Development contributions

Developers are required to pay a development contribution to the council when developing or requiring new services for a property. The Waikato district is experiencing rapid growth in some areas and this growth can only be sustained if developers contribute to the cost of new or expanded infrastructure that supports that growth.

What are development contributions?

The purpose of development contributions is to recover the costs of growth- related capital expenditures from participants in the property development process, rather than from general rates or any other indirect funding source.

Development contributions are set through the prescribed Local Government Act 2002 process, for developments for the provision of new or expanded council services.

How are they calculated?

The contributions are calculated on the anticipated demand that the development will impose on infrastructure, and the costs of providing that infrastructure. The amounts will vary from place to place as it depends on the catchment and the level of growth and infrastructure that is required to accommodate the development.

The Waikato district has been divided into a number of catchment areas. Each catchment area has a different range of projects which will require a development contribution to be paid and different rates are applied. For example, a one lot subdivision in the Tamahere area will attract, among other contributions, a specific water contribution, while in Pokeno the infrastructure requirements and therefore the contribution, will be different.

Development contributions can be charged for roads and transport, stormwater, wastewater and water, depending on the catchment area. Development contributions for reserves, community facilities and roading are charged on a district wide basis and apply in conjunction with the development contributions for specific catchment areas.

Subdivision Consents

For a residential subdivision consent, reserves, community facilities, roading and roads & transport are calculated at the rate of one household equivalent unit (HEU) per additional lot being created. Water, wastewater, and stormwater are calculated at a rate of one HEU for each lot being connected to the service. The total payable varies and is dependent upon location and what catchments apply.

For a non-residential subdivision consent, roading and roads & transport are calculated at the rate of one hundred metres squared of gross floor area (100m² GFA) per additional lot being created. Water and wastewater are calculated at a rate of one 100m² GFA for each lot being connected to the service. Stormwater is calculated at a rate of one 100m² of impervious surface area (ISA) of the site. The total payable varies and is dependent upon location and what catchments apply.

Building Consents

For a residential building consent a credit of one HEU applies for the development contributions that were paid at the time of subdivision. Additional development contributions may be required where new or extended catchments have been implemented since the subdivision was undertaken for example there is now a wastewater catchment and development contribution in Ngaruawahia that may be charged on building consents. Additional development contributions will also be required where a building consent is for more than one HEU on a title. See the FAQ for more information on additional dwellings or independent living areas.

For a non-residential building consent a credit of one 100m² applies for the development contributions that were paid at the time of subdivision. Additional development contributions will be required on the building consent for the additional GFA and ISA proposed.

For information on what development contributions may apply to your development email DevelopmentContributions@waidc.govt.nz supplying the property address and information about what you are intending to build.

When do I pay?

Applications for resource consent, building consent or service connection trigger the requirement to pay development contributions. The due date for payment will be:

For subdivision resource consents: prior to issue of the section 224c certificate.
For other resource consents: prior to the commencement of consent.
For building consents: prior to Code Compliance Certificate.
For service connections: prior to connection.
For certificates of acceptance: prior to issue.

Development Contributions are increased by the Producers Price Index (PPI) - Outputs for Construction provided by Statistics New Zealand annually on the first of July.

If you want to avoid annual increases, you can always make payment earlier than the due date.

What does council do with the contributions?

Contributions are used for providing new or expanded infrastructure. The contributions are not used for maintenance and are only used for the purpose for which they were taken. For example, a roading contribution will only be used for constructing new roads and intersection improvements.

Confused about development contributions? Our FAQ page may answer some of your questions.