, and reserves. Allotments created for the purpose of accommodating network utility and infrastructure operations are exempt from the payment of financial contributions.
While there are effectively several separate networks in the district, Council has chosen not to develop differing contributions given the existing District-wide funding source and the potential to create unintended cost barriers to development in parts of the District based on differentials in contributions. Council has therefore chosen to balance these varying costs by developing a district-wide contribution for each of the services for which a financial contribution is required. The levels of the contributions are based on the financial value of the existing networks divided by the number of existing users. In this manner new subdivision or developments effectively ‘buy in’ to the existing networks.
Where land use consent is to be granted for a shortfall in on-site car parking, there are several mitigation options that can be utilised through Council imposing resource consent conditions. These include a consent condition requiring a financial contribution to be paid in lieu of providing on-site car parking, with Council then using the collected parking contributions to provide extra parking spaces on public land in an appropriate location to alleviate any shortfall. Such contributions shall be paid prior to the commencement of the activity, or as stated in the conditions of the resource consent.
One of the impacts of a subdivision is upon roading, water supply, wastewater, stormwater and reserves networks. If the district plan provides for it, subdivision consent conditions are able to require a financial contribution in respect of these impacts. Under this plan subdividers are required to contribute financially to help mitigate potential adverse effects arising from the subdivision and to ensure that the services within the district that are required to support subdivision and associated development continue to operate effectively.
To provide for the sustainable, secure and efficient use and development of infrastructure within the District, while seeking to avoid, remedy or mitigate adverse effects on the environment.
Include financial contributions as consent conditions on subdivision consents, to reflect the demand on infrastructural services generated by the subdivision and the associated development.
Require financial contributions for the provision of car parking where this cannot be provided by an activity or development to the extent required on site, except in Tokoroa and the Kinleith Industrial area.
Allow for the payment of financial contributions in accordance with the planned stages of any subdivision activity.
Provide for an annual review of the level of financial contributions that will be applied.
The method of calculating the financial contribution is based on the existing value of the network and the number of rateable units in the district that are charged for use of the particular network (either the Uniform Annual General Charge (UAGC) or alternatively a rate for the specific network).
The formulae are stated below for each contribution and will be adjusted annually based on the latest valuation of the asset as at 1 July, multiplied by an adjustment factor to provide a discount to the level of contribution charged. The purpose of the adjustment factor is to enable Council to annually adjust the level of the contribution in response to the level of development activity within the District. The adjustment factor and the contribution amounts will be set annually through the Annual Plan process and advertised through the Schedule of Fees and Charges.
Financial contributions in the form of money as part of a subdivision consent must be paid prior to the issue of a certificate pursuant to Section 224 of the Resource Management Act 1991. Financial contributions in the form of land as part of a subdivision shall be vested in Council and shown on the survey plan approved pursuant to Section 223 of the Act.
Where a subdivision is to be staged, it may be appropriate that the financial contribution also be staged to recognise the incremental increase in effects as the stages are developed. The conditions of the subdivision or land use consent should state the timing for the payment of the contribution.
Allotments created for the purpose of accommodating infrastructure and network utility operations shall be exempt from the payment of financial contributions in respect of those allotments.
If the developer undertakes related mitigation works outside of the subdivision with the agreement of Council, the value of this work will be discounted when determining the level of financial contribution payable.
(1) Financial Contribution for Roading
A financial contribution towards upgrading the existing roading network is charged on the basis of the number of additional residential, rural, commercial, or industrial allotments (except where an allotment is created for the purpose of infrastructure or network utility operations). The contribution addresses the cumulative impact of the additional traffic created through the subdivision and the associated development, and the resulting increase in demand for capacity within the roading network.
The roading financial contribution formula is:
$ Value of the roading asset divided by the number of rateable units charged the UAGC multiplied by the number of additional lots created.
The cost of formation and construction of all new roads to be vested in Council and/or all internal service roads and footpaths for a development shall be borne by the developer.
The cost of formation and construction of an access to and from an existing formed public road shall be borne by the developer.
The cost of formation and construction of unformed roads which are required as part of a development shall be borne by the developer.
The value of the roading asset includes the road structure, kerb and channel, street lighting, footpaths, bridges and culverts, but excludes non-depreciated assets (land under roads and road formation).
(2) Parking
The payment of a financial contribution in lieu of providing on-site parking is an alternative approach in situations where the developer is unable to provide all of the car parking within the site, and Council agrees it is appropriate. This provision can only be applied within COMZ PREC1-Putaruru, and the GIZ at Putaruru, Tīrau, and Lichfield. Where a financial contribution is imposed it shall be used by Council for provision of additional car parking in the locality. The financial contribution will be imposed as a resource consent condition and shall be determined in the following manner:
The shortfall in on-site parking spaces is identified based on TRAN-R5(1) and is then multiplied by $4000 per space (inclusive of GST) to calculate the amount of contribution to be paid.
