Draft Development Contributions Policy

Hastings District Council 2013 / 14 Draft Development Contributions Policy

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Summary: In June 2007, the council adopted a Development Contributions Policy for its infrastructural networks of Transport, Water Supply, Wastewater, and Stormwater and for its Reserves and Community Facilities. The policy seeks to establish a transparent, consistent and equitable basis for requiring contributions in order that those undertaking developments pay a fair share of the community’s capital expenditure for provision of reserves, community infrastructure and network infrastructure.

Changes to the 2013/14 Development Contributions Policy The Development Contributions Policy is reviewed at least every three years and was last changed in June 2012 as part of the Long Term Plan 2012-2022 (LTP). Council has reviewed its policy this year and is proposing the following changes to its Development Contributions Policy.

Irongate Industrial Area The Hastings District Council has instigated the process to design the road and service corridors associated with the Stage 1 Irongate Industrial Development Area. This work has involved visual assessments, measurement and/or surveying work in relation to the positioning of service and road corridors. In addition, at the request of land owners, Hastings District Council has also investigated the positioning of the stormwater corridor in account of land uses and property boundaries, while at the same time reducing overall capital costs. The Council has now developed two refined design solutions, both of which are anticipated to result in lower overall capital investment requirements resulting in a lower contribution rate per HUE. Council will continue to consult with Stage 1 Landowners regarding these refined services design plans, and endeavour to confirm the services plan between now and June 2013, including amendments to capital budgets and any changes to the schedule of charges.

Omahu Industrial Area Following the plan change hearing and council decision, council will continue to consult directly with land owners regarding the land within the zoning, potential servicing options and infrastructure costs. These may lead to future revisions of Schedule of Charges once more information becomes available.

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Community Outcomes In accordance with Section 101 (3) which requires council to demonstrate how each activity meets the community outcomes outlined in council’s Annual Plan 2013/14, Section 1.3.1 and Appendix J has been amended to reflect a change to council’s community outcomes. This has no financial impact on the Schedule of Charges and is solely to comply with legislative requirements.

Minor Changes The following minor changes have also been made to the policy for clarification and to assist understanding. Sections 4.4 / 4.5 / 4.6; For clarity, Council has added in the case of non-residential subdivision, vacant is taken as any site not containing commercial or industrial buildings. This follows the council assessment of credits that non-residential buildings such as Sheds and Farm Buildings will have no development contribution credits for any existing impact on council services and infrastructure.

Your Feedback: The above summarises the changes council proposes to make to its Development Contributions Policy. Council welcomes submissions to the proposed amendments as part of its annual plan process. Submissions close on 13 May 2013 with council hearings to consider the submissions commencing on 06 June 2013. A copy of the draft Development Contributions Policy is available from: Hastings District Council Service Centre, Lyndon Road East or your local library. You can also phone 8715044 and we’ll post you a copy. Alternatively, you can download or view the policy on our consultation website www.myvoicemychoice.co.nz. Submission forms are available at the same locations.

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1.0 Background 1.1

Introduction

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1.2

Enabling Legislation and Supporting Policy Framework

6

1.3

Purpose

6

1.4

Financial Contributions

8

1.5

Works or Services

8

2.0 Policy

3.2 Areas of Demand

14

3.3 Level of Service (LOS)

14

3.4 Growth Model and Household Unit Equivalents

14

3.5 Cost Allocation Methodology

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3.6 Funding Model

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4.0 Assessment of Development Contributions 4.1 Defining a Development

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2.1

Adoption, Implementation and Review

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4.2 Residential/Rural Subdivision and Residential Applications

2.2

Timing and Payment of Assessments

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4.3 Subsidiary or Secondary Residential Dwellings

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2.3

Credits

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4.4 Non-Residential Applications

17

2.4

Definition of Growth

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4.5 Development within the Irongate Industrial Catchment Area

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2.5

Works within a Development Site

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2.6

Development Contributions

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4.6 Development within the Omahu Industrial Catchment Area

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2.7

Limitations to the application of Development Contributions

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4.7 Rural Land Uses

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4.8 Extraordinary Circumstances

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4.9 Summary

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3.0 Determination of Development Contribution Charges 3.1 Activities

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5.0 Calculation of Development Contributions 5.1 Residential Development

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5.2 Non Residential Development

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6.0 Timing and Collection of the Development Contribution 6.1 Timing of Development Contributions

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6.2 Assessment and Payment of Development Contributions

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6.3 Enforcement Powers

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6.4 Postponement, Review, Remission, Reduction, and Refund

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7.10 Exemption – Boundary Adjustments

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7.11 Applications to Vary Consents or the Conditions of a Consent

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7.12 Certificate of Acceptance Applications

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7.13 Service Connections

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8.0 Significant Assumptions

7.0 Other Matters

8.1 Assumptions Used

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Appendix A – Development Contributions Schedule of Fees and Charges

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Appendix B – Development Contributions Calculation – Examples

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7.1 Capital Contributions; Scheme Extensions

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Appendix C – Areas of Demand

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7.2 Development Contribution – Money or land

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Appendix D – Hastings District Plan Existing Financial Contributions

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7.3 Esplanade Reserves

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Appendix E – Schedule of Past Projects with Residual Capacity

86

7.4 Basis of Land Valuation

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Appendix F – Capital Expenditure Related to Growth

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Appendix G – Summary of Estimated Capital Expenditure 7.5 Revision of Schedule of Contributions

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96

Appendix H – Glossary of Terms

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Appendix I – Non-Residential HUE Conversions

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Appendix J – Funding Sources for the Cost of Growth

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7.6 Private Development Agreements

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7.7 Council Developments and Development Contributions

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7.8 The Crown and Development Contributions

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7.9 Goods and Services Tax

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1.0 1.1

Background

The requirements of section 106 have been specifically considered in formulating this policy. Specifically the following points should be noted:

Introduction

Despite recent global, national and local economic conditions, Hastings District Council is no different to other councils around New Zealand in experiencing growth pressures, particularly in the urban and coastal communities. This growth is placing a significant strain on network and community infrastructure. Over the next ten years: 

Hastings District is expected to grow by 2,059 Households



Hastings District is expected to require an additional 74,664m2 of Industrial related floor space



Hastings District is expected to require an additional 55,981m2 of Commercial and Service related floor space

The Local Government Act 2002 allows councils to require development contributions from developers if the effect of their developments is to require new or additional network or community infrastructure. The policy seeks to establish a transparent, consistent and equitable basis for requiring contributions in order that those undertaking developments pay a fair share of the community’s capital expenditure for provision of reserves, community infrastructure and network infrastructure.

1.2

1.3



Appendix G summarises and explains the capital expenditure identified in the Long Term Plan that the Council expects to incur to meet the increased demand resulting from growth. The total amount of funding to be sought by development contributions for each activity has also been identified.



Appendices E & F identify the proportion of expenditure for each project which is attributable to growth and therefore included in the development contribution calculation methodology.



In relation to each activity to be funded, Appendix J identifies the most appropriate funding mechanism and the community outcomes to which the activity primarily contributes.

Purpose

Development Contributions are a funding tool for funding community facilities and infrastructure needed as a result of district wide growth. The key purpose of the Development Contributions Policy is to ensure that reserves and infrastructure capital expenditure is funded by those parts of the community who benefit from that expenditure. Those responsible for creating growth within our district, whether through subdivision, building, new service connections or a change in land use, are being asked to pay a fair share of the resulting additional infrastructure cost incurred by council.

Enabling Legislation and Supporting Policy Framework

This Policy on development contributions has been prepared in accordance with Sections 102(4)(d) and 106 of the Local Government Act 2002 (LGA 2002). The Policy contributes to community outcomes in the LTCCP by ensuring the provision of appropriate infrastructure to meet the needs of growth and where appropriate levels of service are maintained.

Under Section 101(3) (a)(i) of the LGA Act 2002, the following table summarises how Development Contributions contribute towards the achievement of community outcomes as defined in councils LTP. More detailed analysis can be found in Appendix J.

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1.3.1 Long Term Plan Community Outcomes Group of Activities

Community Outcomes

Water and Roads

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

-

Group of Activity Objectives Maintain and enhance public health and safety Move people and goods around safely and efficiently

Level of Service Expected

-

Safe, Healthy and Liveable Communities

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

-

Local public services which help meet the needs of young and old, people in need, visitors and locals, businesses and households.

-

Parks; Reserves Land

Network Infrastructure

Community Infrastructure

Water Supply 100% compliance with NZ drinking water bacteria standards 100% compliance with resource consent conditions (no abatement notices) Urban Stormwater Drainage 100% compliance with resource consent conditions (no abatement notices) No flooding of inhabitable dwellings in an up to 1 in 50 year event Sewage Collection, Treatment and Disposal 100% compliance with resource consent conditions (no abatement notices) No wastewater overflow events from routine operation (other than exceptional circumstances) Roading and Footpaths Less than 5% of roads exceed national rough ride limits Less than 3% of roads with condition classified poor or worse Less than 1km o footpaths classified poor or worse All property will be accessible by vehicles meeting maximum as of right mass and dimensions, except by special agreement. 3 public libraries (6 day service Flaxmere / Havelock North, 7 days Hastings) 94% of urban properties within 500m radius (walking distance) of a park 56% of urban properties within 500m radius (walking distance) of a playground

Group of Activity Objectives Provide a range of accessible, social, cultural and recreational activity

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1.4

Financial Contributions

Prior to the implementation of the Development Contributions Policy, Financial Contributions (in the form of cash, land, works, services, or a combination of these), were charged under Chapters 15.2, 15.3 and 15.4 of the Operative Hastings District Plan which can be found under Appendix B. Financial contributions were provided for under the Resource Management Act 1991 (RMA), and were used to offset or mitigate any adverse impacts on the natural and physical environment including utility services, of a new development. Those chapters will still apply to applications received prior to 01 July 2007. Thereafter any application received will be subject to assessment under the Development Contributions Policy. Council will not require a Development Contribution for any individual activity to the extent that a Financial Contribution has already been imposed as a condition on a resource consent, or charged as part of a building consent, in relation to the same development for the same purpose. The capital expenditure in Appendix E and F does not include any components of past projects already funded by financial contributions.

1.5

Works or Service

Nothing in this policy will prevent the Hastings District Council from requiring as a condition of consent the provision of works or services to directly support the immediate development. These works or services may include frontage works, service connections, private vehicle crossings, service extensions and the like. (Please refer to section 15.1.9 General Site Performance Standards of the Hastings District Plan). This will only be the case where the works have not been included in a Development Contribution required under this policy. Further, nothing in this policy will prevent the Hastings District Council from entering into agreements pursuant to sections 12(2) and 200(2) of the Local Government Act 2002.

2.0 2.1

Policy Adoption, Implementation and Review

The Council originally adopted a Development Contributions Policy in 2007 as an amendment to its 2006-2016 Long Term Council Community Plan. The policy came into force for any application received after 2 June 2007 and granted from 1 July 2007. Subsequent revisions have taken place in 2009, 2010 and 2012. Applications will always be initially be assessed against the Development Contributions Policy or Financial Contributions Policy at the time of the application being received. However, where a assessment has expired, any re-assessment will be completed against the Schedule of Charges at the time of payment in accordance with section 2.2 of this policy. It is intended that the Development Contributions Policy will be reviewed at least every three years in parallel with the LTP cycle, or at shorter intervals if Council deems necessary, to take account of: 

Any changes to the significant assumptions to the Development Contributions Policy



Any change in policy as Council continues to develop and implement structure plans for the District.



Any changes to the Hastings District Plan



Any changes in the capital works programme for growth



Any changes in the pattern and distribution of development in the District



The regular reviews of the LTP



Any significant changes in cost indices



Any other matters Council considers relevant. 8

It is intended that the Development Contributions Schedule may be updated regularly to ensure charges are in line with the level of growth costs the council faces. This will also enable council to factor in inflationary adjustments, improved project information and actual and budgeted project costs.

2.2

Timing and Payment of Assessments

Under this policy, Development Contributions charges will be based on the Development Contributions Schedule (Appendix A). An assessment will be issued upon:

Credits towards the assessment of development contributions for a consent application include both “Historic Credits” and “Actual Credits”. Information on Historic and Actual Credits will be provided upon application (where necessary the applicant may be required to provide written information about the existing use of the site to enable this assessment). The management and recording of Historic and Actual Credits against each title is to ensure the Council does not collect contributions twice for the same purpose.



a resource or land use consent being granted,

2.3.1



a building consent being granted



the date when the service connection is approved.

Credit will be given for the pre-existing status of properties (prior to 19 April 2000) even if no previous financial or development contributions were paid. The date of 19 April 2000 is the date the financial contributions section of the Hastings District Plan became operative. Credits will be associated with the existing title and calculated and assigned on a per activity basis.

Payment of the assessed development contribution must be made within three months for the assessed amount to remain applicable. Payments made after this time and prior to application for the Code of Compliance Certificate, 224(c) or service connection, will be re-assessed and based on the Development Contributions Schedule in force at the date of payment.

Historic Credits

For example: A dwelling built before 19 April 2000 will have one credit towards Community Infrastructure, Parks; Reserves Land, Roading, and service connections where it is already connected to council networks.

Therefore if payment is not made within 3 months, it is possible that the amount of contributions may change depending upon any reviews of the development contributions policy or any update of the Development Contributions Schedule.

However, if the property is not in an area of service, or it is not connected to the service, it is not deemed to have any historic credit for that service.

2.3

2.3.2

Credits

Credits are recognition of previous contributions (Financial or Development Contributions) that have already been assessed, paid or otherwise met. For the purposes of this policy a credit is measured as the number of Units of Demand (Household Unit Equivalents – HUE) for each activity applied in determining the development contribution charge.

Actual Credits

Where development contributions or financial contributions for a particular property have previously been assessed and paid, HUE credits shall be given for that particular activity. For the calculation of actual credits there is no historical time limit and all previous payments shall be taken into account.

Summary Table of Credit Allocations for Residential Development

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Table 2.3.3 Residential Development Type Historic Credits (relates to the preexisting subdivision or development that occurred prior to 19 April 2000)

Actual Credits (relates to any subdivision or development that occurred prior after 20 April 2000)

Activity Community Infrastructure Parks & Reserves

   

Allocation of Credits Per Existing Dwelling No credit allocated if vacant Per Existing Dwelling Or Per title where vacant

Roading

 

Per Existing Dwelling Or Per title where vacant

Stormwater Wastewater Water Community Infrastructure Parks & Reserves Roading Stormwater Wastewater Water



Per existing connection

Type Historic Credits (relates to the preexisting subdivision or development that occurred prior to 19 April 2000)

Where a financial contribution (development Levy or Contribution) has previously been assessed and paid.





Actual Credits 

Activity Roading Stormwater Wastewater Water

(relates to any subdivision or development that occurred prior after 20 April 2000)

Roading Stormwater Wastewater Water





Allocation of Credits Occupied: Where a connection exists, credits will be allocated on a per m2 GFA based on the existing development and activity, and using the current policy equated back to a household unit equivalence (HUE). Vacant: Credits will be allocated per HUE but only where an existing connection exists. Occupied: Where a connection exists, credits will be allocated on a per m2 GFA based on the existing development and activity, and using the current policy equated back to a household unit equivalence (HUE). Vacant: Where a financial contribution (Development Levy or Contribution) has previously been assessed and paid.

Residential development Summary Table of Credit Allocations for Non Residential Development

Table 2.3.4 Non Residential Development



In the case of subdivision, it should be noted that every new residential or rural lot is taken as being intended for one household unit. 10



Contributions will not apply on any subdivision application to unit title two existing properties on a particular site.



For existing residential buildings that are demolished or destroyed by fire or some other cause, no development contributions will be payable provided that the same number of dwelling units are rebuilt. Any additional units will be assessed in terms of this policy.



Any excess historic credits arising from amalgamation shall lapse if not utilised within a period of five years from the date the amalgamation was approved by the Council.



Credit HUEs for all activities must be allocated to the same allotment or allotments.

2.4

In terms of this Policy, growth means the increase in demand for capacity in the community’s network and community infrastructure required to support development within the community. The “community” in this sense is both local and district wide as recognised in section 3.2 where “areas of demand” are described.

2.5







Non-residential developments and subdivisions with existing development will receive HUE credits for each activity connected based on the existing development and activity. These shall be assigned to the allotments where the development lies. For existing non-residential buildings that are extended or demolished and re-built to the same or higher intensity, the assessment will be based only on the additional intensity of development. Where demolition or reduction in intensity precedes development by more than five years the existing use right will be deemed to have lapsed and the assessment will be based on the total new development. Any excess historic credits arising from amalgamation or any other reason shall lapse if not utilised within a period of five years from the date the amalgamation was approved by the Council. Credit HUEs for all activities must be allocated to the same allotment or allotments.

Works within a Development Site

Within the boundaries of the development site, the developer shall provide the following as part of the cost of development as a condition of the consent under the Hastings District Plan:

Non-residential development 

Definition of Growth



Road, transportation and car parking infrastructure



Water supply network



Wastewater network



Stormwater collection and disposal infrastructure.

Note: A reduction in development contributions can be applied for should any internal work include a proportion of “up-sizing” required by the Council beyond that required to service the subject development.

2.6

Development Contributions

2.6.1 Requirement For and Use of Development Contributions Section 197 of the Local Government Act 2002 defines development in accordance with the definition in Appendix H of this policy. In accordance with section 199 of the Act, the Council will only require development contributions for developments that have the affect either by itself or in conjunction with other developments, of requiring new or additional assets or 11

assets of increased capacity and as a consequence, the Council incurs capital expenditure to provide appropriately for infrastructure activities.

Wastewater

Both the underlying methodology of this policy and its implementation will ensure that each potential development will be assessed to decide whether it constitutes a development in accordance with the Act. For example section 4 of this policy helps in determining whether a development generates a demand. Council may require a development contribution from any development for the following: 

Capital expenditure incurred as a result of growth capital expenditure already incurred in anticipation of development.



Development Contributions will be required to meet the growth component of the future capital expenditure budgets.

Development contributions will be collected to support the following activities:

Classification Activity

Description

Community Infrastructure

Providing social and recreational infrastructure such as:  a wide range of library resources  a provision of well located and community facilities and playgrounds

Parks: Reserves

Network Infrastructure

Community Infrastructure

Parks; Reserves

Providing social and recreational infrastructure through the provision of safe and well located parks, sports grounds and reserves.

Roading

Ensuring a safe and efficient transport network. (Road, pathways and cycle ways)

Water

Ensuring supply of healthy drinking water through the provision of effective management services.

Stormwater

2.6.2

Mitigation of adverse environmental impacts through the provision and effective management of wastewater disposal infrastructure. Mitigation of adverse environmental impacts through the supply of reliable stormwater service that minimises flooding and risk to life and property in urban areas.

Future Policy Development

Future versions of this Policy may cover development contributions from the following activities: 

Car parking



Other network infrastructure



Reduced assessments for sustainable developments

2.6.3

Capital Expenditure Council Expects to Incur as a Result of Growth

The total estimated capital expenditure related to Growth the Council expects to incur, to meet increased demand for transportation, water and wastewater, stormwater and parks, over the next 10 years, is summarised in the table in Appendix G. The growth component, net of any funding from other sources or agencies such as New Zealand Transport Agency (NZTA), of the capital expenditure budgets will be funded by development contributions. The calculations and documentation supporting the above capital expenditure are available for examination at the offices of Hastings District Council.

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Note: Backlog and Renewal portions of capital expenditure will be funded from sources other than development contributions.

2.6.4

2.7

Council will not require a development contribution in the following cases:

Capital Expenditure Council has incurred in Anticipation of Development

In the recent past Council has incurred significant expenditure in anticipation of development. Council will recover the growth component of these projects implemented to support the future community (post 1 July 2007). A schedule of these “Past Projects with Residual Capacity” is included in the Appendix E. Please note that the cost of the growth component is determined from actual total cost to implement these projects less any other funding received or expected to be received (including existing financial contributions paid or required under existing conditions of consent).

2.6.5

Limitations to the Application of Development Contributions



Where it has, under Section 108(2)(a) of the Resource Management Act 1991 (RMA), imposed a condition on a resource consent in relation to the same development for the same purpose; or



Where the developer, with the agreement of the Hastings District Council under sections 12(2) and/or 200(2), Local Government Act 2002, will fund or otherwise provide for the same reserve, network infrastructure, or community infrastructure; or



Where the Council has received or will receive funding from a third party for those works.

For the avoidance of doubt, this does not in any way limit Council’s ability to require that Parks: Reserve land contributions are to be paid in the form of a cash contribution.

