Agenda of Extraordinary Meeting of Council

COUNCIL
Membership:	13
Meeting Cycle:	Council meets on a six weekly basis (Extraordinary Meetings can be called following a resolution of Council; or on the requisition of the Chair or one third of the total membership of Council)

8 30 November 2020

HUTT CITY COUNCIL

Long Term Plan/Annual Plan Subcommittee

Minutes of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,
Lower Hutt on

Monday 30 November 2020 commencing at 2.00pm

PRESENT:	Mayor C Barry (Chair)	Deputy Mayor T Lewis
	Cr D Bassett	Cr J Briggs
	Cr K Brown	Cr B Dyer
	Cr S Edwards	Cr D Hislop
	Cr A Mitchell	Cr N Shaw
	Cr L Sutton

APOLOGIES: Crs D Bassett, S Rasheed and C Milne. Cr K Brown for lateness.

IN ATTENDANCE: Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities

Mr K Puketapu-Dentice Director, Economy and Development (part meeting)

Mr M Boggs, Director Strategy and Engagement (part meeting)

Ms J Livschitz, Chief Financial Officer

Ms W Moore, Head of Strategy and Planning (part meeting)

Mr B Hodgins, Acting Director Environment and Sustainability (part meeting)

Mr M Sherwood, Head of Parks and Recreation (part meeting)

Mr D Koenders, Manager, Financial Strategy and Planning

Mr J Pritchard, Principal Research and Policy Advisor

Ms H Stringer, Financial Transaction Services Manager (part meeting)
Ms J Randall, Programme Lead – Planning and Reporting (part meeting)

Mr D Newth, Financial Accounting Manager (part meeting)

Ms S Page, Senior Management Accountant (part meeting)

Ms A Andrews, Business Analyst – Rates and Finance Ms K Stannard, Head of Democratic Services

Ms H Clegg, Minute Taker

PUBLIC BUSINESS

1. APOLOGIES

Resolved: (Mayor Barry/Cr Briggs) Minute No. LTPAP 20601

“That the apologies received from Crs Bassett, Milne and Rasheed be accepted and leave of absence be granted and the apology for lateness from Cr Brown be accepted.”.

2. PUBLIC COMMENT

There was no public comment.

3. CONFLICT OF INTEREST DECLARATIONS

Cr Hislop declared a conflict of interest in relation to Fraser Park Sportsville for the reason that the firm she was employed by was a sponsor of the organisation.

Cr Shaw declared a conflict of interest Fraser Park Sportsville for the reason that she was Council’s representative on the Fraser Park Working Group.

The Chief Executive advised that it was important for the two members to declare the interests. However, it did not prevent the members, in the context of those interests, from taking part in discussion or voting on the matter.

4. Recommendations to Council - 8 December 2020

Fraser Park Sportsville (recommendation from the Community and Environment Committee – 19 November 2020) (20/1475)

Deputy Mayor Lewis advised that the officer’s report and presentation to the Community and Environment Committee had provided thorough and valuable information.

ReCOMMENDED:(Deputy Mayor Lewis/Cr Shaw) Minute No. LTPAP 20602

“That the Subcommittee recommends that Council:

(i) notes and receives the report;

(ii) notes the report from the Working Group attached as Appendix 1 to the report;

(iii) notes that, on balance, officers support the option put forward by the Fraser Park Sportsville Board (FPS) of entering a new agreement for three years with increased funding allocations;

(iv) notes the request for funding from FPS attached as Appendix 3 to the report;

(v) agrees to an increase of $134,814 in the funding grant payable to FPS in the current financial year 2020/21 (making the total for the year $234,814);

(vi) agrees funding for FPS over the next three years of:

(a) 2021/22 - $201,388;

(b) 2022/23 - $156,154; and

(vii) agrees that any funding request for 2024/25 and beyond is reviewed in 2023;

(viii) agrees to forgive the current debt of $75,309.11 owed to Council by FPS;

(ix) agrees to a possible additional payment to FPS of up to $57,402 (reduced by any end of year surplus), to enable payment of outstanding debts to other parties;

(x) notes that funding recommendations in the report are supported by Hutt City Community Facilities Trust (CFT);

(xi) notes that additionally CFT is proposing to forgive $45K outstanding from the FPS founding member clubs fundraising contribution to the facility build; and

(xii) agrees that officers work with FPS and CFT on a formal funding agreement which incorporates clauses on improved governance, outcomes and financial reporting requirements and regular review periods including an annual review of financial grants.”

For the reasons that the proposed option provides the best opportunity to achieve the strategic intent of the Ricoh Sports Centre, the centre is still in a settling in period and has been faced with numerous challenges during this time, and the centre has shown improved operating performance over recent months.

ii)

Hutt City Community Facilities Trust - options for the future (20/1467)

Mr Phil Fisher repersenting PricewaterhouseCoopers was in attendance for the item.

The Director Neighbourhoods and Communities elaborated on the report. She provided background for the reasons for the initial establishment of the Hutt City Community Facilities Trust (CFT).

In response to a question from a member, Mr Fisher clarified that officers had conducted informal discussions with the Inland Revenue Department (IRD) regarding the transfer of CFT assets toCouncil ownership. He highlighted that IRD had no issues with the transfer. Mr Fisher advised that a written statement from the IRD would be required due to the quantum of the values of the assets (approximately $41M).

In response to questions from a member regarding the reasons why the CFT could not continue as it may be useful for the Naenae Pool project, the Director Neighbourhoods and Communities explained that pools were traditionally viewed as a core Council function and it was difficult to obtain funding for them. She added that the CFT could attract funding for new developments, whereas the projects proposed for the next 10 years were replacements or renewals. Mr Fisher added that in future years the CFT could be resurrected. He noted that the process of transferring assets from a trust to local authorities was widely used throughout New Zealand.

In response to a question from a member regarding the possible ease of reinstating the CFT, Mr Fisher advised it was a relatively simple process with a legal opinion being required to ascertain whether the CFT remained fit for purpose for the proposed new use. The Director Neighbourhoods and Communities stated that it was cheaper to wind the CFT down and have it on hold rather than continuing operating the CFT with no work programme.

In response to a question from a member regarding the existing trustees and their futures, the Director Neighbourhoods and Communities advised only high level discussions had taken place to date, that all trustees continued to have a prescence in the communitiy through their other memberships and that discussions would be held with them shortly.

In response to a question from a member, Mr Fisher explained that naming rights were considered a supply rather than a donation and that it was more advantageous for a business to obtain a sponsor for naming rights, than it was for a trust to do the same. The Director Neighbourhoods and Communities advised Council could not apply to the same number of funding agencies as a charitable trust could.

In response to a question from a member regarding depreciation of the assets, the Chief Financial Officer advised depreciation would be ascertained according to the legal requirements. She added that as Council was currently running a deficit budget, not all depreciations were currently funded.

In response to a question from a member regarding communications to the public, the Director Neighbourhoods and Communities explained public consultation would be undertaken as part of the Long Term Plan consultation programme including an explanation of the benefits of transferring the CFT assets to Council ownership.

Cr Shaw acknowledged the work undertaken by the trustees especially the leadership of Mr John Strahl sa Chair of CFT. She added the facilities that CFT had helped to fund were world class.

Mayor Barry agreed with Cr Shaw’s comments. He added that the current trustees would continue to be involved in the community in other ways.

ReCOMMENDED: (Mayor Barry/Cr Mitchell) Minute No. LTPAP 20603

“That the Subcommittee recommends that Council:

(i) receives the report;

(ii) notes the advice from PriceWaterhouseCoopers (PWC) in regard to the future of the Hutt City Community Facilities Trust (CFT), refer to Appendix 2 attached to the report;

(iii) agrees that option three as detailed in the PWC advice is the preferred option, refer to Appendix 2 to the report;

(iv) agrees to include in the Draft Long Term Plan 2021-2031 for consultation a proposed transfer of the assets from CFT to Council, with CFT retained as a non-active Trust for potential future use (being option three in the PWC advice), refer to Appendix 2 to the report; and

(v) notes that officers will progress further detailed assessment and planning in relation to option three. “

iii)

Development contributions policy review (20/1350)

Mr Dwayne Fletcher representing Vale Consulting was in attendance for the item.

The Head of Strategy and Planning elaborated on the report.

Mr Fletcher advised the proposed charges as outlined in Table 1 of the officer’s report would alter by the end of the week (generally dropping by up to 30%) as the table used an outdated funding model. He added the new funding model had the ability to calculate interest costs in a more accurate and robust manner.

In response to a question from a member regarding whether the proposed policy was cognisant of the requirements of the National Policy Statement, Mr Fletcher advised all charges from each divisoin of Council were included in the development contributions charge excluding those from the Transport Division which would be finalised by the end of the week. He further advised that as a consequence, the development contributions charge could easily be altered when final decisions were made on infrastructure projects.

In response to questions from a member, Mr Fletcher advised that if a subdivision development did not connect to a specific Council service, no development contributions would be payable for that service. He added that even though developments were required to reach stormwater neutrality, storm events would still occur in the future. He highlighted that local authorities were required to recover their costs.

In response to a question from a member regarding the timeline for implementation of the Development Contributions Policy (the policy), Mr Fletcher advised the policy would apply to any application made after July 1 2021.

In response to a question from a member regarding potential cost savings to Council which may reduce the rates burden, the Chief Financial Officer advised initially $45M may be generated by the development contributions over the next 10 years. She noted that would reduce borrowing and related interest costs which could be reflected in the general rates. She confirmed such information would be communicated to the public.

In response to a question from a member, the Head of Strategy and Planning advised discussions had not yet been held with developers. She anticipated that this would occur in the New Year.

Cr Dyer supported the recommendations as they provided for more transparency and would reduce the burden on general rates.

