As Hutt City grows, additional demands are placed on the city’s infrastructure. This requires Council to provide new infrastructure or infrastructure of increased capacity to help meet these demands. If these costs are funded out of general rates, it places the burden of these costs on existing ratepayers.
Development contributions provide the Council with a method to fund planned infrastructure required as a result of growth, such as subdivision or workplace building developments.
Development contributions may be required in relation to a development if its effect is to require new or additional assets or assets of increased capacity and as a consequence the Council incurs capital expenditure to provide appropriately for network infrastructure or community infrastructure. This also includes infrastructure already built in anticipation of growth. The policy provides for the Council to impose development contributions on developments to fund growth related capital expenditure on:
Development contributions are not payable at this stage for reserves (which are dealt with through financial contributions under the RMA) or other categories of community infrastructure such as pools, libraries, or museums.
Hutt City’s Development Contributions Policy is divided into three parts which can be downloaded separately. Part 2 is all most people will need to read if they wish to know how to calculate the development contributions payable for a specific development:
Part 1 provides a summary of the Council's financial contributions and development contributions policies.
Development Contributions Policy 2009-2018 part 1 (PDF 85kb)
Part 2 sets out the 'operational' development contributions policy. This describes the kinds of development for which development contributions are payable, what they amount to, when they are assessed, and when they need to be paid etc.
Development Contributions Policy 2009-2018 part 2 (PDF 121kb)
Part 3 sets out the 'substantive' development contributions policy. This describes the legislative framework, the process followed by the Council, the methodology followed to make the decision to use development contributions to fund growth related capital expenditure, and the relevant capital expenditure figures. Part 3 will mainly be of interest to people who want to know the details of how the policy was developed and how the development contributions payable under this policy were determined.
Development Contributions Policy 2009-2018 part 3 (PDF 165kb)
You can download the complete policy here.