Do I need to pay a development contribution?
You will need to pay a development contribution if your project increases the demand on stormwater, wastewater, water, road assets or parks and reserves, and is:
- A residential development for a new house, apartment or residential allotment, or
- A non-residential development for a new commercial, retail, or industrial building or activity that requires subdivision, building or land use consent.
Development contributions must be paid at the following development stages:
- Subdivision consent - before a 224(c) certificate is issued.
- Land use consent – before commencing the consent or within 180 days of consent being granted, whichever happens first.
- Building consent – before the code compliance certificate is issued or within 180 days of granting consent, whichever happens first.
Development contributions are payable on the first consent application for a development. Any subsequent applications are reassessed to ensure that you have been charged appropriately at each stage.
How much do I have to pay?
The amount payable is based on the number of household unit equivalents (HUE) the development generates. An HUE is the equivalent of one average dwelling. The contribution per HUE is outlined below in Table 1.
Residential development: The number of HUEs is based on the number of new dwellings or lots developed.
Non-residential development: The applicant is required to provide information on the demand they expect to generate for each activity. The number of HUEs is calculated by dividing the development’s demand by demand per HUE in the district (see Table 2 below).
The conversion of demand to HUEs will be considered on a case-by-case basis and will be based on a combination of industry standards and information provided by the applicant.
Table 1: 2020/21
|Activity||Demand per HUE|
|Water supply||806 litres/household/day|
|Stormwater, drainage, flood protection & control works||400 litres/impervious area (m2)|
|Roads||10 vehicle trips/day|
Table 2. 2020/21
|Area where payment is required||Activity||Type of development||Contributions per HUE GST Inc.|
|District wide||Transport||All developments||$499.61|
|District wide||Water||All developments||$645.35|
|District wide||Wastewater||All developments||$3,645.29|
|District wide||Stormwater||All developments||$318.02|
|District wide||Parks||Residential developments only||$54.62|
|Local Network||Water||New Plymouth||$2,741.72|
|Growth Area||Area Q||$11,022.89|
|Growth Area||Upper Carrington||$8,217.82|
|Local Area Catchment||Bell Block||$765.74|
|Local Area Catchment||Inglewood||$884.47|
|Local Area Catchment||Ōākura||$2,383.35|
The development contribution charges for 2020/21 in Table 2 were increased under the provisions of section 106 (2C) of the Local Government Act 2002. The rate of increase in the Producers Price Index Outputs for Construction provided by Statistics New Zealand was 6.08% as of 31 March 2020 (only index available at time of calculation) from when they were set at 30 June 2018. This was multiplied by the proportion of the total costs of capital expenditure to which the development contribution was applied that does not relate to interest and other financing costs to determine the inflated development contribution charges for 2020/21.
Remissions, reductions, refunds and objections
The Council may decide to allow remissions for particular community infrastructure works, such as that undertaken by schools, charitable organisations or trusts. Each application for a remission will be considered on a case-by-case basis.
Requests for reconsideration are determined by us and must be lodged within 10 working days from the issue of your development contribution notice. This does not incur any costs and may be lodged if you believe that:
• The development contribution was incorrectly calculated or assessed under the Council’s Development and Financial Contributions Policy; or
• The Council incorrectly applied its Development and Financial Contributions Policy; or
• The information used to assess your development against the Development and Financial Contributions Policy, or the way the Council has recorded or used it when requiring a development contribution, was incomplete or contained errors.
We will notify you of the reconsideration outcome within 15 working days of the receipt of all required information. If you are unhappy with the result you may lodge an objection.
Objections are determined by a government-appointed commissioner and must be lodged with us within 15 working days from the issue of your development contributions notice, or the notice of the reconsideration outcome. You will need to cover the costs for the objection process.
Objections may only be made on the grounds that the Council has:
- Failed to properly take into account features of the development that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities in the New Plymouth district or parts of the district; or
- Required a development contribution for community facilities not required by, or related to, your development, whether on its own or cumulatively with other developments; or
- Required a development contribution in breach of section 200 of the Local Government Act 2002; or
- Incorrect applied its Development and Financial Contributions Policy to your development.