Development Contribution Costs Decrease in Tasman

Tasman District Council has reviewed its Development Contribution Policy. As a result of the review a number of changes have been made for inclusion in the Long Term Plan adopted today (27 June).

The amount charged will depend on what services a property receives, but a development that is required to pay a contribution for all services, water, wastewater, stormwater and transportation, will drop from $21,051 to $20,756 (including GST) per lot from 1 July 2012.

The changes which come into force from 1 July are driven by the policy premise that ensures growth, and the cost of infrastructure to meet that growth, is funded by those who either create or profit from the new demand.

While we are required by current legislation to review the Development Contribution policy every three years it also gives the Council the opportunity to review its growth and asset management plans and to provide a means of sharing the impact growth places on our budgets, said Mayor Richard Kempthorne.

“Growth is an important driver of our budget and it is only fair that those who benefit contribute proportionally therefore lessening the impact on the general ratepayer. “

“It has been well publicised throughout the recent discussion about Local Government costs, the costs associated with roading and water infrastructure have always been shown to outstrip inflation particularly in the last 10 years. As one of the fastest growing districts in the country, these costs are always going to have an impact.”

“It is always, however, about balance and as a Council we are aware of the impact on the current growth can have on development positively and negatively. To this end we spent a great deal of time ensuring we met that balance where those profit are charged transparently and fairly the general ratepayer who indirectly benefits does not find the cost unbearable.”