Development contributions and financial contributions
Guide to residential building and small scale subdivision
Part I: Definitions and general information
The following information is a guide for small scale subdivision and standard residential building. It does not cover activities such as cross-leases, boundary adjustments, multiple units, commercial or industrial activities.
Definition of contributions
Development, financial, or reserve contributions are charges imposed on development (subdivision and/or building) to cover costs associated with that development.
These charges help pay for roads, solid waste, sewerage, water supply, stormwater (infrastructure), and reserves/community services (reserves).
The purpose of these contributions is to ensure that the cost of the new services arising out of new development is borne by those who create the need for, and benefit from, the additional new services. The contributions are charged on a city-wide basis, and the costs are equally shared by all new developments.
How the contributions differ
Development contributions and financial contributions essentially pay for the same costs associated with new development, but are separate policies that apply to subdivisions/lots and their respective dates of consent application.
Financial contributions did not cover the
full cost of network infrastructure required as a result of growth. The new development contributions policy enables Council to provide sufficient funding to meet the costs of new growth without having to increase general rates.
The development contributions policy was enacted as part of the Long term Council Community Plan in 2006 under s.102(4)(d) of the Local Government Act 2002.
Development contributions apply where the subdivision application to create the lot is received and formally accepted by Council after 31 December 2006.
Financial contributions apply where the section/lot already existed before 31 December 2006, or where the subdivision application to create the lot was received and formally accepted by Council on or before 31 December 2006.
Reserve contributions apply at both subdivision and building stage, no matter what date the subdivision occured.
Why are there different systems/policies?
The Local Government Act 2002 gave Councils the authority to use development contributions as a means to fund the costs of development. Nelson City Council adopted the Development Contributions Policy with the aim of providing sufficient funding to meet the costs of new growth without having to increase general rates to do so.
Council's authority to levy these charges
The Resource Management Act 1991(S.108(10)) enables the Council to impose financial contributions as set out in Chapter 6 of the Nelson Resource Management Plan (NRMP).
Do I have a right of objection?
Financial contributions can be objected to as a condition of consent, but development contributions cannot be objected to. There are no remissions available.
Who to talk to
Working out which contributions may need to be paid is not always straightforward. Before you lodge your application, check with our staff first so we can assess your specific situation or seek advice from a lawyer, planning consultant, or surveyor. The Building Consents department can be reached on +64 3 546 0200
To find out what contributions your activity may be liable for, visit part 2 of our guide, Contribution costs. |
