Development and Financial Contributions

Nelson city continues to experience strong growth in its population, visitors, development and the local economy.

This growth generates increased levels of subdivision and development activity which places greater pressure on the assets and services provided by the Council. Significant investment is required to meet the demands of growth through providing additional assets, or increasing the capacity of existing assets.

Historically, Council has sought a contribution towards the expansion of the city’s reserves, community facilities and infrastructure from those developments that place additional demands on these services. Council has previously levied these contributions under two pieces of legislation:

  1. Development Contributions: are levied under the provisions of Part 8 Subpart 5 and Schedule 13 of the Local Government Act 2002 (LGA). To make use of these provisions Council must adopt a Policy on Development Contributions as part of the Council’s 10-Year Plan (“Long Term Plan” or “LTP”).

  2. Financial Contributions: are imposed as a condition of a resource consent pursuant to sections 108, 220, 407 or 409 of the Resource Management Act (RMA) 1991. Under the Resource Legislation Amendment Act 2017, Councils will no longer be able to levy financial contributions after April 2022.

From the 1 July 2018 Council will only levy development contributions for all assets.  These will apply to applications for a resource consent, building consent, or service connections received on or after that date.   All growth-related costs for community facilities and reserve land that are attributable to development will be charged through development contributions.

Development Contributions Policy 2018

Download the Development Contributions Policy 2018 (1.9MB PDF)

Update May 2019

Nelson City Council Development Contributions Policy – Annual Inflation adjustment

The Nelson City Council Policy on Development Contributions 2018 states in section 1.3:

“For the financial years in between LTPs, the development contributions will be inflated based on the rate of increase (if any) in the Producers Price Index Outputs for Construction provided by Statistics New Zealand since the development contribution was last set”

To allow for the delay in Statistics New Zealand providing the year to June data, Nelson City Council uses the year to December index data.

The Producers Price Index Outputs for Construction for the 12 month period December 2017 to December 2018 years shows an increase of 3.9%. Therefore the 2019/20 financial contributions by activity beginning 1 July 2019 will be:

Activity

$ per HUD (excl GST)

NETWORK INFRASTRUCTURE

$12,100

Stormwater[1]

$3,360

Wastewater

$5,190

Water supply

$2,130

Transportation

$1,420

COMMUNITY INFRASTRUCTURE

$290

Community infrastructure

$290

RESERVES 

 $1,200 + 40m2/HUD

General reserves [2]

$1,200

Neighbourhood reserve land  
Total

$13,590

The table above replaces table 1 of the Nelson City Council Policy on Development Contributions 2018.

 

Council has developed a calculating spreadsheet to assist applicants of simple residential developments to estimate the amount of development contributions that would be payable as a result of a resource consent, building consent or service connection. More complex and commercial developments will be assessed as part of the application and connection approval process. The policy specifies how all developments will be assessed.

Development Contributions 2018 Calculator (714KB XLSX)

Existing titles approved prior to 1 July 2018 will continue to be assessed under the policy relevant at the time the application was submitted, and in accordance with conditions or notes on the consent.  Development Contributions are expected to gradually replace Financial Contributions over the next 10 years as developments come online. Council’s previous development and financial contributions policies are provided here:

Exemptions, Reconsiderations and Objections

Each policy outlines the exemptions, objections and reconsiderations process relevant to assessments undertaken under each policy.