Council consults on options to fund growth

North Shore City Council proposes to introduce development contributions on July 1, 2004 as a fairer way of funding the rapid growth of the city.

The proposal is included for consultation in the council's draft 2004-2014 City Plan (long term council community plan) released today for feedback.

Development contributions are contributions of money or land collected by the council when a development is undertaken or when the use of an existing property changes.

Deputy Mayor Dianne Hale says they mean that those creating the need for additional infrastructure and services in North Shore City would pay the associated costs.

"They would enable the council to shift the burden of paying for new infrastructure, needed as a result of growth, from ratepayers to developers," Councillor Hale says.

"We believe that they will provide greater transparency and certainty for the whole community, and are a fairer way of charging the cost of growth to those who are creating the growth."

She says this would result in approximately $195m of growth-related capital expenditure over the next 10 years being funded by development contributions rather than rates.

Development contributions would fund reserves, transport, water supply, wastewater collection and treatment, stormwater collection and management, and community infrastructure such as libraries, leisure and community centres.

Dianne Hale says the council's power to require development contributions is new, and comes from the Local Government Act 2002.

The council is seeking feedback on its draft development contributions policy, including the schedule of proposed charges, during consultation on the draft City Plan. The last day for submissions is April 22.

North Shore City is giving people three options for funding growth.

Subject to the council approving the policy, development contributions will apply to any application for resource consent, building consent or service connection lodged after December 19, 2001 and granted on or after July 1, 2004.

Information about the proposal to introduce development contributions is available on the council's website at http://www.northshorecity.govt.nz / Environmental Services at 521 Lake Road and all area offices.

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