Council Use of Development Contributions

Council will use development contributions only for the activity for which they are collected. This will be undertaken on an aggregated project basis for each of the activities. Projects within an activity area may change over the 10 year period. However, despite any amendments, this policy assumes that projects cost no less than the estimates set out in this policy including the projected growth components. Therefore, collected development contributions will still be used for the projected new projects within the relevant activity area notwithstanding amendments that may in future be made to them. Where Council anticipates funding from a third party or agency such as New Zealand Transport Agency (NZTA) for any part of the growth component of the capital expenditure budget, then this proportion is excluded from the total estimated growth component to be funded by development contributions under this Policy.

3.0 3.1

Determination of Development Contribution Charges Activities

As per section 2.6.1, six activities have been defined for which development contributions have been calculated. The activities are: Community infrastructure 

Community facilities (I.e. Libraries, Playgrounds & Public Toilets) 13

Parks: Reserve land (Acquisition and Development of Land)

3.3

Network Infrastructure

Council activity management plans for each activity define the relevant LOS for that activity.

3.2



Roading



Water Supply



Wastewater



Stormwater

Areas of Demand

For each activity a number of Areas of Demand (known as ‘catchments’) have been determined based on their key characteristics. These characteristics include geography, service delivery, available growth information and the nature and complexity of solutions. The Areas of Demand are either local or district wide. Individual capital works projects are allocated to either local or District wide Areas of Demand depending on the nature of the project and the community it is required to serve. The use of ‘catchment areas’ is the fairest means for council to apportion those growth costs to those who benefit from that expenditure. Developments lying within an Area of Demand will assessed against the development contributions for that area. If for any reason a development falls outside the Area of Demand, and is still served by the infrastructure associated with one of the activities for this Area of Demand, then the schedule of contributions for that Area of Demand shall still apply. The areas of demand are defined in Appendix C.

Level of Service (LOS)

From these LOS statements a capital project list to meet projected growth has been identified and priced, based on sustaining or achieving these levels of service. In general the development contributions will be calculated based on the existing levels of service across the District. Any requirement to increase the LOS for existing users will not be funded by development contributions.

3.4

Growth Model and Household Unit Equivalents

The District’s growth model has been developed in order to predict growth throughout the District in ‘Household Unit Equivalents’ (HUE) and this growth information is presented per activity and planning unit (locality). A number of planning units make up each Area of Demand. A HUE is used to refer to residential, non-residential and rural development as explained in Sections 4.1, 4.2 and 4.3. Growth expectations will inevitably change over time. As a consequence the Hastings District Council will continually monitor growth and improve its growth model forecasting techniques. In the growth model, a HUE is defined as being equivalent to one ‘average’ household unit of demand. It is recognised that household units vary throughout the District and that the demands they generate also cover a broad range. Furthermore, the level of demand generated by any household unit at any one time will vary according to the number of occupants and the nature and extent of allowed activities undertaken on each property.

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However, given the relatively large size of the development contribution Areas of Demand and the implied averaging, the approach is considered appropriate as well as being consistent with the level of detail recognised by the growth model itself.



A share for Renewal is deducted taking into account the scope of assets being renewed and their remaining life at the time of renewal.



Capacity and Demand information based on current levels of service is used to allocate shares to Backlog and Growth.

3.5



Any remaining share is defined as Unallocated.



Capacity and Useful Life information is gathered to help determine the period over which contributions should be collected.

Cost Allocation Methodology

The Cost Allocation Methodology used in this Policy is referred to as “Modified Shared Drivers”. This methodology is applied to the 10 years of capital works projects in the Long-Term Council Community Plan. In the preparation of this Development Contributions Schedule, priority has been given to high value projects and those with a high growth component. The Modified Shared Drivers approach takes the planned costs of a proposed project and assigns them to various drivers. The categories of drivers within the methodology are: 

Renewal



Backlog



Growth



Unallocated

By analysing each project against these drivers, the distribution of the benefits of the works can be better identified. The benefits to the community as a whole can be identified (generally renewal, backlog and unallocated), while conversely the benefits to the growth community can also be identified (generally growth).

The full and detailed methodology and cost allocation analysis are available for inspection upon request.

3.6

Funding Model

The purpose of the funding model is to ensure an equitable assessment of the funding requirements in compliance with the Local Government Act 2002 to support the Development Contributions regime. The primary output of the funding model is an assessment of the required development contributions charges. These charges are listed in Appendix A. The model takes account of: 

The funding requirements to support the cost of growth infrastructure.



Equitable application of those funding requirements to the incoming growth community.



Recognition that the backlog components of the growth infrastructure are funded by the existing community. The rating charges applied to the existing community will also be applied to the incoming community as there is no differential rating process to exclude the incoming community from those rates charges. Future rating revenue from the increasing community has been estimated and incorporated into the calculation of the contributions in the Funding Model.



Interest on funds raised to implement growth infrastructure.

A summary of the Cost Allocation Methodology is as follows: 

The scope and Gross Cost of the project are reviewed. Any non-capital (operations and maintenance costs, feasibility costs) are deducted.



Third party funding is identified and deducted.



Area of demand is established.

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

4.0

4.1

Interest on contributions received in advance of provision of growth infrastructure.

Assessment of Development Contributions

Defining a Development

Before deciding on whether a development contribution is payable, in accordance with Section 199 of the LGA Act 2002, the Council must assess whether the development either by itself or in conjunction with other development, generates a demand for reserves, network infrastructure. New buildings, a change in land use or subdivision of land to create additional lots, usually results in the potential for additional household units and therefore additional HUEs, which form the base unit for the calculation and charging of development contributions. In the case of the Roading, Parks; Reserve Land and Community Infrastructure any additional HUE being created has access to these activities, therefore a demand is created. If connection is made to Water Supply, Wastewater or Stormwater Network, a demand is created. Where no ability to connect to Water Supply, Wastewater or Stormwater Network Infrastructure exists, no demand is created. If however the relevant network services are provided in the future, and a connection occurs, a demand is created and a contribution would be applicable at the time of connection. Where credits are provided for in accordance with section 2.3 of this policy, it is accepted that no additional demand is created to the value of these credits.

4.2

Residential or Rural Subdivision and General Residential Applications

In most instances the only information that is required to calculate the number of HUE’s, and hence the development contribution chargeable, is the additional number of residential allotments or buildings created by the proposal. In the case of residential buildings, generally, every residential building equals one household unit which equals one unit of demand. The exception to this will be if the residential building qualifies for a reduction under 4.3 of the Development Contributions Policy In the case of subdivision, it should be noted that every new residential or rural lot is taken as being intended for one household unit so a contribution is applied. It should be noted that in some instances a development contribution may still be payable even where there is no overall increase in the number of titles or allotments created by the subdivision. For example: A subdivision of two vacant existing titles into two new titles with the purpose of creating one lifestyle lot and one balance lot, may still attract development contributions. In this instance, the intention may be to build a dwelling on the new lifestyle lot which creates a demand for Community Infrastructure, Roading and Parks: Reserves. However, contributions would only apply where a contribution has not previously been paid or assessed or credits are provided for under 2.3 of this policy. Where the property created through subdivision or an additional residential building is not planned to be connected to the Water Supply, Wastewater or Stormwater Network Infrastructure no charge will be made for that activity. However, if at a future time the property is to be connected, it will attract a development contribution at building consent or at service connection.

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4.3

2

Subsidiary or Secondary Residential Buildings

The only exception to every residential building being treated as one household unit is the application of a reduced rate to any subsidiary or secondary residential 2 dwelling with a gross floor area under 80m . A reduction will be applied on a ‘sliding scale’ as per Table 4.3.1 based on the size of the building. The maximum reduction that will be applied is 0.5 of a HUE.

Table 4.3.1 Reductions for Subsidiary or Secondary Residential Buildings Size of Subsidiary or Secondary Residential Building 2 80m or over

HUE Reduction applied per activity

HUE Charged per activity

Nil

1

70m

2

0.125

0.875

60m

2

0.25

0.75

50m

2

0.375

0.625

0.5

0.5

2

40m or under

Irrespective of size, the primary or first dwelling on any site will always attract a one household unit equivalent (HUE) charge. The reduction will only apply to subsidiary 2 or secondary residential buildings under 80m as this is a reflection of the fact these residential buildings are often for the care of extended family and are likely to have less impact on council infrastructure. No reduction shall apply to any non residential buildings as these are assessed on a 2 per m basis. It should be noted that where the application no longer complies with the definition of a subsidiary or secondary residential building I.e it either becomes a primary main residence as a result of a subdivision, or a building consent is submitted to

increase the gross floor area of the building in excess of 80m , council will at the time of the resource or building consent application, charge one HUE less any credit for a proportional HUE already paid under this section. If a secondary or subsidiary dwelling that received a reduction increases its gross 2 2 floor area (I.e from 50m to 70m ), a contribution based on the additional 20m2 will apply at the building consent stage using the development contributions policy in force at the time.

4.4

Non-Residential Applications

Activities The following activities will be assessed to determine the HUE’s associated with the planned development. Contributions for Parks; Reserves Land and Community Infrastructure are not collected on non residential applications. Network Infrastructure 

Roading



Water Supply



Wastewater



Stormwater

Non-residential subdivision To reduce the interest cost incurred by council, an assessment will be carried out at the time of subdivision for all commercial and industrial subdivision. An assessment will only apply to any vacant land created through the subdivision. The assessment will be based on an assumed 25% development of any vacant area created. Vacant is taken as any site not containing commercial or industrial buildings. 2

For example using a 5000m site being subdivided into two lots (A & B): 17

Subdivided Site 

Site A (3000m )Vacant



Site B (2000m )Vacant

Assessment 2

2

Site A) 3000m x 25% = 750m2

2

Site B) 2000m2 x 25% = 500m2. Assessments using the equivalence table under 4.4.1 will apply. The activity will be determined by the zoning of the subdivided land. Credits will be allocated on a pro-rata basis to each title.



Site A (3000m ) Existing Building



Site B (2000m ) Vacant

2

Site A) Nil

2

Site B) 2000m x 25% = 500m2.

An assessment will also be completed at the time of building consent being submitted when the demand and type of activity is known on the site net of any credits from the subdivision. If the impact of the development assessed at Building Consent is: 

Greater than those credits (expressed in HUE’s) previously assessed, a further assessment (using Table 4.4.1) will be completed for that additional impact.



Less than those credits (expressed in HUE’s) previously assessed, those credits will sit on the title of the land and can be used against any future development on site.

All non residential development will be assessed in accordance with the definitions of the District Plan and contributions will only apply where there is a service available to connect to. 2

Non-residential development An assessment using the equivalence table under 4.4.1 will apply. The activity will be determined by the zoning of the subdivided land. Credits will be allocated to Site B against any future development.

Development Contributions will also apply where an existing building extends its Gross Floor Area (GFA) to cover the additional impact upon council infrastructure. An assessment using Table 4.4.1 will only apply to the additional Gross Floor Area unless new services are connected.

2

Site A) Nil

For non-residential consent applications HUE’s may be calculated for each activity as follows:

2

Site B) Nil

Table 4.4.1 GFA Conversions for Non-Residential Development (excluding development within the Irongate & Omahu Industrial Catchments- see Table 4.5.2 & 4.6.2)



Site A (3000m )Existing Building



Site B (2000m ) Existing Building

No assessments required on either site as no vacant sites created.

Stormwater * See Note 1 below. Land Use/Activity

Water

Wastewater

Roading

2

HUES per 100m of Gross Floor Area (GFA) 18

Commercial (Unspecified)

0.33

0.30

0.37

0.41

Offices

0.33

0.30

0.37

0.41

Retail Shops See Note 1

0.33

0.34

0.42

* See Note 2 below.

2

a 0m premises with the charge then ramping down (linearly) to a 2 minimum equivalence for >10,000m (1.46 HUE/100m2 above) at 2 10,000m . Thus a 3000m2 planned retail shop would have an equivalence of: = 2.68 – (3,000 / 10,000 ) x (2.68 – 1.46)

Max 2 HUE/100m = 2.68

= 2.31 HUE/100m

Min 2 HUE/100m = 1.46

Transport Retail HUEs / 100m2 GFA

HUEs / 100m2 GFA

3.0

(at 2 10,000m ) – linear in between Industrial (Unspecified)

0.29

0.48

0.60

0.42

Warehouse/Storage

0.29

0.30

0.37

0.13

Education

0.33

0.30

0.37

0.41

Visitor Accommodation

0.33

0.74

0.93

0.29

Entertainment facilities including serving food and beverages

0.33

0.47

0.59

1.49





Note 1: The buildings ‘footprint’ rather than Gross Floor Area is used for the purpose of calculating the Stormwater Contribution. All other activities are determined by the Gross Floor Area of the Buildings. Note 2: The transport equivalences for retail shops are a function of the size of the proposed buildings. The equivalence for <10,000 m2 (2.68 HUE/100m2 above) is adopted as the charge for

2

2.5 2.0 1.5 1.0 0.5 0.0 0

5,000

10,000 GFA m2

15,000

20,000

Development Contributions can also be applied on change of use application where the buildings use is likely to lead to an additional impact as assessed under the table 4.4.1. An assessment based on the buildings Gross Floor Area (GFA) net of any credits relating to the existing use, will apply.

4.5

Development within the Irongate Industrial Catchment

The proposed industrial development in Irongate has a significant capital expenditure requirement. There are inherent risks involved in attempting to collect contributions for small catchment areas:

19



In accordance with Appendix J, Council explored different funding solutions before deciding on the following as being the most appropriate. A specific catchment for Irongate has been created with the intention of passing the cost of the infrastructure needed to service this area to those properties benefiting from the new industrial zone and infrastructure within it.

4.5.1

buildings being built Irongate Catchment

Table 4.5.2 Non-Residential Development within the Irongate Catchment (Stage 1) Stormwater *

Water

Wastewater

Roading

0.39

0.49

0.42

To ensure those developing in Year 1 are not disadvantaged by paying the same rate as those in Year 10, council has determined a base cost for Year 5 and will adjust the development contribution required from the developer as per Table 4.5.3 below. For Example: Those developing in Year 4 will pay -2.5% less than the base rate, whilst those in developing in Year 6 will pay +2.5% more than the base rate.

Table 4.5.3:

Assessment within Irongate Industrial Catchment Stage 1

To reduce the interest cost incurred by council, an assessment will be carried out at the time of subdivision. The assessment will be based on 25% of any vacant land being developed and will give the applicant ‘credits’ (expressed in HUE’s) which can be used against any future development. Vacant is taken as any site not containing commercial or industrial buildings. Contributions will only apply where services has been made available to connect to and can be summarised in Table 4.5.2 below.

0.29

Irongate Industrial Development 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% -2.5% -5.0% -7.5% -10.0% -12.5% -15.0%

Year 1 2 3 4 5 6 7 8 9 10



Greater unpredictability and uncertainty about funding A degree of inflexibility to infrastructure investment decisions and budgeting relating to the district as a whole An increase the time spent implementing, managing and administrating the policy An imbalance in charges per HUE between individual areas which could potentially lead to stifling development in those areas.

Contribution Rate per Hectare

 

An assessment will also be completed at the time of building consent being submitted when the demand and type of activity is known on the site. If the impact of the development assessed at Building Consent is:

2

HUES per 100m of either: subdividable area charged as per above or 20





4.6

Greater than those credits (expressed in HUE’s) previously assessed, a further assessment (using Table 4.4.1) will be completed for that additional impact. Less than those credits (expressed in HUE’s) previously assessed, those credits will sit on the title of the land and can be used against any future development on site.

Development within the Omahu Industrial Catchment

A specific catchment has also been created for Omahu Industrial catchment for reasons 4.5 above. The intention is to pass the cost of the infrastructure needed to service this area to those properties benefiting from the new industrial zone and infrastructure within it. As with Irongate Industrial Catchment, Council explored different funding solutions before deciding on a separate catchment as being the most appropriate.

buildings being built Omahu Industrial Catchment

0.29

0.39

0.49

0.42

An assessment will also be completed at the time of building consent being submitted when the demand and type of activity is known on the site. If the impact of the development assessed at Building Consent is: 

Greater than those credits (expressed in HUE’s) previously assessed, a further assessment (using Table 4.4.1) will be completed for that additional impact.



Less than those credits (expressed in HUE’s) previously assessed, those credits will sit on the title of the land and can be used against any future development on site.

4.6.1 Assessment within Omahu Industrial Catchment To reduce the interest cost incurred by council, an assessment will be carried out at the time of subdivision. The assessment will be based on 25% of the land area being developed and will give the applicant ‘credits’ (expressed in HUE’s) which can be used against any future development. Vacant is taken as any site not containing commercial or industrial buildings. Contributions will only apply where services has been made available to connect to and can be summarised in Table 4.6.2 below.

Table 4.6.2 Non-Residential Development within the Omahu Industrial Catchment Stormwater 2

Water

Wastewater

Transport

HUES per 100m of either: subdividable area charged as per above or

4.7

Rural Land Uses

Residential developments in the rural area are treated the same as in the urban environment as any subdivision will give rise to additional entitlements to construct a dwelling. Each existing rural allotment will be assessed as having 1 HUE per activity connected per residential building on the property (Each additional residential building on a rural allotment will be assessed as an additional HUE per activity connected). The following activities will generally be assessed as 1 HUE per additional allotment: Community Infrastructure 

Community facilities (I.e Libraries, Playgrounds and Public Toilets)

Parks: Reserves Land (Acquisition and development of the land) 21

Network Infrastructure 

Transport



Water Supply (only if serviced)



Wastewater (only if serviced)



Stormwater (only if the development lies within a stormwater area of demand)

Non residential sheds and farm buildings ancillary to land based primary production occurring on the subject site, and which do not place additional demand on infrastructural services, will not incur a development contribution. Industrial or commercial activities established in the rural area will be assessed for a contribution in accordance with Section 4.4. Where the property is not planned to be connected to the water supply, wastewater or stormwater network infrastructure no charge will be made for that activity. However if at a future time the property is to be connected it will attract a development contribution at building consent or at service connection.

4.8

Extraordinary Circumstances

Council reserves the discretion to enter into specific arrangements pursuant to sections 12(2) and/or 200(2), Local Government Act 2002 with a developer for the provision of particular infrastructure to meet the special needs of a development, for example where a development requires a special level of service or is of a type or scale which is not readily assessed in terms of HUE’s or Table 4.4.1.

If, at development stage, an application clearly has a significantly greater impact than that envisaged in the averaging implicit in the above methodology, a ‘special assessment’ may be called for at the Council’s discretion. The applicant will be expected to provide supporting information and detailed calculations of their development’s transport, water supply and wastewater demands in base units. Using the standard base unit/HUE conversions (Table G-2 of Appendix G) these estimates may then be converted to HUE’s and charged accordingly. This additional information could be made part of a Section 92 (RMA 1991) request or at requested pre-application stage. For example, a ‘traffic impact assessment’ is a requirement for most non-residential and larger residential developments. It will usually be possible to compare the vehicle trips per day reported from this source with Table G-2 of Appendix G. In any case, any particularly traffic intensive land use such as, but not limited to the following will be deemed to fall into the special assessment category and the HUE’s based on the impact assessment: 

Service stations with or without retail facilities



Drive through fast food restaurants



Bulk Floor Retail, Large Format Retail (or ‘big box’) developments



Hotels and Motels



Backpackers or Seasonal Workers Accommodation



Food processing Industrial Activities



Churches

22

4.9

Summary:

Table 4.9

Residential

Summary of HUE Assessments Subdivision

Development

Service Connection

Per additional title:

Per additional title or household unit incl. strata title type developments:

Per Additional Connection:

1 HUE per activity

1 HUE per activity

1 HUE per activity Parks: Reserve land, to be assessed as a 2 maximum of 7.5% of land value or 20m of reserve land per HUE, both to a maximum of $3,641.00 (plus GST) per HUE in the Urban Contributing Area catchment or $2,231.00 (plus GST) per HUE in the Rural Area catchment.

Parks: Reserve land, to be assessed as a 2 maximum of 7.5% of land value or 20m of reserve land per HUE, both to a maximum of $3,641.00 (plus GST) per HUE in the Urban Contributing Area catchment or $2,231.00 (plus GST) per HUE in the Rural Area catchment.

Non-Residential

Based on 25% of vacant area using the Standard table (Table 4.4.1) or (Table 4.5.2 for Irongate) or (Table 4.6.2 for Omahu) of HUE’s per activity in units of 2 100m

Standard table (Table 4.4.1) or (Table 4.5.2 for Irongate) or (Table 4.6.2 for Omahu) of HUE’s 2 per activity in units of 100m

Mixed Uses

To be assessed as above for the particular land use applied for.

