What are development contributions?
Development contributions are a fee required when a new development generates additional demand on Council infrastructure such as drinking water and wastewater networks. Development contributions are collected to ensure a fair share of the costs of providing additional infrastructure to cater for new developments are met by developers rather than existing ratepayers.
Development and Financial Contributions Policy
Ashburton District Council adopted its Development and Financial Contributions Policy with its Long Term Plan 2021 - 2031.
What do development contributions fund?
Council builds its network and community assets with sufficient additional capacity to cater for future additional demand. Council uses development contributions to fund this additional capacity for most Council drinking water supplies and the wastewater schemes in Ashburton and Methven.
Contributions are also required from all new developments for community infrastructure facilities.
The amount you have to pay depends on the location of your property and the type of development being built. More specifically, it is based on the number of household unit equivalents (HUE) of demand on services the development generates.
- Residential development - The number of HUEs is based on the number of new dwellings developed
- Non-residential development - For water and wastewater development contributions an assessment will be made of the demand the development is expected to generate for each activity. The number of HUEs for a non-residential development is calculated by dividing the development's demand by a standard residential HUE
- Community infrastructure development - Each residential and non-residential development will pay the amount required for one residential HUE, regardless of the size of the development
In cases where a development is replacing an existing residential or non-residential unit a credit will be given for the former development using the same assessment method used to calculate fees required for a new development.
Development contributions are invoiced at the time you apply for a:
- Building consent (Please note that if you have purchased a serviced section, that does not necessarily mean the development contributions for those services have been paid).
- Connection to a Council water or wastewater network or
- Resource consent for change of use
Payment for development contribution fees is the same as any other Council invoice and is payable on the 20th of the month. If you don't pay your development contribution fees the debt will be treated the same as any debt to Council and usual debt recovery processes will be used. If development contribution fees remain unpaid Council will not issue your project with a Code of Compliance Certificate, resource consent for change of use or make a connection to Council water or wastewater networks.