Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Proposed Changes to Development Contributions Policy

Proposed Changes to Development Contributions Policy

Dunedin (Wednesday, 19 February 2014) – Proposed changes to the Dunedin City Council’s Development Contributions Policy will be consulted on as part of the Draft 2014/15 Annual Plan.

The proposed changes aim to ensure developers pay more of the costs associated with creating subdivisions and constructing new buildings, rather than general ratepayers.

For many years the cost of supplying services such as water, wastewater, stormwater, roads and community infrastructure to new residential areas has been met mainly through rates or rate-financed debt. In most of the country, developers meet a reasonable share of these costs.

DCC Chief Executive Officer Dr Sue Bidrose says the DCC has been aware for some time that its development contributions are much lower than most other large local authorities.

Aside from some areas of Mosgiel, the current policy only charges a development contribution for reserves, of just $250 per section.

In contrast, research for the Department of Internal Affairs shows the average development contribution charge in New Zealand is about $14,000 per section and the median is about $12,000.

The latest Draft Development Contributions Policy proposes a charge of $5,300 per equivalent household unit – for example a new three-bedroom house on a newly subdivided section – in the Dunedin city area.

The proposed charge of up to $5,300 is significantly lower than the $20,455 charge suggested in a draft policy released in 2011. Different charges will apply to different types of development in different areas and new provisions are proposed for credits, deferrals and objections.

A full review of the policy began in 2009 and a draft policy was released in 2011. After public consultation, in which almost 200 submissions were received, a special Council committee has been considering the detailed issues around changing the policy.

Most submitters wanted developers to pay a fair proportion of the DCC’s increased costs associated with development, but there was a strong message that $20,000 per section was too high for Dunedin.

Dr Bidrose says, “Councillors listened to that feedback, considered the options and decided on what feels like an equitable apportionment of development-related costs between ratepayers and developers.”

If adopted, the revised Draft Development Contributions Policy is expected to contribute a total of between $6.3 million and $19.2 million over 10 years, compared with $4.2 million to $9.3 million under the current policy.

The actual revenue collected will depend on issues such as how much development occurs and where it occurs. As happens at the moment, any revenue must be spent in the area of the city from which it is collected, eg in the Karitane area. The money must also be spent on the activity for which it is collected, such as wastewater collection and disposal, or reserves.

The draft policy takes into account proposed amendments to the Local Government Act currently before Parliament. In particular, this relates to limiting the types of community infrastructure for which development contributions can be charged. Under the proposed amendments, contributions can be charged for services such as public toilets and town halls, but not for libraries, museums and swimming pools.

In some areas of Mosgiel, where much of Dunedin’s development occurs, development contributions have been at a higher level since 2008.

The Revised Draft Development Contributions Policy has been released now as the proposed changes reflect the capital expenditure budget for 2014/15 and beyond, which will also be consulted on through the Annual Plan. More information on the policy can be found at www.dunedin.govt.nz/draft-development-contributions.

Residents are encouraged to have their say on the proposed changes once the Draft Annual Plan has been discussed and approved by the Council on Monday.

If adopted, the policy changes will apply to applications for resource consent, building consent or service connection lodged from 1 July 2014.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

More Evidence - Scoop Press Conference Recordings:
PM's Post-Cab Presser 8/8/11
"at that point [Tucker] told me he'd release it ..."

Hager Revelations: Inquiry Into NZSIS Release Of Goff Docs

The Inspector-General of Intelligence and Security (IGIS), Cheryl Gwyn, announced she would be instituting an inquiry concerning allegations that the New Zealand Security Intelligence Service (NZSIS) might have released official information to Mr Cameron Slater, regarding briefings provided to the then Leader of the Opposition, for political purposes...

“I am satisfied there is a sufficient public interest justifying the commencement of an own-motion inquiry into the substance of the issues raised with my Office,” said Ms Gwyn. More>>

Goff: Director’s Letter Contradicts Key’s Claims

At yesterday’s media standup, when asked on the topic John Key said ‘I wasn’t told’...
“In a letter dated November 2011 former SIS director Warren Tucker states three times that ‘in accordance with the usual practice of keeping the minister informed’ the Prime Minister had been told. More>>


 

Parliament Today:

Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

ALSO:

Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

Earlier:

Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

ALSO:

Fish Pun Warning: By Hoki! It’s Labour’s Fisheries Policy

A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. More>>

ALSO:

It's Official: Governor General Gives Direction To Conduct Election

The Governor General has signed the writ directing the Electoral Commission to conduct the General Election on 20 September 2014. This is the formal authority to run the 2014 election, and enables candidate nominations to open tomorrow Thursday 21 August 2014. More>>

Gordon Campbell: No More Mr Nice Guy

When future historians seek to identify the exact moment when the prime ministerial career of John Key hit the downward slope, they may well point to Key’s interview yesterday with Guyon Espiner on RNZ’s Morning Report. More>>

ALSO:

Dirty (Politics) Weekend: Collins’ Admission Reason For Key To Act

"Despite claiming that the evidence about her in Nicky Hager's book was ‘false’ Judith Collins has now been forced to admit that she did send information about a Ministerial Services staff member to Cameron Slater for him to use in a baseless smear campaign. More>>

ALSO:

Potential Disasters: Underground Coal Fire On Denniston Plateau

Forest & Bird says one or more coal fires have broken out beneath the Denniston Plateau, and that the Department of Conservation (DOC) must stop Bathurst Resources’ preparatory mining work going on there until the fire or fires are extinguished. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news