Special Category

On request by Council. Applicant to provide detailed assessments of their development’s transport, water supply or wastewater demands in ‘base units’ - using the standard base unit / HUE conversions these estimates may be converted into HUE’s and charged accordingly. This additional information could be made part of a Section 92 (RMA) request.

Standard table (Table 4.4.1) or (Table 4.5.2 for Irongate) or (Table 4.6.2 for Omahu) of 2 HUE’s per activity in units of 100m

23

5.0

Calculation of Development Contributions

Where development contributions are required, the amount payable will be calculated by multiplying the development contributions per HUE by the number of HUE’s. Credits (historic and actual as per section 2.3) may reduce any assessment.

5.2

Non-Residential Development

How to calculate your non residential development contribution:

Process for calculating development contributions payable Sections 5.1 and 5.2 describe the steps required to undertake the assessment or calculation of development contributions (but the descriptions of those steps are illustrative and the more specific provisions contained elsewhere in this Policy shall take precedence).

Step 1

Catchment Area

Establish what catchment area the ‘development’ lies within as per Appendix C

Step 2

Number of HUE’s

Establish the ‘demand created’ created by the ‘development’ as per section 3.2.

How to calculate your residential development contribution:

Step 3

Number of HUE’s Credit

Establish per activity the ‘credits’ applicable to the parcel of land

Process for calculating development contributions payable

Step 4

Number of HUE’s payable

Calculate the increase in HUE’s (25% of the subdividable area or building GFA equated back to a household unit equivalent)

Step 5

Charge per HUE

Establish the development contribution per HUE for that particular catchment area as per Schedule of Charges (Appendix A)

Step 6

Amount of DC’s payable

Calculate the development contributions payable

5.1

Residential Development

Step 1

Catchment Area

Establish what catchment area the ‘development’ lies within as per Appendix C.

Step 2

Number of HUE’s

Step 3

Number of HUE’s Credit

Establish per activity the ‘credits’ applicable to the parcel of land

Step 4 Step 5

Number of HUE’s payable Charge per HUE

Calculate the increase in HUE’s

Step 6

Amount of DC’s payable

Calculate the development contributions payable

Establish the ‘demand created’ created by the ‘development’ as per section 3.2.

Establish the development contribution per HUE for that particular catchment area as per Schedule of Charges (Appendix A)

24

6.0 6.1

Timing and Collection of the Development Contribution Timing of Development Contributions

General Under Section 202 of the LGA 2002, Council can apply a development contribution upon the granting of: 

A resource consent (subdivision or land use)



A building consent



An authorisation for a service or infrastructure connection.

The Development Contributions assessment will be based on the Development Contributions Schedule (Appendix A) in force at the date the initial assessment is made. Payment of the assessed development contribution is to be made within three months for the assessed amount to remain applicable. Payments made after this time will be re-assessed and based on the Development Contributions Schedule in force at the date of payment. Therefore if payment is not made within 3 months, it is possible that the amount of contributions may change depending upon any reviews of this Policy or any update of the Development Contributions Schedule. In the case of subdivisions, in the majority of applications, contributions will be collected at subdivision consent stage. Council considers that the subdivision consent stage is generally the most appropriate stage to take a development contribution for the following reasons: It is possible that a property may receive two assessemnts for development contribuitons when two applications (Building and Resource Consent) are submitted

simultaneously. An assessment will be issued in repsect of each application. However, should payment of contributions be made on one application, any credit will be taken forward to the other application.

Table 6.1.2

Timing of Development Contributions Milestones – Residential and non-Residential Applications

Action

Timing of Action

Assessment of the Development Contribution

Upon granting: 1.

Subdivision Consent

2.

Land Use Consent

3.

Building Consent

4. Authority to make service or infrastructure connection Payment of the Development Contribution

1.

Before issue of 224 Certificate; or

2.

On issue of Code Certificate Of Compliance; or

3.

On issue of an authority to make service or infrastructure connection.

Staged Subdivisions In the event of a staged subdivision, payment shall be required before issue of 224 Certificate for each stage. If the original assessment has expired, the Schedule of Charges at the time of each ‘stage’ payment will apply.

Determination of Land use When Council takes a development contribution at subdivision consent stage, the expected principle nature of activities authorised by any existing landuse consent for the site and/or, in the underlying Zoning, will determine the type of development contribution payable. 25

Changes in Land use If a subsequent land use consent changes the nature of activities previously envisaged in the original calculation of the development contribution (or previous Financial Contribution under the Resource Management Act 1991), the development contribution will be recalculated and any demand difference will be charged. In some instances where council feels it is appropriate, the development contribution will be calculated and invoiced at the next stage in the consent process (i.e. at the building consent stage, or at the service or infrastructure connection stage).

Note: Further recalculation of the development contribution payable based on current charges may occur if payment is not received within three months of the issuing the assessment.

6.3

If payment of development contribution is not received Council will use the powers outlined in Section 208 LGA 2002. Those provisions state that until a development contribution required in relation to a development has been paid or made under Section 198, a territorial authority may: (a)

6.2

Enforcement Powers

in the case of a development contribution required under Section 198(1)(a),

Assessment and Payment of Development Contributions Withhold a certificate under Section 224(c) of the Resource Management Act 1991.

The assessment of whether a development contribution is required shall occur when granting a consent for: 

Subdivision consent; or



In the absence of subdivision consent, on land use consent; or



In the absence of subdivision consent or land use consent, on issuing a building consent, or



On the authorisation of a service connection

If a development contribution is required then an assessment will be made identifying all development contributions charges the consent will attract. 

Payment of a development contribution shall occur prior to the earlier of:



The issue of the Section 224 completion certificate under the Resource Management Act 1991;



The issue of necessary building consents under the Building Act 2004; or



An authorisation for a service connection.

Prevent the commencement of a resource consent under the Resource Management Act 1991. (b)

in the case of a development contributions required under Section 198(1)(b), withhold a code of compliance certificate under Section 95 of the Building Act 2004.

(c)

in the case of development contribution required under Section 198(1)(c), withhold a service connection to the development.

(d)

in each case, register the development contribution under the Statutory Land Charges Registration Act 1928, as a charge on the title of the land in respect of which the development contribution was required.

26

6.4

6.4.1

Postponement, Review, Remission, Reduction and Refund of Development Contributions Postponement of Development Contributions

There are no specific situations where a development contribution will be postponed or deferred.

6.4.2

Remission and Reduction of Development Contributions

This policy does not provide for any remissions or reductions to be applied for or granted (including Charitable and Not for Profit Organisations), other than remissions as described elsewhere in the policy for the following reasons: 

The introduction of remissions, and greater the number and range of remissions, the less transparent the administration of development contributions becomes. If the Council wishes to advance particular strategic objectives, it is important that it does so transparently and effectively via a means separate from this policy.



The introduction of remissions, and greater the number and range of remissions, the more complex and uncertain the administration of development contributions becomes.



Council’s view is that Charitable and Not For Profit Organisation developments still make demands on council’s infrastructure network and therefore should pay the appropriate development contribution.

Refund of Development Contributions

The refund of cash and return of land will occur in accordance with Sections 209 and 210 of the LGA, in the following circumstances: 

If the development does not proceed;



If a consent lapses or is surrendered;



If the Council does not provide any reserves, network infrastructure or community infrastructure for which a development contribution was required; or



If the Council does not apply money, or use land, within 10 years, or any relevant agreed period, of that contribution being received for any specified reserve purpose.

Review of Development Contributions

The Council does not consider it appropriate to provide any formal review process. As the policy has been through its public consultative period, and has been adopted by council, formal challenge to a valid assessment or to the policy can only be made through to the High Court.

6.4.3

6.4.4

For the avoidance of doubt, and except in relation to any money or land taken for a specified reserves purpose, the Council will not refund a development contribution where any specific project does not proceed, unless the activity for which the development contribution was taken is not provided. Any refunds will be issued to the payee. The amount of any refund will be the development contribution paid, less any costs already incurred by the Council in relation to the development and its discontinuance, but may include any interest earned depending on the circumstances of the case.

27

7.4 7.0

7.1

Other Matters

Land Valuations for the purposes of Development Contributions shall be a free market valuation. The valuation shall be on the basis of:

Capital Contributions; Scheme Extensions

Capital Contributions will continue to be collected in accordance with the Annual Plan / Long Term Plan. They will form part of the Contributions assessment and will be paid prior to issue of the 224c, Code Certificate of Compliance or service connection.

7.2

Development Contribution – Money or Land

The LGA2002 provides that a Development Contribution may be money or land, or both. Under this policy the contribution shall in every case be money unless, at the sole discretion of the Council, land offered by the developer would adequately suit the purposes for which the contribution is sought.

7.3

Esplanade Reserves

Esplanade Reserves do not fall within the scope of Parks: reserve land for development contributions. Esplanade Reserves will continue to be dealt with under the RMA as they are at present and will not be offset against development contributions due for Parks: reserve land in any way. There may be rare circumstances where Council desires a wider Esplanade Reserve, for example, and where the additional land may be offered as partial or total payment of the development contribution liability for Parks: Reserve land. This would have to be agreed at the discretion of the Council’s Community Services group and recorded in a suitable agreement.

Basis of Land Valuation



The rights and configuration given to the land under the consent application which gives rise to the Development Contribution assessment, and including any rights or configuration given by consents already granted.



The free market value at the time the Development Contribution is paid.



The Council may seek an separate independent valuation.

NOTE: It is anticipated that the Council will only require a revised valuation after 6 months where there is reason to believe that market values have altered significantly.

7.5

Revision of Schedule of Contributions

Council will review the Schedule of Contributions on at least a three yearly basis and consult on this revision through the LTP or Annual Plan process. Note that all figures in the Development Contributions Schedule (Appendix A) are expressed in 2012 dollars and these may be amended as appropriate in accordance with inflation, project information updates at least annually. If for any reason the Development Contribution is not paid within 3 months of assessment, then a revised assessment will be required using the schedule of charges at the time of payment being made.

7.6

Private Development Agreements

Where it is in the best interests of all parties, the Council may enter into a Private Development Agreement with a Developer pursuant to sections 12(2) and/or 200(2), Local Government Act 2002. This agreement must clearly state the 28

Development Contributions Policy departures from the standard process and calculation, and the reasons for entering into the agreement.

7.7

Council Developments and Development Contributions

The Council is exempt from paying any development contributions on any development or project that contains capital expenditure for which development contributions are required. This avoids the possibility of collecting contributions for one activity in order to pay for the contributions of another activity. Any development undertaken by Hastings District Property Limited (HDPL) will be subject to contributions for fairness and transparency.

7.8

Where applications are granted to vary consents or the conditions of consents, that result in a change to the household unit equivalents, gross floor area or impervious surface area (to the extent of the variation), these will be considered new developments for the purposes of requiring development contributions and revised or new assessments will be issued in accordance with this Policy.

7.12 Certificate of Acceptance Applications Development Contributions will be payable on any Certificate of Acceptance applications where there is an increase in household unit equivalents, or in the case of any non residential work, an increase in the gross floor area of the building.

The Crown and Development Contributions

The Crown is exempt from paying development contributions by statute. However, where an application consumes infrastructural capacity, it may required to enter into a service level agreement at the discretion of council.

7.9

7.11 Applications to Vary Consents or the Conditions of a Consent

Goods and Services Tax (GST)

The total end-to-end process for calculation of Development Contributions is exclusive of GST. Once all the calculations are complete, GST shall be added to the final invoice as required by the legislation and/or regulation in force at the date of the invoice.

7.13 Service Connections Council will continue to collect service connection fees in accordance with current practice and the LGA 2002 for the following assets: 

Water supply connections



Stormwater connections



Wastewater connections



Vehicle Crossings

7.10 Boundary Adjustments A contribution will apply in the case of a boundary adjustment if a demand is created for council service and infrastructure. However, council may at its discretion where no new titles are created, defer and assess contributions on the subsequent grant of land use or building consents or the subsequent authorisation of service or infrastructure connections.

29

8.0

Significant Assumptions

Third Party Funding While these are subject to change over time, Council has assumed that the funding policies of third party agencies will remain the same for the period of the LTP.

8.1 Assumptions Used Throughout the entire process of determining Development Contributions the Council has used the best available information. As more accurate or up-to-date information becomes available it will be used. Any significant updates that would cause a maximum contribution to be increased will be held over until the next review of the Development Contributions Policy or Schedule. If the effect of the update would be to reduce the maximum contribution it may be introduced by way of the special consultative process under the Local Government Act 2002.

Planning Horizons A 10 year timeframe is being used as a basis for forecasting growth and applying a development contribution. This is consistent with Councilâ&#x20AC;&#x2122;s activity management planning horizons and the requirements of the LGA 2002.

Growth Council has had to make the best assumptions it can regarding the anticipated growth of the District. Despite the recent high growth rates these are still within the tolerance expected by the growth model at the current level of available growth data.

Capital Works

Interest Rates The interest rates used within the Development Contributions Funding Model are those defined in the budget assumptions for the LTP. While interest rates are subject to fluctuation and are reviewed annually, these are reasonable assumptions over the periods of the LTP.

Key Risks/Effects There is a risk that the growth and uptake predictions in the growth model will not eventuate, resulting in a change to the assumed rate of development. However, modelling suggests that the impact of change to the growth projections on the total development contribution charge for each HUE is minor. Council will continue to monitor growth on a regular basis and will update assumptions in the growth and funding models as required. There is also a risk that the lag between expenditure incurred by Council and contributions received from those undertaking developments is different from that assumed in the funding model, and that the costs of capital are greater than expected. This would result in an increased debt servicing cost and could also result in increased depreciation costs for future ratepayers. Council will continue to monitor the rate of growth and will update assumptions in the growth and funding models as required.

In order to support the anticipated growth Council has assumed that a reasonable capital works programme will be necessary. If the growth rates alter it is most likely that the capital works programme will be re-sequenced or subtly accelerated or slowed rather than dramatically changed in some other way.

30

Appendix A Development Contributions Schedule of Fees and Charges Parks: Reserve Land Development Contributions for Parks: Reserve land shall not exceed the greater of(a)

7.5% of the value of the additional allotments created by a subdivision; or

(b)

The value equivalent of 20m of Reserve land required for each additional HUE created by a development.

2

Notes: 1.

The development contribution for Parks: Reserve land shall not exceed 

$3,641.00 (plus GST) per HUE in the Urban Contributing Area catchment



$2,231.00 (plus GST) per HUE in the Rural Area catchment.

2.

Should an applicant wish to take advantage of (a) above, a valuation by a registered valuer acceptable to the Council will need to be supplied at the applicant’s cost.

3.

Development Contributions for Parks: Reserve land will not be charged on non-residential subdivisions or developments.

Non-Residential Development and Subdivision: Section 4.4 and Table 4.4.1 need to be applied in conjunction Table A-1 below. Subdivision within Irongate Industrial and Omahu Industrial Catchments: Section 4.5, Table 4.5.1 and Table 4.6.1 need to be applied in conjunction Table A-2 and A-3 below. Network & Community Infrastructure See Table A-1. 31

Table A-1 BASE CHARGE PER HUE Activity

Area of Demand

DC per HUE (Excluding GST)

DC per HUE (Including GST)

Community Infrastructure

Community Wide

$273.00

$313.95

Roading

Community Wide

$2,219.00

$2,551.85

Stormwater

Clive Area

* No new service connections provided for $3,891.00

* No new service connections provided for $4,474.65

$3,724.00

$4,282.60

* No new service connections

* No new service connections

provided for

provided for

Hastings/Havelock North Water Area

$3,127.00

$3,596.05

Haumoana / Te Awanga Area

$2,419.00

$2,471.35

* No new service connections

* No new service connections

provided for

provided for

* No new service connections

* No new service connections

provided for

provided for

* No new service connections

* No new service connections

provided for

provided for

* No new service connections

* No new service connections

provided for

provided for

Urban Area Wastewater

Urban Contributing Area

Water Supply

Clive Area

Waimarama Water Area

Waipatiki Water Area

Whakatu Area

Whirinaki Water Area

* Where the above states â&#x20AC;&#x2DC;No new service connections provided forâ&#x20AC;&#x2122;, no growth has been planned for. At the discretion of the Water Supply Manager where capacity becomes available, council will permit a new service connection but under a Service Level Agreement where a financial contribution may be required.

32

Table A-2 IRONGATE INDUSTRIAL DEVELOPMENT STAGE 1 BASE CHARGE PER HUE Activity

Area of Demand

DC per HUE (Excluding GST)

Roading

Irongate Catchment

$5,920.41

DC per HUE (Including GST) $6,808.47

Stormwater

Irongate Catchment

$11,636.92

$13,382.46

Wastewater

Irongate Catchment

$5,125.51

$5,894.34

Water Supply

Irongate Catchment

$9,290.21

$10,683.74

Table A-3 OMAHU INDUSTRIAL DEVELOPMENT BASE CHARGE PER HUE Activity

Area of Demand

DC per HUE (Excluding GST)

Roading

Omahu Catchment

$18,765.50

DC per HUE (Including GST) $21,580.33

Stormwater

Omahu Catchment

$12,913.90

$14,850.99

Wastewater

Omahu Catchment

$4,982.25

$5,729.59

Water Supply

Omahu Catchment

$6,076.95

$6,988.49

33

Appendix B Development Contributions Calculations - Examples Example 1 – Residential Subdivision Proposal:

Subdivide a 1000m2 into two new lots within Hastings / Havelock North / Flaxmere. The site has one existing connected dwelling and therefore receives one ‘historic credit’.

Assessment:

One set of contributions for each lot Less Credits as per 2.3 Development Contributions Policy for any existing connections

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE (Excluding GST)

Total Cost (Including GST)

Community Infrastructure

2

(1)

$273.00

$313.95

Roading

2

(1)

$2,219.00

$2,551.85

Parks & Reserves (Urban)

2

(1)

$3,641.00

$4,187.15

Water

2

(1)

$3,127.00

$3,596.05

Wastewater

2

(1)

$3,724.00

$4,282.60

Stormwater

2

(1)

$3,891.00

$4,474.65 Total

Total Contributions therefore payable on this development is $19,406.25

$19,406.25

Example 2 – Rural Subdivision Proposal:

Subdivide a 20Ha rural site into 3 new lots. The site has one existing un-serviced dwelling and therefore receives one ‘historic credit’.

Assessment:

One set of contributions for each lot Less Credits as per 2.3 Development Contributions Policy for any existing connections

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE

Total Cost (Including GST)

Community Infrastructure

3

(1)

$273.00

$627.90

Roading

3

(1)

$2,219.00

$5,103.70

Parks & Reserves (Rural)

3

(1)

$2,231.00

$5,131.30

Water

3

N/A

-

-

Wastewater

3

N/A

-

-

Stormwater

3

N/A

-

Total

$10,862.90

Total Contributions therefore payable on this development is $10,862.90. ($5,431.45 per additional lot)

35

Example 3 – Erect Secondary or Subsidiary Dwelling (80m2) Proposal:

Erect a ‘Secondary or Subsidiary Dwelling’ of 80m2 located in Hastings / Havelock North / Flaxmere

Assessment:

Dwelling does not ‘qualify’ for a reduced contribution rate as it has a gross floor area in excess of 80m2. One set of contributions applicable for the additional residential dwelling.

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE (Excluding GST)

Total Cost (Including GST)

Community Infrastructure

1

-

$273.00

$313.95

Roading

1

-

$2,219.00

$2,551.85

Parks & Reserves (Urban)

1

-

$3,641.00

$4,187.15

Water

1

-

$3,127.00

$3,596.05

Wastewater

1

-

$3,724.00

$4,282.60

Stormwater

1

-

$3,891.00

$4,474.65 Total

$19,406.25

Total Contributions therefore payable on this development is $19,406.25.

36

Example 4 – Erect Secondary or Subsidiary Dwelling (60m2) Proposal:

Erect a ‘Secondary or Subsidiary Dwelling’ of 60m2 located in Hastings / Havelock North / Flaxmere

Assessment:

Dwelling ‘qualifies’ for a reduced contribution rate (as per 4.3 of this policy) as it has a gross floor area of less than 80m2. 60m2 / 80m2 = 0.75 HUE charge

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE (Excluding GST)

Total Cost (Including GST)

Community Infrastructure

0.75

-

$273.00

$235.46

Roading

0.75

-

$2,219.00

$1,913.89

Parks & Reserves (Urban)

0.75

-

$3,641.00

$3,140.36

Water Wastewater

0.75 0.75

-

$3,127.00 $3,724.00

$2,697.04 $3,211.95

Stormwater

0.75

-

$3,891.00

$3,355.99 Total

$14,554.69

Total Contributions therefore payable on this development is $14,554.69.

37

Example 5 – Demolish Existing Dwelling and Erect A New Dwelling Proposal:

Demolish an existing dwelling and erect a new dwelling. Utilising existing connections.

