We are reviewing the 2018 policy in this area and putting forward options for the policy for the next financial year.
The options are:
- Option 1: Status quo, no change to the 2018 Development Contributions Policy.
- Option 2: Proposed changes to the 2018 Development Contributions Policy.
Three key changes to the 2018 Development Contributions Policy are being proposed to ensure a fairer outcome following the higher growth now proposed for the City since the 2018 Long-term Plan (LTP) was adopted.
We’d like to hear your views about what we are proposing to change:
A. Ceasing the phasing in of increased development contributions over a seven-year period, as per the 2018 LTP, and from July 2019 charging 100 percent of the development contribution charges.
B. Removal of the allowance for two dwellings on one site before development contributions are payable.
- The main reason for the proposed change is projected growth is now significantly higher than when the 2018 LTP development contributions were established. The development contributions for the 2018 LTP were based on the 2016/17 growth forecasts by Forecast ID. Since then with developments such as those proposed for Eastern Porirua, growth has increased substantially and further capital investment will be required by Council to ensure there is sufficient infrastructure in place to enable the additional growth to be sustained. Due to this change in proposed growth, the transition to 100 percent of development contributions charging over a seven year period is no longer fair and equitable.
- It is proposed that as from July 2019 the development contributions charges be set at 100 percent of those laid out in the 2018 LTP. Because of the increased growth proposed and the anticipated additional expenditure that is likely to be required. The proposed move to 100 percent of the 2018 development contribution charges, from July 2019, will move the charges to a level to recover the share of the capital expenditure relating to the lower level of growth known at the time of adoption of the 2018 LTP. The capital expenditure which will be required to enable the higher level of growth now projected, will not be known until the 2021 LTP work is finalised. It will not be recovered through the development contributions until the 2021 LTP is adopted.
C. Introducing a time restriction for holding the level of development contribution charges.
- Currently development contributions do not have to be paid on a second dwelling built on the same site as an existing dwelling (where there is no subdivision). This impacts council's ability to provide the required infrastructure. At the moment the owners of these properties are not currently charged development contributions until they subdivide. It is estimated in the future that more than 800 sites will not require development contributions being paid on them unless there is a change to this policy.
- Under the current policy in the 2018 LTP, it was proposed that development contributions remain the same from the resource consent stage to the issuing of a Section 224 certificate. It is now proposed to restrict the time that the level of development contributions can be held, to 36 months, after resource consent is approved.