This contribution is based on the value of land and the construction costs for Council of forming additional parking spaces and will be multiplied by an adjustment factor to provide a discount to the level of contribution charged. The purpose of the adjustment factor is to enable Council to adjust the level of parking contribution from 1 July each year through the Annual Plan process and advertise it through the Schedule of Fees and Charges. This will ensure the parking contribution provides a realistic alternative and does not act as a disincentive to development of commercial and industrial properties. The stated parking contribution is based on 2011 dollars and shall be indexed to the Producers Price Index (inputs index) compiled by Statistics New Zealand. The revised parking contribution will be advertised annually in the Schedule of Fees and Charges.
As a further alternative, where it is feasible and acceptable to Council, the developer could meet the actual cost of works within the road reserve in the vicinity of the site to provide the required car parking, or a mix of these two options may be appropriate.
(3) Urban Water Supply, Urban Wastewater and Urban Stormwater
An upgrading contribution for the existing urban water, wastewater and stormwater networks is charged on a per additional residential, commercial or industrial lot created basis (except where an allotment is created for the purpose of infrastructure or network utility operations). The contribution addresses the cumulative impact on the existing network and is based on ‘buying in’ to the existing network. Effectively this then entitles the contributor to use the network as with existing ratepayers in the District, and enables Council to increase the capacity of the network to meet the increasing demand for services.
A contribution should only be charged in respect of water supply, wastewater and stormwater if those particular networks are being utilised by a subdivision or development.
The cost of the installation of services (water, wastewater, or stormwater reticulation) including ancillary works such as pump stations, within a development, shall be borne by the developer.
The cost of connections to Council's services, where these services are available in terms of the requirements of the Local Government Act 2002, shall be borne by the developer. These costs shall include supervision to ensure that the work is carried out to a satisfactory standard.
If the Council requires larger sized services than those required by the development, Council shall meet any additional costs which will be recovered from future developments through the payment of financial contributions.
If the developer undertakes related mitigation works outside of the subdivision with the agreement of Council, the value of this work will be discounted when determining the level of financial contribution payable.
The water supply financial contribution formula is:
$ Value of the water supply asset X Number of additional lots created
Number of rateable units charged the urban water supply rate
The wastewater financial contribution formula is:
$ Value of the wastewater asset X Number of additional lots created
Number of rateable units charged the sewage disposal rate
The stormwater financial contribution formula is:
$ Value of the stormwater asset X Number of additional lots created
Number of rateable units charged the UAGC in Tokoroa, Putaruru, Tīrau and Arapuni
(4) Urban and Rural Reserves
A contribution shall be paid towards the existing reserves network charged on a per additional residential, rural, commercial, or industrial allotment created basis (except where an allotment is created for the purpose of infrastructure or network utility operations). The contribution addresses the cumulative impact of the demand created on the reserves network through the subdivision of land and associated development, and the resulting demand for additional reserves, and enhanced facilities at existing reserves within the district.
The reserves financial contributionformula is:
$ Value of the reserves asset X Number of additional lots created
Number of rateable units charged the UAGC
The following may also be relevant:
(1) Chapter 11 Subdivision
(2) Section 12.1 All Activities
(3) Part 3- Any relevant zone or overlay
Financial contributions are a tool used by Council to avoid, remedy or mitigate adverse environmental effects, and to ensure the reserve and infrastructural networks of the district are maintained to an appropriate standard for existing and future users.
Financial contributions may be used as a consent condition on subdivision and land use consents to:
(a) Avoid land use activities generating adverse environmental effects as a result of infrastructural systems not being able to cope with demand generated;
(b) Avoid downgrading of the quality of service offered to existing users as a result of additional loadings from new subdivision and development;
(c) Provide a mechanism to mitigate adverse effects that cannot otherwise be avoided or remedied on the district’s natural and physical resources that may result from new subdivision, use and development; and
(d) Avoid pressure on reserves and recreational areas in existing areas by providing additional reserves and enhancement of existing reserves.
Financial contributions assist in maintaining efficient roading, water supply, wastewater, stormwater and reserves networks, and avoid additional loadings from new development having a detrimental impact on the quality of service provided to existing users.
That the financial contributions contribute to addressing the cumulative impact of demand generated by subdivision and associated development, with increases in capacity as necessary.