Assessment:

One set of contributions for each lot Less Credits as per 2.3 Development Contributions Policy for any existing connections

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE (Excluding GST)

Total Cost (Including GST)

Community Infrastructure

1

(1)

$273.00

-

Roading

1

(1)

$2,219.00

-

Parks & Reserves (Urban)

1

(1)

$3,641.00

-

Water

1

(1)

$3,127.00

-

Wastewater

1

(1)

$3,724.00

-

Stormwater

1

(1)

$3,891.00

Total

NIL

No contributions would be payable on this application due to ‘actual credits’. Please refer to ‘Credits’ section 2.3.

38

Example 6 – Erect A New Dwelling Proposal:

Erect a New Dwelling on a vacant lot created after April 2000. Existing connection to services (Development Levies for Parks: Reserves Land and Network Infrastructure charged at time of Subdivision)

Assessment:

One set of contributions for each lot Less Credits as per 2.3 Development Contributions Policy for any existing connections

Activity

Number of HUE’s being created by Proposal

Number of HUE’s ‘credits’ (as per section 2.3)

Cost per HUE (Excluding GST)

Total Cost (Including GST)

Community Infrastructure

1

-

$273.00

$313.95

Roading

1

(1)

$2,219.00

-

Parks & Reserves (Urban)

1

(1)

$3,641.00

-

Water

1

(1)

$3,127.00

-

Wastewater

1

(1)

$3,724.00

-

Stormwater

1

(1)

$3,891.00

Total

$313.95

Total Contributions therefore payable on this development is $313.95. Financial Contributions have been charged for Network Infrastructure (Roading, Water, Wastewater and Stormwater) at the time of subdivision. Actual Credits are given against this assessment. No contribution has been assessed and paid for Community Infrastructure as these were previously charged upon Building Consent. A contribution for Community Infrastructure is therefore applicable.

39

Example 7 – Erect an Industrial Building Proposal:

Erect a 500m2 Industrial Building in Hastings / Havelock North / Flaxmere in addition to existing buildings on site. The site is currently serviced for all council services.

Assessment:

Contributions payable on the additional Gross Floor Area (500m2) for all services.

Activity

HUE’s per 100m2 GFA (as per Table 4.3.1)

Number of HUE’s Required

Cost per HUE (Excluding GST)

Total Cost (including GST)

Roading

0.42

x(500/100m2) = 2.1 HUE’s

$2,219.00

$5,358.89

Water

0.48

x(500/100m2) = 2.4 HUE’s

$3,127.00

$8,630.52

Wastewater

0.60

x(500/100m2) = 3 HUE’s

$3,724.00

$12,847.80

Stormwater

0.29

x(500/100m2) = 1.45 HUE’s

$3,891.00

$6,488.24

Total

$33,325.45

NOTE: No contributions in respect of Community Infrastructure and Parks: Reserve Land are required on Non Residential applications.

Total Contributions therefore payable on this development is $33,325.45 (the equivalent impact of 2.2 average households)

40

Example 8 – Subdivision of Industrial Land (Hastings / Havelock North / Flaxmere) Proposal:

Subdivide 5000m2 of land into one site of 4000m and one site of 1000m. Both sites are vacant but already has existing connections to council services.

Assessment:

Contributions applicable as per Table 4.5 at the time of subdivision 5000m2 x 25% = 1250m2 Chargeable Gross Floor Area

Activity

Hue’s per 100m2 GFA (as per Table 4.3.1)

Hue’s per 1250m2 GFA

Number of HUE’s Required

HUE’s Credits

HUE’s payable

Cost per HUE (Excluding GST)

Total Cost (including GST)

Roading

0.42

1250 / 100m = 12.5

5.25

(1)

4.25

$2,219.00

$10,845.36

Water

0.48

1250 / 100m = 12.5

6

(1)

5

$3,127.00

$17,980.25

Wastewater

0.60

1250 / 100m = 12.5

7.5

(1)

6.5

$3,724.00

$27,836.90

Stormwater

0.29

1250 / 100m = 12.5

3.625

(1)

2.625

$3,891.00

$11,745.96

Total

$68,408.47

NOTE: No contributions in respect of Community Infrastructure and Parks: Reserve Land are required on Non Residential applications.

Total Contributions therefore payable on this development is $68,408.47 Credits (expressed in HUE’s) taken forward will be shared to each site based on their m2 size. Ie 4/5 to Site A, 1/5 to Site B. A further assessment would be undertaken at the time of building consent being submitted less any credit allocation.

41

Example 9 – Subdivision of Land in Irongate Industrial Catchment Stage 1 Proposal:

Subdivide 1 hectare of land into two sites of 5000m each. Both sites will be serviced for all council services. Assumed development took place in Year 5 (see Table 4.5.3).

Assessment:

Contributions applicable as per Table 4.5.2 at the time of subdivision. Site of 10,000 x 25% = 2,500m2 Chargeable Gross Floor Area

Activity

HUE’s per 100m2 GFA (as per Table 4.5.2)

Number of HUE’s Required

Cost per HUE (Excluding GST)

Total Cost (including GST)

Roading

0.42

x(2500/100) = 10.5 HUE’s

$5,920.41

$71,488.94

Water

0.39

x(2500/100) = 9.75 HUE’s

$9,290.21

$104,166.46

Wastewater

0.49

x(2500/100) = 12.25 HUE’s

$5,125.51

$72,205.67

Stormwater

0.29

x(2500/100) = 7.25 HUE’s

$11,636.92

$97,022.84 Total

$344,883.91

NOTE: No contributions in respect of Community Infrastructure and Parks: Reserve Land are required on Non Residential applications.

Total Contributions therefore payable on this development is $344,883.91. A further assessment would be undertaken at the time of building consent being submitted. Credits would be taken forward (expressed in HUE’s). I.e Roading credits of 10.5 HUE’s, Water credits of 9.75 HUE’s, Wastewater credits of 12.25 HUE’s and Stormwater credits of 7.25 HUE’s will be taken forward and pro rata allocated across each site. 42

Example 10 – Subdivision of Land in Omahu Industrial Catchment Proposal:

Subdivide 1 hectare of land into two sites of 5000m each. Both sites will be serviced for all council services.

Assessment:

Contributions applicable as per Table 4.5.2 at the time of subdivision. Site of 10,000 x 25% = 2,500m2 Chargeable Gross Floor Area

Activity

HUE’s per 100m2 GFA (as per Table 4.5.2)

Number of HUE’s Required

Cost per HUE (Excluding GST)

Total Cost (including GST)

Roading

0.42

x(2500/100) = 10.5 HUE’s

$18,765.50

$226,593.41

Water

0.39

x(2500/100) = 9.75 HUE’s

$6,076.95

$68,137.80

Wastewater

0.49

x(2500/100) = 12.25 HUE’s

$4,982.25

$70,187.44

Stormwater

0.29

x(2500/100) = 7.25 HUE’s

$12,913.90

$107,669.56 Total

$472,588.30

NOTE: No contributions in respect of Community Infrastructure and Parks: Reserve Land are required on Non Residential applications.

Total Contributions therefore payable on this development is $472,588.30. A further assessment would be undertaken at the time of building consent being submitted. Credits would be taken forward (expressed in HUE’s). I.e Roading credits of 10.5 HUE’s, Water credits of 9.75 HUE’s, Wastewater credits of 12.25 HUE’s and Stormwater credits of 7.25 HUE’s will be taken forward and pro rata allocated across each site.

43

Appendix C Areas of Demand

Map 1 – 2

Parks and Reserves Catchments

Map 3 – 4

Service Catchments: Stormwater

Map 5

Service Catchments: Wastewater

Map 6 – 12

Service Catchments: Water Supply

Map 13

Irongate Catchment

Notes: 1.

The Maps in this Appendix are held in the Hastings District Council Geographical Information System. More detail on these maps can be obtained from the Council.

2.

Community Wide Catchments for Community Facilities and Roading have not been included. All areas of the Hastings District Council are included in these two catchments.

44

Map 1)

Map 2)

Map 3)

Map 4)

NB: Please note that any development that occurs within the Omahu Industrial Catchment will be assessed against the Omahu Industrial Catchment and not the Urban Catchment above. 46

Map 5)

Map 6)

NB: Please note that any development that occurs within the Omahu Industrial Catchment will be assessed against the Omahu Industrial Catchment and not the Urban Catchment above. 47

Map 7)

Map 8)

NB: Please note that any development that occurs within the Omahu Industrial Catchment will be assessed against the Omahu Industrial Catchment and not the Urban Catchment above. 48

Map 9) No new service connections provided for

Map 10) No new service connections provided for

49

Map 11) No new service connections provided for

Map 12) No new service connections provided for

50

Map 13)

Map 14)

51

Appendix D Hastings District Plan Existing Financial Contributions Section 15.2 – Reserves Contributions Section 15.3 – Development Levies Section 15.4 – Roading Contributions SECTION 15.2

RE S ER V E S C ON TRI B U TI O NS

INTRODUCTION Reserves, open spaces and recreational facilities include parks, gardens, plantations, neighbourhood playgrounds, sportsgrounds, sports stadiums, libraries and swimming pools. These play an important role in providing for the social, cultural and economic well-being of communities, and in off-setting adverse environmental effects of urban expansion and residential development by maintaining and improving amenity values and protecting natural and physical resources. The Resource Management Act 1991 requires the Council to manage the effects of subdivision and development in a manner which promotes the sustainable management of natural and physical resources. Among the powers conferred on the Council to manage effects, is the power, under Section 108(1)(a) of the Act, to require a financial contribution as a condition of a Subdivision Consent, Permitted Activity or Resource Consent. Financial contributions may be in the form of money or land. RESOURCE MANAGEMENT ISSUES 

New subdivisions and developments can create demands for the provision of new reserves and recreational facilities, or the improvement and development of existing ones. When new allotments are created, or existing allotments are developed, it may be necessary to provide new reserves and recreational facilities, or to improve and develop existing ones, to ensure that there are sufficient reserves and facilities available to meet the needs of the community. These are important to maintain or enhance the amenity values and recreational opportunities of the District, which contribute to people’s appreciation of its pleasantness, aesthetic coherence and cultural and recreational attributes. Generally, the provision, development or upgrading of reserves and recreational facilities can benefit all of the District’s communities, although they are likely to be of more benefit to people living closer to them.



Increasing urban densities generate more demand for convenient public open space. Reduced section sizes, and increasing urban densities means that accessible, convenient public open space is increasingly desirable to provide for a range of casual play and recreation opportunities. The proximity of available public recreational space may also provide the opportunity to increase density, and reduce the demand to expand urban boundaries.



Subdividers and developers should pay their fair and reasonable share of the costs of providing new or improved reserves and recreational facilities. Where new reserves and recreational facilities must be provided, or existing ones upgraded or developed, ratepayers should not be required to subsidise these works. Equally, subdividers and developers should not be required to contribute towards reserves and recreational facilities where these are needed to meet existing shortfalls in the District. Instead, subdividers and developers should pay their fair and reasonable share of any costs of providing, improving or developing reserves and recreational facilities.



Industrial and Commercial subdivisions and developments. Increased demand for reserves and recreational facilities is usually generated through growth in population associated with residential subdivisions and developments, including rural-residential, papakainga housing developments and residential developments in the commercial zones. Industrial and commercial activities however, do not contribute significantly to demand, and should not be required to contribute to the provision, upgrading or development of reserves and recreational facilities



Maintenance of reserves and recreational facilities. Under the Resource Management Act 1991 financial contributions can be used for the maintenance of reserves and recreational facilities, provided it is specified in the District Plan. It is however considered, that reserves contributions should only be used for the purchase and development of new reserves and recreational facilities, or for the improvement and development of existing ones. The maintenance of reserves and recreational facilities is considered to be more appropriately funded through rates.



Timing of taking reserves contributions. Taking reserves contributions from subdividers and developers as early as possible can have the following benefits: - it can reduce the rating burden on the community as the Council can recover costs of providing, upgrading or developing reserves more quickly; - it can allow reserves and recreational facilities to be put in place in advance of the anticipated demand occurring.

53



Monitoring and review of contributions. In order to ensure that contributions taken continue to be appropriate to the needs of the community for reserves and recreational facilities, it is essential that they are monitored and reviewed regularly. Over time, land values or construction costs may vary and the amounts of contributions may need to be updated to ensure that they remain at an equivalent value to when they were first established.

OBJECTIVE RCO1

To ensure that subdividers and developers pay their fair and reasonable share of the costs of providing, improving or developing reserves and recreational facilities, to meet demand generated by the development of new subdivision sites or existing allotments, and to avoid, remedy or mitigate adverse effects on the environment.

RCP1

Provide for Reserves and Recreation Facilities by requiring Land Reserve Fees for subdivisions and developments located in Proposed New Urban Development Areas.

POLICIES

Explanation Section 2.4 of the District Plan identified Proposed New Urban Development Areas in the Hastings District. Greater population in these areas will increase demand for public recreation space. The Hastings District Reserves Development Strategy has identified new reserves required to cater for this increased demand. Section yields for different areas are shown in Appendix 15.2-1. The additional reserves required will be distributed between local and neighbourhood parks, sports fields and larger passive parks. While all new residential development will be required to contribute at an equal rate to new reserves, the placement of these will reflect the present distribution of reserves, their function, their expected catchment and the availability of land. The Hastings District Reserves Development Strategy identifies areas where new reserves are planned to accommodate this demand.

RCP2

Regularly monitor and review Land Reserve Fees to ensure that they remain relevant to the actual costs of purchasing land for reserves for new urban development areas. Explanation

54

The percentage of the Land Reserve Fee taken from subdividers in new urban development areas, identified as having land requirements for new reserves, will be monitored and reviewed regularly to ensure that it remains relevant to the actual costs of purchasing the necessary land for the reserves. Any alteration to the Land Reserve Fee would need to be introduced by way of a Change to the District Plan. RCP3

Take District Reserve/Recreation Facility Fees for every new residential building and (Secondary Residential Buildings) in the General Residential, Deferred Residential, Plains Residential, Coastal Residential, Plains, Rural, Rural-Residential, Te Mata Special Character, Central Commercial, Central Residential-Commercial, Commercial Service and Suburban Commercial Zones of the District. Explanation The development of household units on allotments can generate demand for the upgrading or improvement of reserves and recreational facilities in the District, by intensifying the number of people living in the District. These developments will be required to pay their fair and reasonable share of the costs of implementing these works. The Council’s Reserve Development Strategy identifies requirements for the improvement or development of reserves and recreation facilities in the District, over the next 10-20 years (see Appendix 15.2-2 of the District Plan). Such improvements and developments are identified in the strategy as being necessary to meet demand for reserves and recreation facilities likely to be generated from additional people living in the District as a result of new residential developments. The Strategy identifies improvement and development works required, as well as the expected costs of those works. A District Reserve/Recreation Facility Fee will therefore be taken from developers as a one-off flat fee, as a condition of a Permitted Activity or Resource Consent for every new household unit (excluding Secondary Household Units) developed on an allotment in the General Residential, Deferred Residential, Plains Residential, Coastal Residential, Plains, Rural, Rural-Residential, Te Mata Special Character, Central Commercial, Central Residential-Commercial, Commercial Service and Suburban Commercial Zones of the District. The levies taken will vary, depending on whether the development site is located in the urban zones, or in the Rural or Plains zones of the District. These variations reflect the distance of development sites in these areas from the urban centres of Hastings, Havelock North and Flaxmere, where the majority of reserves and recreation facilities are located in the District. The Fee is weighted (using the Council’s Rates Weighting Formula) to reflect the expected variations in the use of reserves and recreation facilities by people living in these areas. For example, it is expected that people in Hastings would generally utilise reserves and recreation facilities in the District more than those living in Whirinaki. The District Reserve/Recreation Facility Fee paid by people living in the General Residential Zones of Hastings, Havelock North and Flaxmere will therefore be higher than the fee for those people living in the Coastal Residential Zones of Waimarama and Whirinaki, or the Rural Zone.

RCP4

Regularly review and monitor District Reserve/Recreation Facility Fees to ensure that they remain relevant to the actual costs of improving or developing reserves and recreation facilities to accommodate demand generated by residential developments. 55

Explanation The amounts of District Reserve/Recreation Facility Fees taken from new household units will be monitored and reviewed regularly to ensure that they are matched to the costs of carrying out works which are necessary to ensure that reserves and recreation facilities in the District can accommodate the additional demand expected to be generated by the developments. The fees may be changed in accordance with any changes in the actual costs for providing reserves and recreation facilities and/or any changes in the Cost Construction Index, to ensure that the fees remain current with construction costs. Any adjustments to the fees will be included in the Council’s Annual Plan. A complete review of fees may however, be undertaken, from time to time, in conjunction with any reviews of the Reserves Development Strategy. Any changes to the fees, other than annual adjustments, will be introduced by way of a formal change to the District Plan. RCP5

Where a heritage site (such as an archaeological site or a waahi tapu) has been set aside, either as a reserve, a conservation lot or consent notice as part of a subdivision, this will be taken into account when assessing any reserve contribution for the subdivision. Explanation Subdivisions which include the protection of a heritage site, benefit the community by protecting an item that contributes to the social and cultural well being of the community and the maintenance and enhancement of amenity values. The public good derived from the protection of a heritage site is a legitimate resource management issue that should be recognised when assessing reserve contributions on a subdivision. The nature of protection provided, significance of the site, and degree of public benefit derived will all be taken into consideration when assessing any reserve contribution.

METHODS The Objectives and Policies will be implemented through the following methods: 

Hastings District Council Reserves Development Strategy Identifies requirements in the District for the establishment, improvement or development of reserves and recreational facilities in the District over the next 1020 years.



Hastings District Plan Urban Development and Strategic Urban Directions (Section 2.4): This section identifies the New Development Areas (Appendix 2.4-1) which the Council will progressively rezone to provide its urban residential landbank. The land reserve requirement is Appendix 15.2-1 identifies the reserves required to service the 56

new development areas. The projected housing requirements are also utilised to establish the contribution from new development to the upgrading and expansion of recreational facilities in the District through the Reserve/Recreation Facility Fee. Subdivision and Land Development (Section 15.1): This section establishes Objectives, Policies and Rules that provide for the subdivision of land, which is one of the triggers to the collection of land Reserve Fees. 

Hastings Urban Development Strategy (HUDS) The HUDs study had identified the requirements for land in the Hastings District to accommodate urban development demands until the year 2020. This adopted Strategy has established a number of Proposed New Development Areas, which in turn have been utilised in developing the Council’s Reserve Development Strategy, which identifies the requirements for the provision of physical reserves in each of these areas.



Building Act 1991 District Reserve/Recreation Facility Fees are taken at the time of building consent.



Hastings District Council Annual Plan Identifies reserves and recreation facility works which are planned to be carried out over the next financial year in the Hastings District by the Council, including the amount of funding budgeted for these works.

ANTICIPATED OUTCOMES It is anticipated that the following outcomes will be achieved:

15.2.7



Provision of suitable reserves and recreational facilities to meet the needs of the District’s communities.



Fair and reasonable apportionment of costs between rate payers, subdividers and developers.

RULES The following rules shall apply.

57

15.2.7.1 LAND RESERVES Subdivisions and development in Proposed New Urban Development Areas (identified in Appendix 2.4-1) have land reserve requirements that are identified in the Hastings District Council Reserves Development Strategy (see Appendix 15.2-1 of the District Plan) and shall comply with the following standards. (a)

Land Reserve Fees 1.

At the creation of any site by subdivision, a land reserve fee shall be paid as determined by Council as follows: in cash, land, or a combination of land and cash, at a maximum value of 3.5% (plus GST) of the current market land value (exclusive of GST) of the site based on compliance with the minimum requirements of the Engineering Code of Practice at the time the subdivision consent is lodged, provided that the value of any land contribution will be no more than would otherwise be taken for a contribution in cash except for the creation of any site within the Lyndhurst New Urban Development Area (as indicated in Appendix 2.4-1) where a contribution of cash, land, or a combination of land and cash, at a value of 4.1% (plus GST) of the current market value (exclusive of GST) of the site. Where a Land Reserve Fee has been paid on any site within the previous 10 years in accordance with Rule 15.2.7.1(a)(ii) (below) the value of that fee shall be credited against any Land Reserve Fee required to be taken on a new site pursuant to Rule 15.2.7.1(a)(i).

1.

