Development Contribution Policies are prepared under the Local
Government Act 2002. The Palmerston North City Council's
Development Contributions Policy came into force on 1 July 2004,
replacing financial contributions previously charged under the
Resource Management Act 1991. It affects most people and businesses
developing new residential, commercial or industrial sites or
buildings.
What are Development Contribution Levies?
Development Contributions are levies paid toward Council funded
infrastructure services that are required as a result of growth in
new households and development. The Development Contribution
levies are based on the cost of providing these services to new
developments, on a city-wide basis, and these costs are fairly
attributed across all new developments.
Every new development that connects into Council infrastructure
services places a demand and impact on those services.
Infrastructure services include roading, water, wastewater,
stormwater, parks and reserves
Please note that costs associated with the local 'site' effects
of a particular development are not covered in the Development
Contributions levy. For example, costs to provide adequate
site access or provide a local road to service a development to a
newly subdivided property incurred by an applicant are separate
from the Development Contribution levy.
Don't I already Pay for Infrastructure Services through my
rates?
Rates contribute toward the cost of maintaining and upgrading
infrastructure services only. Development Contribution levies
go toward the new infrastructure services required for new growth
and development and are not funded additionally through rates.
When does the new system come into effect?
Any subdivision consent, building consent or service connection
applied on or after 1 July 2004 will be subject to an assessment of
a development contribution levy under the new Policy.
Am I affected?
Your development may be subject to a Development Contribution
levy in one or more of the following circumstances:
- Subdivision
- Building or relocation of a new or additional dwelling or
non-residential building in the absence of subdivision
- Service Connection for the relocation of a new or additional
dwelling or non-residential building in the absence of
subdivision or building consent
What Infrastructure Services will I Pay For and How Much will
it be?
What development contribution levy you will pay will depend on
the type of development you are undertaking and the location of the
development.
Type of Development:
There are three different types of development in the City,
Residential, Rural and Non-Residential i.e commercial and
industrial. Below is a summary of the levies for
infrastructure services that will apply to your development
depending on the type of development you are undertaking:
Residential Development
Residential Development will be subject to a Roading, Water,
Wastewater and City Reserves levy. In some cases residential
development will also be subject to a Stormwater and Local Reserves
levies if it is in the Kelvin Grove or Aokautere suburbs.
Rural Development
Rural Development will be subject to a Roading and City Reserves
levy (dwellings only), except where a rural development connects
into other Council infrastructure services i.e. water.
Non-Residential Development
Non-Residential Development will be subject to a Roading, Water
and Wastewater levy. In some cases non-residential
development will also be subject to a Stormwater and Local Reserves
levies if it is in the Kelvin Grove or Aokautere suburbs.
The amount of development contribution levy you will pay will
depend on the above factors.
Council Consent Planning staff in the Customer Services Unit will
work out your development contribution levy payable when you apply
for your consent or service connection.
1 The exception to this is Ashhurst,
developments here will not be subject to a Water and Wastewater
charge
Who Pays the Development Contribution Levy and When is it
payable?
The applicant and eventual consent holder for subdivision
consent, building consent or service connection will be responsible
for paying the Development Contributions levy.
Depending at what stage the development contribution levy
applies it will be payable prior to either final approval of
subdivision, upon granting of building consent or before final
service connection.
Right of Objection to a Development Contribution Levy?
At the request of the applicant, the development contribution
required on a development may be considered for remission at
Council's discretion on a case-by-case basis. Council
recognise that in certain circumstances there will be no extra
demand placed on infrastructure services, a contribution may have
already been paid for an infrastructure service in the past or a
contribution applicable to a particular development could be deemed
to be manifestly excessive for any other reason. Council has
put in place a remissions process to deal with these circumstances
and may be considered for remission at Council's discretion on a
case-by-case basis.
An applicant may request a further review by a Hearings
Committee of an officer's determination on a request for remission,
for more exceptional circumstances. No further review would
be available unless the further request is received by Council
within 20 working days of receipt of the officer's decision and the
Hearings Committee gives leave for a further review.
The Hearings Committee will determine an application for leave
on the papers. The Hearings committee may give leave for a
further review only if it is clearly arguable that the development
contributions are manifestly excessive.
Remissions must be applied for before a development contribution
payment is made to Council. Council will not allow remissions
retrospectively.
Base Fees for the 2004, 2006, 2007 and 2009 Policies (including
the Producer's Price Index-Construction Adjustments)
The tables listed below provide the base fees for the 2004,
2006, 2007 and 2009 Development Contributions Policy and the
Producers Price Index-Construction (PPI) adjustments for the
2007 and 2009 Policies.
The 2007 Development Contributions Policy introduced the
following clause "If a development contribution is not paid within
12 months of the date the assessment was made, then the development
contribution shall increase annually on 1 July each year by the
amount of increase in the Producer's Price Index-Construction for
that year."
Where a development contribution was levied under the 2004 or
2006 Polices, but has not yet been paid, the amount payable is
calculated using the tables titled "Base Fees 2004" or "Base Fees
2006".
Where a development contribution was levied under the 2007 or
2009 Polices, but has not yet been paid, the amount payable is
calculated using the tables titled "Base Fees 2007 and Annual PPI
Adjustments" or "Base Fees 2009 and Annual PPI Adjustments".
(PLEASE NOTE: These fees are GST
exclusive.)
Base Fees 2004
Base Fees 2006
Base Fees 2007
- 2007 Base Fees - PPI Annual Adjustments
2008
- 2007 Base Fees - PPI Annual Adjustments
2009
- 2007 Base Fees - PPI Annual Adjustments
2010
- 2007 Base Fees - PPI Annual Adjustments
2011
Base Fees 2009
- 2009 Base Fees - Annual PPI Adjustments
2010
- 2009 Base Fees - Annual PPI Adjustments
2011
Where can I find Further Information?
The full Policy on Development Contributions sits in the Long
Term Council Community Plan.