Cr Briggs supported the recommendations as he believed developers should bear the costs of their developments. He expressed concern that the costs would be passed onto future home buyers and that this may result in unaffordable housing.

Mayor Barry stated that the development contribution charges were a small portion of the overall costs of development. He highlighted that having a robust system for the charges would help to ensure the city could cope with future housing demands. He reminded members the policy was being publically consulted on.

Recommended: (Mayor Barry/Cr Dyer) Minute No. LTPAP 20604

“That the Subcommittee recommends that Council:

(i) notes the following changes have been included in the draft Development Contributions and Financial Contributions Policy referred to in recommendation (v) below;

a. The introduction of clearer information about when development contributions are assessed and paid;

b. The introduction of differentiated assessment rates for residential developments;

c. Refinement of non-residential assessment rates and the introduction of a clear position on how non-residential subdivisions will be assessed;

d. Inclusion of guidance on when it is acceptable to use special assessments;

e. The introduction of more formal processes for reconsiderations, objections, and remissions; and

f. Inclusion of new definitions to support administration of the draft Policy, such as a definition of bedroom to support differentiated assessment rates for residential developments;

(ii) notes the indicative charges for development contributions in Table 1 of the officer’s report, and that further work is progressing on finalising these charges which may result in changes;

(iii) notes that section 197AB(g) of the Local Government Act means that while a district wide catchment is not prohibited, it is strongly discouraged;

(iv) notes that district wide charges are proposed in the draft Policy for elements of the infrastructure programme that will serve and benefit all developments and areas in the city, especially the Transport programme and capacity upgrades at the Seaview wastewater treatment plant;

(v) agrees in-principle to the draft Development Contributions and Financial Contributions Policy, excluding the charges and schedules, attached as Appendix 1 to the report; and

(vi) notes that a complete and final draft of the Development Contributions and Financial Contributions Policy will be submitted to the 21 December 2020 Long Term Plan/Annual Plan Subcommittee for consultation approval.”

iv)

Long Term Plan 2021-2031 - Revenue and Financing Policy update report #3 (20/1417)

The Chief Financial Officer provided a brief background to the policy review. She explained the report was a culmination of a series of reports and work streams over the past year. She added that the rating legislation was very complex with some elements of judgement needing to be made.

The Manager Financial Strategy and Planning presented a slideshow. He explained the two step process undertaken by Council as required by legislation. He added that public consultation for the proposed changes was required.

In response to questions from members concerning the proposed 64% differential, the Manager Financial Strategy and Planning advised the amount was based upon Council’s 2012 decision and analyses of information since that time. He was confident the transparent process to date would ensure there were no grounds for a legal challenge. He added that the Court had set a high bar when questioning Council decisions and that it appeared that only when there were unintended consequences of rates charges there was successful cases made against a local authority.

ReCOMMENDED: (Mayor Barry/Cr Briggs) Minute No. LTPAP 20605

“That the Subcommittee recommends that Council:

(i) notes the decisions of the Long Term Plan/Annual Plan Subcommittee on 24 September and 27 October 2020 and that this report has been prepared in response to those decisions;

(ii) endorses the draft Revenue and Financing Policy for consultation as part of the Long Term Plan 2021-2031 attached as Appendix 2 to the report;

(iii) notes the early draft of the Funding Impact Statement (attached as Appendix 3 to the report) and that this will be further updated as decisions are progressed by Council on the rates increases for consultation;

(iv) notes that Council will receive further detail rating impact information at the Long Term Plan/Annual Plan Subcommittee meeting on 21 December 2020;

(v) notes that the draft documents are subject to audit review prior to final approval for consultation; and

(vi) notes that the draft documents will be reviewed by external legal specialists ahead of publication for consultation.”

Long Term Plan 2021-2031 waste services - fees and charges, rates remission (20/1428)

The Acting Director Environment and Sustainability elaborated on the report. He explained the report detailed circumstances where changes to charges could be applied in special circumstances.

In response to questions from members, the Acting Director Environment and Sustainability advised that it was proposed a three month free period leading up to July 1 each year would be applied such that if a new home became occupied from 1 April onwards no bin fee would be required for that part year. He further advised that the fee for changing a bin size (either up or down a size) during a financial year would remain at $100 due to the administrative and logistical costs in achieving this. He added that there would be no ability to change a bin size for free during a financial year.

The Business Analyst – Rates and Finance advised the fees reflected the true cost of implementing a change of service.

The Acting Director Environment and Sustainability confirmed the first bin roll out cost would be included in the targeted rate and that there would be no charge if the initial bin was stolen or damaged by trucks. He added if a household had multiple bins stolen or damaged, officer discretion would be used in whether to charge for replacement bins.

The Chief Executive advised that through the initial implementation phase it was expected anomolies would arise and any issues would be worked through.

In response to a question from a member concerning the possibility of the bins being electronically tagged, the Acting Director Environment and Sustainability confirmed that all bins would be tagged.

In response to questions from members, the Acting Director Environment and Sustainability confirmed all residents would receive a new bin, labelled with Council’s logo. He noted that additional bins were being ordered to ensure replacement bins required during the year were also new. He clarified that the existing glass crates could not be reused under the new system as they were larger than 45l maximum capacity the contractor could safely handle.

In response to suggestions from members of situations where it may be considered unfair to charge for a bin, the Acting Director Environment and Sustainability advised officers were developing a schedule to cover such situations. He added that communication was very important. He also added that officers were currently assessing building consents being processed and would commence contacting developers in the early New Year.

The Chief Executive advised extra resources had been directed to the Council’s Customer Contact Centre to assist with the increased number of telephone calls from the public concerning the new rubbish and recyling system. She added a communications package would be sent to all members for them to distribute via their channels.

Cr Dyer expressed concern that there were no incentives for residents to undertake waste minimisation measures if the cost of reducing a bin size was imposed. He looked forward to the 12 month review report.

Deputy Mayor Lewis expressed concern that numerous residents did not know of the proposed changes to the rubbish and recycling system and asked that robust communication with the public be implemented.

Cr Briggs advised that continual information to the community was vital to ensure anxiety and distrust did not develop. He stated that the communications package needed to be robust.

Mayor Barry agreed with the previous comments made by members. He added that it was difficult to counter misinformation on social media.

Recommended: (Mayor Barry/Deputy Mayor Lewis) Minute No. LTPAP 20606

“That the Subcommittee recommends that Council:

(i) agrees to the Rates Remission policy being updated to include remission of the new kerbside refuse and recycling targeted rates in certain circumstances as set out in Appendix 1 attached to the report;

(ii) agrees to include new waste services fees and charges in the Draft Long Term Plan 2021-2031 to support the new kerbside refuse and recycling collection service as set out in Appendix 2 attached to the report;

(iii) agrees to endorse this approach to be included in the Long Term Plan 2021-2031 for public consultation; and

(iv) notes that detailed implementation planning is underway and that officers will report regularly to Council as this progresses.”

vi)

Bulk Water Levy (20/1538)

The Acting Director Environment and Sustainability elaborated on the report.

In response to questions from members, the Acting Director Environment and Sustainability advised that the amounts detailed in paragraph eight of the officer’s report were the proposed increase in levy and not the total levy cost. He added the current bulk water levy total amount was approximately $9.5M. He clarified that currently water conservation education was undertaken by Wellington Water Limited who had increased its resources in this area.

In response to questions from a member, the Acting Director Environment and Sustainability explained water meters assisted in the management of water useage and that a region wide approach to water meters was required.

Cr Dyer highlighted the large increase in the proposed bulk water levy and this should be considered within the review of the Lower Hutt District Plan.

Deputy Mayor Lewis noted that the current system of taking water from the environment was not sustainable. She added that she supported any measures which encouraged residents to value and conserve water.

Cr Briggs advised it was imperative that water useage information and context be effectively communicated to the public to ensure the community made active changes to the way they used water.

ReCOMMENDED: (Mayor Barry/Deputy Mayor Lewis)Minute No. LTPAP 20607

“That the Subcommittee recommends that Council:

(i) advises Greater Wellington Regional Council that it prefers option 2, to smooth increases over the first few years of the 2021-31 Long Term Plan (LTP);

(ii) requests Greater Wellington Regional Council to further consider the smoothing of proposed increases to minimise the impact in the first two years, given the current economic situation;

(iii) notes that the proposed increase has yet to be factored into draft budgets and that the commercial metered water charge will be adjusted in line with the proposed increase; and

(iv) agrees that Council assume that option 2 be included in the Draft LTP pending further information from Greater Wellington Regional Council.”

5. QUESTIONS

There were no questions.

Cr Briggs closed the meeting with a Karakia.

There being no further business the Chair declared the meeting closed at 3.23pm.

C Barry

MAYOR

CONFIRMED as a true and correct record

Dated this 21^st of December 2020

Attachment 1

Draft HCC Development Contributions Policy 2021

Hutt City development and financial contributions policy 2021-2031

Adoption, application and review of the policy

This Development and Financial Contributions Policy (the Policy) was adopted by Hutt City Council (Council) on [date]. It will apply to all resource consents, building consents, certificates of acceptance, and service connections applied for from 1 July 2021. The previous policies shall continue to apply for all resource or building consents and authorisations for service connections granted before this date.

The Policy will be reviewed on a three-yearly basis but may be updated at shorter intervals if Council considers it necessary. See the Council website www.huttcity.govt.nz for further information.

INTRODUCTION

Purpose of the Policy

1. Population and business growth create the need for new subdivisions and developments, and these place increasing demands on the assets and services provided by Council. As a result, significant investment in new or upgraded assets and services is required.