For every second and subsequent residential building (excluding secondary residential buildings) created on a site a Land Reserve Fee shall be paid as follows: 2

The Land Reserve Fee shall be paid at a rate of 3.5% (plus GST) of the current market value of a notional area of 700m of the site on which the residential building is to be located. Each residential building shall be charged at the above rate until the sum of the notional areas charged equals the area of the site. Where any site has been created since the operative date of this Plan for which a Land Reserve Fee has been paid in accordance with Rule 15.2.7.1(a)(i) above, Rule 15.2.7.1(a)(ii) shall not apply. Note 1:

The first of any existing residential building (including any secondary residential building) shall be deemed as having paid a Land Reserve Fee 2 on a notional area of 700m (in total).

Note 2:

The final Land Reserve Fee shall be charged on an area of 700m or such lesser area as required to equal the area of the site.

2

15.2.7.2 DISTRICT RESERVE RECREATION FACILITIES 1.

District Reserve/Recreation Facility Fee

58

The following Fees shall be paid for every new residential building (including Papakainga residential buildings, but excluding Secondary Residential Buildings) created on an allotment in the following zones: ZONE General Residential Zones in Hastings, Havelock North and Flaxmere. Central Commercial, Central Residential-Commercial, Commercial Service and Suburban Commercial Zones. Plains Zone, Deferred Residential Zone, Rural-Residential Zone, Plains Residential Zone, General Residential Zones of Clive and Whakatu, Te Mata and Tuki Tuki Special Character Zones and Coastal Residential Zones of Haumoana and Te Awanga Rural Zone and Coastal Residential Zones of Waimarama, Waipatiki and Whirinaki, and Coastal Residential zones of Tangoio and Ocean Beach (if and when zoned).

AMOUNT PAYABLE $380 (plus GST) per residential building

$185 (plus GST) per residential building $85 (plus GST) per residential building

15.2.7.3 LAND RESERVES AND DISTRICT RESERVE/RECREATION FACILITY FEES â&#x20AC;&#x201C; WHEN PAYABLE (a)

These fees shall, when they are required to be paid on the creation of a residential building being a Permitted Activity, be paid in cash prior to uplifting the Building Consent for the residential building(s).

(b)

These fees shall, when they are payable on a development requiring a Resource Consent (other than for a subdivision), be payable as and when required by any condition of that consent, whether or not the activity is a Controlled, Restricted Discretionary, Discretionary or Non-Complying Activity.

1.

These fees shall, when they are required to be paid on the creation of a site by subdivision, be paid prior to the issue of a Certificate under Section 224 of the Resource Management Act 1991.

59

APPENDIX 15.2-1 LAND RESERVES – PROPOSED NEW URBAN DEVELOPMENT AREAS The Table below indicates the land requirements of new reserves or open spaces in urban areas over the next 10 – 20 years. These figures have been calculated using the principles outlined in the Reserves Development Strategy Adopted 6 March 1997. A. HASTINGS URBAN Lyndhurst Irongate/York Hastings Tomoana Road, Pakowhai Road, Williams Street

RESERVE AREA

PROJECTED SECTION YIELD

7ha 0.5ha 8.4ha 1.25ha

700-750 344 715 250

17.15ha B. HAVELOCK NORTH Arataki Iona Middle Road Goddards Lane Havelock Hills

RESERVE AREA

PROJECTED SECTION YIELD

6.0ha 0.3ha -

800 71 90 100

6.3ha C. OTHER AREAS Te Awanga Clive Additional Undefined Area

RESERVE AREA

PROJECTED SECTION YIELD

0.3ha 0.0ha 0.6ha

36 90

0.9ha TOTAL

24.35ha

3246

60

APPENDIX 15.2-2 DISTRICT RESERVE RECREATION FACILITIES The Table below indicates Hastings District Council expenditure projections 20 years to 2015 for Recreation Facilities (updated c.s.d. 28-01-97) as adopted on 6 March 1997. Funding Source Rates A

Passive Parks Playground Improvements

Reserves

440,000

Civic Square

400,000

Arataki Subdivision Waimarama Domain

Rates & Reserves

1,050,000 50,000

Hikanui Road

150,000 180,000

Chatham Park SW

20,000

Duart Cobblestoning

14,000

Riverlands

20,000

Keirunga Gardens

150,000

Puketapu Park Equipment/BBQ

70,000

Frimley Park fencing

25,000

Windsor Park carpark

100,000

Kingsley Park development

40,000

Duart grounds development

134,000 61

Funding Source Rates

Reserves

Rates & Reserves

Ocean Beach erosion/carpark

150,000

Windsor Park bridge

120,000

Anderson Park bridge

35,000

Mayfair Park seating

50,000

Eskdale Park upgrade

20,000

Lyndhurst subdivision

68,000

General Subdivision Development

4,022,000

and Unidentified Holt House renovations

50,000

Ebbet Park paths

35,000

Flaxmere Village green

200,000

Tauroa Road reserve

80,000

Tanner Street reserve

80,000

Aviary renovations

30,000

Cornwall Park Robert Street imps

20,000

Windsor Park fencing Waipatiki drainage and fencing

100,000 40,000

6,000

62

Funding Source Rates

Reserves

Frimley Park frontage Oak Avenue narrow road

Rates & Reserves 20,000

100,000

Irongate/York subdivision

225,000

Middle/Iona subdivision

410,000

Te Awanga subdivision

193,000 885,000

5,974,000

2,038,000

63

Appendix 15.2-2 continued... B.

Rates

Rates & Reserves

Sportsgrounds Nelson Park upgrade Cricket wickets

1,490,000 48,000

Haumoana tennis courts

150,000

Frimley Park changing rooms

100,000

Akina Park changing room

190,000

Ron Giorgi Park changing room/fencing

450,000

Charge ground development

250,000

Chatham Park changing room

200,000

Netball courts

300,000

Mayfair Park seating

50,000 48,000

C.

Reserves

3,180,000

Fantasyland Development

1,000,000 1,000,000

D.

Swimming Pools Various improvements Clive Pool

212,500 73,000

64

Appendix 15.2-2 continued...

Rates

Sauna, slide, co-gen.

75,000

Public Conveniences Toilet upgrades

H.

10,242,763

Information Centre Office extensions

G.

283,000

Libraries Books etc.

F.

Rates & Reserves 210,000

212,500

E.

Reserves

950,000

Municipal Theatre/Building Various upgrade costs: - Theatre

1,134,100

- Building

611,000 1,745,100

65

Appendix 15.2-2 continued... I.

Rates

Reserves

Cemeteries/Crematorium Beams, fencing etc Crematorium redevelopment

44,000 150,000

Mangaroa extension

210,000

New cemetery

500,000 194,000

J.

Rates & Reserves

710,000

Halls and Community Centres Nil

GRAND TOTALS

SECTION 15.3

$14,352,363

$5,974,000

$7,211,000

D EV E L OP M ENT L E VI E S

INTRODUCTION In reticulated areas, land use activities associated with new or existing allotments will require the provision of local services and may give rise to demand for the extension or upgrading of service infrastructure, to ensure that there is a sufficient supply of water to each allotment, and that suitable provision can be made for the disposal of wastewater, trade waste and stormwater from each allotment. This infrastructure is important to ensure the health and safety of people, to avoid inundation of land from stormwater runoff, and to ensure that sufficient water is available for fire fighting purposes.

66

The Resource Management Act 1991 requires the Council to manage the effects of subdivision and development in a manner which promotes the sustainable management of natural and physical resources. Among the powers conferred on the Council to manage effects, is the power to require financial contributions as a condition of a Subdivision Consent, Permitted Activity or resource consent. Financial contributions may be in the form of money or land. This section of the District Plan provides Objectives, Policies and Rules for taking financial contributions for services from subdividers and developers. This is to ensure that subdividers and developers pay their fair and reasonable share of the costs of providing services for water supply, and for wastewater, trade waste and stormwater disposal, which are necessary to meet the needs of activities, and to avoid, mitigate or remedy adverse effects of activities on the environment. RESOURCE MANAGEMENT ISSUES 

New subdivisions and developments can create demands for the extension or upgrading of service infrastructure When new allotments are created, or existing allotments are developed, it may be necessary to extend or upgrade the service infrastructure (in areas where this is provided) to ensure that each allotment has available to it, a water supply, and services for the disposal of wastewater, trade waste and stormwater. This is important to ensure the health and safety of residents, and to avoid the inundation of allotments and neighbouring properties from stormwater runoff.



Subdividers and developers should pay their fair and reasonable share of the costs of expanding or upgrading services. Where services must be expanded or upgraded to meet demands created by new subdivisions or developments, current users should not be required to subsidise these works. Equally, subdividers and developers should not be required to contribute towards service infrastructure works where these are needed to meet existing shortfalls in the infrastructure. Instead, subdividers and developers should pay their fair and reasonable share of any costs of maintaining present service levels to both current and future users.



Timing of taking Development Levies. Taking Development Levies from subdividers and developers as early as possible can have the following benefits: - it can reduce the rating burden on the current users as the Council can recover servicing costs more quickly. - it can allow service infrastructure to be put in place or upgraded in advance of the anticipated development occurring.



Monitoring and review of Development Levies. In order to ensure that contributions taken remain appropriate to maintain the present service levels to both current and future customers, it is essential that they are monitored and reviewed regularly. Over time the asset value will vary and the amounts of levies will need to be updated to ensure that they are consistent with the asset value and the present level of service.

OBJECTIVE 67

ď&#x201A;ˇDLO1

To ensure that subdividers and developers pay their fair and reasonable share of the costs of expanding or upgrading service infrastructure to meet demand generated by the development of new or existing allotments, and to avoid, remedy or mitigate adverse effects on the environment.

POLICIES ď&#x201A;ˇDLP1

Where a network service needs to be provided, upgraded or extended, to address the environmental effects of land use activities to ensure the current level of service required for new subdivisions or developments, subdividers or developers will be levied their fair and reasonable share of the costs of carrying out the works. Explanation Subdividers and developers will be required to contribute on a pro-rata basis to the costs of providing any new services, or upgrading or extending existing services, which are necessary to meet their servicing needs. In the future, new or expanded developments will generally need to be serviced by existing or new service networks. These service networks are provided and maintained by Council for the benefit of all users who are currently connected. This asset is valued annually and managed through the Asset Management Plan (AMP). Development Levies are only paid on the Resource Component of the Network. This is the total network value e.g.; source, reservoirs, treatment, pumps, trunk mains, pipes and other facilities excluding mains and pipelines less than 150mm in diameter which form the Reticulation Component. The Reticulation Component upgrades will be funded from uniform annual charges, while the resource component upgrades will be funded by the Development Levies. The residual value of the resource component of the network (replacement value minus depreciation) minus outstanding loans is used for the levy calculation. This residual value of the resource component is then divided by the total installed capacity of the supply pumps for water, and disposal pumps installed capacity for wastewater discharge. This gives a dollar value for supply/output per litre per second peak hour flow. A uniform nominal supply/discharge demand per litre per second peak hour flow for residential users is applied to give a dollar cost per residential building connecting to the network. For other purposes the subdivider or developer will nominate the supply/output demands to complete the Development Levy calculation.( For water supply adjustments are made in the Asset Management Plan for differences in the supply cost of water for fire fighting or potable supply purposes.) The methodology adopted for charging development levies assumes that each land use activity can be regarded as having an allocation of the total value of the service network in proportion to the amount of service network their land use activity uses. Any new connection or increased usage of a service network by a land use activity will require a payment for this additional share of the service network. Development Levies will be calculated using one method but with two different basis of calculation depending on land use.

68

Residential development levies will be charged on a uniform basis because residential buildings generally have a uniform maximum potential demand. The fees required to be paid will simply be; the cost per litre per second discharge to or supply from the service network which they wish to connect to for residential buildings (in accordance with the current AMP) multiplied by the number of residential buildings to be connected to that network. As industrial or commercial demand is not uniform, fees required to be paid will be calculated on a per unit flow rate of the network they wish to connect to. The dollar charging rate will also be calculated with at a cost per litre per second discharge to or supply from the service network (in accordance with the current dollar value of this in the AMP). The provision of new services, or the upgrading or extension of existing services may not necessarily be undertaken on an incremental basis (as new subdivisions and developments occur), but may be developed as part of a wider, comprehensive servicing plan developed by the Council for an area. The charging formula allows Council to recover the costs of providing future capacity as new users connect to it. DLP2

Regularly monitor and review Development Levies taken on subdivisions and developments to ensure that the current level of service available from a service network required to address the environmental effects of land use activities can be met. Explanation The amounts of Development Levies taken from new subdivisions and developments will be monitored and reviewed annually. The levies may be changed in accordance with any changes in the value of the asset in the Asset Management Plan, which is annually updated. Any adjustments to the levies will be included in the Council’s Annual Plan or otherwise publicly notified.

DLP3

Subdividers and Developers will be required to construct any Structure Utilities shown on an approved Structure Plan (See Appendix 15.1-1) for any Proposed New Development Area (defined in Section 2.4 – Appendix 2.4-1). The standard specified in the Engineering Code of Practice for Subdivision and Land Development (November 1997) or on any approved Structure Plan will generally be required to be met and the Utility will be required to be vested to Council.

Explanation In order to ensure the effective and efficient development of Proposed New Urban Development Areas the Council may identify Structure Utilities on a Structure Plan. These provide key sewer, water and stormwater services for development. Where the subdivision and/or development of any land over which a Structure Utility is necessary, the subdivider or developer will be required to construct that portion of the Utility included in land within the proposal, and to vest the Utility to Council. 69

Construction will generally be required to comply with the standards established in the Engineering Code of Practice for Subdivision and Land Development (November 1997), or to the standard specified in the Structure Plan. Where the requirements exceed those required to only service the proposed subdivision or development, the Council will contribute to the cost of the difference between constructing a Structure Utility to service only the development and constructing a Structure Utility to a greater capacity to benefit wider than the development. This difference in cost will be recovered from the Development Levy. METHODS These Objectives and Policies will be implemented through the following Methods: 

Hastings District Plan Urban Development and Strategic Urban Directions (Section 2.4): This Section identifies the Proposed New Urban Development Areas, which the Hastings District Council will progressively rezone to meet urban demand. Development Levies for each of those areas will be charged in accordance with the service network charges that they will connect to. Subdivision and Land Development (Section 15.1): This establishes the Objectives, Policies and Rules for subdivision and development in the District. The type and intensity of subdivision will directly impact on the demand for new or upgraded infrastructural services. Financial contributions from subdividers will be sought through the Development Levies.



Engineering Code of Practice for Subdivision and Land Development (November 1997) Provides guidelines for the design and construction of services to enable compliance with the rules of the District Plan.



Asset Management Plan This is an inventory of the service networks provided and maintained by the Council. The AMP is updated annually and is used for part of the calculation for determining Development Levies. This identifies Hastings District Council works that are planned for the District’s service networks, including the costs of the works, over the next 20 years.



Hastings District Council Annual Plan Identifies service works which are planned to be carried out over the next financial year in the Hastings District by the Council, including the amount of funding budgeted for these works.

ANTICIPATED OUTCOMES It is anticipated that the following specific outcomes will be achieved: 70



Fair and reasonable apportionment of costs between ratepayers, existing network users, subdividers and developers for services. Provision of a service infrastructure capable of addressing the environmental effects of land use activities in terms of water supply, effluent disposal and stormwater disposal. Ensure the public health and safety. Avoid inundation of land from stormwater runoff. Ensure sufficient water is available for fire fighting purposes.

   

15.3.7

RULES The following rules shall apply.

15.3.7.1

DEVELOPMENT LEVIES (SUBDIVISION) Development Levies shall be payable for every new site created in all zones (except the Arataki and Lyndhurst Proposed New Urban Development area) requiring new or upgraded levels of service from the Hastings District Council service network as follows: (a)i

New Residential Buildings The following Development Levy will be payable for every new site created intended to be used for a new single residential building connecting to a Hastings District Council service network.

The amount payable =

(a)ii

Number of new Residential Buildings connecting to the service network

Multiplied by x

The dollar value of the Resource Component cost for discharge/supply to/from the service network for a residential building (in accordance with the current AMP)

For all sites created by subdivision of land located in the General Residential Zone (Rochfort Road, Havelock North – LOT 11 DP 24058, LOT 2 DP 24598,) & any subsequent subdivisions thereof, an additional sewer levy will be payable, in addition to the Development Levy required in (a)i above. The amount payable, for every new site created and intended to be used for a new single residential building connecting to the Hastings District Council sewer network, will be $3976.29.

71

Note; The additional levy listed in 15.3.7.1 (a)ii above, is the maximum payable and should suitable, alternative, cheaper options be proposed, Council may at its discretion, approve any appropriate alternative and with it, any associated, reduced level of financial contribution required on the part of the subdivider/developer. 1.

Any Other Activity The following Development Levy will be payable for every new site created and intended to be used for any activity that requires a new connection or upgraded connection to a Hastings District Council service network.

The amount payable per connection.

=

Discharge per litre per second peak flow supply/discharge to a service network less any existing entitlements

Multiplied by X

The dollar value of the Resource Component cost for discharge/supply per litre per second peak flow for commercial and industrial users of a service network in accordance with the current AMP.

Note: The dollar value of the cost of supply/discharge in the Asset Management Plan varies depending upon the type of service ie. For potable water or fire fighting purposes). The supply/discharge per litre per second figure used in calculating the Development Levy in 15.3.7.1 (b) above shall be recorded at subdivision stage on a consent notice under Section 222 of the Act as the maximum entitlement for discharge/supply for that site. 15.3.7.2 DEVELOPMENT LEVIES (SECOND AND SUBSEQUENT RESIDENTIAL BUILDINGS, SECONDARY RESIDENTIAL BUILDINGS AND ANY OTHER DEVELOPMENTS The following Development Levies shall be payable in all zones by land use activities requiring new or upgraded connections to the Hastings District Council service network. 1.

New Residential Buildings and Secondary Residential Buildings The following Development Levy will be payable for every new second and subsequent residential building on a site connecting to a Hastings District Council service network. The amount payable =

Number of new Residential Buildings connecting to the service network

Multiplied by x

The dollar value of the Resource Component cost for discharge/supply to/from the service network for a residential building (in accordance with the current AMP)

72

1.

Any other Activity The following Development Levy will be payable for every activity that requires a new connection or upgraded connection to a Hastings District Council service network.

The amount payable per connection.

=

Supply/Discharge per litre per second peak/flow supply/discharge to a service network less any existing entitlements

Multiplied by X

The dollar value of the Resource Component cost for discharge/supply per litre per second peak flow for commercial and industrial users of a service network in accordance with the current AMP.

Existing Entitlement shall be deemed to be: For existing developments â&#x20AC;&#x201C; Any existing authorisations for discharge/supply to the service network, or:

The amount of entitlement shown on a consent notice â&#x20AC;&#x201C; which is the nominated maximum entitlement for discharge/supply of the site that was paid for under Rule 15.3.7.1 (b) above. 15.3.7.3 SUBDIVISION AND DEVELOPMENT IN ARATAKI AND LYNDHURST PROPOSED NEW URBAN DEVELOPMENT AREAS (as shown in Appendix 2.4-1) The following levies shall be payable for water supply, sewer and stormwater per new site created or development site in the Proposed New Urban Development Areas: 1.

Development Levy

Proposed New Urban Development Area

Development Levy

Arataki

$29,688+GST per hectare

Lyndhurst

$97,712+GST per hectare 73

1.

Drainage Levy Proposed New Urban Development Area

Development Levy on Subdivision

Arataki (Note 1)

$12,643+GST per hectare

Note (1)

Drainage levies will only be charged on sites zoned General Residential in the Arataki Proposed New Urban Development Area, and situated on the eastern side of the Karituwhenua Stream. Where a Development Levy or Drainage Levy has been paid on a site or a development site within the previous 10 years in accordance with rule 15.3.7.3(a) and 15.3.7.3(b), there shall be no requirement for levies to be paid.

PROVISION OF STRUCTURE UTILITIES Where the subdivision and/or development of any site over which a Structure Utility is required to be provided by any approved Structure Plan, the owners shall be required to fund, construct, and vest to the Hastings District Council the identified Structure Utility. Structure Utilities shall generally be constructed in accordance with the Engineering Code of Practice for Subdivision and Development (November 1997) and at a capacity, and in a location specified in any approved Structure Plan. Where the capacity of any Structure Utility exceeds that required to service the sites the Council shall contribute towards the cost of constructing the Utility to the standard specified in the Structure Plan. Any approved structure plans shall be included as an appendix to Section 15.1 of the District Plan. 15.3.7.5 DEVELOPMENT LEVIES- WHEN PAYABLE (a)

Development Levies shall, when they are required to be paid on the creation of a residential building being a Permitted Activity, be paid in cash prior to uplifting the building consent for the residential building(s).

(b)

Development Levies shall, when they are payable on a development requiring a resource consent (other than for a subdivision), be payable as and when required by any condition of that consent whether or not the activity is a Controlled, Discretionary, Restricted Discretionary or Non-Complying Activity.

