Updated 11 September 2018
11A.1.1 Objective – Mitigation of the Costs of Growth on Economic Wellbeing
The total costs of providing infrastructure to accommodate growth are mitigated through new development that uses the infrastructure making a fair and proportional financial contribution towards that infrastructure.
11A.1.1.1 Policy - Mitigation of the Costs of Growth on Economic Wellbeing
By ensuring that the cost of the provision of growth-related infrastructure is met by those creating the demand for the infrastructure through the process of subdivision, land use and development.
11A.1.1.2 Policy – Funding of Infrastructure
By recognising that the Council may choose to fund infrastructure where the benefits of that infrastructure extend beyond an individual site.
11A.1.1.3 Policy – Funding of Services
To mitigate the adverse economic effects of the funding of infrastructure through the taking of development contributions under the provisions of the Local Government Act 2002, and the taking of financial contributions where:
- Subdivision, use or development in established urban growth areas by a non-exempted party generates a demand for local reserves, local community infrastructure or otherwise creates an effect that can be mitigated by a financial contribution;
- Subdivision, use or development by an exempted party generates a demand for reserves, community infrastructure or network infrastructure or otherwise creates an effect that can be mitigated by a financial contribution.
11A.1.1.4 Policy - Fair and Equitable Contribution
By ensuring that the level of financial contribution is proportionate to the effect of the subdivision, use or development in terms of its infrastructure needs.
11A.1.1.5 Policy – Intergenerational Equity
By ensuring that the costs of infrastructure are spread fairly over time, Council may choose to adjust financial contributions in a manner so those contributions increase over time, taking into account general increases in price levels and incomes.
11A.1.1.6 Policy – Cost of Capital
The nett interest costs incurred in funding infrastructure required by growth may be included in the financial contribution payable as these are part of the total cost of providing infrastructure to accommodate the City’s growth.
11A.1.1.7 Policy – Relevance of Financial Contribution and Review of Costs
By ensuring that the amount of financial contribution required reflects the changing costs of growth over time through using consistent formulas for the calculation of financial contributions, and reviewing the inputs into those formulas on an annual basis.
11A.1.1.8 Policy – Provision of Land
By having the discretion to take land instead of money as a financial contribution in circumstances where:
- The land is appropriately located to meet demand and Council’s level of service for active or passive open space;
- The location of the land is consistent with the matters of control for the location of open space contained in Rule 12B.3.2 – Controlled Activities - Matters of Control and Conditions;
- Where the site and the surrounding environment is being developed as a comprehensive development;
- Where the land value is agreed between all parties;
- Where the development of the land meets Council’s level of service for active or passive open space.
11A.1.1.9 Policy – Unforeseen Impacts
Ensuring that unforeseen effects of subdivision, use and development on infrastructure by an exempted party are able to be mitigated through financial contributions so that infrastructure continues to meet the functional needs of the community.
11A.1.1.10 Policy – Recreation Demands in Established Urban Growth Areas
By requiring subdivision, use and development that increases the density of population in established urban growth areas to provide a contribution towards the increased development of open space amenities and community facilities to maintain the Council’s level of service for the open space, recreation and leisure needs of the community. Established urban growth areas are shown on Diagram 5, Section 5 ( Plan Maps, (Part B) Financial Contribution Urban Growth Areas:
- Welcome Bay;
- Pyes Pa;
- Tauranga and Mt Maunganui Infill.
11A.1.1.11 Policy – Allocation of Costs
By allocating the total costs of infrastructure in an equitable manner over both existing and new users, and ensuring that such costs, including interest costs are not borne unfairly by the wider community or the growth community. Consideration of who causes the need to undertake infrastructure works and who will benefit from them will be considered when Council makes cost allocation decisions between different funding sources.