2. The purpose of the Policy is to ensure that a fair, equitable, and proportionate share of the cost of that infrastructure is funded by development. Hutt City Council intends to achieve this by using:

· Development contributions under the Local Government Act 2002 (LGA) to help fund growth related water, wastewater, stormwater, and transport in the city; and

· Financial contributions under the Resource Management Act 1991 (RMA) to help fund growth related reserve provision, and any infrastructure impacts caused directly by a development that are not addressed and funded by development contributions.

Navigating this document

3. The Policy outlines Council’s approach to funding development infrastructure via development contributions and financial contributions. The Policy has three main parts:

· Part 1: Policy operation

· Part 2: Policy background and supporting information

· Part 3: Catchment maps for the development contribution charges

Part 1: Policy Operation

4. Part 1 provides information needed to understand if, when, and how development contributions and financial contributions will apply to developments. It also explains peoples’ rights and the steps required to properly operate the Policy.

5. The key sections of Part 1 are:

· The charges

· Liability for development contributions

· When development contributions are levied

· Determining infrastructure impact

· Review rights

· Other operational matters

· Summary of financial contributions

· Definitions

Part 2: Background and SUPPORTING INFORMATION

6. Part 2 provides the information needed to meet the accountability and transparency requirements of the LGA for the Policy, including explaining Council’s policy decisions, how the development contribution charges were calculated, and what assets the development contributions are intended to be used towards.

7. The key sections of part 2 are:

· Requirement to have the Policy

· Funding summary

· Funding policy summary

· Catchment determination

· Significant assumptions of the Policy

· Cost allocation

· Calculating the development contribution charges

· Schedule 1 Development contribution charge calculations

· Schedule 2 Future assets and programmes funded by development contributions

· Schedule 3 Past assets and programmes funded by development contributions

Part 3: CATCHMENT Maps

8. Part 3 provides the catchment maps that show where the development contribution charges in the Policy apply.

Part 1: Policy OPERATION

Development contributions

The charges

9. There are six district catchments, plus one district wide catchment, within Hutt City for development contributions. The catchments are mapped in Part 3 of the Policy.

10. The related development contribution charges per Equivalent Household Unit (EHU) for each activity are in Table 1. See the Determining infrastructure impact section below for an explanation of an EHU.

11. For each infrastructure activity and catchment for which development contributions are required, the development contribution payable is calculated by multiplying the number of EHUs generated through the development by the charge for that activity. This is then aggregated for all activities to give the total charge. For example, a three-lot residential development in Eastbourne will pay three times the water, wastewater, and transport charges for that catchment, plus three time the district side wastewater charge. The total development contributions payable would be $[X] (GST inc).

12. These charges may be adjusted for inflation annually in line with the Producers Price Index outputs for Construction, as permitted by sections 106 (2B) and (2C) of the LGA. The latest charges will be published on Council’s website www.huttcity.govt.nz.

Table 1: Development contribution charge per EHU at 1 July 2021 (GST inclusive)^{^[1]}

Development contribution per EHU 2021/2022
	Western Hills	Valley Floor	Stokes Valley	Wainuiomata	Eastbourne	Rural	District Wide
Transport
Water
Wastewater
Stormwater
Total
DC per EHU (including the district wide charge)

Liability for development contributions

13. If subdividing, building, connecting to Council’s services, or otherwise undertaking development in Hutt City, development contributions may need to be paid.

14. In some circumstances, development contributions may not apply or may be reduced. Further information on these circumstances can be found in the sections, when development contributions are levied, credits, and limitations on imposing development contributions.

15. Financial contributions may also be required in some cases. This is discussed later in the Policy.

16. Development of new infrastructure sometimes means that areas not previously liable for a development contribution become so. For example, a bare section in a subdivision may be liable for development contributions whereas previously constructed houses on the same subdivision were not.

17. Council officers will be available to help resolve any uncertainty about development contribution liabilities.

When development contributions are levied

18. Once an application for a resource consent, building consent, certificate of acceptance, or service connection has been made with all the required information, the normal steps for assessing and requiring payment of development contributions are.

Trigger

We assess the development for development contributions

NOTICE

We issue a formal notice of requirement

INVOICE

We issue an invoice requiring payment

pAYMENT

Development contributions are paid

19. These steps are explained in more detail below.

Trigger for requiring Development Contributions

20. Council can require development contributions for a development upon the granting of:

· A resource consent.

· A building consent or certificate of acceptance.

· An authorisation for a service connection for water, wastewater or stormwater services.

21. Council will generally require development contributions at the earliest possible point (i.e. whichever consent, certificate, or authorisation listed above is granted first). For new developments, the resource consent is often the first step in the process and therefore the first opportunity to levy development contributions. Where development contributions were not assessed (or only part assessed) on the first consent, certificate or authorisation for a development this does not prevent the Council assessing contributions on a subsequent consent, certificate or authorisation for the same development. This approach is the same for all charges in all catchments.

22. Development contributions will be assessed under the Policy in force at the time the application for resource consent, building consent, certificate of acceptance or service connection was submitted with all required information.

Assessment

23. On receiving an application for resource consent, building consent, certificate of acceptance, or service connection, Council will check that:

(A) The development (subdivision, building, land use, or work) generates a demand for network infrastructure; and

(B) The effect of that development (together with other developments) is to require new or additional assets or assets of increased capacity in network infrastructure; and

(C) Council has incurred or will incur capital expenditure to provide appropriately for those assets. This includes capital expenditure already incurred by Council in anticipation of development.

24. Council has identified the assets and areas that are likely to meet the requirements of (B) and (C), and these are outlined in Schedules 2 and 3 (Past and future assets funded by development contributions) and Part 3 (Development contribution catchment maps). In general, if a development is within one of the areas covered by the catchment maps it is likely that development contributions will be required.

25. Development contributions may be waived or reduced if:

· A resource consent or building consent does not generate additional demand for any community facilities (such as a minor boundary adjustment); or

· One of the circumstances outlined in the section Limitations on imposing development contributions apply; or

· Credits apply as outlined in the Credits section.

26. If a subsequent resource consent (excluding a change to conditions of an existing resource consent), building consent, certificate of acceptance, or service connection is sought, a new assessment may be undertaken using the Policy in force at that time. Any increase or decrease in the number of EHUs, relative to the original assessment, will be calculated and the contributions adjusted to reflect this.

27. This means Council will require additional development contributions where additional units of demand are created, and development contributions for those additional units of demand have not already been required.

28. Examples of where these would be needed, include:

· Minimal development contributions were levied on a commercial development at subdivision or land use consent stage as the type of development that will happen will only be known at building consent stage.

· Development contributions levied at the subdivision or land use consent stage were for a small home, but the home built is larger or is subsequently extended.

· The nature of use has changed, for example from a low infrastructure demand commercial use to a high infrastructure demand commercial use.

Notice

29. A development contribution notice will normally be issued when a resource consent, building consent, certificate of acceptance, or service connection authorisation is granted. In some cases, the notice may be issued or re-issued later. The notice is an important step in the process as it outlines the activities and the number of EHUs assessed for development contributions, as well as the charges that will apply to the development. It also triggers rights to request a development contributions reconsideration or to lodge an objection (see the section on Review rights below).

30. If multiple consents or authorisations are being issued for a development, a notice of requirement may be issued for each. However, where payments are made in relation to one of the notices, actual credits will be recognised for the remaining notices.

31. Development contributions notices do not constitute an invoice or an obligation to pay for the purposes of the Goods and Services Tax Act 1985. A tax invoice will be issued at the time of supply, being, the earlier of Council issuing an invoice to the applicant or payment of the development contributions.

Invoice

32. An invoice for development contribution charges will be issued to provide an accounting record and to initiate the payment process. The timing of the invoice is different for different types of consents or authorisations (see Table 2). If there is a delay between when a notice is issued and when an invoice is issued, the Council may adjust the charges levied in the invoice to account for inflation.

Table 2: Invoice timing

	Invoice timing
Building consent	At the time of application for a code compliance certificate
Certificate of acceptance	At issue of a certificate of acceptance
Resource consent for subdivision	At the time of application for a certificate under section 224(c) of the Resource Management Act 1991. An invoice will be issued for each stage of a development for which 224 (c) certificates are sought, even where separate stages are part of the same consent
Resource consent (other)	At granting of the resource consent
Service connection	At granting of the service connection for water, wastewater or stormwater services

33. Despite the provisions set out above, if a development contribution required by Council is not invoiced at the specified time as a result of an error or omission on the part of Council, the invoice will be issued when the error or omission is identified. The development contributions remain payable.

Payment

34. Development contributions must be paid by the due dates in Table 3.

Table 3: Payment due date

	Payment due date
Building consent	Prior to issue of the code compliance certificate
Certificate of acceptance	At issue of the certificate of acceptance
Resource consent for subdivision	Prior to release of the certificate under section 224(c) of the Resource Management Act 1991 (the 224(c) certificate) for each stage
Resource consent (other)	20^th of the following month (after the issue of the invoice)
Service connection	At issue if of the connection approval

35. On time payment is important because, until the development contributions have been paid in full, Council may:

· Prevent the commencement of a resource consent.

· Withhold a certificate under Section 224(c) of the RMA.

· Withhold a code compliance certificate under Section 95 of the Building Act 2004.

· Withhold a service connection to the development.

· Withhold a certificate of acceptance under section 99 of the Building Act 2004.

36. Where invoices remain unpaid beyond the payment terms set out in the Policy, Council will start debt collection proceedings, which may involve the use of a credit recovery agent. Council may also register the development contribution under the Land Transfer Act 2017, as a charge on the title of the land in respect of which the development contribution was required.

Determining infrastructure impact

37. In order to have a consistent method of charging for development contributions, the Policy is centred around the concept of an equivalent household unit or “EHU” for infrastructure. In other words, an average household in a standard residential unit and the demands they typically place on community facilities. Table 4 summarises the demand characteristics of an EHU.