(c)

Development Levies shall, when they are required to be paid on the creation of any site by subdivision, be paid prior to the issue of a Certificate under Section 224 of the Resource Management Act 1991. 74

SECTION 15.4

RO A DIN G C ON TR IB UT IO NS

INTRODUCTION Where new allotments, existing allotments or Proposed New Development Areas are developed for land use activities, traffic generated from the land use activities may give rise to demand for the provision of new roads or accessways, or the upgrading of existing roads which the development sites front on to, in order to connect the development sites to the District Roading Network. Traffic generated from the development of sites can also have a cumulative effect on the wider District Roading Network, which may require works to be carried out on it to ensure that it can accommodate the additional traffic. The Resource Management Act 1991 requires the Hastings District Council to manage the effects of subdivision and development in a manner which promotes the sustainable management of natural and physical resources. Among the powers conferred on the Council to manage effects, is the power to require financial contributions as a condition of subdivision consents, permitted activities or resource consents. Financial contributions may be in the form of money or land. This section of the District Plan provides Objectives, Policies and Rules for taking financial contributions for roading from subdividers and developers. This is to ensure that subdividers and developers pay their fair and reasonable share of the costs of providing new roads or accessways, or upgrading existing roads within the roading network, which are necessary to accommodate traffic generated from new land use activities, and to avoid, remedy or mitigate any adverse effects of traffic on the environment. RESOURCE MANAGEMENT ISSUES ď&#x201A;ˇ

New subdivisions, developments and rezonings can create demands for the provision of new roads or accessways, or the upgrading of existing roads. Where existing or new allotments are developed, it may be necessary to provide new roads or accessways within the sites in order to connect them to the existing roading network, and to provide safe and practicable access for vehicles, pedestrians and cyclists to and from each site. Where existing road(s), which the site(s) front on to, are not of a sufficient design or construction to accommodate the additional traffic which will be generated from development on the sites, it may be necessary to upgrade these road(s) to ensure that they can accommodate their new, more intensive level of use. Increases in traffic generated from the new developments will also have a cumulative effect on the wider District Roading Network, by either utilising existing, spare capacity in the network, or necessitating an increase in the level of capacity provided by the network to accommodate the additional traffic. It is important that the roading infrastructure is sustained at a level of service which provides safe, practicable and convenient travel for those using it, and which mitigates any potential adverse effects of the road and its use on adjoining land use activities.

ď&#x201A;ˇ

The costs of providing new roads and accessways, or upgrading existing roads, to meet the needs of new subdivisions, developments or rezonings, should not be borne by ratepayers.

75

Where new or upgraded roads are needed to meet demand from new subdivisions, developments or rezonings, the costs associated with providing these should not be borne by ratepayers. Instead, subdividers and developers should pay their fair and reasonable share of the costs. For example, where a road would only benefit land use activities within that specific development, it would be fair and reasonable to expect the developer to fund the total costs of constructing that road. Subdividers and developers, however, should not be required to contribute towards the costs of meeting existing shortfalls in the roading infrastructure, which would exist irrespective of any new development occurring. 

The Use and Development of Existing Unformed Legal Roads The District contains a large number of Existing Unformed Legal Roads. Increasing subdivision in rural areas of the Hastings District has generated demand for these to be formed. The Council needs to ensure that the developers who reap direct benefit from the utilisation of these roads contribute fairly and equitably to their construction.



The time of taking roading contributions. Taking roading contributions from subdividers or developers as early as possible (at the subdivision or resource consent stage) can have the following benefits: -it can reduce the rating burden on the community as the Council can recover the roading costs from subdividers or developers more quickly -it can allow the roading infrastructure to be put in place or upgraded in advance of the anticipated development occurring.

OBJECTIVES RCO1 To maintain the efficiency and effectiveness of the roading network, as new development creates additional demand and generates additional traffic onto the network. RCO2 To ensure that subdividers and developers pay their fair and reasonable share of the costs of providing roads or accessways, or upgrading existing roads, to meet demands from traffic generated from the development of subdivision sites and to avoid, remedy or mitigate adverse effects on the environment. RCO3 To encourage the efficient use of existing, unformed legal roads (‘paper roads’) in the Hastings District which are formed in response to demand from new subdivisions or developments.

76

POLICIES RCP1 Require subdividers and developers to pay the full costs of connecting each proposed new allotment or development site to the existing, formed legal roading network in the Hastings District. Explanation The subdivision standards for property access in the District Plan require each new allotment or development to be connected to an existing, formed legal road which is part of the District Roading Network (defined in Section 2.5 of the District Plan on Transportation). This may necessitate the construction of new roads within the site. Whether the roads within the site are retained as private roads, or are required to be designed and constructed to Local Road standards to be vested in the Council, the Council will require subdividers or developers to pay the full costs of providing these roads. RCP2

Discount the cost of forming unformed legal roads where subdividers and developers utilise them in order to connect the new allotments or the development sites to the existing, formed legal roading network.

Explanation Where a subdivision or development utilises an unformed legal road (or ‘paper road’) to connect each new site or development to the existing formed legal roading network, the Council will provide a discount to subdividers or developers on the full cost of forming the road, with the amount of discount being relative to the number of new sites or developments which will utilise the formed road (i.e. the greater the number of sites or area of development which utilise the formed road, the greater the discount given to them). The maximum amount of discount that will be given to any subdivision or development will be 50%. This policy is intended to encourage the efficient use of existing, unformed legal roads in the District which are formed by the Council in response to demand from new subdivisions or Papakainga developments, by rewarding subdividers or developers who make more intensive use of them. RCP3 Subdividers and Developers will be generally required to construct any Structure Road shown on an approved Structure Plan (sh own as an Appendix to Section 15.1) for any Proposed New Urban Development Area (defined in Section 2.4 – Appendix 2.4-1) to the standard specified in the Engineering Code of Practice for subdivision and Land Development (November 1997) or on any approved Structure Plan and vest the road to Council. Explanation

77

In order to ensure the effective and efficient development of Proposed New Urban Development Areas the Council may identify Structure Roads on a Structure Plan. These provide key roading and service infrastructure corridors for development. Where the subdivision and/or development of any land over which a structure road is identified the subdivider or developer, after consultation with Council, as to the final location of the road, will be required to construct that portion of the route included in land within the proposal, and vest the road to Council. Construction will generally be required to comply with the standards established in the Engineering Code of Practice for Subdivision and Land Development (November 1997), or to the standard specified in the Structure Plan. Where the requirements exceed these for a Local Road as defined in the District Roading Hierarchy, the cost of the difference between constructing a local road and constructing a road to a standard higher than a local road will be met by the Council through the Development Area Roading Levy. RCP4 Subdividers and Developers in Proposed New Urban Development Areas will be required to pay a Development Area Roading Levy to contribute towards the cost of extending and/or upgrading the District Roading Network within and beyond the Proposed New Urban Development Area (Appendix 2.4-1) that enables the Development of the Proposed New Urban Development Area. Explanation Traffic generation associated with the development of any Proposed New Urban Development Area may cause additional pressures on the District’s Roading Network beyond the immediate area. Where these are proposed roads, or proposed road widenings, intersection upgrades or designated roads identified to manage the traffic increase directly associated with and facilitating a Proposed New Urban Development Area, the Council shall charge a Development Area Roading Levy to subdividers and developers within the Proposed New Urban Development Area. The cost of any additional work to the wider network will be apportioned between the benefits, derived by the Proposed New Urban Development Area, and by the wider community. In addition the same Structure Roads may be required to be constructed at standards greater than that required to service their immediate roading requirements. The Council will contribute to the cost of providing this additional capacity and will recover these costs across the wider Proposed New Urban Development Area. RCP5 Where new road reserves or road reserve carriageway amenities are needed to be provided or upgraded to accommodate new subdivisions or developments, subdividers or developers will be required to meet these costs. Explanation Existing, formed legal roads, which a subdivision site or development site can be connected to, may need to have the road or any associated carriageway criteria upgraded to ensure that it will have sufficient capacity to accommodate the additional traffic expected to be generated by land use activities on the 78

site. The Council will take a contribution towards the upgrading of existing roads if deemed necessary. The fee shall be calculated on the basis of the length of road having adjacent frontage to the site. This shall be equal to the cost of upgrading the road to the required standard as prescribed in the Engineering Code of Practice for Subdivision and Land Development (November 1997). Where the existing public road is not required to be upgraded to accommodate the subdivision or development, or where the road has already been identified in the Council’s Five Year Roading Works Programme as requiring upgrading works due to existing shortfalls in the traffic capacity of the road and road carriageway criteria (and the planned upgrade would ensure that the road would have sufficient traffic capacity to accommodate the new development), then no Off-Site Roading Fee will be taken. This will not however, exclude the need to pay a District Roading Fee, as explained in RCP6 below. RCP6 Increases in traffic generated from the development of land for developments that can have a cumulative effect on the wider District Roading Network will be addressed by requiring roading fees. Explanation In the future, additional residential development will either utilise existing spare capacity in the network, necessitating an increase in the level of capacity provided by the network, or require changes in the design or construction of roads in the infrastructure, to accommodate the additional traffic. It is important that the roading infrastructure is sustained at a level of service which provides safe, practicable and convenient travel for those using it, and which mitigates any potential adverse effects of the road and its utilisation on adjoining land use activities. Sustaining the District-Wide Roading Network can create additional costs for the community. A contribution, in the form of a District Roading Fee, will therefore be taken as a condition of subdivision consents in all zones, and as a condition of Permitted Activities or Resource Consents for every second and subsequent Residential Building (excluding Secondary Residential Buildings) on any site in the District, in order to ensure that the costs of sustaining the roading asset, to accommodate the effects of more intensive traffic use generated from new developments are contributed to by those new developments in a fair and reasonable way. This will ensure that the community does not carry any additional roading costs incurred by new developments. The District Roading Fee will be payable per new allotment created and calculated using the Council’s Asset Management Plan which identifies roading works and their costs for sustaining the District Roading Network over the next 20 years. The fee will be taken as a ‘one-off’ flat fee contribution from subdividers and developers, which is their fair and reasonable share of the average yearly costs of mitigating the potential adverse effects of the increased traffic on the roading network. Landowners or occupiers will then continue to contribute annually to the maintenance of the District Roading Network through their rates. The amount of District Roading Fees taken will vary according to the area of the District (Urban, Plains or Rural) in which the subdivision or development site is located.

79

RCP7 Regularly monitor and review the Development Area Roading Levy and District Roading Fee to ensure that they are relevant to the actual costs of providing and maintaining an effective and efficient District Roading Network. Explanation The amount of Development Area Roading Levy and District Roading Fees taken from new subdivisions and developments will be monitored and reviewed regularly to ensure that they are relevant to the actual costs of carrying out roading works which are necessary to ensure that a District Roading Network is provided which can accommodate additional traffic that is expected to be generated by new development. The Fees may be changed in accordance with any changes in the actual costs for providing an adequate District Roading Network and any changes in the Cost Construction Index. Any necessary adjustments to the amounts payable will be included in the Council’s Annual Plan. A complete review of the fees will be undertaken every three years in accordance with the review of the Council’s Asset Management Plan. Any amendments to the basis on which the fees are taken will be introduced by way of a formal change to the District Plan. METHODS These Objectives and Policies will be implemented through the following methods: 

Hastings District Plan Subdivision and Land Development (Section 15.1): This section establishes the Objectives, Policies and Rules that control the subdivision and development of land. The requirements for Roading Contributions are exercised at the time of subdivision.



Engineering Code of Practice for Subdivision and Land Development (November 1997) Forms part of the District Plan and establishes Performance Standards for the design and construction of roads and carriageway criteria to enable compliance with the Objectives and Policies of the District Plan.



Hastings District Roading Hierarchy Classifies roads within the Hastings District Roading Network depending on their function, location and traffic carrying capacity. The hierarchy adopts a four-level classification: Regional Arterials, District Arterials, Collector Routes, and Local Roads. Every new road constructed will also be identified against the Roading Hierarchy (See Section 2.5 and Maps 92 and 93) and will need to be designed and constructed to the appropriate standard established in the Council’s Engineering Code of Practice for Subdivision and Land Development.



Hastings District Roading Strategy 80

Identifies existing roads within the Hastings District Roading Network, and any intended changes to their status under the District Roading Hierarchy over the next 20 years. The Roading Strategy also identifies any new roads that are planned for construction over the next 20 years and their intended status under the Roading Hierarchy. 

Structure Plan Proposed New Urban Development Areas (Section 2.4) which are rezoned residential may have Structure Plans developed for them. These will identify the preferred location and outcomes for key infrastructural elements occurring in them. Subdividers and Developers will need to have regard to these, and their outcome in the design and placement of roads within a Proposed New Urban Development Area, and shall be required to construct these to appropriate standards. Any approved Structure Plans will be added as Appendices to Section 15.1.



Asset Management Plan for Roading This identifies Hastings District Council works that are planned for the District Roading Network, including the costs of the works, over the next 20 years.



Five Year Roading Works Programme This identifies Hastings District Council roading works that are planned for the next five years, including the cost of the works. This programme is updated by the Council annually through the Annual Planning Process.



Hastings District Council Annual Plan Identifies roading works which are planned to be carried out over the next financial year in the Hastings District by the Council, including the amount of funding that has been budgeted for these works.

ANTICIPATED OUTCOMES It is anticipated that the following specific outcomes will be achieved: 

Fair and reasonable apportionment of costs between ratepayers, subdividers and developers for roading.



Provision of a District Roading Network which is capable of meeting demand for roading from traffic generated from new subdivisions and developments in the District.

81

ď&#x201A;ˇ

15.4.7

Provision of a roading infrastructure which is sustained at a level of service which provides safe, practicable and convenient travel for vehicles using it, and which mitigates any potential adverse effects of the road and its utilisation on adjoining land use activities.

RULES The following rules shall apply.

15.4.7.1 ON-SITE ROADING (a)

Construction Of Private Accessways Or Local Public Roads Within Subdivision Or Development Sites

At the creation of a new site by subdivision or where development is undertaken on any site the owner shall pay the full costs of constructing any private accessways or Local Public Roads within the site which are necessary to comply with the standards for Property Access in the District Plan. (b)

Construction Of Vehicle Crossings At the creation of a new site by subdivision or where development is undertaken on an existing site the owner shall be required to fund the construction of any vehicle crossings, from the edge of an existing or proposed public road to the boundary of every site, which are necessary to comply with the standards for Property Access of the District Plan.

(c)

Construction Of Structure Roads Within Subdivision Or Development Sites Where a subdivision or development site includes land which is identified as being required for a Structure Road identified in an approved Structure Plan (as an Appendix to Section 15.1) the owner shall be required to fund, construct and vest the road to the Hastings District Council. A Structure Road shall generally be constructed to comply with the standard established for local roads in the Engineering Code of Practice for Subdivision and Land Development (November 1997) or to the standard specified in the Structure Plan. Where any Structure Road is required to be constructed to standards greater than that for a Local Road in the Engineering Code of Practice for Subdivision and Development (November 1997) the Council shall contribute to the additional cost from the Development Area Roading Levy.

UPGRADING OF EXISTING ROADS 82

When a new site is created by subdivision or where development is undertaken on any site that has frontage to an existing road (excluding legal unformed roads) the owner shall be required to meet the full cost of upgrading the road with frontage to the subdivision site or development to the appropriate carriageway criteria, as defined in the Engineering Code of Practice and for Subdivision and Land Development (November 1997) for the road (as defined by the roading Hierarchy in Section 2.5 of the District Plan). The full costs for upgrading that part of the roads with frontage to the site to the required standard shall be calculated and charged per lineal metre of road frontage of the site. Where an existing public road does not need to be upgraded to accommodate traffic expected to be generated from a development, or where the road has already been identified in the Councilâ&#x20AC;&#x2122;s Five Year Roading Works Programme as requiring upgrading works, due to existing shortfalls in the traffic capacity of the road (and the planned upgrade would ensure that the road would have sufficient traffic capacity to accommodate the new development), then no contribution to the upgrading will be required.

UTILISATION OF EXISTING UNFORMED LEGAL ROADS Where subdividers or Papakainga developers utilise an existing, unformed legal road (paper road) to connect each new allotment or Papakainga development site to the existing, formed legal roading network (in accordance with Rules 15.1.9.5 and 13.1.7.6.3 on Property Access), the subdivider or developer shall pay the following contributions towards the costs of forming the road. Number of allotments (excluding balance allotments) or Papakainga Household Units which will have frontage on to the new road

% Discount

% Costs Subdivider or Developer are to Pay

1-5

5%

95%

6-10

10%

90%

11-20

20%

80%

21-30

30%

70%

Over 30

50%

50%

83

DEVELOPMENT AREA ROADING LEVY The following Development Area Roading Levy shall be payable on the creation of a new site or development site for upgrading of existing roads and the provision of new roads associated with and facilitating the Proposed New Urban Development Areas (identified in Appendix 2.4-1). Proposed New Urban Development Area Arataki

Development Area Roading Levy on Subdivision $14,812 plus GST per hectare

Lyndhurst

$30,203+GST per hectare

Where a Development Area Roading Levy has been paid on an existing site or development within the previous 10 years in accordance with this rule the value of that fee shall be credited against any Development Area Roading Levy required to be paid per site or development site pursuant to this rule.

15.4.7.5DISTRICT ROADING FEES 1.

Subdivision (All Zones) The following District Roading Fees shall be paid for every new site created for which separate certificates of title may be issued. ZONES OF THE DISTRICT

DISTRICT ROADING FEE ($)

General Residential Zones of Hastings, Havelock North and Flaxmere; Commercial Zones; and Industrial 1,2 (excluding Whakatu), Deferred Industrial 2, 3 and 5 Zones.

$77 plus GST per new allotment

Plains Zone; Deferred General Residential Zone; Plains Residential Zone; Rural-Residential Zone; Te Mata and Tuki Tuki Special Character Zones; Coastal Residential Zones of Haumoana and Te Awanga; General Residential Zone of Clive and Whakatu; Industrial 2 Zone of Whakatu and Industrial 6 Zone.

$266 plus GST per new allotment

84

ZONES OF THE DISTRICT

DISTRICT ROADING FEE ($)

Rural Zone; Coastal Residential Zones of Waimarama, Whirinaki and Waipatiki; Coastal Residential zones of Tangoio and Ocean Beach (if and when zoned) and Industrial 4 Zone.

$399 plus GST per new allotment

1.

Residential And Papakainga Housing Developments In The General Residential, Plains Residential, Coastal Residential, Plains, Rural, Rural-Residential and Te Mata and Tuki Tuki Special Character Zones

The following District Roading Fees shall be payable for every second and subsequent residential building (including Papakainga residential building, but excluding Secondary Residential Building), created on an allotment in the following zones: ZONES OF THE DISTRICT

DISTRICT ROADING FEE ($)

General Residential Zones of Hastings, Havelock North and Flaxmere; Commercial Zones

$77 plus GST per residential building

Plains Zone; Deferred Residential Zone; Plains Residential Zone; Rural-Residential Zone; Te Mata and Tuki Tuki Special Character Zones; Coastal Residential Zones of Haumoana and Te Awanga; General Residential Zone of Clive and Whakatu.

$266 plus GST per residential building

Rural Zone; Coastal Residential Zones of Waimarama, Whirinaki and Waipatiki, and Coastal Residential zones of Tangoio and Ocean Beach (if and when zoned).

$399 plus GST per residential building

15.4.7.6 ROADING CONTRIBUTIONS â&#x20AC;&#x201C; WHEN PAYABLE (a)

These fees shall, when they are required to be paid on the creation of a residential building and Secondary Residential Building being a Permitted Activity, be paid in cash prior to uplifting the Building Consent for the residential building(s).

(b)

These fees shall, when they are payable on a development requiring a Resource Consent (other than for a subdivision), be payable as and when required by any condition of that consent, whether or not the activity is a Controlled, Restricted Discretionary, Discretionary or Non-Complying Activity.

1.

