What are Development Contributions?
Development Contributions (DCs) are fees payable to Council to fund the growth-related costs of capital infrastructure. DCs may be charged on resource consents (subdivision and land use), building consents and / or service connections if the consent is for works which will have additional impact on infrastructure.
Annual review of the Development Contribution Policy
Each year, Tauranga City Council reviews its Development Contributions Policy to make sure the contributions charged align with the cost of the infrastructure needed to support new growth.
Updating the policy regularly also helps Council improve how the system works over time.
This annual consultation gives the community, businesses and developers the chance to have their say on how the costs of growth‑related infrastructure should be funded and shared.
Key proposed changes
Definition of bedroom
The definition of the term ‘bedroom’ has been further refined with the intent of providing clarity on what areas of a dwelling will be counted as a bedroom.
Granny flats
Added a note to clarify that granny flats or any small stand-alone dwellings which may be exempt from the requirement to get a building consent will still be charged development contributions if they meet the same definitions of a household unit as set out in the development contributions policy. Development contributions in this case will be charged on the Project Information Memorandum as provided for under the legislation.
Updates to fees
Development contribution fees have been updated to reflect changes to capital expenditure budgets and estimated debt and inflation costs. The key changes are:
- An increase in citywide development contributions of 7.3% as a result of increases in the cost of capital, indoor courts and wastewater infrastructure;
- A decrease in Tauriko West development contributions of 8.2% reflecting revised water infrastructure funding allocations. Noting also that the developable land area divisor is under review and may reduce thereby increasing local development contributions for this catchment;
- A decrease in Te Papa Infill development contributions of 10% in Te Papa North and 5.3% in Te Papa South as a result of reduction in the budget for Cameron Road Stage 2;
- An increase in Wairakei A development contributions of 6.3% as a result of higher cost of capital; and
- An increase in West Bethlehem local development contribution of 5.2% for residential and 6.5% for non-residential developments as total subsidies are reduced.