Table 4: EHU demand measures

Activity	Unit of measurement	demand per EHU
Water	Litres per day	567 litres per day
Wastewater	Litres per day	510 litres per day
Stormwater	Impervious surface area	200m²
Transport	Trips per day	8 trips per day

Residential development

38. In general, the number of EHUs charged is one per new allotment or residential unit created, although lower assessments can apply in some cases for minor and small residential units.

39. When calculating the number of EHUs for a residential subdivision, Council will adjust the assessment to account for any:

· Credits relating to the site (refer to the Credits section below).

· Allotment which, by agreement, is to be vested in Council for a public purpose.

· Allotment required as a condition of consent to be amalgamated with another allotment.

40. Retirement units and visitor accommodation units will be assessed as 0.5 EHUs for each service.

Minor and small residential units

41. Council will permit lower assessments for minor or small residential units in relation to:

· Building consents or certificate of acceptance.

· Subdivision, land use consents, or connection authorisation where information is provided by the applicant that demonstrates that a minor or small residential unit(s) will be provided, to the satisfaction of Council. Council may enter into agreements with developers or landowners to give effect to a minor or small residential unit assessment and bind the applicant to any conditions that accompany the assessment.

42. Alternatively, for subdivisions, Council will assess each allotment as 1 EHU and may agree to postpone payment by the person undertaking the subdivision until a building consent is issued for an allotment. At that time, Council will adjust the assessment and the payment required accordingly. See the section on Postponement.

43. Such assessments are guided by the parameters outlined in Table 5.

Table 5: Small residential unit (RU) assessment guidance

	MINOR RU	SMALL RU	STANDARD RU
No. of bedrooms*	1	2	3 or more
EHU Discount (all services)	50%	25%	Nil
Proportion of EHU Payable for all charges	0.5	0.75	1

* A definition of bedroom is provided in the glossary

44. Should additional bedrooms be proposed to a minor or small residential unit that has been assessed under this section, Council will require additional development contributions in line with Table 6.

Table 6: Small residential unit (RU) extension assessment guidance (EHUs)

TYPE OF EXTENSION	TOP OF PROPORTION REQUIRED	TOTAL PROPORTION REQUIRED
Extend minor RU to a small RU	0.25	0.75
Extend minor RU to a standard RU	0.5	1
Extend small RU to a standard RU	0.25	1

Non-Residential development

45. Non-residential subdivisions, land uses, or building developments are more complicated as they do not usually conform with typical household demands for each service.

46. In these cases, Council makes an EHU “equivalent” assessment based on the characteristics of the development and demand loadings likely to be placed on the services. To provide consistency, the demand measures in Table 4 have been converted for assessing non-residential developments based on gross floor area (Table 7). Council will use these rates for determining EHUs for non-residential developments unless it seeks or accepts a special assessment.

Table 7: EHU per 100 m² GFA (*except stormwater, which is based on total impervious surface area)

Development TYpe	Water	Wastewater	Storm water*	Transport
Industrial	0.4	0.4	0.5	4
Commercial	0.4	0.4	0.5	3
Retail	0.4	0.4	0.5	6.0
Other non-residential	Special assessment	Special assessment	0.5	Special assessment

47. If no proper assessment of the likely demand for activities is able to be carried out at the subdivision consent stage, a development contribution based on one EHU will be charged for each new allotment created and Council will require an assessment to be carried out at the building consent stage. This later assessment will credit any development contributions paid at the subdivision consent stage.

special assessments

48. Developments sometimes require a special level of service or are of a type or scale which is not readily assessed in terms of EHUs – such as large-scale primary sector processors or service stations. In these cases, Council may decide to make a special assessment of the EHUs applicable to the development. Council may initiate this process or may consider a request by the developer, in writing, to make a special assessment prior to a development contribution notice being issued.

49. In general, Council will evaluate the need for a special assessment for one or more activities where it considers that:

(A) The development is of relatively large scale; or

(B) The development is likely to have less than half or more than twice the demand for an activity listed in Table 7 for that development type; or

(C) A non-residential development does not fit into an industrial, retail, or commercial land use and must be considered under the other’ non-residential category proposed in the Policy; or

(D) A non-residential development may use more than 5 m³ of water per day.

50. The demand measures in Table 4 will be used to help guide special assessments.

51. Where the special assessment is requested by the developer, the onus is on the applicant to prove (on the balance of probabilities) that the actual increased demand created by the development meets the requirement of criteria (B) above.

52. Any application for a special assessment must be accompanied by the fee payable to recover the Council's actual and reasonable costs of determining the application. The fee will be assessed at the time of application. Council may levy additional fees to meet Council's actual costs, should the actual costs be materially higher than the initial assessment.

53. If a special assessment is undertaken, Council may require the developer to provide information on the demand for community facilities generated by the development. Council may also carry out its own assessment for any development and may determine the applicable development contributions based on its estimates.

Credits

54. Credits are a way of acknowledging that the lot, home or business may already be connected to, or lawfully entitled to use, one or more Council services, or a development contribution has been paid previously. Credits can reduce or even eliminate the need for a development contribution. Credits cannot be refunded and can only be used for development on the same site and for the same service for which they were created.

55. A credit is given for the number of EHUs paid previously or assessed for the existing or most recent prior use of the site. This is to recognise situations where the incremental demand increase on infrastructure is not as high as the assessed number of units of demand implies.

56. The number of EHU credits available will be calculated by applying the criteria in the above paragraph except where residential allotments existing as at 1 July 2006 – these are deemed to have a credit of one EHU.

57. Examples where credits will arise are illustrated in table 8.

Table 8: Credit examples


Re-development of six residential allotments into a commercial office block	6 EHUs credits, i.e. one for each of the existing residential allotments
Infill residential subdivision of existing allotment into two allotments.	1 EHU credit, i.e. one for the original allotment. Development contributions payable on 1 EHU
Residential development of existing CBD site with 400 m2 GFA commercial building (200m2 footprint) into eight unit title apartments – no additional impervious area	Roading and traffic: 8 EHUs credits (400 m2 GFA / 50 m2 per EHU)
	Water supply: 1.6 EHU credits (400 m2 GFA / 225 m2 per EHU)
	Wastewater: 1.6 EHU credits (400 m2 GFA / 225 m2 per EHU)
	Stormwater: 1 EHU credit (200m2 impervious surface / 200 m2 per EHU)

Review rights

58. Developers are entitled under the LGA to request a reconsideration or lodge a formal objection If they believe Council has made a mistake in assessing the level of development contributions for their development.

Reconsideration

59. Reconsideration requests are a process that formally requires Council to reconsider its assessment of development contributions for a development. Reconsideration requests can be made where the developer has grounds to believe that:

· The development contribution levied was incorrectly calculated or assessed under the Policy; or

· Council has incorrectly applied the Policy; or

· The information Council used to assess the development against the Policy, or the way that Council has recorded or used that information when requiring a development contribution, was incomplete or contained errors.

60. To seek a reconsideration, the developer must:

· Lodge the reconsideration request within 10 working days of receiving the development contribution notice by emailing it to developmentcontributions@huttcity.govt.nz.

· Use the reconsideration form (found on www.huttcity.govt.nz) and supply any supporting information with the form.

· Pay the reconsideration fee at the time of application, as set out in Council’s Schedule of Fees and Charges.

61. Applications with insufficient information or without payment of fee will be returned to the applicant, with a request for additional information or payment.

62. Once Council has received all required information and the reconsideration fee, the request will be considered by a panel of a minimum of two, and a maximum of three, staff. The panel will comprise staff that were not involved in the original assessment. Before reaching decision, the panel will consider all of the information supplied by the applicant and will consider and apply the requirements of the Policy, along with and any other information that the panel considers is relevant to the reconsideration request. The result of a reconsideration decision may confirm the original assessment or increase or decrease the amount required

63. Council will notify the applicant of its decision within 15 working days from the date on which Council receives all required relevant information relating to the request (including additional information sought be Council).

64. No reconsideration request will be accepted by Council if it is received after the 10 working day period above, or if an objection has already been lodged under section 199C of the LGA. The applicant will receive written notice if the request for reconsideration cannot be made for one of these reasons. Council reserves the right to reconsider an assessment if it believes an error has been made.

Objections

65. Objections are a more formal process that allow developers to seek a review of the Council’s decision. An application for reconsideration does not prevent the applicant from also filing an objection under section 199C of the LGA.

66. A panel of up to three independent commissioners will consider the objection. The decision of the commissioners is binding on the developer and the Council, although either party may seek a judicial review of the decision.

67. Objections may only be made on the grounds that Council has:

· Failed to properly take into account features of the development that, on their own or cumulatively with those of other developments, would substantially reduce the impact of the development on requirements for community facilities in the District or parts of the District; or

· Required a development contribution for community facilities not required by, or related to, the development, whether on its own or cumulatively with other developments; or

· Required a development contribution in breach of section 200 of the LGA; or

· Incorrectly applied the Policy to the development.

68. Schedule 13A of the LGA sets out the objection process. To pursue an objection, the developer must:

· Lodge the request for an objection within 15 working days of receiving notice to pay a development contribution, or within 15 working days of receiving the outcome of any request for a reconsideration; and

· Use the objection form (found on www.huttcity.govt.nz) and supply any supporting information with the form; and

· Pay a deposit.