These fees shall, when they are required to be paid on the creation of a site by subdivision, be paid prior to the issue of a Certificate under Section 224 of the Resource Management Act 1991. 85

Appendix E Schedule of Past Projects with Residual Capacity The following is a summary of the â&#x20AC;&#x2DC;Net Growthâ&#x20AC;&#x2122; component of selected past projects with residual growth capacity that have been included in the calculation of the Development Contribution. Growth Share %

Activity Total Cap Expenditure $

Activity Growth Value $

2000/01 to 2006/07

2007/08

2008/09

Activity

Project

Community facilities

Playground Development

66%

245936

162718

20000

37500

Community facilities

Toilet Development

25%

106372 $ 352,308

26593 $ 189,311

0 $ 20,000

0 $ 37,500

33%

3291872

1101074

526224

574850

2009/10

2010/11

2011/12

0

5373

20345

79500

0

26593 $ 31,966

0 $ 20,345

0 $ 79,500

0

0

0

$

-

Parks and Reserves

District Wide Reserve Development

Parks and Reserves

Arataki Development Project

43%

1059205

458989

458989

0

0

0

0

0

Parks and Reserves

Land Development Urban & Rural

100%

171849

171849

0

0

71253

83694

0

16902

Parks and Reserves

District Sportspark Reserve

56%

2703842

1501098

0

779374

721724

0

0

0

Parks and Reserves

Land Acquisition Urban & Rural

100%

3190009 $ 10,416,777

3190009 $ 6,423,019

795210 $ 1,780,423

426720 $ 1,780,944

194819 $ 987,796

0 $ 83,694

0

1773260 $ 1,790,162

0

$

-

Roading

Lyndhurst & Frimley Development Areas

81%

2031985

1692402

199899

790177

450347

13440

2539

236000

Roading

Arataki Development Project

100%

1519159

1519159

1313167

0

0

0

492

205500

Roading

Goddard Ln - Full length

50%

36131

18066

0

0

18066

0

0

0

Roading

Goddard Ln - Full length

95%

145719

138434

33697

104737

0

0

0

0

Roading

Goddard Ln - Subdivision Support

100%

64014

64014

0

0

64014

0

0

0

Roading

Arataki Subdivision

59%

66212

39145

4083

35062

0

0

0

0

Roading

Nottingley - Omahu to Lyndhurst

46%

690494

316682

66427

250255

0

0

Roading

Omahu Road

8%

2724526 $ 7,278,240

230258 $ 4,018,160

0 $ 1,617,273

0 $ 1,180,231

230258 $ 762,685

0 $ 13,440

0 $ 3,031

0 $ 441,500

86

Growth Share %

Activity Total Cap Expenditure $

Activity Growth Value $

2000/01 to 2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

Stormwater

Infill Growth New Work

8%

2799200

223936

0

0

0

119045

47819

57072

Stormwater

Arataki Development Project

44%

2380799

1044365

1044365

0

0

0

0

0

Stormwater

Arataki Development Including Arataki Rd SW Extension

100%

506058

506058

0

0

100289

245126

1643

159000

Stormwater

Lyndhurst Development Stage I

84%

1668398

1401353

0

0

0

21233

0

1380120

Stormwater

Lyndhurst Development Stage 2

100%

407194

407194

0

0

343213

15601

4380

44000

Stormwater

Dam Break Analysis & Contingency Plan

33%

109917

36712

1336

28496

6880

0

0

0

Stormwater

Stormwater Resource Consent Renewals

8%

145423

12198

93

820

11285

0

0

0

Stormwater

Orbell Drain - NAR to Williams St

72%

51181

36837

3823

0

33014

0

0

0

Stormwater

Pipe Orbell Drain - Watt Blk/NAR to Richmond

74%

120800

89914

595

0

89319

0

0

0

Stormwater

Albert St - Hastings to Riverslea

6%

69440

3916

0

0

3916

0

0

0

Stormwater

Belmont St - Extension

100%

13879

13879

0

0

13879

0

0

0

Stormwater

Duke St - Rangiora to Tomoana

7%

40583

2872

0

2872

0

0

0

0

Stormwater

Lyndhurst & Frimley Development Areas

96%

2173159

2078193

1344504

593361

140328

0

0

0

100%

1454283

1454283

0

102748

52381

1045371

253783

0

Stormwater

Mahora Drain - Widening drain Nelson St N - St Aubyn St intersection

6%

99928

6353

0

4725

1628

0

0

0

Stormwater

Omahu Rd - Hapuka to Karaitiana

20%

234160

46587

0

2360

44227

0

0

0

Stormwater

Richmond Rd - Orbell drain to Mallory Drive

100%

317970

317970

0

296677

21293

0

0

0

6%

120900

7686

0

0

7686

0

0

0

5%

54089

2686

0

248

2438

0

0

0

Stormwater

Stormwater Stormwater

Roberts St - 607 to Kitchener Rd Townshend St - Between St Leonards

Stormwater

Cobham/Bledisloe/Wall -Oliphant

45%

585434

262767

23059

239708

0

0

0

0

Stormwater

Goddard Lane

100%

23378 $ 13,376,173

23378 $ 7,979,137

0 $ 2,417,775

0 $ 1,272,015

20452 $ 892,228

2926 $ 1,449,302

0 $ 307,625

0 $ 1,640,192

87

Growth Share %

Activity Total Cap Expenditure $

Activity Growth Value $

2000/01 to 2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

Wastewater

Infill Growth New Work

8%

432175

34574

0

0

0

1293

7726

25555

Wastewater

Infill Growth Renewals

8%

1125975

90078

0

0

0

15232

31198

43648

Wastewater

Clive Projects

100%

100000

100000

0

0

0

0

0

100000

Wastewater

Arataki Development Project

100%

430008

430008

430008

0

0

0

0

0

Wastewater

Arataki Development

100%

187445

187445

0

0

0

4445

0

183000

Wastewater

Wastewater Treatment Plant

20%

2151433

432402

0

0

0

392238

40164

0

70%

2572657

1800860

0

0

0

1111039

689821

0

98%

1455171

1420597

0

58111

1362486

0

0

0

88%

236682

208561

33455

175106

0

0

0

0

100%

485387

485387

0

0

485387

0

0

0

8%

3329818

266385

0

0

20049

85360

40000

120976

2384

0

0

0

Wastewater

Middle Road Sewer Main and Pumpstation Middle Rd - Mangarau interceptor to Here Here

Wastewater

Middle Rd - Porter Dr to Mangarau interceptor

Wastewater

Wastewater

Mangarau interceptor - Middle to Tanner Frimley Interceptor & Trunk Sewers

Wastewater

Goddard Ln - Full length

97%

240988

231885

52583

176918

Wastewater

Lyndhurst & Frimley Development Areas

80%

1690061

1352048

1259794

92254

0

0

0

0

Wastewater

Milliscreen Revamp & Overhaul

35%

689672

241739

200214

38198

3327

0

0

0

Wastewater

VSD and pump recondition

31%

180031

56357

41331

0

15026

0

0

0

Wastewater

Ventilation - Channels, Wet Well

35%

407189

142780

16542

78059

48179

0

0

0

Wastewater

WWTP Domestic and TW

20%

26751300

5372142

279460

1889695

3202987

0

0

0

Wastewater

Grove Rd - Amanda to Karamu

5%

382647

15573

0

504

15069

0

0

0

Wastewater

Misc Drain / Creek x-ing

7%

257866

17920

6274

1917

9729

0

0

0

Wastewater

WWTP Resource Consent

8%

650000 $ 43,756,505

52000 $ 12,938,741

0 $ 2,319,661

0 $ 2,510,762

0 $ 5,164,623

0 $ 1,609,607

24000 $ 832,909

28000 $ 501,179

Wastewater

88

Growth Share %

Activity Total Cap Expenditure $

Activity Growth Value $

2000/01 to 2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

Water

Arataki Development Project

100%

1231169

1231169

1231169

0

0

0

0

0

Water

Arataki Development - Durham Drive & Link Rd

40%

322257

131469

62873

59830

8766

0

0

0

Water

Arataki Development Stage 2

100%

154804

154804

0

0

0

0

0

154804

Water

100%

1111315

1111315

0

0

0

78410

17905

1015000

Water

Havelock Hills Brookvale Bores Source investigations

8%

210066

16159

498

1507

14154

0

0

0

Water

Havelock Hills H.L Zone

79%

557807

440047

211918

340

227789

0

0

0

Water

Lyndhurst Development Stage 1

100%

200000

200000

0

0

0

6250

0

193750

Water

Omahu Road

65%

12624

8206

0

0

0

6041

2165

0

Water

Infill Growth Renewals

8%

1358493

108679

0

0

0

18700

56997

32982

Water

Booster Ps for Upper Durham & Burdury Ridge

Water

79%

1460

1152

1152

0

0

0

0

0

100%

50514

50514

0

0

50514

0

0

0

8%

261748

22137

5421

16716

0

0

0

0

Water

Goddard Lane Pump Stations - Flow Monitoring & Flow & Pressure Monitoring Equipment Lyndhurst / Frimley Development Areas

79%

1375531

1086825

739994

328092

18739

0

0

0

Water

Omahu Rd - Ring main increase capacity

30%

89003

26505

0

19133

7372

0

0

0

Water

Omahu stage I

100%

563614

563614

0

0

563614

0

0

0

Water

Source augmentations (1 & 2) Water Softening Plant & Water Softner

57%

53844

30493

29236

1257

0

0

0

0

25%

33946

8341

1616

1848

4877

0

0

0

23%

138035

31455

1867

29588

0

0

0

0

Water

Storage augmentation (1 & 2) Mains Upgrades & Treatment Upgrades

7%

190000

13869

3355

5033

5481

0

0

0

Water

Waipuka Extension

100%

80000

80000

80000

0

0

0

0

0

Water

Whakatu Infill Growth Renewals

8%

45000

3600

0

0

0

0

0

3600

8%

45000

3600

0

0

0

0

0

3600

8%

75754

6061

0

0

0

494

447

5120

Water

Water Water

Water Water

Haumona / Te Awanga Infill Growth Renewals Waimarama Infill Growth Renewals

89

Growth Share %

Activity Total Cap Expenditure $

Activity Growth Value $

2000/01 to 2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

Water

Clive New Source

42%

10780

4521

0

0

0

0

4521

0

Water

Whakatu New Source

26%

75000

19130

0

0

0

0

0

19130

Water

Haumoana New Source

22%

16392

3685

0

0

0

3685

0

0

Water

New Source

50%

68461

34230

0

0

0

32769

1461

0

Water

Whiranaki & New Source

100%

87015

87015

0

0

0

30596

34419

22000

Water

Waimarama New Source

100%

206000

206000

0

0

0

0

0

206000

$ 8,625,632

$ 5,684,595

$ 2,369,099

$ 463,344

$ 901,306

$ 176,945

$ 117,915

$ 1,655,986

$ 83,805,635

$ 37,232,963

$ 10,524,231

$ 7,244,796

$ 8,708,638

$ 3,364,954

$ 1,281,825

$ 6,108,519

Total

Notes:    

All dollar amounts are in actual dollars expended exclusive of GST. The growth portion of capital expenditure to support the growth population from 1 July 2007 will be funded from development contributions. From 1 July 2007 no part of this portion will be funded from financial contributions. Backlog and renewal portions of capital expenditure budgets will not be funded from development contributions. The detailed calculations and documentation supporting the above projects are available for examination at the offices of Hastings District Council

90

Appendix F Capital Expenditure Related to Growth The following is a summary of the â&#x20AC;&#x2DC;Net Growthâ&#x20AC;&#x2122; component of projects included in the LTCP and planned for implementation in the period 2012/13 to 2021/22 that has been included in the calculation of the Development Contribution.

Programme

% Growth Component

Total Cost

Library Development

4%

3,585,731

Lyndhurst Playground

100%

Community Facilities

Arataki Playground Development

Community Facilities

Toilet Programme

Activity

Community Facilities Community Facilities

Activity

Programme

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

147,015

14396

14455

14514

14593

14672

14751

14830

14889

14928

14987

85,000

85,000

0

0

0

0

0

0

85000

0

0

0

100%

104,000

104,000

0

0

104000

0

0

0

0

0

0

0

100%

150,000

150,000

0

0

0

150000

0

0

0

0

0

0

3,924,731

486,015

% Growth Component

Total Cost

Growth Cost

14,396

14,455

118,514

164,593

14,672

14,751

99,830

14,889

14,928

14,987

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

78,000

0

0

0

0

0

0

78000

0

0

0

52,000

52,000

52000

0

0

0

0

0

0

0

0

0

100%

400,000

400,000

400000

0

0

0

0

0

0

0

0

0

100%

20,000

20,000

20000

0

0

0

0

0

0

0

0

0

100%

851,000

851,000

851000

0

0

0

0

0

0

0

0

0

100%

300,000

300,000

0

0

0

0

150000

0

150000

0

0

0

1,701,000

1,701,000

Parks; Reserves

Lyndhurst Reserve Development

100%

78,000

Parks; Reserves Parks; Reserves

Arataki Reserve Development

100%

Northwood Reserve

Parks; Reserves Parks; Reserves

Northwood Reserve Development Arataki Development-Rural Reserve Purchase

Parks; Reserves

Lyndhurst Stage 2 Reserve Purchase

1,323,000

-

-

-

150,000

-

228,000

-

-

-

91

Programme

% Growth Component

Roading

Arataki Development

100%

Roading

Irongate Industrial Development Community Share

Activity

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

1,176,000

1,176,000

90000

588000

498000

0

0

0

0

0

0

0

100%

200,170

200,170

100085

100085

0

0

0

0

0

0

0

0

100%

190,000

190,000

95000

95000

0

0

0

0

0

0

0

0

100%

954,000

954,000

0

0

85000

869000

0

0

0

0

0

0

76500

76500

76500

76500

76500

76500

76500

76500

76500

76500

Total Cost

Roading

Lyndhurst Development Stage I Lyndhurst Development Stage II

Roading

Subdivision Support Development

100%

765,000

765,000

Roading

Kaiapo Road

100%

1,050,000

1,050,000

0

0

0

0

0

0

0

1050000

0

0

Roading

Lyndhurst Extension Whakatu Outlet (Arterial) Havelock North Corridor

100%

835,000

835,000

0

0

0

0

0

0

0

0

835000

0

10%

11,211,000

1,049,350

18720

134129

115409

551117

229975

0

0

0

0

0

10%

4,500,000

438,750

0

0

219375

219375

0

0

0

0

0

0

20,881,170

6,658,270

993,714

994,284

1,715,992

306,475

1,126,500

911,500

76,500

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

Roading

Roading Roading

Activity

Stormwater

76,500

76,500

Programme

% Growth Component

Arataki Development

100%

659,000

659,000

50000

0

250000

0

0

0

0

359000

0

0

100%

106,140

106,140

53070

53070

0

0

0

0

0

0

0

0

100%

3,608,000

3,608,000

0

0

125000

1294000

1211000

714000

264000

0

0

0

100%

592,000

592,000

0

0

0

0

0

0

0

427000

165000

0

Stormwater

Irongate Industrial Development Community Share Lyndhurst Development Stage II

Stormwater

Kaiapo Road

Stormwater

380,305

92

Programme

% Growth Component

Stormwater

Duart Road Network Extension

100%

35,000

Stormwater

Northwood Reserve Orbell Drain - NAR to Williams Street

50%

Activity

Programme

% Growth Component

Wastewater

Arataki Development

100%

Wastewater

Frimley Interceptor Havelock Hills Kopanga - Havelock Hills

Activity

Wastewater

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

35,000

0

0

0

0

0

0

0

0

0

35000

465,000

232,500

0

232500

0

0

0

0

0

0

0

0

5,465,140

5,232,640

285,570

375,000

1,294,000

1,211,000

714,000

264,000

786,000

165,000

35,000

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

103,070

31,888

31,888

0

0

31888

0

0

0

0

0

0

0

3,426,000

283,458

0

0

23636

117604

75797

66421

0

0

0

0

100%

200,000

200,000

0

0

0

0

0

0

200000

0

0

0

100%

197,870

197,870

98935

98935

0

0

0

0

0

0

0

0

100%

403,000

403,000

4000

0

0

174000

225000

0

0

0

0

0

8%

Wastewater

Irongate Industrial Development Community Share Lyndhurst Development Stage II

Wastewater

Kaiapo Road

100%

175,000

175,000

0

0

0

0

0

0

0

175000

0

0

Wastewater

Network Extension Norton Road to Havelock Road

100%

210,000

210,000

20000

0

0

190000

0

0

0

0

0

0

4,643,758

1,501,216

200,000

175,000

Wastewater

122,935

98,935

55,524

481,604

300,797

66,421

-

-

93

Activity

Programme

Water

Arataki Development Haumoana Te Awanga New Source

Water

Havelock Hills

Water

% Growth Component

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

100%

58,341

58,341

58341

0

0

0

0

0

0

0

0

0

22%

1,000,000

224,840

67452

44968

0

112420

0

0

0

0

0

0

100%

1,235,000

1,235,000

85000

0

520000

0

0

0

0

630000

0

0

100%

338,680

338,680

169340

169340

0

0

0

0

0

0

0

0

Water

Irongate Industrial Development Community Share Lyndhurst Development Stage II

100%

275,000

275,000

0

0

0

232000

43000

0

0

0

0

0

Water

Lyndhurst Percival to Nottingley

80%

180,000

144,000

144000

0

0

0

0

0

0

0

0

0

Water

New Source

50%

2,950,000

1,475,000

25000

25000

0

0

300000

250000

300000

200000

125000

250000

65%

900,000

585,000

585000

0

0

0

0

0

0

0

0

0

100%

5,000

5,000

5000

0

0

0

0

0

0

0

0

0

100%

250,000

250,000

0

0

0

0

0

0

0

250000

0

0

23%

380,000

85,439

0

0

0

0

0

0

0

85439

0

0

16%

1,483,000

242,686

81325

27817

27817

53344

6545

32746

3273

3273

3273

3273

9,055,021

4,918,986

1,220,458

267,125

547,817

397,764

349,545

282,746

303,273

1,168,712

128,273

253,273

45,670,820

20,498,127

3,164,164

1,659,799

2,091,139

4,053,953

2,332,489

1,154,418

1,171,603

3,271,101

1,219,701

379,760

Water

Water Water Water

Water Water

Omahu RoadIncrease Capacity Whiranaki New Source Kaiapo Road East Road Clifton to Parkhill Water Supply Demand Management

Total

94

% Growth Component

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

Roading

Omahu Industrial Development

100%

2,958,000

2,958,000

0

222000

1368000

1368000

0

0

0

0

0

0

Stormwater

Omahu Industrial Development

100%

1,382,000

1,382,000

0

0

691000

691000

0

0

0

0

0

0

Wastewater

Omahu Industrial Development

100%

1,334,000

1,334,000

0

0

667000

667000

0

0

0

0

0

0

Water

Omahu Industrial Development

100%

1,130,000

1,130,000

0

0

565000

565000

0

0

0

0

0

0

6,804,000

6,804,000

0

222000

3291000

3291000

0

0

0

0

0

0

% Growth Component

Total Cost

Growth Cost

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

Roading

Irongate Industrial Development

100%

1,367,830

1,367,830

625415

625415

0

0

117000

0

0

0

0

0

Stormwater

Irongate Industrial Development

100%

725,264

725,264

362632

362632

0

0

0

0

0

0

0

0

Wastewater

Irongate Industrial Development

100%

1,352,128

1,352,128

676064

676064

0

0

0

0

0

0

0

0

Water

Irongate Industrial Development

100%

2,011,720

2,011,720

898360

898360

0

0

0

215000

0

0

0

0

5,456,942

5,456,942

2562471

2562471

0

0

117000

215000

0

0

0

0

Activity

Programme

Total

Activity

Programme

Total

Notes: 

All dollar amounts are in actual dollars expended exclusive of GST.



The growth portion of capital expenditure to support the growth population from 1 July 2007 will be funded from development contributions. From 1 July 2007 no part of this portion will be funded from financial contributions.



Backlog and renewal portions of capital expenditure budgets will not be funded from development contributions.



The detailed calculations and documentation supporting the above projects are available for examination at the offices of Hastings District Council. 95

Appendix G Capital Expenditure Related to Growth Summary of estimated capital expenditure and funding for growth 2012/13 - 2021/22 $ Total Cost all projects with a growth component (2000-2021)

$ Total Growth Cost of all projects with a growth component in the LTP (2012-2021)

$ Total to be collected over the next 10 years from development contributions

$ Total to be collected over next 3 years from Financial Contributions

$ Total funded over the next 10 years from other sources including loans

Activity

Catchment or Location

Community Facilities

District Wide

$

4,277,039

$

3,924,731

$

436,947

$

-

$

3,487,784

Parks & Reserves

All Catchments

$

12,117,777

$

1,701,000

$

5,535,748

$

106,000

-$

3,834,748

Roading

All Catchments

$

32,485,240

$

25,207,000

$

10,595,041

$

-

$

14,611,959

Stormwater

All Catchments

$

20,948,577

$

7,572,404

$

8,468,684

$

190,800

-$

896,280

Wastewater

All Catchments

$

51,086,391

$

7,329,886

$

8,503,105

$

233,200

-$

1,173,219

Water

All Catchments

$

20,822,373

$

13,576,741

$

8,496,153

$

50,000

$

5,080,588

$

141,737,397

$

59,311,762

$

42,035,678

$

580,000

$

17,276,084

The figures in the table are not inflation adjusted. 96

Appendix H

Glossary of Terms Activity

Means goods or service provided by the council (as defined by section 5 of the LGA Act 2002) and the headings under which development contributions are collected. These currently include: Community Infrastructure, Roading, Parks; Reserves, Water, Wastewater and Stormwater.

