Developers are required to pay a development contribution to the council when developing or requiring new services for a property. The Kaipara district is experiencing rapid growth in some areas and this growth can only be sustained if developers contribute to the cost of new or expanded infrastructure that supports that growth.
What are development contributions and what is the money used for?
A Development Contribution (DC) is a levy on new developments. They are collected under the Local Government Act 2002 and are there to ensure the costs of extra demand on council infrastructure from the development are not imposed on the community. Contributions are used for providing new or expanded infrastructure. The contributions are not used for maintenance and are only used for the purpose for which they were taken. For example, a roading contribution will only be used for constructing new roads and intersection improvements.
Development Contributions are assessed on:
- roading and transport
- water supply
- community infrastructure
- parks and reserves
Who pays them?
Development Contributions are usually paid for residential development (new houses), non-residential development (commercial, industrial or retail), subdivisions, new connections, and for certain changes of land use.
When do I pay?
Applications for resource consent, building consent or service connection trigger the requirement to pay development contributions. The due date for payment will be:
- For subdivision resource consents: prior to issue of the section 224c certificate.
- For other resource consents: prior to the commencement of consent.
- For building consents: prior to Code Compliance Certificate.
- For service connections: prior to connection.
- For certificates of acceptance: prior to issue.
If you want to avoid annual increases, you can always make payment earlier than the due date.
I don't get water, wastewater or stormwater, so why should I pay any Development Contributions?
Your development will still use council roads and parks and reserves so you need to pay your share to develop these.
I have to put all the services into my development so why do I still have to pay council more money?
Development Contributions are for your share of the cost of the trunk services, treatment plants and roads that your development connects to.