69. Objectors are liable for all costs incurred in the objection process including staff arranging and administering the process, commissioner’s time, and other costs incurred by Council associated with any hearings such as room hire and associated expenses, as provided by section 150A of LGA. However, objectors are not liable for the fees and allowances costs associated with any Council witnesses.

other OPERATIONAL matters

Refunds

70. Sections 209 of the LGA states the circumstances where development contributions must be refunded, or land returned. In summary, Council will refund development contributions paid if:

· The resource consent:

- lapses under section 125 of the RMA; or

- is surrendered under section 138 of the RMA; or

· The building consent lapses under section 52 of the Building Act 2004; or

· The development or building in respect of which the resource consent or building consent was granted does not proceed; or

· Council does not provide the reserve or network infrastructure for which the development contributions were required.

71. Council will also provide refunds where overpayment has been made (for whatever reason).

72. The Council may retain any portion of a development contribution referred to above of a value equivalent to the costs incurred by the Council in assessing, requiring, and refunding the charges.

Limitations on Imposing Development Contributions

73. Council is unable to require a development contribution in certain circumstances, as outlined in section 200 of the LGA, if, and to the extent that:

· It has, under section 108(2)(a) of the RMA, imposed a condition on a resource consent in relation to the same development for the same purpose; or

· The developer will fund or otherwise provide for the same network infrastructure; or

· A third party has funded or provided, or undertaken to fund or provide, the same network infrastructure.

· The Council has already required a development contribution for the same purpose in respect of the same building work, whether on the granting of a building consent or a certificate of acceptance.

74. In addition, Council will not require a development contribution in any of the following circumstances:

· Non-residential building work for which a building consent is required and is either less than $20,000 exclusive of GST in value, or less than 10m² of gross floor area, unless the building consent is for a change of use.

· In relation to any dwelling, replacement development, repair or renovation work generates no additional demand for reserve or network infrastructure.

· The conversion of an existing unit developments into unit titles. This does not apply to any building consents required as part of any changes to the existing units, which will still be assessed to determine if development contributions are applicable.

· A building consent is for a bridge, dam (confined to the dam structure and any tail race) or other public utility.

· The application for a resource or building consent, authorisation, or certificate of acceptance is made by the Crown.

· The development is being undertaken by Council. This exemption does not apply to developments undertaken by or on behalf of Council organisations, Council-controlled organisations, or Council-controlled trading organisations, as defined in section 6 of the LGA.

· In rural areas for stormwater development contributions, where no Council stormwater systems are provided.

· For water and/or wastewater development contributions if a development does not connect to Council’s water supply and/or wastewater reticulation systems.

postponement

75. Postponement of development contribution payment will only be permitted at Council’s discretion and only:

· For development contributions over $50,000; and

· Where a bond or guarantee equal in value to the payment owed is provided.

76. The request for postponement must be made at the time a resource consent, building consent or service connection is granted. Bond or guarantees:

· Will only be accepted from a registered trading bank.

· Shall be for a maximum period of 24 months, beyond the normal payment date set out in the Policy, subject to later extension as agreed by Council.

· Will have an interest component added, at an interest rate of 2 percent per annum above the Reserve Bank 90-day bank bill rate on the day the bond document is prepared. The bonded sum will include interest, calculated using the maximum term set out in the bond document. If Council agrees to an extension of the term of the guarantee beyond 24 months, the applicable interest rate will be reassessed from the date of the Council's decision and the guaranteed sum will be amended accordingly.

· Shall be based on the GST inclusive amount of the contribution.

77. At the end of the term of the guarantee, the development contribution (together with interest) is payable immediately to Council.

78. If the discretion to allow a bond is exercised, all costs for preparation of the bond documents will be met by the applicant.

Development Agreements

79. Council may enter into specific arrangements with a developer for the provision and funding of particular infrastructure under a development agreement, including the development contributions payable, as provided for under sections 207A-207F of the LGA. For activities covered by a development agreement, the agreement overrides the development contributions normally assessed as payable under the Policy.

REMISSIONS

80. Council may remit a development contribution at its complete discretion. Council will only consider exercising its discretion in exceptional circumstances. Applications made under this part will be considered on their own merits and any previous decisions of Council will not be regarded as binding precedent.

81. Any request for remission must be made in writing and set out the reasons for the request. The request must be made:

· within 15 working days after Council has issued a notice for the development contribution payable; and

· before the development contribution payment is made to Council.

82. Council will not allow retrospective remissions of development contributions.

83. Council delegates to the CEO, in conjunction with the Chair of the Finance and Audit Committee, with authority to delegate to officers, the authority to make a decision on a request for remission.

84. When considering a request for remission, Council will take into account:

· The purpose of Development Contributions, Council’s financial modelling, and Council’s funding and financial policies.

· The extent to which the value and nature of the works proposed by the applicant reduces the need for works proposed by Council in its capital works programme.

· Any other matter(s) that Council considers relevant.

financial contributions

Relationship between financial contributions and development contributions

85. The financial contributions and development contributions in this Policy are separate charges and are used to fund separate categories of expenditure by Council. This ensures there is no ‘’double dipping” and is consistent with the intention of section 200 of the LGA.

86. Development contributions can be required under the LGA and are used to help fund planned and budgeted capital expenditure related to growth for the activities and assets listed in the development contributions schedule of assets in this Policy (Schedules 2 and 3).

87. Financial contributions can be required under the RMA in line with the provisions in the District Plan. Financial contributions are required for reserves and where individual developments give rise to capital expenditure that is not planned and recovered via development contributions. In these cases, Council may impose a financial contribution as a condition of resource consent, specifically:

· Financial contributions for reserves.

· Financial contributions to which District Plan Rules 12.2.1 through to 12.2.1.6, and 12.2.2.1 apply.

88. A brief summary of these is provided below. Further information on financial contributions can be found in the District Plan (www.huttcity.govt.nz).

Summary of financial contributions under the district plan

Reserve Contributions – Subdivision of land

89. There is a long history of requiring subdividers of land to provide land or money for the purpose of providing public open space as reserves. Reserves are generally required as part of the subdivision process as they provide open space and recreation facilities and opportunities necessary to cater for additional demand generated and also to protect and enhance amenity values. As communities continue to grow in size and population there is a need to provide recreation and open space to meet their needs and requirements.

90. As part of its evaluation under section 32 of the RMA, a number of options were assessed by Council and after considerable consultation with the public, developers and other special interest groups. It was considered that reserve contributions should be set at a maximum of 7.5% of the value of each additional allotment. It was recognised that the maximum reserve contribution is not appropriate in all cases and this can be adjusted taking into account criteria specified in Rule 12.2.1.7(b) of the District Plan.

Reserve Contributions – Development of land

91. The District Plan also recognises that the development of land for business/commercial purposes can increase the number of people employed at a particular location and consequently there may be an increase in demand for open space and recreation areas. After considerable consultation with the public, property owners, developers and other special interest groups, and after evaluating various options, it was considered by Council that where commercial or industrial development will result in an increase or intensification of use of land, a reserve contribution in the form of money equivalent to 0.5% of the value of the development in excess of $200,000 is appropriate. It was also recognised that the maximum reserve contribution is not appropriate in every case and the maximum could be adjusted based on criteria specified in Rule 12.2.2.2(b) of the District Plan.

Financial Contributions – Services

92. In the District Plan the developer of a subdivision or development is responsible for funding all work within its boundaries relating to services directly required for the subdivision or development. This approach has been in practice for a very long period of time. Two main methods for imposing financial contributions have been adopted in the District Plan, these being the recoupment impact fee (or sometimes called the recognised equity method) and the capital improvements programme fee.

93. In summary the District Plan requires financial contributions as follows:

· In subdivision or development of land the rules specify that the developer is responsible for all work within its boundaries relating to services directly required.

· The rules specify that where, as a result of subdivision or development of land, services in adjoining land which were previously adequate become inadequate, the subdivider or developer should pay for the full and actual costs of upgrading services.

· Where subdivision or development takes place and the services in the adjoining land are already inadequate, then the rules specify that the subdivider or developer should pay a proportion of the costs of upgrading services.

· In cases where Council has upgraded services in advance of land being subdivided then the subdivider or developer should pay the full and actual costs of upgrading, taking into account the time value of money, when the land is subsequently subdivided or developed

Financial Contributions – Traffic impact fee for retail activities and places of assembly in all residential and rural activity areas

94. The District Plan recognises that large scale retail activities exceeding 3,000 square metres in floor area and all places of assembly in residential and rural activity areas may have adverse effects on the surrounding roading network and on pedestrian circulation. In such circumstances the District Plan requires that the developer contribute to the upgrading and modification of the surrounding roads, intersections and footpaths.

95. However, it noted that changes introduced in the Resource Legislation Amendment Act 2017 mean that councils would not be able to charge financial contributions under the RMA from 5 years following its Royal Assent. Council will take this issue into account at the next 3 yearly review cycle for this Policy.

Definitions

96. In the Policy, unless the context otherwise requires, the following applies:

Accommodation unit has the meaning given in section 197 of the LGA.

Activity means the provision of facilities and amenities within the meaning or network infrastructure for which a development contribution charge exists under the Policy.

Actual increased demand means the demand created by the most intensive non-residential use(s) likely to become established in the development within 10 years from the date of application.

Allotment (or lot) has the meaning given to allotment in section 218(2) of the Resource Management Act 1991.

Asset management plan means Council plan for the management of assets within an activity that applies technical and financial management techniques to ensure that specified levels of service are provided in the most cost-effective manner over the life-cycle of the asset.

Bedroom means any habitable space within a residential unit capable of being used for sleeping purposes and can be partitioned or closed for privacy including spaces such as a “games”, “family”, “recreation”, “study”, “office”, “sewing”, “den”, or “works room” but excludes:

· any kitchen or pantry;

· bathroom or toilet;

· laundry or clothes-drying room;

· walk-in wardrobe;

· corridor, hallway, or lobby;

· garage; and

· any other room smaller than 6m2.