Area of demand

Separate development contribution areas exist for each asset category. For some assets, e.g. transport the development contribution area is District wide, for asset categories such as stormwater, water and wastewater development contribution areas are based upon existing service catchment areas as identified on the maps appended.

Backlog

The portion of a planned (or completed) capital project that is required to rectify a shortfall in service capacity to meet existing community demand at the current agreed level of service.

Base Units

The demand of an average household unit for each service.

CCI

Construction Cost Index

CBD

Central Business District (as defined in the Proposed District Plan â&#x20AC;&#x201C; Definitions/Glossary).

Commercial Activity

The use of land or buildings for the display, offering, provision, sale, repair or hire of goods, equipment or services and includes education facilities, health care

Community Facilities

centres, home occupations, printing and publishing but excludes helicopter depots and where Commercial Activity occurs in Large Format Retail Zone the term excludes supermarkets. Reserves, network infrastructure, or community infrastructure for which development contributions may be required.

Community Infrastructure

Land, or development assets on land, owned or controlled by Hastings District Council to provide public amenities, including land that the Council will acquire for that purpose.

Connection

Means in the case of: Roads: the creation of a site that has physical or legal access to a public road or the approval of vehicle access from a property to a public road. Water, Wastewater and Stormwater: a connection to a reticulated system owned or maintained by the Hastings District Council, and/or to draw from, or discharge into a public or private system that is directly or indirectly serviced by a network owned or maintained by the Hastings District Council.

Cost Allocation

The allocation of the capital costs of a project to the various drivers for the project, such as renewal, catch-up (backlog), and additional capacity to meet growth.

CPI

Consumer Price Index (for avoidance of doubt this excludes credit)

Credits

Where development contributions or financial contributions for a particular property have previously been assessed and paid, credit to that amount will be given for the particular activity. 97

Current Year

The current year is 2005/06 (called 2005) and year 1 of the Development Contributions Policy is 2006/07, called 2006.

DC

Development Contribution

Development

As defined by section 197 of the LGA Act 2002: any subdivision or other development that generates a demand for reserves, network infrastructure, or community infrastructure but does not include the pipes or lines of a network utility operator.

Development Agreement

Any private agreement signed between a developer and Hastings District Council.

Footprint

The Gross Floor Area (GFA) of the building excluding any upper floors.

Financial Contributions

Financial contributions are provided for by the Resource Management Act (RMA) and Council’s policy is set out in Section 5 of the Proposed District Plan. A financial contribution is a contribution from developers of cash, land, works, services or a combination of these. Financial contributions are used to offset or mitigate the adverse impacts on the natural and physical environment including utility services, of a new development.

Funding Model

The funding model ensures an equitable assessment of the funding requirements to support the development contributions regime. The primary output of the funding model is an accurate assessment of the required development contribution charges.

Funding Period

Not less than 10 years. Otherwise lesser of asset capacity life, asset useful life, or 30 years.

Granny Flat

A building which is ancillary to the main residence, is not

(also referred to as a Sleep Out)

independently utilised and is not considered a residential building. (Refer to Residential Building definition)

Gross Floor Area (GFA)

The sum of the gross area of all floors of a building measured from the exterior faces of the exterior walls, or from the centre lines of walls separating two buildings but excludes any area used for basement or rooftop parking areas, stairwells, lift wells and life towers, machinery rooms, boiler, heating and air conditioning plant rooms.

Growth

The portion of a planned (or completed) capital project providing capacity in excess of existing community demand at the agreed level of service.

Growth Model

For each development contribution area the Council has determined the population changes anticipated as the District expands. These are reported as ‘Household Unit Equivalents’ (HUEs).

GST

Goods and Services Tax

Household Unit Equivalent (also HUE) Industrial Activity

A type of ‘unit of demand’ that relates to the typical demand for infrastructure by an average household.

Industrial Primary Productions ISA

Means the processing, storage and packaging of crops and agricultural produce.

The use of land or buildings for the manufacturing, fabricating, processing, packing or storage of substances, into new products and the servicing and repair of goods and vehicles, whether by machinery or hand and includes transport depots and the production of energy but excludes helicopter depots.

Area of impervious surfaces to be drained to the reticulated stormwater network. 98

implementation and the current year. Land Based Primary Production

means: (a) livestock rearing which is primarily reliant on the underlying land; and (b) horticulture (including, viticulture, orcharding, cropping, market gardening, berry fruit growing, nurseries and glasshouses accessory to any of the foregoing activities, but not garden centres); and (c) trees, plants and crops grown in the ground but under cover; (d) forestry; and (e) associated accessory buildings

Level of Service (LOS) LGA 2002

The standard of service provision for each asset.

Lot

Lot is deemed to have the same meaning as ‘Allotment’ under both the Local Government Act 2002, and the Resource Management Act 1991.

LTCCP

Parks: Community

This refers to the cost of providing additional improvements necessary to turn basic reserve land into usable reserves such as: District Parks – generally small areas of scenic or recreation reserve that are intended primarily to ‘beautify’ an urban area Neighbourhood reserves – small to medium sized areas of recreation reserve that are intended to provide for informal local passive and active recreation Parks/domains – larger scenic or recreation reserves intended primarily to provide for passive recreation with a feeling of remoteness from urbanity and more formal active recreation and events

Local Government Act 2002

District Sports-grounds – larger recreation reserves intended primarily to provide for formal sporting activities and events

Long Term Council Community Plan Parks: reserve land

This refers to the cost of purchasing land and minor improvements necessary to enable that land to function as a basic area of green open space, including minor earthworks, fencing, access, demolition, basic drainage, and grassing.

LTP Minor Dwelling Unit

Long Term Plan (replaced LTCCP) A minor dwelling unit is considered to be a secondary or subsidiary residential building of less than 80m2 in size excluding any garage area.

New Growth / New Expenditure

Relates to the growth demand and planned costs in the ten years from the current year. Starting in year 1 – 2012 and ending in year 10 – 2021 (30 June 2021)

Reductions

A reduction is an adjustment to the HUEs assessed for a consent application. A reduction will only be considered as part of a review requested by an applicant.

Past Growth / Past Expenditure

Relates to growth capacity and cost that has been provided by past expenditure. In terms of cost it relates to actual costs incurred in past years – including the current year. In terms of demand it relates to the provided capacity for the period between

RMA

Resource Management Act 1991

Remissions

A remission is an adjustment to the scheduled charged for a particular activity and catchment as a percentage or in dollar terms. Remissions will only be invoked as a 99

resolution of Council. Renewal

The gross cost of replacing an existing asset with a modern equivalent asset to the same function and capacity at the end of its life.

Residential

The use of land and buildings by people for accommodation purposes, including unit/strata title developments and commercial accommodation.

Residential Building

Retail Shop

A building, a room, or a group of rooms, that is designed or capable of being used or occupied exclusively by one or more persons as a single, independent and separate household unit (including secondary residential buildings). The use of land or premises for the retail sale or hire of goods to the public.

Secondary or Subsidiary Residential Building

Means a separate household unit / residential building irrespective of size, provided for after the establishment of a principle residential building and which is used to complement the principle residential building on site.

Service Connection

A physical connection to a service provided by, or on behalf of Hastings District Council.

Site

Means either:

Building Act or Section 643 of the Local Government Act 1974, are held together in such a way that they cannot be dealt with separately without the prior approval of Council, or the title(s) consist of more than one allotment and such allotments are held together in such a way that they cannot be dealt without separately without the prior approval of the council. (c) In the case of a cross lease- each area shown on the certificate of title as an exclusive use area. Subdivision

Subdivision is deemed to have the same meaning as â&#x20AC;&#x2DC;subdivisionâ&#x20AC;&#x2122; under the Resource Management Act 1991.

VPD

Vehicles Per Day

Visitor Accommodation

Non-permanent accommodation including motels, holiday or tourist flats, hostels, boarding houses, private hotels, motor and tourist lodges, but does not include camping grounds or any premises where liquor is sold.

Warehousing and Storage Facilities

Land or buildings used for the receipt, storage and disposal of material, articles or goods destined for a retail outlet, trader or manufacturer and includes stock and station firm operations.

(a) An area of land permitted by the District Plan to be used as a separate unit for one or more specified or ascertainable uses, and held in one single Certificate of Title, and includes all related buildings and cartilages. (b) An area of land which is held in two or more Certificate of Title where such titles are subject to a condition imposed under Section 36 of the 100

Appendix I Non-Residential HUE Conversions Table G-1

GFA Conversions for Non-Residential Development Stormwater

Water

Wastewater

Transport

* See Note 1 Below 2

Land Use/Activity

HUES per 100m of Gross Floor Area (GFA)

Commercial (Unspecified)

0.33

0.20

0.34

0.41

Offices

0.33

0.20

0.34

0.41

Retail Shops See Note 1

0.33

0.23

0.38

* See Note 2 Below Varies see chart below. 2

Max HUE/100m = 2.68 2

Min HUE/100m = 1.46 2

(at 10,000m ) â&#x20AC;&#x201C; linear in between Industrial (Unspecified)

0.29

0.33

0.55

0.42

Warehouse/Storage

0.29

0.20

0.34

0.13

Education

0.33

0.20

0.34

0.41

Visitor Accommodation

0.33

0.51

0.84

0.29

Entertainment facilities including serving food and beverages

0.33

0.33

0.54

1.49

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Notes: 

Note 1: The buildings ‘footprint’ rather than Gross Floor Area is used for the purpose of calculating the Stormwater Contribution. All other activities are determined by the Gross Floor Area of the Buildings.



Note 2: The transport equivalences for retail shops are a function of the size of the proposed building(s). The equivalence for <10,000 m (2.68 HUE/100m 2 above)is adopted as the charge for a 0m2 building with the charge then ramping down (linearly) to a minimum equivalence for >10,000m (1.46 HUE/100m2 2 above) at 10,000m .

2

2

2

Thus a 3000m planned retail building would have an equivalence of: = 2.68 – (3,000 / 10,000 ) * (2.68 – 1.46) 2

= 2.31 HUE/m

Transport Retail HUEs / 100m2 GFA

HUEs / 100m2 GFA

3.0 2.5 2.0 1.5 1.0 0.5 0.0 0

5,000

10,000 GFA m2

15,000

20,000

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Table I-2. Base Units for Non-Residential Development Activity

Base Unit

Demand per HUE

Parks: Reserve land

Ha

Transport

Vehicle trips per day

Water Supply

m per day

Wastewater

m per day

Stormwater (Residential)

Impervious Surface Area (ISA)

240m

Stormwater (Non Residential)

Impervious Surface Area (ISA)

(Commercial) 300m

Comments

N/A 10.4 light vehicles and 2 heavy vehicles (Class II or higher)

Maximum in each class (e.g. 10 light & 4 heavy = 2 x HUEs)

3

675 litres per day

NZS:4404 states average typical demand is 250 litres per day per person. Average Residential dwelling is 2.7 persons which equates to 0.675m3 per day.

3

540 litres per day

NZS:4404 states average wastewater generated is 200 litres per day per person. Average Residential dwelling is 2.7 persons which equates to 0.675m3 per day.

2

(Industrial) 340m

2

2

Average Section is 600m x ECoP 0.4 = 240m per residential section

2

2

Runoff per Ha Commercial land is relative to 33 Residential Properties. Runoff per Ha Industrial land is relative to 29 Residential Properties.

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Appendix J Funding Sources for the Cost of Growth Section 106 of the Local Government Act 2002 requires Council to explain why it has determined to use development contributions to fund the capital expenditure identified in its LTP resulting from growth. Section 101 of the Act requires consideration of the following matters in relation to each activity to be funded. (i) (ii) (iii) (iv) (v) (vi)

the community outcomes to which the activity primarily contributes; and the distribution of benefits between the community as a whole, and identifiable part of the community, and individuals; and the period in or over which those benefits are expected to occur; and the extent to which the actions or inaction of particular individuals or a group contribute to the need to undertake the activity; and the costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities: and the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural well-being of the community Consideration of these matters for each activity that Council intends to collect Development Contributions for is set out below. These are fundamentally in line with the Revenue and Financing Policy adopted by Council through its LTP. The analysis below focuses on capital expenditure funding and the cost of growth only.

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Water Supply Contribution to Community Outcomes Community Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By ensuring that we have a healthy public water supply that meets 100% compliance with NZ drinking water bacteria standards, at an affordable cost. By ensuring that all water supply assets are well maintained and operated efficiently. By ensuring people are water wise, conserve water and minimise the impact on water sources and the environment.

Distribution of Benefits Community Benefits   

Contributes to community health, fire safety. Assists the local economy. Improves amenity value of the city.

Identifiable Beneficiaries 

The users of the Council’s water supply (or potential users as in properties able to be connected).

105

Overall the benefit has been assessed as being 100% identifiable as users in water reticulated areas also receive the maximum proportion of the community benefit. Accordingly Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure. Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital infrastructure projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the Local Government Act 2002. Therefore, to support development the required increase in demand for capacity in the communityâ&#x20AC;&#x2122;s water infrastructure must be planned for and funded. Costs and Benefits of Distinct Funding Funding this account on a user pays basis targets the beneficiaries of the activity directly and is a transparent funding mechanism. Water infrastructure has its own distinct catchment and characteristics. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes A good quality water supply enhances public health and safety. It is equitable that those who connect to the water supply network should contribute their proportion of any cost of providing for that growth.

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Sewage Disposal Services Contribution to Community Outcomes

Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By ensuring that adequate public sewage disposal systems are available at an affordable cost and all sewage disposal services assets are well maintained and operated efficiently. By ensuring the community wastes less to minimize the impact on the environment.

Distribution of Benefits Community Benefits    

Community health and safety Assists the local economy Land is protected from the effects of sewage seepage Meets the community’s increasing environmental standards

Identifiable Beneficiaries 

Identified as properties connected to the Districts sewage system (and properties able to be connected).

Overall the benefit has been assessed as being 100% identifiable as users in sewage reticulated areas also receive the maximum proportion of the community benefit. Accordingly Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure.

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Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital infrastructure projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the Local Government Act 2002. Therefore, to support development the required increase in demand for capacity in the communityâ&#x20AC;&#x2122;s wastewater infrastructure must be planned for and funded. Costs and Benefits of Distinct Funding Funding this account on a user pays basis targets the beneficiaries of the activity directly and is a transparent funding mechanism. Wastewater infrastructure has its own distinct catchment and characteristics. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes An effective sewage disposal system that meets current and future need enhances public health and safety. It is equitable that those who connect to the sewage disposal network should contribute their proportion of any cost of providing for that growth.

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Stormwater Disposal Services Contribution to Community Outcomes

Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By ensuring that adequate public stormwater disposal systems are available at an affordable cost, and by ensuring that all stormwater disposal services assets are well maintained, operated efficiently. By ensuring the community minimizes the negatives impact on the environment.

Distribution of Benefits Community Benefits   

Public health and safety Environmental benefits of flood control Enhances amenity and property values

Identifiable Beneficiaries 

Properties serviced by a stormwater system

The overriding benefits of Council’s stormwater activity apply to all those who are located in the areas where Council provides a reticulated system. Accordingly Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure.

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Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital infrastructure projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the Local Government Act 2002. Therefore, to support development the required increase in demand for capacity in the communityâ&#x20AC;&#x2122;s stormwater infrastructure must be planned for and funded. Costs and Benefits of Distinct Funding Funding capital expenditure related to growth from development contributions targets the beneficiaries of the activity directly and is a transparent funding mechanism. Stormwater infrastructure has its own distinct catchment and characteristics. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes An effective stormwater disposal system that meets current and future needs enhances public safety. It is equitable that the development community should fund their proportion of any new capital expenditure requirements for this activity.

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Roading Contribution to Community Outcomes

Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By providing and maintaining an environment where people can move around safely. By providing an attractive and safe walking and cycling environment. By providing accessible transport options to support an efficient movement of goods.

Distribution of Benefits Community Benefits   

Safe transportation network Easy access Assists economic growth

Identifiable Beneficiaries  

All road users (motorists, pedestrians, cyclists, transport operators and businesses) Utility service providers using the road reserve for their services 111

The benefits of Councilâ&#x20AC;&#x2122;s roading network accrue to both District residents and businesses and outside users. Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure. Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital infrastructure projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the Local Government Act 2002. Therefore, to support development the required increase in demand for capacity in the communityâ&#x20AC;&#x2122;s roading infrastructure must be planned for and funded. Costs and Benefits of Distinct Funding Funding capital expenditure related to growth from development contributions targets the beneficiaries of the activity directly and is a transparent funding mechanism. Roading infrastructure has its own distinct characteristics in that all persons have access to the network. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes An effective roading network ensures people can move around safely and accessible transport options are available to transport goods efficient. In order for the roading network to be maintained with the present level of service in the long term, and to accommodate anticipated growth, the Council considers that additions and upgrades are necessary. It is equitable that the development community should fund their proportion of any new capital expenditure requirements for this activity.

112

Parks and Sportsgrounds Contribution to Community Outcomes

Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By ensuring our district is an attractive location to live, and we have adequate places and spaces for recreation and fun. By ensuring we have attractive and usable open spaces that are safe for people to enjoy.

Local public services which help meet the needs of young and old, people in need, visitors and locals, businesses and households.

Distribution of Benefits Community Benefits   

Community pride Amenity value General recreational accessibility

Identifiable Beneficiaries  All park users The benefits of Council’s parks & sportsgrounds activity accrue to those who choose to use and enjoy them in numerous ways. Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure.

113

Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the Local Government Act 2002. Therefore, to support development the required increase in demand for capacity in the communityâ&#x20AC;&#x2122;s parks, reserves and associated facilities must be planed for and funded. Costs and Benefits of Distinct Funding Funding capital expenditure related to growth from development contributions targets the beneficiaries of the activity directly and is a transparent funding mechanism. Parks and facilities on parks and reserves infrastructure have their own distinct characteristics in that all persons have access to them. However it is acknowledged that some areas will not have the same ready access to this infrastructure. Therefore two catchments have been identified that have different capital expenditure within each. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes The provision of parks and sportsgrounds and the amenities located on them (such as toilets and playgrounds) that meets current and future needs ensures we contribute to safe, healthy and liveable communities. In order for the present levels of service to continue in the long term, and to accommodate anticipated growth, the Council considers that addition reserve acquisition and development is necessary; as are additional toilets and playgrounds. It is equitable that the development community should fund their proportion of any new capital expenditure requirements for this activity.

114

Libraries Contribution to Community Outcomes Outcome

How the Activity Contributes

Local Infrastructure which contributes to public health and safety, supports growth, connects communities, activities communities and helps to protect the natural environment.

By ensuring we have adequate places and spaces for learning and interaction.

Local public services which help meet the needs of young and old, people in need, visitors and locals, businesses and households.

Distribution of Benefits Community Benefits ď&#x201A;ˇ

Open Access, Social cohesion and education

Identifiable Beneficiaries ď&#x201A;ˇ

All library users

The benefits of Councilâ&#x20AC;&#x2122;s library activity fundamentally accrue to those who choose to use the library service. Accordingly the Council has determined that the cost of growth should be paid for by those that require and benefit from the need to undertake the capital expenditure. Period in which the benefits are expected to occur Assets purchased from capital expenditure are treated as providing long term benefits to the community for the duration of their useful lives. 115

The actions or inaction of particular individuals or a group contribute to the need to undertake the activity New development that has a requirement for Council services must be planned for to enable the infrastructure to cater for this additional demand and to ensure existing levels of service can be maintained. In designing capital projects, a competent Council must evaluate future growth and provide for this growth in managing its assets. This must also be done to achieve the purpose of the LGA 2002. Therefore, to support development the required increase in demand for community infrastructure (libraries) must be planned for and funded. Costs and Benefits of Distinct Funding Funding capital expenditure related to growth from development contributions targets the beneficiaries of the activity directly and is a transparent funding mechanism. Libraries infrastructure has its own distinct characteristics in that all persons have access to the facilities provided. No costs have been identified for distinct funding of this activity. Overall Impact of Funding on Community Outcomes The provision of district libraries that meet current and future needs ensures we provide adequate places and spaces for learning and interaction. In order for the present levels of service to continue in the long term, and to accommodate anticipated growth, the Council considers that addition library space and book stock acquisition is necessary. It is equitable that the development community should fund their proportion of new capital expenditure requirements.

116

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