Development and Financial Contributions Policy 2023 - 2024

Upper Hutt has experienced considerable growth in recent years, and this is forecast to continue. We have several significant projects in our Long Term Plan to help cater for this growth. Our Revenue and Financing Policy contemplates using development contributions to help meet the cost of this infrastructure. To date, we have made only limited use of development contributions for this purpose. We’re now proposing to make more use of this funding tool by establishing a new development and financial contributions policy, effective from 1 July 2023.

It proposes new charges of:

• $2,382 (including GST) per equivalent household unit (EHU) district wide for transport.
• $6,199 (including GST) per EHU for district wide community infrastructure. This will apply for only to residential developments.

The projects these charges will fund is included in schedule 1 of the Draft Policy (available to view in the Supporting Information section).

WHAT ARE DEVELOPMENT CONTRIBUTIONS?

A charge Council can levy on development to help contribute to the cost of building infrastructure that supports growth.

SUMMARY OF THE DRAFT POLICY

The new transport charge is proposed to apply to all development in the district, and the new community infrastructure charge is proposed to apply to all residential developments in the district.

The new charges are expected to eventually generate revenue of around $2.3 million per annum, taking total development contributions revenue to $2.5m per annum.

The Draft Policy retains distinct and additional development contributions for seven rural transport catchments. It does not include any development contributions for 3 waters related activities. Most three waters infrastructure related to growth proposed currently is outside of the 10 years of the 2021 Long Term Plan. Additionally, any new charges would only apply for one year before Water Services Entity C became responsible for setting new Infrastructure Charges (the proposed equivalent of development contributions), which could be vastly different.

As well as establishing new charges, we have also taken the opportunity to fundamentally review the Council’s Development Contributions Policy.

The new structure and rules contained within the Draft Policy are more in line with the Department of Internal Affairs model development contributions policy template and with Hutt City Council’s 2021 Development Contributions Policy. This should make it easier for developers to navigate and understand Upper Hutt’s policy compared to similar policies.

The more important changes include:

• Providing more user-friendly information at the beginning of the policy, including the charges and when people will be liable for development contributions.
• Providing clear rules and consistent steps for when developments are assessed and invoiced and when they must pay their development contributions.
• Providing clear and consistent basis for assessing demand across different land use types and credits.
• Provisions to support not for profit social, cultural, ora, and educational related developments on Māori freehold land and Māori customary land.
• Summarise the financial contributions provisions of the District Plan as required by the Local Government Act 2002 (LGA).

NEXT STEPS

Before the policy is adopted, we’re seeking feedback from members of the public.

• Consultation will run from 20 April to 21 May, followed by hearings on 31 May.
• We are holding public information sessions on 3 and 12 May. Please check the Key Dates section for the details.
• After the hearings, the Committee (or the Hearings and Deliberations Panel) will deliberate and make final recommendations to Council.
• The final policy is expected to be considered for adoption by Council on 28 June 2023.

If you wish to make a submission, please complete the online submission form below. Hardcopies are available from Council at the HAPAI Service Centre, and the Upper Hutt Library.

Submissions close at 5.00 pm on 21 May 2023.