Where a residential unit has any living or dining rooms that can be partitioned or closed for privacy, all such rooms except one shall be considered a bedroom.

Capacity life means the number of years that the infrastructure will provide capacity for and associated EHUs.

Catchment means the areas within which development contributions charges are determined and charged.

Commercial activity means any activity associated with (but not limited to): communication services, financial services, insurance, services to finance and investment, real estate, business services, central government administration, public order and safety services, tertiary education provision, local government administration services and civil defence, and commercial offices.

Community facilities means reserves, network infrastructure, or community infrastructure as defined by the LGA, for which development contributions may be required.

Community infrastructure means:

· Land, or development assets on land, owned or controlled by the Council for the purpose of providing public amenities; and

· Includes land that the Council authority will acquire for that purpose.

Council means Hutt City Council.

Development means any subdivision, building, land use, or work that generates a demand for reserves, network infrastructure, or community infrastructure (but does not include the pipes or lines of a network utility operator).

District means the Lower Hutt.

Equivalent household unit (EHU) means demand for Council services, equivalent to that produced by a nominal household in a standard residential unit.

Gross floor area (GFA) means the sum of the total area of all floors of a building or buildings (including any void area in each of those floors, such as service shafts, liftwells or stairwells) measured:

· where there are exterior walls, from the exterior faces of those exterior walls;

· where there are walls separating two buildings, from the centre lines of the walls separating the two buildings;

· where a wall or walls are lacking (for example, a mezzanine floor) and the edge of the floor is discernible, from the edge of the floor.

See National Planning Standards 2019. https://www.mfe.govt.nz/sites/default/files/media/RMA/national-planning-standards-november-2019.pdf

Industrial activity means an activity that manufactures, fabricates, processes, packages, distributes, repairs, stores, or disposes of materials (including raw, processed, or partly processed materials) or goods. It includes any ancillary activity to the industrial activity.

LGA means the Local Government Act 2002.

Network infrastructure means the provision of transportation (roading), water, wastewater and stormwater infrastructure.

Network utility operator has the meaning given to it by section 166 of the Resource Management Act 1991.

Non-residential development means any development that falls outside the definition of residential development in this Policy.

Policy means this Development and Financial Contributions Policy.

Reserves means land for public open space and improvements to that land needed for it to function as an area of usable green open space for recreation and sporting activities and the physical welfare and enjoyment of the public, and for the protection of the natural environment and beauty of the countryside (including landscaping, sports and play equipment, walkways and cycleways, carparks, and toilets). In the Policy, reserve does not include land that forms or is to form part of any road or is used or is to be used for stormwater management purposes.

Residential development means the development of land and buildings for any domestic/living purposes for use by people living on the land or in the buildings.

Residential unit means building(s) or part of a building that is used for a residential activity exclusively by one household, and must include sleeping, cooking, bathing and toilet facilities. See National Planning Standards 2019. https://www.mfe.govt.nz/sites/default/files/media/RMA/national-planning-standards-november-2019.pdf

Retail activity means any activity trading in goods, equipment or services that is not an industrial activity or commercial activity.

Retirement unit means any dwelling unit in a retirement village, but does not include aged care rooms in a hospital or similar facility.

Retirement village has the meaning given in section 6 of the Retirement Villages Act 2003.

RMA means the Resource Management Act 1991.

Service connection means a physical connection to an activity provided by, or on behalf of, Council (such as water, wastewater or stormwater services).

Part 2: Policy Details

Requirement to have a policy

97. Council is required to have a policy on development contributions and financial contributions as a component of its funding and financial policies in its Long-term Plan (LTP) under section 102(2)(d) of the LGA. The Policy meets this requirement.

Funding summary

98. Council plans to incur [$X] (before interest costs) on infrastructure partially or wholly needed to meet the increased demand for community facilities resulting from growth. This includes works undertaken in anticipation of growth, and future planned works. Of this cost, [X] percent will be funded from development contributions. Including interest costs, the total amount to be funded is [$X].

99. Table 9 provides a summary of the total costs of growth-related capital expenditure and the funding sought by development contributions for all activities and catchments.

Table 9. Total cost of capital expenditure for growth and funding sources

Activity	Total cAPEX	GROWTH CAPEX	DC funded capex	Total CAPEX Proportion funded by development contributions	CAPex Proportion funded from other sources	development contribution INTEREST	Total amount to be funded by development contributions
calcs	A	B	C	C/A*100	((A-C)/A)*100	D	C+D
Total water supply
Catchment W1
Catchment W2
Total Wastewater
Catchment WW1
Catchment WW2
etc
Grand Total

GROWTH INFRASTRUCTURE

100. Council’s growth forecasts (see the section projecting growth) are used to derive a programme of infrastructure works. Future elements of this programme (and associated costs) are identified in the Council’s Long-Term Plan (LTP), and in Schedule 2 of this Policy. In some cases, Council has undertaken works to support forecast growth and this is listed schedule 3 of this Policy. All of part of the costs of these projects can be funded from Development contributions.

101. When determining whether a project or programme is growth related and therefore should be included in this Policy, Council asks whether growth:

· Is an important driver for the works. This is usually the case for projects that have been specifically designed for growth capacity upgrade purposes.

· Influences the scope or capacity of the proposed work. This is often the case for a large number of smaller improvements, upgrade and renewal works that also increase infrastructure capacity and takes account of the impact on infrastructure of continuing growth within the city.

102. The proportion of the costs of these projects or programmes that are attributable to growth is determined in line with the approach outline in the cost allocation section of this Policy.

funding policy SUMMARY

Funding growth expenditure

103. Population and business growth create the need for new subdivisions and development, and these place increasing demands on the assets and services provided by Council. Accordingly, significant investment in new or upgraded assets and services are required to meet the demands of growth – as noted in the previous section.

104. The Council has decided to fund these costs from:

· Development contributions under the LGA for planned expenditure on water, wastewater, stormwater and transport.

· Financial contributions under the Resource Management Act 1991 for reserve and where individual developments give rise to capital expenditure that is not planned and recovered via development contributions.

105. In forming this view, Council has considered the matters set out in section 101(3) of the LGA within its Revenue and Financing Policy, and within the Policy for each activity.

106. The Revenue and Financing Policy is Council’s primary and over-arching statement on its approach to funding its activities. It outlines how all activities will be funded, and the rationale for Council’s preferred funding approach.

107. In addition, Council is required under section 106(2)(c) of the LGA to explain within the Policy why it has decided to use development contributions and financial contributions to fund capital expenditure relating to the cost of growth for each activity. This explanation is below. There are no material differences for this assessment for different activities funded by development contributions, so this assessment applies equally to each activity.

108. Council uses financial contributions for funding the cost of growth-related reserves infrastructure. Reserve financial contributions achieve many of the same benefits and outcomes as development contributions but are simpler to administer.

Community outcomes (section 101(3)(a)(i))

109. Council has considered whether development contributions and financial contributions are an appropriate source of funding considering each activity, the outcomes sought, and their links to growth infrastructure. Council has developed nine outcomes to help achieve our vision of making our city a great place to live, work and play.

· A safe community.

· A strong and diverse economy.

· An accessible and connected city.

· Healthy people.

· A healthy natural environment.

· Actively engaged in community activities.

· Strong and inclusive communities.

· A healthy and attractive built environment.

· A well-governed city.

110. These outcomes describe a city which is safe, well connected and accessible, looks after the environment and provides the foundation needed for a thriving economy. To enable this, infrastructure most be provided and maintained to a high level of service, and investment is made to ensure growth is catered for. This growth is much better able to be accommodated if additional funding through development contribution is possible, rather than levelling all cost on existing ratepayers. As a dedicated growth funding source, development contributions also offer funding through which we can deliver on our vision and outcomes for new communities.

Other funding decision factors (sections 101(3)(a)(ii) – (v))

111. Council has considered the funding of growth-related community facilities against the following matters:

· The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals, and the extent to which the actions or inaction of particular groups or individuals contribute to the need to undertake the activity.

· The period in or over which those benefits are expected to occur.

· The costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities.

112. A summary of this assessment is below.

Table 10: Other funding decision factors

Who Benefits / whose act creates the need

A significant portion of Council’s work programme over the next 30 years is driven by development or has been scoped to ensure it provides for new developments. The extent to which growth is serviced by, and benefits from an asset or programme as well as how much it serves and benefits existing ratepayers is determined for each asset or programme in line with the requirements of section 197(c) of the LGA.

Council believes that the growth costs identified through this process should be recovered from development, as this is what creates the need for the expenditure and /or benefit principally from new assets and additional network capacity. Where and to the extent that works benefit existing residents and businesses, those costs are recovered through rates.

The Catchment determination section below outlines how Council determined the catchments for development contributions in the Policy.

Using financial contributions for reserves has a similar impact. Financial contributions for other services are required where individual developments give rise to capital expenditure that is not planned and budgeted, and therefore that expenditure is not included in Council’s Development Contributions Policy. In these cases, Council can usually identify the individual or group involved and may impose a financial contribution as a condition of resource consent.

Period of benefit

The assets constructed for development will last for a very long time and provide benefits and capacity for developments now and developments in the future. In many cases, the “capacity life” of such assets spans decades.

Development contributions allow development related capital expenditure to be apportioned over the capacity life of assets. Developments that benefit from the assets will contribute to its cost, regardless of whether they happen now or in the future. This helps ensures that growth now and later contributes fair share to those assets.

Financial contributions for reserves have a similar affect by distributing the cost of providing for growth over time so that current and future developments that benefit contribute.

Funding sources & rationale including rationale for separate funding

The cost of supporting development in Lower Hutt is significant. Development contributions and financial contributions send clear signals to the development community about the cost of growth and the capital costs of providing infrastructure to support that growth.

Council also considers that allocating the full cost of growth to development is fairer to existing ratepayers, and helps ensure economic efficiency. By not imposing the burden of growth costs on existing ratepayers, rates income is also able to be used to advance Council’s other activities. These activities contribute in a wide range of ways to improving current and future community outcomes.

Consequently, council consider that the benefits to the community are significantly greater than the cost of policy making, calculations, collection, accounting and distribution of funding for development and financial contributions.

Overall impact of liability on the community (section 101(3)(b))

113. Council has also considered the impact of the overall allocation of liability on the community. In this case, the liability for revenue falls directly with the development community. Council considers that the level of development and financial contributions are affordable and are not out of step with those required by other councils. Consequently, Council does not consider it likely that there will be an undue or unreasonable impact on the social, economic, and cultural wellbeing of this section of the community. Nor are the charges expected to divert private sector investment from Lower Hutt on any significant scale.

114. Moreover, shifting development costs onto ratepayers is likely to be perceived as unfair and would significantly impact the rates revenue required from existing residents - who do not cause the need, or benefit directly from the growth infrastructure, needed to service new developments.

115. Overall, Council considers it fair and reasonable, and that the social, economic and cultural interests of the District’s communities are best advanced through using development contributions and financial contributions to fund the costs of growth-related capital expenditure for community facilities.

Catchment determination

116. When setting development contributions, Council must consider how it sets it catchments for grouping charges by geographic areas. The LGA gives Council wide scope to determine these catchments, provided that:

· The grouping is done in a manner that balances practical and administrative efficiencies with considerations of fairness and equity; and

· Grouping by geographic area avoids grouping across an entire district wherever practical.

117. Council has determined that there will seven catchments. These catchments are:

· The Western Hills.

· The Valley Floor.

· Stokes Valley.

· Wainuiomata.

· Eastbourne.

· Rural.

· Districtwide.

118. The catchments and their boundaries are based on communities of interest (aggregating district suburbs), the geography of the district, the characteristics of the infrastructure and service it provides, the common benefits received across the geographical area supplied by the infrastructure, and judgments involving a balance between administrative efficiency and, fairness and equity.

119. The boundaries of these catchments, excluding the Rural catchment, are defined by the aggregated suburb boundaries and the urban zoning in the district plan. The catchments are shown on the plan in Appendix 1 (at end of this Policy). Development occurring within these catchments will be required to pay contributions applicable in that catchment.

120. The rationale for the limited number of catchments is to:

· Keep the Policy as simple as practicable.

· Provide flexibility to deliver growth infrastructure where it is most needed.

· Reconcile the contributions as closely as practicable to the areas where developments have generated the need for capital expenditure on new assets, or assets of increased capacity.

121. The infrastructure included within the catchments to which a development contribution will apply are stormwater, water, wastewater, and transport. However, there are two exceptions - the districtwide and rural catchments.

122. The Districtwide catchment includes only the recovery of incurred costs for excess capacity built into the Wastewater Treatment Plant when it was constructed. The Rural catchment includes only roading capital expenditure upgrade projects. A capital expenditure project would generally be assigned to one catchment. However, these projects may be allocated across more than one catchment where they provide benefits across those catchments. The allocation of capital expenditure across the catchments would be assessed when the asset schedules in the Policy are reviewed and updated.

Significant assumptions of the policy

Methodology

123. In developing a methodology for the development contributions in the Policy, Council has taken an approach to ensure that the cumulative effect of development is considered across each catchment.

Planning horizons

124. A 30-year timeframe has been used as a basis for forecasting growth and growth-related assets and programmes. This is set out in Council’s asset management plans.

Projecting growth

125. Hutt City has experienced high population and steady economic growth in recent years, and this growth is forecast to continue. Statistics New Zealand (SNZ) figures indicate steady population growth in the District, with the number of residents increasing by [X%] per annum since 2013.

126. Using forecast adapted from on SNZ’s median growth forecasts and a commercial growth study as a base, the key assumptions on future growth are:

· Years 2021-2031:

- Population growth in the District of around 7%, or around 7,000 people.

- Residential unit growth in the District of around 8%, or around 3,200 residential units.

- Minimal net development of GFA for commercial space – although intensity of use is expected to increase.

· Years 2031-2051:

- Population growth in the District of around 16,700 people from 2031.

- Residential unit growth in the District of around 7,000 residential units from 2031.

- Minimal net development of GFA for commercial space – although intensity of use is expected to increase.

127. A five-yearly breakdown of the population and household forecast is in table 11.

Table 11: Five-yearly breakdown of population and household forecasts

	2013 Census	2021 (est)	2026	2031	2036	2041	2046	2051
Western Hills
Population	10423	10586	10966	11296	11499	11668	11857	12042
Households	3851	3992	4164	4338	4451	4542	4626	4711
Wainuiomata
Population	17787	19198	19842	21077	22761	24403	26080	27759
Households	6331	6801	7067	7544	8147	8743	9343	9943
eastbourne
Population	4803	4809	4765	4734	4738	4758	4784	4810
Households	2017	2041	2067	2082	2097	2112	2127	2142
STOKES VALLEY
Population	9805	10245	10861	11189	11284	11356	11473	11589
Households	3573	3729	3961	4085	4144	4198	4258	4318
VALLEY FLOOR
Population	58378	61509	63308	64977	66870	69083	71412	73742
Households	22775	23759	24665	25490	26403	27422	28437	29453
HUtt City TOTAL
Population	101196	106347	109742	113273	117152	121268	125606	129942
Households	38547	40322	41924	43539	45242	47017	48792	50567

Best available knowledge

128. Development contributions are based on projects and programmes previously undertaken, future works proposed in Council’s Long Term Plan and/or Asset Management Plans, and projected estimates of future growth. These are all based on the best available knowledge at the time of preparation. As better information becomes available the Policy will be updated, generally through the Annual Plan process.

capacity lives

129. The capacity lives for projects and programme within the Policy are approximated to the closet decade that they provide for growth, being 10 years, 20 years or 30 years. Projects that provide do not provide capacity for development within the period 2021-2031 are not included in this Policy.

Cost of INFRASTRUCTURE

130. Future capital expenditure costs used in this Policy are based on the forecast costs in the LTP and/or Hutt City Council and Wellington Water Asset Management Plans. There are Past project costs (schedule 3) are derived from Annual Reports and will be updated at least every three years.

131. Interest costs are added to the above to account of the costs of borrowing (see Funding Model section below) and third part funding is deducted (such as Waka Kotahi subsidies).

132. As better information becomes available the Policy will be updated.

Key risks/effects

133. There are two key risks associated with administering development contributions, and the resulting effects are:

· That the growth predictions do not eventuate, resulting in a change to the assumed rate of development. In that event, Council will continue to monitor the rate of growth and will update assumptions in the growth and funding predictions, as required.

· That the time lag between expenditure incurred by Council and development 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 increase in debt servicing costs. To guard against that occurrence, Council will continue to monitor the rate of growth and will update assumptions in the growth and funding models, as required.

Service assumptions

134. That methods of service delivery, and levels of service, will remain substantially unchanged and in accordance with Council’s Long Term Plan, asset management plans, and [Technical Specifications/Land Development Manual/Engineering Standards].

Funding model

135. A funding model has been developed to calculate development contribution charges under the Policy. It accounts for the activities for which contributions are sought, the assets and programmes related to growth, forecast growth and associated revenue. The funding model embodies several important assumptions, including that:

· All capital expenditure estimates are inflation adjusted and GST exclusive.

· The levels of service (LOS) /backlog, renewal and maintenance portions of each asset or programme will not be funded by development contributions. See the Cost allocation section below.

· The growth costs associated with an asset are spread over the capacity life of the asset and any debt incurred in relation to that asset will be fully repaid by the end of that capacity life.

· Interest expenses incurred on debt accrued will be recovered via development contributions and shared over the capacity life of each asset.

Cost allocation

136. Council must consider how to allocate the cost of each asset or programme between three principal drivers – growth, level of service /backlog, and renewal. Council’s general approach to cost allocation is summarised as:

· Where a project provides for and benefits only growth, 100% of a project’s cost is attributed to growth. To qualify for this, there would have to be no renewal element (see below) or material level of service benefit or capacity provided for existing residents and businesses.

· Where a project involves renewal of existing capacity, the value of a stand-alone renewal component is generally determined separately for significant individual identified works. For smaller projects or ongoing programmes, a proportion of the works is attributed to growth in line with future beneficiary split (see below).

· If a project provides for growth and LOS, after deducting any share of costs attributable to renewal, Council will split the cost between growth and LOS based on a future beneficiary split approach. Under this approach, the cost attributed to:

- LOS will be based on proportion that the existing community (in EHUs) will make up of the future community (in EHUs).

- Growth will be based on proportion that the growth (in EHUs) will make up of the future community (in EHUs).

137. For particularly large and expensive projects, Council may undertake a specific cost apportionment assessment that differs from the general approach outlined above. For example, using identified capacity share as the basis for cost allocation.

Calculating the development contribution charges

138. This section outlines how the development contribution charges were calculated in accordance with section 203 and schedule 13 of the LGA.

Process

139. The steps needed to determine growth, growth projects, cost allocations, and to calculate the development contributions charges are summarised in Table 12.

Table 12: Summary of development contribution charge calculation methodology

Step	Description / comment	Example ($ GST Exc)
1. Forecast growth	Council estimates potential land supply and likely take up of that land. The estimates help provide household and business growth forecasts for up to 30 years. See the Projecting Growth section above for further information.	[provide worked example]
2. Identify projects required to facilitate growth	Develop the works programme needed to facilitate growth. In some cases, Council may have already undertaken the work. The programme in the Policy is for 30 years.	[provide worked example]
3. Determine the cost allocation for projects	The cost of each asset or programme is apportioned between renewal, growth, and LOS/backlog in accordance with the approach outlined in the cost allocation section of the Policy. Schedules 2 and 3 of the Policy outlines the amount required to fund growth from development contributions for each of these assets or programmes.	[provide worked example]
4.Determine growth costs to be funded by development contributions	Council determines whether to recover all of the growth costs identified in step 3 from development contributions, or whether some of the growth costs will be funded from other sources.	[provide worked example]
5. Divide DC funded growth costs by capacity lives	The growth costs from step 4 are divided by the estimated capacity life (defined in EHUs) to provide an EHU charge for each future and past asset and programme.	[provide worked example]
6.Sum all per asset charges	For each catchment and activity, add up the per EHU asset or programme charges to provide a “raw” total development contribution charge before interest cost are added. For each activity and catchment, development contributions fund the programme on an aggregated basis.	[provide worked example]
7. Adjust for interest costs and charge inflation adjustments	The raw cost requires adjustments in the funding model to ensure total revenue received over equals total costs after accounting for interest costs. These costs are shared over the capacity life of each asset. These adjustments impact the final charges.	[provide worked example]

Summary of calculations

140. Schedule 1 summarises the calculation of the development contribution charge for each activity/catchment (step 7). Schedules 2 and 3 provide information on each asset or programme including the information in steps 2 - 6.

Schedule 1 – Development contribution charge calculations

This schedule summarises the calculation of the development contribution charge for each activity for each catchment. This include the components of the charge related to capital expenditure on past assets, capital expenditure on future assets, and interest costs. All figures exclude GST.

Water

reference	Development Contribution funded $	Recoverable Growth / Capacity Life (UNITS)	Development Contribution Charge per UNIT (GST exc)
CATCHMENT W1
Future asset or programmes (refer schedule 2)	C₁(future asset/programme costs funded by DCs)	Refer schedule 2	DC_F
Past assets or programmes (refer schedule 3)	C₂(past asset/programme costs funded by DCs)	Refer schedule 3	DC_P
loan interest costs	IC (interest costs)	#_IC(EHUs over which interest costs are being recovered)	DC_IC = IC/#_IC
Total	TGC (total growth costs funded by DCs) = C₁+ C₂+ IC		DC_W1 = DC₁+ DC₂+ DC_IC
CATCHMENT W2 (example)
Future asset or programmes (refer schedule 2)	$4,720,000	Refer schedule 2	$8,400
Past assets or programmes (refer schedule 3)	$12,000,000	Refer schedule 3	$12,000
Loan interest costs	$800,000	800	$1,000
Total	$17,520,000		$21,400

WasteWater

reference	Development Contribution funded $	Recoverable Growth / Capacity Life (UNITS)	Development Contribution Charge per UNIT (GST exc)
CATCHMENT WW1
Future asset or programmes (refer schedule 2)		Refer schedule 2
Past assets or programmes (refer schedule 3)		Refer schedule 3
Loan interest costs
Total
CATCHMENT WW2
Future asset or programmes (refer schedule 2)		Refer schedule 2
Past assets or programmes (refer schedule 3)		Refer schedule 3
Loan interest costs
Total

..etc

Schedule 2 – Future assets

Schedule 2 provides the forecast future capital expenditure on asset or programmes attributable to new growth in accordance with section 201A of the LGA. All figures exclude GST.

Water

Asset or programme name

Description

Total cost $

% Funded by DCs

% Funded
from
other
sources

DC funded Cost $

Year1
2021/
2022
$

Year2
2022/
2023
$

Year3
2023/
2024
$

Year4
2024/
2025
$

Year5
2025/
2026
$

Year6
2026/
2027
$

Year7
2027/
2028
$

Year8
2028/
2029
$

Year9
2029/
2030
$

Year10
2029/
2030
$

Years 11-30
2031/2032-
2051/2052

Recoverable Growth / Capacity Life (EHUs)

Development Contribution Charge

CATCHMENT W1

W1001

[Asset or programme name]

[Asset or programme description]

$[X₁]

[Y₂]%

[100-Y]%

$Z₁ = [X₁ x Y₁]

Y1 DC funded portion of costs

Y2 DC funded portion of costs

Y3 etc

Y4 etc

Y5 etc

Y6 etc

Y7 etc

Y8 etc

Y9 etc

Y10 etc

Ys 11-30 DC funded portion of costs

#₁

DC₁ = $Z₁/#₁

W1002

[Asset or programme name]

[Asset or programme description]

$[X₂]

[Y₂]%

[100-Y]%

$Z₂ = [X₂ x Y₂]

Y1 DC funded portion of costs

Y2 DC funded portion of costs

Y3 etc

Y4 etc

Y5 etc

Y6 etc

Y7 etc

Y8 etc

Y9 etc

Y10 etc

Ys 11-30 DC funded portion of costs

#₂

DC₂ = $Z₂/#₂

W1003

[Asset or programme name]

[Asset or programme description]

$[X₃]

[Y₃]%

[100-Y]%

$Z₃ = [X₃ x Y₃]

Y1 DC funded portion of costs

Y2 DC funded portion of costs

Y3 etc

Y4 etc

Y5 etc

Y6 etc

Y7 etc

Y8 etc

Y9 etc

Y10 etc

Ys 11-30 DC funded portion of costs

#₃

DC₃ = $Z₃/#₃

Total future growth expenditure

$[X₁+X₂+X₃]

$[Z₁+z₂+Z₃]

Future asset development contribution charge (DC_F)

$DC_F = [DC₁+DC₂+DC₃]

CATCHMENT W2 (example)

W1004

[Dowder reservoir]

[Provide 2500m³ reservoir to link to new main and provide storage for Dowder growth area]

$3,400,000

80%

20%

$2,720,000

$1,360,000

800

$3,400

W1005

[Dowder booster pump station]

[Booster pump station to provide water at require pressure to residentially zoned land above 65 metres of elevation]

$2,000,000

100%

$2,000,000

400

$5,000

Total future growth expenditure

$5,400,000

87%

13%

$4,720,000

Future asset development contribution charge (DC_F)

$8,400

Wastewater

Asset or programme name

Description

Total cost $

% Funded by DCs

% Funded
from
other
sources

DC funded Cost $

Year1
2021/
2022
$

Year2
2022/
2023
$

Year3
2023/
2024
$

Year4
2024/
2025
$

Year5
2025/
2026
$

Year6
2026/
2027
$

Year7
2027/
2028
$

Year8
2028/
2029
$

Year9
2029/
2030
$

Year10
2029/
2030
$

Years 11-30
2031/2032-
2051/2052

Recoverable Growth / Capacity Life (EHUs)

Development Contribution Charge

CATCHMENT WW1

Total past growth expenditure

Past asset development contribution charge (DC_F)

CATCHMENT W2 (example)

Total future growth expenditure

Future asset development contribution charge (DC_F)

Schedule 3 – Past assets

Schedule 3 provides the capital expenditure incurred on asset and programmes attributable to new growth constructed in anticipation of growth, in accordance with section 201A of the LGA. All figures exclude GST.

Water

ID	Asset or programme name	Description	Total cost $	% Funded by DCs	% Funded from other sources	DC funded Cost $	Years	Recoverable Growth / Capacity Life (EHUs)	Development Contribution Charge
CATCHMENT W1
W001	[Asset or programme name]	[Asset or programme description]	$[X₁]	[Y₂]%	[100-Y]%	$Z₁ = [X₁ x Y₁]	Year(s) expenditure incurred	#₁	DC₁ = $Z₁/#₁
W002	[Asset or programme name]	[Asset or programme description]	$[X₂]	[Y₂]%	[100-Y]%	$Z₂ = [X₂ x Y₂]	Year(s) expenditure incurred	#₂	DC₂ = $Z₂/#₂
W003	[Asset or programme name]	[Asset or programme description]	$[X₃]	[Y₃]%	[100-Y]%	$Z₃ = [X₃ x Y₃]	Year(s) expenditure incurred	#₃	DC₃ = $Z₃/#₃
		Total past growth expenditure	$[X₁+X₂+X₃]			$[Z₁+Z₂+Z₃]
		Past asset development contribution charge (DC_P)							$DC_P = [DC₁+DC₂+DC₃]
CATCHMENT W2 (example)
W004	[Dowder treatment upgrade]	[Provide treatment to NZDWS for Dowder area]	$4,000,000	80%	20%	$3,200,000	2018/2019	800	$4,000
W005	[Bore, pump station, and trunk main for Dowder area]	[Bore water source, pump station, and trunk main for Dowder area]	$8,000,000	80%	20%	$6,400,000	2016/17 to 2018/2019	800	$8,000
		Total past growth expenditure	$12,000,000	80%	20%	$4,720,868
		Past asset development contribution charge (DC_P)							$12,000

wasteWater

ID	Asset or programme name	Description	Total cost $	% Funded by DCs	% Funded from other sources	DC funded Cost $	Years	Recoverable Growth / Capacity Life (EHUs)	Development Contribution Charge
CATCHMENT WW1



		Total past growth expenditure
		Past asset development contribution charge (DC_P)
CATCHMENT W2 (example)


		Total past growth expenditure
		Past asset development contribution charge (DC_P)

[1] GST has been applied at the rate of GST as at [x date] (15%). Should the rate of GST change, the charges will be adjusted accordingly. The GST exclusive charge per activity can be found in Schedule 1.

Mayor C Barry (Chair) Deputy Mayor T Lewis

Cr D Bassett	Cr J Briggs
Cr K Brown	Cr B Dyer
Cr S Edwards	Cr D Hislop
Cr C Milne	Cr A Mitchell
Cr S Rasheed	Cr N Shaw
Cr L Sutton